Asset-Debt Saturation Macroeconomics:
The US price level dropped 25.9% from 1929 to 1933, while real GDP dropped 28.7%
Given the drop in real GDP, the US experienced excess price-level deflation of 34.1%
This was the terminal end of the first subfractal series ending in 1932 of the US Equity 158 year Great Second Fractal starting in 1858 and ending in 2015.
Those in monetary, economic, and political leadership positions at the time of the deflationary collapse of 1929 to 1932 later recanted or revisited their positions of beneficial economic and debt deadwood cleansing by allowing nonintervention free-fall collapse.
Hayek, Robbins, Mellon, and Hoover all later gained perspective and an appreciation of the critical effect of the generational boom-bust deflationary collapse on displaced destitute citizens, the global movement towards extremism and fascism, and the natural progression to a global unprecedented world war.
Ultimately, without demand and credit for anything else, citizens were paid wages to wage war against other like citizens of the world who had no peaceful opportunities in a debt and asset saturated macroeconomy.
That was at the terminus of the US 158 year great Second Fractal first subfractal series in 1932.
What will be the response of the political and monetary and treasury system at this the terminal portion of the second subfractal series lasting from 1932 to 2015?
A national real bills doctrine operated by the Sovereign verses the private banks would directly trade sovereign currency for socially useful real work – no need to go to war to employ citizens and avoid domestic chaos secondary a debt-asset saturated system.
No need to bother or tax the super rich for their contributions to their established system of laws that promotes fraudulent usury, trans generational wealth transference, 400 years of compounding of interest on loaned money not originally in the vault, favored tax advantages on non work related interest and speculative profit, and safe place during major wars….
Let the sovereigns create money to trade for socially useful work within their own countries.
Useful work, services, and products is, after all, the benchmark for a good currency.
A national real bills doctrine for all sovereign nations using their own currencies will trade national currency for work sans work as war.
This approach is not inflationary. It just maintains the system and allows the global system to unwind its debt load.
Turning back to the first subfractal ending in 1932 of the 1858 US 155 year second fractal……
Hoover blaming Mellon as a liquidationist …