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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: maceng2 who wrote (43014)	9/10/2002 9:56:41 AM
From: Ilaine	Read Replies (1) \| Respond to of 281500

Sure you can create fiat money in a gold backed currency. By definition, this is incorrect. Fiat money has no backing at all. Adolph Miller of the FRB subsequently testified to the Senate Banking Committee in 1931 that this episode constituted "the greatest and boldest operation ever undertaken by the Federal Reserve System and, in my judgement resulted in one of the most costly errors committed by it or any other banking system in the last 75 years." Adolph Miller was Hoover's man on the Board of Governors of the Federal Reserve when Hoover ordered the Fed to stomp on the stock market "bubble." Naturally, Hoover and Miller did not want to take the blame for starting the Great Depression, so they blamed it on Benjamin Strong, who was conveniently dead and unable to defend himself. I realize this is all anathema to hard money advocates. You guys have been predicting the return of the Great Depression for years now. So far, ya'll have been wrong. I think you will continue to be wrong. I agree with Greenspan. Stomping on stock market bubbles causes more harm than good. The link below is to a short essay I wrote about stomping on bubbles -- unfortunately it doesn't work right in Netscape. members.cox.net