What of Michael Hudson's observation about debt-deflation and gold?: "Notes on Bernanke's Apologia for QE2," By Robert Higgs | The Beacon

Notes on Bernanke's Apologia for QE2 | The Beacon

Tom Usher commented or added the following:


"The period of fastest economic growth in U.S. economic history, from the War Between the States to the late 1890s, was a period of secular deflation. Indeed, for centuries, in many countries, deflation, not inflation, was the rule in combination with economic growth."

I am most interested in this statement along with this one by Michael Hudson:

"Critics of the Obama-Bush agenda recall how America's Gilded Age of the late 19th century was an era of economic polarization and class war. At that time the Democratic leader William Jennings Bryan accused Wall Street and Eastern creditors of crucifying the American economy on a cross of gold. Restoration of gold at its pre-Civil War price led to a financial war in the form of debt deflation as falling prices and incomes received by farmers and wage labor made the burden of paying their mortgage debts heavier. The Income Tax law of 1913 sought to rectify this by only falling on the wealthiest 1% of the population – the only ones obliged to file tax returns. Capital gains were taxed at normal rates. Most of the tax burden therefore fell on finance, insurance and real estate (FIRE) sector."

Scott Rickard

Thank you for posting. Shared.

Scott Rickard

Thank you for posting. Shared.

Tom Usher

Hi Scott,

I saw over on your Facebook Wall that you come down more on Michael Hudson's side in this debate. So do I.

The Libertarian Capitalists and Gold Bugs just ignore where the real Populists were coming from.

Unfortunately, the "Progressive" income tax ended up being turned against the people by the banking oligarchs — the bankster plutocrats.

It's a real error for Libertarian Capitalists to fall for the idea that all Progressives are ill willed.

The Plutocrats use both the Libertarian Capitalists and Progressives against the common good.

The plutocratic mind is the chief enemy of the common good. It is the most selfish mind-set there is. Rabid militarism and other forms of depravity spring from it as from no other.

Tom

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  • Tom Usher

    About Tom Usher

    Employment: 2008 - present, website developer and writer. 2015 - present, insurance broker. Education: Arizona State University, Bachelor of Science in Political Science. City University of Seattle, graduate studies in Public Administration. Volunteerism: 2007 - present, president of the Real Liberal Christian Church and Christian Commons Project.
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