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Posts tagged ‘Great Depression’

Boom Goes The Dynamite: The Crashing Price Of Oil Is Going To Rip The Global Economy To Shreds

f you were waiting for a “black swan event” to come along and devastate the global economy, you don’t have to wait any longer.  As I write this, the price of U.S. oil is sitting at $45.76 a barrel.  It has fallen by more than 60 dollars a barrel since June.  There is only one other time in history when we have seen anything like this happen before.  That was in 2008, just prior to the worst financial crisis since the Great Depression.  But following the financial crisis of 2008, the price of oil rebounded fairly rapidly.  As you will see below, there are very strong reasons to believe that it will not happen this time.  And the longer the price of oil stays this low, the worse our problems are going to get.  At a price of less than $50 a barrel, it is just a matter of time before we see a huge wave of energy company bankruptcies, massive job losses, a junk bond crash followed by a stock market crash, and a crisis in commodity derivatives unlike anything that we have ever seen before.  So let’s hope that a very unlikely miracle happens and the price of oil rebounds substantially in the months ahead.  Because if not, the price of oil is going to absolutely rip the global economy to shreds.

What amazes me is that there are still many economic “experts” in the mainstream media that are proclaiming that the collapse in the price of oil is going to be a good thing for the U.S. economy.

The only precedent that we can compare the current crash to is the oil price collapse of 2008.  You can see both crashes on the chart below…

Boom Goes The Dynamite: The Crashing Price Of Oil Is Going To Rip The Global Economy To Shreds.


By Christopher M. Quigley

There are very few heroes in economics but for me one of the patron saints of that profession should be Nikolai Kondratiev who was shot by firing squad on the orders of Stalin in 1938. He died for what he believed was the truth. His execution was ordered because his academic work propounded that the capitalist system would not collapse as a result of the great depression of 1929. This truth Stalin did not want to hear, thus Nikolai was exterminated and his work suppressed for over two decades.

full article here in PDF : Kondratieff_Waves_and_the_Greater_Depression_of_2013

Social Credit

By Christopher M. Quigley B.Sc., M.M.I.I. Grad., M.A.
“Banking and credit are too important a business for citizens and politicians to be ignorant of. Upon its fair and equitable administration rests the very existence and future of our society”.
Every society has its orthodoxy. But there comes a time when the “accepted  view” no longer functions. When this occurs it is time for change. The  movement of stars told Galileo that the earth centred Universe was  wrong. The relative inner stability of two moving trains told Einstein  that Newton and Euclid were wrong. The current Sub-Prime credit crisis  is an indication that the orthodox concept of banking and credit is  wrong.
This is not the first time that the failings of the  accepted “credit concept” were identified as being erroneous in an  increasingly technologically efficient world. The great depression of  1929 also gave the same signal. However instead of dealing with the  cause only the symptoms were addressed. Accordingly, another world war  ensued and through “sticking plaster” policy modifications we bungled on for another 80 years. Now, once again, the dormant “error” has become  virulent and threatens the whole.

The disease within the economic body  was diagnosed successfully in the early 1900’s and a solution was  prescribed but ignored. The same remedy will work today but its  successful application requires a “Copernican” change in economic  conceptional modalities. The world was not ready then. Is it ready now?  The cure is called: “Social Credit”.
Due to developments in  technology and technique the age old problems of production and scarcity have been all but solved, the issue now is one of distribution. Money  creates effective demand and orthodox banking and accounting rules makes money scarce. This state of affairs if allowed to continue will result  in:
1. Surplus production due to efficiencies
2. Consequent unemployment and under-employment resulting in effective demand destruction
3. Poverty due to lack of purchasing power
4. Redundant industrial machinery
5. Consequent cut-throat competition
6. Disappearance of industrial profits
7. Consequent business bankruptcy and depression
8. Aggressive competition for foreign markets
9. Consequent international friction and war
In order to prevent the above constantly recurring, as in 1929 and now  with the sub-prime crisis, it is necessary to change our orthodox view  of economics. WE MUST MOVE FROM AN OUT-DATED MINDSET. This does not  require a revolution in society it simply requires a revolution in our  consciousness. However the elite who control the ownership of the  “orthodox” credit myth will not allow acceptance of this alternative  knowledge because to do so will weaken their system of management and  domination. However truth is an amazing thing. Slowly but surely, like a seed whose hibernation is over, the practicality and human goodness of  the concept of Social Credit is germinating. But it needs aware and  dedicated followers to nurture this growth.

For the current economic crisis to be finally resolved the realisation must sink in that BANKING IS NOT SIMPLY AN AVERAGE BUSINESS LIKE ANY OTHER.  On the contrary, upon its fair and equitable administration rests the  very existence and future of our society. Banking and credit are too  important a “business”  for citizens and politicians to be ignorant of.  To deal with this matter we must, to use the words of President Obama:  “up our game” or perish.
The word credit comes from the Latin  word “CREDERE”, meaning “TO BELIEVE”. The essential quality of money,  therefore, is the belief that one can get what one wants when one  possesses it; THUS MONEY IS A SOCIAL CONTRACT BASED ON TRUST AND MUTUAL  BENEFIT. Since credit is a function of money it follows, axiomatically,  that CREDIT IS A SOCIAL CONTRACT ALSO. A society cannot allow a  particular grouping to have a monopoly on the functioning of this social contract because ultimately this group could end up monopolising all  contracts. If you own the contracts you will end up owning society.

The central problem which Social Credit addresses is the negative  consequences resulting from the increasing use of capital in manufacture and distribution. This drive towards capital intensification brings  efficiency but it decreases the requirement for labour. With the loss,  or through the down-grading, of “jobs”, the trend is for higher  unemployment and/or under-employment. With under-employment there is  less purchasing power in the economy thus the true potential capacity of modernity cannot be attained because there is no effective demand,  since desire without money is meaningless in our system.
Social  Credit strives to solve this spiral of lower employment, lower wages,  recession and depression by increasing effective demand in the system by generating societal purchasing power. Purchasing capability is  increased through a social dividend and the adjustment of prices. It  also proposes that the ownership of credit reside with the society  rather than with a monopoly group.

Thus excess reserves owned by credit  institutions, over a certain minimum to allow their sustained and stable operation, are systematically issued to society. Social Credit believes in banking but does not accept monopoly ownership of credit and legal  tender. The objective of such policies are as follows:
1. Money is no longer a commodity controlled by banks
2. Credit is no longer a social contract controlled by banks
3. Boom and bust credit cycles are negated
4. Increased stable purchasing power allows for effective distribution of goods and services. This stability allows better long term decisions to be made by entrepreneurs about the  economy.
5. Increased demand for goods and services boosts an economy centred on smaller community  based businesses.
6. Corporatism diminishes
7. Unemployment and under-employment are seen as opportunities for freedom to develop since  citizens are able to function in the economic system  through receipt of social dividends. Due to a  change in the “zeitgeist” time is no longer equated to work in order to obtain legal tender.
8. Speculation diminishes due to the non availability of “commodity”  credit and a real  economy, rather than a gambling economy, flourishes.
9. Government down-sizes due to the diminished availability of monetised debt.
Many folk have attacked these objectives as idealist or socialist. They are  wrong. In fairness these objectives are based more on community than the commune. But that is the point. Social Credit strives to reaffirm the  supremacy of human association rather than abstract institutionalism.   Capitalism, under our current banking arrangements, and communism  /socialism are all “Cesarist” theories of society; they end in monopoly  ownership of everything. This monopoly results in the “state” or “core  political group” being master of the individual. As a result community  dies and corporatism thrives. The philosophy of Social Credit is the  exact opposite. It believes in the individual and it aspires to provide  the individual with as much freedom as possible. It acknowledges that  the STATE SHOULD EXIST TO SERVE THE INDIVIDUAL ; NOT THE OTHER WAY  ROUND.  Social Credit therefore rejects the dialectic materialism of  capitalism/communism/socialism; and accepts grace.

As this  sub-prime crises festers and invades the social, economic and political  body I hope that more and more like minded people will become focused,  educated and aware. There is no more important goal in life than  actively participating in the growth and development of one’s spirit,  one’s family, one’s community and one’s nation.  “Banking and credit are too important a business for citizens and politicians to be ignorant  of. To deal with this matter we must, to repeat, up our game or perish”.
“Economic Democracy” Major C. H. Douglas Bloomfield books
“Aladdin’s Lamp: The Wealth of the American People” Gorham Munson Creative Age Press: New York
New Zealand Government’s Monetary Committee Notes of Evidence and Correspondence Wellington,  24th. February 1934

Going for Gold

By David Mc Williams

Last Friday’s Financial Times contained an article which suggested that the Republican Party is seriously thinking of returning the US to the gold standard, and that it will discuss this idea at the annual party convention in Tampa this week.
Many people will react to this radical idea by asking if the Republicans have learned anything at all from history. But do they actually have a point?
Surely anyone with a grasp of economic history knows that strict adherence to the gold standard, with the balanced budget mantra, at a time of asset price deflation in the early 1930s exacerbated the recession, which morphed into the Great Depression. But is the case as open and shut as that?
While the lessons of that era are reasonably well accepted, there are also those who will rightly point out that, whatever about the 1930s, anyone with a grasp of recent economic history can see that the massive quantitative easing of the past five years has had little or no effect, other than facilitating a massive increase in the US’s national debt.

full article at source: http://www.davidmcwilliams.ie/2012/08/27/going-for-gold

Now IMF Seeks Collective, World Bail-Out of Europe

IMF wants the world to save Europe … Christine Lagarde, the managing director of the IMF, said the escalating crisis now needed to be addressed as “collectively as possible” … The European financial crisis is “escalating” and is so serious that it is unlikely to be solved by eurozone countries alone, the head of the International Monetary Fund warned Thursday night. British taxpayers are now likely to be involved in an internationally co-ordinated bail-out led by the International Monetary Fund [IMF] for countries in the single currency. Christine Lagarde, the managing director of the IMF, said the escalating crisis now needed to be addressed as “collectively as possible”. Without action, the world faces the spectre of a 1930s-style depression, she said. – Montreal Gazette/UK Telegraph

full article at source:http://www.thedailybell.com/3356/Out-of-Chaos-Order-Now-IMF-Seeks-Collective-World-Bail-Out-of-Europe

BIS Calls for Hyperinflationary Depression?

By the Daily Bell

The Bank for International Settlements Sunday issued an oblique endorsement of coordinated action by the world’s largest central banks to ease funding conditions for banks. “A freezing of interbank markets in major funding currencies, as during the recent crisis, may require the ability to supply official liquidity in major currencies in an elastic manner,” the BIS wrote in its regular quarterly report.” – MarketWatch

Dominant Social Theme: Inflate! And everything will work out.

Free-Market Analysis: We’ve already indicated that we believe the Anglosphere power elite is attempting to create a kind of Great Depression in order to ease the path of world government. This squib of an article in MarketWatch (excerpted above) – unnoticed by most of the mainstream press – only reconfirms our impression.

It endorses recent “coordinated” central banking loosening. But it does more: “A freezing of interbank markets in major funding currencies, as during the recent crisis, may require the ability to supply official liquidity in major currencies in an elastic manner.”

Think about that. The BIS, whatever it is, is all for printing lots of money. And the BIS is no small-time trade group. It is perhaps the most powerful (and least known) global business body in the world. Its mysteries are manifold. its workings are well-hidden.

Of course, somebody actually set up the Bank for International Settlements in the late 1930s. And since then someone has set up or helped set up about 200 central banks around the world, many of them reporting directly to the BIS.

full article at source :http://www.thedailybell.com/3339/BIS-Calls-for-Hyperinflationary-Depression

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