[extropy-chat] Redistribution of wealth

[Mike Lorrey]

--- Trend Ologist <trendologist at yahoo.co.uk> wrote:

> So what alternatives could Hoover have chosen after
> '29 to avoid Keynesianism? What could Hoover and FDR
> have done for free-market agriculture?
> Incidentally, I'm one of the city peasants you refer
> to. However by being miserly I've got almost enough to
> purchase an urban dwelling. But doing so would merely
> make one into a lumpen prole who pays property taxes
> to fund public schools, correct?

You already pay property taxes, indirectly, by paying rent (part of
which pays the owners property tax bill). 

Hoover would not have needed to do anything if he had instead suspended
the Federal Reserve Act, preferably as early as 1927. What really
happened was that England had been instituting its welfare state in the
1920's, and the tax demands had forced them into over-issuing their
currency, debasing it, while simultaneously keeping its value tacked to
the dollar at an improper rate. The British gold and silver stocks were
drained by consumerism buying US products. Finally, the Brits took
themselves off the gold standard, their currency collapsed, and they
begged us to extend them credit to get their house in order. We did,
but they didn't get their situation straightened out, they just kept
spending, until US credit markets were maxed out and loans started
getting called in. Investors needed to liquidate their holdings to pay
back loans that were called in, and stock prices collapsed.

If we had not extended the Brits credit under the reserve act, they
would have still collapsed, but not as badly, and we would not have had
the great depression, because our own credit markets would have survived.

=====
Mike Lorrey
Chairman, Free Town Land Development
"Necessity is the plea for every infringement of human freedom.
It is the argument of tyrants; it is the creed of slaves."
                                         -William Pitt (1759-1806) 
Blog: http://www.xanga.com/home.aspx?user=Sadomikeyism


		
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