This comment from Anna Schwartz, “And then of course if monetary policy tightens, the boom collapses.” strikes me as a little simplistic. It also made me consider that the collapse might not necessarily be because of an interruption but could simply be when the market just can’t grow any more and everyone in the market realizes it.

I vaguely recall seeing some other comments on this so forgive me if this has been given enough debate already but isn’t it more like a pyramid than a bubble? Because once the economy of a thing artificially grows then it requires a larger economy of the thing to keep it at the new rate. So, the next level of entrants into the economy must be larger than the previous to sustain the new growth. Then the next wave is larger still and so on.

I hope that makes the fraud, and its implications, clear.

This is the fraud proven in 1968 by the testimony of Lawrence V. Morgan, President of the First National Bank of Montgomery, in the case described here: http://www.lawlibrary.state.mn.us/CreditRiver/CreditRiver.html

That case has been suppressed for more than 40 years by our free media!

More work for you to do.
http://www.nytimes.com/2009/05/17/business/economy/17view.html?_r=1

After growing the money supply, the claim is now that “reducing the money supply will cause a depression”. Wonder if they might at least agree to keep the money supply constant then!

Anna Schwartz also wrote, with Milton Friedman, that deflation was not synonymous with recessions. Their research showed that there was economic growth during the late 19th century, despite deflation in prices.

The government is crazy like a fox. A predatory fox.

And which maestro was it that toasted Milton in his 90th year or so and promised never to let deflation cause another depression?

So, has Anna changed her tune or is this just another disconnect for her.

The trouble with Milton, at least, was he was always trying to make the government more efficient; his last idea was to replace it with a computer – as if this would hold back the creation of money.

Was Anna in agreement with this too? I can see it now: Obama to the Fed computer – Raise that rate now! Hey, what’s this blue screen mean?

And if Milton was still alive and kicking, he’d be close to 100 – so how old is Anna? She must be an old buzzard by now too.

Thank goodness we have finally have a benevolent despotism. Plato would be so happy, a philosopher king has finally come.

I’m gonna try to post this on Slashdot. Test that Windows server of yours.

That’s been the case for decades.

Anyway, very funny, thanks .