And now it’s March 10, 2016 it’s nearly 2 years since the writing of what follows, and New Zealand’s surprised by lowering its central bank rate, and Canada’s central banker’s kept Canada’s central interest rate at .05%; and here in North America investors keep bond yields low with plenty of money sloshing around to revive Canadian and U.S.stock markets and renew talk of the raging stock market bull, and maintain record high house prices here in Canada.
Today is May 13 and I just reread this May 8 blogspot post about the 2008 post. Yesterday May 12, 2014 the Dow Jones stock average reached another all time height after Ms. Yellan had reminded investors last week that interest rates would not be returning to normal soon because the U.S./world economy was still regaining its strength. I think its strange that no one’s complaining all that vigorously about stocks reaching record heights during the recession almost as bad as the 1930′s great depression. Even those mean old Republicans seem more concerned about the real motives behind the attackers on the U.S. embassy in Benghazi than the fiscal or monetary policies that are contributing to the U.S. national debt.
May 8, 2014
I just revisited the bit below that I must have written some time in 2008 amidst the failure of a large U.S. bank, the precipitous decline of North American stock markets, and world oil prices peaking at $147 per barrel, and dire warnings about the coming world-wide depressionary recession almost as bad as the 1930’s depression according to Mr. Bernanke student of that depression, yet still I am not certain that I’ve witnessed evidence of that sudden cataclysmic world-wide recession resembling the great depression. The only possible resemblance to that deflationary time was the 2008 market collapse, but which unlike the crash of 1929 led to a rather sharp rebound to new highs. And still as in the 2008 warnings of deflation living expenses keep rising while at the same time both in Canada and the U.S. federal money chiefs keep warning of impending deflation.
On October 4, 2008 the United States congress with encouragement from senatorsDemocrat Obama and Republican McCain passed the $700 billion Paulson-Bernanke bailout. Today October 29, 2008 markets await another bailout contribution to help fend off a world wide recession which has not yet materialized in terms of several consecutive quarters of negative growth, certainly not with Russia ratcheting down its GDP growth forecast to 7.3 for 2008. To date there is little anecdotal or statistical evidence of world wide recession; though media types ignoring continued population, and money growth warn of world wide deflation based on oil prices having descended some $85. since their July, 2008 peak, which seem poised to rise again with copper prices and the growing money supply. Nothing is said about the doubling of basic foodstuffs prices since last year, the rise of water rates by 9%, and the increasing charges for garbage removal in the Greater Toronto Area, or the recent world wide food riots resulting from corn, wheat, and rice scarcity in poor countries. As the money supply grows with U.S. inspired bailouts we are told to fear deflation in hopes that fear of deflation may not cause us to fear inflation so much that we help create it by trying to beat it with wage and price increases.