What do you mean by a true capitalist model. USA has preached, advocated and follow the free market model relying on private capital to run its economy.
Talking about free markets does not mean the economy was being led by free markets. When the government steps in and has to set prices on goods or services, it means there is no longer a free market. Where has the government tried to set prices? The most well known price fixing is the interest rates. So many people believe that interest rates can not free float and they require government intervention. No, it is a lie, the only reason they want to control interest rates is so they can control the money supply and hide inflation. Meaning, they can inject money into the system and hide it. If interest rates were free floating, it would be a clear indication of just how much money the government was "printing".
Gas. The US tried to place price control onto gas in the 70s as an attempt to control the market. It failed and caused nothing but lines and angry people. They tried to write it off by saying there was a shortage, but it was a lie. The reason they wanted to control gas prices was again to hide inflation. They felt that if the prices of gas continuously rose that people would catch on to just how much inflation was present. They found another solution so they didn't have to price fix gas.
I had never heard of this, that the US government wants you to blame capitalism.......... i am a bit perplexed.
For a long time, they have slowly been picking away at capitalism and increasingly introducing socialist programs. Most of these programs are just ponzi schemes to funnel money from one group and inject it into another group.
What do you mean by...... "The government allowed for banks to write loans with money they did not have."
Have you studied fractional reserve lending? Banks can lend money while holding only fraction of the amount in their reserves. What does that mean? Well let me try to simplify it.
You are a lender and holder of money, and Tom comes to you and says he wants to save one dollar and he gives it to you to hold. You say alright, and give Tom some interest for holding onto his dollar for him. The government comes in and says that you only need to hold ten percent of the money you have in savings accounts so you can lend out the rest. So you only need to keep ten cents of Tom's dollar and you can lend out the other ninety cents to someone else.
So you owe Tom a dollar still but Linda shows up to barrow some money and you lend her the ninety cents of Tom's dollar. Linda goes and purchases a new outfit with the ninety cents and the store, George comes to you to save the ninety cents he just got from selling some clothes to Linda. Now you still owe Tom one dollar, but now George shows up to save the ninety cents in which you say alright. Now you can lend out seventy nine cents George's ninety cents to someone else. Fred shows up to barrow that seventy nine cents and he too spends it on some ski equipment. That shop turns around and puts the seventy nine cents into savings. The process goes on and on repeating. Initially you still owe Tom the dollar, so if he showed up you don't actually have the dollar to give back to him because the government said you only need to have ten percent of reserve cash for savings accounts. Not only are banks creating money that does not exist but it also makes it impossible to repay savings to individuals who show up to get their money.
Tom you owe one dollar to.
George you owe ninety cents to.
Shop you owe seventy nine cents to.
A owe a grand total of two dollars and sixty nine cents. This money does not actually exist in your reserve account. So if all three of them were to show up to withdraw their money, you can't give them the money because you don't physically have it. This is referred to as being insolvent. So you created money where none exists. The reason why is because you have never actually had more than one dollar in your possession but you owe more than you lent out.
Free market banks wouldn't be allowed to operate like this, only government controlled banks would do such a thing. This is why the government has to prop up banks so they won't go bankrupt.
If you think you can work your way out of this........ best of luck!
Did I work my way out? Or should I say maybe you need to work your way into a few economic courses?
1) Under which authority and how did the government ALLOWED it.
2) The bankers were clerks by qualification, were they ?
I am not even sure what you mean with this question so I can't answer it.
3) Define free market?
The unregulated exchange of goods and or services not manipulated by the government unless there is fraud or force.