No, absolutely not!
The Fed has done a better job keeping the dollar’s purchasing power stable. The year to year swings are much better than when we were on the gold standard.
We’ve had one deflationary depression since the Federal Reserve was started, and we used to have one every 20 years before the Fed. That was the Great Depression. And it was caused by a young fed tightening money because they thought they needed to emulate the gold standard. Well they did and they brought around a deflationary depression big time.
The Great Recession which occured in 2008, was primarily due to the offshoring. We lowered our import tariffs in the 60’s and have been losing industries at an accelerating pace every since. Trump has vowed to fix this.
No it wasn’t mortgages. Every economic downturn looks like a real estate bubble in hindsight. People lose jobs and can no longer afford the mortgage they qualified for when the economy was good. It was a weakened economy pushed over the edge by rising oil costs and 30 years of neglected and wrongheaded energy policy.
But the point is that over 5 decades of policies that created incentives to offshore production and sell back into the USA, that the economy was weakened to the point where we couldn’t quickly recover from a down turn. The jobs just weren’t there. And we were losing them as fast as we created them.
Who are you trying to kid? The dollar's purchasing power is at best 1/25 of what it was when the Fed first came into being.
>We’ve had one deflationary depression since the Federal Reserve was started, and we used to have one every 20 years before the Fed. That was the Great Depression. And it was caused by a young fed tightening money because they thought they needed to emulate the gold standard. Well they did and they brought around a deflationary depression big time.
Depressions are and always have been debt bubbles. They’re a byproduct of loans with interest and they were first recorded by the Sumerians 3000+ years ago. Incidentally the Sumerians also invented interest on loans and solved the debt bubble problem by having periodic debt jubilees, something that we implemented on a per person basis with bankruptcy.
The cause of the great depression was a huge debt bubble states and federal governments failed to allow the bad debts to be written off until 1946.
Want to avoid depressions? Don’t have loans with interest. Want to break out of our current Japanese style depression? Force the bad debt to be defaulted on quickly to reset the system.
One must remember that the inflation Greenspan was always fighting (unrealized by the populous) was WAGE inflation. Rising interest rates restrict business investment/expansion. Look for the Fed to raise rates to counter Trumps economic progress. Reduction of H1B visas will put Americans back to work as will factories returning to America. Both of these will bring lower unemployment, lower welfare roles, increase tax revenues, etc.
These things while great for America, will put upward pressure on WAGES and SALARIES, hence the need for the Fed to raise rates to counter “inflation” (increased cost of goods sold). This is also why McConnell is dragging his feet on tax reform (another HUGE economic incentive), AND why we see Ryan dragging feet on Obama care Repeal. All of the things President Trump desires are good for America, Americans, and as a result the rest of the world. These things are bad for elitists, globalists, treehuggers, global warmers, despots, dictators, tyrants, etc.
In other words, good for the US, bad for the UN! Go Donald MAGA!
Then why did the FFathers want our currency backed by Gold/Silver, AND Why were they against Central Banking. You need to read “The Creature from Jekyl Island”... heh heh