Hi all In all honesty we need to consider a post capitalism world. http://www.theguardian.com/commentisfree/video/2015/aug/12/paul-mason-capitalism-failing-time-to-panic-video?CMP=fb_us
Kind Regards walker On 13 August 2015 at 17:32, Lennart Thornros <lenn...@thornros.com> wrote: > 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 >> >> >> >> >
