Does this sound familiar
The destabilization of the European economy …
Huge external debt held worldwide, by Government Companies and Individuals.
The lack of banking regulation was potentially dangerous.
Ultra-low interest rates did cause credit growth to explode, the Fed’s cheap debt flooded into the Wall Street call money market
Commodity prices falling, deflationary trends
A fall in nominal interest rates and a rise in deflation adjusted interest rates.
A rise in the value of the USD
The Fed’s mismanagement of the economic situation greatly contributed to the problem
The new President promised change when he came into office, he continued intervention, only on a bigger scale.
This was all prior to the Stock Market crash in 1929 that triggered the Great Depression.
Creative destruction on a global scale.
When one looks at current history nothing has changed, Bernanke in his lack of wisdom of understanding Irving Fischer’s account of the causes of the Great Depression , was as Steve Keen described is an “arse about tit” reading of Fisher. http://www.debtdeflation.com/blogs/2009/01/11/bernanke-an-expert-on-the-great-depression/
If Bernanke extracted his neoclassical head, out of his arse, in 2008 then technically we would not have been in this position.
Needless to say the dominoes are stacked around the world and they have started to fall. Austrian Banks started to fail in 1929 and today the same is happening.
It is now just a matter of time until these dominoes spread through Europe, to the UK, then emerging economies Australia and then the cycle will be completed when it hits the US.
Creative destruction on a global scale to destroy real wealth and assets. This time around there will be no saving the too big to fail as the Governments around the world will go bankrupt too.
A really fascinating scenario.
We are watching history unfold and there is nothing we can do about it. Just enjoy this experience.