Under the current global monetary system, we will not suffer a true recession until we can no longer “print gold.” For now we can just print it up and use welfare programs to distribute wealth down to the peons so they don’t revolt. That will work for a while. We still have a ways to go before we actually have to start working again, at which point things will be very rough for awhile. Now where’s my check? I didn’t have a clunker to destroy… (i needed it to get to work)
Keep in mind that the vast amount of these new jobs are either public or service based. The production industry is dying, while the already obese service industry gets even fatter. Services become worthless when there isn’t any product and wealth evaporates if there aren’t any goods to go around.
The slowing of the GDP decline means nothing. The GDP isn’t only bloated by the aforementioned inflation, but also by Keynesian work standards of tearing down bridges and rebuilding them. No wealth is created there, jobs sure, but there’s all the less of the materials used in construction, as well as the wasted capital.
Hmm. I guess I’m really not informed about the inner workings of the federal reserve, if they serve themselves or some other group etc.
I read something by Walter Block on on Lew Rockwell’s blog about how Ron Paul might actually have a shot at some point to fix this nonsense. I was skeptical at first but now I don’t know what to thing. Could Ron Paul or a similar candidate ever have a shot in the near future?
We are suffering a very true recession. Almost the entire population of young adults between 18 and 25 are unemployed and unable to work or gain capital. Yes, jobs don’t mean everything, but they are an indicator, the labour force will always be utilized if the economy is doing well. The fact that it isn’t proves we are in a recession.
“Print[ing] gold” doesn’t mean anything, the only effect it’s causing is inflation. It’s not keeping the economy alive or preventing a disaster. The disaster will is still happening, the only difference is instead of a steep, immediate collapse, it is a slow decline with the effects becoming more pronounced as it worsens. Think of it like slowly bleeding to death and the gradual loss of color from your skin.
In regards to auditing the Fed, it’s not only a libertarian agenda, and so has a shot.
The FED is supposed to be able to manage the economy. If the FED doesn’t act during a crisis, it undermines the purpose of the FED.
Likewise, a market recovery would demand corrections of malinvestment, including liquidation of banks which are insolvent. Those banks, directly own the FED, and so the FED has an interest in acting to prevent a correction, which could punish its officers and shareholders.
In most cases, once the incentives are understood, it is easy to see who is crooked and who is not. And the incentives for the FED, are to act badly, than to not act at all.
Case Against the Fed by Murray Rothbard