History has shown that poor economic conditions lay the foundation for dictators. Economic conditions gave appeal to Hitler’s messages of “morality,” “equal opportunities,” and “equal conditions in economic competition,” which led to his peacetime election. Left and right progressives have laid that foundation in the U.S. today.
Socialist ideals from Lasselle to Erzberger, who vowed, “In the future Germany the rich shall be no more,” fueled policies coupled with economic ignorance that pushed Germany toward price controls and trade barriers. The socialist-controlled parliament was solely responsible for the monetary policy of increasing the quantity of marks, bringing hyperinflation and depression. Treasury deficits were compounded by domestic social programs. Inflating the currency supply became the means to pay.
As a result of German propaganda, economic woes are blamed on the War Guilt Clause. However, many reparations were not enforced, and payment per individual income only maxed out at approximately 3.24 percent.
The U.S. government and Federal Reserve have led us on the same road to serfdom. The false belief in neutral money, artificial credit expansion, along with ignorance of the Cantillon effect and Gresham’s law, are pauperizing the middle class the same as 1920s Germany. When the velocity of money increases due to the world realizing we can’t service our debts without inflating the dollar to worthlessness, watch out. The sheeple will embrace a “fixer.”
-- Greg Larson - San Luis Obispo