Re: causes of the depression

On 30 Apr, 07:15, Ron Peterson <r...@[EMAIL PROTECTED]
> wrote:
> On Apr 29, 4:53=A0pm, orangata...@[EMAIL PROTECTED]
 wrote:
>
> > So, the cause of this depression and just about all other recessions,
> > depressions and downturns are the banks inflating and restricting
> > credit.
>
> It's so hard to believe that a single factor could be the cause of
> recessions.
>
> Why isn't land taxation the key factor in the cause of recessions.
>
> Or in the current case, why isn't it the Iraq war?
>
> --
> =A0 =A0 Ron


It has long been recognised that deflation is the main cause of
recessions and depressions. In 1877 the US silver commission described
deflation in this way

"An increasing value of money and falling prices have been and are
more fruitful of human misery than war, pestilence, or famine. They
have wrought more injustice than all the bad laws which were ever
enacted."

http://ia360939.us.archive.org/1/items/re****tsofsilverc00unit/re****tsofsilve=
rc00unit_djvu.txt

Friedman agreed with this sentiment when he said he knew of no
recession in history that was not accompanied by a contraction in the
money supply.

the only thing I can think of (economically) that is worse than
deflation is hyperinflation.

-----------------------------------------

"We should be prepared to renounce the British monetary system which
is fitted alone for that field. Its basis is robbery of the weak and
barter with the strong; its means are a monetary system entirely
subjected to the  bankers and foreign merchants of London; its aim is
the elevation of this sordid and cynical class to the owner****p and
government of the earth. We Americans want no more of it! We demand
that the Government shall resume the control of money. We demand that
silver shall be coined on precisely the samethat silver shall be
coined on precisely the same terms as gold, whatever those may he, and
that both metals shall be subject to Governmental seigniorage; we
demand that the ratio of value in the coins of these metals shall be
as it was before and is yet 1 6 for i of weight; we want no
international treaties nor entanglements on the subject of money."

  A J  Utley, 1899