Prophecy Dec.10 : The Great Depression

The story of the collapsing American economy explains a lot of what we see happening today...

Currently the Dow Jones is sitting at 10546. Therefore, if you want to go and check the Dow to see how healthy the American economy is, things look great. Well, things look great until you remember that the dollar is going right down the tank, which reveals that the Dow is just an illusion, and doesn't tell the real story. Just in the last two years the American dollar has lost 35 percent against the Euro, which means that with the Euro now the world's leading currency, the Dow is actually sitting at about 6855. Not so good.

When you also consider the fact that America is now the world's most indebted nation and the Euro area is a net creditor, the problems become even more apparent. This explains why Opec insists on raising the price of O-I-L back up to around fifty bucks, for, you see, they are still pricing O-I-L in those el cheapo American bucks, and for that reason they don't want to lose a hell of lot money. If they can push O-I-L back up to fifty bucks, that means that they will be getting about 32 dollars a barrel for their O-I-L. This also explains why they are considering switching to the Euro, and dumping the American dollar altogether.

You might recall how in the latter part of the 90s, during the end of the Clinton Administration, those corporations were losing so much money that they started cooking the books. The Bush administration held one of those Stalinist show trials, and prosecuted a few scape goats on the charge of 'wrecking the economy', just like Stalin did back during the days when the people were angry about the poor performance of the Soviet economy. The Bush adminstration also took severe action, in the form of lowering interest rates to just about zero, then letting the dollar go down the tank, in the hopes of robbing Peter to pay America, by boosting exports and thus robbing the export markets of other countries, and these other countries have been fighting back in this form of trade war with America by purchasing over a trillion dollars of foreign reserves in just the last year and a half, in order to keep some balance between their increasingly expensive currencies and America's plunging dollar. The Bush administration has also been practicing dumping policies, resulting in punitive trade wars, and you can see here how America is going to war with the world on a number of fronts at the same time, with the Iraq O-I-L thieving war just being the more militaristic front in this World War Three being fought by that failing, staggering, collapsing giant known as the United States of America.

This also explains why the Bush adminsitration is in such a hurry to bankrupt the nation, by giving tax breaks to the Elite Have Mores, the real political base of King George, while at the same time not cutting the budget to keep things balanced, because, you see, that would ruin everything. The strategy, known as 'starving the beast' was first invented during the Reagan administration, the idea being to slash all social programs using the excuse that the debt is to large to afford them, which explains why such radical right wing hawks cut taxes but don't cut the budget to keep things balanced, because that would ruin the plan for the American people. As for why the Elite Have Mores would be in such a big hurry to bankrupt the budget, well you need to understand that these people have great understanding and hence they knew back in the 1990s that America was heading for a new Great Depression and an economic collapse, and they don't want to be put on the spot of being forced to negotiate some New Deal, and so they have decided to give themselves a small tax break, just enough to bankrupt the rest of the country, with the brainless idea being that then they will keep every dime of their enormous fabulous wealth. And keep in mind that those trillions just represent a small tax break for the Elite Have Mores, much like one would go into the barber and ask not for a cut but just ask the barber to trim a little off the sides. You see those Elite Have Mores have become just fabulously wealthy, especially after the last twenty or thirty years of using third world debt as a tool to facilitate brutal neo-liberalism, a form of sacking and looting much as in Iraq, only with the need for a literal invasion.

Bush has just presided over the greatest loss of jobs since the time of the Hoover Administration, you know, around the time of the beginning of the last Great Depression, and with the Dow sitting at around 6855, the slide continues. A Great Depression takes years to reach absolute bottom, with the Bush administration trying to fight the slide using such tools as dollar wars and trade wars and literal blood bath wars of sacking and plunder in a futile attempt to stop the coming catastrophic decline, for all these things are just short term solutions that do not address the real problem, and in the end, such policies as a low dollar only undermine potential export markets, making the trough even deeper than before.

The reason why the Bush administration is so damned worthless and can only fight the ongoing Great Depression in the wrong way, which will only make things worse, is that the cause of the Great Depression, indeed, the cause of all the many Great Depressions America has experienced throughout the 1800s and up till 1929, the root cause of such things are the Elite Have Mores, the political base of King George.

Depressions are caused by Capitalists, who are morally twisted, warp minded individuals, as you can tell by watching them pile up great big stacks of wealth, and then like some super weirdo, they then proceed to go and sit on top of that big stack, you know, to make sure no one touches their giant sized stack. Around them the world suffers and groans in dire poverty, while those morally degenerate capitalists continue to rob them blind, and continue to slaughter them with death squads to keep the huddled masses from storming the vaults. These same wicked techniques they also bring home to America, in the form of their assault being launched against the American people as they shave a little off their tax bill to bankrupt the nation. They outsource, and then use the threat of low off shore wages to attack the living standards of American workers and bust up unions. They use the terrorism which is stirred up by their own boot stomping wickedness and oppression as a tool to begin the process of destroying the constitution of the United States and bring in Nazism and a police state.

There is not one dream of the human race that will ever come true as long as those Elite Have Mores exist and sit enthroned around the world. Each and every day such twisted and morally warped individuals are allowed to rule is a bleak grey day, without sunlight. There will always be something to protest, such protests being futile and worthless things, since the Elite Have Mores are morally twisted individuals, as you can tell by how they bleed the planet white, sucking the marrow out its bones, leaving misery and torment in their wake, while they go dancing, dancing on graves.

The nation which harbors such fugitives from justice richly deserves everything that it gets, and the only question I have is just how much torment and suffering will have to be heaped onto the heads of the American people before they understand that the wages of sin is death and destruction, torment and grief. Fortunately with the Bush Administration in office and firmly dedicated to policies that avoid the problem and thus are doomed to failure, it is a sure and certain thing that the American people will be gaining personal first hand knowledge of the taste of the bitter fruit of wickedness and sin.


Albert Einstein - Why socialism : a few quotes from Einstein's essay - "I shall call "workers" all those who do not share in the ownership of the means of production ... the worker produces new goods which become the property of the capitalist ... Private capital tends to become concentrated in few hands ... The result of these developments is an oligarchy of private capital the enormous power of which cannot be effectively checked even by a democratically organized political society. This is true since the members of legislative bodies are selected by political parties, largely financed or otherwise influenced by private capitalists ... an "army of unemployed" almost always exists. The worker is constantly in fear of losing his job ... unemployed and poorly paid workers do not provide a profitable market ... The profit motive, in conjunction with competition among capitalists, is responsible for an instability in the accumulation and utilization of capital which leads to increasingly severe depressions ... This crippling of individuals I consider the worst evil of capitalism. Our whole educational system suffers from this evil. An exaggerated competitive attitude is inculcated into the student, who is trained to worship acquisitive success as a preparation for his future career ... "

The Cause of the Great Depression The depression began in late 1929 and lasted for about a decade. Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920's, and the extensive stock market speculation that took place during the latter part that same decade. The maldistribution of wealth in the 1920's existed on many levels. Money was distributed disparately between the rich and the middle-class, between industry and agriculture within the United States, and between the U.S. and Europe. This imbalance of wealth created an unstable economy. The excessive speculation in the late 1920's kept the stock market artificially high, but eventually lead to large market crashes. These market crashes, combined with the maldistribution of wealth, caused the American economy to capsize ... the rewards of the "Coolidge Prosperity" of the 1920's were not shared evenly among all Americans. According to a study done by the Brookings Institute, in 1929 the top 0.1% of Americans had a combined income equal to the bottom 42%. That same top 0.1% of Americans in 1929 controlled 34% of all savings, while 80% of Americans had no savings at all...In the 1923 case Adkins v. Children's Hospital, the Supreme Court ruled minimum-wage legislation unconstitutional ...

Essentially what happened in the 1920's was that there was an oversupply of goods. It was not that the surplus products of industrialized society were not wanted, but rather that those whose needs were not satiated could not afford more, whereas the wealthy were satiated by spending only a small portion of their income. A 1932 article in Current History articulates the problems of this maldistribution of wealth ... One obvious solution to the problem of the vast majority of the population not having enough money to satisfy all their needs was to let those who wanted goods buy products on credit. The concept of buying now and paying later caught on quickly. By the end of the 1920's 60% of cars and 80% of radios were bought on installment credit. Between 1925 and 1929 the total amount of outstanding installment credit more than doubled from $1.38 billion to around $3 billion. Installment credit allowed one to "telescope the future into the present", as the President's Committee on Social Trends noted. This strategy created artificial demand for products which people could not ordinarily afford. It put off the day of reckoning, but it made the downfall worse when it came.

Mass speculation went on throughout the late 1920's. In 1929 alone, a record volume of 1,124,800,410 shares were traded on the New York Stock Exchange. From early 1928 to September 1929 the Dow Jones Industrial Average rose from 191 to 381. This sort of profit was irresistible to investors. Company earnings became of little interest; as long as stock prices continued to rise huge profits could be made.

Prices had been drifting downward since September 3, but generally people were optimistic. Speculators continued to flock to the market ... Once enough investors had decided the boom was over, it was over. Partial recovery was achieved on Friday and Saturday when a group of leading bankers stepped in to try to stop the crash. But then on Monday the 28th prices started dropping again. By the end of the day the market had fallen 13%. The next day, Black Tuesday an unprecedented 16.4 million shares changed hands. Stocks fell so much, that at many times during the day no buyers were available at any price.

More jobs were lost, more stores were closed, more banks went under, and more factories closed. Unemployment grew to five million in 1930, and up to thirteen million in 1932. The country spiraled quickly into catastrophe. The Great Depression had begun.