{"id":49884,"date":"2019-11-29T16:37:32","date_gmt":"2019-11-29T21:37:32","guid":{"rendered":"https:\/\/olduvai.ca\/?p=49884"},"modified":"2019-11-29T16:37:38","modified_gmt":"2019-11-29T21:37:38","slug":"mauldin-we-are-on-the-brink-of-the-second-great-depression","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=49884","title":{"rendered":"Mauldin: We Are On The Brink Of The Second \u201cGreat Depression.\u201d"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/realinvestmentadvice.com\/we-are-on-the-brink-of-the-second-great-depression\/\">Mauldin: We Are On The Brink Of The Second \u201cGreat Depression.\u201d<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You really need to&nbsp;<a href=\"http:\/\/www.mauldineconomics.com\/go\/v3c9r8\/OAC\">watch this video<\/a>&nbsp;of a recent conversation between Ray Dalio and Paul Tudor Jones. Their part is about the first 40 minutes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this video, Ray highlights some problematic similarities&nbsp;<a href=\"http:\/\/www.mauldineconomics.com\/go\/v3c9rc\/OAC\">between our times and the 1930s<\/a>. Both feature:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><em><a href=\"http:\/\/www.mauldineconomics.com\/go\/v3c9rg\/OAC\">a large wealth gap<\/a><\/em><\/li><li><em><a href=\"http:\/\/www.mauldineconomics.com\/go\/v3c9rk\/OAC\">the absence of effective monetary policy<\/a><\/em><\/li><li><em>a change in the world order, in this case&nbsp;<a href=\"http:\/\/www.mauldineconomics.com\/go\/v3c9rn\/OAC\">the rise of China<\/a>&nbsp;and the potential for trade wars\/technology wars\/capital wars.<\/em><\/li><\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">He threw in a few quick comments as their time was running out, alluding to the potential for the end of the world reserve system and the collapse of fiat monetary regimes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Maybe it was in his rush to finish as their time is drawing to a close, but it certainly sounded a more challenging tone than I have seen in his writings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Currency Wars<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It brought to mind an&nbsp;<a href=\"http:\/\/www.mauldineconomics.com\/go\/v3c9rr\/OAC\">essay<\/a>&nbsp;I read last week from my favorite central banker, former BIS Chief Economist William White.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He was warning about potential currency wars, aiming particularly at the US Treasury\u2019s seeming desire for a weaker dollar. Ditto for other governments around the world. He believes this is a prescription for disaster.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>One possibility is that it might lead to a disorderly end to the current dollar based regime, which is already under strain for a variety of both economic and geopolitical reasons. To destroy an old, admittedly suboptimal, regime without having prepared a replacement could prove very costly to trade and economic growth.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Perhaps even worse, conducting a currency war implies directing monetary policy to something other than domestic price stability. There ceases to be a domestic anchor to constrain the expansion of central bank balance sheets.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mauldin: We Are On The Brink Of The Second \u201cGreat Depression.\u201d You really need to&nbsp;watch this video&nbsp;of a recent conversation between Ray Dalio and Paul Tudor Jones. Their part is about the first 40 minutes. In this video, Ray highlights some problematic similarities&nbsp;between our times and the 1930s. Both feature: a large wealth gap the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1099,1098,374,839],"class_list":["post-49884","post","type-post","status-publish","format-standard","hentry","category-economics","tag-currency-devaluation","tag-currency-wars","tag-gold","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=49884"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49884\/revisions"}],"predecessor-version":[{"id":49885,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49884\/revisions\/49885"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}