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by SaulOhio on December 1st, 2010
Because it was overinflated in the first place. Thats what you get with central banking and fiat money. Even though we were on a gold standard through the 1920's, it was a mixed gold standard. England has gone off the gold standard, and was trying to get back on it, making the mistake of trying to set the price of gold at the same level it was before WWI. To help England with the resulting gold loss, America's Federal Reserve lowere dinterest rates, and that is what set off a speculative boom. Banks were motivated to lend more money, which causes the supply of money to grow through the fractional reserve system. Once inflation began to increase, the Fed raised rates to try to control it, and that is what caused all that new money to go back where it came from--nowhere.
What name was given to the Great Plains farmlands stripped of topsoil by drought& wind?
by Answerbag Staff on June 9th, 2010
| 1 person likes this
what were american economic interest on treaty of versailles?
by Buttaci_G on January 24th, 2011
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If it's not ok to ask rich people for money because they create the jobs, can I ask a rich person for a job?
by Mister_Bromide on September 22nd, 2011
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How could Obama really believe New-Deal type spending and regulation would not make a New-Deal type prolonged depression?
by More2Be on July 10th, 2011
| 1 person likes this
If another "Great Depression" were to occur during your lifetime, how would your life change from the way it is today?
by Chicago Lady on May 11th, 2011
| 4 people like this
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