Are we experiencing another Great Depression? The signs are all there.

In fact, even astrologically, the effect of Pluto is having a similarly devastating effect on institutions as it did in 1929. At that time, Pluto was in Cancer, in the 7th position from Capricorn. Now Capricorn is, of course the earth sign that designates finances and institutions. Now, of course, the astrological chart of the United States is a Cancerian chart. That is, the natal sun is in Cancer. So the position of Pluto in the sign of Cancer and now, as it moves into Capricorn is having these predictable effects. You can read a a previous article by me on the astrological reasons for the economic crisis we are now experiencing.

The major difference is the response to the crisis. At that time wealthy businessman, Herbert Hoover was President of the U.S. He was advised by his Secretary of the Treasury, Andrew Mellon to take a position of "liquidation."

That is, let the weak fail and do not provide any government intervention. Herbert Hoover later wrote: "The 'leave-it-alone liquidationists' headed by Secretary of the Treasury Mellon felt that government must keep its hands off and let the slump liquidate itself. Mr. Mellon had only one formula: 'Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate'.He held that even panic was not altogether a bad thing. He said: "It will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people", according to J.Bradford-Delong

Herbert Hoover himself was not, as he is frequently portrayed, a mean and uncharitable man. On the contrary, he was quite a philantropist. However, he accepted the advice of Andrew Mellon and the U.S. did not recover its financial positon for some years.

Similar crises were felt in Europe and again, without international co-operation, nations lost their finacial solvency and became easy prey for Naziism. So, although I did not personally vote for George W. Bush Jr, I think he made a wise choice in accepting the advice of Secretary Paulson.

The Great Depression is the greatest case of self-inflicted economic catastrophe in the twentieth century. As John Maynard Keynes wrote at its very start, in 1930, the world was "... as capable as before of affording for every one a high standard of life.... But today we have involved ourselves in a colossal muddle, having blundered in the control of a delicate machine, the working of which we do not understand."

However, at the time of the Stock Market Crash of October 29, 1929, Keynes was not a washington insider and, what could have been prevented led to a global Depression, with the exception of a few countries who developed their own policies, like Japan and Scandinavia, which recovered rather quickly.

Fortunately, I believe, President Bush, although a fiscally conservative businessman and educated at Harvard School of Business, listened to the advice to Bernard Bernanke and Secretary Paulson.

In a nutshell, this is Keynes Economic Philosophy, according to time.com, Keynes' basic idea was simple. In order to keep people fully employed, governments have to run deficits when the economy is slowing. That's because the private sector won't invest enough. As their markets become saturated, businesses reduce their investments, setting in motion a dangerous cycle: less investment, fewer jobs, less consumption and even less reason for business to invest. The economy may reach perfect balance, but at a cost of high unemployment and social misery. Better for governments to avoid the pain in the first place by taking up the slack.

And, just to comment a little further, being a good investor or businessman, like Warren Buffett, Donald Trump, or Herbert Hoover is not an adequate qualification to be a good economic advisor.