No - Craig I did not write that but I think it is correct in a way. Your more in dept series of events is actually supporting the statement as I see it. More important to me is that you actually give good example to how the manipulation for political reasons becomes more important than the economical reality. No body could get money without paying a high interest, which was impossible as it was shortage of income opportunity - so nobody invested so nobody bought more than absolute minimum and nobody invested . . . In the end of the day devaluation took place anyhow. The real irony is of course that as the US dollar dictated the value of other currencies it was no real devaluation or rather everybody devaluated.
Best Regards , Lennart Thornros www.StrategicLeadershipSac.com lenn...@thornros.com +1 916 436 1899 202 Granite Park Court, Lincoln CA 95648 “Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort.” PJM On Thu, Aug 13, 2015 at 7:43 AM, Craig Haynie <cchayniepub...@gmail.com> wrote: > On Thu, 2015-08-13 at 06:11 -0800, Lennart Thornros wrote: > > deflation in 1929 was because people stopped buying goods, buying > > work, to look less indepbted. > > No. Deflation in 1929 - 1933 was due to the Federal Reserve's response > to a gold run. At the time, the US dollar was still considered to be > gold, and the Federal Reserve was charged to ensure that all federal > notes could be honored. They raised interest rates in 1929 to such an > extent that the money supply which had been expanding for the previous > decade, would decline to the point where they could ensure adequate gold > reserves. They continued this policy for 3 years until Roosevelt made it > illegal to own gold under a WWI emergency wartime act, at which point > the gold run was over. However, even after all gold was confiscated, and > three years of a contracting money supply, the US dollar still had to be > devalued with respect its gold reserves from $20 / ounce to $35 / ounce. > The Federal Reserve created a lot of money in the 1920s and much of it > went into the stock market, driving prices to extraordinary levels, > which had not been seen before that period in time. > > Craig > > > >
