FAST FIVE: 'Stalling Markets': The Last Time This Happened Was October 1929
As the gold price continues to rise, those who wonder whether it is worth buying miss the point.
While we can hope that this time the combination is not as disruptive as the 1929-32 episode, there is no doubt that today there is enough of a build-up of market distortions ready to wash out of the global economy to justify considerable unease.
This compares with a 25% contraction in broad money between 1929 and 1933 as thousands of American banks went under.
Through the medium of the dollar, in 1929-33 prices were measured in gold, which was fixed at $20.67 to the ounce.
Lesser currencies have always had difficulties, which will simply escalate if dollar interest rates rise.