Professor Steve Keen told us that as total private and public debt increases the unemployment rate goes up and wages go down. I believe that because I have seen that happening in America since 1970. But what I refuse to believe is that adding to total government debt is a good idea and will solve my problems.
Most modern economists will tell you that to solve the problem of declining wages lowering aggreagte demand we must add to consumption by increasing government spending and debt. But adding to government debt is the reason why wages are lower today than in 1970. How can I possibly believe that digging a deeper hole is the way out of a bottomless pit?
I recently wrote of the solution to this when I commented on the IMF economists who admitted they were wrong. The source of our problems is fractional reserve banking. This allows banks to collect interest on money they created from nothing. The bill to the taxpayer for interest on federal government debt is over 500 billion dollars a year which is rolled over into even greater public debts. But bankers also collect interest on money they created out of nothing on loans to businesses, farmers and consumers. These loans also roll over and accumulate exponentially. This causes our Depressions. The obvious solution is to eliminate fractional reserve banking, issue a non-interest bearing currency, make government debt illegal and cancel debts. See the Notes below for how that would work.
America has to balance its fiscal budget and its trade deficit really soon. The Japanese people were famous for saving for their old age. Bur today 23% of the population of Japan is over 65. It will rise to more than one in three. 11% are 75 or more. As they take money out of their sizable savings, the nation of Japan has to sell US Treasury bonds. This is very bad news for American politicians and voters who want to vote for men who are too stupid and corrupt to actually solve problems. America is currently waging an economic war against Iran because Israel told them to but that makes little sense. By forcing people who trade with Iran out of dollar denominated trade, we are dooming the US currency and economy to an early grave.
America has had a trade deficit that devalued the purchasing power of the dollar from $1.20 to 72 cents until recently when the collapse of the euro pushed it up to 82 cents. The majority of economists believe that the solution to the trade deficit is to lower American wages still further. Michael Hudson says Obama wants to lower wages 30%. I disagree.
If we lower wages or more likely devalued the dollar, we would raise the prices of imported oil and food until the working poor were forced to walk to work and back home to an empty dinner table. That will not fly.
America has lost 56,000 manufacturing plants and 12 million jobs since the passage of the North American Free Trade Act of 1994 and President Clinton allowed China to devalue the dollar. The other problem is that when President Kennedy was elected there were 180 million people in America. We have added 140 million people through immigration and unrestricted welfare payments.
For some reason the Banker Occupied Government in Washington decided that it was a brilliant idea to pay 14 year-old girls money to have illegitimate children. They must not like black people because the bankers shipped in cocaine and heroin by the CIA planeload while they were raising the black illegitimacy rate to 70%. It also rose for whites and Hispanics. At the this same time, it was decided that handing out a million Green Cards a year to legal immigrants when Shadow Stats is reporting a 22% unemployment rate and we have 4 million 18 year-olds graduating from high school every yrar. These numbers do not add up to good news for working people of any race.
The Banker Occupied Government does not have the moral authority to make us cut our wages 30% in the first year and more after that until nobody in his right mind would want to immigrate to America. By what right do Bankers destroy our only nation?
Let us reason this all the way through.
If I am a college student, I am told to take out loans on faith that a job will appear upon graduation that will allow me to pay back all of the loans I took out to pay for the exorbitant tuition. I am told to believe that my President and the House and Senate love me. But I find that hard to believe when my government hands out more than one million green cards a year to immigrants who can take away the jobs before I can even graduate and apply for work. Only 51% of last years college grads found jobs but at $12.27 an hour. Devaluing the dollar 30% would cut the average wage for those college graduates to $8.51 an hour which is one penny per hour more than the California minimum wage and $1.26 above the federal minimum. But then there is that trillion dollars in student debt. A dollar twenty-six an hour won’t do much against the interest on a trillion dollars. Now you know why the federal government has been buying shotguns so bill collectors can squeeze more money out of those students.
I have a better idea. Debt cancellation. And free tuition at state schools to be paid for by ending wars for Israel.
To create jobs we will have to take all the hidden technology the Secret Government is sitting on. Presumably after the coming economic collapse has killed off 6 billion people they will release it. I have spoken before of Tesla technology reducing our utility bills by 2/3rds. Today I would like to talk of Magic Johnson who announced to the world that he tested positive for AIDS in 1991. Yet to date he has never taken AZT and DDI and is symptom free. It is likely that there is a Universal Vaccine that makes us healthier and is reserved for billionaires and for favored traitors to the human race. It should be noted that Mr Johnson is a Coca Cola bottler and in Third World nations those bottlers are often CIA agents. I would issue stock in corporations giving one share in each growth stock for younger people.
I would buy up all the underwater homes from the banks and give the mortgages to whatever replaces Social Security retirement funds along with the seized assets of criminal enterprises. That money plus the tariffs would fund retirement. We could eliminate the Social Security tax on employees for young workers but not for employers and for the older workers who will collect Social Security retirement benefits.
Microsoft which pales by comparison to what these new companies could do split their stock 7 times from 1985 to 2000. That is a 128 fold increase which would make all young people wealthy provided they had one share in each of six companies and the government put up tariffs to protect the companies we owned from 50 cent an hour labor. One economist said this international competition for lower wages a race to the bottom of the septic tank.
Because all of the economies in the West are run by men incapable of reason we are all doomed to an economic collapse in the next few months. We do not have a calendar year left to waste away while ignorant men prattle on about creating jobs someday and somehow.
We need Debt Cancellation. We need a non-interest bearing currency. We need to make government debt illegal. We need to end fractional reserve banking.
Silver Update. I would buy more silver if you have the money. But do not buy silver on a credit card. Store food. Arm yourselves with ideas. Pay off bills. Keep as little money as possible in the banks. If there is a Bank Holiday, cash in hand is far better than a credit in a bank’s computer. A local network of friends will mean the difference between life and death.
Notes: This essay explains how IMF economists say we can save ourselves from economic collapse.
IMF Economists: ‘We Were Wrong.’ Will Someone Please Tell The Press And The Politicians.
I would like to suggest the following as the most feasible means of seizing the tens of trillions of dollars stolen from us by the bankers:
Memo To Pentagon: Compare The Invasion Of Lichtenstein And The Cayman Islands To War With Iran And Syria
This next article tells you something of the evil nature of bankers:
Catherine Austin Fitts: The Black Budget And The Leveraged Buyout Of The World Using Stolen Money
For the less technically minded this next article explained what Debt Cancellation would look like though some object to the race of the persons involved.
Eddie Reborn Into A World With Debt Cancellation.
The next article explains how Debt Cancellation, pension reform and healthcare reform could work:
What Real Debt Cancellation Combined With Pension And Health Care Reform Looks Like Part II