Friday, April 10, 2009

The difference with the 1929 Depression



From the Marketskeptics.com


Back in 1934, the US had most of the world’s gold and was a manufacturing powerhouse. It deserved to be called the “the soundest government in the world”

My reaction: There are a lot of familiar themes in the cartoon above

*** “Spend! Spend! Spend!”
*** “Blame the capitalists for the failure”
*** An out of control government with no idea where it is going.
*** Russians observing the folly with interest
*** Harvard school graduates drunk on power.
*** US turning socialist.
*** Etc…

However, there is one theme that is absolutely NOT familiar:

“Depleting the resources of the soundest government in the world”

When was the last time you heard the US referred too as the “the soundest government in the world”? Everyone knows the US was bankrupt going into this crisis. The United States has no “resources” to deplete, only a giant mountain of debt.

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