Sunday, March 01, 2009

New Deal 2.0 = Great Depression 2.0 ?

“We have tried spending money. We are spending more than we have ever spent before and it does not work.”

“I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises.”

“I say after eight years of this Administration we have just as much unemployment as when we started. … And an enormous debt to boot!”

Hmmm... Who's words might those be? Ever heard of Henry Morgenthau Jr. - who spoke these words in 1939 while testifying to the House Ways and Means Committee. And just who is this Henry Morgenthau Jr.?

He's been described as a close friend, lunch companion and - oh - Treasury Secretary to "Progressive (modern Liberal)" FDR himself from 1934 until the end of FDR's presidencies.

As much as I might like the fact that he saw the delusion of Keynesian economics for what it was, he also was a leading participant in the establishment of The Bretton Woods System, the International Monetary Fund and what would become the "World Bank". These are all systems enabling the "government" - in whatever form - to meddle in the free market in order to make sure we never had any more wild economic swings. Throw the Federal Reserve System (The Fed) in there as well which was created by America's first "Progressive" president Woodrow Wilson in 1913 and judge for yourself how well they've done.

No economic bubbles or recessions since 1913. Your government has everything under control.

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