Comments on: The Politically Incorrect Guide to the Great Depression and the New Deal http://dailyreckoning.com/the-politically-incorrect-guide-to-the-great-depression-and-the-new-deal/ Economic News, Markets Commentary, Gold, Oil and Investing Strategies. Sun, 27 May 2012 09:55:17 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: forex robot http://dailyreckoning.com/the-politically-incorrect-guide-to-the-great-depression-and-the-new-deal/#comment-41509 forex robot Sat, 28 Nov 2009 20:54:23 +0000 http://dailyreckoning.com/?p=17244#comment-41509 nice post. thanks. nice post. thanks.

]]> By: Carlos http://dailyreckoning.com/the-politically-incorrect-guide-to-the-great-depression-and-the-new-deal/#comment-18438 Carlos Thu, 13 Aug 2009 03:54:26 +0000 http://dailyreckoning.com/?p=17244#comment-18438 Yes, the war saved the US economy is without out a doubt.Which is why Roosevelt was desperado to enter.A great way to lower the unemployment rate is to send to die. Futhermore,the dream of any industrialist is to "blow away" the competition and what better way than to actually bomb them.The worlds major industrial powers,except the US in total ruin. Thanks to an intelligent George Marshall,the US went further in loaning "money" to the Europeans (and a much lesser extent the japanese) to buy US goods. The Huge war expenditure (a max at 40% of GNP)was eventually paid off mostly due to,what else, inflation. However the soviets with a high ratio of military and social spending and most importantly unable to destroy competitors industries finally imploded in what is simply an unsustainable fake economy. Anymore than Maddie's pyramide scheme. It lasted longer than no other (due to is size and internationalization), but en the end it had to fall. Yes, the war saved the US economy is without out a doubt.Which is why Roosevelt was desperado to enter.A great way to lower the unemployment rate is to send to die.

Futhermore,the dream of any industrialist is to “blow away” the competition and what better way than to actually bomb them.The worlds major industrial powers,except the US in total ruin.

Thanks to an intelligent George Marshall,the US went further in loaning “money” to the Europeans (and a much lesser extent the japanese) to buy US goods.

The Huge war expenditure (a max at 40% of GNP)was eventually paid off mostly due to,what else, inflation.

However the soviets with a high ratio of military and social spending and most importantly unable to destroy competitors industries finally imploded in what is simply an unsustainable fake economy. Anymore than Maddie’s pyramide scheme. It lasted longer than no other (due to is size and internationalization), but en the end it had to fall.

]]> By: JamesGardiner http://dailyreckoning.com/the-politically-incorrect-guide-to-the-great-depression-and-the-new-deal/#comment-15434 JamesGardiner Mon, 20 Jul 2009 10:05:47 +0000 http://dailyreckoning.com/?p=17244#comment-15434 Well you dispense with the notion that the deflation was caused by the adherence to the gold standard (as Peter Temin had argued) and say instead it was caused by Hoover telling industry bosses not to cut wages. But I can't imagine any industry boss not cutting wages simply because the president said so. As a theory that one really sucks. As for Hoover being a Keynesian, you have your dates wrong. Time-wise, you could say that Keynes was Hooverian. Also while any argument that military spending caused the recovery is clearly a fallacy you don't address the more logical idea that selling arms and general goods to all sides before USA entered the war (Japan and Germany included) was what set the USA on the right track. Then post-war, the USA became the worlds largest creditor by loaning that same money back so that Europe could buy US goods. During the war the USA was propped up by Britain's transfer of funds to the US and the US taxpayers savings via war bonds were they not? The war saved America, of that there is no doubt, not by spending but by making and selling things to people who needed them - ie the traditional way. Also it is very well known that FDR was copying Mussolini with his public works programs, primarily because it had seemed to work in Italy. ie It wasn't an ideology, he was just copying what seemed to work elsewhere. He might have been wrong but it seems a fair enough decision to make at the time! And one can easily argue that these public works programs helped post-war America because well basically infrastructure investment always helps an economy, so it wasn't money wasted. We have many half-baked theories; Galbraith, Keynes, Freidman, Bernanke, Temin, and now Murphy about what caused the depression and what prolonged it. All are contradictory. Methinks too many people are looking at the numbers, mixing up cause with effect and then applying their own dogmatic filter. Lucky Bernanke has the golden chance to test his theory out. I hope he is the one who was right though I suspect not. Well you dispense with the notion that the deflation was caused by the adherence to the gold standard (as Peter Temin had argued) and say instead it was caused by Hoover telling industry bosses not to cut wages. But I can’t imagine any industry boss not cutting wages simply because the president said so. As a theory that one really sucks.

As for Hoover being a Keynesian, you have your dates wrong. Time-wise, you could say that Keynes was Hooverian.

Also while any argument that military spending caused the recovery is clearly a fallacy you don’t address the more logical idea that selling arms and general goods to all sides before USA entered the war (Japan and Germany included) was what set the USA on the right track. Then post-war, the USA became the worlds largest creditor by loaning that same money back so that Europe could buy US goods. During the war the USA was propped up by Britain’s transfer of funds to the US and the US taxpayers savings via war bonds were they not? The war saved America, of that there is no doubt, not by spending but by making and selling things to people who needed them – ie the traditional way.

Also it is very well known that FDR was copying Mussolini with his public works programs, primarily because it had seemed to work in Italy. ie It wasn’t an ideology, he was just copying what seemed to work elsewhere. He might have been wrong but it seems a fair enough decision to make at the time! And one can easily argue that these public works programs helped post-war America because well basically infrastructure investment always helps an economy, so it wasn’t money wasted.

We have many half-baked theories; Galbraith, Keynes, Freidman, Bernanke, Temin, and now Murphy about what caused the depression and what prolonged it. All are contradictory. Methinks too many people are looking at the numbers, mixing up cause with effect and then applying their own dogmatic filter. Lucky Bernanke has the golden chance to test his theory out. I hope he is the one who was right though I suspect not.

]]> By: Lost & Found http://dailyreckoning.com/the-politically-incorrect-guide-to-the-great-depression-and-the-new-deal/#comment-15357 Lost & Found Sun, 19 Jul 2009 14:08:28 +0000 http://dailyreckoning.com/?p=17244#comment-15357 If products are in high demand prices should be decreased in order to allow for wider dissemination. Money isn't a product. It is a product substitute. Speculative bubbles can be healed with supply increase. Production bubbles cannot. If products are in high demand prices should be decreased in order to allow for wider dissemination. Money isn’t a product. It is a product substitute. Speculative bubbles can be healed with supply increase. Production bubbles cannot.

]]> By: Yes http://dailyreckoning.com/the-politically-incorrect-guide-to-the-great-depression-and-the-new-deal/#comment-15239 Yes Sat, 18 Jul 2009 06:09:20 +0000 http://dailyreckoning.com/?p=17244#comment-15239 panavision, Germany wasn't Nazi until 1933. So any sales we made to them really didn't help much, now did they? panavision, Germany wasn’t Nazi until 1933. So any sales we made to them really didn’t help much, now did they?

]]> By: tony bonn http://dailyreckoning.com/the-politically-incorrect-guide-to-the-great-depression-and-the-new-deal/#comment-15201 tony bonn Fri, 17 Jul 2009 23:46:11 +0000 http://dailyreckoning.com/?p=17244#comment-15201 regarding nazis and support thereof - that was mostly an effort by the large wall street financial firms of whom brown, harriman, brown and read dillon were leading actors. the bush crime syndicate was at the epicenter of nazi collusion along with the rockefellers and their standard oil empire. it was a government apart from the government although there were many in roosevelt's cabinet who were exceedingly interested in nazi success. however, most of their sympathies were with stalin which is why printing presses for usa dollars were shipped to the ussr out of montana in the early 1940s..... fdr was against the people 100% which is one reason he confiscated their gold - trade gold for liquor - what a deal..... regarding nazis and support thereof – that was mostly an effort by the large wall street financial firms of whom brown, harriman, brown and read dillon were leading actors. the bush crime syndicate was at the epicenter of nazi collusion along with the rockefellers and their standard oil empire. it was a government apart from the government although there were many in roosevelt’s cabinet who were exceedingly interested in nazi success. however, most of their sympathies were with stalin which is why printing presses for usa dollars were shipped to the ussr out of montana in the early 1940s…..

fdr was against the people 100% which is one reason he confiscated their gold – trade gold for liquor – what a deal…..

]]> By: panavision http://dailyreckoning.com/the-politically-incorrect-guide-to-the-great-depression-and-the-new-deal/#comment-15107 panavision Fri, 17 Jul 2009 07:42:12 +0000 http://dailyreckoning.com/?p=17244#comment-15107 Going into 1923, the capital structure in the United States was a lean, mean, producing machine. - You forgot to mention that the only period in history in which US was actually profitable through sales rather than theft of other nations wealth was driven by the US contravening international law and secretly selling ammunition and weapons to Nazi Germany Going into 1923, the capital structure in the United States was a lean, mean, producing machine. – You forgot to mention that the only period in history in which US was actually profitable through sales rather than theft of other nations wealth was driven by the US contravening international law and secretly selling ammunition and weapons to Nazi Germany

]]> By: D. A. Maim http://dailyreckoning.com/the-politically-incorrect-guide-to-the-great-depression-and-the-new-deal/#comment-15065 D. A. Maim Thu, 16 Jul 2009 21:15:00 +0000 http://dailyreckoning.com/?p=17244#comment-15065 FDR stepped into the White HOuse and Prohibition ended and "put the people first". Despite all the stimulus from the current administration out on Main street Americans have yet to see an end to the current "Prohibition" and there is no real sense that "the little guy" is being supported and put first. FDR stepped into the White HOuse and Prohibition ended and “put the people first”. Despite all the stimulus from the current administration out on Main street Americans have yet to see an end to the current “Prohibition” and there is no real sense that “the little guy” is being supported and put first.

]]> By: Bob http://dailyreckoning.com/the-politically-incorrect-guide-to-the-great-depression-and-the-new-deal/#comment-15029 Bob Thu, 16 Jul 2009 12:05:44 +0000 http://dailyreckoning.com/?p=17244#comment-15029 The last paragragh is complete nonsence. The last paragraph is complete nonsense. Comparing the sale of finite goods and services during a spike in demand is not the same as the issuance of credit - which is infinite. Banks create money from thin air based upon real goods (like car and houses) and services. It is the borrowers who have to find the cash to repay the loan plus the interest from either government fiat currency issuance (public spending) or from other people’s debt. If the banks stop magically creating money then public spending must rise to prevent the depression if borrowers are to repay their loans + interest. The last paragragh is complete nonsence.
The last paragraph is complete nonsense.
Comparing the sale of finite goods and services during a spike in demand is not the same as the issuance of credit – which is infinite. Banks create money from thin air based upon real goods (like car and houses) and services. It is the borrowers who have to find the cash to repay the loan plus the interest from either government fiat currency issuance (public spending) or from other people’s debt. If the banks stop magically creating money then public spending must rise to prevent the depression if borrowers are to repay their loans + interest.

]]> By: daddysteve http://dailyreckoning.com/the-politically-incorrect-guide-to-the-great-depression-and-the-new-deal/#comment-14968 daddysteve Wed, 15 Jul 2009 23:57:31 +0000 http://dailyreckoning.com/?p=17244#comment-14968 ...and the truth shall set you free. …and the truth shall set you free.

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