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Thursday, November 19, 2009

We must break - I mean fix the economy

http://online.wsj.com/article/SB125864421370955721.html?mod=WSJ_hpp_MIDDLETopStories
Geithner Gives Urgency to Financial Reform

The same people who created the current economic mess, are complaining they don't have the ability to fix the problem. It is nice to know that the people who are trying to fix the economy never had a job, or never owned a business. This must give them great insight into how the system works. It is also good that they don't pay attention to anything happening around them, or their mind might get confused by the facts.

http://www.kitco.com/ind/Field/nov112009.html
Zimbabwe: A Fresh Start

Let's take a look at Zimbabwe and see if there is anything to be learned. Once Zimbabwe thought that the United States method of fixing the economy would work for them. Their central bank that manages their money started up the printing presses to pay for whatever they felt was necessary. They enacted regulations to force the business to act in a way that was approved by their government. It worked about as expected. Their money became worthless, and all business closed down.

So what happened?

When they realized the only value their currency had was in a fireplace, they abandoned their currency. When the government had no money, they were unable to pay people to enforce any of their regulations. So at this point, while they have no currency (they use other folks currencies), they have no business regulations, their economy has recovered.

Who would have thunk it?

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