I have been troubled over the past 3 or 4 years...
There have been random thoughts floating around in my brain (not an unusual circumstance) that just made no sense...
After reading this, and another similar article yesterday, all these random thoughts suddenly connected together, and painted a frightening picture..
Allow me to explain..
I have studied the Great Depression, it’s root causes and the myth’s associated with it. Based upon what I know, the random thoughts in my head, and the articles I read yesterday, we are currently in spring, 1928. Allow me to explain..
There were 3 major causes of the great depression (and a host of minor ones) but the 3 main causes were:
An attitude of the people to keep our jobs here by raising tariffs on imported goods, and the result was a trade war that raised the prices of our goods here, and cost jobs in the industries and agriculture area’s that deal in exports.
Heavy government regulations on both business and agriculture, making the cost of doing business damn near prohibitive. Add to that the wage and price controls in place, paying more for imported goods needed to run your business and an inability to raise your price or cut wages to your workforce, and companies started to close the doors.
Next was an attitude of the people that the money supply was far too inflated. People demanded that the money supply be tightened to prevent so called hyper-inflation. The feds tightened the money supply. They tightened it so much, so fast, that physical dollars were just not in circulation. Case in point, when people went to the bank to get money, there was not enough physical dollars to give out. The feds had not only stopped printing, but were recalling and destroying every dollar they could get their hands on. The result was no cash on hand to loan, no cash on hand to pay depositors, and no cash on hand.... period.
These three things took a moderate recession in 1929, and turned it into a depression.
Now, check the attitudes of the people posting on this very site, and compare them to the above. Get the picture.
Take a look at what fubo has done, and compare to the above. Get the picture.
Listen to what the gop-e has been both saying and pushing for. Get the picture.
Now we got people calling for Bernanke’s head on a silver platter. His monetary policy is all that has prevented the second depression.
Conclusion... get ready to party like it’s 1929...
sub-note to those with gold and silver... what is your stash worth if there are no dollars available to buy it?
In 1928, kennedy and rockefeller got out of the stock market. They did not buy gold or silver, they hoarded physical cash (remember scrooge mcduck? his character was based on these two)..
Cash will be king, if we allow this to happen. But, I fear it is too late.
The jobs are already gone.
Crony capitalists running the show on this side of the Pacific, and Chicoms systematically attacking our industries (predatory pricing, industrial subsidies, capital subsidies, slave labor) from their side. The American worker is caught in the middle, and the invisible hand is lost at sea.
Why have cheap imports compete with American companies, the founders reasoned. After all, they understood that we had the natural resources, the technology, the labor force and one of the largest consumer markets. Those basic conditions are essentially unchanged today.