Dramatic, isn't it? I can only imagine what the chart would look like if we had workable data earlier than 1936, perhaps back to 1926, to see the peak of 1929.
I showed this chart to a bud earlier this evening who said "hey, it can only go up!" His enthusiasm is appreciated, but I'm not convinced it will, tho' he does invoke an effect here that carries an ironic edge. The chart is adjusted for inflation; that is, the graph, along with use of a logarithmic scale, brings the curve downward from what it would be without the adjustment. Considering we're now in a deflationary period, the curve will begin to adjust upward as inflation -- the steady increase in prices and in this case earnings due to increasing money and credit supply -- is drained away with the falling money and credit supply
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so I aint complaining.
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Dramatic, isn't it? I can only imagine what the chart would look like if we had workable data earlier than 1936, perhaps back to 1926, to see the peak of 1929.
I showed this chart to a bud earlier this evening who said "hey, it can only go up!" His enthusiasm is appreciated, but I'm not convinced it will, tho' he does invoke an effect here that carries an ironic edge. The chart is adjusted for inflation; that is, the graph, along with use of a logarithmic scale, brings the curve downward from what it would be without the adjustment. Considering we're now in a deflationary period, the curve will begin to adjust upward as inflation -- the steady increase in prices and in this case earnings due to increasing money and credit supply -- is drained away with the falling money and credit supply ( ... )
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