Deja vu...all over agian

[Peter_Puget]

[video:youtube]http://www.youtube.com/watch?v=99Dzdc1H0wM

[prole]

You're 180 degrees ass-backwards, as usual.

[STP]

Looks like the title of that video was changed from 'Keynesian Propaganda' to 'Vintage pro-inflation propaganda' (also read the notes accompanying the video at the utube page).

 

See this:

FDR's policies prolonged Depression by 7 years, UCLA economists calculate

 

And check out the graphs here: Was the Great Depression a monetary phenomenon?

 

And read the words by Anna Schwartz, the coauthor with Milton Friedman of "A Monetary History of the United States".

 

For instance:

Ms. Schwartz won't say so, but this is the dirty little secret that led Secretary Paulson to shift from buying bank assets to recapitalizing them directly, as the Treasury did this week. But in doing so, he's shifted from trying to save the banking system to trying to save banks. These are not, Ms. Schwartz argues, the same thing. In fact, by keeping otherwise insolvent banks afloat, the Federal Reserve and the Treasury have actually prolonged the crisis. "They should not be recapitalizing firms that should be shut down."

 

 

How did we get into this mess in the first place? As in the 1920s, the current "disturbance" started with a "mania." But manias always have a cause. "If you investigate individually the manias that the market has so dubbed over the years, in every case, it was expansive monetary policy that generated the boom in an asset.

 

"The particular asset varied from one boom to another. But the basic underlying propagator was too-easy monetary policy and too-low interest rates that induced ordinary people to say, well, it's so cheap to acquire whatever is the object of desire in an asset boom, and go ahead and acquire that object. And then of course if monetary policy tightens, the boom collapses."

 

 

Conclusions?

[Off_White]

And here I thought this was about the proposed strip club near Safeco Field...

[ashw_justin]

Haha yessa massa, we gonna work harder than evah sah, can't afford anything no more seeing as they keep printing all that extra moneh! Sho don't wanna be lef behind, fire gotta keep on burnin, bigga and bigga now...

[Peter_Puget]

OW – speaking of the Déjà vu….many years ago I received a phone call from a recruiter inquiring if I would be interested in a position as Controller for an entertainment company. Turns out it was for a bunch of strip clubs. I declined and the recruiter replied that she understood as there wouldn’t be any significant accounting/finance issues because it was pretty much a cash business. I agreed saying I was looking for a bigger challenge.

 

OK one more strip club story…..one evening at the old Vertical Club we discovered an occasional gym rat was getting married the next week. So soon we were all headed off to a strip joint. After a few beers we walked into the strip joint and a cute little number is slipped some cash and gives the soon to be newly wed a little dance. As they (the stripper and soon to be newly wed) talk they realize that they recognized each other. Turns out she was Vertical Club gym rat too!

 

[STP]

Ok, do you want to see something freaky?

 

Look at the graph here: Graph of monetary base, 1920's to 2008

 

Here's the source: Humpty Dumpty On Inflation

 

Also check out the other graph on the page that illustrates the monetary base.

 

"The basic tool for the manipulation of reality is the manipulation of words. If you can control the meaning of words, you can control the people who must use the words."

--Philip K. Dick

 

Lynchian Deja Vu

[video:youtube]7Pdd9VBSoag