Why we are in a depression and not a recession.

It is a depression. What makes it a depression and not a recession is simple.
A recession is the popping of a bubble caused by financially manipulating the cost of money to a lower level than the market would put it by a central bank. The market can recover from that in about a year.
A depression is when the government steps in and starts doing politically correct things on a massive scale to stop a recession. Each of those non economic actions in the economic field have bad consequences. So the government keeps doing things. It will keep doing that until people wake up and realize that it is the problem and must be stopped.
So until we return to economic solutions to economic problems we will be in a deep depression. It takes longer than a year to wake people up. How much longer we don’t know yet because the Internet speeds things up but if feel sure that it will take longer that the 3 years required to officially call it a depression.
Our problem is not just an economic one. It is one of understanding and special interest.

Report This Post

Leave a Reply

Your email address will not be published. Required fields are marked *