2018-2019 Pop Goes The Bubble
By: Darryl Robert Schoon
GoldSeek.com
Tuesday, 15 January 2019
Fiat paper money: Once gold and silver derivatives
Today, instruments of debt issued by central banks
After the 2008 financial crisis, Fed Chairman Ben Bernanke invoked Milton Friedman’s theory that a helicopter drop of money could prevent a collapsing credit bubble from becoming a Great Depression.
When credit bubbles burst, defaulting debt and disappearing demand cause the velocity of money to plunge; and, in 2008, Bernanke resorted to Friedman’s untested theory hoping to prevent the US economy from collapsing as it did in the 1930s.
Friedman’s helicopter drop, however, proved to be a band aid, not a solution. Central bankers hoped the historic helicopter drop of $4.4 trillion would return the velocity of money to pre-crisis levels and reverse deflationary forces set in motion by the collapse. It didn’t.
The Rest…HERE
