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MERVYN KING: “WORST CRISES SINCE 1930s”

By Pete Moore On October 7th, 2011

Hugh Hendry did suggest we should panic early last year.

How bad is it when Mervyn King, the State Economic Commissar, announces that “the world is facing the worst financial crisis since at least the 1930s “if not ever” – ? I’d suggest it’s very bad indeed, as bad as the Austrians suggested all along while the ministers and PhD economists assured us that “recovery summer” is here (or was there in 2010), that if we just spend a little more money all will be well, that just printing a few more billions will lead us to the sunlit uplands of economic redemption.

Says King: “This is the most serious financial crisis we’ve seen, at least since the 1930s, if not ever. We’re having to deal with very unusual circumstances, but to act calmly to this and to do the right thing.” These circumstances are not unusual. Ludwig von Mises explained the outcome of inflationary booms decades ago:

True, governments can reduce the rate of interest in the short run, issue additional paper currency, open the way to credit expansion by the banks. They can thus create an artificial boom and the appearance of prosperity. But such a boom is bound to collapse soon or late and to bring about a depression. 
– Omnipotent Government

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.
– Human Action

What fortunate people the Americans now are. We can only hope that one day the likes of Hannan (see above link) can wrest some economic control from the hopeless Osborne and his like. Much sooner, Americans have the opportunity to advance to power a Misesian scholar, an intellectual giant among pygmies, a man who foresaw economic catastophe and warned those around him. This is that man in October 2008 –

We’ve seen enough from the snake-oil economists, the Keynesians and the inflators. I’d suggest that now is the time to listen to those who know what must be done.

20 Responses to “MERVYN KING: “WORST CRISES SINCE 1930s””

  1. Phantom will be first to tell us that Mervyn King is wrong, and that Ron Paul is even more wrong: there is no depression!! There is no depression because Phantom is doing well.

    The reality is that there is a depression and it will be impossible to escape until the US and UK re-industrialise and take the power of creation of currency and credit out of the hands of the banking coterie which runs such affairs in its own interests and not in the interests of the host nation. For clarification, I’m doing quite well but I’m not stupid enough to think that just because I’m all right, Jack, everybody else is too.

  2. Great post Pete.

    The end is nigh and it will be very ugly. Soup kitchens will be busy.

    If things are improving by 2015 that will be a result, but a full-blown trade war is now a distinct possibility, in which case all bets are off.

  3. RON PAUL!

  4. He also spoke to the John Birch Society for their 50th Anniversary that month.

    Sorry, he has some good points but they drown in his nutty ones.

  5. There is an interesting summary of Ron Paul’s political beliefs here.

    Among the highlights:

    He is anti capital punishment and anti war – he opposed the war in Iraq as well as Afghanistan.
    He opposed the Patriot Act
    He is opposed to use of torture
    He is opposed to “the war on drugs”
    And of course he is opposed to the money-printing scam that is the Fed, and all the Wall Street bailouts and “stimulus” efforts of both Bush and Obama.

    It’s interesting that he is seen as an arch-conservative today. Most of the above positions would have been seen as classically liberal / libertarian a few decades ago.

  6. He’s also opposed to landmark Civil Rights legislation & abortion, so no, a classic liberal he ain’t.

  7. From the Wiki link:

    “Paul was critical of the Civil Rights Act of 1964, arguing that it sanctioned federal interference in the labor market and did not improve race relations. He once remarked: “The Civil Rights Act of 1964 not only violated the Constitution and reduced individual liberty; it also failed to achieve its stated goals of promoting racial harmony and a color-blind society”.”

    That does not make him a Klanner.

    As to abortion, many “liberal” Catholics are equally convinced that life starts at conception and that abortion is murder in all circumstances.

  8. Peter – In the Klan, no. Supporting segregationist outfits like the John Birch Society – yes.

  9. Mahons –

    The John Birch Society is an American political advocacy group that supports anti-communism, limited government, a Constitutional Republic and personal freedom.

    I can see why you think they’re a nutty bunch.

    I’m sure you didn’t mean to mislead over his view on abortion. It’s easy to repeat falsehoods when the media does so purposely. Now he does believe that life begins at conception and that abortion not only kills but also devalues life. I don’t doubt that bringing thousands of lives into the world shapes his view.

    However he believes abortion is an issue for the states, not the federal government. He wouldn’t impose his view on everyone else and, being a consistent constitutionalist, he would follow the highest law. He thinks Roe vs Wade should go and that the states ought to legislate seperately.

    I know, his consistency and intellectual honesty is astonishing.

  10. Mahons

    Ron Paul has no record of ever being a segregationist. The more recent position of the JBS is close to Ron Paul’s position, and probably explains why he accepted an invitation to address them:

    “The society repeatedly opposed overseas war-making, although it is strongly supportive of the American military. It has issued calls to “Bring Our Troops Home” in every conflict since its founding, including Vietnam. The society also has a national speakers’ committee called American Opinion Speakers Bureau (AOSB) and an anti-tax committee called TRIM (Tax Reform IMmediately).[47]…..

    The Society has been active in supporting the auditing[48] of, and aims to eventually dismantle, the Federal Reserve System. The JBS believes that the U.S. Constitution gave only Congress the ability to coin money, and did not intend for it to delegate this power to a banking monopoly, or to transform it into a fiat currency not backed by gold or silver.”

    Link here

  11. Pete – find out who financed the John Birch Society. You’ll find that it was established by Nelson Rockefeller and was designed to fail to achieve any of its professed aims. Nonetheless, a useful diversion.

  12. Pete – The John Birch Society has been a bunch of far far right cranks. Well known for their racists views. William F. Buckley led the charge of knockign them out of the true cosnervative movemetn decades ago.

    Paul is opposed to abortion (like I wrote) so stuff your repeating falsehood accusation.

    Peter – The JBS is the home of some of our true nutters, however they try to clean up their act.

  13. Allan

    Surely not another conspiracy 🙂

    And it’s Peter, not Pete.

  14. Sorry Allan. You were addressing Mr Moore, not me.

  15. Thanks Mahons.

    I must say that the anti-abortion thing leaves me cold. Women must have the right to choose, end of.

  16. Mahons –

    My accusation of your misleading statement remains unstuffed.

    Ron Paul opposes abortion, but that’s just a part of his opinion. We’re talking of abortion in a political context and he believes it is a state issue which ought to be left to the states.

    Given that it is also a moral issue, yet he would not impose his morality on others, it’s typically generous and liberal of him as well as intellectually honest.

    What a great man your next president is.

  17. Pete

    So I assume that Ron Paul’s view is that if (say) Mississippi bans abortion (shock), then its women can go to (say) Florida? And if all 50 states decide to ban abortion then the woman should go to Canada? Just like the women of Ireland (both jurisdictions) have to go to Britain?

    Yeah, way to go.

  18. Pete – It is stuffed my son. He hasn’t a chance.

  19. I was reading USA Today (two days ago when I was in Denmark). There was a lengthy report on the Republican contest but absolutely no mention of Ron Paul – not even a critical one. All other candidates were discussed and that is unlikely to be mere chance. It means that Ron Paul is clean and untainted by the corporations. Money he raises comes from people and from ‘corporate people’ as Mitt Romney’s does.

  20. Oops – that should be ‘not from corporate people’ noting that Romney considers corporations to be people. In fact, corporations used to require to have a charter from the state to be allowed to operate, and the charter would only be granted if the corporation could show how its activities are of benefit to the state.needless to say, Rockefeller’s corporations bribed lobbied politicians to nullify that requirement (very onerous in the case of the Rockefeller empire) and now we are where we are: Congress almost wholly-owned by the Fortune 500 (pharmaceuticals, oil, armaments) with the exceptions of Ron Paul and Bernie Sanders.