A History of Economic Booms and Busts Video

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When an economy falls into a recession, we typically observe a cluster of people making similar investment mistakes. According to historian Stephen Davies, these investment errors occur because governments or central banks manipulate the supply of money. These manipulations place artificial downward pleasure on interest rates, creating false signals that entice individuals to invest in what end up being unprofitable ventures. Booms and busts are not a new phenomenon of this century, but rather, have occurred throughout history both in America and around the globe.

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At 1:32, socialists ...
At 1:32, socialists have a different answer to the question? "Why is it that so many people make the same investment mistake?" Because capitalism is inherently corrupt and evil, that's why!

yes, yes! that ...
yes, yes! that myth? just gets me every time!

See this guy's 3 ...
See this guy's 3 myths about the? Great Depression, where he pretty much agrees with what you just said.

... to 1932? REALLY ...
... to 1932? REALLY! .. That's a lie! ... Try 1947,? when FDR's policies were ended and reversed. Sheesh!!!

omg thank you ?
omg thank you ?

He says by actions ...
He says by actions made by governments. The he says the federal reserve. which is a private corporation. The banks cause the collapses, they fluctuate the money supply and their buddies get to buy companies for a fraction of actual cost, there for limiting the amount? of businesses to a couple REALLY BIG ones that can pay lobbyists to pay politicians to do what the corporation wants. Then get you to weaken government some more so they don't have to pay government as much to buy laws.

Yes, in a worst ...
Yes, in a worst case scenario. However the US isn't a? third world country. Food shortage hasn't exactly been a problem even in depression and I doubt it will be. But it will be much more expensive and being able to grow your own will make a big difference.

Yeah, but I think ...
Yeah, but I think it depends. Gold and silver aren't the only things worth having. I think a lot of people would want to have farmland access to food if it was a real crisis. Even moreso than gold and silver. Other tangible assets like oil and coal? will probably also be worth a lot.

oh lord people need ...
oh lord people need to get over precious metals being "the only true money" Money doesn't have to have a commodity backing it up, Money just has? to have people trust that they can use it to buy and sell.

You'll see it ...
You'll see it happen with US treasuries soon enough. Depends how long the federal reserve can keep the illusion? going.

How about this; the ...
How about this; the crash happens and we are in a state of war. Afterwards, we end the war, bring back troops and let them loose after they have beenbeen conditioned to obey order, and not just love their? country, but possibly die for it, that they become the hardened workforce that picks up the slack of an entitlement state.

I think this is the ...
I think this is the way it is going to play out: 1. US debt bubble bursts 2. more dollar manipulation 3. dangers of deflation, then inflation 4. dollar collapse 5. precious metal bubble starts, everyone buys 6. smart people? buy tangible assets with their gold & silver 7. economic disaster and major wealth transfer to people owning true money (gold & silver)

Check this out! ...
Check this out! Great introduction to Ron Paul! Spread it around! WhyRonPaul (dot) com?

The gold bubble ...
The gold bubble will burst? when better alternative investments begin to appear.

I'm going to agree ...
I'm going to agree to make myself look smart, oh? wait why is gold so expensive?

Thanks! That is ...
Thanks! That is what I always thought. It's nice to know that I? had a good understanding of this.

should have looked ...
should have looked at? the other posts:( too late u've been served

@natritious1 nope ...
@natritious1 nope this will not happen to gold not to this level. only if we fix our monitary policy will it go down. gold and silver are just reflections of? inflation for the most part. u will never see silver at 5 an oz. or gold at 300 an oz. rp2012

blah... get this ...
blah... get this bloke off and go interview peter? schiff.

Central Banks keep ...
Central Banks keep interest rates artificially low in order to temporarily stimulate the economy, with out seeing? how the boom is long-term unsustainable. When the Dotcom bubble burst in 2001, the FED artificially lowered interest rates with the goal of creating a Housing Boom to get out of that crisis - and it worked, until 2007 that is. Also, low rates are just one face of the problem: Credit expansion, a related but different Central Bank policy, has the exact same effect.

Actually gold and ...
Actually gold and silver have been holding a steady value over the last 800 years, that's why gold and silver can never be a "bubble". People the world over understand? the buying power of gold, so it's value doesn't change (much) but rather currencies are inflated against gold and silver.

Thats what I'm ...
Thats what I'm beginning to think. Silver and gold are massively UNDERvalued and are? no where near a bubble

It wont because ...
It wont because gold and silver? are of stationary value, its price only goes up because everything else is losing value.

There is truth to ...
There is truth to this, but it is not the whole truth. More realistically everyone knows they are? riding an unsustainable boom, but still think they can get away with it before the rug falls out. This is particularly true with the tulip example. Government exacerbates, but does not cause the recession (well, not true with the housing bubble, but usually true).

Translation: ...
Translation: Government should, for the most part, keep its filthy paws off? the free market and think about the incentives or disincentives it creates by its action when it does touch the free market!

? In my opinion, it ...
? In my opinion, it is because central banks are trying to spur the economy, to boost consumerism!

Great explanation!! ...
Great explanation!!!! Check this out! I tried to? tell this to some people around 2002 and they told me I was crazy!

Can you explain why ...
Can you explain why the central banks keep interest rates artificially low? I thought inflation targeting central banks would tend to raise interest rates in a? boom...

Controlling the ...
Controlling the rate of interest, isn't that price? control?

Only if government ...
Only if government stops inflating and the price of? gold and silver continue rising.