My copy of Vox Day’s new book–Return of the Great Depression–has arrived. Hope to read it this week.

Seems like (a) gold is at an all-time high, (b) stocks are at a high for the year, while (c) the dollar is in the crapper and (d) oil prices are shooting above $80 because of the dollar’s demise.

Something’s gotta give.

Trouble is, the dollar is in the dumps because of the enormous amount of debt, and the Fed’s electronic creation of trillions of e-dollars to bail out the banksters at our expense. That’s gonna bite us sooner or later. Oil and gold might continue to spike if that continues.

This would not bode well for stocks, or for anyone with adjustable-rate debt. Even those with fixed-rate debt might be in trouble if their jobs get impacted by the impending shock. This is going to be one hell of a ride, and any one of those cheerleaders–i.e. economists–who are applauding “recovery”, are going to find their credibility in even more disrepute.

The [hyperinflationary] hundred trillion-dollar question? How long will Americans drink their Kool-Aid?

3 thoughts on “Finally!

  1. I have put aside my novel and spent a chunk of today absorbing about half of it. It is a “dense” read; and I’m no stranger to economics. I will have to ponder this a good bit.

  2. @noseintheair
    That first chapter is pretty heavy. I’d say he is providing the best rundown of the elements leading to last year’s crash. It’s not the easiest read, but he builds a solid case for how the Fed’s answer to every crisis–pump out more money–produces increasingly tepid results. A real-time illustration of the Law of Diminishing Returns.

    We have reached the point at which the Fed’s standard solution will either be (a) incapable of stopping the impending deflation, or (b) will cause the mother of all hyperinflationary disasters. Right now, it’s anybody’s guess.

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