Deflation is even more difficult to understand for most people. Kwave winters are brought about by deflation. Unemployment skyrockets and banks fail. It is the bank failures that destroy the illusions of wealth created by the inflation of the Keynesians. The illusion of wealth created by the inflation of money printing (creating money out of thin air) is more easily seen and understood than the inflation that results from the creation of credit out thin of air.
Fractional reserve banking is by far the most difficult scheme of Ponzi finance to understand. First, the cycle plays out over a period of time that was once longer than most people's lifetimes. People are aware that financial markets go up and then they go down as market participants anticipate changes in the economy. History says markets go up two-thirds of the time, and during the declining third, the average decline is thirty-five to fifty percent. But every fifty to seventy-five years, once in a lifetime declines of seventy to ninety percent commonly occur. These once in lifetime declines have been described by some as long wave or K wave winter. Most market participants have found it difficult or very difficult to be a "market timer." There is an old adage among market participants who try to "time the market." Never try to predict a trend change, and the time of the trend change, at the same time.
Almost every Republican knows of Ronald Reagan's Time for Choosing speech of 1964, "We have come to a time for choosing; we will preserve for our children this the last best hope for man on earth, or we will sentence them to take the last step into a thousand years of darkness." When those seventy to ninety percent declines occur, they tend to be global in scope and commonly lead to the disappearance of major nations, particularly democracies as predicted by John Adams, "Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There never was a democracy yet that did not commit suicide." The lifespan of democracies has averaged about two hundred years, three Kwave winters. Many market timers believe the United States was born during a K wave winter, and it is possible that Ronald Reagan was attempting to time and predict trend change at the same time. This article and the website to which it refers are designed to ensure the last part of Reagan's quote, "…history will record with the greatest astonishment that those who had the most to lose did the least to prevent its happening," will hopefully not apply to today's Republican leaders.
Current history is now on Ronald Reagan's side in that the United States could easily be at risk in the approaching K wave winter. And while Ronald Reagan's political achievements seem to have bought some time, it appears that the dichotomy of a dark ages or renaissance could still be in our future. With the benefit of the time bought by Ronald Reagan, a small group has learned from political history and from Austrian economics how it might be possible to engineer a renaissance. This small group believes K wave winter is close at hand and unavoidable. By fostering an American Renaissance, the dark ages can be avoided while paving the way for the rest of the world to follow.
The American Renaissance will be made possible by uniting the Tea Party and other conservative third parties into a coalition that can lead the Republican Party away from socialism and back to free-market capitalism. Most of the details, including the people most suited to leading the effort are spelled out in the website. What Thomas Paine said in 1776 is still true in America today, "We have every opportunity and every encouragement before us, to form the noblest, purest constitution on the face of the earth. We have it in our power to begin the world over again."
Most of the current candidates seeking the Republican nomination have embraced Keynesian thinking and mirror the socialistic thinking of Democrats with regard to the "entitlements." While they won't admit it the majority of Republican officeholders can be thought of or considered as "Democrats-lite." Only Paul, Cain, and maybe Perry have the ability to win while leaning the other way.
For these three, the first step in the right direction “to begin the world all over again,” is to please visit our website at www.freerepublic.com/~vintagefreeper/ which will provide the details of how you and the Koch brothers can launch an American Renaissance.
Ping.
Holy smokes! That was a brilliant piece.
I think you would find that most of them have never heard of the Austrian model. I would be surprised if more than 1% of the country have even heard of it. I just isn't taught. I know that any time I discuss inflation from a government-created-money-out-of-thin-air or debasing point of view I get blank stares, even from so-called professionals (I know a few bankers and commodity managers).
Bravo on this article. I loved the "basic truths of history" in the first half.
Have you considered extending and publishing?
But to accomplish this it seems to me that We the People need to support these ideals and choose politicians who represent these ideals, rather than simply choosing personalities because they say the right things while massaging our egos. That -- IMHO --is the toughest part because most people are easily fooled when it comes to politicians.
ping