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October 08, 2009

There is no proletarian, not even a Communist movement, that has not operated in the interests of money

Spengler is at his gloomiest when addressing the economy.

The parallels between America in 2009 and Japan in 1989 are uncanny. An asset price bubble has collapsed, just before a tsunami of prospective retirements that the asset bubble was supposed to fund. Demand for savings is bottomless, and the government satisfies demands for savings by running a huge deficit and issuing debt. The crippled banking system borrows at an interest rate of zero and buys government securities. And the economy shrivels up and dies.

Posted by Ghost of a flea at October 8, 2009 07:57 AM