The Quickest Way Out of an Economic Crisis

The answer is from U.S. history--1920-21.

Did you know we had a Depression in 1920? It only lasted a little over a year. By August of 1921 the economy was roaring again, and that led to what is known as the 'Roaring 20s' when prosperity spread throughout every sector of the economy.

Columbia Conservative Examiner describes how we got out of it so quickly.

HINT--the government did the exact OPPOSITE of what we are doing now!

"There Will Be Blood"

Harvard author and financial crisis guru Niall Ferguson has landed with a thud in Ottawa, spreading messages that could make even the most confident policy makers squirm.

The global crisis is far from over, has only just begun, and Canada is no exception, Mr. Ferguson said in an interview before delivering a presentation to public-policy think tank, Canada 2020.

Policy makers and forecasters who see a recovery next year are probably lying to boost public confidence, he said. And the crisis will eventually provoke political conflict, albeit not on the scale of a world war, but violent all the same.

“There will be blood.”

The entire article, published in the Globe and Mail, takes a rather grim approach to the chances of economic recovery this year, contrary to the rhetoric of late by Barack Obama and some government economists.

With GM on the brink of bankruptcy and shutting down most of its factories for the summer, and with Chrysler definitely headed to bankruptcy, Ferguson's prediction seems to hold merit.

'09 Predictions: Saving Your Financial Neck

The issue, my dear readers, is not how bad things get in 2009 but how prepared we are to deal with them.

I am realistic enough to know that 2009 doesn't look very good politically and financially. But I am optimistic enough to know that the prudent ones can prepare for what's ahead and act accordingly.

Financial survival will be the key in 2009.

Karl Denninger, financial guru, made the most accurate predictions concerning the economy in 2008 with a near-perfect record. He has assessed where we are and where we are headed in 2009.

And he has some highly valuable words to the wise concerning how to deal with it.

Here is Denninger's assessment of where we are and now we got here:

In short, essentially nothing positive has been done and a lot of damage has been inflicted on everyone in America out of hubris, fraud and avarice.

We now are "discovering" what I have written about for more than a year first-hand - the so-called "growth" over the last seven years has all been a fraud, instead being nothing more than additional debt. Ponzi-finance has taken over every area of our economy, from government to private business, and has run to the natural limit of "the greater sucker", now leaving all of the people beguiled and bedeviled exposed as the naked-swimmers that they are.

There has been zero push for accountability and truth throughout the system. Not among our so-called "leaders", not among the bankers, not among the political or economic elite. All are focused on trying to keep the impossible going.

Denninger outlines what needs to be done on a national scale and what we as individual citizens can do to protect ourselves from financial ruin. Read the entire thing at Western Rifle Shooters Association.

An Ominous Trend

When Italy nationalized banks in 1933, “the architects who designed the system envisaged it as temporary,” she says. “It was in place until the end of the 1990s.” More recently, the Japanese government injected capital into banks to get them to lend to big corporations, keeping alive “the zombie companies that economists talk about,” she says.

Even as Hank Paulson, Barack Obama, Harry Reid, Nancy Pelosi, Barney Frank, Chris Dodd, and President Bush assure the public that the trend toward government control of business is 'temporary,' the lesson from history shows the opposite.

An article at Bloomberg entitled, 'Saving Capitalism is No Sure Thing as Statism Undermines the Economy,' presents a sobering, clear-headed perspective on the current trend against free markets in favor of socialistic concepts that form the core of centralized government control.

The problem is that history proves that such government interventionism does nothing to prevent economic distress but prolongs it.

The other lesson from history is that once governments gain such control over free enterprise they are very reluctant to relinquish that control.