ECONOMIC RIP TIDE–PHASE TWO
We are now in Phase Two of the Economic Rip Tide. The Tide started two years ago in Februrary of 2008.
Everyone will remember that a major recession started after a long period of booming house prices fostered by fraudulent lending. This was the so called Sub-Prime Mortgage scandal which hit banks across the world.
People at this point realized that they and their governments were in debt beyond anything they could hope to repay.
House prices plummeted, stock markets crashed, banks went bankrupt. The economic devastation was beyond what had been seen in the U.S. and Europe for the last eighty years.
People called it a replay of the Great Depression of the 1930′s.
As a physician, I knew it was necessary to get a complete and fine point history of what had happened in order to make a correct diagnosis. What I discovered, startled me and I wrote a book called The Economic Rip Tide.
I discovered that all nations rise from a primordial economic base, where workers are paid the very minimum that they can tolerate and where business is small and fails frequently. It reminded me of the bottom of the ocean, where fish and other sea creatures multiply in vast numbers, and where predators abound keeping the population from exploding.
It also reminded me of South America where I had spent many years, watching poverty in its ugliest fashion, and where business and government could be no more corrupt.
I thought about the tens of millions of Latin American migrants who had come to the U.S. to participate in the building bubble, and how they had changed the fundamental character of what is called America.
THE SELLING OF AMERICA
I then re-discovered that the owners of American business, in their greedy search for the most profit possible, had sold or shipped their manufacturing businesses to China.
These owners, whom I call Money Managers, had no allegiance to America. They were international capitalists and they went wherever there was profit.
China, after centuries of poverty, had finally discovered a government with a far reaching mentality. They would become the home for the world’s manufacturing. They would assist the Money Managers in every way possible to move their businesses from the U.S. and Europe to China.
The Chinese workers were overjoyed to have jobs and their government provided foreign business with every incentive to leave the West and come to them. Western business left the West en mass. The workers who had been in manufacturing were re-trained for what became known as the Service Industry.
Banks filled the gap of low export earning by making loans easy and plentiful. This was the beginning of the Rip Tide. The fish were being brought to the shore where food was plentiful and predators few.
The U.S. as a country went deeper and deeper into debt. The American and European populations also went into debt. The debt became so large it turned into a “Bubble.” And, of course, the Bubble burst.
TWO YEARS LATER
That was two years ago. Now the U.S. and most European economies being pulled back into the deep water, where labor is plentiful and cheap and business must deal with corrupt politicians.
We are heading back to the deep ocean from whence we came eighty years ago. No minimum wage, no retirement and no trustworthy government. Even food will become more costly. American and European farms were also sent overseas in a search for cheap labor.
Those that remain in the West are farmed by migrant workers from Latin America, and in Europe from Africa.
Energy, in the form of petroleum, is now getting scarcer. The Chinese people are now buying more than the U.S. The price of oil is retracing its way to $150 a barrel.
FEBRUARY 2010
We are beginning to see clearly that this disease of the economy is structural and not just a mild infection. The economic body has been weakened since its vital organs have been sold to China.
Unemployment will not go away. There are no jobs. The jobs are in China.
Banks will not get stronger. The entire economy is based on the worker. If he has no money, he cannot deposit savings and he cannot buy goods or services.
Today, February 23, 2010, we read everywhere how consumer confidence is falling and large corporations are predicting major lay-offs.
This is the Second Phase of the Economic Rip Tide.
In the universe, nothing – Âťabsolutely nothing travels in a straight line. Everything travels in waves. But the waves have a direction.
In this case, that direction is down.
