Economic Foundations

``I believe that we're a resilient economy,'' Bush said. ``In the long run. I'm confident our economy will continue to grow because the foundation is solid.''

This is such an incomprehensible piece of rubbish quote that I am loathe to even begin and try to analyze it...But you know what a glutton for pain that I am so here goes...

First and foremost their is a drop of truth in the first part of the quote. Over the last 100 years since 1913 when the government took control with the Federal Reserve Banking Act and all of the socialist central economic planning that came with it, we have only had one worldwide depression and a small handful of recessions. It takes a lot of resiliency to remain in good shape when central planners are constanty tweaking and fiddling with the market. So while Bush was thinking that somehow the he and his planners we to credit for American economic resiliency, I would say that it probably has more to do with the remnants of a free market standing up to tremendous pressure to fall under socialist pressures.

As far as confidence in the economy's foundation though, it just begs the question: What foundation?!! Fiat currency, debt financed gov't, gov't funding huge amounts of unemployed and underemployed workers, huge trade deficits, budget deficits, etc. Which one of these elements of our economy is the foundation? The crashing dollar? The crashing stock market? The crashing housing market?

The last remnant of a foundation were shattered in 1971 when Nixon severed the ties to gold so that he was able to raise of debt load higher to finance more troops for Vietnam's civil war.

Without a foundation economies are left at the whims of the central economic planners. Having an administration who is unwilling to challenge our monetary policy will continually lead to questions like this? Infusions of capital, credit and additional regulations only artificially prop up a flawed system.

For further info google Mises, Friedman, Hayek.

Free people making free choices in a free world allows the maximum good for the maximum amount of people. All government interference leads to oppression.