Alice in Recoveryland

This article was first posted in May, 2009.

The legendary giant American car-maker Chrysler has filed for bankruptcy. It may be saved by being bought by Fiat of Italy. With General Motors and Ford both still heavily dependent on the US Government for bail-out cash, the US auto industry is now in danger of complete collapse. It will probably join Britain's car industry in being restricted to the minority top end of the market.

Meanwhile in the UK, where at least £35 billion of taxpayers' cash has been pumped into bailing out the banks, the chief bankers have awarded themselves around £7 billion in bonuses for having done such a good job over the last 12 months. These people obviously live on another planet where bankers have a right to pay themselves millions of pounds or dollars, drive around in new, expensive luxury cars (imported from abroad), live in spectacular, sumptuous mansions or penthouses, and take frequent, expensive holidays in various idyllic, exotic locations, in return for having nearly bankrupted the whole country through reckless trading and disastrous decision-making in their blind pursuit of profits.

This even puts in the shade (and that's saying something) the antics of our Members of Parliament, who are busy feathering their own nests with unlawful claims upon the public purse such as allowances for second homes that don't actually exist, and so on. The list goes on.

Then in another room of the asylum there are politicians claiming to see the "green shoots of recovery", and saying that before long we'll be back on track again (i.e. living on credit, on the surface of a fragile credit bubble, ostensibly well-off in spite of not producing anything much and importing most of what we consume).

Back in the real world, what we have is a calamity almost beyond belief. Whole wealth-producing swathes of the economies of the western world - particularly the USA and the UK - have been wiped out. Comparing this recession to the 1930s is a false comparison, because back then both countries had fundamentally strong economies and only limited foreign competition.

Now, taking the UK (where I live) as the main example, we have had most of our coal mines shut down, our oil and gas reserves are dwindling, our manufacturing base has been all but completely destroyed by cheap foreign imports, and our farmers, of course, have always been treated absolutely disgracefully. Agriculture could have flourished here over the last 50 or 60 years, instead of which many farmers have struggled to survive and have been made dependent on cash handouts from the so-called "European Union" for producing crops such as oil seed rape that nobody really wants.

I'm afraid the truth is that there is no real "recovery" round the corner. This recession is a watershed in the history of civilisation. It was inevitable from the moment the easy credit and free trade policies were ushered in some thirty or forty years ago. Nearly all politicians of all major political parties, in Britain, Europe and the US, supported these ludicrous policies and now everyone can see where they've brought us.

But it has benefited some people. The "global elite" of David Rothkopf's "Superclass", who control western politicians like puppets on a string, must be very pleased with themselves. They love weak, bankrupt governments and industries. It makes themselves more powerful and hastens the implementation of their hidden agenda.

And just what is their hidden agenda? This video clip of an interview of the late Aaron Russo exposing Nick Rockefeller's admission to him of the aims of the global elite gives us a big clue.

So you know what you have to do now . . .

Spread the word

Philip Gegan

 

 

 

 

The Bursting of the Bubble

This post was originally posted in February 2009.

It's unfortunate that it's taken the current recession, with all its bankruptcies, bailouts, tax increases, lay-offs and other tragedies, to more easily explain to people what a racket the economy really is.

People like me have been telling anyone who'll listen for the last 40 years or so that the economy (in my case of the UK, as that's my country) is fatally flawed, and that there's going to be an almighty crash eventually.

The response is usually quite sceptical. After all, when times are good and the economy is booming, everyone seems to have a job and all the shops are open, it's difficult to believe that it's all based on a bubble that will soon burst.

The Demise Of Manufacturing

But that's what has happened. I discussed in my last post how we in the west don't manufacture much ourselves any more - it's all imported, mostly from China and other Asian countries. The economy shifted over the years from being a manufacturing based one to, well, it's difficult to say what it has been based on for the last 40 years or so.

With the demise of manufacturing, the economies of most Western countries have come to be based around big, lucrative, projects, usually involving defence contracts or building contracts, and similar devices. With such a lot of money being shovelled around in these projects, it's not surprising you soon had the usual band of freeloaders and parasites creaming off the profits.

It became a paradise for the accountants, tax advisers, lawyers, brokers and all the other in-betweens that are attracted to easy money. This itself helped create a boom in the City and all the financial institutions. Money flowed around, in and out of the country, and while our factories and mines shut down the suits in civvy street prospered and paid themselves million pound bonuses.

Corruption blossomed. And as often as not it involved the very people who are supposed to be looking after our national interests - our ministers, MPs and Councillors. Examples of all this have been in the national newspapers nearly every other day for many years now. While the wheels came off the wagon the party inside carried on as if there were no tomorrow.

Reality Pops Up

Now the wagon has crashed with little hope of repair, many of the party goers have suddenly come face to face with reality - you can't carry on for ever pretending to be wealthy when you no longer produce any wealth to speak of. The bubble has burst. The only surprise is that it took so long.

And the real tragedy is that, until enough of us can organise resistance, the global elite / money power will continue to pursue their aims of global domination while ordinary folk suffer the consequences.

So for that reason, make sure you've downloaded "Promise To Pay" and are distributing it far and wide, and that you're doing all you can to . . .

Spread the word!

Philip Gegan

 

 

Free Trade and the Credit Crunch

Note: This blog post was originally posted in February 2009.

The credit crunch might be the immediate cause of the economic crisis engulfing western countries, but most of the damage from which we are all suffering can be laid at the door of the doctrine of "free trade".

All western countries, and many other industrialised countries as well, are well and truly into a full blown recession, and this is blamed on the credit crunch, which in turn is blamed on the activities of leading western banks in recklessly extending credit to uncreditworthy borrowers who then defaulted.

The value of the houses and other assets taken as security for these loans plummeted as the crisis took hold and money dried up, thereby leaving the holders of those securities effectively with nothing.

The holders of the securities had by then come to include investment and pension funds, hedge funds, and many other kinds of investment vehicle, all of which had purchased these "assets" from the wily bankers, and as a result the whole mess has affected nearly everyone throughout most of the industrialised world.

All this would have been bad enough, but the crisis has been made much worse by the policy of free trade that has been pursued by most western countries over the last 60 years or so.

Free Trade The Modern Holy Cow

Free trade is one of the sacred pillars of economic liberalism that has held sway in all western countries in that time. All the universities, all the media, all the policy making institutions believe unquestioningly in free trade. Anyone raising concerns about it is universally attacked and condemned as a parochial country bumpkin who wants to raise trade barriers, impose unnecessary tariffs that will raise prices and penalise the less well off, and pull up the drawbridge to cut ourselves off from the rest of the world.

Thoughtless politicians and newspaper editors on the make quickly grasp which way the wind is blowing on this, and trumpet the usual claims of free trade advocates. Free trade, they say, will bring disparate peoples closer together and make for international understanding and co-operation, and thereby international peace.

In fact the opposite is true. Free trade benefits nobody except the global elite who control the international banks and the money power. Unless it is challenged quickly it will lead to worldwide wage slavery, whereby all workers have to compete with each other to work for the lowest wages. So workers in advanced industrial countries will have to work for the same wages as sweated labour in south east Asian sweat shops, if they are to survive.

What "Free Trade" Really Means For Us

Just think what free trade has brought us here in the UK over the last 60 years (and this has been largely mirrored, even if not to such a large extent, in most other western countries).

Back in the 1950s and 1960s, we were still benefiting from the large scale destruction of much of our international competition in the wake of the Second World War. We might not still have been the "Workshop of the World", as we had been throughout the nineteenth century, but we made most of the manufactured goods we needed, and exported plenty more. Foreign cars were seldom seen on our roads. Televisions, radios, all electronic and consumer goods, white goods (washing machines, etc) and almost every other kind of manufactured consumer goods were made here in our own factories.

Unemployment was low and the economy boomed. We were still saddled with the parasitic debt based economic system we have had since 1694, but nevertheless we could support that and still have a generally high standard of living with comparatively little poverty. Our balance of trade was favourable as we exported in value more than we imported, and the pound (our currency) was strong and commanded a high level of purchasing power overseas. The country was generally regarded as still being a rich country.

It was easy for anyone to say that we were thriving in a free trade environment. But that would not have been completely honest, because the environment was still distorted from the effects of the Second World War. Over the years the economies of other countries grew stronger as they recovered from wartime damage and invested heavily in modern factories and production methods.

In particular Germany and Japan recovered as they finished rebuilding their infrastructure that had been ruined in 1939-45. Gradually, through free trade, more and more UK industries came under pressure from imports that were priced below their own products. The downward pressure on wages caused industrial strife as unions fought to keep wages high for their members.

Industrial Decay

Capital for investment in new technology dried up as sales fell. More and more we saw foreign made cars and motorbikes on our roads. Foreign made goods came to dominate in our shops and showrooms. Our factories became outmoded and struggled to survive before eventually closing down, with all the redundancies and human tragedies which that always brings.

Now we produce hardly anything. Our industrial production is confined largely to specialised, capital intensive manufacturing, such as aero engines and specialist heavy weaponry, that the rest of the world has neglected in its pursuit of markets that return quick profits. Virtually all the consumer goods in our shops are imported from abroad. And the few car factories we still have are almost completely owned by foreigners, such as Toyota, Honda and Nissan.

So what has all this to do with the credit crunch? Simply that the economic tsunami hitting us right now is much worse than, for example, in the 1930s, when at least we had an industrial base from which we could eventually launch a recovery to bring prosperity back to most of our people. Free trade has destroyed our capacity to produce industrial goods. It means there is nothing to help us find a way out of the mess.

A Revolution In Thought

The solution is simple in theory, though in reality it won't be accepted without a revolution in thought. That is unlikely while the present political system favours establishment politicians who aren't particularly bright and who are easily corrupted into compliance.

But nevertheless what we have to do, all of us in our respective countries, is to work for protection for our own industries, so they can survive and help us towards prosperity. This means imposing tariffs on imported goods that we could and should be making for ourselves. The money raised should then be invested in building our own industries once more so they can provide for the needs of our own people, including jobs and security.

There is not the time or space to go into all the details here. The subject is covered very well in Promise To Pay, by Dr R. McNair Wilson, available without charge from our home page. I urge you to download and read it. And to do all you can to fight this evil system and the monstrosity of "free trade". So . . .

Spread the word . . .

Philip Gegan