Comments on: Fed Creates Boom & Bust Cycles and Should Be Abolished http://www.ronpaul.com/2009-03-18/fed-creates-boom-bust-cycles-and-should-be-abolished/ Ron Paul is America's leading voice for limited, constitutional government, low taxes, free markets, sound money, and a pro-American foreign policy. Fri, 10 Feb 2012 02:40:03 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Johnhttp://www.ronpaul.com/2009-03-18/fed-creates-boom-bust-cycles-and-should-be-abolished/comment-page-1/#comment-148860 John Sun, 28 Nov 2010 23:37:18 +0000 http://www.ronpaul.com/?p=1564#comment-148860 End fiat money, fractional money and the reserve. Read "The Creature from Jekyll Island" - tells the true story about the fed. End fiat money, fractional money and the reserve. Read “The Creature from Jekyll Island” – tells the true story about the fed.

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]]> By: Nate Yhttp://www.ronpaul.com/2009-03-18/fed-creates-boom-bust-cycles-and-should-be-abolished/comment-page-1/#comment-15887 Nate Y Tue, 24 Mar 2009 04:14:45 +0000 http://www.ronpaul.com/?p=1564#comment-15887 Saying "booms and busts can happen under a gold standard" is quite distinct from saying "the free market creates boom and bust cycles". While a gold standard would demand a more disciplined economy, it is not an absolute guarantee from booms and busts. Happily, no one is claiming a gold standard as a solution to all our ills.If you want to speak in general terms, the claim is free market economies are much more efficient at allocating resources than centrally planned economies. Saying “booms and busts can happen under a gold standard” is quite distinct from saying “the free market creates boom and bust cycles”. While a gold standard would demand a more disciplined economy, it is not an absolute guarantee from booms and busts. Happily, no one is claiming a gold standard as a solution to all our ills.

If you want to speak in general terms, the claim is free market economies are much more efficient at allocating resources than centrally planned economies.

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]]> By: observerhttp://www.ronpaul.com/2009-03-18/fed-creates-boom-bust-cycles-and-should-be-abolished/comment-page-1/#comment-15859 observer Mon, 23 Mar 2009 16:19:31 +0000 http://www.ronpaul.com/?p=1564#comment-15859 So if the free market also creates Boom and Bust cycles, we should abolish that too?I mean, isn't that what this headline is implying? "Fed Creates Boom & Bust Cycles and Should Be Abolished" So if the free market also creates Boom and Bust cycles, we should abolish that too?

I mean, isn’t that what this headline is implying?
“Fed Creates Boom & Bust Cycles and Should Be Abolished”

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]]> By: jayhttp://www.ronpaul.com/2009-03-18/fed-creates-boom-bust-cycles-and-should-be-abolished/comment-page-1/#comment-15808 jay Sat, 21 Mar 2009 22:16:54 +0000 http://www.ronpaul.com/?p=1564#comment-15808 andrew jackson had it right the government is the only one that can print money. the fed is not the government. that's the first contracting out job that needs to be restored to the government. once the government has control of the ability to print money again then we can tell the yahoo's in washington you will now be held acountable. andrew jackson had it right the government is the only one that can print money. the fed is not the government. that’s the first contracting out job that needs to be restored to the government. once the government has control of the ability to print money again then we can tell the yahoo’s in washington you will now be held acountable.

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]]> By: Nate Yhttp://www.ronpaul.com/2009-03-18/fed-creates-boom-bust-cycles-and-should-be-abolished/comment-page-1/#comment-15775 Nate Y Fri, 20 Mar 2009 17:26:01 +0000 http://www.ronpaul.com/?p=1564#comment-15775 Nope. That is not what I'm saying. Nope. That is not what I’m saying.

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]]> By: observerhttp://www.ronpaul.com/2009-03-18/fed-creates-boom-bust-cycles-and-should-be-abolished/comment-page-1/#comment-15765 observer Fri, 20 Mar 2009 14:57:04 +0000 http://www.ronpaul.com/?p=1564#comment-15765 And while I was avoiding getting into the definition of a 'depression', 'recession', or 'panic' as that is separate of whether or not business cycles occur in a free market system, I found this interesting....If we have 14% unemployment, wages being cut, construction disappears, real estate values fell and corporate profits vanish, people will romanticize this central-government led era?Maybe so, as this is the burgeoning era of the internet and cloud computing. Who knows what will happen in the next 20 years, even if there is widespread unemployment and deflation. For example, substitute 'internet' with 'transportation' in your 110 year old paragraph:“As an immediate consequence the world has never seen anything comparable to the results of the recent (development of a worldwide interconnected computing system); never experienced in so short a time such an expansion of all that pertains to what is called “business”; and has never before been able to accomplish so much in the way of production with a given amount of labor in a given time.”Interesting thought huh? And while I was avoiding getting into the definition of a ‘depression’, ‘recession’, or ‘panic’ as that is separate of whether or not business cycles occur in a free market system, I found this interesting….

If we have 14% unemployment, wages being cut, construction disappears, real estate values fell and corporate profits vanish, people will romanticize this central-government led era?

Maybe so, as this is the burgeoning era of the internet and cloud computing. Who knows what will happen in the next 20 years, even if there is widespread unemployment and deflation. For example, substitute ‘internet’ with ‘transportation’ in your 110 year old paragraph:

“As an immediate consequence the world has never seen anything comparable to the results of the recent (development of a worldwide interconnected computing system); never experienced in so short a time such an expansion of all that pertains to what is called “business”; and has never before been able to accomplish so much in the way of production with a given amount of labor in a given time.”

Interesting thought huh?

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]]> By: observerhttp://www.ronpaul.com/2009-03-18/fed-creates-boom-bust-cycles-and-should-be-abolished/comment-page-1/#comment-15764 observer Fri, 20 Mar 2009 14:51:11 +0000 http://www.ronpaul.com/?p=1564#comment-15764 Ok, who cares about the whole 23 years, my point is not to split hairs. My point is to say that boom and bust cycles are not a Federal Reserve creation.How about about the panic of 1873 which ***occurred while the US was on the gold standard*** by the way. Does any of this sounds familiar? Please let me know your thoughts:"In Vienna and Berlin, Paris and London, St. Petersburg and New York, the business cycle had run its course. The failure of the Jay Cooke bank, followed quickly by that of Henry Clews, set off a chain reaction of bank failures and temporarily closed the New York stock market. Factories began to lay off workers as the United States slipped into depression. The effects of the panic were quickly felt in New York, more slowly in Chicago, Virginia City and San Francisco.[15][16][17]The New York Stock Exchange closed for ten days starting September 20. Of the country's 364 railroads, 89 went bankrupt. A total of 18,000 businesses failed between 1873 and 1875. Unemployment reached 14% by 1876, during a time which became known as the Long Depression. Construction work lagged, wages were cut, real estate values fell and corporate profits vanished.[18][17]Recovery from the crash was much quicker in Europe than in America.[19][20] Moreover, German businesses managed to avoid the sort of deep wage cuts that embittered American labor relations at the time.[20] There was a racial component to the economic recovery in Germany and Austria as small investors irrationally blamed the Jews for their losses in the crash" Ok, who cares about the whole 23 years, my point is not to split hairs. My point is to say that boom and bust cycles are not a Federal Reserve creation.

How about about the panic of 1873 which ***occurred while the US was on the gold standard*** by the way. Does any of this sounds familiar? Please let me know your thoughts:

“In Vienna and Berlin, Paris and London, St. Petersburg and New York, the business cycle had run its course. The failure of the Jay Cooke bank, followed quickly by that of Henry Clews, set off a chain reaction of bank failures and temporarily closed the New York stock market. Factories began to lay off workers as the United States slipped into depression. The effects of the panic were quickly felt in New York, more slowly in Chicago, Virginia City and San Francisco.[15][16][17]

The New York Stock Exchange closed for ten days starting September 20. Of the country’s 364 railroads, 89 went bankrupt. A total of 18,000 businesses failed between 1873 and 1875. Unemployment reached 14% by 1876, during a time which became known as the Long Depression. Construction work lagged, wages were cut, real estate values fell and corporate profits vanished.[18][17]

Recovery from the crash was much quicker in Europe than in America.[19][20] Moreover, German businesses managed to avoid the sort of deep wage cuts that embittered American labor relations at the time.[20] There was a racial component to the economic recovery in Germany and Austria as small investors irrationally blamed the Jews for their losses in the crash”

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]]> By: observerhttp://www.ronpaul.com/2009-03-18/fed-creates-boom-bust-cycles-and-should-be-abolished/comment-page-1/#comment-15760 observer Fri, 20 Mar 2009 14:12:54 +0000 http://www.ronpaul.com/?p=1564#comment-15760 To be clear, you are saying there would NOT be boom/bust business cycles if we adopted a gold-based monetary system? To be clear, you are saying there would NOT be boom/bust business cycles if we adopted a gold-based monetary system?

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]]> By: Nate Yhttp://www.ronpaul.com/2009-03-18/fed-creates-boom-bust-cycles-and-should-be-abolished/comment-page-1/#comment-15738 Nate Y Fri, 20 Mar 2009 02:07:22 +0000 http://www.ronpaul.com/?p=1564#comment-15738 We'd just have to see. I'm confident the free market would eventually do away with fractional reserve banking. We’d just have to see. I’m confident the free market would eventually do away with fractional reserve banking.

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]]> By: Prashttp://www.ronpaul.com/2009-03-18/fed-creates-boom-bust-cycles-and-should-be-abolished/comment-page-1/#comment-15701 Pras Thu, 19 Mar 2009 23:30:39 +0000 http://www.ronpaul.com/?p=1564#comment-15701 Full reserve banking is impractical. Although other two issues like central planning and fiat money we need to get away with. Full reserve banking is impractical. Although other two issues like central planning and fiat money we need to get away with.

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