I think the world is "on the brink of another 1930's economic catastrophe!" I kinda wish he'd elaborate... A run on the dollar seems like a big deal to me, especially as it is what is backing the American trading empire at this point, and America itself is poorly situated to make the necessary adjustments, not just with respect to infrastructure and other physical factors, but especially politically, in my opinion. If the dollar becomes worthless, Americans would presumably have some trouble meeting basic needs as our economy has become fairly dependent on foreign manufacturing thanks to our relatively open trade laws and a relatively long history of running massive trade deficits. I'm not sure that the government, a la the populace, is really very open to making the big changes that will be coming down the pipeline. That is, after all, what has led to the current situation to begin with.
Although I do not believe for one moment that America is on the brink of another 1930s economic catastrophe I do believe that Obama's ideologically motivated economic impulses will have serious consequences if they are not checked, which does not appear likely at this stage.
My prediction is that the US faces a massive surge in inflation and a run on the dollar if the fed insists on flooding the banks with monopoly money and underwriting Obama's economic illiteracy with colossal checks funded with credit expansion.
Saturday, February 7, 2009
Gerard Jackson Doesn't Think Its a Depression
I was very surprised to find out that Gerard Jackson doesn't think what America faces is really that big of a deal: