| Subject: | [socialcredit] The Truth: Recession, Depression, Financial Crisis & Money Control | | Date: | Wednesday, January 16, 2008 00:09:21 (-0800) | | From: | Eric Encina <ericencina @.....com>
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THE TRUTH: Recession, Depression,
Financial Crisis & Money Control By Eric V. Encina IN TIMES OF DESPAIR, PEOPLE WANT HOPE
AND LOOK FOR DIRECTIONS AND NOT SILLY POLITICAL AGENDA AND ECONOMIC
BLUEPRINT! Here, it is indispensable to exactly define recession,
depression, financial crisis and money control before we can proceed to diagnosis
whether any of these, is existing in the country and in the world particularly in
the US economy. Or what is
exactly happening, and what is the truth of the economy. Recession is when there is involuntary unemployment, and the economy is
unable to sell all the products it produces for sale. Other definition
of recession is: According to the NBER, a recession is "a significant decline in
activity spread across the
economy, lasting more than a few months, visible in industrial production,
employment, real income, and wholesale-retail trade." Contrary to popular
wisdom, recession is not tied directly to a decline in the gross domestic
product. The gross domestic product is measured only quarterly and is continually
revised (often years later), and the NBER prefers to use monthly indicators such
as employment, personal income, and manufacturing sales. Depression is the same, only more acute and more
prolonged. Depression is simply a severe recession - or a
recession is a mild depression.....Stagflation is a period of recession where
prices are rising - the word is a contraction of STAGNATION and INFLATION.
Over the four years from 1929 to 1933, production at the
nation's factories, mines, and utilities fell by more than half. People's real
disposable incomes dropped 28 percent. Stock prices collapsed to one-tenth of
their pre-crash height. The number of unemployed Americans rose from 1.6 million
in
1929 to 12.8 million in 1933. One of every four workers was out of a job at the
Depression's nadir, and ugly rumors of revolt simmered for the first time since
the Civil War. Financial Crisis is when the public
loses confidence in financialinstitutions such as banks, and therefore want
actual legal money fromthem, rather than their promises to pay, which are
normally accepted as money. This takes us back to the two
sorts of money that we use in our economy. One is
legal tender money, coins and notes
issued by or on behalf of the state, which creditors are legally obliged to
accept in settlement of what is owed to them. The second is bank created credit
(at least 95% of the total money supply), which is no more than a bank's promise
to deliver legal tender money on demand, given in exchange for a borrower's
promise to repay, usually over a period of time. Money #1 cannot be
destroyed, and therefore circulates from producers to consumers and back
again. Money #2 is continually being created and destroyed,
as loans are made and repaid. This leads therefore to "trade cycles", where
inflation alternates with recession, as bank money is created and withdrawn. A particular effect of financing business capital through bank loans
(a very common practice) is to create credit money at a time when capital goods
(factories, machinery, etc. etc) are being produced, workers are receiving
incomes, but nothing more is going on the market for people to buy. When the
factory is completed, and workers are laid off, goods start
reaching the market, businessmen start wanting to repay their bank loans, but
the laid off workers now have no money either to buy the products, and the
businessman therefore finds it impossible to repay his bank financing. (This
explains the Douglas A+B theorem, where A is wages, and B is capital costs).
Therefore we have recession. Money Control is the
control of money by the private bankers for private interest and profits through
debt and
interest money creation chartered and protected by the government. Let us see and make some conclusion is exactly happening in
the world through the use of the definitions above. THE TRUTH: VERITAS VOS LIBERAVIT.
IN TIMES OF ECONOMIC AND FINANCIAL TYRANNY, PEOPLE
LOOK FOR REFORM OF THE SYSTEM AND NOT A CONTINUATION OF THE STATUS QUO! We are currently at dilemma. Some in near panic. Some are
in fact in real crisis. Some are actually effected and suffering. So many peritus
or experts in economics and social sciences who say different things, usually in
confusion, or say something in similar meanings but different angles while some
in contradiction to each other. And since we are at this seemed to be intractable
confusion, or at the crossroad or about to make crucial decisions, let us pose
the following questions. (Below are my own diagnosis open for correction) Is there really a recession in the US and in the
world? Are we indeed heading off uncontrollably to this type of economic
slowdown? Can we survive? Is depression possible again in this age of global
plenty? Or we are just in financial crisis because of the present money system?
Or money is simply but astutely controlled to create artificial crisis like
this? Are we realistic? How could, in this age of global
plenty, the world be in recession down to depression or financial crisis? IS THE
PRESENT BANKING SYSTEM ASTUTELY DOING A GIMMICK TO USE OR CAUSE RECESSION OR
DEPRESSION OR FINANCIAL CRISIS FOR FURTHER CONTROL OF MONEY? THE US , FIRST WORLD NATIONS AND EUROPEAN UNION
NATIONS AND THE CONFLICTING SCENARIOUS: The
economic situation in the US , Japan , China and in EU is too vague, crazy and seemed to be under heavy
conspiracy by the powerful few—the global manipulators. The news that came out,
that US States authorities in NY and Connecticut are investigating whether Wall
Street banks hid crucial or delicate information about high-risk home mortgage
loans that have bundled into securities that were eventually sold to investors,
is important to take a hard look for the possibility of banking conspiracies.
But up to what extent the investigation would be? – is the question. However the
said crucial information evolving the high-risk home mortgage loans in the US
that presently causes housing bubble and credit crunch is primarily caused by the
banking system, simply, the way money is created as a debt. The banks are also
expert in using very broad, vague, boilerplate terms
and disclaimer language that consequently failed to disclose fully, accurately
and fairly all the information on home mortgage loans. It is also undeniable that
there are conflicts of interest or management in the home mortgage loans
industry. THE QUESTION: IS THIS A BANKER’S TRICK? How could it have been made
possible that $billions of dollars of home loans in the US that have been
contracted to banks in that magnitude and that include the US largest savings and
loan Washington Mutual Bank? BUT IT MUST BE NOTED HERE THAT OVER THE YEARS, THE BANKING INDUSTRY
HAS GOT PRETTY BIG PROFITS TO HOME MORTGATE LOANS INDUSTRY. The only problem now
is so simple, the US borrowers cannot pay their home mortgage loans, as they
say there is a recession. NOW THE QUESTION IS:
WHO BENEFITS? WHO IS THE BRAIN? WHO IS THE AUTHOR? What is
the cause of recession? Certainly, the borrowers could never be the author of
recession. Who is responsible to recession? The
US Federal Bank officials said they stand ready to take out great ‘insurance’ or
back or a guarantee to banks against the increasing risk to recession. FED
officials are trying to lull the US citizens and the consumers that they are
most concerned t
consumer spending. And they pledged to take substantive additional action to
spur traders to predict faster and deeper pace of interest-rate cuts as
announced. But the bottom line is: FRB is just
actually ready to primarily save the banking industry before it could try to save
the consumers. FRB to help the borrowers r the home mortgage borrowers remains to
be seen. After all, it remains that debt for the people
and billions for the bankers. They just want to
lower the borrowing costs but they remain to keep the POPULATION IN THE BONDAGE
OF DEBT. The magnitude of the crisis remains the same. The problem with Federal Reserve Bank like any other
central banks in the world is that it mixes up the borrowing costs with
inflationary pressures. If they say they are worried about consumer spending, why
it is that money is loaned at interest? The decline of the house prices that are
likely and certainly damp consumer and business confidence in spending, is not
only caused by the inability of the US home mortgage borrowers but by the banking
system itself. If FRB is serious enough to remain
exceptionally alert and flexible at they say and as they stand ready to take
substantive additional action as needed to support growth and to provide adequate
insurance against downside risks, THEY SHOULD CONSIDER REFORMING THE MONETARY
SYSTEM IN THE USA. US economic
stimulus package is not transparent, useless and astutely favorable to criminal
banking system with implications and repercussions to third world nations. The way to address or being addressed the
US ailing economy by the US Government is through the provision of
economic stimulus package. But, the problem is: this package is only actually
favorable to criminal banking system. The infusion of credit to banking system to
add spuriously the banking reserve as a plausible screen to hide the money
creation out of nothing, and then continue lending to US borrowers even at the
interim low interest rate remains to be useless. US borrowers would continue
borrowing, and would be lulled to further borrowings and be manipulated, and at
the end, the borrowers on the same vicious cycle, practically on the debt trap
that eventually leads to poverty and unemployment. If the US Government is looking indeed
at things that could be done quickly as time is of the essence to address the
lingering financial crisis, this must be MONETARY REFORM IDEA OR SOLUTION. There
could be no permanent solution within the structures of the debt finance. All
other solutions are only short-lived and very temporary ---that after band-aid
solutions, there is another bunch of problems worse than earlier. THE US PRESIDENT PROPOSAL TO EASE THE CRISIS THROUGH TAX CUTS
AND OTHER FISCAL MEASURES TO PURPORTEDLY SPUR GROWTH TO BE HIGHLIGHTED ON HIS
STATE OF THE NATION ADDRESS (SONA) ON JANUARY 28, 2008 IS CERTAINLY TEMPORARY IN
NATURE. How could it be possible when the US $ currency is falling its value
than
competitive Euro? How could it be when the US is now on the whooping and
ballooning total of US$46Trillion debts after long years of non-stop borrowing
and military spending, paying interest to private Federal Reserve Banks and
wasting money overseas for the so-called US Aid schemes in support of US foreign
policies that only went to expanding bellies of corrupt third world government
allies and officials? And the waste of money for the so-called chemically-based
POPULATION CONTROL PROGRAMMES? WOULD IT MEAN THAT THE US WILL USE ONCE AGAIN
THE POWER OF THE IMF TO EXTRACT MORE MONEY FROM THE THIRD WORLD LENDING SYSTEM AT
INTEREST TO SUBSIDISE THE US AILING ECONOMY? Experts say US recession is
unavoidable but a kind of recession like this might be artificial and has been
created for the interest of the few and the powerful in the banking industry and
multinational corporations. How could it be possible USA that has the large
percentage of export and import products and resources could be in recession?
US consumers face a variety of challenges including
declining house prices, rising energy costs and a weaker job market due to US$
currency fall. But it must be noted here that under the DEBT MONEY SYSTEM, any
currency would continue or would remain volatile, inevitably to fall or
fluctuate. It is the system. That’s why a reform of the system is needed to
permanently fix the economy. Contrary to orthodox economic formula and
understanding, the economy by itself is not exactly slowing down, this is the
target of blame, but it should be the present financial system or the banking
system and the way it is operating that should be the target of blame.
TEMPORARY VERSUS PERMANENT: Under the system, any solution that is crafted to address the crisis is only
temporary. THE BANKERS MAKE MONEY BY CRAFTING TEMPORARY SOLUTION like interest
rate cuts but also in due course CREATE PERMANENT OR LONG-TERM
PROBLEMS TO THE BORROWERS. US Congress and
Senate leaders who support Pres. Bush to buttress consumer confidence and avoid
recession are on the same height of infinitely silly money system trap that
continues to create debt in America . The long-term solution is debt free
money for America .
Any temporary solutions like tax rebates aimed at low-and-middle income
Americans and tax breaks for business investments as part of a potential stimulus
package are just a kind of trap of US FRB interest-rate cuts. THIS IS A NEW
ASTUTE FORM OF THE WEB OF DEBT. Interest rate cut could not be a ‘substantive
additional action’ to aid the US economy under the debt money system
regime. FINANCIAL CRISIS AND RECESSION: There is a wrong target.
Before we address the effect, we must address at first the root-cause. The
root-cause of recession is the financial crisis. The root-cause of financial
crisis is debt money system. It’s simple. The problem is the bankers and the
economists make it too complicated and going to far.
UNFAIR
FINANCIAL AND BANKING SCHEME: The US Government and the
FRB are doing what they could to avert the lingering crisis but at first they are
impelled to save the banking and financial industry that claim to be writing off
billions of dollars on investments in mortgages and loans that went or go bad.
But it seems there is no strong indication or commitment that
US Government and the FRB would be willing to save the American borrowers
from huge indebtedness. The system is a crazy vicious cycle.
To only
specifically address recession alone, without definitely having to address the
root-cause of financial crisis is just like chasing the wind.
Financial crisis which is
being rigged by the banking system continue to cause crazy economic economics,
debt, inflation, devaluation of currency, deficit spending, stocks floundering
and with devastating effects to human life. EURO VERSUS
US DOLLAR: The global bankers,
central bankers, commercial and private bankers are at play to continue rigging
and lulling the peoples. Blaming the Euro currency (which could be a sham) that
might stifle economic growth or global economic growth is useless while the
banking system continues to leech and suck the lifeblood of the economy and while
the system is not addressed to overhaul how money is created – which is the
root-cause of most problems. It has been reported that Euro’s gains are harming
the economy of the 15 nations sharing the currency and might exacerbate a
forecast slowdown in economic growth. The appreciation of Euro
currency over US$, Chinese Yuan and Japan Yen is believed to be hostile to
economic growth of 15 nations. This might be authentic but if we would look at
deeper level, the main cause of the problem for growth is not only the imbalances
between the difference currencies but of the central bank policies on interest
rates dictated by BIS – Bank For International Settlement – based in Switzerland
– the central bank of all central banks. The progressive gaining of Euro currency
over US$ is admittedly not good for the bankers and investors but not exactly to
consumers, not good for the US economy in particular and to Chinese Yuan and
Japan Yen, however, this has aided to reduce the currency competition in the
world. Currency competition is also a
gimmick of the banking system to make profits. The EU
Commission is looking forward to cut is 2008 growth forecast as a result of the
fall-out from the financial-market turmoil in the US. But cutting the 2008
economic growth forecast to EU nations would also affect eventually the financial
status of the EU citizens. THE PROBLEM IN THE PRESENT FINANCIAL SYSTEM IS: WHEN
OTHER MAJOR CURRENCIY IS UP, THE OTHERS ARE DOWN! And this is manipulated by the
consensus of banking cartel and policies of the central bankers with the major
decision coming from Switzerland-based BIS. If, the Euro currency will fall,
which is also probable, in the future, then US$ will regain its value. WE ARE
PLAYING YO-YO CURRENCIES! And this is the stupidity of the banking system.
PHILIPPINE SITUATION: If the US ailing economy is really driving the American citizens in
nearly credit crunch and money panic and home mortgage loans, and the falling
value of US$, we, the FILIPINOS are in entrapped in the deadly FINANCIAL
SITUATION under the present money system, that without overseas remittances from
the Filipino contract workers and Filipino immigrants and migrants (WHO ARE IN
EXODUS OR IN DIASPORA that signals for terrible brain drain) sending money
back home and or without personal help from the other countries, we would
certainly be in the dungeon of hell. Due to increasing expenditures as pressured
by the increasing prices of basic needs and services, the indebtedness of
many, caused by the imposition of the additional taxes, more Filipino
families in the countryside are not jut in pinch in the succession of hunger and
poverty but actually in deadly hunger and poverty. THE
EXPENDITURES FOR THE LIVING OR THE RIGHT TERM, FOR SURVIVAL are rising faster
more than twice, some say, more than thrice than meager or poor incomes. The
claim of appreciation of Philippine Peso currency over dollar which is being
touted is very ridiculous. The boisterous but silly
claim that Philippine Peso is a strong currency is ridiculous, sham and deceptive
when MONEY IS VERY SCARCE, when daily minimum wage is not met for the majority of
employed or is too weak, when the prices of basic needs and services continue
rise to sky, when millions are unemployed, when the country is enthralled and
bound to
endless indebtedness and continue borrowing money to foreign banks and when the
country is in childish political troubles. VERY SIMPLE: WHAT IS THE STRONG PESOS
(if ever this is true) WHEN THE MONEY IS ACUTE SCARCE? It is true that our
Philippine Peso already appreciated? Are we stupidly gullible? OR IS THIS A
SORT OF MONETARY GIMMICK OF THE CENTRAL BANKS AND THEIR COHORTS? THE
INTERNATIONAL BANKS ARE ALSO BEHIND THIS TRICK AS USUAL to get the Philippines continued its addiction to foreign borrowings and pay more
interest. They say strong Peso means we could borrow more and pay more. This is
another stupidity of the banking system. All these things are not accidental, they are
well-planned and crafted so astutely for the benefits of the powerful few.
IMF’s
INSISTENCE of 12% E-VAT to oil/gasoline prices in the Philippines: Just like an alligator or a dinosaur, IMF insists not
to scrap the 12% Expanded Value Added Tax or E-VAT on oil/gasoline prices despite
of the pressuring world oil prices increase to over $100-per-barrel mark. Morgan
Stanley, Inc. has projected that oil could hit $115 per barrel so soon. Filipino
Senator Mar Roxas has used the projection to press the point about SUSPENDING the
EXPANDED VALUE ADDED TAX on petroleum products but vehemently opposed with
displeasure by IMF officials. IMF IS THE PRINCIPAL AUTHOR AND DICTATOR OF THE 12%
EXPANDED VALUE ADDED TAX IMPOSITION which has been legislated and put into
effect under pressures IN THE PHILIPPINES BECAUSE OF
THE CONTRY’S HUGE FOREIGN DEBTS – which has been finally decided as legal and
necessary by the collusion of the PHILIPPINE SUPREME COURT in 2005. As a Filipino Social Crediter/ Monetary Reformer, I support the move
of Sen. Mar Roxas, but unfortunately, we still differ in understanding. I
do not agree with him that only petroleum products could be subject from 12%
E-VAT lifting mechanism while the Senator continues to support the E-VAT
IMPOSITION TO OTHER BASIC ESSENTIALS LIKE FOODS AND MEDICINES for the living.
This is
useless! WHAT WE NEED IS THE ABOLITION OF 12% EXPANDED VALUE ADDED TAX as this
is added millstone to Filipino people in the darkness of debts and poverty. TO
CONTINUE COLLECTING TAXES plus 12% E-VAT is tantamount to murder the hungry
Filipino people. IMF RESIDENT REPRESENTATIVE IN THE PHILIPPINES, REZA BAQIR IS ECONOMICALLY CRAZY: The IMF Resident Representative in
the Philippines is economically crazy, dictating the government once again by
insisting the 12% E-VAT as necessary to petroleum products. And 12% E-VAT is
necessary for the Philippine government to find sources of revenues and to find
ways to shield the poor Filipinos and other vulnerable sectors from the impact of
high oil price. He said: ‘A GOOD WAY TO DO SO IS TO ALLOCATE REVENUE TO
SOCIAL SPENDING, PARTICULARLY ON EDUCATION AND HEALTH PROGRAMMES.” But how
could it be when 12% E-VAT
collection is directed to address budget deficit, payment of interest to
foreign debts? Most of the victims of abnormally high petroleum prices are the
ordinary Filipinos: the drivers, the passengers due to increasing transportation
and employment travel costs, the small and struggling business peoples,
manufacturers, producers, farmers and ordinary workers. THE DICTATORIAL STATEMENT OF IMF TO PHILIPPINES GOVERNMENT to collect
more taxes like 12% E-VAT to help the poor is stupid! WHAT THE GOVERNMENT SHOULD
IS TO
CREATE THE FIAT MONEY DEBT AND INTEREST FREE to help the poor by the provision
of the EXTRA BASIC INCOME to every Filipino citizen particularly the very poor
families frequently threatened by hunger, poverty, unemployment and calamities.
This is the best fiscal reform than the IMF-IMPOSED crazy fiscal reform of
imposing more taxes and pressures to foreign borrowings than ever and being
followed by privatization and sale of government assets in favor to
multinational corporations that are voracious and without conscience. PHILIPPINE AND THE CALL CENTER – BPO INDUSTRY UNDER THE PRESENT
SYSTEM: The Philippines continues to welcome or sell
BPO Business Process Outsourcing industry to First World Nations through
investment incentives, low tax and other methods of persuasion. The multinational
call center companies continue to move to Philippines and
to other third world nations PRIMARILLY because of CHEAP LABOR AND OPERATING
COSTS. Call Center Company branches in the Philippines are squeezing the Filipino
call center agents, having no options to employment, to the bone in the so-called
graveyard shifts with extremely stressful working condition at $5 daily/nightly
allowance for trainees or $10 to $20 daily/nightly more or less with they say,
some commissions and differentials. Some call center trainees who are on
training are not given allowances but only fraction of means or snacks. Call Center agents are used to promote products and services both inbound
or outbound schemes to mainly US, Canadian, UK, Australian and EU Residents
who are getting annoyed by their calls. Some call center companies are engaged in
SCAMS AND RACKETEERING their own countries of origin and using the Filipino
call center agents as asset fronts. CALL CENTER
COMPANIES ARE EXTREMELY STRICT ON INTERNATIONAL STANDARD ENGLISH LANGUAGE usually
in American accents and diction. That is understandable but the salary grade is
not commensurate to call center agents’ travail taking into account the health
risks in the work place. There are
also so many bureaucrats at the Call Center Human Resources Departments who
continue to disappoint so many desperate FILIPINO JOB-SEEKERS. Finally, the Philippine Government will use the WORLD ECONOMIC
FORUM in 2008 meeting in Davos, Switzerland later this month of January in
marketing the Philippine business process outsourcing (BPO industry) call center
industry, thinking that the rising oil prices globally will force the
MULTINATIONAL COMPANIES to outsource of
their operations in the Philippines and in the third world nations to save on
cost. THE CRAZY FINANCIAL SYSTEM CREATES CRAZY HUMANITY!
Comments, correction,
suggestions and rejoinder are always welcome. Eric V. Encina Filipino Social Crediter/Monetary Reformer
Filipino Alternative Solutions
For Sustainable Survival Movement c/o Lito Alhambra Old House, Homesite,
Km2, Brgy. Lawa-an, PO Box 8, 5800 Roxas City, Capiz,
Philippines
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