Loading ...“As none other than Milton Friedman declared in the late 1990’s, the 1930’s were consistent with nothing but tight money conditions in the real economy no matter how much reflation occurred. The economy was growing, but it wasn’t growth. The level of employment in 1939 was but equal to the peak in 1929, despite a decade’s worth of population expansion along the way. Factory employment in September 1939 was 7.6% below September 1929; factory payrolls were 13.8% less in comparison of the same two months.
Again, this should all sound frighteningly familiar. Employment around the world has never recovered despite this “recovery.” Central banks are mystified as to why inflation won’t respond to their repeated and theoretically impressive prodding. And most damning of all, interest rates in the 2010’s have behaved as if it was the 1930’s again, not in terms of the size of the collapse but an almost perfect replica of the global economy’s inability to restore growth. The yield curve and money rate shriveling, all around the world in stunningly remarkable proportions, are not additional “stimulus”, they are signaling a depression.”- Jeffrey Snider