Friday, October 23, 2009

Economic Thought For The Day

The Great Depression was ended by WWII, not by any monetary policy considerations of the administration of the time. WWII ended it not by upping military production (which is just more government stimulus), but because the rest of the world's major manufacturing base was destroyed, leaving the US/Canada to pick up the slack for the world. Our still intact production lines had the rest of the developed world as consumers.

Now? Well, unless you see another global war where the "West" remains untouched coming, it'll take some old-fashioned time and common sense to restore financial stability.

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