Gimme Some Truth
Member
- Joined
- Jun 1, 2007
- Messages
- 797
Hey, I'm starting to write up the reasons for the current recession and was hopin for some feedback, suggestions and info. I see it as a part of my economic research.
This is in very rough form, but ,well, here it is:
*************************************************************
The root cause is the Federal Reserve with its setting of artificially low interest rates and massive inflation.
The US, should have had a recession after 9/11, as a result of the bursting of the .com bubble, but Administrations and politicians do not like recessions on their watch, as it makes it harder for them to get re-elected(note: this crisis turns up in the last year of Bush's administration). The result is the Fed swamping the economy with more money (inflation) which holds off the recession for a while, but only makes it far worse and of a longer duration (recessions are not a bad thing. It is the bubble that is the bad thing cos that is what causes the recession. A recession is merely the market re-balancing itself out). Americans are feeling it now, but what do the Government/Fed want to do? cause more inflation with these "bail-outs" , which in reality aren't bailouts, but coup's. America is gonna end up with a couple of "Super banks", ran by the Government.
The best thing to do right now is to allow the liquidation of bad debt. Let the banks go under. It will be a bad year for alot of people, but what they are trying to do now is only going to make it a bad decade because they are killing the dollar even further. A worthless dollar is the worst case scenario for the US, because America is no longer the nation it was. It used to be the biggest creditor nation, with the biggest production industry. It is now the biggest debtor nation on the planet and it has shipped out all its production to China and other places, enjoying some temporary gorging. America is now a consumer nation. The main export is the Dollar, being the worlds back-up currency. As the dollar becomes more and more worthless(through inflation), countries will stop taking them and then the US is absolutely fooked.
----
A little, very basic, scenario:
4 people are on an island. 3 are Asian and 1 is American. Asian 1's job is to hunt for meat. Asian 2's job is to collect for berries and Asian 3's job is to collect firewood. The American decide's his job is to consume the cooked meat and berries. Who is the dead weight?
----
Is it any wonder that Iraq got invaded after it dropped the Dollar , and now Iran is the new "boogie man" now that they are doing the same? It is as much about the dollar as it is about oil and global empire. Iran and Iraq are seen as easy pushovers. America would wipe the floor with Iran's 'Army' within days/weeks (as seen in Iraq). China and other larger countries, who actually have Army's are another matter. The US could never win an invasion war against China without the use of Nukes, so when China start consuming more of their own production, the US will suffer, and suffer massively. It is only a matter of time with the current policies of trying to stop inflation with more inflation.
The Federal Reserve is a monster of an organisation, as it causes malinvestment *****. It created , and dragged out, the Great Depression and it has caused this recession. Do not let anyone distract you with symptoms of this disease. Inflation is a tax on the middle/lower class. Governments use the Central Bank to pay for Big Government and wars because raising taxes(to pay for the power increase) isnt a good political move. It is much easier to just print the money and debase the currency. Make no mistake, inflation is a tax and the worst tax of all because it is a phantom and it doesn't hit the rich (bankers, large corporations, government etc) as they use that newly printed money 1st. By the time it has gotten down to the average person it has already lost much of its purchasing power.
***** Lets say you owned a cafe and ,unknown to you, a circus rolls into town. You get some extra business, due to the crowds the circus draws in. You think to yourself, misreading the situation, "hey! business is picking up!", so you spend money on an extension, hiring more staff and better chefs etc. A couple of weeks later the Circus leaves for another town and you are left holding the baby, having to lay off your new staff, aswell as alot of your old staff, paying for the renovations. You end up worse off or even out of business. This is very much like the malinvestment the Federal Reserve creates.
The dollar needs to be backed, probably by gold. If the US still had the gold standard a barrel of oil would be about $3. The dollar itself would be "as good as gold" , you'd have less intrusive all powerful Government, more freedom, less needless wars and a much more stable economy (it wouldn't be perfect, but it'd be alot better than now) with less inflation . Your savings would gain in value(instead of plummet as they do now) and your standard of living would increase.
America's history , from its early conception, was about the great struggle between the people and Central Banks. The more freedom loving, and intelligent of the Founding Fathers continuously spoke out ,and when in positions to do so, abolished Central Banks. The world is flooded with Central Banks now, but if there is 1 nation on this earth that has the pedigree to do away with these leaches of wealth, it is the United States of America (but as John Adams pointed out, the people need to rediscover their understanding of "the nature of coin, credit, and circulation". There is a very big reason why the US Constitution states that only Gold and Silver should be legal tender and that it is Congress(and not some private Central Bank) that should coin and regulate it.
"If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."
-- Thomas Jefferson
*************************************************************
This is in very rough form, but ,well, here it is:
*************************************************************
The root cause is the Federal Reserve with its setting of artificially low interest rates and massive inflation.
The US, should have had a recession after 9/11, as a result of the bursting of the .com bubble, but Administrations and politicians do not like recessions on their watch, as it makes it harder for them to get re-elected(note: this crisis turns up in the last year of Bush's administration). The result is the Fed swamping the economy with more money (inflation) which holds off the recession for a while, but only makes it far worse and of a longer duration (recessions are not a bad thing. It is the bubble that is the bad thing cos that is what causes the recession. A recession is merely the market re-balancing itself out). Americans are feeling it now, but what do the Government/Fed want to do? cause more inflation with these "bail-outs" , which in reality aren't bailouts, but coup's. America is gonna end up with a couple of "Super banks", ran by the Government.
The best thing to do right now is to allow the liquidation of bad debt. Let the banks go under. It will be a bad year for alot of people, but what they are trying to do now is only going to make it a bad decade because they are killing the dollar even further. A worthless dollar is the worst case scenario for the US, because America is no longer the nation it was. It used to be the biggest creditor nation, with the biggest production industry. It is now the biggest debtor nation on the planet and it has shipped out all its production to China and other places, enjoying some temporary gorging. America is now a consumer nation. The main export is the Dollar, being the worlds back-up currency. As the dollar becomes more and more worthless(through inflation), countries will stop taking them and then the US is absolutely fooked.
----
A little, very basic, scenario:
4 people are on an island. 3 are Asian and 1 is American. Asian 1's job is to hunt for meat. Asian 2's job is to collect for berries and Asian 3's job is to collect firewood. The American decide's his job is to consume the cooked meat and berries. Who is the dead weight?
----
Is it any wonder that Iraq got invaded after it dropped the Dollar , and now Iran is the new "boogie man" now that they are doing the same? It is as much about the dollar as it is about oil and global empire. Iran and Iraq are seen as easy pushovers. America would wipe the floor with Iran's 'Army' within days/weeks (as seen in Iraq). China and other larger countries, who actually have Army's are another matter. The US could never win an invasion war against China without the use of Nukes, so when China start consuming more of their own production, the US will suffer, and suffer massively. It is only a matter of time with the current policies of trying to stop inflation with more inflation.
The Federal Reserve is a monster of an organisation, as it causes malinvestment *****. It created , and dragged out, the Great Depression and it has caused this recession. Do not let anyone distract you with symptoms of this disease. Inflation is a tax on the middle/lower class. Governments use the Central Bank to pay for Big Government and wars because raising taxes(to pay for the power increase) isnt a good political move. It is much easier to just print the money and debase the currency. Make no mistake, inflation is a tax and the worst tax of all because it is a phantom and it doesn't hit the rich (bankers, large corporations, government etc) as they use that newly printed money 1st. By the time it has gotten down to the average person it has already lost much of its purchasing power.
***** Lets say you owned a cafe and ,unknown to you, a circus rolls into town. You get some extra business, due to the crowds the circus draws in. You think to yourself, misreading the situation, "hey! business is picking up!", so you spend money on an extension, hiring more staff and better chefs etc. A couple of weeks later the Circus leaves for another town and you are left holding the baby, having to lay off your new staff, aswell as alot of your old staff, paying for the renovations. You end up worse off or even out of business. This is very much like the malinvestment the Federal Reserve creates.
The dollar needs to be backed, probably by gold. If the US still had the gold standard a barrel of oil would be about $3. The dollar itself would be "as good as gold" , you'd have less intrusive all powerful Government, more freedom, less needless wars and a much more stable economy (it wouldn't be perfect, but it'd be alot better than now) with less inflation . Your savings would gain in value(instead of plummet as they do now) and your standard of living would increase.
America's history , from its early conception, was about the great struggle between the people and Central Banks. The more freedom loving, and intelligent of the Founding Fathers continuously spoke out ,and when in positions to do so, abolished Central Banks. The world is flooded with Central Banks now, but if there is 1 nation on this earth that has the pedigree to do away with these leaches of wealth, it is the United States of America (but as John Adams pointed out, the people need to rediscover their understanding of "the nature of coin, credit, and circulation". There is a very big reason why the US Constitution states that only Gold and Silver should be legal tender and that it is Congress(and not some private Central Bank) that should coin and regulate it.
"If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."
-- Thomas Jefferson
*************************************************************
Last edited:
