QUESTION: Hello Martin,
You will have talked about again and again that J.P. Morgan needed to bail out the US Authorities within the late 1890’s with gold, which was US cash at the moment. Are you able to clarify to us how the US economic system may very well be sturdy at the moment when the US Authorities went broke accumulating tariffs on imports?
Chaz
ANSWER: The economic system was sturdy, it was the silver democrats who overvalued silver taking bribes from the silver miners. That led to the arbitrage silver was pouring into the USA and swapped for gold. The insolvency was not from home debt however from the overvaluation of silver, and gold was the worldwide settlement – not silver.
At the moment, we’re in a debt disaster. That is economically totally different. The Panic of 1896 was about international change and the Democrats attempting to inflate the economic system with silver as they’re nonetheless attempting at this time with limitless spending and no accountability. This led to their assault on the gold normal and the 1893 march on Washington that turned the Wizard of Oz. See:
