Wednesday, August 17, 2011

Martin Armstrong: Big Money & the Economic Depression

Martin Armstrong presents a theory for the financial/debt crisis that differs from hyperinflation- worldwide deflation as a result of sovereign debt default.
(This is not your typical Ackerman/ Mish deflation argument)

Armstrong points out the the US is not the worst debt offender (although he does leave out unfunded liabilities in his analysis).
He also correctly states that whether the final outcome is hyperinflation or a massive deflationary depression will be determined by the response to the crisis- whether governments continue to print, or turn to severe austerity ala Greece.
Armstrong believes that sovereign debt will default prior to the dollar collapsing into hyperinflation- however he correctly understands that either scenario is positive for gold as a massive deflation will result in all assets deflating vs. gold.

A must read to challenge your thoughts and perspective with an alternative but highly valid viewpoint.

Big Money and the Economic Depression

Pdf_16x16 5 pages

(Note, this was written yesterday, the paper is dated Aug 16, 1999, but this is a current piece)