I think this current Depression should be called the Greatest Starvation and not the Second Great Depression.
The Panic of 1873 was also called The Great Contraction in America and the Longest Depression in England because the people had to to wait 23 years until 1896 for recovery. The Great Depression forced us to go back and rename the Great Contraction. True it did last longer than the Great Depression of 1929-1939, but it was much less severe. The Russian demographer Borisov has proven that at least 3 million Americans and possibly as many as 7 million died from starvation in those ten years.
A Little Then And Now History: The New York stock market reached a high on September 3, 1929 and went into a decline culminating in Black Thursday on October 24th and Black Tuesday on October 29th. But there were several key events after 1929 before the full severity of the Great Depression savaged the world. There was the collapse the Rothschild owned Credit Anstalt bank in Austria on May 11, 1931 and the Bank of England devaluing the pound on September 21, 1931. That put an end to international trade and liquidity. And that was when the Great Starvation phase of the Great Depression really began.
Today the real US unemployment rate is 23%. There are 20 million more poor people than the government says because the Feds use medical care costs from 1952. The real inflation rate is 11% in America and 12% in England. That means the GNP (Gross National Product which measures the total amount of goods and services sold) is contracting. That contraction is the definition of a Depression.
In America today more than 100,000 janitors have college degrees. 365,000 college grads are working as cashiers and 317,000 are working as waiters and waitresses. George Hemminger reports that in California where the real unemployment rate is over 30% that employers are looking for highly skilled people and offering the minimum wage. Of course you will die slowly of starvation on the minimum wage as soon as the combination of inflation and Austerity ravages the world.
We have not yet quite walked off the edge of the cliff. We could reinstate the Glass Steagall Act which was repealed in 1999 and had forbidden banks from making risky investments with depositors money. We could outlaw Credit Default Swaps (a fraudulent hybrid of insurance and speculation) which expose the taxpayers of the world needlessly to 1.5 quadrillion dollars in potential losses. We could arrest the bankers and demand restitution of the tens of trillions of dollars they stole. And we could seize the Federal Reserve and issue debt free US Treasury Banknotes to replace Federal Reserve Notes as President Kennedy had done. But as previously noted, JFK was killed by the bankers on the anniversary of the first meeting the bankers held to create the Federal Reserve as a warning to us that the peasants have no right to say No to the wholesale theft of everything they worked for.
Ben Bernanke created 16.1 trillion dollars to fund Bailouts that he was forced to report under the terms of the Dodd-Franks bill. But he refuses to tell us what he has done since. I believe he has created 2 trillion dollars since the Rothschild BNP Paribas bank of France went technically bankrupt a few weeks ago. He is probably creating another 2 to 4 trillion dollars to bail out Europe. And Ben has also pledged to underwrite the expected 600 billion dollars in losses the New York banks face from CDS and bad loans to Europe.
Does all that money printing make you think inflation is in your future? You aren’t the only one. I respect two economists despite my disagreements with both. Bob Chapman says the inflation rate in the US will be 25% by the end of 2012 and 50% by the end of 2013. Dr Michael Hudson says Obama’s only plan to lower the unemployment rate is to cut your wages 30%.
All that inflation and wage cuts might evaporate your food budget. That is one reason for saying the Greatest Starvation Begins Now.
There are other reasons why I believe at least 9 million Americans and more than a billion people outside the US will die of starvation if we do nothing.
The passage of NAFTA (North American Free Trade Act) of 1994 sent 50,000 manufacturing plants overseas. That is between 16 and 17 plants for each of America’s 3,000 plus counties. The jobs were deliberately sent overseas while increasing the population of America from 122 million in 1930 to 180 million in 1980 and 281 million in 2000 and to a little over 310 million today.
Modern America not only imports its oil and manufactured items but it also is a net importer of food. What do you think will happen when the the dollar crashes, unemployment soars past 30%, more than 2 million government workers are fired and the cost of food and energy doubles overnight?
America moved from being an agrarian society living near farms and food in 1933 to urban dwellers nowhere near cows, chickens and gardens. But Americans will be living closer to 170 million or more people who will not have enough money to pay their bills and eat.
Society will disintegrate within weeks of the dollar dying. Food riots will be the least of out problems.
There are solutions to these problems which I will discuss in Part II of this essay in a couple of days.
I assume you would like to stop the looming Greatest Starvation before we get hit with its full force.
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