Fear The Boom, Not The Bust


This article originally appeared at Mises.org.

If you listen to TV commentators, you’ve been told the worst is behind us. Growth is picking up, and Europe is coming out of its slumber. No one seems to be concerned that this tepid below-2-percent growth is being entirely fed by the central bank’s massive money printing. It’s a “growth at any price” policy. How quickly we forget.

Back in the boom days, anyone who questioned double-digit growth in housing prices was viewed as an unenlightened Cassandra, lacking knowledge on how the new economy had fundamentally changed the law of scarcity. Austrian economists consistently warned that a boom built on foundation of easy money could only lead to a disaster. Today, most of the growth is coming from the interest rate-sensitive sectors of the economy, such as cars and housing. This should be ringing warning bells everywhere.

The conventional wisdom is that the Fed will begin to taper when growth picks up. This is a complete misreading of what is actually happening. The Fed made a monumental mistake, and does not really know how to get out of the trap it had set upon itself.

The Fed embarked on a “we know best” policy of QE3 (a third round of quantitative easing) last fall, and induced a market bubble in the spring. The Standard & Poor’s 500 index gained 12 percent from January to June 2013, while growth remained subdued. The Fed realized its mistake and now wants to get out. The problem is that in economics, as with most things in life, it’s much easier to get into trouble than out of it. The Fed wants to take away the punch bowl; but it knows that interest rates will rise, the stock market will crash and the economy will tank. The longer it waits, the greater will be the inevitable adjustment.

If we do not learn from history, we are bound to repeat it. We have been here before. The depression of 1920 and Roosevelt recession of 1937 show us what happens when excessive monetary printing is followed by tepid tapering.

The 1937 Recession is a perfect example of Austrian business cycle theory. It was severe but short. Output fell by 11 percent and industrial production by 32 percent. Unemployment surged back up from 14 percent to 19 percent.

There is considerable disagreement on the cause of the recession, with some economists blaming the tightening of fiscal and monetary policy. Reserve requirements were increased, and the budget deficit was reduced. Yet spending in the 1937 fiscal year was $7.6 billion, compared to $6.5 billion in 1934 and $6.4 billion in 1935: two spectacular boom years. Taxes went up about 1 percent of gross domestic product from 1936 to 1937, but were less as a percentage of GDP than the rebound years of 1938 or 1939. Writing in 1956, E. Cary Brown found that fiscal policy changes accounted for less than a quarter of the downturn. The Fed did raise reserve requirements, but banks were already holding abundant excess reserves. The new requirements had very little impact.

The real cause of the 1937 recession occurred much sooner. The die was cast early in 1934 when the United States set the price of gold at an overvalued $35 an ounce. The ensuing gold inflows caused the money supply to explode, increasing 12 percent per year (M2) from 1934 to 1936. A boom ensued with real output growing 10 percent in 1934, 8.9 percent in 1935 and 13 percent in 1936. As Austrians would say, the additional money masqueraded as real savings. Since no real resources had been liberated, a scramble for resources followed. Eventually, many of the investment projects that had been undertaken turned out to be unprofitable and needed to be abandoned. The 1937 recession was necessary and desirable to free up resources from the malinvestments of the previous years. A recession is a realignment of resources closer to what society really wants to be produced. The central bank could have continued printing, extending the illusion of prosperity; but this would have just delayed and amplified the final adjustment.

By late 1936, the Fed started to get worried. And in March 1937, the chairman of the Fed, Martin Eccles, said: “[R]ecovery is now under way, but if it were permitted to become a runaway boom it would be followed by another disastrous crash.”

In December 1936, the central bank began sterilizing the gold inflows so they no longer boosted monetary growth. This was a timid tapering by contemporary standards. Monetary growth slowed from 12 percent to essentially nothing. This was the equivalent of gently tapping on the brakes. Anyone who considers this excessive is implying that a capitalist economy needs monetary juice to operate. Yet there is ample evidence from the 19th century of a stable money supply resulting in solid growth, and money is a measure of value and serves its function best when it is stable.

The bust was written in the cards. It could not be avoided, just postponed. It is not the bust, but the boom, that should be feared. The bust was of short duration and could have been much worse if the Fed had not pulled the punch bowl then and there.

We currently fear Fed tapering, as we should. Yet we should be even more fearful that it doesn’t taper. Today, we really have a dreaded choice of losing an arm now or two arms and a leg tomorrow. Because the price distortions have been massive, the adjustment will be horrendous. Government policy makers and government economists simply do not understand the critical role of prices in helping discovery and coordination.

Recognizing that the economy is still weak, the Fed at its Wednesday meeting yet again declined to begin tapering. When the Fed is finally forced to cut back, interest rates will rise, Wall Street will call for relief and the economy will slump. This may be delayed with additional printing for a couple of months; but the adjustment will occur, and it will be severe — probably much worse than in 2008. However, this time there are no arrows left in the government’s quiver to spend or print its way out of trouble.

–Frank Hollenbeck

Personal Liberty

Frank Hollenbeck, PhD

teaches at the International University of Geneva.

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  • http://www.rt.com Alondra

    Slush fund of top politicians found at Vatican Bank, Obama, Clinton, Roberts? Legatus split!

    SLUSH FUND ACCOUNTS of major US politicians identified and seized at Vatican Bank (Rome). On 5th January 2011, it emerged that US establishment-related slush fund accounts had been located in, and seized from, the Vatican Bank in Rome.

    The source of funds for these accounts in almost every instance was found to be the US Treasury. Beneficiaries of the covert Vatican accounts include Barack Obama, Michelle Obama and each of the Obama children, Michelle Obama’s mother, all the Bushes and the Clintons, including Chelsea Clinton, Joe Biden, Timothy Geithner, Janet Napolitano, several US Senators, including Mitch McConnell, several US Congressmen including John Boehner, several US Military Chiefs of Staff, the US Provost Marshal, the US Judge Advocate General, the US Supreme Court Chief Justice, John Roberts, several US Judges, the Pope, and several cardinals.

    Big money was found in each of the accounts.

    The longer the beneficiaries have been in office, the greater the account balances were found to be. They range from a few million USD to more than a billion USD in the case of John Roberts. The total number of slush fund accounts so far identified at the Vatican Bank is said to be between 600 and 700. This number is likely to grow as international élite corruption investigations spread worldwide. http://forum.prisonplanet.com/index.php?topic=198394.0

    P.S. If they are in one company with Pope, so they are saved. Praise Satan.

    • FreedomFighter

      Nothing is surprising me these days, corruption runs deep and now for the planned war…
      “The Fed made a monumental mistake, and does not really know how to get out of the trap it had set upon itself.”
      The Historic solution to “Fed mistake” is a War.
      Laus DeoSemper FI

      • polmutant

        yes population crop comes soon. eliminate the sheoples eliminate the debt. soon the sheoples will learn human life is the cheapest commodity on the face of the planet and cheapest reneweable resource, molon labe

      • Wellarmed

        The Historic solution to “Fed mistake” is a War.

        How I wish you were wrong on this one FreedomFighter.

      • Nadzieja Batki

        A comment to “the Historic solution to “Fed mistake” is a War which creates even more onerous problems which bring on even more onerous problems (doubling of words is not in error but on emphasis). When the US sends its young men to war and gets them killed that leaves the populations of females without males to marry and what they end up marrying is the weakest males remaining which doesn’t bode well for next generations. What remains of the population is also oldsters which will end up being maintained by the government. Both examples of the populations that remain behind bring on big government growth and control.

    • michiganminuteman

      Alondra, good post and good investigation. Good to see you are still fighting the good fight!

      • nc

        Michigan, “good investigation” is one that produces evidence that can be used in a court of law and/or convinces many people of it’s findings! Alondra’s “nvestigation” failed both test!
        A “good post” is one that satisfies you but not necessarily anyone else!
        Alondra is a loose cannon and a joke!

        • Nadzieja Batki

          The same can be said for you, nc, that you are a loose cannon and a joke.

        • http://www.rt.com Alondra

          Papa, you something whispered?
          Thanks for not shouting.
          Keep having fun, dear, and do not be bilious.

  • KG

    The so-called ‘Austrian School’ of economics was tried and it failed miserably. Many people who claim to be ‘Austrians’ seem to think that the American economy was a paradise before the presidency of FDR. The truth is much darker – especially if you were a common laborer. There we no less than 15 depressions or ‘panics’ as they were known as well as a long depression that started in 1873.

    The ‘unwashed masses’, the ‘pool of labor’, the ‘have-nots’. The “Lazarous’ of America. – or what Marx called the Proletariat. Strictly speaking, the Proles were the ‘workers army’ that was supposed to realize their station and seize the means of production for themselves. The problem with that scenario is the fact that while its looks like an attractive solution to the common mans misery, it’s just as deadly as any Fascist regime of terror every other ‘Austrian School’ has turned into (re. Pinochet’s Chile).

    The simple fact that is missing from Hollenbecks conjecture is the lack of monies and growth at the base of the economy. Right now, because of the slow and steady war against organized labor, the people at the bottom of the economic pyramid are being payed less than ever. For most Americans their real wages, adjusted for inflation, haven’t raised above what they were in 1979.

    Instead of handing money to Bill Gates and his buddies, let the real job creators earn it through higher wages and benefits.

    • FreedomFighter

      Your posts remind me of a 3 color fabric creation…no-matter how you weave it, cut it, shape it, fold it, or sew it, its still only 3 colors, communist/socialist/progressive.
      <Laus DeoSemper FI

      • KG

        You remind me of the old Germanic flag .The black, red and white turned into the red, white and black hawkenkreutz – the same “..G-d fearing Patriots” who helped Adolph Hitler into power.

        • Nadzieja Batki

          Which portion of Germany threw in its support for Hitler from his rising to power? Which portion suffered the most because they would not bow to him?

          • KG

            Which portion of Germany threw in its support for Hitler from his rising to power?

            Hitlers rise to power happened in the beer halls of Munich where he befriended other veterans bitter over Germany’s loss in WWI. A split in the NSDAP occurred when it was proposed that the Nazis join with the German Socialists. But Hitler demanded that they reject the socialists because they were not “German” but Jewish saboteurs. He actually quit the party and told them that he would not return until they got rid of the Socialists. After breaking from the Socialists, Hitler rejoined the Nazis. After the failed Beer Hall Putsch, Hitler realized that the Nazis could only be successful if they use legitimate means to gain power. Thus Hitlers meteoric rise to power started when members of the Nazi party began to be elected to the German Reichstag. Hindenburg, in a bid to quell political tensions gave the office of Chancellor to Hitler.

            While the Ashkenazim Jews were the primary focus of the Nazis ‘purification’ of Germany’s population, any group that even appeared to oppose the Fuhrer were arrested, jailed, executed, beaten, tortured and gassed along with their Jewish fellow citizens. Labor leaders, Union members, Homosexuals, Jehovah’s Witnesses, Communists, Socialists, Intellectuals, etc.

          • Vigilant

            “Bismark, in a bid to quell political tensions gave the office of Chancellor to Hitler.”

            Try Otto von Hindenburg, Mr. “degree in history.”

            Bismark was dead some thirty plus years before Hitler became Chancellor.

          • KG

            All the krauts look alike too me!

          • Vis Fac

            Also alles, was wir Deutschen gleich aussehen, Sie wissen wir? Es ist die perprtually inane, die eine solche Aussage machen würde. Das nächste Mal sind Sie heraus, dass ich Sie Tags auf allen Germens Sie finden können und sehen ho falsch sind Sie platzieren möchten. Sie sind ein Kommunist / Sozialist und meine Achtung vor einer kommunistischen / sozialistischen können auf diese Weise werden “, resümierte die einzige gute kommunistischen / sociialist ist ein toter!

            Libertas inaestimabilis res est

          • KG

            Horst wessel lied
            For Musical accompaniment:

            Die Fahne hoch! Die Reihen fest geschlossen!SA marschiert mit ruhig festem Schritt.Kam’raden, die Rotfront und Reaktion erschossen,Marschier’n im Geist in unser’n Reihen mit.Kam’raden, die Rotfront und Reaktion erschossen,Marschier’n im Geist in unser’n Reihen mit.

            Die Straße frei den braunen Batallionen.Die Straße frei dem Sturmabteilungsmann!Es schau’n aufs Hakenkreuz voll Hoffnung schon Millionen.Der Tag für Freiheit und für Brot bricht an!Es schau’n aufs Hakenkreuz voll Hoffnung schon Millionen.Der Tag für Freiheit und für Brot bricht an!

            Zum letzten Mal wird Sturmalarm geblasen!Zum Kampfe steh’n wir alle schon bereit!Schon flattern Hitlerfahnen über allen Straßen.Die Knechtschaft dauert nur noch kurze Zeit!Schon flattern Hitlerfahnen über allen Straßen.Die Knechtschaft dauert nur noch kurze Zeit!

            Die Fahne hoch! Die Reihen fest geschlossen!SA marschiert mit ruhig festem Schritt.Kam’raden, die Rotfront und Reaktion erschossen,Marschier’n im Geist in unser’n Reihen mit.Kam’raden, die Rotfront und Reaktion erschossen,Marschier’n im Geist in unser’n Reihen mit.

      • KG
      • independent thinker

        His posts sound to me just like he lifted them word for word from the lectures of some admitted communist leaning socialist professors I had in college in the 60s.

        • Nadzieja Batki

          The language of the Dems/Progs/Leftists/Marxist, etc., does not change but the meaning of the words changes. Evil is not very original.

    • TheOriginalDaveH

      KGB says — “The so-called ‘Austrian School’ of economics was tried and it failed miserably”.
      Is that so? And where was that, KGB?
      Meanwhile we all know that Socialism has been a Failure everywhere that it’s been fully implemented — USSR, Mao’s China, North Korea, Cuba, etc.
      Without Capitalism to parasitize, Socialism cannot stand.
      Anybody so ignorant, as to believe anything KGB says, can study the economies of the countries in this ranking of countries by order of Economic Freedom (more Economic Freedom = Less Socialism):
      As Government Grows, the Economy Slows.

      • Vis Fac

        No government ever voluntarily reduces itself in size.
        Government programs, once launched, never disappear. Government feeds off the people and saps their life from them as any parasite. Actually, a government bureau is the nearest thing to eternal life we’ll ever see on this earth!- Ronald Reagan

        Government does not solve problems; it subsidizes them.- Ronald Reagan

        Government always finds a need for whatever money it gets. – Ronald Reagan

        Government is like a baby. An alimentary canal with a big appetite at one end and no sense of responsibility at the other. – Ronald Reagan

        Libertas inaestimabilis res est

        • KG

          Ronald Raygun :

          “…My fellow Americans, I’m pleased to say that I have signed legislation which outlaws Russia forever. The Bombing begins in five minutes…..is this thing on?”

        • TheOriginalDaveH

          Reagan talked a good show, but Government grew dramatically under Reagan. Was that in spite of Ronald? Who knows?
          Anyway, here is a very good article that everybody should read to aid in the removal of their Blinders:

          • Bob666

            And that sir is why I left the GOP in Reagan’s second term.

      • KG

        TODaveH – you can’t be that stupid? It was the era of American commerce before FDR as I clearly stated in my post. For most of American history there was a general ‘hands-off’ approach. Did Government get involved with the American economy? Yes and no. Yes – primarily to develop the expansive west of America, Land was given to speculators to build railroads so as to facilitate commerce and travel.

        And no. The average worker in America throughout the 1800’s lived either a life tied to the land as a farmer or toiled in Railroad yards or factories. Most of the skilled craftspersons, like stone masons and carpenters lived a vagabond existence going from town to town in search of work. It was the ‘lucky’ ones that could have a job in town or settle down with a family.

        • TheOriginalDaveH

          Your conjecture is meaningless, KGB. America became the economic growth engine of the world during the 19th Century. It did so as a result of very little Government (Government Spending of only 5%), and in spite of the Dictator Lincoln’s War of Aggression Against the South, which was contrary to Free Markets and set the country back economically for at least a decade.

          • KG

            Yes – at the cost of working Americans. During this time, child labor was employed as well. Do you wish to return to child labor? Or do you want women working in factories 16 hours a day? Or carpenters that worked 12+ hours a day just to eat?

            Yes I’ll agree the Rich were very prosperous during this time. However, many in America dreamed of a better life and started to organize and demand to be treated as human beings instead of tools for industry. The Great Uprising of 1877 was an example of the anguish and despair most working people in America experienced.


          • TheOriginalDaveH

            Unions had little to do with the decrease in involuntary child labor. They wanted child labor laws to be passed because the children were unwanted competition to the Unionists. Child labor, and work hours, were decreasing naturally as our economy grew:
            Anybody who would claim to the contrary can answer this question — “Why are there exceptions in the child labor laws allowing parents to employ their children?”

          • KG

            I see. You and Mr Von Misies have no qualms when it comes to employing children in dangerous factories or jobsites. For you last question, ask family farmers what they think of employing their children on their own farms.

            And, as usual, you are lying about what prompted American Union workers to fight to outlaw such a heinous practice.


            Please, stop your lying and acknowledge the truth. It may save you from a life of disappointment.

          • TheOriginalDaveH

            Unlike you, KGB, I don’t force my choices on other people.
            Imagine that, a Liar calling me a Liar. The problem you have, KGB, that most people are very familiar with the lack of character that propels Unionists to Force their way on other people. So it’s unlikely that they would believe a word your lying commie arse utters.

          • KG

            The problem you have is the desire in your heart to dominate lower classes through economics so as to improve your station in life at the expense of others. Anyone who puts any faith in a system explicated by a crazy Russian lady or an 18th century Fascist economist has to lack some kind of character as well.

          • TheOriginalDaveH

            Not me, KGB. I believe in voluntary trade in Free Markets. It is you who advocates the violent way of Unionists who force their ways on their fellow citizens:
            You are pure Evil, KGB.

    • TheOriginalDaveH

      KGB says — “There we no less than 15 depressions or ‘panics’ as they were known as well as a long depression that started in 1873”.
      What Murray Rothbard, one of the greatest intellects of our time, says about the 1873 Depression:
      “Orthodox economic historians have long complained about the “great depression” that is supposed to have struck the United States in the panic of 1873 and lasted for an unprecedented six years, until 1879. Much of this stagnation is supposed to have been caused by a monetary contraction leading to the resumption of specie payments in 1879. Yet what sort of “depression” is it which saw an extraordinarily large expansion of industry, of railroads, of physical output, of net national product, or real per capita income? As Friedman and Schwartz admit, the decade from 1869 to 1879 saw a 3-percent-perannum increase in money national product, an outstanding real national product growth of 6.8 percent per year in this period, and a phenomenal rise of 4.5 percent per year in real product per capita. Even the alleged “monetary contraction” never took place, the money supply increasing by 2.7 percent per year in this period. From 1873 through 1878, before another spurt of monetary expansion, the total supply of bank money rose from $1.964 billion to $2.221 billion—a rise of 13.1 percent or 2.6 percent per year. In short, a modest but definite rise, and scarcely a contraction”.
      “It should be clear, then, that the “great depression” of the 1870s is merely a myth—a myth brought about by misinterpretation of the fact that prices in general fell sharply during the entire period. Indeed they fell from the end of the Civil War until 1879. Friedman and Schwartz estimated that prices in general fell from 1869 to 1879 by 3.8 percent per annum. Unfortunately, most historians and economists are conditioned to believe that steadily and sharply falling prices must result in depression: hence their amazement at the obvious prosperity and economic growth during this era. For they have overlooked the fact that in the natural course of events, when government and the banking system do not increase the money supply very rapidly, freemarket capitalism will result in an increase of production and economic growth so great as to swamp the increase of money supply. Prices will fall, and the consequences will be not depression or stagnation, but prosperity (since costs are falling, too) economic growth, and the spread of the increased living standard to all the consumers”.

      • KG

        We already KNOW that the ‘Robber Barons’ were getting rich, but what about the average American worker during that time?

        It seems you always forget what the working people are doing. During the Depression, there were many rich people who did well despite the economic turmoil being experienced by the common worker.

        Prosperity at the top DOES NOT make a ‘good economy’.

        • TheOriginalDaveH

          The Propagandist KGB spews more of his nonsense.
          About the “Robber Barons”:

          Unfortunately, most people can’t or won’t discriminate between those Crony Capitalists who get special aid from their Crony Politicians and those Market Capitalists who concentrate on pleasing their consumers. And KGB would like to keep it that way. KGB and his comrades need people to be ignorant so they can feather their own nests at the expense of everybody else.

          • KG

            Crony Capitalists = bad

            Market Capitalists = good

            quote: …concentrate on pleasing their consumers.

            Capitalists only want two kinds of contracts. Government contracts and BIG Government contracts. Ultimately, their ‘customers’ are the voting public. Does contracting for certain services imply ‘special aid’ because it’s OUR government doing the contracting? And if a community wants to keep its citizens standard of living, then what’s wrong with Unions doing the work? Much of those wages would be spent in that community, so a general improvement of the economy should be the result.

            In the Union, the Business Manager says “Politics=Jobs”. Politics is a dirty world, but it’s like that old joke about the gambler. ‘Yea, I know their crooked, but its the only casino in town!” It’s through the social institutions that Man has invented that we do business with each other. The key is to make as much support for your side as you can. You can do like yous guys do by lying and innuendo, or showing the positive effect that better wages and working conditions can have on your community.

          • TheOriginalDaveH

            You make no sense, KGB.
            KGB says — “And if a community wants to keep its citizens standard of living, then what’s wrong with Unions doing the work?”.
            What’s wrong with it? The Unionists want more than their Free Market worth for their services, so of course somebody else must suffer for that excess, and that somebody else is the other people in the community. Everybody else must suffer so the Unionist can live high.

            KGB says — “Much of those wages would be spent in that community”.
            That money would still be extant in the community whether the unproductive Unionists take it with their above-market wages, or the rest of the community pays less for their Non-Union goods which were produced by productive people.

            KGB says — “You can do like yous guys do by lying and innuendo, or showing the positive effect that better wages and working conditions can have on your community”.
            You’re the liar, KGB. I’ve proved that time and again.
            Raising somebody’s wages artificially by Force does not improve an economy. All the paper money in the world is worthless if goods and services are scarce to non-existent. The less productive people are (e.g. Unionists), the fewer goods and services there are, so more people must suffer with fewer comforts of life.

    • TheOriginalDaveH

      KGB says — “it’s just as deadly as any Fascist regime of terror every other ‘Austrian School’ has turned into (re. Pinochet’s Chile)”.
      This is a lie that KGB keeps trying to propagate. The “Austrian School of Economics” had nothing to do with Chile’s politics.
      KGB is just a lying Commie Shill.

  • Deerinwater

    The first mistake was investing the time to watch talking heads on television. The second mistake was to believe what you have heard.

    Okay ? So maybe it “BOOMED” at Mitt Romney’s or Warren Buffet’s or Donald Trump’s house ! Good for them.

    What’s that got to do with me and my house? Very little unless I insisted that it to be so.

    Whether you perceive your glass half empty or half full. the perception is the same, differing only in quality of personal comfort manifested by the perception.

    For the person that see their glass as half empty as I sometime do, it’s so nice to have a woman in your life like George Burns did his wonderful Gracie.

    As my Gracie, shoots past me in her 3″ heels on her way out the door and to work one morning , stops and says, ” I get behind as early as possible so I’ve got the rest of the whole day to catch up.”

    Now that is an “attitude” , ~ I’d like to bottle and sell.

    • michiganminuteman

      So instead, you believe everything oblama says along with all his traitorous cronies! Are you really that stupid, or just a card carrying communist hoping to influence some poor shmuck that doesn’t know what you stand for.

      • Deerinwater

        What did I say about Talking heads on TV is it that you failed to understand michiganminuteman?

      • Deerinwater

        I haven’t listen to the President in over a year or so ~ my friend ~ so if you have ~ you have me at a disadvantage. ~ I mostly read ~ and follow the debate on the forums and what people are talking about.. This allows me the time to research the hot topics and not depend on just commentary. ~ but when I was watching some TV , ~ I found myself being 24 to 48 hours ahead of most TV news cycles events and sometime months on some happening and topics. ~ The PC is much like a musical instrument, ~ the more you engage it, the clearer and sweeter the music.

        I don’t have time for TV, ~ even if you could cut out all the commercials, plus TV news is so repetitious, ~ If you have the time to burn watching TV ~ I’m proud for your achievement to enjoy such a luxury of “time”.

        I just don’t have it and wouldn’t if I did.

    • Vis Fac

      I too had my boom OK more like a bang but I did have one. Years of planning sacrifice and hard work paid dividends to me and my family so we are set for the long haul.

      Those who continually carp have done nothing to secure their futures. Sadly the 47%+ will be waiting till doomsday for their golden parachute for they neither wish to work but haven’t the necessary tools Liberal one dimensional idiot-ology has put the kibosh on any of your hope

      Liberal one dimensional idiot-ology allows them to dance without having to pay the fiddler

      By failing to prepare, you are preparing to fail. Benjamin Franklin

      He that is good for making excuses is seldom good for anything else.
      Benjamin Franklin

      Opportunity is missed by most people because it is dressed in overalls and looks like work. Thomas Edison

      The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo

      Libertas inaestimabilis res est

      • Deerinwater

        i’m proud for your success RECON. ~ where it a boom or bang. ~ mine was more of a pop! ~ well maybe a hiccup really, ~ I found I could save money on car insurance with Geico. ~ and ~ finding out that no more hair than I had, I could cut it myself and save a ton of money over whats left of a lifetime.

        But ~ Who’s dancing? ~ I’ve come to consider that the majority of the posters here are using the term “Liberal” in more of a metaphor fashion which basically mean’s “Unlike me”.

        There are many people “unlike me” and “unlike you” , ~ and some of them are neither Liberals or Conservatives. ~ a lot of people actually. ~

        They are just “out there” and not engaged in the process or the debate. ~They could care less! AND Like you, they have realized ~ control, if they actually had some, is still a “crap shoot” and there are no guarantees. People get into office and fail to deliver on promises made to you ~ only later do we find out they made promises to other’s as well.

        Finding their time best spent minding their own business, they are doing all sorts of things, working in the mills, shops and factories and hoping for better times and that the sweat of their efforts might pay off.

        Some sleep by day and steal us blind by night. ~ They are not Liberal, just thieves. Some are selling drugs , some are manufacturing drugs. Some are selling their bodies or preform acts strange and unusual. They are not Liberal, but just criminals or people with their backs to the wall and no where to run and no where to hide,

        ~ Are Black Markets an exclusive among “Liberals only”? I don’t think so.

        Was Bennie Madoff a liberal? ~ Is the guy behind bars doing time for embellishment or beating his wife to death a liberal? ~ Since he’s not like us, ~ maybe he is?

        Is everyone that’s on unemployment or that belongs to a union now or at one time, a “Liberal” ? ~ Is everyone that is on assisted living or getting food stamps a Liberal?

        Is everyone that used the GI bill to purchase their house, or the student that used a Federal grant a Liberal? ~ Are all government workers Liberals?

        Is everyone that took advantage of some Federal Housing program or enjoyed employment due to Federal incentives a Liberal? ~ If I bought a car with the “Cash for Clunkers” program does that make me a Liberal?

        What about all the employee’s of Government programs, like the construction of the B 1 Bomber or the Raptor or NASA , or CIA, FBI, CDC, NSA, are they Liberals too?

        Are all the Liberal “dancing” or does “just the desire” to dance make one a liberal?

        My desire to dance, has all but left me several years ago ~ unable to dance as a Liberal ~by simple deduction of the right /left metaphor ~ I must then be a conservative. ~Yea Me!

        Do any of you have any clue just how tiring it getting to hear this Liberal crap day in and day out, ~ for years? and there is no sign of it letting up ~ as far as I can tell. ~ Not until you have installed a MItt Romney in the first chair position will it even slow down.

        How about some focus and narrow your target some if you ever expect to hit a valid target. ~ You can’t make half of the population to just magically disappear or ignore that they exist, Hitler couldn’t do it, and you can’t either, try as you may.

        Even if you narrowed the population to just Christian’s (Conservative ones) ~ the lacking of any opposition ,people would find something unflattering with the Methodist or Baptist or Pentecostal and the fight would start all over again. The labeling and name calling would rule the day, ~ they would fight over baptism and the reason for it, or how it should be preformed ~ they would fight and kill each other over what it takes to be a good Christian or who didn’t tithe enough or who was getting too much attention or too little.

        Without the word “Liberal” ~ you people would be speechless and unable to complete a sentence.

        • Vis Fac

          I have another word or two Indolent and lethargic will these suffice? How about those who refuse to do for themselves those 47%?

          I am irritated by those who don’t think for themselves and let the media or government speak for them then spread these tidbits of propaganda out as their own.

          I get irritated when people who are less than holy adopt a holier than thou attitude and dictate what-how-when I or others should do or as they bid.

          I get irritated with people who will gladly stand by and watch this nation implode and cheer as it occurs. Those who would cede their rights for “perceived” comfort or safety and dictate others do likewise.

          I get irritated with those who shirk personal responsibility are amoral, prevaricate, and defame our creator.

          I laud those who embrace responsibility and morality I laud those who care enough for this nation that they sacrifice the time to defend it. I laud those who embrace and defend our Constitution.

          I am neither a conservative or a liberal I am a patriot who loves my adopted country. Those who were born into this oasis of the world take for granted what we have been blessed with are too quick to give it all away because you were not the ones who paid for it.

          Just like the national debt and deficit you are not the ones who will pay for it rest assured your offspring will.

          Libertas inaestimabilis res est

  • http://batman-news.com Jim B

    There is so much government damage in the wake of the past century that reversing, or even attempting to turn the ship around, is going to be monumental, and dam near impossible given that they have accumulated debt of 17 TRILLION dollars (soon to have a depth of nearly 20 TRILLION). I suspect that there will be separation of states before this is over with, and individual states governments will have to fight for legitimacy after city after city goes bankrupt, and is thrown into economic poverty. Placing all hopes on one man was a complete failure to the tune of 7 TRILLION additional government debt in just 4 years, continuing this line of thinking will end this country. Only a fool believes that a one man can solve the unsolvable in a 4 year term, or by adding an additional 4, which history has proven is often a huge mistake, something we will experience once again with devastating affects! The country has never been in such dire need of an enema as it does right now. It’s time to flush excrement out of the pips, smash the money printing presses, and evict the government bureaucracy that is strangling this country.

    • KG

      Maybe our President could re-establish precedent by being re-elected and serve another term so as to establish Americas long-term economic health.

      • red neck

        Are you crazy?… never mind I know you are…. with 4 years of this Kenyan this country has sunk to an all time low.

      • FreedomFighter

        The next term Oblamer serves will be one in prison. Earned that one with Bengazi..more we don’t yet know about is my bet.
        Laus DeoSemper FI

      • michiganminuteman

        KG, I’m going to be nice and just say “Oh KG, your just trying to get a rise out of someone aren’t you, you jokester”.

      • Bill

        Too much time on your hands? Small town, not much too do?
        What is going to happen when the funds run out to pay you for sitting on your butt

        • http://www.rt.com Alondra

          For the 47-year old parasite it doesn’t matter in what size of town to masturbate his evil.

          • Bill

            Hi Alondra,
            Pay no attention to KG. He has nothing to do but try and get a reaction out of people. He first touted himself as a communist and now he backtracks. Nothing he says is based upon any independent thought, it is all political rhetoric, said for shock value. He is a joke

      • http://www.rt.com Alondra

        In Hell he will “serve” you “another term”.

      • Barakolips

        Way to stir the pot dimwit, only fools would even give you a reply to that nonsense, the only long term health that will occur is with every one of your socialist friends removed from office permanently. I guess Im a fool for even replying to you but you do know that a third term is not possible. Try again, I know you get a kick out of every angry response you create by your baiting.

      • rwm44

        KGB you appear to be the only troll out today thank your mom for coming to the basement and waking you up this morning

        • Vis Fac

          KGB has no mom he was a lab experiment conducted by the DUMBOCRITES intention of cloning an army of morons. However since the public school system is far more costly and inefficient liberals chose to go that route!!!

          Libertas inaestimabilis res est

      • Vigilant

        Your disdain for the Constitution is duly noted.

        • KG

          The only disdain I have is for an amendment that was passed so the ghost of FDR could never run for president again. Like the disdain you have for the Federal Reserve Act of 1913, the only difference being that the Fed act was passed to help prevent the failure of Capitalism. The 22nd Amendment only took away the right for people to vote for whom they wanted to.

          • Vis Fac

            The federal reserve act was passed to create crony capitalism to benefit the select few. You do know what crony capitalism is after all you are a self admitted KEFT That said you should conduct further research prior to your continued exhibition of stupidity.


            Libertas inaestimabilis res est

          • KG

            Tell me, what is ‘crony capitalism’? I understand it to be an ‘ole Boys network’ like the Defense Industry in America. Or the MDA.

          • TheOriginalDaveH

            Or like Unionism.

          • KG

            Noam Chomsky has argued that the word “crony” is superfluous when describing capitalism. Which is the way I understand it as well. It would seem that as a Conservative you support ‘crony-ism’ much more than you would let us believe. I know your ‘libertarian’ mythos as an ‘underdog’ makes you feel like a revolutionary, but the reality is your just a sad sack who’s too deluded to see what a pitiful position you support.

          • TheOriginalDaveH

            The “superflous” word in the phrase Crony Capitalist is Capitalist. Real Capitalists operate in Free Markets without the cover of Crony Politicians.
            No, KGB, the reality is that you are a commie Shill who is promoting a system that has been proven to be a failure and under which only Leaders can prosper.
            How do you sleep at night knowing how Evil you are?

          • TheOriginalDaveH
        • TheOriginalDaveH

          His disdain for reality is also noted.

      • Ried

        hahahahahahahaha!! Very funny, KG!

      • http://batman-news.com samurai

        Not as long as there is the 22nd Amendment KG. Neeeeed to reread the Constitution. Our economic health? I don’t know what you have been smoking, but I think it is about time to quit. Here are some articles about Obama bin Laden’s terrorist friends, his FBI, and what they are doing to Christians in the Middle East.
        Here is the one about Christians. I’m sure you and your ilk would applaud such murderous actions.
        Looks like your fearless leader’s friends think the same as he does. But alas! All you socialists, communists do. FOR GOD AND COUNTRY! 하나님하고 나라를 위해서!
        You need both love of country and faith in GOD to be a patriot. This leaves you out.
        “Bibles are strong protections. Where they abound, men cannot pursue wicked courses and at the same time enjoy quiet conscience.”
        James McHenry

    • dan

      …man the lifeboats…she’s going down….
      but the greedy’elite’ are busy stealing , smashing and burning so that only they survive

    • Wellarmed

      Agreed Jim B,
      Our Country was not saddled with the inflation adjusted equivalent of 20 TRILLION dollars in 1929. Imagine if that was the circumstance then, and how the outcome would have looked. And the 20T number is just what shows on the books. The real figure would make your head spin.

      At the last presidential election I cast a vote for former NM Governor Johnson not because I agreed with all of his positions, but because he was the only candidate that knew how dire a situation our country is in. The suggestions he made were large and systemic. We are not Greece, as what we have coming will be far worse than Greece has ever had to deal with. Austerity is coming to the US of A and it will hit us like a freight train.

      Those chickenhawks who will not face reality when it comes to US defense spending ( our largest portion of the US budget ) will get a rude awakening when the wheels come off of this thing. They are worried about Americas military looking weak in the eyes of the world, when what they should really be concerned with is Americas true weakness when she has defaulted on a 27 TRILLION dollar debt (ten year projection).

      The figures that I look for are the durable goods orders, and the interest paid on debt service. Everything else is utter BS.

    • TheOriginalDaveH

      In fact, Jim, no man or men can decide what’s best for the rest of us. Only Free Markets can come close to satisfying a diverse population of people. The only way we can ever hope for Peace again is to shrink the Leviathan State dramatically.

    • Vis Fac

      But he talks a good talk. After all DUMBOCRITES know how to run a Country Business and everyone’s life not necessarily in that order!!

      Libertas inaestimabilis res est

  • red neck

    obama-care will be the next cause of collapse in the economy with the United States now a part-time working nation not to mention the millions of jobs that will soon be lost because of this unconstitutional “law”.

    • Deerinwater

      That’s what they said about medicare, ~ Guess it could still happen?

      There was this man that rode on this same divers bus route for months that habitually snapped his fingers constantly from the time he boarded until the time he got off. ~ After a month of observing this behavior the driver felt inclined to get to know this passenger and ask him why he snapper his fingers.

      The passenger said, “It keeps the elephants away.” Oh ! I see, but ~ you know that there are no elephants around here for miles don’t you?”

      The passenger responded, “Yea , I’m amazed myself as to just how well it works”

      So yea, so offering a system that provided medical for more American’s like the rest of the civilized world does, “might break us”, if we continually to invest 5 to 1 in military matter. So that is why, Americans have been asked to accept some responsibility for their own health care to avoid the possibility.

      If this will work for certain, who’s to say? Clearly nothing can work without the element of cooperation by both citizens and care provides.

      But if nothing is done ~ how might it improve the conditions we had, when Insurance companies could write policies not worth the paper they were printed on? ~ where the insured could be dropped without warning, where the insured find themselves having to hire attorneys to get companies to honor claims. Where anyone seeking insurance coverage could be systematically denied coverage for any reason. Where the cost of insurance coverage had risen 300% in 20 years. Where hospitals ER had became a battle ground for the uninsured and financed by local taxes.

      Is “Status Quo” really that great and to be defended at all cost?

      • TheOriginalDaveH

        There used to be a simple solution, Deer — Self-insure.
        Now, thanks to Obamacare, we have no choice.

        • JeffH

          Gee, I just got my 2014 Aetna Medicare HMO changes and my out of pocket limit for 2014 is 2-1/2 times more than 2013 not to mention other increases in my co-pays.
          Go figure?

          • TheOriginalDaveH

            Beware of Greeks bearing gifts.

          • Deerinwater

            did you have to change it?

          • JeffH

            No, those are the changes in my plan for 2014 if I continue with the plan. I will be looking at, and evaluating, other plans within my area.

    • http://batman-news.com samurai

      Well said and keep up the good fight fellow patriot. Here is an article that deals with Obama bin Laden Care.


      Here is one about Obama bin Laden and his unconstitutional gun control.


      Here is one about why Obama bin Laden and Hitlery Clinton were not part of the Benghazi investigation.


      FOR GOD AND COUNTRY! 하나님하고 나라를 위해서!
      You need both love of country and faith in GOD to be a patriot.

      “Public utility pleads most forcibly for the general distribuion of the Holy Scriptures. Without the Bible, in vain do we increase penal laws and draw entrenchments around our institutions.”

      James McHenry
      Revolutionary officer
      Signer of the Constitution
      Ratifier of the Constitution
      Secretary of War under President Washington and Adams
      Devout Christian

  • dan

    i’m thinking that Barrycare will cause an up-rising about the time people figure out that revloution is the only full time job and the deficit has been financed from their retirement savings.

  • http://www.rt.com Alondra

    Just look at this pretty smile.
    While Al-Kerry prepares the nation for the third war, barry goes to party.
    Do not be mad at boy. He needs relaxation after golf.

    • lakeside227

      My EYES, my EYES….

      • http://www.rt.com Alondra

        It’s his LIFE, his LIFE ……..

  • 1baronrichsnot1

    Mr. Hollenbeck is right on, done correctly (taking our lumps earlier) the economy would now be in better shape. The debt bubble would have been reduced to manageable levels, our currency would be more viable, our debt would be lower, and real gdp not propped up by the fed would be at least what it is now!~ You see, the fed is pumping in 1 trillion a year still, and we should get at least 3% out of that, but we are recieving an anemic 1.6%, not enough to create a job or anything else, we can’t even stay up with the birth rate because the gov’t is stealing to much. Part time hamburger flipping for a college grad? Pathetic! We need smarter people to handle this economy. We need to drop kensian econ. management, shrink gov’t, fire instead of hire gmen, It wont work this time, last depression it ended when the gov’t hired all the unemployed, created industrial base and during WW2 it worked, we were the only country that had industrial machinery, the rest was blown to smithereens, We need someone like Ted Cruz,(summa cum laude from both colleges he attended) master economics, and harvard law school. You know the one obama calls stupid, the one some (R)’s call stupid, wrinkly old demented farts, who call 12 million tea party members anarcist? Our gov’t is so big, it could shrink 1/2 and still be to large, No, they aren’t anarchist, they are physical conservatives! Leadership matters!

    • ChuckS123

      The gov is like an 800 lb man. The libs want to spend $ billions to buy him french fries so he doesn’t starve. Conservatives say he should loose a little weight. Not enough people say he should loose a lot of weight.

      • lakeside227

        Dems & repubs aren’t that different. Both the parties want big government and taxes – they differ ONLY in which PART of government is big and a SLIGHT difference in tax amounts.

        • Deerinwater

          Right ! while only one admits it!

        • Vigilant

          I wouldn’t be too quick to lump them together. Not one Republican in either chamber voted for Obamacare in 2009-10. And if we had no Republicans and a very few smart Democrats in the Senate, that body would speedily approve the UN Small Arms Treaty as soon as Kerry signs it.

          • lakeside227

            They are only different in what part of government they want to grow; pubs want SLIGHTLY less taxes; pubs cherry pick the Constitution just like the dems do.

            There is no difference in the parties – neither party is interested in the People. You can choose to believe they are different based on one or two ‘champion causes’ – but they aren’t. They both want control over us, money, power, and influence. They BOTH violate the Constitution and their oaths. Both parties are controlled by money and NOT the People.

          • Vigilant

            Read my posting again, this time with comprehension.

            Don’t throw out the baby with the bathwater.

          • lakeside227

            Condescension much?

            It seems you didn’t comprehend MY comment.

            Not voting for obamacare and supporting the 2nd Amendment, does NOT make the republican PARTY different from the democrat PARTY. They still BOTH cherry pick which part of the Constitution they want to support; they BOTH are concerned with money, power, influence, and CONTROL; NEITHER PARTY is FOR THE PEOPLE.

          • Vigilant

            “Not voting for obamacare and supporting the 2nd Amendment, does NOT make the republican PARTY different from the democrat PARTY.”
            I beg to differ.

          • JeffH

            They are different in that they have different methods of stealing our money and spending it…and of course doing their best to alter and limit our liberty and freedom.
            With very few exceptions, neither party or party members function in the best interest of the people or the country.

          • lakeside227


            Yes, thank you, exactly.

          • Robert Zraick

            Both parties are big government parties. What we need is less government. We need limited government.
            Look for individuals who want to cut the government down to size and support those individuals.

          • JeffH

            That’s exactly what I look for!

          • Robert Messmer

            Perhaps lakeside227 is referring to McCain beating the war drums saying to hell with the people bomb Syria, Chrisitie saying that he approves of all the illegal spying on American citizens done by the NSA, Graham saying that we need to restrict freedom of speech. All pubs, all against the People.

          • Vigilant

            When you grow up, learn the meaning of “RINO.”

          • Robert Messmer

            Yes they are RINO but part of RINO is still Republican. As much as we may hate and disclaim they, they still parade under the label of Republican.

        • Vis Fac

          Republicans believe every day is the Fourth of July, but the democrats believe every day is April 15. — Ronald Reagan

          I have yet to meet a democrat who didn’t want to put his hand in my pocket

          Liberal one dimensional idiot-ology allows them to dance
          without having to pay the fiddler.

          Libertas inaestimabilis res est

          • lakeside227

            Republican and democrat are political parties – they are NOT people. TPTB of BOTH parties want the same things.

            People, please stop identifying with – cramming yourself into a box labeled democrat or republican. Stop being loyal to a POLITICAL PARTY – what have they done for YOU? For our Country?

            Our elected representatives are SUPPOSED to SET ASIDE their PERSONAL opinions and carry out the will of the People. Somehow we have gotten away from electing people who SERVE US and started electing people who think they are to RULE and CONTROL us.

            Stop it, right now! Or I will have to put you all in a time out….maybe even GROUND you all – no internet for anyone! ;)

          • Vis Fac

            The old adage rise as true today as it was coined Birds of a feather flock together. When you adopt a dogma you become the tenet of that dogma and bear allegiance to the group that espouses said dogma.

            I myself do not identify myself as Republican nor Democrat conservative or liberal. I am more independent and adopt a posture of questioning everything. If I had to label myself as anything it would be as a Patriot ascribing to and believing in constitutional law.

            Libertas inaestimabilis res est

          • lakeside227

            “…a Patriot ascribing to and believing in constitutional law.”

            I will agree with that description – except I would take off the word ‘law.’ Constitutional law is based on decisions of the judicial branch. They RARELY conform to the text of the Constitution; the explanations of the Constitution by the Founders; and the understanding of the Constitution by the ratifiers.

            “It is the common fate of the indolent to see their rights become a prey to the active. The condition upon which God hath given liberty to man is eternal vigilance; which condition if he break, servitude is at once the consequence of his crime and the punishment of his guilt.” John Philpot Curran

  • ChuckS123

    After WWII fed spending was cut from $92 billion to $35 billion. Liberals “experts” were expecting a big recession, but there was actually a big boom. Most likely due to money and resources going to the private sector.

    Also, there was a recession in, I think, 1922. President Coolidge didn’t do much of anything about it and it was short-lived.

    • momo

      Actually it was the recession of 1920-21 and the president was Harding, he didn’t do anything despite prodding from Herbert Hoover!

      • TheOriginalDaveH

        Yep. Here’s the long version of the story:

        • Deerinwater

          Here’s a short version; ( After reading it all, it sounds as the US had too much food and the market flooded while money got tight and people went hungry while unemployment soared and soldier came home.)

          >>>The Depression of 1920–21 was an extremely sharp deflationary recession in the United States, shortly after the end of World War I. It lasted from January 1920 to July 1921 a total of 18 months. The extent of the deflation was not only large, but large relative to the accompanying decline in real product.

          The more historically illiterate often describe it as the “depression you’ve never heard of,” “the forgotten depression,” or “the often-overlooked depression.” Usually, some comment about dirty liberals keeping it out of history textbooks follows, with an admonition to read some “real” history.

          So why does this not prove the wingnuts’ point in any way whatsoever?

          Milton Friedman and Anna Schwartz’s Monetary History pins the blame on the Fed’s overreaction to post-World War I inflation. It raised interest rates to new heights that put a massive deflationary pressure on the economy. ( In response to post-World War I inflation the Federal Reserve Bank of New York began raising interest rates sharply. In December 1919 the rate was raised from 4.75% to 5%. A month later it was raised to 6% and in June 1920 it was raised to 7% (the highest interest rates of any period except the 1970s and early 1980s).)

          There was also a general glut of agricultural products at the time as rations were no longer being sent overseas to troops in Europe. This would have had a big deflationary effect as well.

          The tax cuts and lower tariffs never happened, at least not during the period of 1920-1921. Harding didn’t cut taxes until after the Depression had blown over and never lowered tariffs — in fact, he signed the Fordney-McCumber act in 1922 which raised them.

          Harding wasn’t 100% laissez-faire. While he did cut spending and maintained a balanced budget, he also passed the Farm Acts, a set of new regulations on agriculture. He also gave federal funding to states for public works projects.

          There were no widespread bank failures like there were in 1929 on.

          The depression let up when the Fed started running an expansionary policy.

          It’s a completely cherry-picked example ignorant of economic history. The government did little to nothing through many of the numerous bank panics and depressions of the previous century. The Long Depression included an economic contraction that lasted longer than the one during the Great Depression.

          So, no, the government didn’t “do nothing,” free market magic dust didn’t cure the depression, and it does nothing to prove that the New Deal “made the Great Depression worse.” Just more ignorant history from the usual suspects.<<<

          Another short summary and differing points of view worth the read;

          Interpretations of the end

          Some economists and historians argue that the 1921 recession was a necessary market correction, required to engineer the massive realignments required of private business and industry following the end of the War. Historian Thomas Woods argues that President Harding's laissez-faire economic policies during the 1920-21 recession, combined with a coordinated aggressive policy of rapid government downsizing, had a direct influence (mostly through intentional non-influence) on the rapid and widespread private-sector recovery. Woods argued that, as there existed massive distortions in private markets due to government economic influence related to World War I, an equally massive "correction" to the distortions needed to occur as quickly as possible to realign investment and consumption with the new peace-time economic environment.

          Daniel Kuehn's recent research calls into question many of the assertions Woods makes about the 1920-21 recession. Kuehn argues that the most substantial downsizing of government was attributable to the Wilson administration, and occurred well before the onset of the 1920-21 recession. Kuehn notes that the Harding administration raised revenues in 1921 by expanding the tax base considerably at the same time that it lowered rates. Kuehn also argues that Woods underemphasizes the role the monetary stimulus played in reviving the depressed economy and that, since the 1920-21 recession was not characterized by a deficiency in aggregate demand, fiscal stimulus was unwarranted.

          Economist Paul Krugman, who is critical of the Austrian interpretation, notes that the monetary base expanded significantly from 1922-1925, and that this expansion was accompanied by a reduction in commercial paper rates. Allan Meltzer suggests that deflation and the flight of gold from hyper-inflationary Europe to the U.S. also contributed to the rising real money stock and economic recovery.

          The Fordney–McCumber Tariff of 1922 was a law that raised American tariffs on many imported goods in order to protect factories and farms.

          The Emergency Tariff of 1921 a temporary measure to ease the plight of farmers until a better solution could be put into place. With growing unrest in the American public, President Warren G. Harding and Congress passed the tariff. The Emergency Tariff increased rates on wheat, sugar, meat, wool and other agricultural products brought into the United States from foreign nations, which provided protection for domestic producers

          Capper–Volstead Act the Co-operative Marketing Associations Act was adopted by the United States Congress on February 18, 1922. It gave “associations” of persons producing agricultural products certain exemptions from antitrust laws. It is sometimes called the Magna Carta of Cooperation.

          The Grain Futures Act, federal law enacted September 21, 1922 involving the regulation of trading in certain commodity futures, and causing the establishment of the Grain Futures Administration, a predecessor organization to the 1982 Commodity Futures Trading Commission.

          • TheOriginalDaveH

            Note to those who would buy into Deer’s treatment of the 1920 Depression — Paul Krugman is a Court Economist who is paid by Government to confuse the ignorant public so they are unaware of how Big Government and the Federal Reserve are taking advantage of the rest of us.
            If indeed Big Government was capable of creating good economies, you merely need to ask yourself — “Why, after several years of Trillions of dollars of Government Spending to kick-start the economy, do we still have over 7% unemployment, and a largely part-time work force?”.
            And “Why after the Federal Reserve was created to smooth out the economic bumps, did we have the Great Depression which lasted 12-15 years and witnessed the largest Government interventions in the previous 150 years of our country’s existence?”.

            Read this to get some answers:

    • Deerinwater

      I’m not exactly sure who “Liberal experts” are or what that might detail but with the largest industrial nations on earth all but decimated including their infrastructure by war “except the United States” ~ I would think the that it was anyone guess as to how quickly Europe might bounce back shortly after WWII. ~ While clearly the “Bankers” knew ~ I guess that there are no “Liberal Bankers” experts

      It is the Bankers that decide when to take profits and from whom.

      Bankers really don’t conform to this overly simplified understanding of Left and Right that they use to amuse and amaze to divert your attention as they control both.

      • Carlos

        Deerinwater, It looks like our Wizard of Oz (Barry) fits the scenario, the screen is the teleprompter, his stimulus is fiat money, little more to say. The outcome will be the same.

        Haven’t seen the video before, I didn’t watch the whole thing, too long, but, got the drift.

        • Deerinwater

          Oh yes ~ it’s very long ~ I took a week ~ to view it ~ went back and reviewed parts several time.

          It’s something like an hour and 40 minutes from the start that they drop the bomb ~ a nugget of information that really puts things into perspective and the wizard behind the curtain is revealed .

          I don’t see how the President has much control over it ~ the president(s) that have tried have met to a bad end.

          That too is in the documentary.

        • http://batman-news.com samurai

          Well said and keep up the good fight fellow patriot. Yes, this is the Land of Oz. Obama bin Laden is the wizard, Pelosi is the Wicked Witch of the West, Boxer, Hitlery, Waters, Reid, Holder, etc., are the winged monkeys. Sarah Palin is Dorothy, Boehner is the lion, Rand Paul is the scarecrow, and Ted Cruz is the tin woodsman. Here is an article explaining how George Soros is attacking Christians in his website. Foolish little man.
          Here is an article explaining that the D.C. Navy Shipyard shooter was a radical Muslim.
          Here is a video from MSNBC showing that a Texas congressman refuses to say Obama bin Laden was legitimately elected. This man shows patience and intestinal fortitude. Good signs in a leader.
          FOR GOD AND COUNTRY! 하나님하고 나라를 위해서!
          You need both love of country and faith in GOD to be a patriot.
          “I give and bequeath my soul to Almighty God that gave it me, hoping that through the meritorious death and passion of our Savior and Redeemer Jesus Christ to receive absolution and remission for all my sins.”
          George Mason
          Delegate of the Constitutional Convention
          “Father of the Bill of Rights”
          Devout Christian

    • KG

      Hey Idiot! What happened AFTER WW2? THE COLD WAR. So, in effect, the Government never stopped spending money on war. Especially after 29 August 1949 the ‘Uncle Joe” explosion that confirmed the Soviet Union of having Nuclear weapons.

      Use your head for something more than a hat rack!

      • ChuckS123

        Fed spending was at a much lower level in the cold war. Fed spending didn’t rise to $ 92 billion again until 1959, and with inflation and population growth, it still wasn’t the same.

        I’m pretty sure that $ 92 bill was a lower % of the GDP in 1959.

  • http://seekingalpha.com/article/1514632 lottopol

    ‘..It is not just a coincidence that tax cuts for the rich have
    preceded both the 1929 and 2007 depressions. The Revenue acts of 1926 and 1928
    worked exactly as the Republican Congresses that pushed them through promised.
    The dramatic reductions in taxes on the upper income brackets and estates of
    the wealthy did indeed result in increases in savings and investment. However,
    overinvestment (by 1929 there were over 600 automobile manufacturing companies
    in the USA)
    caused the depression that made the rich, and most everyone else, ultimately
    much poorer.

    Since 1969 there has been a tremendous shift in the tax
    burdens away from the rich on onto the middle class. Corporate income tax
    receipts, whose incidence falls entirely on the owners of corporations, were 4%
    of GDP then and are now less than 1%. During that same period, payroll tax
    rates as percent of GDP have increased dramatically. The overinvestment problem
    caused by the reduction in taxes on the wealthy is exacerbated by the increased
    tax burden on the middle class. While overinvestment creates more factories,
    housing and shopping centers; higher payroll taxes reduces the purchasing power
    of middle-class consumers….”