How Government Cutbacks Ended Sweden’s Great Depression

[Skybird]

Something to learn from that.

LINK (http://mises.org/daily/6619/How-Government-Cutbacks-Ended-Swedens-Great-Depression)

[Ducimus]

Here in the US, outside of downsizing the military, the words Government and Cutbacks, will probably never be used in the same sentence. Quite the opposite has been happening, our government keeps getting bigger and bigger. Surveillance state, police state, welfare state, take your pick, we've got a little bit of everything.

[AVGWarhawk]

The government here in the states do not cut back anything. It is the same bait and switch we see every year. It all started with. "Read my lips. No new taxes." What he really meant to say, "Read my lips. No new taxes. We will just increase the ones we have." And this sir is how the US Government works their budget of which they have none. The supply is limitless.

[Ducimus]

It's limitless up until the point where the dollar and the financial system collapses.

Fun with numbers: http://www.usinflationcalculator.com/

The way we're going, It's not a question of if, but when it bottoms out, and the subsequent collapse that will ensue.

[Skybird]

Its not just the US. Over here as well. In some years, in Germany a constitutional "debt brake" will come into effect. But not only do they already now plan how to erode that, but before that time arrives they increase debts and spend like crazy. Last year Germany had the highest tax income ever in its history. But what happened? More debts than ever before were added to the existing ones. Spending like crazy.

ECB now considers negative interest rates. :dead: Their attempts to prevent deflation compares to taking drugs against raised temperature in case of a flu with mild fever - since these drugs help to reduce the temperature, they prevent the body from battling the infection,a dn so the illness takes longer to cure. The desire to create artificial inflation, compares to intentionally infecting the body with new bugs.

All natural mechanisms of the markets to correct the distortions implemented by economy planners, get prevented. Planned economy. One just has to love it. Not a compliment for me, but many years ago I even fell myself for it. Thankfully, I came to my senses again before needing to die as a total idiot.

https://www.youtube.com/watch?v=yyhtIg6V4o0

[Tribesman]

Something to learn from that.

LINK (http://mises.org/daily/6619/How-Government-Cutbacks-Ended-Swedens-Great-Depression)


Interesting link, no mention of the tax payer funded bailouts for the institutions which caused the bubble and crash.
No mention of the still high taxes.
No mention of the still high government spending.
Certainly no mention of joining a highly regulated market to ease trade.
Weird that von mises don't mention that isn't it.
So they have a high taxing, high spending, heavily regulated country with very generous welfare provisions and are holding it up as the way to beat a downturn.
On the face of it Sweden is being held up as a great example even though it goes directly against all the fundamental "values" the institute claim are the miracle economic answer:rotfl2:

[Jimbuna]

The government here in the states do not cut back anything. It is the same bait and switch we see every year. It all started with. "Read my lips. No new taxes." What he really meant to say, "Read my lips. No new taxes. We will just increase the ones we have." And this sir is how the US Government works their budget of which they have none. The supply is limitless.

We taught you well all those years ago when we hung around :)

[AVGWarhawk]

It's limitless up until the point where the dollar and the financial system collapses.

Fun with numbers: http://www.usinflationcalculator.com/

The way we're going, It's not a question of if, but when it bottoms out, and the subsequent collapse that will ensue.

I'm not buying the bottom out subsequent collapse in total during your and my lifetime.

[STEED]

How to prevent to bubble going pop, simple answer longer deeper recessions. Eyes down for 2017 people, of course even this will fail unless they come up with a new idea. They seem good at creating black holes all over the place at the moment.

[Ducimus]

I'm not buying the bottom out subsequent collapse in total during your and my lifetime.


Unless things change up on capital hill (not likely), i'm positive we are going to have an a economic and dollar crashing situation that is going to change life as we know it. However, WHEN? Who knows. I think the likelihood is high we will see it. However, as you say, we may not, i'm just saying there is a high likelihood we may.