Wow. You dismiss two recessions which dwarf “The Great Recession” with a “so what?” By the way, the manipulation by the federal reserve at least represents the policies of the United States of America. The manipulation of the gold market could be done by the Saudis, the Chinese, or anyone else who decides they hate the United States. The 1873 recession destroyed the greatest empire to ever exist, the British Empire, which ruled over lands which now make up the majority of the population of the Earth. For two decades, the British economy collapsed, and by the time it regained its foothold, the French, Russians, Ottomans and Germans were vying for global supremacy.
That’s so what.
“The 1873 recession destroyed the greatest empire to ever exist”
Didn’t even hit their peak until 65 years later.
I don’t know enough about the origins of the 1890s depression, but even if it was the second biggest in our history it remains that the boom-bust cycles have higher pitch and greater frequency since 1913. What’s important to know about the gay nineties, also, is that the problem was monetary, and always is.
Gold can be manipated, but not without a cost. There is a cost to fiat manipulation, of course, though less apparent. The thing about gold, though, is that, unlike whatever the government has decided to declare legal tender this week, you have to go get it. That doesn’t mean you can’t inflate and manipulate on top of it, with bank notes, securities, insurance, and whatever else money men fan dream up. But at least it all has to trace back to something.
What people forget is that when we had no central bank it’s not as if there was a free market on money. There were legally minimal fractional reserves, state-chartered banks, elastic laws for banks honoring contracts, various ingeniuos inflationary schemes dreamt up by corporate/ government collusion, government guarantees, and good old fashioned greed, theft, and hysteria.
The thing isn’t gold so much as the free market price system. The best commodity on which to base money and credit which best greases the wheels of commerce is gold, among others, for various reasons. But what’s more important is that government not stick its nose in the money supply, that banking and finance be treated like other ventures, and that inflation be outed by the cold light of day.
“Wow. You dismiss two recessions which dwarf “The Great Recession” with a “so what?””
Yes, because there will always be recessions, no matter what we decide to do. So we shouldn’t let the fear of a speculative recession happening cause us to continue on a course which we know with certainty will lead to calamity.
“By the way, the manipulation by the federal reserve at least represents the policies of the United States of America. The manipulation of the gold market could be done by the Saudis, the Chinese, or anyone else who decides they hate the United States.”
The Fed doesn’t represent our interests. It’s not in my interest, or the interest of most people I know to have a constantly devaluing currency which makes spending our money as soon as we get it the most sensible option. I suppose it’s good for businesses that rely on wanton consumer spending, but for most of us, it’s not a good deal.
As for foreign countries, if we go back to a gold standard, most countries on the world will follow us, either by rebasing their own currencies, or simply because the gold-backed dollar will be their new reserve currency. So, manipulating gold will damage their own economies as much as it damages ours. I’m willing to bet that most will not take the risk, and if some renegades do, well that’s why we have an army and nuclear weapons to protect our interests.
“The 1873 recession destroyed the greatest empire to ever exist, the British Empire, which ruled over lands which now make up the majority of the population of the Earth. For two decades, the British economy collapsed, and by the time it regained its foothold, the French, Russians, Ottomans and Germans were vying for global supremacy.”
Sad for the British, but we’re not an empire, and they shouldn’t have been one in the first place. I don’t shed any tears for the fallen follies of mankind.