Several days ago Ron Paul argued in the Financial Times that we are now facing a 15 year depression.
“The US government just won’t allow the correction the economy needs.” [Paul] cites the mini-depression of 1921, which lasted just a year largely because insolvent companies were allowed to fail. “No one remembers that one. They’ll remember this one, because it will last 15 years.”
…He believes that markets will fall much further and inflation rise much higher before his fellow politicians recognise that the system has failed. “We are likely to see an inflation depression,” Mr Paul says. “In the 1970s, we had stagflation, but not depression. Inflation depression is what you see in Zimbabwe.”
Today at LewRockwell.com, Bill Bonner echoes the idea, noting that the active response of the government has also encouraged “a very bad idea: that politics, rather than a free market, should decide who gets what.” The hailing of this depression as a long-term affair is especially timely given the recent springing up of what have been dubbed “Bushburbs,” the modern equivalent of the Hooverville.
Read the rest of Bonner’s article here.Published in