Home » Articles » Classic Videos: Ben Bernanke’s Predictions

Classic Videos: Ben Bernanke’s Predictions

by John Rubino on March 2, 2010 · 32 comments

Of all the surreal choices the U.S. has made in the last few years, the strangest might be our decision to put the people who ruined the old system in charge of fixing it. Ben Bernanke, Barney Frank, Nancy Pelosi, Chris Dodd, Tim Geithner et al built the monetary policy and regulatory structure that let “financial innovation” and government spending run amok. But instead of the long prison terms they deserve, they’re hanging with the president and being interviewed on Meet the Press and CNBC — and collecting big paychecks. This is not the right way to treat these people.

So just in case you aren’t aware of how badly these guys misunderstood the mess they were making, here’s a bit of Ben Bernanke history from the Classic Video files:

  • David C

    Hmmm… interesting (and sad) video. But then, when do people in these sort of positions ever tell the truth about what is actually going on? Also, I want to comment on this:

    “Ben Bernanke, Barney Frank, Nancy Pelosi, Chris Dodd, Tim Geithner et al built the monetary policy and regulatory structure that let ‘financial innovation’ and government spending run amok.”

    I think the problem of financial policies, regulatory structures, and sovereign debt has been gradually created for the last few decades. I would include names like Reagan, Rubin, Greenspan, Bush (x 2), Clinton, etc., etc., etc., etc. Heck, let’s even throw in Ayn Rand since she was such an important spiritual advisor to the likes of Greenspan. And let’s remember that Greenspan, Rubin, and Geithner are just the tip of the financial-industry iceberg. So, this whole mess is a bipartisan, private and public, and decades-long effort.

  • Bruce C.

    I like your sentiment but besides the rule of law being suspended in Washington for the foreseeable future, there are still a lot of people who are ambivalent about the prospects of our fiscal and monetary success going forward. Not everyone is so sure that what was done won’t work, so they’re not being blamed (just yet, hopefully). I still hear/read people saying things like “The government had to do what it did,” or, “I’ve heard all kinds of opinions and predictions about what should or shouldn’t have been done, we’ll just have to see how it all works out.”

  • henry1coulter

    People voted for Obama because he promised change and all we got was more of the same. But who is really to balme for this huge mess we’re in? The finger points back at us, until the voters rise up and take back the government and make it much smaller, things will continue to get worse.

  • Bruce C.

    David C.,

    FYI: Ayn Rand came to regret Greenspan’s association with her philosophy after he was her protege precisely because she recognized that he left the reservation. She never supported the concept of an independent, unaccountable Federal Reserve Bank and fractional reserve lending, never mind the direct manipulation of interest rates and all the rest. It would be the height of unfortunate ironies if history decides that Greenspan’s policies were the manifestation of her ideas.

  • Brad Thrasher

    Hey henry1coulter,

    I appreciate the sentiment for smaller government. However isn’t government big primarily in response to demands from the people? For example, a clear majority of people support a public option in HCR.

    It won’t ever happen in my lifetime but this economic mess begs for a Financial Products Administration along the lines of Federal Drug Administration.

    Before any financial product is approved for market it should be tested and approved by a qualified, impartial, independent agency.

    All you nice folks advocating for less government fail to appreciate that it is exactly less government, deregulation/self-regulation that put us into this mess.

    All the Best,
    Thrash

  • Robert D.

    Well it was just explained to me by a wise person, its not the democrats, nor the republicans, its the progressives, or the progressive movement in BOTH parties. We are moving away from a Republic, and towards who knows what, anyone got an idea? What will our “new progressive” government be called? We are divided between party lines that really do not exist anymore, both parties are moving to TOTAL Federal government, the states, counties and cities are going bankrupt, who do you think will save them? The federal government! The newest budgets were dreamed up when there was unbelievable growth, and government grew with the available tax base, well that’s GONE, so now the tax base is shrinking, who is going to pay for all this governance? This is the failure of GOVERNMENT, not the PEOPLE! Its happening before our very eyes, and all we can do is blame each other as democrats and republicans. If you still believe in this country and what its Constitution stands for, you will get involved in your elections and demand a return of SMALLER MORE RESPONSIBLE Federal AND local government.

  • henry1coulter

    Brad
    I agree, the finger points back at us. It is our fault (collectively).

  • http://paperpoverty.blogspot.com paper is poverty

    @ Brad,

    All you nice folks advocating for more government fail to appreciate that our government has been taken over by corporations and the uber-rich. To add more government is simply to use our money to give the elites even more control. Your beloved FDA, which has constant conflicts of interest and a revolving door with Big Pharma, rolled over for Merck and allowed their Vioxx drug to kill as many Americans as died in the Vietnam War. A financial regulatory agency along FDA lines would only assist Wall Street in selling dangerous products to consumers, who would wrongly assume they’re safe because the government okayed them.

  • http://blendininn@yahoo.com newfy777

    I’m goint miss Ben once we get these state banks set up..NOT
    working on Michigan right now..N.Dakota has state banks already..

    “if the American people ever allow private banksters to control and issue their currency, the people and their children will one day wake up homeless on the continent their forefathers conquered” – Thomas Jefferson”….the power to issue and control the currency/money, must be given back to the people to which it rightly belongs” – Thomas Jefferson….”private central banksters controlling the peoples money are more dangerous than standing armies” – Thomas Jefferson….its time to END THE FED and big government for good people..Ron Paul’s bill HR 1207 to audit the fed,will do nothing,as the federal reserve lawyers will cook the books and make everything look just dandy..a waste of time..in fact, I would bet the fed lawyers are fudging the books right now ..the fed must be ABOLISHED,and it can be done w/o nary a bill to get rid of it..with this new state banking money system,the fed will die on its own accord..state run banks with “honest” money ARE the solution..a new interest free paper currency issued in each of the 50 states possibly backed by silver,[NO GOLD]..we had our money backed by gold in 1929 and the 1930’s..did it stop the great depression? NO!..although gold would still retain a value 16 times greater than silver per the constitution,with each state making their own $1,$5,$10,$20,$50,and $100 paper notes backed by silver[ex: $20 Texas silver note..under that "payable to the bearer on demand $20 in silver [when presented at any state bank,you would receive either $20 worth of 90% silver coin, 20-.999 silver dollars,4 - 5 oz. .999 silver bars,or 2 -10 oz, .999 silver bars],and all 50 state paper notes would be accepted in every state and abroad..having 50 different notes for the 50 sovereign states would make it extremely difficult for the banksters to take back control of the U.S. money system again.. a dollar would be 31.1 grams of silver[ONE OUNCE] as per the constitution..change for the new paper notes would be pre-1965 90% silver again[only 90% silver with 10% copper is hard enough to take the day to day pounding/ movement/exchanging and hold up],and 100% copper again for pennies..a state run honest money/banking system with interest free loans run by the people.. for the people.. there would be only a small administrative fee/ cost, to borrow money to pay state bank employees and mgrs. etc.
    EX: you[or a small business starting up lets say ]were to borrow $205,000 for a $200,000 house/loan,you would pay back $205,000 over the next 5,10,or 15 years[ditto credit cards],instead of the present parasitic fractional reserve banking system where you would buy a $200,000 house[or a $200,000 loan] and you would pay the private parasitic fractional reserve banksters nearly $1,000,000 over 30 or 40 or even 50 years for money made from NOTHING!!..thin air..infinite free money..THIS IS ABSOLUTE,UNADULTERATED INSANITY..
    paying the banksters for money made from nothing..it just blows you away when you think about it..its hard to wrap your mind around.. just like 9-11
    the private non-federal reserve is simply the greatest scam,fraud, and deception in the history of the world..bar none
    IS IT ANY WONDER MANY OF US ARE DEAD BROKE AND BURIED SO DEEP IN COMPOUNDING DEBT WE WILL NEVER GET OUT IN A LIFETIME??
    and living paycheck to paycheck?
    this isn’t living..this is [debt] slavery and many don’t even realize they are lifetime debt slaves of the banksters!
    it just doesn’t have to be this way!
    state controlled banks with “honest” money, will bring back manufacturing and real jobs!
    a nation that is prosperous MUST produce goods folks!
    3rd world countries don’t produce goods!
    the U.S.A.. IS in fact a 3rd world country now!
    a petition page will soon be up at WEB OF DEBT.COM
    where you can sign it and DEMAND your state
    implement state run banks! [unless you live in N.Dakota that already has state banks]
    ..BANKS AND “OUR” MONEY CONTROLLED BY WE THE PEOPLE..
    talk about PROSPARITY RETURNING TO AMERICA..
    imagine paying $500-$1,000 for a new car again..
    of course a new state bank silver dollar will have the purchasing power of a 1913 dollar..but we can start all over again as a nation,
    and bring ALL the troops home from abroad and have them protect OUR BORDERS! with 50 new sovereign state banks this country can be turned around in days
    not months or years, but DAYS!

  • http://blendininn@yahoo.com newfy777

    I’m going to miss the ol lyin snake Ben once we get these state banks set up..NOT
    working on Michigan right now..N.Dakota has state banks already..

    “if the American people ever allow private banksters to control and issue their currency, the people and their children will one day wake up homeless on the continent their forefathers conquered” – Thomas Jefferson”….the power to issue and control the currency/money, must be given back to the people to which it rightly belongs” – Thomas Jefferson….”private central banksters controlling the peoples money are more dangerous than standing armies” – Thomas Jefferson….its time to END THE FED and big government for good people..Ron Paul’s bill HR 1207 to audit the fed,will do nothing,as the federal reserve lawyers will cook the books and make everything look just dandy..a waste of time..in fact, I would bet the fed lawyers are fudging the books right now ..the fed must be ABOLISHED,and it can be done w/o nary a bill to get rid of it..with this new state banking money system,the fed will die on its own accord..state run banks with “honest” money ARE the solution..a new interest free paper currency issued in each of the 50 states possibly backed by silver,[NO GOLD]..we had our money backed by gold in 1929 and the 1930’s..did it stop the great depression? NO!..although gold would still retain a value 16 times greater than silver per the constitution,with each state making their own $1,$5,$10,$20,$50,and $100 paper notes backed by silver[ex: $20 Texas silver note..under that "payable to the bearer on demand $20 in silver [when presented at any state bank,you would receive either $20 worth of 90% silver coin, 20-.999 silver dollars,4 - 5 oz. .999 silver bars,or 2 -10 oz, .999 silver bars],and all 50 state paper notes would be accepted in every state and abroad..having 50 different notes for the 50 sovereign states would make it extremely difficult for the banksters to take back control of the U.S. money system again.. a dollar would be 31.1 grams of silver[ONE OUNCE] as per the constitution..change for the new paper notes would be pre-1965 90% silver again[only 90% silver with 10% copper is hard enough to take the day to day pounding/ movement/exchanging and hold up],and 100% copper again for pennies..a state run honest money/banking system with interest free loans run by the people.. for the people.. there would be only a small administrative fee/ cost, to borrow money to pay state bank employees and mgrs. etc.
    EX: you[or a small business starting up lets say ]were to borrow $205,000 for a $200,000 house/loan,you would pay back $205,000 over the next 5,10,or 15 years[ditto credit cards],instead of the present parasitic fractional reserve banking system where you would buy a $200,000 house[or a $200,000 loan] and you would pay the private parasitic fractional reserve banksters nearly $1,000,000 over 30 or 40 or even 50 years for money made from NOTHING!!..thin air..infinite free money..THIS IS ABSOLUTE,UNADULTERATED INSANITY..
    paying the banksters for money made from nothing..it just blows you away when you think about it..its hard to wrap your mind around.. just like 9-11
    the private non-federal reserve is simply the greatest scam,fraud, and deception in the history of the world..bar none
    IS IT ANY WONDER MANY OF US ARE DEAD BROKE AND BURIED SO DEEP IN COMPOUNDING DEBT WE WILL NEVER GET OUT IN A LIFETIME??
    and living paycheck to paycheck?
    this isn’t living..this is [debt] slavery and many don’t even realize they are lifetime debt slaves of the banksters!
    it just doesn’t have to be this way!
    state controlled banks with “honest” money, will bring back manufacturing and real jobs!
    a nation that is prosperous MUST produce goods folks!
    3rd world countries don’t produce goods!
    the U.S.A.. IS in fact a 3rd world country now!
    a petition page will soon be up at WEB OF DEBT.COM
    where you can sign it and DEMAND your state
    implement state run banks! [unless you live in N.Dakota that already has state banks]
    ..BANKS AND “OUR” MONEY CONTROLLED BY WE THE PEOPLE..
    talk about PROSPARITY RETURNING TO AMERICA..
    imagine paying $500-$1,000 for a new car again..
    of course a new state bank silver dollar will have the purchasing power of a 1913 dollar..but we can start all over again as a nation,
    and bring ALL the troops home from abroad and have them protect OUR BORDERS! with 50 new sovereign state banks this country can be turned around in days
    not months or years, but DAYS!

  • Robert D.

    I was wrong, I took that out of context, yes it is “our” fault for letting it get this out of hand. I agree with that, and I do agree we must end the FED. I wish Ron Paul could find a charismatic running mate and go for the big house. I believe that once our nation has become insolvent and unable to pay our debts to the fed and other countries, the powers that be will seize the states, and set up an emergency total government. Will they seize our property to pay the debts of the “by the people for the people” government, back to the creditors (or rather the managers of the bankruptcy)? The bloated deficits are unimaginable, and what about our estimated 60 trillion in unfunded liabilities? what terrible taxes will be levied against us and our children, will they revolt and/or give in to tyranny under the pretenses that America failed? Is there another way out other than an alternative money for free Americans and their children? I am scared, not for me, but my children and the country I love. The voice of the people will be heard, there is a new awakening. yes…WE have been amiss in our duties as Americans and it is time we speak up, all democrats, republicans and independents, we must unite on this common ground cause, we must take away the governments credit card, and make them get out of the way of the free markets.

    Patriotism is easy to understand in America – it means looking out for yourself by looking out for your country. ~Calvin Coolidge

  • Brad Thrasher

    I hear ya paper is poverty. I agree with you if you’re saying our system is totally and completely corrupt. How do we move away from that? For five years I’ve been writing DA’s across the country encouraging them to pursue criminal charges against executives who’s company’s defective products have resulted in death and serious injury. I’m happy to report in a couple instances District Attorneys have been so moved.

    Traditionally, our courts have viewed crimes against property as less severe than crimes against a person. Maybe we should put them on equal footing? The problem there though is finding an impartial jurist.

    In our courts, corporations are granted such credibility as to be invincible. The Spandenberg Group has numerous studies on economic bias in the system such that I’m not crying wolf suggesting economic bias is more prevalent than racism.

  • Brad Thrasher

    Hey newfy 777 & Robert D.,

    Remember last year when the Obama Administration was floating some trial balloons on how best to deal with the crisis? One was to draw form how the Reagan Admin. dealt with the S & L’s.

    When creating a “bad bank” that idear didn’t fly I became convinced that the current Federal Reserve would serve as the bad bank. This is the 4th such CB in our relatively short history.

    Hopefully it will be the last.

  • Bruce C.

    Hey Thrash,

    Just because US constituents and lobbyists have supported ever-increasing government services for the last 80 years doesn’t mean that its practical, just, sustainable, or constitutional. Free money is very attractive and addictive. One of the most famous comments about democracy in America is that it will end when it is learned that votes can be bought.

    Furthermore, once a culture of entitlement takes hold – which parallels a belief in the powerlessness of the individual – the standards and expectations of life diminish. The fear-based desire for security and basic necessities supplant the feelings of creativity, empowerment, confidence, joy, imagination, and freedom.

    You seem to think that a lack of government regulations is what allowed the economy to implode. On the contrary, I submit that the very existence of so many regulations is what gave so many people and organizations a false sense of security and led to them assume that everything was as it seemed. (The fact there was also so much tacit government backing of institutions and financial products also obscured things.) The Bernie Madoff scandal lasted so long because (your coveted) governmental agencies like the SEC repeatedly sanctified him. The credit rating agencies were trusted at face value because it was assumed that their inherent conflicts of interest were regulated. The FED was assumed to be competent and watching for economic instabilities and ready to act, having access to the very most and up-to-date information. Et cetera. By contrast, consider how careful investors are when buying precious metals. Knowing that PM dealers are an unregulated bunch compels one to do much more due-diligence. I agree that some regulations can be helpful, but our Federal government is usually so involved at almost every level that it is counter productive.

  • Brad Thrasher

    Hey Bruce C.,

    You’re paraphrased comment seems a bastardization of Alexis de Toqueville, “The great American experiment will work so long until the people find out they can raid the treasury.”

    By your reasoning, the Highway Transportation Act under Eisenhower and opening the internet to the public under Clinton was bad public policy. I offer the caveat the main difference between conservatives and liberals is that conservatives think the commonwealth of our nation should be free of any and all cost ;)

    Yes I agree that regulation failed to stop Madoff sooner. At the same time deregulation allowed for trillions of insurance fraud that is AIG and trillions more in mortgage fraud.

    I can understand you being peeved about Madoff and his $65 billion of ponzi fraud. You seem to continuance the trillions of dollars of insurance fraud perpetrated at AIG and the banks, because that is freedom?

    And you don’t even join with me in calling for harsher penalties for crimes against property? Tell ya what Bruce, I’ll give you some tort reform if you give me pursuing criminal penalties in product liability cases.

    With or without regulation, that we are corrupt to our core is prima facie. And the fat cats stick us with the bill.

  • J. P. Bowmann

    John, wow great work in putting this video together. Testimony to why I always question authority and am skeptical of ‘experts’.

  • Jack

    Everyone has the long complicated explanation for what happened. Blame this or that person or group. Really the answer is pretty simple. We as a people, have decided to pursue pleasure at the expnese of the future of the United Staes. We are spending our self into poverty so We can have what we want now. We have wondered from the principles of the founders of this country and then we lie to each other about what the intent of the founders were. We will go down, the rest of the world see us for what we are. China, in paticular does and is going to overtake us. In reality they already have. When they have had enough of our forgein policy they will jerk the chain of debt and tell us what to do. We will save face but we will obey. What choice do we have?

  • Bruce C.

    Brad,

    I don’t mean to imply that governments should do nothing or do what they do for free, I just think that the Fed. gov. should be constrained by the Constitution and all other powers go to the states and the people, again as per the Constitution.

    The difference between “conservatives” and “liberals” is that one believes that some government is necessary or useful but should generally be constrained or used as a last resort. Liberals (now called “Progressives”) believe that governments should be the central forces in society and run by “smart” people to control things. It is those people, or the people of whom they do their bidding, that you hate so much – “the monetary elitists,” corporates, uber rich, etc. If government is not allowed to be involved in an area via regulation, financial support, etc. then lobbyists, politicians, etc. have no foot hold. That is why the “military-industrial complex” is so insidious.

    Also, I actually don’t care about Bernie Madoff’s “victims”. Other than just empathizing with their feelings of loss, I think any one who would invest so much of their wealth with one person and not diversify deserves what they get (or don’t get.)

    Concerning AIG I disagree that deregulation was the problem. The problem was that “AIG” (really its counterparties like Goldman and others) got bailed out. Even if the “global finacial system” collapsed which I personally doubt would have happened, all of the trillions used to backstop your favorite entities could have been used to support we lowly US citizens until the dust settled.

    I have no comment concerning your appeal for tougher product liability penalties. I don’t know much about it. I do know that I gave up trying to get a patent for something because every potential manufacturer was so concerned about liability claims that it lost its appeal, and made me a little bitter. Not the best environment for innovation.

    Lastly, I do agree that corruption exists all over. The most obvious manifestations are when existing laws (and regulations) are ignored, by-passed or simply not enforced. More regulations are not the answer. We have too many laws as it is. They should be enforced and if then found to be un-enforceable, contradictory, draconian, etc. they should be repealed or amended. I’m for the rule of law, not the rule of men.

  • David C

    RE: Bruce C. and Ayn rand.

    All I can say to Ayn Rand is “You reap what you sow.”

    No, I take that back, it’s “We reap what she sowed.”

    I would have to say I agree with Brad Thrasher in his comments above. Rand might have come to regret Greenspan but what should she have expected when putting forth an ideology of limitless freedom (from government or regulation) and self-interest? It should not be surprising that we have raised a couple of generations of Gordon Gekkos (including many politicians) who have created an economic system that is little more than a giant ponzi scheme. Your average person has no hope of living a life described by Rand because there is an entrenched political/economic class that basically skims off everything for themselves and leaves the rest of us holding the bag. (hehe, I’ll quit mixing my metaphors now :)

  • Bruce C.

    Thank you for response. I understand that you’re frustrated and I don’t disagree with the entrenched political/economic class and Ponzi-scheme financial system that you describe. That is not, however, the result of rational self-interest and economic freedom that Rand and others espoused. THAT is the result of cronyism, elitism, corruption, evasion, and criminal behavior. Rational selfishness and freedom do not necessarily lead to that state of affairs. The Gordon Gekko types that you refer to are not Ayn Rand idealists (and by their own admission), they’re greedy, predatory sociopaths (and no, greed is not good – by definition.) In fact, the characters we’re talking about are products of the anti-intellectual 60s, a movement Rand despised.

  • Jack

    The Federal gonerment should only provide for defence and a currency based on silver or gold. Yes we should take care of widows, orphans and others who can’t but only when it is proven they cannot take care of themself. The US Constitution is designed to LIMIT goverment. American should stand own their own based in indivudual desire and skills. I know its to simple.

  • Brad Thrasher

    hey jack,

    As I’ve said before, I to believe in limited gubbment as described in our constitution. Can you name one government agency that is unconstitutional? OSHA? SSA? Education?

    The entire alphabet soup of government agencies is actually constitutional under Article 1 Sec. 6 and the 10th Amendment.

    Now if you want to discuss whether the import/export bank subsidizing the international growth of Walmart and McDonald’s is good public policy, count me in. But to suggest that lawfully constituted gubbment agencies are some unconstitutional well…

  • Lennon

    @Brad Thrasher

    I do not understand how the article on congressional compensation or the 10th amendment delegating powers not mentioned in the constitution to the states or people (i.e. NOT to the federal government) constitutes allowing the alphabet soup of FEDERAL agencies currently residing on the FEDERAL pay roll. You did say “government” and not “FEDERAL government” though so maybe there’s some confusion as to the difference…?

  • Jack

    Thanks Lennon, Congress and the Prez can pass any law the courts will allow to stand. The courts have perverted the orginal idea of what they are supposed to be and he we are. It happend slowly and now we accept the courts as appointed law makers. The law and the orginal idea (intention) of the documents has been so confused over the years no one really knows what is legal anymore. Very soon (ha Ha) the party in charge will interpert law to fit its need. The corrpution of the moral system in the US is what will finish us off. I know I am not the brighest light bulb but I am dim enough to have a little common sense.

  • Bruce C.

    Hey Brad,

    What are you talking about? Article 1, Section 6 of the Constitution has nothing to do with defining Federal powers, and Amendment 10 simply further defines the balance of power between the federal government and the states or people.

    As far as which federal agencies are unconstitutional, I would say just about all of them except for the DOD, IRS, and FTC, in the sense that the primary powers of the federal government are supposed to be limited to the power to declare war, collect taxes, and regulate interstate business. The hundreds of others are absolutely superfluous (e.g., EPA, FDA, DOEnergy, FDIC, CIA, HUD, DOEducation, FAA, DOT, NASA, FHA, FDIC, FEMA, SSA, etc., etc.) I don’t mean to imply that all such agencies are useless (or worse), but they don’t have to be governmental. Whenever new powers are given to the government (at any level) they are practically impossible to take back and actually even grow uncontrollably because gov. tends to beget more gov.

  • Jack

    Look, all I am trying to say is we have persued the dollar bill to the point of destroying it. What we have done is love the dollar more than the country, our children, our future and the legacy of our generation. That is a moral failure of my generation. I feely admit I was asleep until the finace industry (ha Ha) got over 2 billion for each man, woman and child in the US. plus some. That is when I realized something had gone very wrong. I began to learn and pay attention. It is too late. The dollar will give you everything you desire until it doesnt, then it will leave an empty shell of nothing. An empty sad person, and country. We have been lied to and we all know it. A war (ha ha) who will die for a known lie. We will be to busy fighting for the simple things. Why? Without the almighty dollar to hold high as our moral standard. What will guide us next, when it falls apart? Food, water the bascics of life. What will everyone do when that is the priority and not the next toy? Will we help each other or kill each other in a grand scale. We get what we sow. I don’t think what we have become was the intent of the founders of this country. Does anyone else?

  • Brad Thrasher

    Whoops, my bad, Article 1 Section 8, also known as the commerce clause enables the gubbment to establish and enforce whatever law it deems necessary to regulate commerce among the states.

    To those who don’t understand the enabling power of the 10th Amendment I suggest you visit Findlaw, do a search using the phrase Tenth Amendment and read the thousands of challenges to federal authority based on the 10th that have been shot down by SCOTUS for more than 200 consecutive years. Or go sit in a constitutional law class or two.

    Sorry, I lack the ability to break it down into 10 words or less for you.

    What libertarians fail to appreciate is that with every right there is a corresponding responsibility. In other words, your right to swing your arm ends precisely where my nose begins.

  • Jack

    You are right, you cannot interfere with anothers right to exist in peace and their persuit of happiness or whatever. That is where my genration destroyed the repbublic. We did not live up to our responsability to the next generation based on the way we abused (with debt and the ablolition of a value based montary system) the economy of our country. We effectivitly have destroyed it. Te dollar, the country, the Constitutiuon. It is just a matter of time. YOU are right responsability has been ignored at the expense of the almighty dollar.

  • Jack

    Mr. Thrasher you are much smarter than I. My whole point is we have had a moral collaspe which has led to a monatary collapse which will led to social collapse. We are one crisis away from it. That what the web site Dollar Collapse is about. The collapse of the United States of America.

  • Brad Thrasher

    Thank you Jack. That is very kind. Maybe you’re easily impressed ;)

    Up until yesterday, like you I was prepared to blame my fellow Boomers. However I read an article by Darryl Robert Schoon that suggests some rethinking might be in order. Schoon claims the USA defaulted twice in the past century. First during the Great Depression when FDR arbitrarily raised the price of gold from $20 to $35. Second, in 1973 when Nixon pulled us out of Bretton Woods and officially put us on fiat currency.

    In the book, This Time is Different, Kenneth Rogoff and Carmen Reinhart review eight centuries of sovereign default and conclude that collapse, due to the expansion of debt, is the predictable outcome of fiat money.

    Such crisis are usually resolved by war. This time is particularly troubling because we have the ability to turn this planet into glass.

    BTW Jack, which is your fave Bernanke Bust Up? Mine didn’t make the final cut. In August 2007, Buck Buster Ben, with Henry Paulson standing dutifully at his side, reassuringly defined the collapse in subprime mortgages as a “$50 billion problem.” In the immortal words of Larry the Cable Guy, “I don’t care who you are, that’s funny right there.”

  • jack

    It might me funny, what the B man does, but the implcations of his and others actions really are criminal. I agree we did default in the past and that should let everyone else know what we are about to do. Default through the finance industry by producing dollars. We are doing it despite knowing better. We really don’t need all the toys we have. We owe the future of our children everything possible within the restraints of reason. But we decided to take it for ourself. I, for one am ashamed of what I helped to allow to occur by apathy and laziness. But no more, I will live by example and let my voice be heard. For whatever good it might do. At least I have woke up to reality.

  • Weir Fukt

    WE are now oficially MORE Paraguayan than Paraguay itself. YES WE COULD!


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