Theory of Disproportionate Borrowing

I do believe there would be revolution if the people of this great nation understood our banking and monetary system. Some individuals even believe there is a secret cabal of Banks working against the best interests of people of the world.

« From:- Credit Crisis or Banking Conspiracy? »

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« Reblogged from: Philosophy page »

Theory of 

Disproportionate 

Borrowing:

The redistribution of consumer wealth increases consumer spending which boosts the economy (often not by manufacturing), causing importation of mass goods -which, in turn, increases the country's debt, thereby causing more inflation; thus, goods rise in price. This price hike means that consumers need to boost earnings or borrow to cover this increase. This cycles on and on until something stops it.


There are two ways to tackle this problem:

A downturns in the country's economy is usually a short-lived problem that stems from a lack of demand. The (John Maynard Keynes - Labour style) solution is a simple but radical one: Involving a short-termed boost in the Government's public spending. (Once the economy returns to a state of buoyancy, the government reclaims its budget deficit by increasing taxes and reducing public spending once more.)

John Maynard Keynes 
(Photo credit: Wikipedia)

This is known as the "demand management policy." It's when the economy slumps and public spending goes up. Then, when trade is booming once again, the government spends little or nothing.

The other method, is to do as the Conservatives have always done (this is the Adam Smith method). Cuts across the board, hitting welfare, unemployment, and the NHS. Hoping this halt in spending balances out the lack of demand enough to kick-start the economy once more.

Profile of Adam Smith 
(Photo credit: Wikipedia)

Both in the past have worked well; however, there are also problems with both economic solutions: These only work well in the short-term and create as many problems as they solve.

The main problem though is one of demand. If there is no current demand, surely it stands to reason that a false boost through an increase in public spending is the economic equivalent of putting a plaster on a knife wound.

It won't work.

Cutting spending only makes life harder, putting a further strain on general consumer spending and the economy in in particular.


So what is the solution?

That's the difficulty. Without demand there isn't much that anyone can do. 

Demand is the only real issue here.

Credit Crisis or Banking Conspiracy?

A follow up article to: 
« The Banks In Crisis - A World Bank is in Order »

Last week I said: "Some believe that the double-dip resession was the calculation of the banking fraternity to 'shear-off' money from the public. That the planned sudden shortage of money was designed to effect money markets across the word; that it was engineered to put people into debt. Thereby, obliging countless millions (who have nothing) to those who have the supply of money - banks and money funds. Surfdom by the backdoor, as it were."

I do believe there would be revolution if the people of this great nation understood our banking and monetary system. Some individuals even believe there is a secret cabal of Banks working against the best interests of people of the world.

In Britain at the moment there is a triple-dip scenario (this is the third recession of the credit crisis here). When, on 14/11/12 the Bank of England warned growth might not get back to pre-crisis levels until mid 2015. GDP (economic output) might only rise by 1% next year. Even so, there are still no prospects for the jobless millions.

Back in June, Robert Zoellick, the outgoing head of the World Bank Group, warned the G20 summit that Europe ran the risk of sparking a 'Lehman-style' global crisis - especially for developing nations - for whom consequences might be quite dire.

(The bankruptcy of Lehman Brothers in September 2008 proved to be the trigger for the deepest slump in the global economy since the 1930s. One we seem incapable of shaking free of.

"...prepare for the uncertainty coming out of the eurozone and the wider financial markets" Zoellick told G20 back in June. "Uncertainty in markets is now starting to increase costs for developing countries. The ripple effects are making everybody's life harder."

World Bank President, Robert B. Zoellick

During 2012 high-income country growth is expected to increase by 1.4%; while, growth in developing country is expected to slow to a measly 5.3%. (According to an update in the Bank's June 2012 Global Economic Prospects, the global economy is expected to increase by 2.5% by the end of 2012 and up to 3% during 2013.)

Zoellick said he was concerned that the prolonged crisis was starting to lead to pressures for protectionism and economic nationalism. (Since the financial crisis began, in 2008, the World Bank Group has committed more than $280 billion to its members.)

I feel he was right and that things can only get worse before thet get better.

"Bankers own the earth; take it away from them but leave them with the power to create credit; and, with a flick of a pen, they will create enough money to buy it back again..."

- Sir Josiah Stamp, Director, Bank of England, 1940.

If there is a world conspiracy of Banks to keep poor-people poor and themselves rich, it would seem to be working.

Banks in Crisis - A World Bank Is In Order

Some believe that the double-dip recession was the calculation of the banking fraternity to 'shear-off' money from the public. That the planned sudden shortage of money was designed to effect money markets across the word; that it was engineered to put people into debt. Thereby, obliging countless millions (who have nothing) to those who have the supply of money - banks and money funds Serfdom by the back-door, as it were.

If this is so, then what of the banking crisis? More money manipulation? I hazard to think not.

Banking District (Photo credit: bsterling)

Decisions taken by administrative bodies, and their appointed delegates, and civil organizations, all employing a variety of methods, none of which give their customers an opportunity to vote "yes" or "no" for the outcome.

Bankers think they own the earth. Our plan is to take it away from them. The power to create money and control credit should be in the hands of the people; in the hands of a world government run to help the people, not harm them. I want nothing less than to create a world system of financial control in public hands, nothing less than the economy of the whole world.

Who's Afraid of World Government? (Photo credit: Truthout.org)

The power of the internet is so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that it encompasses everything. This world conspiracy of social media has been steadily growing. This conspiracy plays a definite recognizable role in most peoples' lives; and it will become the mainspring of every political movement during the 21st century. At last this extraordinary wellspring from the underworld of the geek has gripped the world's people by their hair and become the undisputed master of commerce. The growth of social media has made it possible to centralize the of world's economic control for the direct benefit of the people and not all current economic groups.

A world financial system dominated by the political system of each country but with a centralized head. Credit controlled by one fund, so everyone has the same chances.

Education Is At It's Best When It Is Free...

I believe there's only one thing that matters in this world: Education. Education. Education.

 Cyberpunk65

And education is at its best when it is free... and publicly provided to all.

It is so vital in preparing the youth of all nations... in the foundation of a liberty-loving people with an interest in free world government... that higher education is also free to ALL.

World Education Logo

(As hackers and geeks are fond of pointing out: All information should be 'freely available to all' - and that should include the best education attainable.)

Geek Circuit Polaroid

"There needs to be a focus on the creation of a world of democracy, peace and prosperity for all. For the welfare of the whole world and the new world order."

From The New World Order - A Revolution »

Why Do We A Need Global Government?

Many prominent world leaders have called for a one world government.

The published goal of the (British) Social Media Party is a one world government.

The Commission believes that world events, since the creation of the United Nations in 1945, combined with advances in technology, the information revolution, and the now-global awareness of impending environmental catastrophe, create a climate in which the people of the world will recognize the need for, and the benefits of, global governance...

There is no historic model for the system here proposed, nor is there any method by which the governed may decide whether or not they wish to be governed by such a system...
  - The Commission for Global Governance
Our Global Neighborhood »

The State will look after you "for your best interests," as they say.

Labour Calls for £7.20 an Hour 'Living Wage'

Reblogged from The Writing's on the Wall: i-Politics:


Ed and David Miliband have put their political rivalry aside to work on plans for millions of workers to be paid a “living wage” of at least £7.20 an hour - Read More @ Telegraph »

i-thorts' i-Politics: Welfare Cuts? - Not In Our Back Yard!

Reblogged from The Writing's on the Wall: i-Politics:

BBC reported (Child benefit 'nimbys' accused) that Middle-classes are fuming at the thought of losing some (or all) child-benefit one parent is earning from £50,000 to £60,000 and over. (Families of three children could loose £4,000.)

This comes after poorer couples (working under 24 hour a week between them) lost up to £100 week (£5,200 a year) in working tax from this April ... and no one battered an eye or even seemed to report it. These are families on minimum wage, earning under £6,000.