Still, striking differences separate now from then. The biggest is that governments -- unencumbered by the gold standard
which had limited their meddling...
-- have eased credit,
(printed money out of thin air)
propped up financial institutions and increased spending
(printed more money out of thin air)
to arrest an economic free fall.
The Federal Reserve and the International Monetary Fund have made loans available to emerging-market countries to offset the loss of private credit.
(printed money out of thin air)
Nor is there anything like the international rancor that followed World War I and impeded cooperation: In 1931, the French balked at rescuing Austria's biggest bank (Creditanstalt), whose failure triggered a chain reaction of European panics.
So far the U.S. is playing Sugar Daddy to the world. We'll see how much "cooperation" is forthcoming when any other country is asked to start playing that game. Oh, BTW, ignore the unpleasantness in Greece.
Also mentioned is ‘massive inter-governmental debt’ causing depression.
Like our trade debt to China unencumbered by a gold standard.
BUY HERE + MAKE THERE = DEPRESSION
MAKE HERE + MAKE NOW = RECOVERY
They knock the gold standard all they want but I notice China going on kind of a cooper standard rather than hold US Dollars or other currency. I’ll bet China is buying gold quietly too. They say nothing so as to not drive up the gold price