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I don't know where you got your information about the lack of depressions in the late 19th century. It's entirely false. In fact an argument can be made that the late 19th was of the most economically unstable periods n the history of the United States.
This doesn't include finanical crises that occurred in the mid to early 19th century and those that occurred in the early 20th century. While we had a major economic depression from 1929 to 1939 the United States has been much more economically stable in the 20th century in the Federal Reserve Banking system than it was in the 19th without one.
In most cases the people that support Ron Paul's policies have a limited understanding of global economics and finance and a little and no understanging of the history of financial crises, recessions and depressons in the United States.
in most cases the ones who do not understand Ron Paul are the highly uninformed and biased. You have to be uninformed and ignorant to not understand Ron Paul nailed the coming economic crisis many, many years before it happened. He told us back when the Housing bill was first being discussed the horrible economic mess this country would be in. The partisan hacks who laughingly say otherwise have proven once again they have absolutely no understanding of economics and the government manipulation that plays havoc with the system.
But how could they understand? They never saw the depression coming. They do not have the knowledge to understand why it happened. They do not have the ability to understand why we are still in this depression. How can they possibly know how to get us out of it the best way? answer they don't
Last edited by Loveshiscountry; 04-30-2011 at 11:22 PM..
The problem is it's too simple which points out that Ron Paul has a limited understanding of the global financial system and he fails to understand the economic recessions, depressions and economic crises this country experienced in the 19th century that led up to Federal Reserve System and current economic system.
Ron Paul's biggest problem is he has 19th century solutions which failed miserably for 21st century problems.
LMAO The man that flat out nailed the housing crisis because he knows economics, according to you, has 19th century solutions.
The left sure does love to make up the most absurd things time and time and time again. His solution was to NOT MANIPULATE the economy. yea real 19th century. Gee that wont work how can we get into all those peachy bubbles where the bust is many times worse than the boom. because after all that's what people want, an unstable economy.
A strong follower of Mises economic principle. The same principles that told us what was coming and you proclaim far and wide he has no economic understand LMAO. What next. Babe Ruth had no understanding on how to hit home runs??? too funny
Huh? Deflation (meaning lower prices for everything) would be a GOOD thing. More people would be able to buy them; sales would go up and consumers and businesses would prosper. Just look at the consumer electronics industry if you want to see what happens when prices fall and quality goes up.
Deflation would not only affect the price of goods, it would also affect the price of labor. As the purchasing power of the dollar increased, all other things being equal, this would mean that you could employ people for less money as well. So I say that in the end, inflation, in theory, is neither good nor bad.
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Look at the housing industry and college educations and medical care and food and gas for examples of inflated prices and lower quality due to government trying to help.... by guaranteeing financing-- in the case of housing mortgages and college loans. The Federal Reserve is continuing to prop up the housing market by trying to keep interest rates artifically low...as if selling more homes would solve our problems. The reason for inflation of food and gas prices is due simply to the reckless and irresponsible printing of money and the resulting devaluing of the dollar and its loss of purchasing power. In all of these examples the problems STEM from the GOVERNMENT or the FEDERAL RESERVE which should be BANNED from ANY involvement in the private sector.
It is true that government and the Fed pump money into certain sectors which cause bubbles and crashes, and I agree this should stop. My comment about inflation was only about inflation in general and not about defending the Fed's inflation in particular.
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If they had been doing their job (leaving their noses OUT of what used to be a FREE MARKET), our currency would buy what it used to buy in the 1960s. That means that everything would cost about 1/15 of what you pay now for it. Imagine what you could do with 14/15 of what you spend now on food left over!
And everyone's income would also be 1/15 of what it is now, so again, it's a wash.
Inflation is not inherently bad bad because it changes prices - prices will change even under a gold standard. Indeed there was a bit of inflation during the mid 1800s as gold mining skyrocketed. The problem is when inflation is controlled by bureaucrats who hand out new money, created without any labor, to particular favored industries (namely, banks, but some others as well).
In short, new money is not necessarily bad. New money created from nothing and handed out to a few select individuals is bad.
The problem is it's too simple which points out that Ron Paul has a limited understanding of the global financial system and he fails to understand the economic recessions, depressions and economic crises this country experienced in the 19th century that led up to Federal Reserve System and current economic system.
Ron Paul's biggest problem is he has 19th century solutions which failed miserably for 21st century problems.
El Oh El. I'd love to see you debate Ron Paul on monetary issues. Then we'd see who has a limited understanding of the global financial system.
Deflation would not only affect the price of goods, it would also affect the price of labor. As the purchasing power of the dollar increased, all other things being equal, this would mean that you could employ people for less money as well. So I say that in the end, inflation, in theory, is neither good nor bad.
It is true that government and the Fed pump money into certain sectors which cause bubbles and crashes, and I agree this should stop. My comment about inflation was only about inflation in general and not about defending the Fed's inflation in particular.
And everyone's income would also be 1/15 of what it is now, so again, it's a wash.
Inflation is not inherently bad bad because it changes prices - prices will change even under a gold standard. Indeed there was a bit of inflation during the mid 1800s as gold mining skyrocketed. The problem is when inflation is controlled by bureaucrats who hand out new money, created without any labor, to particular favored industries (namely, banks, but some others as well).
In short, new money is not necessarily bad. New money created from nothing and handed out to a few select individuals is bad.
As opposed to what we have now? Where prices are inflating at rapid speed and wages are stagnating?
As opposed to what we have now? Where prices are inflating at rapid speed and wages are stagnating?
You do realize that that the price of gold has gone up by over 100% in the past three years? If the Dollar was gold backed do you have any idea of what type of inflation that would cause?
In short, new money is not necessarily bad. New money created from nothing and handed out to a few select individuals is bad.
nailed it. Manipulation will occur.
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