No one else will notice it, but we all now know what happened with the Depression and the New Deal.
To start with, everybody now agrees what caused the Depression. The money supply dropped a third . When the money supply is cut, especially to that disastrous extent, you have a depression. I could cause a full depression any time by simply cutting the money supply that much, and everybody knows it.
Roosevelt did increase the money supply by issuing debt. Federal debt is not as good as issuing money, but debt is partially money, it is kept on account so money can circulate.
Hitler just created new money.
But another thing we have learned is that high taxes bring the economy down. That side of the New Deal, raising the income tax to 91% and raising taxes massively, kept he Depression healthy for over a decade, and it might have been permanent without World War II.
That’s IT. That’s the whole mystery of the Great Depression solved.
Reagan showed the economy responds to tax cuts. It used to be “voodoo economics” but not any more.
Obama has proved that the classical New Deal solution to Depression does NOT work. No one is surprised that higher taxes and more regulation has stagnated the depressed economy’s recovery.
What no one notices is that pretty well everybody accepts these realities now.
Please note that the reason I can make this lesson clear is that I am a professional economist who is not writing like a professional economist. I explained that issuing debt is almost like issuing currency, but I could have dedicated a chapter to telling you why that is so.
I could have dedicated a chapter to explaining how the simple money supply is affected by issuing “instruments which increase total liquidity.”
But if I am an economist, I am also, as they say in Alcoholics Anonymous, a “recovering economist.”
I hope I am also a recovering historian and, in general, a Mommy Professor whose disease is in full remission.
#1 by BGLass on 12/08/2010 - 10:21 am
Made me think about it: AA and economics is an interesting juxtaposition as I was reading about the relation of AA to the Oxford group and protestant moral rearmament movement. The Debting Anonymous group spinoffs now are interesting in that they trend toward trying to hit on the internal realities people experience (of dependency, psychological depression, demoralization, etc.) created by the Debting Government.
There seems a sort of growing self-awareness in some people: that who they have to be formulated AS under the Debting Systems of money makes them feel non-human, incapable, and like shit, even as they must profess to feel good.
In a related way, I heard a lecture about all the fake “communities” created by Eleanor Roosevelt in the Depression. Billions spent on creating state-of-the-art towns (like Arthurdale and the “green towns”), these “Skinner-box” towns given to the poorest people she could find to put in them, who were total dependents on the state and wound up (of course) professing to love it, just like people do medicare. All the towns went broke.
Looking at the plans, lol, there is virtually no difference between them and the current “subdivisions” so many people now have to live in, complete with the ‘covenants’ and so on, but with much less REAL community cohesion.
In Arthurdale, which suffered something like 60% “immigration” dumped on it at the time, the previous citizens did bother to demand that witch Eleanor give the state-of-the-art houses only to them and people who looked like them. Today, they would not think to do that, probably, as there is no real community anyway to displace.
Anyway, the whole scene is just like Realtors taking people down roads of empty houses, or roads of houses totally filled by mixed populations, none of whom speak the same language or share anything in common in depth, and the Realtor brightly and without irony exclaiming, ‘I’d love to see you living in this great community!” And the shoppers just grinning back in empty idiocy.
For someone as internally empty as Eleanor, as superficial and inept, a “community” really was a building. In other words, she could not perceive a deeper reality for the poor she had to have groveling at her feet (since the people in her personal life could not stand her, from her husband to her in-laws, one supposes).
So, the governance and economy seems always hellbent on making people exist internally in a way that best fits with their system. One reason we must feel so much guilt, so we can owe and owe and owe. But few people seem to question the obviously counter-productive individual internal reality we have to endure in such systems.
They cannot connect their incapacities, depressions, demoralization, etc., the internal reality they experience—TO THE larger reality. Their insides and outsides are never the same, and it’s as if they simply cannot connect them.
They are told “capitalism is why you feel this way,” (like in colleges they teach that), and the people do not question this at all, but just say “ok,” even if one tells describes a system they don’t even really live in. Bizarre.
#2 by Dick_Whitman on 12/08/2010 - 11:35 am
BGLass writes a lot about community. I like this. We need an economic system that helps create wealth by building community. These communities should be resilient to the shocks of the global economy in which they can provide food, water, energy, and security even in the face of a massive black swan event.
Picture many small sub-system communities making up a larger pro-White system. These smaller communities will benefit from the economies of scale of the larger system as long as they agree to some basic rule sets.
The most important rule set is an agreement that the purpose of life should be to bring out the best in White people. All of society will be built around improving White people mentally, spiritually, intellectually, and physically.
Non-whites will be encouraged to form their own communities and will also benefit from the larger system. Non-whites will for the first time stop being tools of the anti-Whites and will become masters of their own destinies.
My economic vision puts the talents, skills, and creativity of the White race above everything. Unlike the anti-Whites who lie when they claim “people are our greatest resource,” I actually believe this and will build a system that actually proves it.
Remember that the United States owes a lot of money in debt across the world. These people don’t want to see the US turn into a multi-cult hellhole. I would not be surprised if these lenders started putting pro-White stipulations on their loans?
#3 by Simmons on 12/08/2010 - 11:47 am
Well looking at the Fed’s own charts and they are contra to what Bernanke is saying the M1 and M2 the basic charts for currency and stock have shown a leap in the past couple of years.
My best WAG between OPEC and China/Asia they got more green funny money than they know what to do with.
#4 by Dave on 12/08/2010 - 12:14 pm
Robert Whitaker is the best economist we have because he is the only economist who mentions the simple truth: economics is racial.
American real incomes are no longer growing on a per capita basis. This is a permanent condition. The reason for it is that America is no longer a white country.
The fact that American real incomes are no longer growing on a per capita basis has killed the Federal Government’s source of finance.
The result of this is that the never very united United States is slated to become steadily less united.
Political Correctness is reaping what it sowed.
#5 by beefcake on 12/08/2010 - 1:25 pm
Well, while this IS true information, I’m not concerned to much with WHAT is being done with money or debt as I am DNA.
Simply put, we can lose everything else, but if our gene pool is blended out with that of non-whites then all the economic ideas in history really mean nothing.
We can make all the mistakes with money and debt, but so long as we keep our very RACE alive, we can figure out how to solve those things.
Right now there is an attempt at GENOCIDE against our RACE, and that comes firts and center for me.
Back to spreading the mantra far and wide.
#6 by AFKANNow on 12/08/2010 - 7:00 pm
Dave wins First Prize, with Honors.
Everything dervies from Race – pure and simple.
Any student of the History of Economic Thought fully realizes two things:
One, the economic reality is changing faster than the economic theorists can imagine.
Two, only one Race makes new economies – all other Races are stuck in basic barter economies, and can not mve forward from there.
Only one Race actually develops – economically, politically, culturally, in all ways, and does so so quickly the theorists are always playing catch-up ball.
The rest are back at the level of barter, and will never walk Among The Stars.
All the more reason to get off this planet as fast as we can.
#7 by Gator61 on 12/08/2010 - 8:52 pm
I majored in Economics in college. I had a simple trick that allowed me to do well in almost all of my classes with minimal effort. For micro I simply thought of how I would use my money, time or labor and applied what ever the concept or theory to myself. Made everything easy to understand.
For macro I had a little village where everyone specialized and did whatever made them most productive. In my mind international trade was with the next village. Where my village model broke down was unemployment. My village always had full employment. I just could not come up with a reason way everyone would not have a job to do. Even if your job were made bsolete by a new invention or trade with the next village you could always help someone and both of you would have more measure or an enhanced standard of living. It never occurred to me until just now that my my happy little village had full employment because it was all white. They didn’t have outsiders controlling the money supply for their own benefit. Money circulated naturally based on what you did for your neighbors
#8 by Alan B on 12/08/2010 - 8:55 pm
It’s the economy stupid! The left coined this phrase during the Clinton administration (Bill jerked off in the White House sink around that time), the leftwing talk show establishment spits this out to this day to remind the world how brilliant they are.
Today, Chris Mathews the host of Limp Balls was raving mad at the right and Obama for extending the Bust tax cuts. Chris thinks the rich need to pay higher taxes because the middle class is suffering and making do with less.
Mommy Professor and Chris can not offer simple, common sense solutions, they say spread the misery, if the middle class is suffering then so shall the rich, thats progressive and oh so brave to suggest! This reminds me of a Trotsky quote I read where he said how he and others planed to turn Russia into a nation of White Niggers, Trotshy was a brilliant intellectual, just ask Mommy professor or Chris.