Quote:
Originally Posted by Shawnski
The easy credit promoted of the "Roaring 20s" flew in the face of the gold standard.
Not that I like to quote Wikipedia as a source, this does summarize the situation:
Sound familiar? If you think that depression was big, you ain't seen nothing yet.... We are living through the exact same thing right now.
Thanks to Keynesian economics, ever increasing bubbles have and will develop. The Nasdaq bubble/crash, the recent housing bubble/crash and the soon to come US dollar crash from its current bubble.
Just because Keynesian economics has been the recent flavour of academics and has been pushed onto students for decades, does NOT mean it is correct.
When one looks at the whole picture, our current welfare/warfare culture is driven by that type of monetary policy, and it is propelling us to the edge of a financial cliff rapidly.
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Again, this is ignoring the fact that those countries who dropped the gold standard generally recovered faster from depressions/recessions. Do Ron Paul supporters seriously think that you can achieve stability in a capitalist by eliminating the federal reserve? Has it not become blatantly obvious to everyone that instability is inherent in the free market?
EDIT: Written before I saw Shawnski's reply