The Cause of the Recession

[mcdougal]

02/02/2009
(NaturalNews) Every day there is news of jobs lost and businesses closing. These lost jobs and closed businesses are not being replaced by new jobs and businesses. Unemployment is increasing. Only two years ago our situation was not like this. What has changed? Why are we heading steadily into a depression? What is the cause?

An economy is not based on money or finance, though most people believe it is. The ultimate basis of an economy is entirely physical. An economy is ultimately based on the production of physical wealth. Without first having adequate food and energy production, none of our other economic activities would even be possible.

What is the physical change causing the economy to crash? Has there been a destructive flood or drought? Have we run out of iron in the earth? Are all the trees gone? Did a massive earthquake destroy all our factories? None of the above is the cause. Nothing physical has changed to cause our economy to decline. We have all the factories we need to produce. We have the energy, materials, and the know-how to make what we want. We have plenty of people willing to work. Despite this, the economy is crumbling and unemployment is ever increasing.

The economy is going bad due to faulty financial systems and human conventions. It should be axiomatic that what is physically possible would also be financially possible. Money is not a physically limiting factor to production. Money is simply a means by which we exchange physical goods and services. It allows us to advance beyond barter. It is not a raw material used in the physical production of anything. We do not use money in the production of cars or apples. The production of both is entirely physical. Money is not built into a car seat or used to fertilize an apple tree. The economy continues to decline solely because the money and economic system are not properly understood and structured. If we had the proper systems and a correct understanding of the relationship between money and physical wealth, the economy would immediately begin to improve. Physically we are capable of improving the economy right now.

Economists claim to understand the economy. If they do, why is there a recession? People in government claim to know what they are doing. If they do, why is there a recession? Perhaps if economists and politicians knew what they were doing, we would not be in this position. Logically, the economy should improve over time as technology advances, yet it is getting worse with time.

Economists like to pretend that the economy is like the weather, sometimes good and sometimes bad. There are bad spots we just have to endure. Why? There is no physical reason. Our ability to work and produce has not changed at all. The dishonest money system causes economic instability resulting in cycles of boom and bust. The simple solution to the problems caused by the dishonest money system is an honest money system.

Since money is necessary to exchange goods and services, the flow of money is critical to the economy. When the money stops flowing, the economy stops moving. Banks control the flow of money. Banks benefit from the flow of money through the interest they charge for the money they create and lend. When banks stop lending, money stops flowing, and the economy grinds to a halt. This is exactly what has happened. This is what is meant by the term "credit crunch."

Lord Acton is best known for saying, "Power tends to corrupt, and absolute power corrupts absolutely." Banks have absolute power over the money system. Banks create and destroy money as they please. Our entire money system, which should exist for the benefit of the community, exists instead for banks to make loans and charge us interest. So long as the purpose of the money system is to allow banks to maximize their profits through the creation of debt and money, our economic decline will continue. Booms and busts are integral to a money system and an economy set up for the benefit of banks. The interests of the people and the interests of banks are in direct opposition to one another. Our way to prosperity is the elimination of the money and debt cycle banks inflict upon us.

Lord Acton also said, "The issue which has swept down the centuries, and must be fought sooner or later, is the people versus the banks." We are living in interesting times, and this issue will finally have to be fought and resolved in our lifetime. Banks clearly recognize their interests and fight to protect them. The banks have been so successful at this that the government, through the Treasury Secretary, acts in their interest. We, like the banks, must also recognize our interests and fight to protect them. We can remain debt slaves to the banks, and continue to struggle just to survive or we can demand the government provide an honest money system, and thereby become economically free.


Buzz up!5 votes

About the author
Arian Forrest Nevin, J.D. is the author of National Economy: The Way to Abundance. National Economy presents an immediate solution the worldwide economic crisis. National Economy is the study of how a nation, rather than an individual, can be made wealthy. It explains how all manufacturing that has moved to other countries and all jobs that have been outsourced can be returned to America, how real wages can be dramatically increased, and how, at the same time, the people can have more leisure.
His website is http://www.nationaleconomy.net

[lupus]

http://www.spiegel.de/international/world/0,1518,604523,00.html

Good article here :can countries really go bankrupt?

[655321]

Countries are just like you and me with a credit card. You can keep paying the minimum payment every month, but there will come a day that the debt is so big you can't even make the minimum payment.

[belial]

At the end of the day, money is just metal and paper.

It's worthless.

We've been conditioned into thinking that 'money' has value.

Influence, power, aggression, knowing the right people, have far more value than 'money'...

...these attributes will never devalue...


Money, however, will always devalue... hence, the 'recession' 'downturn' 'financial collapse' etc etc.

[newspresenter]

02/02/2009
(NaturalNews) Every day there is news of jobs lost and businesses closing. These lost jobs and closed businesses are not being replaced by new jobs and businesses. Unemployment is increasing. Only two years ago our situation was not like this. What has changed? Why are we heading steadily into a depression? What is the cause?


Im no economist, but i think this recession is due to the worlds financial rulers taking enough of their finance out of society in the right places which causes job loses which inevitably snowball's (pardon the pun :D). The money doesn't fly into space.

A similar scenario on a small scale is when a small town looses 50 jobs say at the main work place, then the local pub/shops loose trade, people leave the area etc etc and the town turns into a ghost town.

In the early 80's, The Specials made a song called Ghost Town.

[belial]

Im no economist, but i think this recession is due to the worlds financial rulers taking enough of their finance out of society in the right places which causes job loses which inevitably snowball's (pardon the pun :D). The money doesn't fly into space.

A similar scenario on a small scale is when a small town looses 50 jobs say at the main work place, then the local pub/shops loose trade, people leave the area etc etc and the town turns into a ghost town.

In the early 80's, The Specials made a song called Ghost Town.


And what a song that was:

http://uk.youtube.com/watch?v=RZ2oXzrnti4

[pinkgrapefruit]

Economists claim to understand the economy.
:D

[newspresenter]

And what a song that was:

http://uk.youtube.com/watch?v=RZ2oXzrnti4

I like the rawness of it. It tells a true story, not like pop idol i will love you till the end of time nonsense.

[bobhodge]

At the end of the day, money is just metal and paper.

It's worthless.

We've been conditioned into thinking that 'money' has value.

Influence, power, aggression, knowing the right people, have far more value than 'money'...

...these attributes will never devalue...


Money, however, will always devalue... hence, the 'recession' 'downturn' 'financial collapse' etc etc.

money is not worthless! i can take some money right now and go some food, ect....almost anything i like as long as i have enough.....what r u blabbering about?

[skunksmash]

money is not worthless! i can take some money right now and go some food, ect....almost anything i like as long as i have enough.....what r u blabbering about?

he's saying the note itself holds ''no value'', yes you can buy food with it but all it is really is ''IOU's'' everything is credit..... the money you have in your pocket only represents a small portion of the country's gold reserves..

we all live off this pile of gold & big & small parts of it change owners all the time, but it never moves & no one ever see's it.....

as the gold diminishes, notes need to be removed from the system otherwise you end up where we are now....just handing over notes which now represent NONE of that gold...... its now TOTALLY worthless...

i could be wrong, but thats how i think it works.....:D



:)SK

[cheesedanish]

I heard this on the radio today .... this is very scary!!
If you click on the link there is a podcast if you care to listen to more ...

I think it's pretty shocking .. what are people going to do??


China (http://www.702.co.za/onair/heardonair.asp)20 million migrant workers jobs lost
Job losses resulting from the global financial crisis continue to mount – but nowhere more so than China where government says more than 20 million migrant workers have lost their jobs and have left the cities, returning to the rural areas.

[lupus]

[QUOTE=newspresenter;775590]Im no economist, but i think this recession is due to the worlds financial rulers taking enough of their finance out of society in the right places which causes job loses which inevitably snowball's (pardon the pun :D). The money doesn't fly into space.

No its that the money didn't really exist in the first place, like betting with money you don't have and then losing the bet - you can't pay up. DI has gone in to this a little -how banks make up money based on deposits but the deposit never covers all the loans the make : as a result of deregulation this ratio of "real" money to "made up" money has reached 30:1. When the bankers lost their bets the "made up" money did vanish

[daveashe]

Paper notes are currency, not money - there is a difference, currency devalues with time and is designed to do so - there is a point where the currency begins to devalue enough to affect peoples lives in a real way, its like pulling the rug from underneath someone, you still have that £20 in your pocket from 20 years ago, but your purchasing power has diminished.

This is why money was (firstly) backed by silver in america, then gold (as it is worth more per oz, easier to transport vast sums of money)

President nixon removed the gold standard from money when he was president, which caused the dollar to not be relative to anything, which is why the dollar is now a currency. This allows inflation to occur relative to everything else, causing a devaluation of the currency. Intrest rates are the rate at which a currency is devalued.

Currency can only expand at a rate relative to the amount of stuff we have out there that is worth anything. When it gets past the amount of stuff we have out there, thats when devaluation occurs (caused by too much credit)

Its called currency because its only based on the curren(t) value of the cash you have.

As the banks lend more currency to people and businesses and charge for this, the more currency that is in circulation, the less that currency is worth, which is why when you see a bail-out that currency goes down in value relative to other currencies.

Currency is a virtual commodity, it doesn't exist in real terms, as it is not backed by anything real.

Gold and silver are currently being manipulated by the major banks by flooding the market with these metals, causing the price to stay low, but this cannot happen forever as their stocks are running dry.

Gold and Silver naturally keep their value as they are base metals and cannot be manufactured and are two of the greatest superconductors used in electronics.

Historically, whenever (hyper)inflation occurs, gold and silver keep their value ie if £1=1oz of silver 10 years ago, today you can buy the same for £10 what £1 was back then, you can trade your 1oz of silver in today for £10.

[tehuti]

02/02/2009
(NaturalNews) Every day there is news of jobs lost and businesses closing. These lost jobs and closed businesses are not being replaced by new jobs and businesses. Unemployment is increasing. Only two years ago our situation was not like this. What has changed? Why are we heading steadily into a depression? What is the cause?

An economy is not based on money or finance, though most people believe it is. The ultimate basis of an economy is entirely physical. An economy is ultimately based on the production of physical wealth. Without first having adequate food and energy production, none of our other economic activities would even be possible.

What is the physical change causing the economy to crash? Has there been a destructive flood or drought? Have we run out of iron in the earth? Are all the trees gone? Did a massive earthquake destroy all our factories? None of the above is the cause. Nothing physical has changed to cause our economy to decline. We have all the factories we need to produce. We have the energy, materials, and the know-how to make what we want. We have plenty of people willing to work. Despite this, the economy is crumbling and unemployment is ever increasing.

The economy is going bad due to faulty financial systems and human conventions. It should be axiomatic that what is physically possible would also be financially possible. Money is not a physically limiting factor to production. Money is simply a means by which we exchange physical goods and services. It allows us to advance beyond barter. It is not a raw material used in the physical production of anything. We do not use money in the production of cars or apples. The production of both is entirely physical. Money is not built into a car seat or used to fertilize an apple tree. The economy continues to decline solely because the money and economic system are not properly understood and structured. If we had the proper systems and a correct understanding of the relationship between money and physical wealth, the economy would immediately begin to improve. Physically we are capable of improving the economy right now.

Economists claim to understand the economy. If they do, why is there a recession? People in government claim to know what they are doing. If they do, why is there a recession? Perhaps if economists and politicians knew what they were doing, we would not be in this position. Logically, the economy should improve over time as technology advances, yet it is getting worse with time.

Economists like to pretend that the economy is like the weather, sometimes good and sometimes bad. There are bad spots we just have to endure. Why? There is no physical reason. Our ability to work and produce has not changed at all. The dishonest money system causes economic instability resulting in cycles of boom and bust. The simple solution to the problems caused by the dishonest money system is an honest money system.

Since money is necessary to exchange goods and services, the flow of money is critical to the economy. When the money stops flowing, the economy stops moving. Banks control the flow of money. Banks benefit from the flow of money through the interest they charge for the money they create and lend. When banks stop lending, money stops flowing, and the economy grinds to a halt. This is exactly what has happened. This is what is meant by the term "credit crunch."

Lord Acton is best known for saying, "Power tends to corrupt, and absolute power corrupts absolutely." Banks have absolute power over the money system. Banks create and destroy money as they please. Our entire money system, which should exist for the benefit of the community, exists instead for banks to make loans and charge us interest. So long as the purpose of the money system is to allow banks to maximize their profits through the creation of debt and money, our economic decline will continue. Booms and busts are integral to a money system and an economy set up for the benefit of banks. The interests of the people and the interests of banks are in direct opposition to one another. Our way to prosperity is the elimination of the money and debt cycle banks inflict upon us.

Lord Acton also said, "The issue which has swept down the centuries, and must be fought sooner or later, is the people versus the banks." We are living in interesting times, and this issue will finally have to be fought and resolved in our lifetime. Banks clearly recognize their interests and fight to protect them. The banks have been so successful at this that the government, through the Treasury Secretary, acts in their interest. We, like the banks, must also recognize our interests and fight to protect them. We can remain debt slaves to the banks, and continue to struggle just to survive or we can demand the government provide an honest money system, and thereby become economically free.


Buzz up!5 votes

About the author
Arian Forrest Nevin, J.D. is the author of National Economy: The Way to Abundance. National Economy presents an immediate solution the worldwide economic crisis. National Economy is the study of how a nation, rather than an individual, can be made wealthy. It explains how all manufacturing that has moved to other countries and all jobs that have been outsourced can be returned to America, how real wages can be dramatically increased, and how, at the same time, the people can have more leisure.
His website is http://www.nationaleconomy.net

top post, provides an easily digesible idea.
well done

[bobhodge]

Paper notes are currency, not money - there is a difference, currency devalues with time and is designed to do so - there is a point where the currency begins to devalue enough to affect peoples lives in a real way, its like pulling the rug from underneath someone, you still have that £20 in your pocket from 20 years ago, but your purchasing power has diminished.

This is why money was (firstly) backed by silver in america, then gold (as it is worth more per oz, easier to transport vast sums of money)

President nixon removed the gold standard from money when he was president, which caused the dollar to not be relative to anything, which is why the dollar is now a currency. This allows inflation to occur relative to everything else, causing a devaluation of the currency. Intrest rates are the rate at which a currency is devalued.

Currency can only expand at a rate relative to the amount of stuff we have out there that is worth anything. When it gets past the amount of stuff we have out there, thats when devaluation occurs (caused by too much credit)

Its called currency because its only based on the curren(t) value of the cash you have.

As the banks lend more currency to people and businesses and charge for this, the more currency that is in circulation, the less that currency is worth, which is why when you see a bail-out that currency goes down in value relative to other currencies.

Currency is a virtual commodity, it doesn't exist in real terms, as it is not backed by anything real.

Gold and silver are currently being manipulated by the major banks by flooding the market with these metals, causing the price to stay low, but this cannot happen forever as their stocks are running dry.

Gold and Silver naturally keep their value as they are base metals and cannot be manufactured and are two of the greatest superconductors used in electronics.

Historically, whenever (hyper)inflation occurs, gold and silver keep their value ie if £1=1oz of silver 10 years ago, today you can buy the same for £10 what £1 was back then, you can trade your 1oz of silver in today for £10.

paper notes ARE money. any second year economics student can tell you that. or a dictionary

http://www.merriam-webster.com/dictionary/money

[grachtengordel]

you still have that £20 in your pocket from 20 years ago, but your purchasing power has diminished.

This is why money was (firstly) backed by silver in america, then gold

President nixon removed the gold standard from money when he was president, which caused the dollar to not be relative to anything, which is why the dollar is now a currency.

Currency can only expand at a rate relative to the amount of stuff we have out there that is worth anything.

As the banks lend more currency to people and businesses and charge for this, the more currency that is in circulation, the less that currency is worth

Gold and Silver naturally keep their value as they are base metals and cannot be manufactured and are two of the greatest superconductors used in electronics.

Historically, whenever (hyper)inflation occurs, gold and silver keep their value ie if £1=1oz of silver 10 years ago, today you can buy the same for £10 what £1 was back then, you can trade your 1oz of silver in today for £10


Great post sir, important points , this is HOW they rape us

Its called currency because its only based on the curren(t) value of the cash you have.

This i would disagree with. I believe the word 'currency' refers to the measurement of the flow of ENERGY.

The flow of a river is called the current. In rivers a current is a FORCE (energy) of water , it is greater than the 'resistance' thus the water 'flows'

the flow of Electrical ENERGY is also referred to as CURRENT.

so this 'econonmic' system is a way to control and manipulate the flow of OUR energy on this planet

[grachtengordel]

paper notes ARE money. any second year economics student can tell you that. or a dictionary

the 'model' of economics that is 'taught' to "second year economics student" is incorrect, misleading and false.

[bobhodge]

the 'model' of economics that is 'taught' to "second year economics student" is incorrect, misleading and false.

do you have any evidence to prove this point? please explain which part of whichever 'model' you are talking about is false, misleading or incorrect. or am i supposed to just take your word for it.

[grachtengordel]

please explain which part of whichever 'model' you are talking about is false, misleading or incorrect.

just read daveashes post again and again til the penny drops

or am i supposed to just take your word for it.

you COULD do some research OUTSIDE of "second year economics".

do you have any evidence to prove this point?

it's not apparent what you consider qualifies as "evidence"
to be blunt, i am not here to petition, justify or defend anything I post. It is entirely up to you to 'qualify' my words, to paraphrase Brian Haw, I am not in your 'dock'

[lupus]

paper money is still money - called fiat currency - backed by legal tender laws as opposed to a genuine commodity such as gold or silver - you can still have inflation with gold because more can be mined it's just a lot slower than with fiat currencies which can just be printed

[bobhodge]

just read daveashes post again and again til the penny drops



you COULD do some research OUTSIDE of "second year economics".



it's not apparent what you consider qualifies as "evidence"
to be blunt, i am not here to petition, justify or defend anything I post. It is entirely up to you to 'qualify' my words, to paraphrase Brian Haw, I am not in your 'dock'

yeah i get the idea already - you cannot prove any of your outlandish claims with verifiable evidence of any sort. davids post is typical of what you will find in on a conspiracy website - generally nonsensical. any dictionary will tell you what money is. 1) store of value 2) commonly used for exchange 3) unit of account. you are arguing point 1 - but todays money does store value, it just is being manipulated in the downwards direction....but this does not mean it ISNT money, it just means it is not very good money.

another conspiracy favorite is gold. if a currency crashes, gold will increase in value, but so will everything else too including other currencies if they are stable. there has never been a time when all currencies crash simultaneously, so nobody knows what will happen.

[grachtengordel]

yeah i get the idea already - you .

No, you don't "get the idea". you already had the 'idea' formed in your mind and thus make the words fit your preconception, manifesting the 'idea' you have created in your mind. are you a policeman by any chance? this is how they tend to think.

but todays money does store value, it just is being manipulated in the downwards direction....but this does not mean it ISNT money, it just means it is not very good money.

so your whole 'gripe' was about nit-picking one word?

davids post is typical of what you will find in on a conspiracy website - generally nonsensical.

really? what is a "conspiracy website"?

. there has never been a time when all currencies crash simultaneously, so nobody knows what will happen.

buckle your seatbelt

[jesuitsdidit]

bankers see debt as a form of slavery by credit, mortgage etc
the real problem with the current system is fractional reserve lending whereby they can lend 'on paper' up to 9 times what they hold - on the gamble that all the depositors will not try to withdraw all their savings at the same time
unfortunately some banks lend way over that amount..

[jesuitsdidit]

and once regulation was gone, it developed into 'casino capitalism'..