Dick Eastman < firstname.lastname@example.org >
Great is bankruptcy: the great bottomless gult into which all Falehoods, public and private, do sink, disappearing. -- Thomas Carlyle
There was a time when a fool and his money were soon parted, but now it happens to everybody.
I have have typed out some long passages from an old book on economic depressions because I think it provides Americans, more than new books, the analysis they will need to see through the lies of economists, finance journalists and double-crossing presidents who, agreeing with the Marquis de Sade that "It is infinitly better to take the side of the wicked who prosper than of the righteous who fail," have plunged us into helpless babblement.
I don't expect that employers and union bosses will insist that every worker read it, that colleges and high schools will cancel classes and convene colloquiums to discuss it. Even those still willing to think, understand that whatever they know about economics and sociology and government doesn't matter, because the "interests" who have merged the political parties and are now with their new White House team ready, under Geithner's masterful hand, to steer this "Kleptrina" of a depression onto the mainland because we are the targeted victims and not the intended benefactors of their efforts. The Money Power, with their armies of traitor economists, journalists, professors and politicos have bound the might of 300,000,000 people and will have us as their slaves once they have completed the process of robbing us of all we possess.
Nevertheless I still have hope that we can defeat the devices that plunder our earnings, savings and equity and lead us into war and imperialism. But we must know the terrain in which we fight, the weapons of our enemy, and the economic science by which one side or the other gains the upper hand in the political arena.
Three things I would add to Dr.Irving Fisher very helpful explanation of depressions.
1. Debt is the built up potential energy on which the grand Kleptastrophe draws when it is turned loose on us, ripping us out of Kansas, by those who have positioned themselves to profit from it. While increased buying power given directly to households can can prevent the crisis caused by the contraction of an economy with too much debt that is triggered when banks call in their loans -- -- as I was saying, increased purchasing power can be a remedy, but it must be done in the right way. Avoiding a depression or ending one depends on exactly how and where the new purchasing power is introduced to the economy. There is no salvation in any new purchasing power unless the rescue injection goes directly to households -- interest free credit checks to families that come directly from the goverment like a tax return. Only in that wal will increased household demand and and loss of homes and security obtain. Bush-Obama (Geithnerism) works is only going to add more energy to the cyclone being steered this way. The injection of new purchasing power into the hands of the international bankers and their corporations does absolutely nothing, but wind up the over-indebtedness mainspring of the depression through the government borrowing to get money to make the bailout -- like Germany after World War One had to borrow from the U.S. to get the money for reparations to pay to France and England (after its chief industrial region had been given to France) so France and England could pay their debts to the U.S. Only this time -- we are Germany and our factories instead of being annexed by a neighbor simply vanished and rematerialized in Red China.)
The new injection to purchasing power to households must neither be tax financed nor debt financed. Either the government adopts social credit in its monetary reform or it must resort to the printing of its own interest-free treasury credit (the modern version of Lincoln's printed treasury notes.) Nothing is more absurd than what we are doing now, which is borrowing from the international bankers to bail out the international bankers after the international bankers take ownership of all of our foreclosed houses and all of our assets sold to them in our economic distress which has been engineered by them in the first place.
Stiglitz has shown us the magnitude of the "bailout" pledged by Congress to the financial sector -- not to the people, the "rescue" avoids any payments to the household sector -- and does so only after the financial sector has just taken possession of all of our foreclosed properties -- properties in which the "hurt" financial lenders were always "secure" with our home equity and business equity as collateral. In other words, they got our houses from their market and credit manipulaitons, but feel that they have been hurt by the fact that when they steal all of our houses at the same time there is a glut of houses on the market and so they must squeeze the tax payer (whose house and business they just stole) to make up for their loss.
See from Stiglitz's graph, the potential energy of "Kleptrina" which has yet to come ashore and reach your town. That is a transfusion that must come from your veins. Your blood swept up in the cyclone to rain manna upon the heads of the international financial elites.
3. Fisher tells below how bondholders (creditor class) and others profit from depressions that ruin everyone else. Someone gains all of the assets that bankrupt firms lose. Fisher, hints at his awareness that the 1929 crash involved some intention, even as he tells us he will not make any judgement calls on that question. But you should keep in mind that the economic conspiracy is a fact -- and that the plays are from a very old play book.
A conspiracy set up the over-indebtedness and started the present collapse in motion (as in 1929 when the market crash was deliberately brought about by margin calls -- that led to the monetary contraction that created the depression.)
Apart from those omissions, Dr. Fisher opens the curtain on everything we need to know but haven't been shown about the causes and working of depressions, including the Kleptastrophe we are witnessing today.
I present this article from the past to fill the void left by the sorry lot of poorly trained and traitorous economists in failing to give an honest explanation of the causes of the present depression -- economists who as recently as two months ago insisted were are not yet "technically" in a recession.
Every man is responsible to every other man.
1 Over-Indebtedness (The First Main Factor)2 Criteria of Over-Indebtedness3 The Debt Cycle4 Nine Main Factors5 Distress Selling6 Volume of Currency (The Second Main Factor)7 The Price Level (The Third Main Factor)8 "Real" Debts9 The Money Illusion10 Gold and Credit11 The Vicious Spiral Downward12 Two Paradoxes13 The Main Secret14 Summary15 The Dollar Disease is Needless
17 Net Worth (The Fourth Main Factor)18 Profits (The Fifth Main Factor)19 Production Trade, Employment (The Sixth Main Factor)20 Optimism and Pessimism (The Seventh Main Factor)21 The Velocity of Circulation (The Eighth Main Factor)22 Hoarding, a Slowing of Velocity23 The Two Paradoxes Again -- Applied to Hoarding24 Possible Consequences of Contraction and Hoarding (The Ninth Main Factor)25 Rate of Interest (The Ninth Main Factor)26 "Real" Rates vs. Money Rates27 Deflation, the Root of Almost All Evils28 Chronology of the Nine Factors29 The Trough of Depression30 The Boom Phase Again31 A Vicious Spiral Upward
32 Unproductive Debts33 Productive Debts34 Some Historical Illustrations35 The Shady Side36 Monetary Inflation Alone37 Combined Starters38 Contents of Sections Omitted39 Conclusion to Other Theories Section
40 The War and the New Era42 Investing in Equities on Borrowed Money43 High-Pressure Salesmen of Investment Bankers44 The Steady Commodity Price Level45 Investing Abroad46 Miscellaneous Borrowing Movements47 Reparations48 Inter-Governmental Debts Payable to America49 International Private Debts50 Public Debts in the United States51 Private Debts in America52 Brokers' Loans53 Totals in 192954 Gold and Debts55 Contents of Omitted Sections56 Summary as to the Nine Main Factors57 The Real Dollar58 Our Dollar's Bad Record59 War, A De-Stabilizer60 Can We Keep Capitalism
1. The Debt Factor2. The Currency-Volume Factor3. The Price-Level Factor4. The Net-Worth Factor5. The Profit Factor6. The Production Factor7. The Psychological Factor8. The Currency-Turnover Factor9. Rates of Interest
Avec mes meilleures salutations.
François de Siebenthal
à faire circuler largement, merci, le monde est déjà meilleur grâce à ce simple geste de solidarité.
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