Great Depression: Merely a Prequel
Oct 24
New Book Warns Economic Earthquake Has More Tremors in Store
Mainstream Economists Are Wrong About Recovery Too
WASHINGTON (Oct. 26)—Every time any economic indicator is even remotely positive a gaggle of financial “experts” rush forward to declare that “the stimulus is working,” “investor confidence is returning“ and “the worst is behind us.”
But it is far from over. As we mark the 80th anniversary of the beginning of the Great Depression this week, we are also witnessing its sequel, writes Vox Day in just-released The Return of the Great Depression.
Published by WND Books, The Return of the Great Depression presents in sobering simplicity a frightening, data-supported economic prognosis that resembles a grim Freakomonics.
So who is Vox Day and why should anyone take his economic forecast to heart? An established author and controversial provocateur whose eclectic career includes technological inventions and co-founding a cult-favorite electronic-music band, Day predicted the current global economic crash with a level of detail and accuracy that puts Nostradamus to shame. And he did so … seven years ago.
| Day’s Predictions |
Results |
| “There are, of course, some major differences between the American and Japanese economies, but the most troubling aspect of the situation is the way in which the Federal Reserve has imitated the Bank of Japan’s unsuccessful strategies. Injecting more liquidity into the money supply by lowering interest rates to stimulate investment in the economy certainly works, for a time, but eventually one runs out of bullets as the cost of money approaches zero.”
- July 22, 2002, WorldNetDaily |
“And what we know in Japan was that eventually they cut their interest rates to zero and that wasn’t enough. And, so far, although we made the cuts faster than they did and cut them all the way to zero, it isn’t enough. We’ve hit that lower bound the same as they did.”
- Paul Krugman, The Guardian, June 14, 2009 |
“It seems that many have elected to go into real estate, which doesn’t appear to be the best idea since prices are already at all-time highs and may already be well into a bubble of their own. Gold, on the other hand, is still in the lower range of its historical pricing and the increased volatility of gold mining stocks offers some real upside….”
- July 22, 2002, WorldNetDaily |
From 07/22/02 to 09/22/09, the price of gold rose 214 percent, from $323.30 to $1016.60. The HUI gold mining index increased 254 percent. The S&P 500 increased 26.4 percent and the Case-Shiller Composite-20 housing price index fell 0.7 percent.
- Yahoo Finance, September 22, 2009 |
“’Existing-home prices are expected to… hold essentially even in 2008 at $218,300.’ The February report comes out this week… let’s just say that instead of $218k, I’m expecting a decline that would project to $175k or less by the end of the year.”
- March 23, 2008, Vox Popoli |
The national median price of existing homes plunged to 175,400 dollars in December 2008.”
- National Association of Realtors, January 27, 2009 |
Neither a financial survival guide nor a beat-the-markets self-help book, The Return of the Great Depression provides some desperately needed economic perspective providing vital new insights, including:
- The possibility that it could be 2032 before the economy fully recovers;
- The ominous similarities between the American economy of today and the crushing Japanese economic crash of 20 years ago;
- How Obama’s stimulus plan was actually smaller than Hoover’s-and likely to be just as ineffective;
“You don’t have to be an economist, trader or sophisticated investor to appreciate the profound wisdom and insight in this book,” said Joseph Farah, co-founder and CEO of WND Books. “It’s presented in such a straightforward, easy-to-comprehend fashion that almost anyone can read it and everyone should. That’s why right now we’re selling the ebook for only $1.99.”
Inside ‘The Return of The Great Depression’:
- Executives at very large multinational industrial companies are privately reporting that their future order books look worse for the first quarter of 2010 than they did for the first quarter of 2009 when the markets were plunging and the effects of the autumn financial crisis were being realized throughout the corporate world.
- The amount of failed bank deposits as a percentage of total bank deposits is averaging 2.3 percent per year over the last two years, which is more than twice as high as the 1.1 percent annual failure rate in 1929 and 1930.
- The FDIC has announced that its insurance fund is already in the red and does not anticipate the possibility of a return to solvency until 2012 at the soonest.
- At $52.8 trillion, total credit market debt presently stands at 375 percent of U.S. GDP, so the deleveraging process will require a significant amount of economic contraction in order to reach a level that the economy can sustain. For example, the Great Depression caused total credit market debt/GDP to decline from 287 percent to 135 percent.
| WND.com |
WND*SUPERSTORE.com | Contact | Copyright 2009 All Rights Reserved. WorldNetDaily.com Inc.