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Welcome to

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Corporate World

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Recessions and Depressions

Their Causes and Cures

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DEFICIT SPENDING

IS NOT THE CURE

for our present financial problems.

IT'S THE CAUSE ! ! ! ! !

Economic recessions and depressions don't just happen. They are caused and created by government deficit spending! They are also easily curable. The cure is to simply stop deficit spending. Unfortunately, when that happens, there is a period of economic chaos and some people get hurt. Corrections are inevitable! The longer the corrections are delayed, the more painful they become. The page below describes and explains, in simply language, what's going on in the economy right now (2008).

To bottom line this in one sentence: The single most destructive cause of the world's financial problems can be boiled down to two words -- Deficit Financing -- the lending of money and the charging of interest on the money lent.

George Bush & Company¹ are telling us that expanding the problem (more deficit financing) is the solution. They can't really be that stupid. The questions, then, is: Why are they intentionally destroying the economy?²

Two Ways to End Our Present (2008) Economic Crisis:

Global climate change and our present, government, economic policies are intimately interrelated.

The present economic policies of excessive government deficit spending are not sustainable.

We can change our economic practices now with moderate pain or we can wait until the entire system collapses and destroys much of humanity with it.

End Now by Conscious Intention and Design: Ending deficit spending now will produce grief and misery for some people. It will also produce short-term economic chaos. If we are wise, we will make the corrections now. If we make special efforts to assist those most strongly and negatively affected by the correction, the transition will be relatively short and relatively mild in terms of grief in misery.

End Later by Default by Economic Collapse: If we pay now, that cost will be considerable cheaper than it will be if we wait until we have another economic meltdown like the stock market crash in October 1929 which triggered the great depression of the 1930's. If we continue to refuse to see what we (by way of the federal government) are doing to ourselves, the system will sustain itself for a short while longer, but when it collapses, the destruction and devastation will be far worse.

If Bush & Company are allowed to continue deficit spending, it will destroy the monetary system. The destruction of the monetary system will also destroy the nation's capacity to produce goods and services. Without a healthy monetary system and without a functioning social structure we will not have the capacity to Reverse Global Warming² before it becomes unstoppable.

It doesn't take Einstein or Sherlock Holmes to figure out that the wise choice is to end government deficit spending now and allow the economy to correct itself. We have to pay the price. We have no choice! We can pay it now at a moderate price now, or we can pay it later at a huge price.

Refusing to end government deficit spending is like trying to avoid to emptying your bowel or bladder. Sooner of later it's going to release. You can participate in the release or you can mess your pants. The same principle applies to deficit financing.

What Experts Say ...

What the Experts Say:

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Alan Greenspan

Alan Greenspan was the Chairman of the Federal Reserve for nineteen years.

Here are his words on inflation, on Government deficit spending and on The Gold Standard:

". . .Deficit spending is simply a scheme for the confiscation of wealth. . . In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. . . Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. . ."

"The law of supply and demand is not to be conned. As the supply of money (of claims) increases relative to the supply of tangible assets in the economy, prices must eventually rise. Thus the earnings saved by the productive members of the society lose value in terms of goods. When the economy's books are finally balanced, one finds that this loss in value represents the goods purchased by the government for welfare or other purposes with the money proceeds of the government bonds financed by bank credit expansion."

"gold and economic freedom are inseparable . . . the gold standard is an instrument of laissez-faire and that each implies and requires the other."

Greenspan, A. (1966), Alan Greenspan on the Gold Standard²

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Ron Paul

Ron Paul is a Republican member of the United States House of Representatives and the only presidential candidate who is willing to speak the truth about deficit financing

Here are his words on inflation and on Government deficit spending:

All government spending represents a tax. The inflation tax, while largely ignored, hurts middle-class and low-income Americans the most. Simply put, printing money to pay for federal spending dilutes the value of the dollar, which causes higher prices for goods and services. Inflation may be an indirect tax, but it is very real – the individuals who suffer most from cost of living increases certainly pay a “tax.”

Unfortunately no one in Washington, especially those who defend the poor and the middle class, cares about this subject. Instead, all we hear is that tax cuts for the rich are the source of every economic ill in the country. Anyone truly concerned about the middle class suffering from falling real wages, under-employment, a rising cost of living, and a decreasing standard of living should pay a lot more attention to monetary policy. Federal spending, deficits, and Federal Reserve mischief hurt the poor while transferring wealth to the already rich. This is the real problem, and raising taxes on those who produce wealth will only make conditions worse.

http://www.lewrockwell.com/paul/paul334.html

Death Destruction Death Destruction ...

Our So-called Leader Is "Leading" Us
Into the Valley of Death and Destruction

Editors Note: The scenario below was written when "Resident" Bush was in the Whitehouse. Unfortunately, President Obama is not in charge of the nations financial structures, the the super-wealthy bankers are. As a result the description below still applies.

By excessive deficit financing - financing for which there is no repayment plan, George Bush & Company¹ are leading the suicide charge of the not-so-light brigade into the valley of death and destruction. ***1 Unfortunately, they are dragging the rest of us with them. The process is called Inflation.² By deficit spending (that is, by inserting make-believe money² into the economy) Bush & Company steal the value out of the money that is already in the economy. As the value of the dollar dies, the prices of goods and services rise. As a result, many people can't earn enough money pay all their bills. Just to survive, financially distressed people borrow money using their credit cards and/or loans against their homes. The banks (credit card companies) lend desperate borrowers more none-existent money. The bank lending process is called Fractional Reserve Lending.² This, like inflation, also fraudulently expands the money supply and accelerates the loss in value of our money. The cycle of death and destruction then repeats itself at a new and more aggressive level. If not stopped, this cycle will produce another great depression. And with Global Climate Change² threatening the lives of billions of humans, if we continue on our present path, both the depression and the climate change will be devastating, deadly and irreversible.

When we top this all off with the exorbitant usury-level interest rates¹ charged by the banking industry, we have the makings of a complete financial meltdown.

It Wake Up Time --- It's also Speak Up Time: Everybody is talking about how to treat the symptom -- lack of buying power. Nobody is talking publicly about the "first cause" -- government deficit financing. If there ever was a story in need of telling, this is it! You have a choice to make -- Speak up and risk losing your job, or sit silent and risk losing your life and the lives of your children and grandchildren.

George Bush & Company ...

George Bush & Company

"George Bush & Company" refers to the collusion between the banking system and the federal government. Two examples of this collusion are:

The Federal Reserve: The Federal Reserve² consists of twelve major, private banks. These banks have loaned billions of dollars in make-believe money to the federal government. Our tax dollars are now paying the banks interest on these phony loans. This has been going on since 1913. It's the longest-lasting, most lucrative financial scam in all of human history.

Fractional Reserve Lending: The second area of underhanded duplicity is called Fractional Reserve Lending.² Because of the immense political power of the financial industry, they influenced Congress to pass a law allowing the banks to also lend make- believe money directly to the public.

For example, the banks that are charging you usury-level interest rates¹ on your credit card debt, didn't actually have any money to lend you. They simply made a government-sanctioned fraudulent entry in their financial ledger and you spent the non-existent money using your credit card. As a result, more make-believe money was inserted into the economy. Every credit card purchase is another, small, silent twist in the inflation² spiral.

Reference One: Why Your Money "Ain't What It Used To Be"²

Reference Two: Edward R. Murrow, Where Are You?²

When a trusted individual is caught engaging in unethical or criminal behavior, the common response of his staunch supporters is disbelief. "So and so would never do that!" "Resident" Bush is good example of this. Seventy-three percent of the people think he's doing a poor job. (May 2008) Their Bible tells us: "By their fruits you shall know them," and "Beware of Wolves in Sheep's Clothing." In spite of his deplorable behavior, and in spite of the fact that he has the worst approval rating of any president is all of American history, millions of fundamentalist Christians refuse to see George Bush for what the evidence tells us that he is.

Here are some of the George Bush fruits.² (the ones we know about)

<http://www.HowToReverseGlobalWarming.info/five-thousand.html>

What kind of person would engage, order, or condone this type of behavior? Even in the face of the evidence and his behavior, the true believes refuse to even consider the possibility that Mr. "Born-again" Bush might be less than he claims to be. You might also want to consider the Iceberg Principle.²

Perhaps it's time to get out the old, Richard "I'm not a crook" Nixon poster and change the picture. The caption under Nixon's picture read: "Would you buy a used car from this man?"

Recent History ...

A Brief Look at Recent History

Let's look at what happens when a major financial institution is bankrupt or when one of the lending scams of the financial wheelers and dealers collapses. We'll use the 2008 collapse of the high-risk, un-collateralized loans in the real estate industry as our example.

When the real estate lending scam collapsed, the banking system and the government, bailed the major lenders out by spreading the losses between all the major banks and the federal government. They simply inserted more make-believe money into the system. This was another, not-so-small, not-so-silent twist in the in inflation spiral.

Any time more make-believe money is inserted into the financial system, it prevents the much needed financial corrections in the economy. Each time Bush & Company insert more funny-money into the economy, the pressure for correction get stronger. Each time Bush & Company insert more funny-money into the economy, the value of your dollar goes down and it take more of them to buy your goods and services.

No matter what Bush & Company do, the correction will eventually happen. The longer the scam continues, the more painful the correction will be. Governmental manipulation of the money supply and its refusal to allow the necessary corrections is what caused the great depression of the 1930's. Governmental manipulation of the money supply and its refusal to allow the necessary corrections is exactly what's going on right now.

Where Are we Today (May 2008)

Stimulus Package Stimulus Package ...

How are George Bush & Company¹ responding to our deficit spending problem? With more deficit financing.

Here's another example of Bush & Company's Disneyland Economics: On February 13, 2008, Bush & Company's proposed resolution to the nation's financial woes became federal law. This law (peddled as the "stimulus package") authorized the government to deficit spend another 168 billon dollars of non-existent money. In terms of fixing the problem it's about as effective as pouring water on a drowning man.

Where is that 168 billion coming from? Think of it symbolically as watering down your orange juice. If you have a quart of orange juice and you mix it with a quart of water, what have you got? Where does the orange juice in the second quart come from? And how valuable is it? It comes from the original juice. And each quart has only half of it's original strength/value.

The same principle applies to your fiat money. When the 168 billion dollars in funny money is dumped into the economy, it gets its value by taking the value away from the dollars that are already in the system. Nothing new is created except more debt. The value of the existing dollars decrease! It's called inflation.²

This "ain't" rocket science. It's basic "Economics 101". Even if Born-Again George is as dumb as a rock, his advisors aren't. Excessive debt is what caused the problem to begin with. Now, Bush and Company are telling us that expanding the problem is the solution. They can't really be that stupid. The questions, then, is: Why are they intentionally destroying the economy?² At the risk of boring the wise, let me say this one more time:

More

DEFICIT SPENDING

IS NOT THE CURE

for our present financial problems.

IT'S THE CAUSE ! ! ! ! !

Economic recessions and depressions don't just happen. They are government caused! They are also easily curable. The cure is to simply stop deficit spending.

Ok, Now What?

Take The Choice Test below:

For a very short time,

You Still Have a Choice.

Choose One:

Choice One --

Don't choose. -- Do nothing. Deny that there's a problem.

Continue business / life as usual

Silently support -- Continuing Environmental Destruction ²

Reap the consequences:

The Death of Billions of Humans

(Including you, your children, and your grandchildren)

Choice Two --

Make significant changes and begin making them as rapidly as possible.

Stop the Bush & Company deficit financing ² -- Why it Must Stop NOW ²

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Related Web Pages

http://www.EconomicSanity101.com#83

http://www.New-Corporate-World.com/recessions-depressions.html#18

http://www.Money-God-Money.info/inflation.html#55

Edward R. Murrow, Where are You?

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How to Reverse Global Warming ²

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How to Reverse Global Warming is urgent.   It's intimately connected to reversing Global Dimming.

How to Create The New-Corporate-World ²

Eliminating corporate debt is a major key

to resolving two major problems --

Inflation and Environmental Destruction.

The New Corporate World has a simple, but profound way to accomplish this.

...

usury ...

Notes and References

Usury-level Interest Rates -- Usury is the legal term for charging excessive interest on financial loans. Usury came to the public's attention during the Great Depression, in the 1930's. Al Capone-style, back-alley loan sharks charged desperate people thirty-percent interest rates on loans. That was considered a serious crime and those caught went to jail. Today loan sharking (usury) is legal. The criminals have changed the laws and declared themselves to be immune from prosecution. They wear $1,000 suits and have offices in large, expensive buildings with their corporate names on the faces of the buildings. It's still illegal for you and me, as individuals, to charge any interest over ten percent, but some corporations are now charging as much as one hundred percent interest and that's perfectly legal. Credit card companies commonly charge you and your neighbors twelve to twenty percent and sometimes even over thirty percent.

***1 Two Stanzas from "The Charge of the Light Brigade" Alfred, Lord Tennyson

"Forward, the Light Brigade!"
Was there a man dismay'd?
Not tho' the soldier knew
Someone had blunder'd:
Their's not to make reply,
Their's not to reason why,
Their's but to do and die:
Into the valley of Death
Rode the six hundred.

Cannon to right of them,
Cannon to left of them,
Cannon in front of them
Volley'd and thunder'd;
Storm'd at with shot and shell,
Boldly they rode and well,
Into the jaws of Death,
Into the mouth of Hell
Rode the six hundred.

`````