Wednesday, September 28, 2011

Are we in a depression?

The last post I did was on an article written by James Altucher who feels the economy is not going into a depression. He says that we should not operate in fear. Today I am going to feature an article written by Bill Bonner. As an investor an author, he takes the Austrian perspective on the economy. He thinks we are in a depression. He calls it the "Great Correction", meaning that the fiscal and monetary policies followed by the Federal Reserve and the U.S. government is so far removed from sound economic principles that it will take a long, long time to get healthy. Part of the reason that it will take so long is because the debt is so bad, and the governmental policies that made the mess are still being done. An example is the continual printing (or these days of striking a key board) of money and credit. To the tune of Trillions of dollars!!! The other point he always eludes to is the government debt. There is no accountability from the president and congress to keep spending under control. These actions make things go from bad to worse. This is consistent with my view. As mentioned before, I feel the Austrian perspective best sums up how a healthy economy works and what happens when we veer from these principles.

Without further ado, here is one of his recent articles. I think you will find his insights fascinating. 

Feel free to comment.