lets have a depression now

"There is no other way to achieve an economic cleansing. It may be possible to continue this economic charade with additional interventions, but there is a limit to how far it can be continued. Japan has achieved zombie existence for over two decades by refusing to face up to the imbalances in their economy. Our government has chosen the same course of “extend and pretend.” There is no hope for a recovery until something like another Great Depression liquidates the built-up imbalances.

No politician wants to be in office when that event occurs. Thus, they make matters worse for the country by continuing to spend money we don’t have to prop up an economy that cannot and should not be saved. Their goal is not to repair the economy but to ensure the most favorable terms for their own re-election. As a result they continue to savage the future of the country in order to protect their own present.

People will eventually regain control of their government. They always do. Unfortunately the process of history is slow and sometimes ugly."
................

http://www.economicnoise.com/2012/11/28 ... ssion-now/

I question the source, but it's a good article. Takes time, but things will be changing soon, and not how bleeding hearts would like I'm afraid.

In the 19th Century, there would be business cycles, just like rabbit populations, growth would happen, but about every 10 or 12 years, a natural sputtering would occur, like when rabbit populations plummet. Call it a correction, as prices go back to normal, demand abates, etc. But now the public is unwilling to see these happen, so the Fed and others are constantly trying to keep the economy pumped up and going, by creating unnatural conditions, for example right now, un-reasonably low interest rates. In this weak economy, lenders would normally charge a premium to let others use your savings, they want a reward for risking your money, but the Feds are giving the banks essentially free money that they just tack on a percentage to.

This reminds me of the Corp of Engineers trying to think they are smarter than the Mississippi. They prevent the normal small floods with levees and other methods but when the dams break, many more people suffer. Plus the small floods would re-energize the land. The large floods sweep so much away.

Wars have been good for business in the past:

[youtube:3k4hohjr][/youtube:3k4hohjr]

Why not? It would only put a few thousand US human lives at risk. Feed the machine and give the Gubment a pass, why should diplomacy be a factor now?

Thanks for the link BB. Good article. However I can't fathom how it might be 10 years before it will happen even with all the kicking the can down the road.

I agree with the author let's have a depression now and get our government in order.

From the article:

If we must have a Depression, let it begin today. It will be hard and dangerous, but it may be the last chance to get our country back. When it happens, we must all think and behave like Founding Fathers. To paraphrase Rahm Emanuel, this crisis will be too important to waste.

The “greatest generation” handed us a gift and we fumbled it away by allowing government to run wild. We cannot turn this mess over to future generations. We must take our country back and remedy the problems.

I agree with the author let's have a depression now and get our government in order.

Yup - suck it up and get it overwith. And move on. Hopefully with a wiser electorate and a smaller government.

I'm not ready to go there.

Usually, the one thing that gets countries out of depression is a nemesis.

Depressions tend to end with wars.

If you can predict and buy into the right investments, you can make a lot of money in a depression. But with the current interventionist economic model, it isn't as likely to happen.

Back under Hoover, it was hands off, and turn off the goverment spigots. I can't see that happening again, even the GOP was bailing out Wall Street and other industries.