Recessions Worse Under Federal Reserve
Notice how the chart at the bottom shows much smoother fluctuation's in the DOW Industrials when we were under the gold standard. Compare that to the top two charts which shows what happens to the market after the Federal Reserve has taken over. The current Federal Reserve Chairman Spending Ben even admits that the central bank caused the Great Depression but promised to not get it wrong again. The chart in the top right is the 1970s. In both cases there were deep plunges in the market due to malinvestment brought about by easy credit. I'd show you the current market graph but the lines are so jagged they do not reproduce well. But go here and take a look. Is this any way to run an economy?
posted by Tomás Estrada-Palma at
3:22 PM
1 Comments:
The reason you will never see a flat line example on an economic chart is because of the destructive nature of free market economics. But destruction is part of creation. When cars were created the buggy whip industry was destroyed. Hence a downturn in the market. But left alone, the people of an economy gravitate naturally to the more profitable productive investments and away from the buggy whip holdings. Then government gets in the way of this natural process and screws up the signals causing malinvestment. So as you can see the government intervention into the economy causes sharp variations, plunges in the market - boom bust. They can't hide from history shown in these charts. They became involved to eliminate fluctuation's in the economy but ended up making them worse.
The sad thing is a free market free of the government's meddling income tax and funny money not back by anything but a pack of liars would work perfect today. With the Internet, information is at our fingertips so we don't require federal regulators or taxulators.
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