Depressionary Boxes - Long-Term View

The dance within the depressionary box continues...

U.S. Large Cap Total Return Index (LCSTRI); S&P 500 Total Return Index: Nominal Stock Prices


U.S. Large Cap Total Return Index (LCSTRI); S&P 500 Total Return Index to Gold Ratio: Real Stock Prices


This is not a forecast or opinion but rather a simply review of history. History reminds us that devaluation cannot, will not, restore economic prosperity. It invariably produces unpleasant economic consequences regardless of the original intentions. The devaluation of the dollar, all fiat money, walks a fine line between order and chaos.

The constant barrage of MOPE ensures that if history repeats, it will do so without warning. Look no further than the Weimar Republic for an illustration of unpleasant economic consequences of aggressive devaluation.

Weimar Republic (1919-1933) Hyperinflation: German Mark and German Stock Index 1925-1935


Weimar Republic (1919-1933) Hyperinflation: German Stock Index and German Stock Index to Gold Ratio 1925-1935