The world is currently experiencing the modern day equivalent of the Great Depression, according to a prominent economist who has added his voice to scores of others now forecasting ongoing economic doom on a scale not seen since the 1930s.
"Equities are for losers and bond markets for winners. Equities are simply for people who like losing money,"
"A double-dip is inevitable and imminent, as Keynesian stimulus measures have never worked anywhere. We are in the equivalent of a Great Depression following 3 years of credit crisis,"
Zero growth, mass unemployment, and devastating monetary tightening spells depression on a 1932 level.
With real measures of unemployment having been at around 20% and rising for some time, other analysts have pointed out that the numbers are in the same ballpark as the Great Depression.
The number of Americans relying on food stamps is at a record level of over 40.8 million, that is 1 out of every 8, with the figure projected to rise to 43.3 million next year. At the height of the Great Depression, the rate was just 1 out of 35 Americans.
Furthermore, the M3 money supply in the United States is contracting at an accelerating rate that now matches the average decline seen from 1929 to 1933, despite near zero interest rates and the all the stimulus activity.
July’s dismal jobs report and forecasts of even weaker job growth ahead, along with signs of food inflation, also signals an era of stagflation is upon us, a phenomenon not seen during even the Great Depression.