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Posts tagged ‘Ford Motor Company’

Social Credit and money

The current world of economics is in crisis. The crisis is man made.

By Christopher M. Quigley B.Sc., M.M.I.I., M.A.

There is a fatal flaw in the money system. The British engineer Major Clifford Douglas understood this flaw and brilliantly expounded a solution: he called it SOCIAL CREDIT.

The only way this solution can be implemented is if each and every one of us takes personal responsibility to understand what social credit is all about and spread the word.

This slim book is compiled of a number essays that I have written explaining Social Credit in language everybody can understand. Once you experience the “epiphany” of Social Credit and the scales of contemporary deception fall from your eyes your life will never be the same. I invite you to this epiphany.I have also included three other essays by E.C. Riegel, Silvio Gesell and E. F. Schumacher as their theories will help to expand your conception of money and economics.Ideas have no value without action. If the message of Major Douglass does get through to your consciousness please talk to other people about this most important topic and make a difference because what you think, what you say and what you do, matters. To quote the Social Credit author, M Gordon-Cumming

“I trust, however, that you will find it worth your while to master the not very difficult outlines of the present financial system. You will then discover why your standard of living is tending to decline, or at any rate to fall behind the ever increasing productive power of industry. You will also learn why yourself, your sons and your daughters will almost certainly be involved in another world war. (This book was written in 1935.) The understanding of this point (concerning the meaning of money) can be shown to be of vast importance. Indeed it is not an exaggeration to say that the future of civilisation depends upon a rapid realisation of the true facts of the case.”

Chapter 2.

Henry Ford and Social Credit.

Our world lurches from financial crisis to financial crisis yet very few academics, reporters or commentators point out the fatal flaw in current orthodox economic theory which is the central force behind these crises. The flaw relates to the general LACK OF PURCHASING POWER in contemporary society. As was explained by Major Clifford Douglas in his theory of Social Credit this weakness in classical economic theory is not new and many scholars have explained the problem however, increasingly the solution is being conditioned out of people’s consciousness. The collapse of the international banking system, as a result of the banking crisis has brought this Achilles heel of Keynesian economics into sharp focus. The elite fear that the prospect of a “greater depression” will force change that will eliminate their position of control and privilege. Hence the current “spin” emanating from controlled media outlets.What is the main objective of Social Credit? In essence it seeks to fairly compensate citizens with real purchasing power and thus end the current “trans-national/robot out-sourcing” industrial policy of American and European business leaders. It seeks to replace capital investment with human investment. Why? Because robots though they do the work have no money.

They do not buy cars, raise families, and care for the well being of elderly parents. Robots do not use shampoo, eat food or watch base ball. They do not babysit grand-children or change diapers. They do not munch a candy bar or scoff a pizza. Therefore if robots end up doing all the work who has the money to consume the products they produce? Americans and Europeans must stop looking on their nations simply as mechanical economies and start to see them in simple human terms. Irish citizens must wake up and smell the conceptual corruption in contemporary European Union economic policy.

Why is purchasing power so important? It is fundamental because without money no exchange can take place. In order to understand what I am talking about let us look at the historical example set by Henry Ford in 1920. He completely redefined “classical” economics through the policies undertaken by the Ford Motor Company.

Under “normal” economic theory it was assumed that a corporation could only maximise profits by ideally becoming a monopoly which meant increasing price and limiting supply. Ford did the exact opposite. He had a more holistic view of the role of the corporation in society. He understood the synergetic relationship between money and goods. He DOUBLED the wages of his workers, DECREASED the price of the Model T and in the process remade the Ford Motor Corporation and remade America. (This policy was not inflationary because he knew he could at least double production through increased efficiencies when he doubled wages. This is the essence of the enlightened policy of Social Credit for communities rather than of monopoly credit for social elites alone).

The Ford Company boomed. How did this happen? It was axiomatic. He understood the importance of money and purchasing power in society. With “high” wages Ford’s workers were able to make a good living and have excess funds to save or spend. Accordingly their financial anxiety ceased and staff turnover dropped by a multiple of five in one year. This dramatically decreased management expense and increased productivity. Workers finally had peace of mind. With the increased disposable income in the Detroit area the general economy boomed. All classes of economic sectors expanded. As a result more workers, new business owners, company managers, insurance brokers, real estate brokers, bankers, salesmen, craftsmen, delivery men, builders, farmers and retailers all could afford Ford cars. Demand for the model T exploded through the increased buying power WHICH HE HAD CREATED THROUGH MONEY DISTRIBUTION………………

Like Major Clifford Douglas Ford understood economics and he understood the issue of PURCHASING POWER. FOR HIM PURCHASING POWER WAS NOT CREDIT BUT CASH. HE REASLIZED THAT WITHOUT THE MONEY TO PURCHASE HIS CARS POTENTIAL DEMAND WAS IRRELEVANT. THEREFORE HE INITIALLY REDISTRIBUTED DIVIDENDS FROM THE OWNERS TO THE WORKERS. THIS INCREASED GENERAL BUSINESS ACTIVITY AND TURNOVER EXPONENTIALLY. THESE INCREASED SALE BOOSTED PROFITS TO SUCH A DEGREE THAT THE SAME OWNERS EVENTUALLY RECEIVED INCREASED SUSTAINABLE DIVIDENDS. EVERYBODY WON. THIS BRILLIANT POLICY MADE THE COMPANY.

It built up the economy of Detroit and it helped define America as a country where a factory worker was respected and well paid, not exploited, as had been the case throughout the English industrial revolution. The “American Dream” was Ford’s vision made manifest. It was a dream brought to fruition not through political fantasy but through the hard laws of economics, accounting, finance, production, distribution and marketing. As Ford said in his “Life and Work”:…………

full article  in PDF Doc here: Kindle Booklet Social Credit and Money

 

“Robots Don’t Buy Cars”

 By Christopher M. Quigley B.Sc., M.M.I.I., M.A.

Our world lurches from financial crisis to financial crisis yet very few academics, reporters or commentators point out the fatal flaw in current orthodox economic theory which is the central force behind these crises. The flaw relates to the general LACK OF PURCHASING POWER in contemporary society. This weakness in classical economic theory is not new and many scholars have explained the problem however, increasingly, the issue is being conditioned out of people’s consciousness. The collapse of the international banking system, as a result of the Sub-Prime; “Originate to Distribute” catastrophe, has brought this Achilles heel of Keynesian economics into sharp focus. The elite fear that the prospect of a “greater depression” is forcing change that will eliminate their position of control and privilege. Hence the current “spin” emanating from controlled media outlets. The growth of the “tea party movement” is a case in point. Should this political revolution gain in power the possibility of real change in US economic policy will become increasingly probable thus the perceived need to crush it or at the very least gain ownership and control over it. The end objective of this grass root movement should be the dismantling of FED interest bearing credit policy in favour of treasury cash, the abolition of the “open door” Chinese trade policy  and the redistribution of true purchasing power to the average American citizen for the following reasons:

 

                A.            The current American national debt stands at 14 trillion dollars and change. Average rate of interest on this debt is 2-3% per annum. Thus if constitutionally allowed zero coupon treasuries were used to systematically replace this debt, over say a decade, approximately 280-420 billion dollars per year would be saved for the American tax payer by the year 2021.

 

                B.            China is a tyrannical state. For example every year over 40 million forced abortions are carried out on women due to this state’s repressive “one child per family policy”.

 

                Over the last decade approximately 200,000 American jobs, per annum, have been out-sourced to this tyranny.

 

                Morals matter. This “favoured nation” policy must be reversed because a communist state that pays an average wage of 50 cents per hour to “national” teams of forced labour should not be allowed to compete on a level playing field with a free democracy. Such mis-guided policy is effectively destroying the productive base of America. Obtaining cheap goods through Wall-Mart for an economy is one thing. National self-destruction is another.

 

                 Congress must act and remove this “most favoured nation” status. The successful implementation of the fiscal policy mentioned in note A. above would negate any retaliation that the Chinese elite could muster should they threaten to cease purchasing America bonds, thus collapsing the American dollar.

 

                C.            Without general purchasing power effective demand is neutered. This basic fundamental economic fact is not being addressed by current American fiscal policy. The substitute  policy we mean is not based on a Zimbabwe type action where money is simply released to an economy in an ad hoc manner resulting in rampant inflation. No what we are talking about is a well documented and comprehensively researched theory that binds  real productive resources in a developed economy with an effectively distributed money supply so that the total capability of that economy is fully realised for the benefit of all the community.

 

                 Quantitative Easing does not do this. It does not reach down to the average American where it would stimulate real demand. This existing QE policy is being used to bail out insolvent institutions but it is nor filtering down to “main street” where it would really give “bang for the buck”. To achieve this QE funds could be spent on American schools, freeways, bridges, jobs training, port re-construction, light-rail systems construction, broadband communications roll-out, youth skills training and research & development.

 

Fairly remunerated American citizens with real purchasing power need to replace mechanical robots. Capital investment needs to be replaced by human investment. Robots do not buy cars, raise families, and care for the well being of elderly parents. Robots do not use shampoo, eat fast food or watch base ball. They do not watch TV nor change diapers. They do not munch a mars bar nor scoff a pizza slice. Americans must stop looking on their nation simply as a mechanical economy and start to see it in human societal terms. Americans must wake up and smell the coffee.

 

Why is purchasing power so important? It is fundamental because without money no exchange can take place. In order to understand what I am talking about let us look at the historical example set by Henry Ford. He completely redefined “classical” economics through the policies undertaken by the Ford Motor Company in the 1920’s. Under “normal” theory it was assumed that a corporation could only maximise profits by increasing price and limiting supply. Ford did the exact opposite because he had a more holistic view of the role of the corporation in society. He understood the synergetic relationship between money and goods. He doubled the wages of his workers, decreased the price of the Model T and in the process remade the Ford Motor Corporation. (This policy was not inflationary because he knew he could at least double production through increased efficiencies when he doubled wages. This is the essence of the enlightened policy of credit for communities rather than for monopoly elites). The company boomed. How did this happen. It was axiomatic for he understood the importance of money and purchasing power in communities. With Ford’s workers able to make a good living, their financial anxiety ceased and staff turnover dropped by a multiple of five in one year. This dramatically decreased management expense and increased productivity. Workers finally had peace of mind. With the increased disposable income in the Detroit area the general economy boomed. All classes of economic sectors expanded. As a result more workers, new business owners, company managers, insurance brokers, real estate brokers, bankers, salesmen, craftsmen, delivery men, builders, farmers and retailers could afford Ford cars. Demand for the model T doubled through the increased buying power WHICH HE HAD CREATED. Accordingly profits at the Ford Motor Company dramatically improved as a result of his innovative policy.

 

Ford understood economics and he understood the issue of PURCHASING POWER. FOR HIM PURCHASING POWER WAS NOT CREDIT BUT CASH.  HE REASLIZED THAT WITHOUT THE MONEY TO PURCHASE HIS CARS POTENTIAL DEMAND WAS IRRELEVANT. THEREFORE HE REDISTRIBUTED DIVIDENDS FROM THE OWNERS TO THE WORKERS. THIS BRILLIANT INSIGHT MADE THE FUTURE FOR THE COMPANY. It built up the economy of Detroit and it helped define America as a country where a factory worker was respected and well paid, not exploited, as had been the case throughout the English industrial revolution. The American dream was Ford’s vision made manifest. It was a dream brought to fruition not through political fantasy but through the laws of accounting, finance, production and marketing. As Ford said:

 

                “Power and machinery, money and goods, are useful only as they set us

                free to live. They are but means to an end. For instance, I do not

                consider the machines which bear my name simply as machines. If that was

                all there was to it I would do something else. I take them as concrete

                evidence of the working out of a theory of business, which I hope is

                something more than a theory of business—a theory that looks toward

                making this world a better place in which to live. The fact that the

                commercial success of the Ford Motor Company has been most unusual is

                important only because it serves to demonstrate, in a way which no one

                can fail to understand, that the theory to date is right. Considered

                solely in this light I can criticize the prevailing system of industry

                and the organization of money and society from the standpoint of one who

                has not been beaten by them. As things are now organized, I could, were

                I thinking only selfishly, ask for no change. If I merely want money the

                present system is all right; it gives money in plenty to me. But I am

                thinking of service. The present system does not permit of the best

                service because it encourages every kind of waste—it keeps many men

                from getting the full return from service. And it is going nowhere. It

                is all a matter of better planning and adjustment.”

 

Henry Ford

“My Life and Work”

 

Compare for one moment the circumstances in Detroit in the 1920’s and mainstream America today. The exact opposite is occurring. Meaningful wage levels are being destroyed and thus the required American buying power is contracting  due to systematic out-sourcing of real jobs and the mis-use of capital investment to destroy human action. This system cannot hold. Society is being hollowed out from the inside. Folk do not fully understand the total implications of what is happening due to “dumbed down” educational policies. To replace falling money (wage) levels to facilitate exchange between goods produced for consumption and potential purchasers the banking elites have tried to substitute credit availability. This credit switch to compensate for real wages is an unstable arrangement because debt is very expensive and is non-liquidating other than through bankruptcy or lotto wins or death. This is no way to run nations. It creates constant anxiety and eventual destitution and depression among citizens and society. It is particularly ineffective now that most banks are actually insolvent and are no longer in the position to provide credit in the form of business loans, credit card facilities, car loans, overdrafts or home equity draw-downs.

 

Thus in essence the “solution” to “the problem” in America and for that matter in Europe, is enlightened redistribution of purchasing power other than through increasingly non existent credit. Currently too much power over such redistribution is controlled by banks and associate entities. This money centralization is stagnating the system and the fact that this arrangement failed to regulate itself, and caused a credit collapse, has accentuated the speed of failure by multiples. It is time to change. Society must move on. The intellectual framework to effect this change, as demonstrated by Ford, has been known for over 80 years. Its successful implementation today would bring a renaissance to American commerce and societal development. There is no more important function for Academia today other than to disseminate this vital economic truth.

 

Armed with this knowledge for how long do we allow the folly of present economic “orthodoxy” to continue? To me this situation is akin to an adult perceiving the behaviour of wild and immature teenagers, wondering when the “penny will drop” and wisdom will prevail. To the elites, who must know the truth, this monopoly credit based boom-bust phenomenon is obviously allowed to continue because they have control. Their ownership
motivates them to disregard consequences provided they are protected through privilege.

 

However, I believe that the truth is too obvious to ignore anymore.  The end result of the current regressive financial policies is the on-going development of a new modality which I call: “Techno-Feudalism”. This “Techno-Feudalism” is bringing with it vast disparities in wealth, ownership and opportunity. It will lead to the eventual obliteration of the middle classes in developed nations. It will allow global corporations engineer the slow Fabian demise of effective democratic institutions as increasingly corporate boardrooms rather than governments will define people’s destinies.  Untamed it will break traditional social cohesion and lead to mass unrest, criminality and despair. Is this not exactly what we are witnessing in Portugal, Spain, Ireland and Greece? But the future does not have to be so bleak. The monetary solution of increasing actual purchasing power for average Americans and European is so obvious it is “madness” not to sort it out. The truth must be allowed to break free.

 

“The organism has a right in natural law to draw sustenance from its environment. We cannot with impunity abstract humanity from the natural world. ….

 

Unfortunately, the present financial system creates an ever greater deficiency of effective and unattached purchasing power giving the illusion, through a distorted financial lens, of actual or physical scarcity in the midst of actual and potential abundance…..

 

We are trying to pass from one type of civilization into another in which the possibilities are such that we cannot begin to imagine. That transition, I believe, will best be facilitated in an environment which provides maximum freedom (immanent sovereignty) for the individual in the context of absolute economic security.”

Wallace Klinck

 

In the 1930’s the engineer and self-taught economist Major Clifford Douglas claimed that society was intellectually hypnotized and that only a drastic de-hypnotization and re-education could save it. Douglas believed in people. He felt that individuals had far more goodness and potential than society was allowing them for. He reckoned that if common folk were given enough freedom and leadership they could move society and civilization into a new golden age. An age of extended liberty, discovery, art and culture.  The alternative he felt would be booms, busts, over-consumption, under-consumption, excesses, depressions and wars. Eighty years later this is exactly what the world has experienced and is continuing to experience. However, the period between each stage is narrowing and the level of debt, instability and inequality are exploding beyond comprehension. To followers of Douglas this situation is not happening by accident; it is happening inevitably because the conceptual flaws of the monopoly of credit and the fabricated scarcity of money was allowed to be perpetuated by a privileged banking class.

 

The monetary and economic policies of such people as Henry Ford, Clifford Douglas, E.C. Riegel and E. F. Schumpeter et al are heartfelt attempts to bring about “steady state” change to historical economic orthodoxy. It is incumbent on all interested parties who desire to solve this problem of problems to become educated and aware of the available solutions and to actively participate. Not to do so will allow the current “greater depression” to expand and gain a greater grip on economic activity. History shows that such a development will eventually lead to escalating strife as sure as night follows day. For us who wish to reject regression in favour of progress we must strive to free contemporary economic policy from its death waltz with outmoded Keynesian monetarism.  We must help economic orthodoxy must move on, sanity demands it. The knowledge is there let’s utilise it.

 

 

References:

“Flight from Inflation”

E.C.Riegel

The Heather Foundation,

Los Angeles.

 

“My Life and Work”

Henry Ford

In Collaboration with

Samuel Crowther

 

“Small Is Beautiful”

E. F. Schumacher

 

“Social Credit”

Major Clifford Hugh Douglas

Mondo Politico.Com

 

Wally Klinch

Social Credit Archivist

 

(c) 2012 Christopher M. Quigley

http://www.wealthbuilder.ie

 

Robots Dont Buy Cars

Christopher M. Quigley

B.Sc., M.M.I.I., M.A.

 

http://www.wealthbuilder.ie

 

 

 

Ourworld lurches from financial crisis to financial crisis yet very few academics,reporters or commentators point out the fatal flaw in current orthodox economic theory which is the central force behind these crises. The flaw relates to the general lack of purchasing power in contemporary society. This weakness in classical economic theory is not new and many scholars have explained the problem however, increasingly, the issue is being conditioned out of people’sconsciousness. The collapse of the international banking system, as a result of the Sub-Prime; “Originate to Distribute” catastrophe, has brought the Achilles heel of Keynesian economics into sharp focus. The elite thus fear that the prospect of a “greater depression” will force change that will eliminate theirposition of control and privilege. Hence the current “spin” emanating from controlled media outlets. The growth of the “tea party movement” is a case in point. Should this political revolution gain in power the possibility of real change in US economic policy will become increasingly probable thus the perceived need to crush it or at the very least gain ownership and control over it. The end objective of this grass root movement is the dismantling of FED interest bearing credit policy in favour of treasury cash, the abolition of the “open door” Chinese trade policy  and the redistribution of true purchasing power to the average American citizen. Fairly remunerated citizens need to replace foreign robots. Robots do not buy cars, raise families, and care for the well being of elderly parents. Americans must stop looking on their nation simply as a mechanical economy and start to see it as a human society.

 Why is purchasing power so important? It is fundamental because without money no exchange can take place. In order to understand what I am talking about let us look at the historical example set by Henry Ford. He completely redefined “classical” economics through the policies undertaken by the Ford Motor Company in the 1920’s. Under “normal” theory it was assumed that a corporation could only maximise profits by increasing price and limiting supply. Ford did the exact opposite because he had a more holistic view of the role of the corporation in society.He doubled the wages of his workers, decreased the price of the Model T and in the process remade the Ford Motor Corporation. (This policy was not inflationary because he knew he could at least double supply through increased efficiencies). The company boomed. How did this happen. It was axiomatic for he understood the importance of money and purchasing power in communities. With Ford’s workers able to make a good living, their financial anxiety ceased and staff turnover dropped by a multiple of five in one year. This dramatically decreased management expense and increased productivity. Workers finally had peace of mind. With the increased disposable income in the Detroit area the general economy boomed. All classes of economic sectors expanded. As a result
more workers, new business owners, company managers, insurance brokers, real estate brokers, bankers, salesmen, craftsmen, delivery men, builders, farmers and retailers could afford Ford cars. Demand for the model T doubled through the increased buying power WHICH HE HAD CREATED. Accordingly profits at the Ford Motor Company dramatically improved as a result of his innovative policy.

 Ford understood economics and he understood the issue of PURCHASING POWER. FOR HIM PURCHASING POWER WAS NOT CREDIT BUT
CASH.  HE REASLIZED THAT WITHOUT THE MONEY TO PURCHASE HIS CARS POTENTIAL DEMAND WAS IRRELEVANT. THEREFORE HE
REDISTRIBUTED DIVIDENDS FROM THE OWNERS TO THE WORKERS. THIS BRILLIANT INSIGHT MADE THE FUTURE FOR THE COMPANY. It built up the economy of Detroit and it helped define America as a country where a factory worker was respected and well paid, not exploited, as had been the case throughout the English industrial revolution. The American dream was Ford’s vision made manifest. It was a dream brought to fruition not through political fantasy but through the laws of accounting, finance, production and marketing.

 

 “Power and machinery, money and goods, are useful only as they set us free
to live. They are but means to an end. For instance, I do not
consider
the machines which bear my name simply as machines. If that was
all
there was to it I would do something else. I take them as concrete
evidence
of the working out of a theory of business, which I hope is
something
more than a theory of business—a theory that looks toward
 making
this world a better place in which to live. The fact that the
commercial
success of the Ford Motor Company has been most unusual is
important only because it serves to demonstrate, in a way which no one can
fail to understand, that the theory to date is right.

Considered solely in this light I can criticize the prevailing system of industry and the organization of money and society from the standpoint of one who has not been beaten by them. As things are now organized, I could, were I thinking only selfishly, ask for no change. If I merely want money the present system is all right; it gives money in plenty to me. But I am thinking
of service. The present system does not permit of the best
service
because it encourages every kind of waste—it keeps many men
from
getting the full return from service. And it is going nowhere. It
is all a matter of better planning and adjustment.”

 Henry Ford My Life and Work

Compare for one moment the circumstances in Detroit in the 1920’s and mainstream America today. The exact opposite is occurring. Meaningful wage levels are being destroyed and thus the required buying power is contracting in a structured and planned manner. This system cannot hold. Society is being hollowed out from the inside. Folks do not understand what is happening due to “dumbed down” educational policies. To replace falling money (wage) levels between goods available for purchase and actual purchase capability the banking elites are “managing” the availability of credit. This credit substitute for real wages is an unstable arrangement because the debt is very expensive and is non-liquidating other than through bankruptcy or lotto wins or death. This is no way to run nations.
It creates constant anxiety and eventual depression among citizens. It is
inherently unstable particularly now that most banks are actually insolvent and
are no longer in the position to provide credit in the form of business loans,
credit card facilities, car loans, overdrafts or home equity draw-downs.

 Thus in essence the “solution” to “the problem” in America and for that matter in Europe, is enlightened redistribution of purchasing power other than through non existent credit. Currently too much power over such redistribution is controlled by banks and associate entities.
This money centralization is stagnating the system and the fact that this
arrangement failed to regulate itself, and caused a credit collapse, has accentuated the speed of failure by multiples. It is time to change. Society must move on. The intellectual framework to effect this change, as demonstrated by Ford, has been known for over 80 years. Its successful implementation today would bring a renaissance to world commerce and societal development. There is no more important function for Academia today other than to dissemination this vital economic truth.

 Armed with this knowledge for how long do we allow the folly of present economic “orthodoxy” to continue? To me this situation is akin to an adult perceiving the behaviour of a wild and immature teenager, wondering when the “penny will drop” and wisdom will prevail. To the elites, who must know the truth, this monopoly credit based boom-bust phenomenon is obviously allowed to continue because they have control. Their ownership motivates them to disregard consequences provided they are protected
through privilege.
However, I believe that the truth is too
obvious to ignore anymore.  The end result of the current repression is the on-going development of the new modality which I call: “Techno-Feudalism”. This “Techno-Feudalism” will bring with it vast disparities in wealth, ownership and opportunity. It will lead to an eventual obliteration of the middle classes in developed nations. It will engineer the slow Fabian demise of effective democratic institutions in the West. Untamed it will break traditional social cohesion and lead to mass unrest,criminality and despair. But the future does not have to be so bleak. The money solution is so obvious it is “madness” not to sort it out. The truth must beallowed to break free.

 

“The organism has a right in natural law to draw sustenance from its environment. We cannot with impunity abstract humanity from the natural world. ….Unfortunately, the present financial system creates an ever greater deficiency of effective and unattached purchasing power giving the illusion, through a distorted financial lens, of actual or physical scarcity in the midst of actual and potential abundance…..

 We are trying to pass from one type of civilization into another in which the possibilities are such that we cannot begin to imagine. That transition, I believe, will best be facilitated in an environment which provides maximum freedom (immanent sovereignty) for the individual in the context of absolute economic security.”

Wallace Klinck

 

In the 1930’s the engineer and self-taught economist Major Clifford Douglas claimed that society was intellectually hypnotized and that only a drastic de-hypnotization and re-education could save it. Douglas believed in people. He felt that individuals had far more goodness and potential than society was allowing them for. He reckoned that if common folk were given enough freedom and leadership they could move society and civilization into a new golden age. An age of extended liberty, discovery, art and culture.  The alternative he felt would be booms, busts, over-consumption, under-consumption, excesses,depressions and wars. Eighty years later this is exactly what the world has experienced and is continuing to experience. However, the period between each stage is narrowing and the level of debt, instability and inequality are exploding beyond comprehension. To followers of Douglas this situation is not happening by accident; it is happening inevitably because of conceptual flaws in financial and fiscal policy.

 The monetary and economic policies of such people as Henry Ford, Clifford Douglas, E.C. Riegel and E. F. Schumpeter et al are heartfelt attempts to bring about “steady state” change to historical economic orthodoxy. It is incumbent on all interested parties who desire to solve this problem of problems to become educated and aware of the available solutions and to actively participate. Not to do so will allow the current “greater depression” to expand and gain a greater grip on economic activity. History shows that such a development will eventually lead to war as sure as night follows day. Thus the choice is clear;do we want war or peace? If you opt for peace, as I do, we must strive to free contemporary economic policy from its death waltz with outmoded Keynesianism.Economic theory must move on, sanity demands it.

 References:

“Flight from Inflation”

E.C.Riegel

The Heather Foundation,

Los Angeles.

 “My Life and Work”

Henry Ford

In Collaboration with

Samuel Crowther

 “Small Is Beautiful”

E. F. Schumacher

 “Social Credit”

Major Clifford Hugh Douglas

Mondo Politico.Com

19 Facts About The Deindustrialization Of America

Flag of the United States in the Moon Light 月光...

Image by Yang and Yun's Album via Flickr

19 Facts About The Deindustrialization Of America That Will Blow Your Mind

The United States is rapidly becoming the very first “post-industrial” nation on the globe.  All great economic empires eventually become fat and lazy and squander the great wealth that their forefathers have left them, but the pace at which America is accomplishing this is absolutely amazing.  It was America that was at the forefront of the industrial revolution.  It was America that showed the world how to mass produce everything from automobiles to televisions to airplanes.  It was the great American manufacturing base that crushed Germany and Japan in World War II.  But now we are witnessing the deindustrialization of America.  Tens of thousands of factories have left the United States in the past decade alone.  Millions upon millions of manufacturing jobs have been lost in the same time period.  The United States has become a nation that consumes everything in sight and yet produces increasingly little.  Do you know what our biggest export is today?  Waste paper.  Yes, trash is the number one thing that we ship out to the rest of the world as we voraciously blow our money on whatever the rest of the world wants to sell to us.  The United States has become bloated and spoiled and our economy is now  just a shadow of what it once was.  Once upon a time America could literally outproduce the rest of the world combined.  Today that is no longer true, but Americans sure do consume more than anyone else in the world.  If the deindustrialization of America continues at this current pace, what possible kind of a future are we going to be leaving to our children?

Any great nation throughout history has been great at making things.  So if the United States continues to allow its manufacturing base to erode at a staggering pace how in the world can the U.S. continue to consider itself to be a great nation?  We have created the biggest debt bubble in the history of the world in an effort to maintain a very high standard of living, but the current state of affairs is not anywhere close to sustainable.  Every single month America does into more debt and every single month America gets poorer.

So what happens when the debt bubble pops?

The deindustrialization of the United States should be a top concern for every man, woman and child in the country.  But sadly, most Americans do not have any idea what is going on around them.

For people like that, take this article and print it out and hand it to them.  Perhaps what they will read below will shock them badly enough to awaken them from their slumber.   

The following are 19 facts about the deindustrialization of America that will blow your mind….

#1 The United States has lost approximately 42,400 factories since 2001.  About 75 percent of those factories employed over 500 people when they were still in operation.

#2 Dell Inc., one of America’s largest manufacturers of computers, has announced plans to dramatically expand its operations in China with an investment of over $100 billion over the next decade.

#3 Dell has announced that it will be closing its last large U.S. manufacturing facility in Winston-Salem, North Carolina in November.  Approximately 900 jobs will be lost.

#4 In 2008, 1.2 billion cellphones were sold worldwide.  So how many of them were manufactured inside the United States?  Zero.

#5 According to a new study conducted by the Economic Policy Institute, if the U.S. trade deficit with China continues to increase at its current rate, the U.S. economy will lose over half a million jobs this year alone.

#6 As of the end of July, the U.S. trade deficit with China had risen 18 percent compared to the same time period a year ago.

#7 The United States has lost a total of about 5.5 million manufacturing jobs since October 2000.

#8 According to Tax Notes, between 1999 and 2008 employment at the foreign affiliates of U.S. parent companies increased an astounding 30 percent to 10.1 million. During that exact same time period, U.S. employment at American multinational corporations declined 8 percent to 21.1 million.

#9 In 1959, manufacturing represented 28 percent of U.S. economic output.  In 2008, it represented 11.5 percent.

#10 Ford Motor Company recently announced the closure of a factory that produces the Ford Ranger in St. Paul, Minnesota. Approximately 750 good paying middle class jobs are going to be lost because making Ford Rangers in Minnesota does not fit in with Ford’s new “global” manufacturing strategy.

#11 As of the end of 2009, less than 12 million Americans worked in manufacturing.  The last time less than 12 million Americans were employed in manufacturing was in 1941.

#12 In the United States today, consumption accounts for 70 percent of GDP. Of this 70 percent, over half is spent on services.

#13 The United States has lost a whopping 32 percent of its manufacturing jobs since the year 2000.

#14 In 2001, the United States ranked fourth in the world in per capita broadband Internet use.  Today it ranks 15th.

#15 Manufacturing employment in the U.S. computer industry is actually lower in 2010 than it was in 1975.

#16 Printed circuit boards are used in tens of thousands of different products.  Asia now produces 84 percent of them worldwide.

#17 The United States spends approximately $3.90 on Chinese goods for every $1 that the Chinese spend on goods from the United States.

#18 One prominent economist is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040.

#19 The U.S. Census Bureau says that 43.6 million Americans are now living in poverty and according to them that is the highest number of poor Americans in the 51 years that records have been kept.

So how many tens of thousands more factories do we need to lose before we do something about it?

How many millions more Americans are going to become unemployed before we all admit that we have a very, very serious problem on our hands?

How many more trillions of dollars are going to leave the country before we realize that we are losing wealth at a pace that is killing our economy?

How many once great manufacturing cities are going to become rotting war zones like Detroit before we understand that we are committing national economic suicide?

The deindustrialization of America is a national crisis.  It needs to be treated like one.

If you disagree with this article, I have a direct challenge for you.  If anyone can explain how a deindustrialized America has any kind of viable economic future, please do so below in the comments section.

America is in deep, deep trouble folks.  It is time to wake up.

source http://www.blacklistednews.com/?news_id=10688

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