The Coming Economic Bust and the possible Introduction of the Amero

From Global Research:

U.S. Treasury Secretary Henry M. Paulson, Jr., has joined the chorus of those in high places who are warning of a major worldwide economic downturn.

Paulson was quoted at length in a July 23, 2007, article in Fortune by Rik Kirkland entitled, “The Greatest Economic Boom Ever: Enjoy It While It Lasts.” Paulson’s remarks came in the context of assessing the ability of the highly-leveraged equity, hedge, and derivative markets to withstand the shocks to come. He told Fortune in an interview:

“We haven’t had a global financial shock since 1998. I believe that these large and dramatic increases in private pools of capital and in the credit derivatives markets since then have helped manage and disperse risk and make the economy more efficient. When we do have one—and it’s when, not if; that’s not me being negative, it’s just that we’re not going to defy economic gravity—we’ll be seeing for the first time how some of these instruments perform under stress.”

The Fortune article notes that the fate of the global economy depends in large measure on the ability of the U.S. consumer to continue to buy what the rest of the world produces. But, as Fortune indicates, the economic fundamentals continue to move in the wrong direction.

The U.S. current account deficit, they point out, continues to plunge, heading toward the $900 billion mark, almost nine percent of GDP. U.S. household debt as a percentage of personal income has shot up almost thirty-five percent since 2000. While real income stagnates for the U.S. middle class, asset and commodity prices are surging, with gasoline prices leading the way and the Goldman Sachs Commodity Index doubling since 2001. Financing in the business world is increasingly shaky, with loans to companies with “junk” credit ratings soaring from under $50 billion a year in 2001 to over $200 billion in 2006.

So in other words, the economy has to obey the laws of Newtonian physics, “What goes up, must come down.”

No sh*t Sherlock. Everyone in alternative media on the InnerTubes here has known for quite a while now that that the falsely inflated property values and cheap credit allowing people to spend more than what that earn (which is falling by the day) has been fueling this fake “growing” economy. The sub-prime lending bust is just a precursor to further calamities. But our fearless leaders, Bu$hco and Cheneyburton have of course been silent about this:

What are the politicians saying? Both President George W. Bush and Vice President Richard Cheney, who may be hoping to escape in one piece after eight years of economic malpractice, are silent on the subject of a possible downturn.

Why should they say anything, as far as they’re concerned, especially the NWO patsy Bu$h, it’s “mission accomplished”. Having bankrupted the U.S. economy stupendously through wars for oil resources and cutting taxes for his elitist pals, Bu$h has virtually garuanteed that a crash is inevitable.

But what do the potential Presidential candidates have to say about it? Not much:

Also silent, unfortunately, are Republican and Democratic front-runners Rudy Giuliani and Hillary Clinton.

So obsessed with his image of having been in the vicinity of the Twin Towers on September 11, 2001, Giuliani seems blissfully unaware that there is such a thing as an economy.

Though Clinton speaks of the need for economic fairness, she has few concrete proposals for getting us there. She must also bear some degree of association with the failed policies of her husband’s administration which brought us the strong dollar, the dot-com bubble, and NAFTA, all of which led to the bust of 2000-2002 and the outsourcing of huge numbers of U.S. manufacturing jobs.

 

The only Republican who speaks to broad economic issues is Ron Paul, who has called for the Federal Reserve to be abolished as a step toward financial sanity. We’ll see how Dr. Paul, a long-shot to say the least, fares in the Republican primaries. Party kingmakers are terrified of his rising grassroots support.

On the Democratic side, John Edwards has established his credentials in speaking for the millions of Americans in poverty who have been left out and is broadening his message to include the middle class as well. At the end of a three-day poverty tour to Appalachia, Edwards said in a July 18 speech in Prestonburg, Kentucky, “This cause, this march we’re on, is not just about the poor. Everybody’s at risk. Everybody’s vulnerable.”

Candidate Barak Obama has also discovered the anti-poverty theme, while Congressman Dennis Kucinich has consistently been emphasizing ideas of economic reform while proposing the creation of jobs through such proposals as a Federal Infrastructure Modernization Bank.

I don’t agree with Ron Paul’s economic policies per se, because he advocates no help for the poor and indigent, other than private charities. But I do agree with his stand on abolishing the Federal Reserve System, which he knows is a tool for the NWO and government fascism. His grass-roots support is a surprise for the NWO elites and there’s an extensive campaign to discredit him. It ain’t workin’. But the chances of him getting nominated on the GOPer ticket is zero given that he’s a classic conservative, not a fascist neocon imperialist.

Back on topic, the article’s author offers up a solution to the coming crash and the point of my screed today:

A truly comprehensive program of monetary reform, as I have described in other articles, would provide purchasing power to consumers, businesses, and government at a rate that would match the incredible productivity brought into existence by modern science and technology. This injection of purchasing power, over and above earnings, should no longer be carried out through the unfair and outmoded methodology of bank-created debt.

In other words, there should be enough cash and credit in circulation to purchase what industry can produce, and for people to obtain what they need for a decent life, without our economy constantly having to go deeper and deeper into the red.

To accomplish this, the government can and should make direct cash allocations to individuals without recourse to taxation or borrowing. This infusion of purchasing power is needed because income from jobs cannot keep up with total production when a large portion of industrial earnings is withheld for future innovation, as must be done in today’s technology-rich environment.

For a business entity to remain profitable, it must save and reinvest. These savings are recovered through prices that exceed purchasing power distributed through wages, salaries, and dividends. This leaves a “gap” which today is filled by bank-credit. But it’s the wrong way to run an economy. The gap, which is a normal feature of industrial production, should instead be filled by free government-distributed credit through what has been called a National Dividend.

A National Dividend should not be tied to employment. It should be obvious that as fewer workers are needed to produce more and more goods and services, the benefits of rising productivity can only be realized if the government provides purchasing power to individuals and families whether they are working at the moment or not. Such allocations could be made without inflationary pressures as long as they did not exceed the economy’s producing potential.

Similarly, the system of public finance whereby the banking system creates credit out of nothing in order to lend money back to the government has never made sense. As Thomas Edison and others in U.S. history have pointed out, the government can just as well create and spend interest-free money directly into circulation as was done successfully with the Greenbacks during the nineteenth century. 

A comprehensive system of reform measures suitable to today’s conditions would include 1) cancellation of substantial portions of existing debt; 2) direct issuance by the government of a guaranteed basic income/National Dividend that would average at least $12,500 per person per year; 3) direct spending by government on infrastructure improvements; 4) a new system of low-cost credit for consumers and small businesses; 5) abolishment of the Federal Reserve as a bank of issue with its retention only as a financial transaction clearinghouse; and 6) elimination from the capital markets of all bank lending for financial speculation through return to the “real bills” doctrine of lending.

These provisions would acknowledge the awesome power of credit creation as a public utility as provided for by the U.S. Constitution in the section that grants Congress the authority to regulate the money supply. Such a program would also allow a significant reduction in taxation. Day-to-day responsibility should be vested in a Monetary Control Board reporting to the executive branch, as provided for in the model American Monetary Act drafted by the American Monetary Institute.

If I read this correctly, he is advocating direct government income to citizens in order for them to survive economic down-turns and to buy the everyday necessities. Small businesses would also receive direct payment from the government. But what does this plan eerily sound like?

If you said communism, give yourself a reward of your choice. My theory is that in order to accomplish this plan, the economic system has to be totally destroyed first before any of this can be implemented, the whole shooting match has to be done from scratch. Wouldn’t that be an opportune time for the amero to be introduced? Wouldn’t that also be a good time to form an economic zone that encompasses Canada, U.S. and Mexico, because government officials would bloviate the benefits of joining the economies of all of North America to recover from financial ruin?

Am I nuts? Am I a tinfoil hat crazy? You bet. But look around yourself for a change. What do you see?

U.S. Treasury Secretary Henry Paulson: Coming Financial Crash Shows Need for Immediate Monetary Reform

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10 responses

  1. As everyone has undoubtedly noticed, inflation has creeped steadily upward this year; groceries, gasoline, medicines and other household goods are rising faster than people’s ability to pay for them.

    How long will it be before we need wheel-barrows of worthless petrodollars to buy a loaf of bread or a gallon of milk?

  2. Uber Highwayman | Reply

    I was beginning to wonder if I shouldn’t just pack it in and resign myself to mediocrity until I saw your summation, Dad! You’re right… it IS socialism, and brilliantly disguised, I might add!

    Everyone thinks we have it so shit hot up here in Canada. Medicare still didn’t fill the bill when I was nearly killed in a highway accident. It was private insurance that came through for me in that instance, the same type that you have in the states. With everyone ‘on the dole’ as it were, and even with our comparatively smaller population, we are reduced to standing and waiting in long lines for even BASIC health services, with many giving up and going south to get the treatment they need before they die.

    ALL privately-run central banks are a curse… I’ve ranted about the Fed almost since I was in diapers. Our version, the Bank of Canada, is merely a collection instrument for the bankers in England, who are reducing North America to economic serfdom with their money-issuance monopoly.

    A credit-based economy will never work, and you’re right about mission accomplished; the elitists have enslaved us with debt. The warnings of the forefathers went unheeded in people’s greed for riches and an easy life that surpassed their means to sustain it. “Keeping up with the Jone’s” has been our main objective, and chasing after a self-perceived level of prosperity involving the over-extension of our personal means and physical abilities has done us in.

    I still envision a cashless system for North America. The social and economic enslavement projected by some that is enabled by a common currency exists now with crushing debt. The icing on the cake — and TOTAL control — of the citizenry would be assured by a system of digitalized credit involving a chip or card. After all, why would they have been pushing plastic if they were interested in a common fiat paper currency except as maybe a diversion from their real intentions?

    As in a true socialist world, we would all be allocated a certain amount to live on, and no more. Just enough to keep us alive and in serfdom… and perpetual slavery. I have family with the breadwinner unable to work because of severe health issues. The government ‘looks after’ them… and they are virtual slaves, unable to go anywhere or do anything without their caseworker’s knowledge or permission. This the forerunner for what is intended for ALL of us!

    WE are headed for a crash all right, my friend… and it is going to make all others seem like a walk in the park! It was planned that way and assured by the institution of private banks controlling public funds in 1913. People think George Bush is the worst president in history? See this:

    “This Act (the Federal Reserve Act, Dec. 23rd 1913) establishes the most gigantic trust on earth. When the President (Woodrow Wilson) signs the Bill, the invisible government of the Monetary Power will be legalised… The worst legislative crime of the ages is perpetrated by this banking and currency Bill.”
    Charles A. Lindbergh, Sr.

    (Woodrow Wilson, the banker’s president, consigned America to their fate in 1913. He later, publicly, acknowledged his folly and admitted he had “sold out” his country.)

    “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”
    Thomas Jefferson (1743-1826), US Founding Father

    “I believe that banking institutions are more dangerous to our liberties than standing armies.”
    Thomas Jefferson

    “The real menace of our Republic is the invisible government which like a giant octopus sprawls its slimy legs over our cities states and nation. At the head is a small group of banking houses generally referred to as ‘international bankers.’ This little coterie… run our government for their own selfish ends. It operates under cover of a self-created screen…[and] seizes…our executive officers… legislative bodies… schools… courts… newspapers and every agency created for the public protection.”
    John F. Hylan, Mayor of New York (1918-1925), in speech on March 26, 1922

    “History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling the money and its issuance.”
    James Madison (1751-1836), Father of the Constitution for the USA, 4th US President

    And the sad fact is:

    “History teaches us that man learns nothing from history.”
    Georg Wilhelm Friedrich Hegel

  3. Too true, but our present system is starving people into bankruptcy and into the streets. This is intentional so people will support socialized medicine. I am guilty on that count because I use the VA system here since my insurance here at work won’t pay for anything since my open heart surgery 2 years ago. And I take a fist-full of meds to stay alive. I was told they’re going to feed me meds because the State doesn’t want to support me. I don’t think the doctor was kidding.

    So even if we go to Cook’s neo-communist system of minimum payments for subsistence, I’m sure we’ll have to “earn” that little bit for our supper. Probably in military-industrial-complex call centers spreading propaganda to the masses and the current enemy ‘du jour’.

  4. BTW, if that sounds like the job Winston Smith did in Orwell’s 1984, it’s intentional.

    And we’re headed that way mighty fast.

    Even down to the ten or less political “zones” that are to take the place of nations.

    Of course you know this better than I UH, since you’ve been studying this for 25 years. I’m just a novice.

  5. Uber Highwayman | Reply

    I don’t know what the exact administrative layout of the NWO globe will look like, but I know that for complete control of the masses you have to remove any and all forms of personal autonomy. If a man has cash of any description in his pocket, he has a certain amount of freedom and power. A dictatorship of global proportions cannot allow that, and we shouldn’t think that just because Europe has a common currency that we will have one, too.

    I see the Euro as a preparatory if not diversionary tactic geared toward eventual cashlessness. Preparatory, in the sense that it serves to help dissolve borders and sovereignties. Only if people are on an ‘allowance’ of some form, can they be controlled entirely.

    New-Agers have been promoting the idea of a card or chip for a long time, now. People have gradually become used to this and even scoff at it. I know what fiat currency is designed for… to collapse economies and individual governments. It was never designed as a permanent means of tender. Once the job of creating financial ruin is accomplished, the first objective of totalitarianism is met, which is to subdue the population and make it unable to function independently. The second and final stage is subjugation and enslavement.

    I’m sure that we’ll all have jobs (those that survive) in the fascist new world order, probably as tradespeople in factories and agricultural applications. They still need servants to feed them and haul their useless asses around. Intellectuals and other ‘artsy’ types would be viewed as a threat, and probably eliminated. If you ever watched the movie “Schindler’s List” you would know what fate awaits the intelligentsia apart from a blue-blood pedigree.

    It’s all about control, and how to keep it.

  6. If I read this correctly, he is advocating direct government income to citizens in order for them to survive economic down-turns and to buy the everyday necessities. Small businesses would also receive direct payment from the government. But what does this plan eerily sound like?
    ———————-
    Yes, I said communism! That’s exactly what it is! Yikes!!

  7. Give yourself a reward Suzie, before some beaurocrat tells you it’s “bad” for you.

    I never considered myself a libertarian, but 150 years ago I would’ve been one. A homesteader doing my own thing and no elitist a$$hole trying to tell me what to do.

    The system has been worked and gamed to the ultimate climax that’s going to happen soon. Slavery awaits us all unless we answer the final bell.

    Unfortunately, I’m not too optimistic at the moment.

  8. There’s an article in USA Today on the real estate mess dragging down the American economy.

    Houses in New Orleans won’t sell because it costs $10,000 to $12,000 a year for homeowners insurance. The Bush junta can’t or won’t fund a Federally guaranteed insurance pool to lower the risk to insurance companies and the result is homebuyers can’t afford the premiums.

    The piece goes on to say there’s a 16 year supply of unsold house in the USA. Meaning, if houses begin selling tomorrow, it would take 16 years to exhaust the inventory. It’s extraordinary and bodes badly for the American economy, despite all the happy talk about the economy that flows from this administration like diarrhea from your rectum after a jaunt to Mexico.

    Also, the debt and deficit is at record levels. No wonder the US government is the world’s largest drug dealer, overseeing the production and export of Afghanistan’s cocaine crop under the watchful eyes of the CIA. This dirty little secret has been going on since the US military invaded Afghanistan back in 2003.

  9. That was another reason the Taliban in Afghanistan was taken out, they stopped the poppy trade when they were running the country.

    The Bu$h family has been involved with every kind of illegal activity known to Man since the Depression. Drug dealing is just one of many. No wonder the NWO finds them to be useful.

  10. [...] The Coming Economic Bust and the possible Introduction of the AmeroJul 25, 2007 … The Coming Economic Bust and the possible Introduction of the Amero. July 25, 2007. From Global Research: U.S. Treasury Secretary Henry … [...]

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