OpEdNews » MONEY SUPPLY AND INFLATION SURGE AS DOLLAR CRUMBLES / DEPRESSION AHEAD

Farm Security Administration: Destitute pea pickers in California. Mother of seven children. (Circa February 1936)

Macroeconomists including Ben Bernanke, the current chairman of the U.S. Federal Reserve Bank, have agreed that cheap and easy credit in the 1920s was one of the root causes of the Great Depression ~ and cheap and easy credit has once again led to runaway inflation, a crumbling dollar and the likelihood of a major depression in 2009: Allen L Roland

The Great Depression took place from 1930 to 1939. During this time the prices of stock fell 40%. 9,000 banks went out of business and 9 million savings accounts were wiped out. 86,00 businesses failed, and wages were decreased by an average of 60%. The unemployment rate went from 9% all the way to 25%, about 15 million jobless people.

Ben Bernanke, current head of the Federal Reserve, said this in November, 2002 ~ "The U.S. government has a technology, called a printing press ~ or today, its electronic equivalent ~ that allows it to produce as many U.S. dollars as it wishes at essentially no cost .. Under a paper-money system, a determined government can always generate higher spending and hence positive inflation."

As Larry Edelson explains in Money and Markets ~ the fed has fully opened the inflationary money faucet to which I add ~ inorder to maintain an election year semblance of a moderate economic slowdown before the full extent of a likely depression is announced on January 20, 2009, the day Bush leaves office.

That way, George W Bush, in his ongoing efforts to avoid failure, can leave office and blame the spineless Democrats for an obviously failed Iraq as well as a increasingly obvious failed economy.

Wolfie

THAT'S RIGHT, BLAME THE MESSENGER

Who voted for Reagan, GHW Bush, Clinton, GW BUsh?

Those ignorant, lazy, good for nothing Amerikans!

by Wolfie (9 articles, 0 quicklinks, 33 diaries, 1208 comments) on Sunday, July 6, 2008 at 12:51:07 PM

The Money Trap

Hi Roland,

If the government STOPS SPENDING, the economy will collapse.

If the government KEEPS SPENDING, the economy will collapse.

There is no "right or wrong," but only how you wish to suffer, and if it will effect you or your children more.

There is an alternative, but most people don't like the math. They don't want to consider themselves as part of the problem, when they have always thought of themselves as a victim.

The math doesn't work, but if the government keeps pumping money out, it does give the appearance of a stable economy. $9.3 Trillion and counting. When will we admit that there is an elephant in the room? :-)

by Steve Consilvio (15 articles, 0 quicklinks, 2 diaries, 159 comments) on Sunday, July 6, 2008 at 2:33:24 PM

A wild an crazy guy for democracy.
Guesswhotoo6A wild an crazy guy for democracy.

1929 -1938 was a recall of money stocks by the FED

The 1929 crash was a well thought financial manipulation by the private corporation THE FED et al and was a direct result of money stocks being reduced by about 66%. It was a powerful demonstration by the money managers of just how much power they have (all). In 1938 they opened the fuacet again and presto... back in business for the economy. Fresh decoupled from the gold standard in 1933 and with a new set of laws under commerce (common law was retired). The bankers were poised to run the printing presses day and night.

by Guesswhotoo6 (0 articles, 0 quicklinks, 0 diaries, 13 comments) on Sunday, July 6, 2008 at 5:04:19 PM

NOBODY WITH TO MUCH TRUTH IT HURTS
RICH SHANOBODY WITH TO MUCH TRUTH IT HURTS

THERE IS A REASON

IN ORDER FOR THE GLOBALISTS TO GET FULL CONTROL OF THE WORLD THE UNITED STATES HAS TO NATURALIZED, OR BANKRUPT, AND THEIR PLAN IS ALMOST COMPLETE, THE BEST WAY TO DESTROY A COUNTRY IS TO DESTROY ITS ECONOMY. USE THE WARS TO STEAL OUR TREASURE, AND OPEN BORDERS, AND FREE TRADE AGREEMENTS, TO DO THE REST. THE HOUSE AND SENATE HAVE APPROVED THIS PLAN, THEY ARE FOLLOWING BUSHS AGENDA. SSP, AND NEXT IN AND AROUND 2010 THE NORTH AMERICAN UNION, AND THE AMERO. AND THESE TWO 2008 CANDIDATES ARE NOT THE PEOPLES CHOICE, SO IT LOOKS LIKE WE ARE AT THE POINT OF NO RETURN. WHAT SAY YOU.

by RICH SHA (0 articles, 0 quicklinks, 0 diaries, 106 comments) on Monday, July 7, 2008 at 12:06:10 PM

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