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“The Making of an International Monetary Crisis” is a very good article. I was a little bit taken back, amused I guess, when I read that it was essentially written in April 1973, somewhat at least. It is a good diachronic explanation on how we got into our current predicament.
I support libertarian views; I believe in the smallest possible governance. I believe in the concept of free market capitalism. I believe in an asset based monetary system of which gold is the leading contender. However, embedded in that belief are many caveats and concerns.
In this article, other than glorifying the benefits of free market and capitalism, I would agree with a monetary system valued on gold, a gold standard; I certainly am not in favor of counterfeit dollars, nonconvertible fiat money that’s only convertible for goods and services; the bank will not exchange our dollar for anything except in payment of a debt. Dollars valued based on the value of gold, or any other asset based system for that matter, would still not prevent greed, stupidity, and fraud from compromising its promise. An economic system based on a laissez faire paradigm, just simply is “pie in the sky” thinking that it works.
Because, no matter in what way anyone would proselytize the benefits of free market capitalism, the free market capitalism system failed us. In its simplest explanation, they failed us in their inability to self-regulate themselves. Greenspan was wrong when he thought they could, and even later admitted that that assumption was wrong. They, the free market capitalist, failed to self-police the actors in the financial markets and let greed, stupidity, and fraud reign.
I don't agree that "Reagan teamed up with some great advisors to return the US to prosperity and stability which served the world well for over twenty-five years;” certainly not when he was a player in getting us into the mess we are in now. He was an enthusiastic proponent for deregulation, and “trickle down” economics, for example.
Reaganism, in particular Reagonomics, is overly hyped, in my opinion. Supply side, “trickle down,” economics do not work. It has contributed to our economic decline. Supply side thinking essentially says that creative and entrepreneurial producers will create the things that they believe the consumer needs -- and will create and exaggerate the need through advertising and promotion: the advent of technological gadgets is a good example of creating a need/desire for human non-essentials; other remarkable examples are the old standby example of Valentines Day, Mothers Day … greeting cards, and of which Christmas is the prime example. It establishes the economic base for a borrow-owe rather than a save-consume consumer inculcation based on authentic human need, after which discretionary spending can take place.
Policy Makers as well as Capitalist have failed society.
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