The Coming Depression?

LEVERAGING by the banking system, sometimes coupled with the creation of irredeemable paper ticket money, has been responsible for every recession/depression over the past two hundred years. One of the clearest explanations of the process is that of Fed Chairman Greenspan in his essay “Gold and Economic Freedom.” He wrote:

The excess credit which the Fed pumped into the economy spilled over into the stock market-triggering a fantastic speculative boom. Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom. But it was too late: by 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a consequent demoralizing of business confidence. As a result, the American economy collapsed.

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Lawrence M. Parks

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LEVERAGING by the banking system, sometimes coupled with the creation of irredeemable paper ticket money, has been responsible for every recession/depression over the past two hundred years. One of the clearest explanations of the process is that of Fed Chairman Greenspan in his essay “Gold and Economic Freedom.” He wrote:

The excess credit which the Fed pumped into the economy spilled over into the stock market-triggering a fantastic speculative boom. Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom. But it was too late: by 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a consequent demoralizing of business confidence. As a result, the American economy collapsed.