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Monetary Deception

May 01, 2009 (LBO) - In its most recent report on the world economy, the International Monetary Fund (IMF) has compared the 'Great Depression' and the current crisis but conveniently ignores the core cause, which is central bank rate manipulation.

Predictably, blame is also heaped upon the gold standard for not allowing money to be printed for re-flation or bank bailouts.

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Money printing results in gold losses to central banks.

Unlike the gold standard era, in the current fiat money regime, money can be freely printed to weaken a currency and arrest deflation or bailout banks because major floating rate central banks no longer depend on gold to back money supply.

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The full IMF box story is reproduced below:

How Similar Is the Current Crisis to the Great Depression?

The current global crisis is the most severe financial crisis since the Great Depression, which invites comparisons with this historical precedent.

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This box compares the current crisis with the Great Depression, with a particular focus on the unique financial conditions prevailing at the onset of each event.
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From a U.S. Recession to the Great Depression

The Great Depression remains the most severe recession on record in the United

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