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July 9, 2009

FDR, our Fascist-lite Leader

Source: Robert P. Murphy
The Politically Incorrect Guide to the Great Depression and the New Deal

Source: Christian Toto
The Politically Incorrect Guide to the Great Depression

Source: Ludwig von Mises Institute
The Politically Incorrect Guide to the Great Depression

    "Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It may be the better to live under robber barons than under omnipotent moral busybodies.

    The cupidity may at some point be satiated; but those who torment us for our own good will torment us without end, for they do so with the approval of their own conscience."

    ---C.S. Lewis---

Robert P. Murphy's new book The Politically Incorrect Guide to the Great Depression and the New Deal is told in a masterly, calm, reasonable, logical and civilized manner.

But that does not prevent this site from saying what Murphy leaves on the table -- this '08 crash and the '29 crash were both deliberately created, deliberately implemented and deliberately manipulated to bring the public along in giving up their freedoms and liberties to a government mommy who promises to nurse them and change their diapers, as they are performing circumcision on delicate organs.

In other words, the leaders of this county are not nearly as dumb as they pretend.

Yes, indeed the economy is confusing to the ordinary citizen, and multiple lies about the economy confuses the ordinary citizen even more, but any competent "intellectual" in power clearly understands what they are doing is evil.

Was FDR a Fascist at heart?

In an era of blood-thirsty fascists like Stalin, Hitler, and Mussolini, Murphy unequivocally proves that FDR would have made all his contemporaries proud.

Perhaps not in the "blood-thirsty" part, but absolutely and without a doubt, given the same "freedoms" that they had in government, FDR would have held his own in the "fascist" part.

In fact, with Roosevelt's unprecedented third run as president, following his attempts to circumvent the Founder's "checks and balances" by threatening to pack the Supreme Court with his cronies, his un-Constitutional New Deal which forcibly implemented thuggish central planning upon the entire American economy, and with the fact that the FDR had no problem being a good bud to the fascist thug Stalin, whom he affectionately nicknamed "Uncle Joe", all proved to many that FDR was indeed a fascist at heart, only held back by the remaining "checks and balances" our Founders left us with.

Obama, the FDR wanna-be, and would-be fascist, has laid out his plans carefully.

  • FDR's nationalized banks, Social Security -- Obama's nationalized banks, AIG insurance company, Freddie Mac and Fannie Mae housing, GM and Chrysler auto companies and all of health care. (Estimated to be 1/3 of total GDP)

  • FDR's stimulus spending for Hoover Dam-styled labor camps -- Obama's stimulus spending for "alternative energy" labor camps.

  • FDR's WWII rationing -- Obama's "Cap-and-Trade" rationing of electrical power.

  • FDR's labor union monopolies, which kept many, many unemployed men outside the exclusive high-paying unions and unemployed -- Obama's autoworker-ran companies and soon-to-be-announced Acorn-based union monopoly.

  • FDR's "stick it to the rich guy" approach -- Obama's "let the rich GM bondholders eat dust" approach

  • FDR's war-time censorship and propaganda -- Obama's "hate crime" censorship and propaganda

  • FDR's One-World United Nations -- Obama's yet-to-be announced plans, most likely starting with the "Law of the Sea" (LOST) treaty which gives sovereignty of all the oceans to the UN -- that is, complete and unquestioned control over 3/4s of the Earth's air (that part above the oceans), and all of the oceans, both on the surface and underwater.

    Before the Federal Reserve -- We had a free market

    The Fed was created in 1913 to act as a Central Bank.

    Now, centralizing the banking industry would not be on the top of the Founder's list of things to do, so why did we do it?

    And, if the Fed was such a great idea, why and how could we have gotten along without one from 1789 to 1913?

    Banking panics periodically occurred throughout history, even in America.

    To which Murphy asks his relevant question:

    Can you name a single President, King, Queen, dictator, Prime Minister or any other politician who was ever credited with saving his country from an economic collapse -- other than FDR?

    The point being, that all previous downturns were not such a big a deal that historians would write about them.

        Wars - Yes!     Bank Panics - No!

    What was so Great about FDR?

    Reversing the logic -- If FDR and Hoover are the only leaders anyone ever associates with a recession or depression, then is it possible that Hoover and FDR may have in fact been a part of the problem and not a part of the solution?

    If Canada, whose economy is the mirror image of ours, never had a single bank run during the entire Great Depression, then why is FDR heralded by the media-Scribes over his great leadership in implementing a "bank holiday"?

    And if Canada had an unemployment rate 50% better year after year than FDR ever had in his 8 years, then why again is FDR considered such a great leader?

    And with WW1, of 1914-1917, when we had a brand-new 1913 Federal Reserve creating a war-time bubble larger than the bubble they created during the roaring 20's, and with its inevitable and subsequent crash in 1920/21, why did we not have a Great Depression then?

    Why is President Warren Harding not remembered as a "Hoover"?

    Why did the next President, Calvin Coolidge, not get to preside over a "GREAT" Depression and to be then be remembered as one of our "GREAT" Presidents?

    Murphy answers all these nagging questions.

    Banking panics

    Before the Great Depression, banking panics were the worst economic problem we had in this country and "Progressives" (read : communists) idealists believed that a central bank could regulate the business cycle to "even out even these tiny little bumps". If Americans had known that a Great Depression loomed just 16 years after the Fed was created, the first in history, or that a Greater Depression was almost 100 years into the future, perhaps the idea of a Fed "to fix the business cycle" would have sounded somewhat preposterous.

    And after only a few minutes of thought, some more intelligent persons may have even figured that allowing the government to have control of the levers of business would cause far more economic disruption than the free market restraints ever would have.

    After all, there are elections to win and wars to wage. Managing the country's money supply is fun in pumping up the economy just before an election, or in spending more than the "serfs" can afford to be taxed during a war!

    Why do you think that the wars after 1913 were all World Wars? All major countries other than the U.S. went off the gold standard during WW1. America went off the gold standard after WWI under FDR.

    Lastly, the Fed could tell Americans that they are better lovers and protectors of your money than you are. (Child protective services are also known to arrogantly tell lies to parents that they love the children more than the parents love them.)

    As everyone knows, it only takes one stupid investor or one unloving parent to give justification to the government in taking control over everyone's retirement account and everyone's child.

    For example, investors do love their money, and that is why they had always put "gold clauses" in their contracts. Should the Federal government change the meaning of a dollar bill "payable on demand for gold" at the exchange rate of $20.67 per troy ounce, they would still have their money repaid in the equivalent value of gold.

    At FDR's insistence, Congress made a law which allowed gold clauses in contracts to be ignored. -- Just in time for FDR to reset the value of gold to $35 per ounce -- a 40% reduction in all investments and in what the government owed to investors.

    Hence, for anti-business reasons such as this and many others, investors stopped investing and the Depression became the Great Depression.

    Investors do indeed care about their money, but when they attempted to protect their money from the FDR government, then the FDR accused them of being evil, greedy, money-grubbing "gold hoarders". Even more reason to stop investing.

    Here is the problem with the Fed.

    Supply and Demand economics say that prices are dictated by the market.

    The price of a new automobile is dictated by the supply of cars and the demand to buy them.

    Interest rates are also a price subject to supply and demand, like any other item

    For interest rates, the market matches up the selling of "money" to the buying of "money".

    If I buy a car and make payments over time, then I also have to negotiate what a reasonable interest rate would be.

    If interest rates are high, we tend to save more. We will still buy the car, but only after we have saved for it.

    This increase in the supply of loan money (we increase our savings) and decrease in the demand for loan money (we do not buy the car on credit) will bring the interest rates back down.

    If interest rates are low, then we save less. Instead of saving, we may get a loan in order to have the car now.

    This decrease in the supply of loan money and increase in demand for loan money will bring the interest rates back up.

    In short order, the free market settles upon a stable interest rate.

    However, with the introduction of a central bank like the Federal Reserve, the central bank takes control of the interest rate. It has such a massive control of the money supply, that it alone, all by itself, can raise and lower the interest rate at will.

    And so, in theory, with a loving and benevolent Fed Chairman, each time the economy starts to slip off, the medicine from the Fed is to lower the interest rate and get people borrowing, and hence, spending again.

    In theory, if the economy gets a little drunk on its own excesses, the Fed can raise the interest rates to sober everyone up.

    And we all live happily ever after.... we all know, we do not live happily ever after.

    The Fed starts to play games with the economy and creates huge discrepancies between what people want to buy and what they want to save.

    The tendency is for the fed to keep interest rates lower than what the supply-and-demand interest rate would be.

    And the Fed loves to keep a little inflation going on the side.

    Together, they spell disaster.

    Few people save years for a new car only to pay for that car down the road with deflated dollars (inflated car price). Instead, we are enticed to buy today with un-inflated dollars.

    And to double the problem, if the Fed also takes the interest rates below the normal set-point, then we allow ourselves to get into a little more debt than we would normally be comfortable with.

    The artificial bubble has been created.

    After a short while, all the ones who took advantage of the cheap loans have done so and are enjoying their new purchase.

    They start paying off their note and enjoying their purchase -- but they are not purchasing anymore items.

    The fed is asked to lower the interest rate again, so as to spur on the economy some more.

    Again, the more cautious buyers come out to take advantage of the lower interest rates.

    Each time, a lower and lower interest rate is needed to spur on the buying, until everyone realizes that the bubble has grown too large.

    Too late -- It has to burst.

    At this time, a lower interest rate from the Fed is laughed at. No one is left who has money to buy anything. And all the notes have to be paid back before more spending can resume.

    We hunker down into a recession and there is nothing that the Fed can do about what it has created.

    This time the federal government is called in to spend more, give more unemployment checks, give out more food stamps, start a war to "employ" young men, etc.

    Here is the subtle little secret most do not know. With an artificially low interest rate, one can get an artificially huge home, and as everyone bids on these home, the home prices go up. In other words, more money equates to a more expensive home. Hence, artificial loan money becomes artificial home prices.

    For this Greater Depression we are entering, Americans tried to buy homes that we could not possibly afford. We were all stretched to the max in debt. Homes were overpriced.

    The proverbial "straw that broke the camel's back" was the huge surge in gasoline prices in the summer of 2008. All of a sudden, people were confronted with either making their house payments or not having enough cash to fill their huge SUVs for work.

    People started to sell their cars and their homes, with the market trying to readjust home prices back to normal.

    The only rabbit the Fed could pull out of their hat was an even lower interest rate and even more spending -- Both tried and both failed.

    Hoover had the exact same problem with the bubble created during the Roaring 20's, and he tried the exact same "fixes" that George "Hoover" Bush tried.

    Obama is here to implement the exact same "fixes" which FDR implemented.

    WWIII awaits us in 2020 with Obama siding with another Marxist Stalin.

    History does repeat itself.

    Solution to the Fed?

    For the value of interest rates, abolish the Fed and let the free market laws of supply and demand determine the ongoing interest rate.

    For the value of money, abolish the Fed, return to a principle of "nothing but gold and silver and let the free market determine what the supply and demand value of money in relation gold is in relation to cars and homes.

    You can read further at Solutions.
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    The Christian Solution ©             First Release: March 15, 2008