It’s 1938 all over again: Illusion of Recovery – Part I: Print and pray has officially failed by Eric Janszen

One of the most compelling and complete explanations of our economy over the last few years. Followed by a strong argument that both explains and continue to support the possibility for further parabolic moves in gold as it transforms into the world’s global reserve currency.

Well worth the time.  I particularly liked the call for further investment in domestic energy and communications infrastructure.  Far more important than bridges to nowhere.  Someone PLEASE send this to the current administration before Obama makes his speech next week.


Illusion of Recovery - Eric Janszen

“The incipient recession that the stock, bond, and gold markets smell is not a so-called “double dip” recession. It is a mid-gap recession, a recession that occurs in the midst of an output gap, a far more serious economic event than a recession that produces an output gap. The US has not experienced a recession inside of an output gap since 1938, except for one produced on purpose by the Volcker Fed in 1983 to squeeze the last breath of life out of an inflation spiral that was showing signs of resurgence in 1982. ”

Click here for the full story:

Thanks to Paul Kedrosky.


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