“Its Never Different This Time…”

14 Sep

Bernanke is supposedly a “student” of the Great Depression…

From bubbles to deleveragings and how the inter-relationships of various cycles bring about consistent trends and corrections, the clip below and full readings are perhaps useful as we tread Wile E. Coyote-like off the edge of traditional monetary policy and encounter apparently different environments that in fact have occurred in perhaps alternate ways again and again over time. Great weekend viewing/reading on the three ways out of the current crisis that the Fed clearly believes we are in and the inevitability of his findings that “in all deleveragings, in the end they print money.”

But not a good student

In other news…

US Credit Rating Cut by Egan-Jones … Again

In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.’s real gross domestic product, but reduces the value of the dollar.

In turn, this increases the cost of commodities, which will pressure the profitability of businesses and increase the costs of consumers thereby reducing consumer purchasing power, the firm said.

 

Zero Hedge, CNBC

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