moonbat1775

The Economic Policies of Failure

"We could go back to Herbert Hoover or even further before the Federal Reserve Act, but do we want to?" - Steven H.

Nope. It turns out the problem has been a false choice between a dishonest/unstable but fast money system (FRB) and an honest/stable but slow money system (100% reserve gold standard).
There are alternative monies that are 100% honest and that will outperform FRB in all but the short run as you would expect when the honest compete against the dishonest.
The solution is two step:
1. Move from dishonest/unstable FRB to 100% reserve gold standard. This will stabilize the stock market. Now we are at honest/stable/slow.
2. Move from honest/stable/slow (100% gold standard) to 100% reserve equity backed monies (notice plural). We would then be at honest/stable/high performance. The market as a whole would only move up. The market would then be separate forever from the threat of FRB deflation.