Overview of factors Major factors that can have a huge economic impact, short-term and long-term, are the implementation of government policies, and the actions of the Federal Reserve.
Obviously, there are many factors, major and minor, that can affect an economy.
It can be a natural disaster, a war, trade policies, unemployment, availability of natural resources, and so on.
Economic philosophies The two main schools of thought are the Keynesian philosophy, and the Austrian philosophy.
Keynesian's believe that economic intervention, such as expanding the supply of money, and lowering interest rates, will help smooth out the volatility of free markets.
Austrian's believe the free market should be allowed to correct itself, and weed out the excess that has failed.
They also believe in sound money, limited government, low taxes, and personal responsibility.
Economic freedom, or the lack of, is what really affects the economy.
History tells us what works The nineteenth and early twentieth century produced the greatest growth of productive capacity, and living standards the world has ever known.
The United States was at the center of this amazing time of true free market capitalism.
The catalyst for all this success was individual rights, and limited government.
Unfortunately, we are currently doing the exact opposite of this successful formula.
Why our current economy is not doing well As of this writing in June of 2011, the United States has fiscally dug itself a hole the size of the Grand Canyon.
The national debt is soaring, massive amounts of money have been printed out of thin air, the Fed Funds rate has been near zero, for well over 2 years.
All of this has caused the U.
S.
Dollar to lose an incredible amount of it's buying power, which directly translates into inflation.
Over many decades, heavy regulations, along with high taxation, also have been major destructive forces.
These unnecessary restrictions on true capitalism is what affects the economy big time.
Something to think about Back in 1913 the Federal Reserve came into being, and created a Ponzi scheme for the dollar.
Today's U.
S.
Dollars are nothing but creations of an electronic printing press.
They are instantly produced at the government's demand.
They are backed by nothing at all.
Actually, it isn't even a U.
S.
Dollar.
It is a Federal Reserve Note, masquerading, illegally, as a U.
S.
Dollar.
These Federal Reserve Notes are given to the government in exchange for an interest-bearing government bond.
Guess what? The primary means to pay for the interest on these bonds is to borrow more, and more bank notes.
This is the vicious cycle the United States is currently in.
It ultimately ends with the complete destruction of the currency, and the bankruptcy of the nation.
Kennedy connection In 1963, President John Fitzgerald Kennedy tried to end this madness, concerning the Federal Reserve.
This is truly something to think about.
It is amazing what all affects the economy.
The Kennedy assassination may well have affected it the most, and changed history in a way very few people understand.
Obviously, there are many factors, major and minor, that can affect an economy.
It can be a natural disaster, a war, trade policies, unemployment, availability of natural resources, and so on.
Economic philosophies The two main schools of thought are the Keynesian philosophy, and the Austrian philosophy.
Keynesian's believe that economic intervention, such as expanding the supply of money, and lowering interest rates, will help smooth out the volatility of free markets.
Austrian's believe the free market should be allowed to correct itself, and weed out the excess that has failed.
They also believe in sound money, limited government, low taxes, and personal responsibility.
Economic freedom, or the lack of, is what really affects the economy.
History tells us what works The nineteenth and early twentieth century produced the greatest growth of productive capacity, and living standards the world has ever known.
The United States was at the center of this amazing time of true free market capitalism.
The catalyst for all this success was individual rights, and limited government.
Unfortunately, we are currently doing the exact opposite of this successful formula.
Why our current economy is not doing well As of this writing in June of 2011, the United States has fiscally dug itself a hole the size of the Grand Canyon.
The national debt is soaring, massive amounts of money have been printed out of thin air, the Fed Funds rate has been near zero, for well over 2 years.
All of this has caused the U.
S.
Dollar to lose an incredible amount of it's buying power, which directly translates into inflation.
Over many decades, heavy regulations, along with high taxation, also have been major destructive forces.
These unnecessary restrictions on true capitalism is what affects the economy big time.
Something to think about Back in 1913 the Federal Reserve came into being, and created a Ponzi scheme for the dollar.
Today's U.
S.
Dollars are nothing but creations of an electronic printing press.
They are instantly produced at the government's demand.
They are backed by nothing at all.
Actually, it isn't even a U.
S.
Dollar.
It is a Federal Reserve Note, masquerading, illegally, as a U.
S.
Dollar.
These Federal Reserve Notes are given to the government in exchange for an interest-bearing government bond.
Guess what? The primary means to pay for the interest on these bonds is to borrow more, and more bank notes.
This is the vicious cycle the United States is currently in.
It ultimately ends with the complete destruction of the currency, and the bankruptcy of the nation.
Kennedy connection In 1963, President John Fitzgerald Kennedy tried to end this madness, concerning the Federal Reserve.
This is truly something to think about.
It is amazing what all affects the economy.
The Kennedy assassination may well have affected it the most, and changed history in a way very few people understand.
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