You have yet to present me with any documentary evidence that we had an artificially inflated currency leading up to the crash of ‘29. Do you even understand the various types of money supply we have? Not all money that can be exchanged for goods and services is physical money, i.e., coin or paper currency. Most of our money supply is usually bookkeeping records.
The FED can increase the money supply as represented by bookkeeping records by buying bonds and other securities from banks and then giving the sellers credits that they can circulate as if they were physical money (coin and paper currency), and this does have the potential of causing inflation. But when I say the 1920s was a bubble in which the value of the economy was greater than the amount of money in existence it is not these FED credits or any other bookkeeping assets that I am talking about but rather coin and currency that is issued by the Congress.
Do you deny that unemployment in Britain during the Great Depression period in the U.S. was lower than it was in the U.S.? Do you deny that per capita income in the U.S. during this period fell more than it did in Britain? Do you deny that the British economy began a sustained recovery by the end of 1933 when the U.S. economy did not have a sustained recovery until after 1941? You deny the facts because the facts don’t support your rhetoric.
I did not say this. What I said is the German welfare system put Germany on the verge of bankruptcy so the government could not afford to deal with the Great Depression thereby driving German voters to the Nazi Party. If Germany had not had such an extensive welfare system, it would have had the financial leeway to combat the Great Depression.
Post #66. You implied that the FED took us off the gold standard by printing more money than we had gold to back. I merely pointed out that the FED has no power to print money. You claimed that the U.S. was taken off of the gold standard in response to the stock market crash of 1929 when in fact the U.S. was still on the gold standard until 1933- some 3 1/2 years after the crash. The U.S. was taken off the gold standard because the Great Depression caused such deflation that the cost of production for goods and services was often higher than the price consumers were able to pay because so little physical money was available for circulation. Making up for the loss of credit that followed the stock market crash had nothing to do with us leaving the gold standard.
