New York – The free-market Mont Pelerin Society held a special session at its meeting in Stockholm earlier this month to reassess Milton Friedman's famous lecture, "Why the American Economy Is Depression-Proof."
At the end of our special session, I asked members of the Mont Pelerin Society how many of them still agreed with Friedman, that the American economy is "depression-proof." Only a handful raised their hands, and they were all American economists. The rest of the crowd, mostly from abroad, pointed out that most other countries did not suffer a banking crisis. The financial crisis was largely American-induced [false - it can be traced back to the MPS]. They agreed that until the US adopts a stable monetary and banking system, it can no longer be considered depression-proof.
The feudalist Mont Pelerin Society is the mother of all "free trade" organizations. The claim that they're rethinking Friedman's lie is actually just a hint that they had gathered to celebrate their apparent imminent victory over those uppity humans who think they have a right to a society dedicated to the common good. By "stable monetary system," I suspect that they mean "sound money," i.e. gold-backed currency, which is just another way to strangle credit and economic growth. For more information on this group, see The Economic Treason of "Free Traders."