{"id":8642,"date":"2015-05-30T15:31:01","date_gmt":"2015-05-30T20:31:01","guid":{"rendered":"http:\/\/olduvai.ca\/?p=8642"},"modified":"2015-05-30T15:31:01","modified_gmt":"2015-05-30T20:31:01","slug":"what-we-learned-over-dinner-from-a-swiss-central-banker","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=8642","title":{"rendered":"What We Learned over Dinner from a Swiss Central Banker"},"content":{"rendered":"

What We Learned over Dinner from a Swiss Central Banker<\/a><\/h3>\n

Dear Diary,<\/p>\n

Today\u2026 what we learned over dinner from a surprisingly smart central banker.<\/p>\n

But first, to the markets\u2026<\/p>\n

The Dow shot up 121 Dow points yesterday, recovering most of\u00a0Tuesday\u2019s<\/span><\/span>\u00a0slide.<\/p>\n

In a series of business meetings\u00a0Tuesday<\/span><\/span>\u00a0and\u00a0Wednesday<\/span><\/span>, we explained why nobody but us is rooting for a depression.<\/p>\n

Yes, there\u2019s no point in hiding it. We would like to see a depression. Short, swift, and decisive \u2013 a quick and sharp end to the biggest credit expansion in all of history.<\/p>\n

As secretary of the Treasury Andrew Mellon said after the 1929 stock market crash:<\/p>\n

Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. It will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people.<\/em><\/p><\/blockquote>\n

\n

Credit Cannot Increase Forever<\/h2>\n

\u201cIt\u2019s unbelievable,\u201d said colleague Merryn Somerset Webb. Merryn is the editor ofMoneyWeek<\/em>\u00a0magazine in London.<\/p>\n

\u201cLondon property prices just keep going up and up. It\u2019s so expensive our writers can\u2019t afford to live here anymore. I\u2019m thinking of moving the business to Edinburgh.\u201d<\/p>\n

You can\u2019t build a solid economy on the jelly of unaffordable housing, unpayable debts, and unsustainable asset prices. But that\u2019s what we\u2019ve got.<\/p>\n

The only way to get down to something more reliable\u2026 more real\u2026 and healthier\u2026 is to wash away the financial glop and goo that has accumulated during the last 30 years.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n<\/div>\n

<\/div>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

What We Learned over Dinner from a Swiss Central Banker Dear Diary, Today\u2026 what we learned over dinner from a surprisingly smart central banker. But first, to the markets\u2026 The Dow shot up 121 Dow points yesterday, recovering most of\u00a0Tuesday\u2019s\u00a0slide. In a series of business meetings\u00a0Tuesday\u00a0and\u00a0Wednesday, we explained why nobody but us is rooting for […]<\/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":[5868,175,3203,5869,195,2310,383,1154,431,2228,1264,769,5867],"class_list":["post-8642","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banker","tag-credit","tag-credit-bubble","tag-credit-market","tag-debt","tag-depression","tag-great-depression","tag-interest-rate-policy","tag-interest-rates","tag-market","tag-recession","tag-sustainability","tag-swiss-bank"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8642","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=8642"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8642\/revisions"}],"predecessor-version":[{"id":8643,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8642\/revisions\/8643"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}