“GLOBAL ECONOMIC PARALYSIS” …IS THERE A CURE?
The term “Global Recession” is getting to be popular on the internet, in the media and in conversations.
As the unemployment problem worsened in the USA and in Europe investors became worried and stock markets dropped.
When China dropped its interest rate on bank loans the sky seemed to crash. If China is slowing then the Global Economy is slowing.
After all, China is the leading supplier of goods to the entire world. There is no other country in the world which can manufacture goods as cheaply and as well as China.
A slow down in China implicitly indicates that the world’s purchasing power is falling.
The world is not the USA and Europe, it includes every country: including all of Latin America, Africa, the BRIC countries and the Middle East.
There are some countries which still maintain their purchasing power, but in the aggregate, the World’s purchasing power has declined.
The leading economic thinkers of the world have expressed their anxieties, but the solutions that they have offered are not succeeding.
The most common solution offered is to increase the money supply, thereby giving private business and governments the ability to hire more workers who, in turn, will increase local and global consumption.
This effort has failed wherever it has been tried.
The money offered by the Central Banks goes to local banks which refuse to lend it to private parties.
Their refusal is based on two reasons: Because of the surplus of money in circulation the interest rates for loans are extremely low.
There is not a sufficient inducement for bankers to risk lending money for the small return. In a weak economy the chances of failure to repay the loan are very high.
In addition, the banks can re-lend the money they receive to their own governments, which guarantee them a small but utterly secure profit.
Increasing the money supply in the USA and in Europe has had a negative effect on these economies; yet the governments of these countries try the same method over and over.
The cause of the Global Recession is obviously not a lack of money in banks.
WHAT IS THE CAUSE OF THE GLOBAL RECESSION?
If we look at the world economy in the year 2012, we see over seven billion people whose working class is quite willing to work and be productive.
In addition, the people of 2012 have the technological equipment to be extremely productive.
This situation is in striking contrast to the world of a century ago where the population was one third of the present size and there was almost no technological equipment to enhance productivity.
Over the last century, productivity per worker has increased by an unknown but extremely large factor. Couple that to the exponential growth of the population we see that the supply of goods, both manufactured and cultivated is far beyond the capacity of the world’s population to consume.
This productivity has created exorbitant wealth for the elitists of the “For Profit” world and for the nation of Communist China.
In the “For Profit” world the wealth has been sequestered by a small group of elitists who have invested this money in government securities of the strongest nations: the USA and Germany.
The overwhelming majority of the population of the “For Profit” world are workers or their dependents.
If these workers do not purchase goods, the entire global economy slows down.
In the “For Profit” economies capital flows to the owners of companies and not to the workers.
This is the primary reason why the owners get richer and the workers become poorer. In order to stem the slowdown in the Global Economy it becomes necessary to change the form of compensation to the workers.
This concept was well understood by Karl Marx and this concept is the underlying premise of Communism.
However, the implementation of a change in compensation goes totally against the very nature of mankind.
Humans, as the most intelligent mammals, with an inherent ability to fantasize their future, are totally concerned, not only of their own survival, but also of the survival of their descendents.
We can see this throughout the history of mankind.
There has always been a movement to establish “Monarchies” or family havens, where succeeding generations maintain power and wealth.
This was the fundamental reason for the thousands of years of aristocracy and ultimately of a new expression of aristocracy in terms of “Untouchable Wealth.”
We can see examples of “Untouchable Wealth” in the thinly disguised “Foundations” where extremely wealthy individuals such as Bill Gates and Warren Buffet and thousands of other wealthy people have disguised their wealth under the term “Philanthropy.”
“Philanthropy” is the new term for “Monarchy.”
As the monarchist was accepted by the people of the world two centuries ago, the philanthropist is equally accepted by the people of the modern world.
The net result is a vastly unequal distribution of wealth.
This inequality of the distribution of wealth is found in the Communist countries of the world as well as in the “For Profit” countries.
There are a few countries of the world where wealth is fairly evenly distributed.
These countries are small with a homogenous population who are all well educated. Norway, Singapore, New Zealand, Switzerland and Luxembourg are typical examples.
WHY DOES WEALTH INEQUALITY EXIST?
We can see that if the working population of the world were to have higher incomes they would purchase more and the global economy would not slow down.
This would require that the working population would have to work fewer hours, since with technology available the productivity of each worker is elevated and the productive capacity of the world is much greater than the needs of the world.
We can see also that those people who are more educated and more intelligent than others have always devised ways to accumulate wealth for themselves and their descendents.
Since there is a natural disparity in the intelligence of human beings, as there is in all species, wealth will always accumulate to those with this higher intelligence, as long as the remainder of mankind permits it.
The permission to accumulate wealth lies in the acceptance by all human beings of “Private Property.”
All nations, including all Communist nations, such as China, adhere to the legal concept of “Private Property.” The concept of “Private Property” implies that no one, not even a government representing the entire population, may take the property of an individual or family.
The concept of “Private Property” underlies the entire phenomenon of inequality of wealth.
Such inequality of wealth produces economic weakness and, rarely, extends to economic paralysis.
When the Global Economy becomes paralyzed, economists use the term: “Great Depression.”
WHY DOES “PRIVATE PROPERTY” EXIST?
If we look at the written history of mankind we see that from the days of the ancient Greeks and in the Bible private property was a concern of all people.
Aristotle made a distinction between common property and private property. The Ten Commandments states: “Thou shalt not steal!”
Although the rulers of tribes claimed all property for themselves, the individual must have considered some property as belonging to himself or he would not work.
Private property has existed from the beginning of civilization, but as we note “Thou shalt not steal!” indicates that stealing also existed from the beginning of civilization.
As tribes formed, tribe leaders, people whom we call “politicians” today, learned that they could have more wealth and power by stealing from the tribe.
In the beginning of civilization such stealing was simply a matter of force. As the numbers of the groups became larger and larger, stealing became a matter of tricking the members of the group.
Today, we have experienced and well trained experts in what has become a specialty of tricking the public and stealing their wealth.
Such experts are related to each other and inherit a genetic ability and a culture of confusing and defrauding the general public of their wealth.
These elitists then pass the wealth that they have accumulated to their succeeding generation.
In so doing, the elitists increase the inequality of wealth!
At this point, the public must stop the creation of wealth inequality. They must do this by taking all wealth from the individual or family and return it directly to the public.
Such a change in the management of the disease of “inequality of wealth” will require a re-education of the population of each country.
These elitists leave the general public with huge debts and a paralyzed economy.
We are seeing this paralysis in the USA and Europe today.
IS THERE A CURE FOR THIS DISEASE?
Paralyzed economies are analogous to paralyzed patients.
They cannot use their muscles because their nervous system does not function.
When there is total paralysis the most likely cause is the brain.
If the brain does not function neither do the nerves and muscles. If the brain receives no oxygen it will not function. We see this frequently in strokes where a major artery to the brain is blocked due to the accumulation of fat.
In economies that do not function the supply of money is also blocked due to an accumulation of fat.
When a patient has a blocked artery the treatment is removal of the blockage.
The same method should be used for economies.
The simplest method of removing the blockage of money is by removing it from the owner when he or she dies.
This means that no relative or other entity can inherit the wealth of the individual.
The wealth would be taken from the dead owner and given directly to the people of the country.
In this way the inequality of wealth would be broken.
Redistribution of wealth would create a healthy economy just as oxygen revives the brain and insures that the brain can function.
The Global Economy like any living system requires circulation of nutrients. In economic terms, such nutrients are called WEALTH.
In all economies wealth is taken from the people and held tightly by a small elitist part of society. Elitists are people who are capable of manipulating the minds of the public and thereby steal their wealth.
This wealth is then sequestered or hidden, and a society of wealth inequality is formed.
This act of capturing and sequestering wealth slows down the circulation of wealth and the economy slowly becomes paralyzed.
When such paralysis occurs, we have what economists call an “Economic Recession” or an “Economic Depression.”
The cure for such a paralysis is remove all wealth from any individual upon death and give it directly back to the population of the society. Allowing an individual to use and accumulate wealth during his lifetime allows the economy to function.
The elitists will try to prevent the removal of their wealth by every means possible. It is the duty of everyone in a society to ensure that the elitists do not succeed.
When wealth is evenly redistributed, the wealth will circulate and the economy will be healthy.