US money supply plunges at 1930s pace as Obama eyes fresh stimulus

Dec 2007
477
14
Jax beach FL
#2
This is all over the web. The fear of either a Chinese or EU implosion means that money cannot be pumped into the economy and the political calculus is that passage of another stimulus prior to the election will hand the GOP a landslide in Nov. Deflation will hurt holders of gold, lenders and debtors but most voters at about 50+ and female like falling prices more than they hate their kids moving back in. The Obama presidency is dead and the GOP is starting to go braindead from their own talking points but that won't hurt them any more than it did FDR and the New Dealers.
 

anonymous

Former Staff
Jun 2008
10,578
2,873
Passing Through
#3
We have to hit bottom before any of this can be straightened out. I know no one wants that to happen but it is the only way that I can see to do it. Then we have to reign in the banks, speculators,and government.
 

michaelr

Former Staff
Dec 2006
89,668
6,642
FEMA Region 10
#4
[quote name='anonnymous' date='27 May 2010 - 08:23 AM' timestamp='1274973791' post='155692']

We have to hit bottom before any of this can be straightened out. I know no one wants that to happen but it is the only way that I can see to do it. Then we have to reign in the banks, speculators,and government.

[/quote]

Do you know why the Great Depression hit when it did?
 

anonymous

Former Staff
Jun 2008
10,578
2,873
Passing Through
#5
[quote name='michaelr' date='27 May 2010 - 12:21 PM' timestamp='1274977313' post='155712']

Do you know why the Great Depression hit when it did?

[/quote]



Not sure but I believe it was due to the FRB cutting the supply of money and derivatives trading.
 
Dec 2007
477
14
Jax beach FL
#6
[quote name='anonnymous' date='27 May 2010 - 02:06 PM' timestamp='1274983565' post='155769']

Not sure but I believe it was due to the FRB cutting the supply of money and derivatives trading.

[/quote]

Rotating sovereign defaults were also a factor as was the real estate crash of 1926-7. With Clinton/Bush as Coolidge and Obama as Hoover we're getting an encore performance in a minor key.