Posts Tagged ‘Crash’
From another blogger – Travellrev
… In the ‘great’ depression 7 million people died of hunger in the US alone. The ‘Great’ depression led to WWII and the abject world wide poeverty that some of the oldies still remember and which prevents them from spen[d]ing even the smallest amount of money on themselves. I’m sure you all know of such a person. They had every reason.
At he time of the great depression 90% of the US population grew their own food and had their own small family farms. Now perhaps 15% of the US population has access to homegrown food and the rest of the population works in the service industry or the financial industry and only some 12% work in factories actually producing something that can be sold.
More than 600.000 people a month for the last four months have lost their jobs in the US alone. The expectation is that more than 8 million houses will be foreclosed on in the next two years with millions already having been foreclosed on.
So let me set you straight on this littel issue. The IMF says it will be the deepeset depression since the ‘Great’ depression? No, It will be a depression that will dwarf the ‘great’ depression.
The Banks, most famously the Fed, just print whatever they want. They also manipulate society and individuals at will, and all with the flick of a switch of a printing press.
Banksters, Gangsters, Madoffs, Bonuses – the age of falsity ..
Russia backs return to Gold Standard to solve financial crisis
Russia has become the first major country to call for a partial restoration of the Gold Standard to uphold discipline in the world financial system.
By Ambrose Evans-Pritchard
Last Updated: 10:05PM BST 29 Mar 2009
Arkady Dvorkevich, the Kremlin’s chief economic adviser, said Russia would favour the inclusion of gold bullion in the basket-weighting of a new world currency based on Special Drawing Rights issued by the International Monetary Fund.
Chinese and Russian leaders both plan to open debate on an SDR-based reserve currency as an alternative to the US dollar at the G20 summit in London this week, although the world may not yet be ready for such a radical proposal.
Mr Dvorkevich said it was “logical” that the new currency should include the rouble and the yuan, adding that “we could also think about more effective use of gold in this system”.
The Gold Standard was the anchor of world finance in the 19th Century but began breaking down during the First World War as governments engaged in unprecedented spending. It collapsed in the 1930s when the British Empire, the US, and France all abandoned their parities.
It was revived as part of fixed dollar system until US inflation caused by the Vietnam War and “Great Society” social spending forced President Richard Nixon to close the gold window in 1971.
The world’s fiat paper currencies have lacked any external anchor ever since. It is widely argued that the financial excesses and extreme debt leverage of the last quarter century would have been impossible – or less likely – under the discipline of gold. –more–
Video Ron Paul explaining the G20 summit simply
This video previously posted March 16th on this Blog
Ron Paul says there would be no need for the G20 meeting if there was a Gold Standard
We forgot so much – health is the next crash – it will supersede all others – and unlike financial affairs – man made cheating and spin won’t help – only right living will – the industrial profit driven food industry is the link to the failing immunity.
The food industry like all other is profit driven. How could it not fail? We hear of Immune deficiency, anti biotic resistance, obesity and fertility problems. All the warning signs are there.
The bible makes some mention of leg braces (maybe there was an operation) and the importance of salt with some dietary rules. Yet it is not enough for a health formula. Ayurveda is just as old and it does offer a complete program for health.
Meanwhile Monsanto and similar corporations are denourishing our intake. And like the cigarette companies would deny wrongful health effects, so now do the Food lobbies.
The financial debacle is just the symptom we ignore the consequences.
A world crisis we know we have, maybe ethnicity will fade when faced with an animal like fight for survival. Water, wherever America goes, it says it wants to provide piped water. Actually fresh running water is more healthy.
Time to rethink. Events are poised to overtake us.
And the G20 meet could make us think of the ancillary issues, fossil fuels etc.
When and if the meltdown occurs, what will happen to mortgage holders etc. They will not be able to pay. That is already happening, and there is a defacto amnesty occurring.
The Spanish government is assisting those that cannot pay. And the banks are not pursuing repossessions as much as they could.
Canceling all debt seems like a simple solution to all the financial troubles, and it is anyway what is going to happen, no one is going to be able to pay their debts.
This is a repost from Nov. 12 2008 (Already dated because now Russia and Europe are also in trouble):
Debt amnesty to cure credit crunch.
If all debts were canceled we could at least pick up where we were before the crash.
All debt personal and corporate and sovereign.
The wealthy who live in a mansion, would still be wealthier than those without a mansion. But all Mortgages would be canceled. Someone who spent 30 years paying off their mortgage would see their neighbour who has only lived there and made payments for a year get to own their place as well.
Some countries would benefit more than others. Pakistan, Iceland and the Ukraine would be happy to forget their debts. And of course the USA.
At first you might think China, Russia and Europe could be upset to lose the value of the bonds they are holding. But: China could say, ‘we have industrialised, we still have the factories, and we are still better off than we were’. Russia also has seen its fortunes rise over the last decade.
And anyway, how much chance do Russia and China have of ever getting their dues for the bonds they hold? And the dollar has to devalue sooner or later, and probably such a big devaluation that the foreign dollar holdings would be greatly diminished.
Europe anyway seems to be a big owner in the Fed, and has through its intimate ties with the US, shared in the easy life the US created through deregulation, the Subprime and massive borrowing.
Even personal debts to the credit cards, and to one another are cancelled at a specific date, say with ten weeks notice, so everyone has time to come to some understanding and settlement.
The international money system has a jewish feel to it, and it is a credit that the whole world has adopted this globalised system with Stock Markets and Credit cards. Until an alternative system can be found, we are stuck with it. Rather than play it all by the rules, so that all the books can be balanced, which seems to ensure a 1920s type crash. Why don’t we just start all over again. The gap beteen rich and poor will not be as great as it currently is. And scrapping all debt makes as much sense as the Fed pumping trillions into the world economy, and to seemingly little effect.
No one in the civilised world wants a recession, this is a way to avoid it.
In a strange way this renders the banks innocuous as they only survive from debt. Yet they are anyway folding and insolvent. They can start to lend again.
This is only a solution for buying time, because debt, fiat money and interest rates are wrong. Making money from money is wrong.
Globalisation did bring joy to many, just think of all the gadgets, foods and clothes. And for the capitalists it was also a bonanza.
But how can it last another day?
Speaking for the UK and the US. We got no jobs and all we can make are weapons.
Globalisation was bad for the environment, who cared what happened in some faraway country reduced to mono cultivation for export?
And in the end our coveted service industries were outsourced.
If fiat money was a jewish notion then realize every other country adopted it. Except not every country went for a private Fed.
Printing money and making inflation is all that’s left. The ironical last stages of salvaging fiat money.
The old anarchist chime that the police are here to protect property and wealth from the needy will look glaringly true.
Soon the policing will be required to enforce fiat money, that of course will fail. The current crash is widely labeled as ‘systemic’.
For a replacement think: Feudalism, Communism, Protectionism, Xenophobia, Barter, gold standard. Expect the myriad of economic rules and requirements to disintegrate.
Maybe the talented will once again be able to rise.