Worst Economy In 5,000 Years?

Lowest Interest Rate In 5,000 Years

According to Bank of England economist Andy Haldane, Bank of America Merrill Lynch economist Michael Hartnett and others, we’ve got the lowest interest rates in 5,000 years:

Interest Rates

Interest

 

The inventor of quantitative easing – economics professor Richard Werner – says that it’s a myth that interest rates drive the level of economic activity. According to Werner, the data shows that rates lag the economy.

In other words, interest rates respond to what’s already happened in the economy.  So does having the lowest interest rates in 5,000 years imply that we’ve had the worst economy in 5,000 years?

We don’t know, but there are quite a few signs that something is very wrong with the world economy …

Other Depression Indicators

We noted in 2009 that more Americans will be unemployed than during the Great Depression.

We noted in 2010:

The following experts have – at some point during the last 2 years – said that the economic crisis could be worse than the Great Depression:

We explained in 2011 that many economists agree we’re in a depression … and they only argue about whether we’re facing the “Great” depression of the 1930s or the “Long” depression of the 1870s. We also noted that housing prices fell farther than during the Great Depression.

In 2012, we wrote:

We’ve repeatedly pointed out that there are many indicators which show that the last 5 years have been worse than the Great Depression of the 1930s, including:

***

Indeed, the number of Americans relying on government assistance to obtain basic food may be higher now that during the Great Depression. The only reason we don’t see “soup lines” like we did in the 30s is because of the massive food stamp program.

We noted in 2013 that the British economy is worse than during the Great Depression, and more Americans are committing suicide than during the Great Depression.

We pointed out in 2014 that Europe is stuck in an economic malaise worse than a depression, and cited charts showing that Europe’s GDP is recovering much slower than after the Great Depression:

Great Depression v. Great Recession, United Kingdom GDP

Great Depression v. Great Recession, Europe GDP

We also noted that Americans fared better after the Great Depression than the 2008 crisis and that U.S. foreclosure rates are comparable to the Great Depression.

Last year, we noted that an important economic indicator – the velocity of money – has crashed far worse than during the Great Depression, and that the howling winds of deflation are hammering the U.S. just as much as Europe.

We noted that last year was the first pre-election year stock market loss since the Great Depression.

In January, we pointed out that a prominent economist said:

Future economic historians may not call the period that began in 2007 the “Greatest Depression.” But as of now, it is highly and increasingly probable that they will call it the “Longest Depression.”

In March, the Federal Reserve Bank of St. Louis noted that – as with Europe – America’s GDP is recovering much slower than after the Great Depression:

Economic RecoveriesAnd last month, Pew reported:

More young adults in the U.S. are living with their parents than at any time since around 1940, according to a new Pew Research Center analysis of census data.

Across the European Union’s 28 member nations, nearly half (48.1%) of 18- to 34-year-olds were living with their parents in 2014 ….

***

Similar long-term trends have been observed elsewhere. Canada’s most recent census, in 2011, found that 42.3% of adults ages 20 to 29 lived in their parents’ homes, up from 32.1% in 1991 and 26.9% in 1981. In Australia, about 29% of 18- to 34-year-olds were living with one or both of their parents (but without a partner or child) in 2011, up from 21% in 1976. And in Japan, the share of 20- to 34-year-olds living with their parents grew from 29.5% in 1980 to 48.9% in 2012.

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  • Just Watching

    There are only 35,000 more Americans employed now than this time in 2009.

    Unprecedented and profound market rigging are enabling an unprecedented and profound theft to occur.

    Unpredented and profound lying by the federals regarding amounts of taxes collected, amounts of money borrowed and amounts of money spent.

    When all this is understood, you understand why they provoke nuclear war.

  • jadan

    What’s holding the house of cards up? There is a Cassandra chorus out there, yet the stock market, supposedly an indicator of future economic activity, signals modest growth ahead even though every other indicator says disaster ahead. Is there a precipitating event just around the corner that will destroy false optimism and manipulation?

    • cstahnke

      Through some occult practices, I’ve entertained a theory based on some limited knowledge that there is in place a financial system that rigs and controls markets particularly financial markets. After 2008 and the finance oligarchs carried out a minor coup demanding that nation states bail out the system they agreed with the State actors to a souled up version of the “plunge protection team” to make it a permanent and more systemic. The major financial institutions agreed to curtail their more obvious criminal activity and cooperate with central banks, and the already emergent international system of Imperial bureaucrats who are nominally part of either national bureaucracies or international bureaucracies but, in fact, are members of as yet unofficial system that interacts through various intranets. Acting together they can do things like rig the Gold market or prop up the US Stock markets. If you think about it, the whole system pretends to be market based or just “economic” but is actually a rugid and emergent feudal political system that has little to do, on the macro level, with economics but everything to do with the fist of political control.

      • jadan

        Got to agree with you. There is a global aristocracy, a group of about 6 million members. Occupy brought attention to this rude fact of life and people now think of the “1%” in a manner not so different from pre-Enlightenment characterizations, when this elite went about proudly and disdainfully. They don’t dare posture in that way anymore, even though they are today more formidable than they were prior to 1776. DeToqueville predicted they would rise again from the corporate manufacturing power he observed in the early 19th. The mass of the people is much greater, however, and the numbers of aristocrats much smaller in proportion, though their power may be greater in absolute terms. They are afraid of the masses and must be careful in their exercise of power. They fear the “mob” as they did when they framed the Constitution. The mob is demanding power. Either they permit real democracy or they go to war with this mob. They will lose.

  • diogenes

    Why is lower interest rates “worse”? It’s only worse for usurers and other people who have too much money, unlike 99% of us. The sooner Wall Street and the banks go to hell and stay there, the better, not the worse. The casino is rigged and it predates on all of us for the benefit of a handful. Time to drop the handful down the toilet where they belong.

  • al

    Um, you mean according to Martin Armstrong we have the lowest interest rates in 5,000 years. He has had this graph for a long time.