You already know the reason why economists and politicians cannot tell you in simple words why we have Depressions, Bubbles, Booms and Busts. They are owned by the Bankers.
Compare the talking heads on TV to this: A Depression cancels debts. There are historically three ways to cancel Unpayable Debts. First. Massive bankruptcies and layoffs when factories and businesses shut down. In the Great Depression of 1929-1939 at least 3 million Americans died from starvation. This is according to the demographer Borisov.
Second. Debts can be cancelled through inflation as they were in part during the Weimar Republic. I have no reliable estimate for the number of Germans who died from starvation between 1919 and 1933. But I do know the Allies starved a million German men to death in camps after the war. These camps were worse than Dachau. Eisenhower ordered the US Army to shot anyone who attempted to feed the men he wanted to die from starvation. There were no buildings. They lived outdoors in the rain and cold and even snow. Some had been civilians. A few men were in their 70s and 80s. Others were boys too young to have been in the military. The Allies also starved 350,000 German civilians to death after the war.
I need to mention the 4 million men and women who had been POWs in German concentration camps. This was according to the Treaty of Yalta which required that all POWs be forcibly returned to the Soviet Union. US troops called this Operation Keelhaul. This treaty was agreed to after Joe Stalin had said he would treat them all as traitors. The penalty at that time for treason and for anti-Semitism was death. This is according to a Freedom of Information Act inquiry published as an op-ed in the Wall Street Journal in 1975.
The Third method of Debt Cancellation was discovered by the ancient Babylonians. They even developed a mathematical formula which told them when it was time to cancel debts. Have you read that in any history or economics text book approved by your Banker Occupied Government?
Let me explain how Unpayable Debts are accumulated and how they destroy the economy and kill job growth.
Under our Banker Occupied Government the banks are allowed to create our money out of nothing and to charge us interest. They do that in two ways. They print our dollars which are then exchanged for Treasury bonds. They create our currency from nothing and charge us interest to buy and sell using their Federal Reserve Notes. If this ability to create money out of nothing and to charge us interest were repealed, the federal government would not be more than 17 trillion dollars in debt. That does not include nearly 4 trillion dollars in state and local debt. Nor does it include trillions of dollars in government guaranteed debt at Fannie Mae, Sallie Mae and other such agencies. There is also an unknown quantity in liabilities through the Pension Benefit Guarantee Board. The FDIC which guarantees bank deposits makes the taxpayer liable for more than 220 trillion dollars in derivatives and Credit Default Swaps the Big Banks will owe when their bets against higher interest rates go bust.
Of course none of these debts includes the 222 trillion dollars in Unfunded Liabilities which are growing at a rate of 915 billion dollars a month.
By now you must realize that all of these public debts are at least partially responsible for the collapsing economy. Every debt is attached to an interest payment you or your neighbors are expected to pay.
The public government debt need not have been created if there were no fractional reserve banking and interest bearing currencies.
But private debts owed to banks also place a heavy drag on the economy. Banks create checking account money as part of the loan process. If a man goes in for a $10,000 loan, his banker is not loaning him Mrs Jones’ deposit. What the banker is doing is utilizing fractional reserve banking to increase the total money supply by $9,000. He takes $1,000 from Mrs Jones and adds the rest of the $10,000 from checking account money he creates when he makes the loan. In America bankers under fractional reserve banking can loan out ten times what they have on deposit. In Europe that can be 30 times. To sum up the banker pays Mrs Jones $150 a year in interest for her deposit. But suppose he collects 10% on $100,000 in loans. The banker has interest payments of $150 to Mrs Jones. This compares favorably with the $10,000 he extracts in interest received.
Of course we are gong to have trouble making our payments if the bankers take in more than they pay out. The simple but economically devastating solution to excessive and unpayable interest payments is that the banker renews loans in increasing amounts sufficient to cover interest. This compound growth will inevitably lead to a mountain of privately owed Unpayable Debts.
I need to explain something about that cycle of Booms and Busts. Under a free market, consumers tell businesses what they want through their demand or willingness to buy. However, under fractional reserve banking loans add to total demand. Suppose the banks loan out 6 trillion dollars in bad real estate investments. For a while the enormity of that 6 trillion dollar infusion into real estate will create a Boom in construction and land prices. But that will end when the people who took out those loans can’t make the payment. That is what we call a Bust or a recession. America has a Banker Occupied Government so the Federal Reserve under Quantitative Easing (Money Printing) buys up those fraudulent loans so bankers will not go to jail. But all that money printing just delays the Day of Reckoning.
A Depression differs from a recession in the numbers of people who will die from starvation. The Depression America has already entered will be far worse than the 1929-1939 debacle so I decided to call it the Great Starvation. MIT did a study last year which concluded that a collapse of the dollar and other currencies would kill at least half a billion people worldwide. I estimate ten or more million Americans will die from starvation if we do not go for that Babylonian Third Option of a scientific and systematic Debt Cancellation. I should note that MIT went on to say that after half a billion people die from starvation a few billion of our fellow humans will die from a series of plagues.
Given that we have a Banker Occupied Government which owns the press and both political parties, I see only one way to have Debt Cancellation.
Let me repeat my oft cited solution: If the US military was forced to stop another 911 False Flag or to stop an illegal launching of World War III, they could solidify their control by offering an exit from this Depression by canceling Unpayable Debts.
The US military could invade the Cayman Islands, the Channel Islands, Malta, Lichtenstein and other offshore banking centers. They would need to temporarily arrest the lawyers to get their list of personal and corporate clients and their associated bank accounts to seize those assets. This money should be used to cancel government debts worldwide in all nations willing to ban fractional reserve banking and create a new non-interest bearing currency.
The US has additional sources of assets to be seized. We should go through the land registered in every county to seize banking criminal assets. That should give us a few trillion dollars. We have tens of thousands of state and local taxing agencies which have slush funds totaling tens of trillions of dollars. The New York Port Authority has more than a trillion dollars listed in its Comprehensive Annual Financial Report. That money needs to be used to pay off government debts and to fund pensions. Take a look at http://www.CAFR1.com for further information.
I would cancel $20,000 in personal credit card and mortgage debt for every American adult citizen or $40,000 per married couple. I would create co-operative trusts to replace third party pensions. These trusts would sell us simple insurance, make small loans and issue credit cards. The profits from these operation should be paid into pensions. The co-operative trusts would dwarf the economic clout of the formerly wealthy. Most of the latter’s assets will have been seized as most of these were the proceeds of either war or banking crimes.
I would also issue patents for all that secret government technology and give it to new corporations. The stock in these growth companies would be distributed to adult citizens to be held in their co-operative trust accounts.
I would ask you to look at some of the articles below to see more of the details of how Debt Cancellation will actually work.
This first essay explains Debt Cancellation in simple terms.
Eddie Reborn Into A World With Debt Cancellation
This covers reform in more detail:
What Real Debt Cancellation Combined With Pension And Health Care Reform Looks Like Part I
This article proves Austerity budgets will not work.
The Mathematics Of Austerity: Proving Austerity Never Was Even Intended To Work
This last article outlines how IMF economists have finally admitted that what they were doing was wrong. They admit we need a non-interest bearing currency.
IMF Economists: ‘We Were Wrong.’ Will Someone Please Tell The Press And The Politicians.