Why This Economic Crisis is Different From the 1930’s Depression

From: Rense

World Affairs Brief
By Joel Skousen
World Affairs Brief
5-16-9

WHY THIS ECONOMIC CRISIS IS DIFFERENT FROM THE 1930’S DEPRESSION

I have pointed out before several differences of today’s recession and that of the Great Depression, including the fact that fiat money creation has been going on so strongly since the 1990s that recent times a speculative economy grew so large that it literally dwarfed the real economy. Almost all the banks and investment firms involved in the buying of sub-prime mortgages and derivatives were part of this giant speculative economy that was not directly investing in real business. Why? They knew the real rate of inflation was over 10% and weren’t satisfied with the slow growth of real business investments. The high rates of return on speculation and derivatives gave them a place to grow their money much faster. Had the public understood and demanded that these speculators NOT be bailed out, this speculative economy could have collapsed without actually destroying the real economy. I estimate there was only a 20% crossover of funds. Michael Pollaro wrote an excellent article on the technical and economic difference between then and now.

“1. Quite simply, today’s monetary and political framework is built for inflation, as much inflation as the government, the Federal Reserve and their banking partners want. And inflation, and a whole lot of it, is exactly what we are about to get.

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