Saturday, July 20, 2013

Saturday roundup (07-20-13)

Quote of the Day: "What the Fed is missing is that we're not in a normal business cycle, we're in a DEPRESSION. You know, anyone under the age of 90 has never lived through a depression, at least one that they can remember, and a lot of people are curious about it, they say, 'Gee, I wonder what a depression feels like.' Well, this is what it feels like. You're in a depression. ... You can have growth in a depression. You can have a rising stock market in a depression. ... The definition of a depression is ... that the growth never gets back to trend. ... In 2009, we didn't take the pain. What we did is paper it over. We're still papering it over. We're going to have low growth as far as the eye can see. That's a depression." -- James G. Rickards, US government consultant, senior managing director, Tangent Capital, author of the book Currency Wars (The Korelin  Economics Report)  (AUDIO INTERVIEW

G20 puts growth before austerity, vows to tread carefully (Reuters)

Merkel Rules Out Second Writedown in Greece as Too Risky (Bloomberg)

Portugal ruling party vows to meet bailout goals after pact talks fail (Reuters)

June jobless rates rise in 28 states [= more than half of all US states] (USAToday)

Detroit Bankruptcy Judge Rhodes Is Ponzi-Law Scholar (Bloomberg)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

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