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Tag Archives: depression

Does debt lead to (psychological) depression?

I read something somewhere which went something like this;

“Those who don’t understand interest pay it. Those who do earn it.”

This is an oversimplification but the spirit is right on the money (so to speak.) Vast swathes of the suburbs are awash in debt. It contributes greatly to the quiet (so quiet that for many it is unspoken) desperation of the American middle class. It’s pretty sad actually. Particularly when the banks lending via credit cards are getting their money at near 0% interest from the Fed.

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Economic “ghosts of the 1930s”

Sweden cuts interest rates to below zero. The rest of Scandinavia looks about. Deflation looms. Ukraine fights. Greece revolts. France and Belgium are coming to terms with terrorist attacks. Obama asks for permission to widen the war in the Middle East. Russian billionaires spill into Switzerland forcing a de-peg from the euro. Russia herself writhes economic in crisis. China continues to slow. International shipping slows too.

Ghosts? We don’t believe in ghosts. But history and lessons learned or not learned is another issue.

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Life in the “Income Depression”

Newsflash! Things are not good economically.

Most people make significantly less in inflation adjusted terms than they did prior to the 2008 Crash. And it should be noted that the economy prior to the Crash felt pretty hollow too. People forget this now. But nearly everyone was living off of the housing bubble in the Bush years. That’s why it hurt so bad when housing ate it.

Remember the sea of realtors? At one point – around 2006 – it was basically impossible to go to a barbecue without meeting a realtor or a mortgage person. Idiot sons across the country were making money hand over fist, buying Suburbans, and getting in on rental properties. Where did all those people go? Actually don’t tell me. That the depression has wiped out this crowd is one the few positive outcomes of the last few years in my estimation.

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Japan has fallen victim to the Keynesian scam (And so have we)

Japan had “a lost decade.” Then it had another. We are past the halfway mark of the American “lost decade.”

Keynesianism has failed utterly and completely. It’s not that there wasn’t enough stimulus. It’s that the concept of “stimulus” is bunk. It’s real “voodoo economics.” It is a cult. A dream. And as is increasingly obvious even to the Keynesians, a nightmare.

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