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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (37206)	11/21/1998 4:32:00 PM
From: Amir Shalit	Read Replies (2) \| Respond to of 132070

Coby, I really don't recommend math competitions for kids. I have never been to one until I turned 17 but I had few friends that did. I did participate in hundreds of national swimming competitions as a kid as well fitness/waterpolo games. So yes, I graduated in math kind of late (21) instead of 16 but I have no regrets at all. Amir

To: Ilaine who wrote (37206)	11/22/1998 1:34:00 AM
From: Thomas M.	Read Replies (1) \| Respond to of 132070

radix.net Tarpley says that the Great Depression was intentionally triggered and exacerbated by the British central bank. Tom

To: Ilaine who wrote (37206)	11/23/1998 10:42:00 AM
From: Mike M2	Respond to of 132070

CB, my interest and knowledge of austrian economics is limited to the business cycle applying that knowledge to the stock market. To answer your first question The Constitution granted congress the power to issue money -not the Fed. The advantage of the gold standard was that it imposed limits on the inflation of money and credit. Prior to the creation of the Fed by congress we had periods of deflation but since 1913 we have had inflation with the exception of the 30's. see Ag's remarks about Fed policy during the 20's and his comments about the abandonment of the gold standard. fame.org There are many factors contributing to the Great Depression the most significant of which is the inflation of money and credit which took place during the 20's in the U.S. which spilled over into Europe and Latin America. American investors bought large amounts of foreign securities which eventually lost much of their value. Like today the excesses were global in scope. The monetarists believe that the Great Depression was caused by policy mistakes made after the crash while the austrians believe that bust is the inevitable result of the excesses created during the boom. The monetarists blame the Fed for allowing the banking crisis to develop creating a contraction in the money supply. They overlook the fact that in the 20's non bank financing through the securities markets and call money market was almost four times the volume of bank financing. The austrians cite the the heavy reliance on market financing and its excesses rather than bank financing as a major source of trouble. Corporations switched from bank financing to the securities markets. Looking at the current situation we see that bank deregulation and loan securitiztion has allowed the markets to create virtually unlimited credit beyond control of the Fed. I have to double check but if memory serves Wall St issued $1.4 TRILLION in new securites in the first six months on 1998. The current excesses seem to be the worst in history with loan securitization, yen carry trade, gold carry trade. Many economists seem to believe that the Fed can navigate us through these excesses the Austrians believe the bust is inevitable. I am siding with the Austrians -we shall see. Mike