Economy still in a tailspin! 570k job losses last month, fuck
Posted 9/3/2009 8:39 pm
I cam to the conclusion in 01 that the shit has changed unlike anything ever seen. WE have a situation where it is always easier to outsource jobs, than produce good here. We have the ability to knowledge transfer all the info we need for a guy to work a factory line anywhere so there is no point doing it here. We have laws that make it better to produce elsewhere than here.
We have no real economic plan. None.
Me? I got our house under a year ago from a bank short sale, I owe less than 90k on it. I am hunkered down for hard times.
You have to understand the thinking of economists advising FDR at the time.
There was tremendous asset deflation, people were defaulting on their loans, and the banks were going broke. The economists of the time looked at the period after the Civil War and found that inflation (of asset values) broke the vicious cycle of falling asset prices causing bankruptcies which caused more falling asset values with the banks eventually all bankrupting.
So FDR tried to create inflation in asset values by creating inflation in the prices of goods and wages.
That was his mistake. inflation in the prices of goods and wages does not necessarily lead to inflation of asset values.