How an Economy Grows and Why It Crashes

8
 
A REPUBLIC IS BORN  91
C H A P T E R
   
9  GOVERNMENT GETS CREATIVE  101
C H A P T E R
 
10 SHRINKING FISH  119
C H A P T E R
 
11  A LIFELINE FROM AFAR  129
C H A P T E R
 
12  THE SERVICE SECTOR STEPS UP  141
C H A P T E R
 
13  CLOSING THE FISH WINDOW  153
C H A P T E R
 
14  THE HUT GLUT  161
C H A P T E R
 
15  THE HUT RUT  177
C H A P T E R
 
16  STEPPING ON THE GAS  193
C H A P T E R
 
17  THE FISH HIT THE FAN  209
EPILOGUE 223
ACKNOWLEDGMENTS 229
ABOUT THE AUTHORS  231
ABOUT THE ILLUSTRATOR  233
CONTENTS

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viii
DISCLOSURE
In addition to being the president, Peter Schiff is also a 
registered representative and owner of Euro Pacifi c Capital, 
Inc. (Euro Pacifi c). In addition to his duties as director of 
communications, Andrew Schiff is also a stock broker at the 
fi rm. Euro Pacifi c is a FINRA registered Broker-Dealer and 
a member of the Securities Investor Protection Corporation 
(SIPC). This book has been prepared solely for informational 
purposes, and it is not an offer to buy or sell, or a solicitation 
to buy or sell, any security or instrument, or to participate in 
any particular trading strategy. 

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ix
In this allegory of U.S. economic history the reader will 
encounter many recognizable personalities and events. But 
as a very broad brush was needed to condense such a complex 
story into a cartoon book, many details have been blended.
In addition to the exploits of specifi c historical fi gures, 
characters represent broader ideas. For instance, while Ben 
Barnacle is clearly our version of Fed Chairman Ben 
Bernanke, Barnacle’s actions in the story are not meant 
to solely apply to Bernanke himself. Rather, he is a 
representative of all highly infl ationary economists. 
In real life, Federal Reserve Notes were introduced 20 years 
before the election of Franklin D. Roosevelt. But given his 
penchant for spending, we decided to credit him with the 
innovation. And although Chris Dodd was but a child when 
Fannie Mae was actually created, his support of the agency 
in later years gives him originator status in our story. And, 
although the foreign islands in the book roughly correspond 
with actual countries, they are also stand-ins for all nations.
We ask that you forgive us these, and other, liberties of 
chronology and biography.