Reply to: The American Dream

[sasguru]

Oooohh clever, you did an insult.

Sometimes insults are deserved.

[Robinho]

ftfy

Oooohh clever, you did an insult.

[sasguru]

So what you're saying is that when he stopped deficit spending, the recession came back? It's like it didn't work.

But yeah, why explain anything when insults simply suffice.

Why don't you move to Greece? It should be an economic utopia according to your theories. The public sector is being axed and privatisation i.e. the free market is being enforced by on high (i.e. Germany).
As opposed to here where Keynesianism and money printing are in full flow, in spite of the Coalition's rhetoric.

[Mich the Tester]

See you are asking a lot of question there and making a lot of assumptions. Not sure i have the intellect to write a post addressing all of them.

ftfy

[Robinho]

And what would have happened if they hadn't done that?

What would have happened if they hadn't stepped in to rescue banks in the last 5 years?

What would happen if there was suddenly no cash, no means to clear payments, and thus no means to buy fuel, generate electricity, clean water, etc?

I'll tell you what would have happened, in the 30s, and in the last few years; anarchy, blood on the streets and millions of dead people. Or do you really believe that the market, or 'the invisible hand' will sort things out without an intolerable level of social upheaval and violence?

Anyway, you still haven't given us years for the golden age of free markets and enterprise in the USA.

See you are asking a lot of question there and making a lot of assumptions. Not sure i can be arsed to write a post addressing all of them. If you want me to address one then highlight which one.

[Robinho]

The mainstream view is that this was caused and/or accelerated by Roosevelt's New deal policies, apart from the blip in 1937 when he tried to balance the books.
So basically Rob, you're talking bollux.
I'm not sure if you're trolling or genuinely stupid but I can't be fooked to waste time with you any further.

HTH.

So what you're saying is that when he stopped deficit spending, the recession came back? It's like it didn't work.

But yeah, why explain anything when insults simply suffice.

[Mich the Tester]

The point is the government was trying to control the market...

And what would have happened if they hadn't done that?

What would have happened if they hadn't stepped in to rescue banks in the last 5 years?

What would happen if there was suddenly no cash, no means to clear payments, and thus no means to buy fuel, generate electricity, clean water, etc?

I'll tell you what would have happened, in the 30s, and in the last few years; anarchy, blood on the streets and millions of dead people. Or do you really believe that the market, or 'the invisible hand' will sort things out without an intolerable level of social upheaval and violence?

Anyway, you still haven't given us years for the golden age of free markets and enterprise in the USA.

[sasguru]

. Anyway, GDP in the US started to recover in 1933 and kept rising except for a short recession in 1937.

The mainstream view is that this was caused and/or accelerated by Roosevelt's New deal policies, apart from the blip in 1937 when he tried to balance the books.
So basically Rob, you're talking bollux.
I'm not sure if you're trolling or genuinely stupid but I can't be fooked to waste time with you any further.

HTH.

[Robinho]

But most of the stuff in that link is about tobacco and cotton farming; personally I don't eat tobacco or cotton. Anyway, GDP in the US started to recover in 1933 and kept rising except for a short recession in 1937.

The point is the government was trying to control the market...

[Mich the Tester]

No it happened during the depression too. In spite of the fact that people needed the food, agriculture was encouraged to downscale to inflate prices.

Agricultural Adjustment Act - Wikipedia, the free encyclopedia

But most of the stuff in that link is about tobacco and cotton farming; personally I don't eat tobacco or cotton. Anyway, GDP in the US started to recover in 1933 and kept rising except for a short recession in 1937.

[Robinho]

That was in the 1920s, well before the depression started, and was caused by the recovery of European agricultural production after the first world war leading to an oversupply of grain. Basically, cobs of corn were cheaper than coal so people put them on the fire. Nobody was burning grain in the 30s as they needed the food, After 1933 there was a drought and a famine in the US (the Dust bowl) which meant that anyone seen setting fire to a grain of corn would probably have been lynched.

No it happened during the depression too. In spite of the fact that people needed the food, agriculture was encouraged to downscale to inflate prices.

Agricultural Adjustment Act - Wikipedia, the free encyclopedia

Poor Rob, he seems to be a bit confused about the sequence of events (as well as deeper issues). Perhaps he should read a history of the period, rather than try to justify his prior beliefs by random googling?

But i am right, so maybe you're the one that needs to read the history books.

[Robinho]

Where have I mention fractional reserve banking and why do you think I am blaming it?

Gold came into the US during the recession, suggesting that upward pressure on the interest rates came from the fact that the money supply collapse after a loss of banking confidence and the reverse effects of fractional reserve banking.

[sasguru]

That was in the 1920s, well before the depression started, and was caused by the recovery of European agricultural production after the first world war leading to an oversupply of grain. Basically, cobs of corn were cheaper than coal so people put them on the fire. Nobody was burning grain in the 30s as they needed the food, After 1933 there was a drought and a famine in the US (the Dust bowl) which meant that anyone seen setting fire to a grain of corn would probably have been lynched.

Poor Rob, he seems to be a bit confused about the sequence of events (as well as deeper issues). Perhaps he should read a history of the period, rather than try to justify his prior beliefs by random googling?

[Mich the Tester]

Edit: They even burnt grain to keep the prices high - madness.

That was in the 1920s, well before the depression started, and was caused by the recovery of European agricultural production after the first world war leading to an oversupply of grain. Basically, cobs of corn were cheaper than coal so people put them on the fire. Nobody was burning grain in the 30s as they needed the food, After 1933 there was a drought and a famine in the US (the Dust bowl) which meant that anyone seen setting fire to a grain of corn would probably have been lynched.

[sasguru]

Please clarify whether you are blaming fractional reserve banking or the gold standard? It sounds as if you are blaming fractional reserve banking.

Where have I mention fractional reserve banking and why do you think I am blaming it?