Wiley
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The New Depression: The Breakdown of the Paper Money Economy

ISBN: 978-1-118-15779-4
179 pages
April 2012
US $32.00 Add to Cart

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August 10, 2012
Singapore

The New Depression: The Breakdown of the Paper Money Economy

Bestselling author Richard Duncan is back with a new book warning that the world is heading into a depression, and that drastic and farsighted action must be taken immediately to avoid an economic collapse.

The New Depression: The Breakdown of the Paper Money Economy (Wiley; April 2012; Hardcover and ebook; $29.95; ISBN: 978-1-1181-5779-4) traces the origins of this crisis back to the abandonment of the gold standard in 1968.  Over the following four decades, total debt in the United States expanded from one trillion dollars to 50 trillion dollars. That explosion of paper money-denominated debt transformed the world by generating unprecedented wealth, profits, jobs and tax revenues. In 2008, however, the debt could not be repaid and the global economy was plunged into crisis. 

Duncan argues the current economic system is not Capitalism, but Creditism; and that Creditism requires credit growth to survive. Yet the overloaded private sector can bear no additional debt and the government’s creditworthiness is deteriorating rapidly. Should total credit begin to contract significantly, the economy will enter a New Depression with disastrous economic and geopolitical consequences.

“The first step toward finding a lasting solution to this crisis is to form a realistic understanding of the nature of this economic system – not as it used to be and not as any particular group thinks it should be, but as it really is,” writes Duncan. “Only then will it be possible to devise a strategy that could correct its faults.”

Duncan’s solution is bold and contrarian.  He argues this crisis has created an unprecedented opportunity for governments to borrow at historically low interest rates and invest in transformative industries such as renewable energy, nanotechnology, genetic engineering and biotechnology. Large scale, government-financed investment programs in those industries would generate enormous investment returns and set off a new technological, productivity-enhancing revolution that would end the crisis and improve the wellbeing of everyone on this planet.

Duncan also 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. 

Other topics in The New Depression include:

  • The causes of the global imbalances that have destabilized the world
  • How the economic crisis will evolve over 2013 and 2014
  • The geopolitical consequences of a new great depression
  • Wealth preservation through a diversified portfolio

Using historical data and practical investment knowledge, Duncan offers solutions on how to avoid the worst of The New Depression

Link to CNBC "Squawk Box" interview on August 20. 2012

http://video.msnbc.msn.com/cnbc/48722546/#48722546