Headed for a 1930’s Style Depression -- Karl Denninger

Is the economy getting ready to crash or take off to new highs? Karl Denninger of Market-ticker.org says, “How do you take off? Where is the consumption base that forms 60% of our economic output? We have a small percentage of the population that has done extremely well with this so called reflation. However, we have everybody else who has done very poorly.” One of the biggest drags on the economy will be further implementation of Obama Care in 2015. When next year comes around, Denninger says, “The worst of this impact will come after the elections in November. I think coming into 2015, you are going to see a major deterioration in the employment index. That’s bad news for the economy as a whole.” Denninger thinks we could be headed for a 1930’s style depression and adds, “The longer that the Fed stays involved in their manipulation of market rates, the more likely it becomes. . . . The problem with the Fed and fiat currencies is, in nominal terms, you can prevent the deflation.”