Talk about a ‘deficit of trust’; the DOW drops almost 513 points and everybody is wondering what is causing the market selloff. I humbly propose a theory; Americans are just done with politicians that have shown they have no clue, no desire, and no sense of urgency to actually fix the economy when the proper tools exist. Everybody is just freakin’ tired of watching their savings evaporate, losing their jobs and homes, watching food and gas prices go through the roof, and politicians going on vacation after sinking us almost $3 TRILLION more into debt.  They have finally caught up with tea party patriots and stopped denying that you just can’t fix stupid.  Americans are taking their cash, stuffing the mattress, buying gold and guns….and waiting for someone with half a freakin’ clue to show up with the gravitas to herd the congressional sheep in the proper direction.  We are going to wait this government out with a economic revolution.

The $840 BILLION in capital lost in the markets yesterday is definitely the last straw for Americans who just lost their mind over the last two months of debt ceiling circus when they didn’t want the debt ceiling raised AT ALL,  and I am expecting the selloff that continued with the Asian and European markets to start full blast when the market opens this morning; no matter the pathetic jobs report. That report will exacerbate the selloff if it is as bad I am expecting it to be.

Judge Napolitano On Austrian Economics that create prosperity:

Peter Schiff On The Market Selloff:

Here’s what we can do based on history (because spending trillions on stimulus, clunkers, green tech, windows, and assorted government interventional bullshit hasn’t helped):

The Harding/Coolidge Prosperity of the 1920’s by Glen Abel

On March 4, 1921, President Woodrow Wilson relinquished the office of the presidency to Ohio Senator Warren G. Harding. The state of the union was poor. “With the exception of Lincoln, probably no president in our national history has taken office with as pressing a burden of unresolved questions.” Those were the words of the Nation of February 1921. The national economy was in the depths of a depression with an unemployment rate of 20% after a runaway inflation.

On April 12,1921, President Harding went before a contentious Congress and presented his program for economic recovery which he called “A Return to Normalcy”. Harding’s normalcy program consisted of the following measures.

1) A call for a national budget program (which was vetoed by his predecessor).
2) National debt reduction
3) Tax reduction
4) An emergency tariff to protect American industry and farm commodities.
5) Farm relief legislation (farm bankruptcies were up 20% from 1914).
6) Immigration restrictions to protect American jobs.

President Harding pushed hard for his program and got it passed by Congress in 1921. By late 1922, the economy began to turn around. Harding did not live to see it, but his normalcy program proved to be the foundation that Coolidge prosperity was built on. Harding’s successor, Calvin Coolidge had the wisdom to stay the course and build on Harding’s program. The American people were the beneficiaries of the unprecedented prosperity of the 1920’s. Unemployment was pared from its high in 1921 of 20% to an average of 3.3% for the remainder of the decade. The misery index which is a combination of unemployment and inflation had its sharpest decline in U.S. history under President Harding. The Gross National Product averaged 7% from 1924 to 1929. Wages, profits, and productivity all made substantial gains during the 1920’s. Harding slashed federal spending by two billion from Wilson’s last year and Coolidge maintained that spending level of 3.3 billion per year for the rest of the decade. The Harding-Coolidge tax cuts produced increased revenue that went to cut the national debt left by Wilson by one-third.

The 1920’s saw the tax burden of middle Americans decrease while most lower income Americans were relieved of their tax burden altogether. By 1930, their was a sharp increase in the number of Americans who could afford what were then middle class luxuries such as ranges, ice boxes, radios, vacuum cleaners and other household appliances. There was even an increase in the amount of time Americans found for recreation and entertainment.
The 1920’s saw the tax burden of middle Americans decrease while most lower income Americans were relieved of their tax burden altogether. By 1930, their was a sharp increase in the number of Americans who could afford what were then middle class luxuries such as ranges, ice boxes, radios, vacuum cleaners and other household appliances. There was even an increase in the amount of time Americans found for recreation and entertainment.

Many of our historical elite like to characterize the 1920’s as the decade of greed and Harding and Coolidge as symbols of greed. This is simply not the truth. During the 1920’s, neighbor still helped neighbor and charitable organizations still cared for the poorest of our lot. Few events more characterized the generosity of the American people than the joint private- government relief effort in 1921-1923 to help the victims of famine in Soviet Russia (a nation to which we did not have diplomatic relations). Nearly 30 million citizens of Soviet Russia faced starvation and it was the American people who answered the plea for help and saved countless lives.

Many scholars and historians blame the Harding-Coolidge economic program for the stock market crash of 1929 as well as the great depression. The stock market crash of 1929 was not the calamity Americans have been made to believe. There were no major business or bank failures resulting from the crash. The crash of 1929 occurred in October and by December of that year the economy was once again calm and remained so for the next six months. The depression did not occur because of the stock market crash. There were several errors on the part of policy makers that plunged our economy into a deep depression. The inaction on behalf of President Hoover, New York Governor Franklin D. Roosevelt, and the Federal Reserve Board to curb over-speculation proved very unwise. The Smoot-Hawley Tariff Act of 1930 which President Hoover supported and signed into law helped to paralyze global commerce. The huge tax increases signed into law by Presidents Herbert Hoover and Franklin D. Roosevelt retarded economic growth, ballooned the national debt, and sunk the nation deeper into the great depression. If Presidents Hoover and Roosevelt had moved to curb over-speculation and otherwise continued the economic policies of Harding and Coolidge, the nation may have been able to have avoided the great depression. Most certainly, the depression would not have been as deep and prolonged as it was.

Despite what our historical elite have professed to us, the economic policies promoted by Harding and Coolidge during the 1920’s created a level of prosperity our nation would not see again until the 1980’s. It is long overdue for Harding and Coolidge to receive the acclaim they deserve for rescuing America from economic depression and returning it back to normalcy.