Ron Paul says we can buy gasoline for a dime... and he's right...
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The Depression that started in 1929 and lived through the 30's was not caused by spending and over regulations. At the time, there were almost no financial regulations. One could by $100,000 worth of stock with $10,000 cash. The crash of '29 was caused by speculation.
The banks were also not regulated and had no insurance. Bank runs were common.
We addressed that situation with financial regulations that worked quite well for 70 years, until they were deregulated again.
The panic of 1837 was the result of printed paper money. Was it not?
Banks were the first stock, basically. You risked your money that the bank would invest it and make you money, not unlike a Stock Broker today.
In the 1860's the United States was not on the gold standard. Monetary values were expressed in terms of paper money.
Black Friday in 1869 was the direct result of Grant dumping over 4 million in gold onto the NY stock market. The reason, to get more money available for circulation. Basically QE, with Gold that has real worth, not paper money that has no worth.
Ok, once again Paul disappoints me, really am have second thoughts about his ability to lead this Nation. We are NOT going back to the gold and silver stanard, Period. Not even if he somehow got the GOP nomination (highly doubtful) and then somehow managed to win the Whitehouse (again, doubtful). So back to reality and the present.
Inflated liquidity, that creates bubbles and crashes.
Poor nations and especially poor US citizens, get really PO'ed when you pay them off in counterfeit money.
The fact is, the poster you responded to is right. There were wild periods of inflation and deflation, with prices never being stable for very long. The Fed changed a lot of that. They were not able to prevent bank panics in the late 1920s and early 1930s, but New Deal legislation did accomplish that. Whereas bank panics occurred about once every 20 or so years prior to 1933, we haven't had a major catastrophic bank panic since then.
The new deal didnt do anything EXCEPT extend the Depression. People were starving and we plowed under food. WAKE UP!!!!
15 years of a horrible economy and you think that's a job well done???????
Quit scratching the surface, become informed, quit listening to sound bites for your information.
The Depression that started in 1929 and lived through the 30's was not caused by spending and over regulations. At the time, there were almost no financial regulations. One could by $100,000 worth of stock with $10,000 cash. The crash of '29 was caused by speculation.
The banks were also not regulated and had no insurance. Bank runs were common.
We addressed that situation with financial regulations that worked quite well for 70 years, until they were deregulated again.
FDRs depression lasted until the war ended. Lucky for us we destroyed the competition.
FDRs depression was caused by the same thing that caused our current depression. The same thing that we are experiencing today in rising higher education costs. Fixing interest rates below market, free money causes mal investment. Don't give the drunks the car keys.
Our shortest depression was the Depression of 1920 that lasted under 2 years. TWO YEARS!!!!! Government spending and taxes were cut by 40 percent over two years. Unemployment went from 12 to under 4 in that time.
But yea why do something that works when we can count on the benevolent hand of government to save us.
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