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You don't need a 'crash' you need a correction to fix all the manipulations of the economy by the federal government. When the federal government subsidizes a p
by curt 15y ago
You don't need a 'crash' you need a correction to fix all the manipulations of the economy by the federal government. When the federal government subsidizes a product (housing, ethanol), taxes/regulates it to an extreme, or spends your money it creates an inefficiency in the economy. The other problem is the lose monetary policy of the Fed since Nixon took us off the gold standard, that also needs to be corrected. There has been one study I know of that showed a very strong correlation between tight, non-inflationary monetary policy and GDP growth over 200 years of American history. Politicians and the media rail on business and wall street for causing the problems, when nearly all the crashes in American history can be tied mostly to faulty federal monetary policy and exacerbated by legislative policy (Smoot-Hartley).
The United States is not a democracy, it's a republic the founders knew the danger of mob rule. The solution to the problem are term limits, so politicians don't worry about their jobs and the next election, instead they worry about the people they represent.
PS. Ron Paul is in Congress, Rand Paul his son is in the Senate. Ron Paul is also retiring after next year.
- nextparadigms 15y agoI'm just saying that I don't think the correction will come when things are still not that bad. Major changes happen in times of crisis, not when things go pretty well. Even if they start thinking about some corrections, the process will be way too slow and the changes will be minor. For example, when do you think it's more likely they reduce the Defense budget from 25% to say 15% or 10%. Right now? Or when the dollar will lose half of its value and un-employment will double? I think it's basically almost impossible to make them reduce the defense/military budgets without a major collapse and near-revolution situation like that.
- actionbrandon 15y agoid like to read the study you cite that shows a correlation between tight monetary policy and GDP growth. can you link it? yes to term limits