Reading the Next Recession

Here is a journey in photos and facts to compare the present Great Recession with the past Great Depression to gain perspective on where we might be headed.

Just as we had two great world wars, we might have two great depressions, the last of which we started out calling “The Great Recession” because, at the time, we didn’t know where it would end up or how long it would continue. Remember that World War I did not start off being called WWI. It was originally called “The Great War.”

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Gold – Preparing For The Next Move

By Alasdair Macleod – Re-Blogged From Gold Money

The global economic outlook is deteriorating. Government borrowing in the deficit countries will therefore escalate. US Treasury TIC data confirms foreigners have already begun to liquidate dollar assets, adding to the US Government’s future funding difficulties. The next wave of monetary inflation, required to fund budget deficits and keep banks solvent, will not prevent financial assets suffering a severe bear market, because the scale of monetary dilution will be so large that the purchasing power of the dollar and other currencies will be undermined. Failing fiat currencies suggest the dollar-based financial order is coming to an end. But with few exceptions, investors own nothing but fiat-currency dependent investments. The only portfolio protection from these potential dangers is to embrace sound money – gold.

The global economy is at a cross-road, with international trade stalling and undermining domestic economies. Some central banks, notably the European Central Bank, the Bank of Japan and the Bank of England were still reflating their economies by supressing interest rates, and the ECB had only stopped quantitative easing in December. The Fed and the Peoples’ Bank of China had been tightening in 2018. The PBOC quickly went into stimulation mode in November, and the Fed has put monetary tightening and interest rates on hold, pending further developments.

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Depression May Speed Brain Aging

By Associated Press – Re-Blogged From Newsmax Health

Memory and thinking skills naturally slow with age but now scientists are peeking inside living brains to tell if depression might worsen that decline — and finding some worrisome clues.

Depression has long been linked to certain cognitive problems, and depression late in life even may be a risk factor for the development of Alzheimer’s. Yet how depression might harm cognition isn’t clear.

One possibility: Brain cells communicate by firing messages across connections called synapses. Generally, good cognition is linked to more and stronger synapses. With cognitive impairment, those junctions gradually shrink and die off. But until recently, scientists could count synapses only in brain tissue collected after death.

The Approaching Storm

By Gary Christenson -Re-Blogged From Gold Eagle

Peter Schiff explained “What Happens Next.” This article takes his “likely sequence of events” and expands the discussion.

His sequence:

  1. Bear Market
  2. Recession
  3. Deficits explode
  4. Return of ZIRP and QE
  5. Dollar tanks
  6. Gold [and silver] soars
  7. CPI spikes
  8. Long-term rates rise
  9. Federal Reserve is forced to hike rates during a recession
  10. A financial crisis without stimulus or bailouts.

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Depression Is Skyrocketing in America

By Bill Hoffmann – Re-Blogged From Newsmax Health

If you’ve been feeling down and out more than usual, cheer up, you are not alone.

A new report compiled by insurance giant Blue Cross Blue Shield (BCBS) says major depression diagnoses surged in the United States from 2013 through 2016, especially among adolescents and millennials.

And the study, which was based on medical claims filed to Blue Cross Blue Shield by 41 million customers, also links major depression to health issues such as other chronic conditions and substance abuse.

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Could The Stock Market Crash?

By David Chapman – Re-Blogged From http://www.Silver-Phoenix500.com

I don’t believe we will see another financial crisis in our lifetime.”

  • Janet Yellen, Fed Chair, June 27, 2017

Oh, Janet. We hope you are right. One should never say never—that has a nasty habit of coming back to bite you.

Texas and Houston are currently going through their crash. No, not a stock market crash but a hurricane and flooding crash. Hurricane Harvey has been called a “once in 500 years’ event.” Except in the past twelve years, we have also had Hurricane Katrina and Sandy. They were called “once in 100 years events.” The 400-year difference seems moot. It is becoming a little flippant to call them “once in a lifetime” events when three “lifetime” events have occurred in twelve short years. Yet, for all of them the experts did not see the devastation that was coming.

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The Forgotten Depression of 1920–1921

By Brian Maher – Re-Blogged From The Daily Reckoning

The year is 1921…

America is less than three years removed from triumph on the Western Front. It’s the dawn of the Roaring Twenties… and the Jazz Age.

Warren Gamaliel Harding is America’s czar.

And the nation is sunk in depression…

U.S. industrial production plunged 31% between 1920 and 1921. Stock prices plummeted 46%… and corporate profits a crushing 92%.

Unemployment ran as high as 19%. Storefronts everywhere gaped empty.

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