[Jthomp76]

So if not for America would the liberalization of people and markes have happened later? Or was it already happening? In other words, is the U.S. responsible for freedom spreading throughout the world? It’s just crazy to think people lived in absolute poverty for all of history and then all of a sudden freedom and prosperity exploded. What triggered it?

[Jthomp76]

Following up…

[Jthomp76]

I get the same argument from people and never have a good rebuttal. Dr Herbener, could you give us the readers digest answer?

[Jthomp76]

So did the gold inflows have anything to do with our troubles?

[Jthomp76]

Also, I don’t even understand the argument even if it were true. Why would an inflow of gold be bad for an economy?

[Jthomp76]

Also, I don’t even understand the argument even if it were true. Why would and inflow of gold be bad for an economy?

[Jthomp76]

Mehrling says the fed raised rates in 1931 during a deflationary period causing gold inflows. Is this true?

[Jthomp76]

Ill definitely read chapter 23 but I think the argument is that the US forced all the major currencies off the gold standard causing the depression. Mehrling says many countries went back on the gold standard after WWI. Is this wrong?

[Jthomp76]

I read the chapter and while interesting Im not sure it answers my question. The theory I just learned (Perry Mehrling’s online class: https://class.coursera.org/money2-001/lecture/61) states that as more countries went on the gold standard after WWI, demand for gold increased dramatically. These pressures were deflationary and Rather than revaluing, the US kept the price parity causing prices to fall. Additionally their rate hikes in 1931 caused massive gold inflows causing other countries to go off the GS, thus collapsing the GS system. These two factors caused the Great Depression according to the theory. Do Austrians agree with this?

[Jthomp76]

Check out previous post on this forum, “Fed Balance Sheet” for more info.

[Jthomp76]

Can you explain why banks aren’t making loans?

[Jthomp76]

Wow, so Schiff and a lot of other libertarian economists are wrong. Maybe this is partially why inflation isn’t as bad as predicted by many?

[Jthomp76]

My main question is does the fed necessarily print or create the money out of thin air each time it purchases these treasuries and MBSs? All we read in Austrian circles is that this is the case. Are you saying sometimes they do not simply create the money to make these purchases? Rather they use reserves they acquire through the sale of assets or reverse repos?

[Jthomp76]

So the fed is not printing $85 billion per month as we keep hearing?

[Jthomp76]

Could it be that our high time preferences and trade deficits are a result of these policies? In other words maybe they are not the disease but a symptom? Are we not consuming a lot more than we normally would (or should) absent some of some of these conditions you mention? Is it ever possible to consume too much? Is it not sometimes healthier to save?

Sorry, I’m having a tough time grasping this. I appreciate your time!

[Author]

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