Austrian Economics and the Great Depression

[forextrades]

Quote from jueco2005:

Forget about the 19th century, in the 20th and 21st century, the problem is central bankers.

To prevent screwing around with money, simply don't make make too much, stop m1,m2,m3. There should only be one currency.

No bank or government can ever be trusted not to print too much. If you look back at history you'll find that it has happened over and over and over again until an economy eventually collapses.

Even on the gold standard, who can be trusted to print just enough paper to back physical gold? Eventually, someone always fucks things up for everybody.

 

[gnome]

Quote from Capablanca:

How do you prevent screwing around with the money? The gold standard? Didn't prevent financial panics in the 19th century.

Governments have always screwed with the money, even when on a gold standard.

How do you stop them? Apparently they can't be stopped... because they can't resist the greed?

The reason there are ridges on the edge of our coins is so that WE citizens can't "screw with the money". (There have been times in history when clipping or filing coins by citizens was punishable by death!. Serious punishment... so why does Gummint do it... IN SPADES... and get away with it?)

Nevertheless, there would be no such panics if there were not bubbles (created by Gummint and bankers) to unwind and collapse.

 

[Capablanca]

Quote from gnome:


Nevertheless, there would be no such panics if there were not bubbles (created by Gummint and bankers) to unwind and collapse.

Maybe you can address the points made here:

http://www.j-bradford-delong.net/Politics/whynotthegoldstandard.html

 

[jueco2005]

The constitution gives congress the power to issue money, however, congress has delegated this function to the fed. I think that If congress regains power over the issuance of money things will be better, although no perfect.

As you well said govt always screw with money, but I think is worse when a few guys are given control over it. I rather give it to 435 elected guys.

Quote from forextrades:

No bank or government can ever be trusted not to print too much. If you look back at history you'll find that it has happened over and over and over again until an economy eventually collapses.

Even on the gold standard, who can be trusted to print just enough paper to back physical gold? Eventually, someone always fucks things up for everybody.

 

[jonnyy40]

Quote from Covertibility:

I got a kick out of this line:

"Anyone who thinks that the policies of FDR and the congress did not directly contribute to the longest recession in modern history is mindless drone."

Funny thing is how republicans are opposed to stimulus packages even though they accompany many of their tax cuts with such government spending (ie. Reagan spending, Bush's bogus Iraq War). Its a nice way to boost the economy and proclaim it as a result of the tax cut.

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