Comments on: Why Today’s Crisis Is More Like 1919 Than 1929 http://www.contrarianprofits.com/articles/why-todays-crisis-is-more-like-1919-than-1929/7903 Access market-beating ideas from the world's top investment gurus on stock market investing, the gold market, ETFs, Forex trading and real estate values. Tue, 24 Nov 2009 15:08:08 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Jack http://www.contrarianprofits.com/articles/why-todays-crisis-is-more-like-1919-than-1929/7903/comment-page-1#comment-41716 Jack Sun, 31 May 2009 02:33:10 +0000 http://www.contrarianprofits.com/?p=7903#comment-41716 Joe, You mentioned: "In addition to a set of problems similar to those of the 1919 market, we now have a horribly over inflated fiat currency. " However, in 1919 we also had a horribly inflated currency. The author points out that the farmland and commodities frenzy was spurred by an inflationary gold boom, and that the vastly expanded gold supply of those years acted like a money pump. In other words, we also had inflation back when we were on the gold standard. As people discovered more and more gold, they cashed the gold in for currency. Thus, the government had to print new money in exchange for the new gold, which resulted in more money in the system, which equals inflation. Joe,

You mentioned:

“In addition to a set of problems similar to those of the 1919 market, we now have a horribly over inflated fiat currency. ”

However, in 1919 we also had a horribly inflated currency. The author points out that the farmland and commodities frenzy was spurred by an inflationary gold boom, and that the vastly expanded gold supply of those years acted like a money pump.

In other words, we also had inflation back when we were on the gold standard. As people discovered more and more gold, they cashed the gold in for currency. Thus, the government had to print new money in exchange for the new gold, which resulted in more money in the system, which equals inflation.

]]> By: Joe Goodman http://www.contrarianprofits.com/articles/why-todays-crisis-is-more-like-1919-than-1929/7903/comment-page-1#comment-6215 Joe Goodman Wed, 05 Nov 2008 20:31:47 +0000 http://www.contrarianprofits.com/?p=7903#comment-6215 Nice article Justice. Well researched and as usual, you seem to have your facts straight. But I believe there is a significant factor not mentioned in your article. In 1919, we had a currency backed by gold. Now we have a currency backed by "The Full Faith and Credit of the Government of the United States". I'm no economist and I can't say specifically how this makes today's situation different. Still, I don't think one needs a degree in economics to know that it does. In addition to a set of problems similar to those of the 1919 market, we now have a horribly over inflated fiat currency. That can't possibly improve our chances. Nice article Justice. Well researched and as usual, you seem to have your facts straight. But I believe there is a significant factor not mentioned in your article. In 1919, we had a currency backed by gold. Now we have a currency backed by “The Full Faith and Credit of the Government of the United States”. I’m no economist and I can’t say specifically how this makes today’s situation different. Still, I don’t think one needs a degree in economics to know that it does. In addition to a set of problems similar to those of the 1919 market, we now have a horribly over inflated fiat currency. That can’t possibly improve our chances.

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