BR readers must read Niall Ferguson’s “The Ascent of Money: A Financial History” (2008).
This historian, I say again – historian, nails the current economic crisis when he is writing back in 2007. Calling it blow by blow and laying out the options so accurately validates his credentials.
Ferguson’s book is a tour de force on the modern history of economics.
He describes how the financial revolution preceded the Industrial Revolution. He makes the case for money as the root of most progress. (I try to project that in the future in my writing about a Munificent Destiny based, in part, on growing capital).
He shows the influence of culture. And individuals innovate. New ideas make a difference. Economics evolve.
Yet, it always comes back to capital and the essentially human influences – fear and greed rage – that shape the economy.
Socialism and special interest statism transform personal theft into public theft.
Ferguson shows how China and the U.S. are like England and the U.K. in the 19th Century.
Likewise, he shows how catastrophes are overcome.
And, that this current crisis isn’t unique as the politicians are bleating. It’s a bubble. The U.S. – and other countries – have gone through other bubbles.
This bubble doesn’t compare to a real catastrophe. Like what happened in the South when the capital value of the money went to zero in 1865. It took 90 years and 3 generations to come back.
Great book. Easy reading. No math skills needed other than recognizing which numbers are bigger than others – when the author lays out what happens and why.
Super perspective on the current crisis. How President Bush screwed things up with his bailout actions. And how President Obama’s actions so far are precisely the wrong things to do. Likely, soon to be followed by more wrong – and detrimental – actions.
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