Originally Posted by squealpiggy
The great depression was not caused by deficit spending or social welfare, it was caused by the collapse of the banks. Do you think that we would be in a better state now if the banks that were bailed out were allowed to collapse taking peoples' deposits with them?
Yes. What you are going to find is that the bail outs have increased debt and postponed and increased the problem. The bail outs have not solved the banking crisis it has delayed the inevitable. The $ and £ is losing it's value against real commodities. The reason gold has shot through the roof is because the wholesale printing of money (quantative easing) has flooded the system with new paper which erodes the value of your dollar. The bail outs are like a bankrupt spending on credit cards to give the impression of being solvent . All it has done is increase the rot,delayed the inevitable and made the inevitable worse..