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The Great Depression?

Danielle
Posts: 21,330
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8/28/2010 7:47:10 AM
Posted: 6 years ago
To be honest, I didn't really followed what he said. I get that he blames a failure of government (the Federal Reserve) for the Great Depression, but I quote verbatim from 4:10 - 4:48

"Even at the depth of the Depression in 1933, when in the Spring of that year, the Federal Reserve system - which had been established in order to prevent banking panics and keep banks from closing - when the FR system itself closed its doors - when you had a banking holiday for 7 days, and when over the previous 3 years, 1/3 of the banks of this country closed their doors and went broke, because, in my opinion, because of the policies of the Federal Reserve system."

Lol, that is not coherent at all whatsoever. I can't understand what he's saying because it doesn't make a point. Maybe it'll get clearer in the last 5 minutes, but so far what he said seems circular or rather incomplete.
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Danielle
Posts: 21,330
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8/28/2010 8:09:06 AM
Posted: 6 years ago
Ultimately his point is that congress is to blame for inflation (no kidding). They're spending more money on us without raising taxes by devaluing money. That is certainly true, but what is his point here? Is he arguing against the Federal Reserve all-together? Or does he just want better management? Obviously he's a supporter of private business, but it seems he still expects the govt. to be involved and in fact deems the FR necessary (and just needs better insight). That stands contrary to a lot of Libertarian beliefs, no? Anyway I hate the FR all-together. He's right in that it was definitely a huge cause of the GD, to answer comon's question.
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Sieben
Posts: 2,736
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8/28/2010 8:44:49 AM
Posted: 6 years ago
Milton Friedman's monetary theory is flawed... interest rates are essentially the price on future money. Chicagoites oppose price controls on every other commodity, so why do the support price controls via manipulation of interest rates? Austrians consistently oppose all price controls for obvious reasons.

Bob Murphy is a good Austrian economist. See here for the GD
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innomen
Posts: 10,052
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8/28/2010 10:29:00 AM
Posted: 6 years ago
The only time i heard someone say something about the cause that was really honest, not carrying a whole lot of predisposed points of view, was a Harvard economist that said, no one really knows. God forbid someone says "I don't know".
belle
Posts: 4,113
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8/28/2010 5:35:20 PM
Posted: 6 years ago
At 8/28/2010 10:29:00 AM, innomen wrote:
The only time i heard someone say something about the cause that was really honest, not carrying a whole lot of predisposed points of view, was a Harvard economist that said, no one really knows. God forbid someone says "I don't know".

yeah, people have a vested interest in the answer, we should just give up trying to figure it out...
evidently i only come to ddo to avoid doing homework...
comoncents
Posts: 5,647
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8/29/2010 1:32:53 PM
Posted: 6 years ago
Bernanke is particularly interested in the economic and political causes of the Great Depression, on which he has written extensively. Before Bernanke's work, the dominant monetarist theory of the Great Depression was Milton Friedman's view that it had been largely caused by the Federal Reserve's having reduced the money supply. In a speech on Milton Friedman's ninetieth birthday (November 8, 2002), Bernanke said, "Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna [Schwartz, Friedman's coauthor]: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."

http://en.wikipedia.org...