Depressions Are Structural Problems

People look at the system and they say that it really is not sustainable, it really is based on confidence, but we�re in the process of eroding confidence. There is no exit from quantitative easing. We should say there�s no good exit. You can back away from it, but then you�ll implode the economy in a deflationary crash.

Or you can keep going and eventually cause a loss of confidence in the dollar and then have a hyper-inflationary crash, so you got a crash either way. One looks like the Great Depression, one looks like the late �70s but worse. Those are the only two paths, but there�s no other path. There�s no way we can just sort of taper, reduce it, finesse it, try to get growth on a self-sustaining path.

The reason for that is we�re in a depression. And depressions are structural problems; they require structural solutions. You cannot use a liquidity solution for a structural problem. You need a structural solution.

- Jim Rickards via a recent Future Money Trends interview:

http://futuremoneytrends.com/blog/?p=10062