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Originally Posted by r3p1v
Can you give some evidence, examples, or other proof of this?
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Think rationally. If you have lost trillions of dollars, can you wipe out those losses by creating trillions on a computer and depositing those in your bank account?
Honestly. Think it through. Where is the money coming for this? The US is already running a massive budget deficit, and has $50+ trillion in unfunded long term liabilities. How are these banks being bailed out?
When you post back a decent answer, or that you don't know, I will explain it to you. But I want to see you admit ignorance or use your brain. It's not my job to provide answers when you have the internet at your fingertips.
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Originally Posted by r3p1v
My understanding is that prior to 1930's the idea was that the government should have a hands off approach to the economy and let things work themselves out. Many said this is the exact reason why things got so bad.
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Hoover and FDR were protectionists. Look up the Smoot-Hawley Tariff. Even the Federal Reserve admits it caused the Depression. But the public education system encourages an anti-capitalistic mentality, that only through state power and socialism was the Depression solved. On the contrary, the Depression would have been over in 2 or 3 years, if Hoover and FDR had not put in price fixing and created industrial cartels. By trying to prop up prices and wages, they created shortages which ground commerce to a halt.
Read this and understand it.
The Social Imperative of Sound Money by Llewellyn H. Rockwell, Jr.
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Originally Posted by r3p1v
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Friedman was a monetarist crackpot. And Bernanke is a moron too.
Ask yourself, is it possible to print (money) out of debt? That is what Friedman and Bernanke argue. That when the economy goes into a recession, the correct answer is to debase the currency, and dump new money into the economy.
Well guess what happens when you dump more money into the economy? You dilute the value of existing savings. And it is impossible to distribute the money evenly, so whoever gets it first, gets to buy more goods and services than everyone who didnt get new FREE money, leading to shortages (contracting supply) which raises prices (inflation).
If you like to read, let me recommend Murray Rothbard's "
America's Great Depression". It is a free PDF or you can buy it at several places online. It is a complete analysis of the Depression that should expand what you probably learned in public school.