The New Depression: The Breakdown of the Paper Money Economy

The New Depression: The Breakdown of the Paper Money Economy

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by Richard Duncan
     
 

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Why the global recession is in danger of becoming another Great Depression, and how we can stop it

When the United States stopped backing dollars with gold in 1968, the nature of money changed. All previous constraints on money and credit creation were removed and a new economic paradigm took shape. Economic growth ceased to be driven by capital

Overview

Why the global recession is in danger of becoming another Great Depression, and how we can stop it

When the United States stopped backing dollars with gold in 1968, the nature of money changed. All previous constraints on money and credit creation were removed and a new economic paradigm took shape. Economic growth ceased to be driven by capital accumulation and investment as it had been since before the Industrial Revolution. Instead, credit creation and consumption began to drive the economic dynamic. In The New Depression: The Breakdown of the Paper Money Economy, Richard Duncan introduces an analytical framework, The Quantity Theory of Credit, that explains all aspects of the calamity now unfolding: its causes, the rationale for the government's policy response to the crisis, what is likely to happen next, and how those developments will affect asset prices and investment portfolios.

In his previous book, The Dollar Crisis (2003), Duncan explained why a severe global economic crisis was inevitable given the flaws in the post-Bretton Woods international monetary system, and now he's back to explain what's next. The economic system that emerged following the abandonment of sound money requires credit growth to survive. Yet the private sector can bear no additional debt and the government's creditworthiness is deteriorating rapidly. Should total credit begin to contract significantly, this New Depression will become a New Great Depression, with disastrous economic and geopolitical consequences. That outcome is not inevitable, and this book describes what must be done to prevent it.

  • Presents a fascinating look inside the financial crisis and how the New Depression is poised to become a New Great Depression
  • Introduces a new theoretical construct, The Quantity Theory of Credit, that is the key to understanding not only the developments that led to the crisis, but also to understanding how events will play out in the years ahead
  • Offers unique insights from the man who predicted the global economic breakdown

Alarming but essential reading, The New Depression explains why the global economy is teetering on the brink of falling into a deep and protracted depression, and how we can restore stability.

Product Details

ISBN-13:
9781118157824
Publisher:
Wiley
Publication date:
02/24/2012
Sold by:
Barnes & Noble
Format:
NOOK Book
Pages:
224
Sales rank:
873,658
File size:
4 MB

Meet the Author

Richard Duncan is the author of two earlier books on the global economic crisis. The Dollar Crisis: Causes, Consequences, Cures explained why a worldwide economic calamity was inevitable given the flaws in the post-Bretton Woods international monetary system. It was an international bestseller. The Corruption of Capitalism described the long series of US policy mistakes responsible for the crisis. It also outlined the policies necessary to permanently resolve it.
Since beginning his career as an equities analyst in Hong Kong in 1986, Richard has served as global head of investment strategy at ABN AMRO Asset Management in London, worked as a financial sector specialist for the World Bank in Washington, D.C., and headed equity research departments for James Capel Securities and Salomon Brothers in Bangkok. He also worked as a consultant for the IMF in Thailand during the Asia Crisis. He is now chief economist at Blackhorse Asset Management in Singapore.
Richard studied economics and literature at Vanderbilt University and international finance at Babson College, and, between the two, spent a year travelling around the world as a backpacker.

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The New Depression: How to Survive the Next Financial Crisis 3 out of 5 based on 0 ratings. 5 reviews.
mjOR More than 1 year ago
After reading book reviews on Amazon and seeing the book advertised on the RichDad/PoorDad website by Robert Kiyosaki I decided to read. (The last 2 years I've been self educating on everything economics). I found this book to give a good explanation about how our economy has evolved from capitalism to "creditism" and how we got into this mess. But I have to agree with other reviewers that the solutions offered in this book are poor. I think he should have stuck to how we might enter the next great depression; his solutions are limited (more government spending,status quo, etc.) He assumes that we couldn't transition into another economic system and that we must save "creditism."
Vietnam1968 More than 1 year ago
After reading Duncan's account of the state of our economy, you will understand it will NOT matter who is President, as our economy has been built on credit, not wages, since the Great Fraudster, Greenspan, the Fed Chairman 1987-2006. He also gives us scenarios on how it may play out in coming years. We no longer have free market capitalism, because if we did we would have been in a state of deflation since the 2008 crash. But the government, mainly the Fed, is propping the economy. The Fed's main job is not to fight inflation, and prevent unemployment. Their only job is to prevent DEFLATION.
Anonymous More than 1 year ago
The chapter on fiat money printing by the countries that exports goods to America is too one-sided and provocative. Skip Chapter 2. The solution proposed by the author is more macroeconomic tweaking of the economy, i.e. is expand credit and print more money. One star for the book.
Stockwatch More than 1 year ago
This book is a must read!!! If you want detailed insight as to how the economy works and what influence the financial markets, read this book. Also this book gives a great summary of how our monetary system evolved. Great job Richard Duncan. This book gets my 5 Star rating....
Anonymous More than 1 year ago
The ending? The main female protagonist dies.