Is Depression Inevitable?

By: Ian Campbell | Wed, Aug 22, 2012
Print Email

Why read: Because as abhorrent as the idea is, some people, me included, believe United States, many Eurozone countries, and as a result of those countries, the world economy is going to need to push the 'reset button' at some point - and, depression may be the catalyst to that reset.

Commentary: An ever-increasing individual, company, or country debt eventually has to lead to financial failure - or so one would believe. That said, a recent article can be summarized as saying:

In essence, in the first instance the result most likely is deflation that leads to depression, while the in the second instance the result most likely is high levels of inflation that eventually lead to depression.

If either scenario ensues, the endgame will be painful if either scenario unfolds in the next months and years.

You might want to consider reading the referenced article. I think it is a reasonably balanced and not an 'extremist one'. Certainly it is does not discuss or recommend a 'fortress mentality and strategy' that would have one now storing massive amounts of foodstuffs, water, and ammunition.

Topical Reference: The Deflation-Inflation Alternate Routes to Depression, Monty Pelerin's World, July 26, 2012 - reading time 4 minutes, accompanying 10 minute video titled 'The Economic Collapse for Dummies'.



Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
Economic Straight Talk

Through the Economic Straight Talk Newsletter Ian R. Campbell shares his perspective on the world economy, the financial markets, and natural resources. A recognized business valuation authority, he founded Toronto based Campbell Valuation Partners (1976), Stock Research Portal (2007) a source of resource companies market data and analytic tools, and Economic Straight Talk (2012). The CICBV* annually funds business valuation research in his name**. Contact him at
* Canadian Institute of Chartered Business Valuators
** through The Ian R. Campbell Research Initiative

The full version of The Economic Straight Talk Newsletter is published each trading day. To get your Free 14-day trial subscription, visit No obligation or credit card required.

Informed Investors are Successful Investors

Comments and opinions expressed in these commentaries are those of the authors. They do not constitute individualized investment advice, are provided "as is", may change without prior notice, and are used at your own risk. The information and content provided or referenced may be incomplete, inexact, or incorrect. Your use of these commentaries is subject to the Economic Straight Talk Terms of Use and Legal Disclaimer

Copyright © 2011-2013, Stock Research DD Inc., all rights reserved

All Images, XHTML Renderings, and Source Code Copyright ©