‘ISSUE OF MONEY’: FINANCIAL CRISIS.1929=2008: OVERPRODUCTION OF E-MONEY
Money is a language of digital Information that values metal more than life.
How governments and corporations invent money? Governments print ‘paper-money’ which is a digital language of information that values things with numbers as humans do with ‘words’. This grossly overlooked fact – that money is merely a digital language of information, not ‘wealth’ per se (as energy is), is grossly overlooked.
Money in that sense must be ‘created’ to give orders of work to human beings, as words do with legal orders. And so the entire subject of money is about power, control, and privilege to reproduce money. It is the issue of money – a political issue of freedom of nations to control their two language of social power, verbal laws and digital money.
Money is a language of digital information that values with numbers humans (with salaries) and products (with prices), easy to reproduce in papers or digital screens, as all languages of information are. Since to reproduce languages we need minimal energy.
In the graph, money has evolved according to the laws of all languages, diminishing its energy/size and increasing its speed of reproduction; hence increasing its capacity to carry information and value more things: first as metal, it became quantized into smaller bits of information that required less energy=substance and increased its units, as coins.
Then it evolved from precious metals into printed-paper, then into electric data and electronic bits, invented with a computer program.
Finally it has become with Internet just a digital flow of information in computer brains that control today the economic ecosystem with a ‘digital mind’, moving at light speed and with a null cost reproduction. Thus today money is so abundant that it values all entities on Earth, replacing human verbal thought, a language with lesser capacity to carry information than numbers, still divided into multiple tribal species with different languages.
So the fundamental questions about money and the financial crisis are this:
1) Who should manufacture money, sovereign states or private financiers? In a democracy obviously sovereign states that also manufacture laws. Further on, as a language of information, money should NEVER be debt money, but ORDERS money, as we do not borrow or lend WORDS but use the language of words to ‘inform and form the planet Earth with our actions. Money is NOT wealth and so IT SHOULD NEVER HAVE BECOME DEBT-MONEY, BUT LANGUAGE money.
2) what should be the substance of money, commodities like gold, or informative languages of numbers. Obviously numbers, as that is the essence of money.
3) What are the cycles of evolution and reproduction of money and how money interacts with the other ‘memes of metal’, weapons and machines? Those are the 800-80-8 cycles of the ‘complex’ Financial-Media/Military-Industrial System, the superorganism of machines growing on planet Earth.
Let us consider several aspects of those key elements of the language of money, FIRST considering the substance, values and nature of money as a language of information, then focusing in the 80-8 years cycles and the incoming 8 years cycle of currency crashes lurking ahead.
PART I. MONEY AS A LANGUAGE OF INFORMATION, ITS ISSUE, VALUES AND EVOLUTION.
How Financiers invent money.
Question 1 unfortunately is answered today by mankind in the wrong manner. States only manufacture 5% of the world’s money. Financiers make 95% of it. And they do it with the only purpose of keeping it for themselves or investing it in memes of metal of maximal profits (hence the overwhelming quantity of weapons industries in this planet, as they are the most expensive machines), but mainly to lend it to other people who become ‘debt slaves’ of the cycle of usury of debt-money.
What financiers basically do is to manufacture money without limits to lend it as ‘wealth’ (even if it is not), and then contract the production of money in the bust cycle to get back instead of money now scarce real ‘energy wealth’, properties and workers.
Let us resume the boom & bust cycle of debt-money creation repeated in all financial crises:
– First bankers issue as much fiat money as possible, with no limit, which costs them nothing and creates debt and inflation. And they lend it to an adoring crowd that knows nothing about their sovereign rights to reproduce that money for free, since the media system and financial economists working for power misinform them. So at a point the entire society owes huge amounts of ‘soft debt’ to the bankers. And this is good for the bankers who receive ‘interest’ for their debt.
– Then they stop lending and contract the monetary mass. So money becomes scarce and there is deflation. Companies fire workers as they cannot pay them. Production halts. The economy shrinks but this is done in purpose because it is even better for the wealth of bankers as now scarce money in a deflationary environment is worth more as ‘it buys more things’ deflated in price. And so the huge debt society has with the financial system becomes worthier – with their payments bankers can buy many more things. Since debt has NOT contracted, as it was established in the age of monetary expansion.
Further on, as now there is no money available to pay the huge debt society cannot pay it with the fiat worthless money that created it and must pay with taxes in hard currency, work, real state wealth, national assets and sheepish obeisance to the power orders of bankers who implement their selfish agendas.
So bankers in this phase end up controlling most of the wealth of society and its politicos obey them.
Thus, in this phase, the entire eco(nomic)system is geared to extort money from people to pay debt, with higher taxes while governments give handouts to bankers and pass laws of privilege for their corporations. In the Train age in this phase the Law of Anonymous Societies that eliminated all responsibility from the owners and managers of corporations and the first anti-deficit laws that forbid governments to issue money were passed. So stockrats, owners of corporations became the new aristocrats, with the same privileges the rules of the ancient regime had: no court responsibility for their actions (in the Middle ages aristocrats could only be judged by peers in special courts) and monopoly in the issue and use of the language of social power (now money; weapons in the Middle Age, which only aristocrats could carry and use.)
2. The ‘values’ of money as a metal-languages. Its affinity with weapons and despise of life values.
So those who invent money have become today the global caste of linguistic power that substitutes politicians and priests who controlled societies with verbal, ethic laws and its values. This means a change of ‘goals’ and values in the planet at large, and a change of the ‘favorite’ species on this planet, Since what matters about languages are their power to order and select reality according to the subjective, cultural values of those who invent it, but specially – and this is grossly overlooked – according to the objective values of their substances which are always preferred.
So words, our biological language, values reality from a human point of view, directing human actions to reproduce valuable human life, as genes direct biologic actions to reproduce life molecules:
The graph, shows how languages value species according to their substance ‘s affinity. So ethic words give max. value to human life, since men reproduce them; while money made of metal, (coins) gave max. value to metal weapons, reproducing them). So, before the industrial revolution armies used 70% of metal-money (‘pecunia bellum nervi’). Then it became paper or e-money representing corporations (stocks); so it gives companies a huge value. Thus Apple is worth more than all the people of Pakistan. Only currency, representing nations carries human values and can be used to reproduce a world to our likeness, spent by governments in the creation of salaries and welfare goods.
Thus the type of money, its values and who invents it; matters, since it defines not only who rule societies but what societies care for and reproduce.
The problem of monetary values as the graph shows is the fact that in its metallic forms, it values more corporations, machines and weapons, metal-memes than any other object, including human beings, who in fact as all forms of life have null values in terms of metallic money. Thus a capitalist society directed by classic economics, based in the values of metal-money either gold or corporative money, fosters the overproduction cycles of machines and weapons that cause wars and the extinction of life; showing the biological, predatory nature of selfish metal memes, which act as genes do, catalyzing the reproduction of a larger super-organism – the financial-media/Military-industrial system that is terraforming the Earth from a planet of life into a planet made to the image of machines and weapons that substitute and kill man. Only if human governments control money, we can bend its values to credit a life-based welfare world made to the image and likeness of man.
We humans use 3 languages of social power, money, weapons and laws, and those who invent them control societies. The control of those languages of social power, means according to the natural structure of all social organisms divided into a ‘neuronal/informative class’ and a reproductive/working body that obeys blindly the messages of the languages and its neuronal people-castes the control of human societies. So priests and politicians control verbal, ethic societies. Bankers who monopolize credit control capitalist societies and the military that controls weapons controls dictatorships. When weapons dominate the other 2 languages we live in a military dictatorship.
When money dominates, issued by non-elected bankers or corporations we live in a corporative dictatorship, the definition of a capitalist society, which is incompatible with a true democracy, in which laws dominate the other 2 languages.
But why is better a society controlled by words? Because of the previous laws of affinity, which are ‘logically’ expressed in the fact that each language has a ‘different’ Universal Grammar that favors with its values its ‘objective substance’ by comparing it with other species with a certain ‘grammatical bias’. Indeed, it is all in the grammar of the language. So human history can be understood as a fight among 3 grammars:
– The Ethic grammar of words that makes of man the center of creation, writes (Chomsky)5:
2.1 Man (informative subject and center)>Verb (action of man over)>Object (energy of man).
– The Digital Grammar of money that compares workers’ salary with the price of tools:
2.2 Man’s work (salary-action)≤ money (desired subject) ≤ Tool-Machine (action-price).
Since as Machines keep evolving and workers do not, human price-salary on the long run will be higher to the cost of machines, as the productivity of capital increases (eq.3.1), unless our educational skills grow more than productivity, our ‘productivity’ as workers will become inferior, and companies will eliminate the bulk of men with simple jobs (Tinbergen).
Yet the law of affinity means machines are better suited to reproduce machines. So factories, when ruled by monetary values, sooner or later substitute workers for machines, once their evolution achieves the best form to develop a certain job. So neoclassic economists for ‘whom money is always right’ – the invisible hand of go(l)d’ – like Adam Smithor Ricardo (7) preach a ‘subsistence salary’, just what people need to survive, to increase corporative profits, or even less, an ‘iron salary’,equivalent to the price of the tool-machine that can replace them. While humanist economists (Sismondi, Marx) affirmed that ethic laws should control profits and impose a minimal salary that valued human labor higher.
– Finally military grammar compares in battles the strength of iron weapons, the strongest atom of the Cosmos, with the strength of human flesh of weaker carbon atoms. So men are always inferior: 2.3 Weapon > Darwinian fight (action) > Man (Corpse). Since weapons always win and kill men. But since weapons are the most expensive, profitable machines, a capitalist system systematically makes wars and as weapons productivity grows it will finally extinguish humanity (Eq.5.1,2,3).
This means that only a society in which ethic words, laws are the top predator language that commands the other two can be a democracy. Only when laws control the 2 other languages of energetic metal (weapons) and informative money, we talk of a society made to the image and likeness of man, and only when the ‘informative heads’ of the society, politicians, are chosen by the people we talk of Democracies.
3. The faster evolution of metal-money as a language gave total power to financiers.
Thus the invention and control of those 3 languages of power is the battle of mankind for freedom. But we do NOT live in a democracy but in a capitalist eco(nomic)system ruled by corporations and their search for profits. We lived most of the XX century in a mixed, capitalist democracy, in which the issue of money was shared by governments that printed currency and corporations that printed stock-paper; till with the discovery of e-money, in the 70s, much easier to reproduce than currency, corporations one hundred-folded the amount of money in their power, becoming the dominant institution on Earth.
Then they fought for absolute power, lobbying to forbid governments their sovereign right to print money for free (deficit zero law) to pay for the welfare goods people demand. It is the real origin of the present debt crisis, as now governments are obliged to extort citizens with taxes to pay their welfare state or have to borrow it from financial corporations that unlike them, do have legal privileges to invent money as ‘digital prices’ in stock-markets (shares) and electronic screens (derivatives) and pay them usury interest.
And this state of affairs has happened in modern history 3 times, when corporations invented a new form of reproducing money with new informative machines, overpowering governments with it:
– In the colonial age of overproduction of stock-paper by train and steam corporations.
– In the fascist age of overproduction of ticker-paper by cars=tanks and radio corporations.
– In this crisis of overproduction of e-money by chips for electronic and financial corporations.
In those 3 ages as corporations monopolized the issue of new money, they invested massively in the overproduction of memes of metal of higher profits, provoking the parallel underproduction of welfare, life-based goods of lower profits which require costly human labor and are perishable (food), having lesser monetary ‘value’, despite having higher value in verbal terms.
And so only governments credit with currency deficit. The same happened in the III cycle of e-money, causing the astounding 5 trillions wasted in dotcom companies. Then with that money – for example the 100 billions given to Facebook – those worthless Internet companies multiply their industrial products without limit. But welfare companies limited in size and profits do not have access to stock markets that invent money mostly for the machines of the FMMI Complex tool machines, weapons, audiovisual software and machines that make money.
Now consider that, small welfare companies could print ‘monetary orders’ to pay their workers and make life goods. There would be overproduction of welfare goods most people demand to survive as credit flew to agricultural companies, hospitals that save lives or Universities that pay professors to educate humans. People would have easy access to health-care, education, housing, and food. Prices of welfare goods would plummet and global scarcity of food (1 billion people are hungry), medicines, jobs, education, housing, etc. would end.
So to end the crisis of labor and welfare capitalism – the monopoly of the issue of money by stock-corporations – must end. And democracy must start. People must control the language of social power. Credit must return to the people who demand welfare goods, giving them a universal salary, to governments that subvention welfare (with deficits) and to small welfare corporations that reproduce them. Instead because only bankers and industrial corporations issue financial orders there is overproduction of electronic money, drones and worker-robots. Thus, in Democratic R=evolutions, (US vs. UK Companies; French vs. Aristocrats) people seized the issue of money from castes of warriors, bankers or corporations to print huge sums of currency (continentals, greenbacks, assignats) to create welfare for all citizens.
PART II. THE 80-8 YEARS CYCLES OF BOOM AND BUST DEBT MONEY.
Free Market invention of money: The 3 boom & bust cycles of the Industrial age. Debt Wars.
But as if the hidden values of greed, ‘the invisible hand of go(l)d’ in which classic economist believe, were not bad enough, the boom and bust cycle financial corporations, moved only by greed, have used to invent money with new machines in the 3 Industrial cycles is even worse.
From a technical & political perspective the process starts with the invention of a new machine that prints money and breaks the balance between ‘democracy’ (the issue of money by governments in currency) and ‘capitalism’ (the issue of the new forms of digital money with machines), tilting it in favor of corporations that awash with new fiat money buy politicians, pass deficit zero laws and steal the privilege of inventing money from the people.
Then they switch the purpose of issuing money from paying the welfare goods people demand, create jobs, foster consumption and promote the production of those goods, into maximizing profits overproducing the FMMI machines: tools, hate-media, fiat money kept for themselves & weapons, promoting warmonger politicians to provoke a massive demand for weapons, hate-media, debt-money and profits.
In sequential order, the 4 capitalist ages of issue of private money to increase the profits of the Financial-Media/Military-Industrial Complex are: the Age of slave companies, train stocks, ticker money and e-money. The boom & bust process of debt-money and war for profits was the same:
– This cycle first happened in the Age of Gunboat Companies of Slaves in Britain after private moneylenders got from corrupted and clueless politicians a monopolistic charter to issue British money. Then they founded the Bank of England that printed paper-pounds lent to Crown at 6% of interest; exactly what the ECB – whose charter was invented by private ‘expert’ bankers in Brussels’ – has done now in Europe, achieving the monopoly of printing the sovereign money of Euro nations, which they give only to private banks at 0’% interest that in turn lent it to southern European states at an usury 6%, rate called in Spain ‘Prima de Riesgo’, which absorbs the 3% of its GDP cancelling any economic growth.
Next the Crown raised taxes to pay debt, especially in the American colonies, despised by the British elite, as the PIIGs nations (nicknamed by a racist Frankfurt banker) whose life-art based culture produce mainly goods of the welfare state (Portugal, Italy, Ireland, Greece & Spain) do; as they are now ECB colonies. And so they have the lowest rate of growth in the entire planet. Since unlike machine-based nations like Germany whose corporations print money for free in stock markets welfare companies do NOT have stock-credit.
In the Company Age this was also the case. Only slave, gold and colonial gunboat companies could raise the other type of paper money besides Pounds, stock-paper. Soon the Bank debt-money was used just to back speculation in those companies, NOT to create real wealth, as now the money printed by the ECB bank and Fed is use only to rise the Dow to new records not to create a Global New Deal. But return profits were dwindled as the best colonial lands had been taken. So a series of bubbles, the South-Sea company bubble in Britain and the Louisiana Company bubble in France, where a Scot, Mr. Law had sold the same scheme, exploded, as the financiers had sold out the worthless fiat stocks at stratospheric prices into the middle classes of both kingdoms and left the market sink no longer issuing mountains of speculative paper-money. They did the same in the 29 crash and the 2001 crash of worthless dotcom stocks and the 2008 mortgage crash, once they exited the market, after expanding credit to the middle classes.
‘When my boot-cleaner talks stocks is time to exist the market’ said Joseph Kennedy. To that aim the synergy of the media owned or corrupted by financial groups is essential. So financial media kept rating dotcom companies and CDOs as AAA value, while Goldman exited and emails said they were ‘piece of junk’ and the press during the XVIII c. insisted that in Louisiana and the Patagonia there were huge gold mines.
In both kingdoms the politicians of the age, the kings and aristocrats were greased with huge returns and redemption of shares at maximal price. But when the bubble exploded the outcome was different:
in France it sparked the French Revolution that tumbled the ‘ancien regime’. In Britain the king’s court condoned the financiers establishing the Anglo-Saxon capitalist system in which financial crimes are never punished to ensure they will happen again. As England’s Capitalist democracy was a banking dictatorship, similar to the one established by VOC in Amsterdam, founded in the ‘Glorious Revolution’ of 1688 by Dutch financiers, who during the French invasion, bought the Parliament for the Dutch king with the money of the Amsterdam Bank, and established the Private Bank of England and the stock-market in the City, their own ‘kingdom within the kingdom’, with his own taxes, where the king cannot enter without the permit of its major and MP, traditionally of the House of Rothschild, who said:
‘Let me issue and control the Nation’s money and I care not who makes its laws; what puppet is placed upon the throne of England. The man who controls Britain’s money supply controls the British Empire and I control the British money supply.’
Then corrupted politicos to the payroll of the Private Bank of England, that usurped as the ECB has done the name of the nation to be accepted by the people, soon embarked in permanent wars to increase state debt, and the 6% of ‘free profits’ for printing the British money. Those wars raised taxes for the commoner of England and provoked enormous suffering to all cultures on Earth, colonized by British, but the mirage of Empire and racial superiority maintained the British people till today, a happy subject of City Financiers, as it does today with Americans and Wall Street. But in the XVIII C. Americans were more enlightened and so they rebelled when Franklin failed to convince the Crown to abolish the system.
Then he ran his press to create a ‘free’ Financial-media system and started to print colonial money and pamphlets explaining the ‘issue’ of money, true cause of the American R=evolution. But soon after the Independence, Americans lost that freedom ‘again’, when Mr. Winthrop, a Calvinist bishop, Mr. Morris and associates, Jewish merchants, Mr. Gerard, the biggest slave trader and Mr. Hamilton, a corrupted politico took away from the right to issue debt-free money, from the founding ‘peasant fathers’, the plantation owners, Jefferson & Washington, who did not understand yet there is no democracy without the issue of bills of law and bills of money to implement them, by their elected governments. It was the birth of the ‘Biblical elite’ of corporative owners that substituted British Companies in the control of their society.
Soon the Hamilton gang started to promote wars – wanting to declare war to France! the country that had invested more hard currency in the American war for the freedom of the American people, to steal Louisiana – and had not Jefferson merely offered money and bought it from the French, it would have achieved its purpose – to create like the Bank of England did, a nation in perpetual war for profits, ruled by an elite of ‘bankers’,. America and their people though had a higher sense of freedom and rights than the British commoner and fought many battles with the bankers, starting with the duel in which Burr killed Hamilton, followed by the understanding of Jefferson that they had been ‘cheated’ and his attempts to regain the right to issue money. But then bankers ‘exploded’ the game, overpassing the Federal Government by lobbying states, which started to charter private bankers that issued massive amounts of their own paper-money, systematically ruining the common Americans by defaulting on their paper.
The classic run-on-the bank cycles started then. And as ‘greed’ and ‘theft’ became ‘privatized’ so any wealthy slave trader or usurer could start a bank, the elite caste of American capitalism took roots and has reigned ever since. And when American heroes of national freedoms, presidents like Mr. Jackson, Lincoln or Kennedy tried to reverse the course and regain those freedoms for the people, with the abolition of the 2nd private ‘bank of the United states’ (Jackson) or the emission of debt-free greenback money (Lincoln) or the creation of a welfare demand based economy (Kennedy), they fall to the bullet.
Thus the British earlier model of bankers corrupting politicos to declare imperial war to get usury interests from debt-money printed by those privateers on behalf of nations became the American model, specially after the murder of Lincoln, when free-debt greenbacks were cancelled and frontier banks issued massively debt-money backed by ‘future profits’ based in train stocks and land speculation taken from Indians that had to be exterminated for that purpose with the help of the Yellow Press and the new technologies of the steam age.
It would be the 1st Financial-Media/Military-Industrial Complex imitated by all Western nations in their colonial wars.Thus every attempt of western people to become free democracies was reigned in by bankers and corrupted politicos, by murder, corrupted law and war, backed by the new machines of the Financial-Media/Military-Industrial Complex, since Staunton, railroad baron, paid Booth to kill Lincoln and robber barons colonized the West in I Cycle of trains.
-72y. Train Cycle: Paper-Money. Boom: Railroad stock-paper: 1840-70. Bust: Silver Crime:70s-90.
In detail in the 1st cycle of steam machines and printed paper-money, the boom cycle happened during the overproduction of rail road stocks. The bust cycle happened when Silver money was demonetized, substituted by the gold standard. In America financiers implemented it, bribing Mr. Grant at the height of the Robber’s baron era. It was called the ‘silver crime’, as it plunged the country in the worst depression since the crown forbade the states printing colonial money. In Europe, Germany, the dominant industrial nation, provoked it, when Bismarck’s bankers cancelled bimetallism, imposing the gold standard and reducing to ½ the circulating money. So suddenly half of the metal-money disappeared, increasing enormously the value of debts, by increasing the value of money and deflating prices, making debts far more expensive.
The world entered recession, except industrial companies that switched to weapon’s production and unlike the people who were asked to pay debts in scarce hard currency, received credit in stock-paper. Soon they declared the 1st of the many German FMMI system’s splendid wars for profits that ruined European lives and wealth – the French-Prussian war of 1871, the I and II World War and now the Euro War.
– The 2nd Industrial cycle of fiat money overproduction started its boom cycle in the earlier XX C. with a massive expansion of ticker speculation in the nascent car industry. The House of Morgan busted the credit cycle in the panic of 1907, as an excuse to set the Federal Reserve Bank as a private bank of ‘issue’, who extorted usury debt to the United States for decades to come.
Then the Fed crunched most credit given before by frontier banks to Middle West farming states now stripped off issue rights, provoking the famine crises of the dust bowl, as lending to small companies and agricultural states plummeted. Now Fed Banks concentrated in New England ignited 2 boom decades of credit to Industrial Trusts and financial companies of the FMMI system, backed by the yellow press and radio of the happy 20s, the age of ‘ticker-money’ speculation and W.S expansion. But in 1928-29 the Federal Reserve and Bank of England’s concerted contraction of money crashed the global market, provoking the Great Depression solved after a ‘too small to matter New Deal Deficit’ in Welfare goods by ‘canons instead of butter’, after the next 7 year boom and bust crash of 1937. Then Roosevelt changed his mind, pressed by Industrial Trusts. So he provoked Japan with an embargo and every nation in the world, with Germany ahead of the pack, expanded their deficit to pay for war industries proving that Deficit is NOT the problem.
It should be rule, but issued with debt-free money not to pay war but to cre(dit)ate a Welfare Global Deal of life-goods and peaceful, consumption. Since America reached its all-time-peak of debt at 150% of GDP during II World War and never paid I and came out of the crisis – as Germany had done before at the cost of 66 million victims. Synergy between the 4 overproduced technologies of the FMMI system is thus essential on the boom and bust cycle of debt-money and war that creates the 4 parallel crisis of each Kondratieff age of overproduction of fiat money.
Sounds familiar? It should because it is what happened in the 3rd cycle of e-money overproduction:
Bankers invented fiat money without limit once they discovered the ‘complex e-money derivatives’ that allowed them to print ‘digital data’ as money in computer screens… Then in the 90s, the happy new 20s they lend it massively at soft interest. So every state and individual owed them money.
Now they are contracting the monetary mass, and their quisling politicos are extorting people with higher taxes, bailouts and the destruction of welfare states to pay a fiat debt that in a real democracy would never exist, as money would be issue by sovereign states free of debt, as a Universal Salary and credit orders for welfare goods:
First bankers in the US expanded credit in e-money without limit, in the happy 90s so everybody bought Internet stocks, and finally they busted the credit system in the 2000s; after unloading those stocks into the middle class with the ‘self-made man’ myth of ‘trade yourself in internet’.
In the 20s they call it ‘buying on margin’. As the top price moment of unloading fiat worthless paper-stocks overpriced into the middle class approached, ‘buying on margin’ was fueled by massive credit of the Federal Reserve. Say you wanted to buy a ‘yahoo’ or a ‘RCA’ (radio-stock) at 500, their peak prices, in the 2000s or 20s. You would just put a 10% of the 500, and the ‘bankster’ will tell you that you will double capital when the price hit 550.
What he didn’t tell you is that when the price goes down to 450, your 50 $ are gone and then the banker will sell the stock and ruin you. So they passed the ‘virus’ of greed to Main Street and ruined them in both cases, unloading at maximal prices the shares, whose value they had artificially jacked up in the previous decade.
Then within years another short 7-year cycle of the ‘product’ took place. Now as people did not want to know anything about stocks, they had to invent a new form of worthless e-money in their screens. So they expanded again e-money with the mortgage CDOs, which they unloaded at maximal prices into the accounts of the governments and investors of the entire planet.
And then they contracted credit and had the ‘chutzpah’ of asking again to be paid the ‘false fiat money’ of those CDOs – mere double accountancy as they were false mortgages repacked and resold ‘again’ – extorting one trillion dollars in bail outs, which now bring higher taxes but rip for them higher benefits. And parallel to that boom and bust cycle, they have expanded military expending to 1/2 of the nation’s budget, which is a quantity HIGHER (5) than the amount spent by Nazi Germany before the ‘splendid little Spanish war’ that started W.W.II. served as the Guinea Pig to essay in Guernica the goodies of the German FMMI complex.
History rhymes said Twain, so now we witness the ‘déjà vu’ rise of the IV so-far ‘only’ financial Reich that is ruining again from Frankfurt the guinea ‘Piigs’ of Southern Europe, after converting them into colonies of the ECB bank. So now their citizens toil to pay debt-money, as they no longer issue their own currencies. Since they had the generosity of forgiving Germ(an) crimes, allowing their unification and absurdly handling them the control of the Euro. They should have remembered that cultures, as people do NOT change, only their metal evolves.
So the Germans who first mass-produced iron swords in Europe and called themselves the tribe of Gods (‘Goths’), because they could kill anyone who opposed them, creating their cultural memes imitating their idol of power – so Thor was a god-sword, placed upside down to impale the children of their enemies and their language became a primitive agglutinative, inflexible, long-word system that cannot be broken into variable meanings, making it the culture of believers in absolute egoist truths, absolutely false, to the point of allowing no sense of ‘humor’ – a higher form of criticism and certainly no empathy for the so-called ‘Piigs’.
This astounding subjectivism is common to all industrial cultures that parasite or extinguish lesser technological societies and on top denigrate as ‘weak’ those who have humanist values, call them primitive because they reproduce mainly life-based welfare goods and when working unending hours to pay back the money they print for free are labeled as ‘lazy slaves’, which only understand the whip (Company’s era); must be civilized with rifles (colonial age) becoming the ‘white’s man burden’ (Kipling), whose ‘manifest destiny’ is to cleanse their historic Eastern territories from those inferior people that do not have radios or TVs to hear the speeches of the ‘leaders’ of the Greater nation (Slavs and Jewish peasants in the fascist, German age; Palestinians in the neo-fascist TV-hate cycle.)
The boom & bust cycle of the industrial R=evolution shows the synergies of the Financial-Media/Military-Industrial System made of energy machines – weapons, tools & transports – and informative ones –media & digital, fiat money, the ‘informative head’ that controls and causes all other overproduction cycles. Thus overproduction crashes of stocks (graph) start the cycle & weapons’ overproduction to fight ‘splendid wars’ for profit closes it. Neither human actions nor causality changes, only the growing complexity of the FMMI system that maximizes its evolution and reproduction in the war phase of the cycle. But for mankind the cycles are a tragedy. Since in all the cycles machines take people’s jobs; too much money causes inflation, it is changed by real wealth and when its bubble of value explodes and it ruins the Middle class left with worthless numbers. Then Hate Media & Weapons kill them in wars.
The only change on the boom and bust usury cycles of financial speculation that usurp the sovereign rights to issue money is on the metal-machines used to ‘invent’ digital money, which evolved from ‘gold’ (in an age that extends from the times of Joseph, Pharaoh’s banker and first recorded speculator against people’s welfare to the mercantilist age of slave companies) into stock-paper (train age, electric tickers) into our modern times of pure digital information as e-money. Thus since money is reproduced by digital machines, its cycle is parallel to the Kondratieff cycle of overproduction of new energies & machines (chemical energy/printing; electro-mechanical engines/tickers and electronic machines/e-money):
– In the age of steam machines, there is a peak in stock-money issues of worthless train companies in the 1850s, when the best railroad lines are constructed and new ones loose money – even if speculators knew they were profitable, just for the sake of inventing ‘paper-money’, unloaded on the middle classes ruined by them. Meanwhile the 2 commonest job of the age, transport was lost to trains and 90% of horses were killed in a decade, out of work, while food prices and revenues for small farmers, plummeted under the monopoly on prices of railroads.
– In 1928, there was a peak in the creation of new stocks in companies of cars and radios, when RCA shares reached an astonishing 500 $ value, precisely when the slump in consumption of cars had started in earnest, as all Americans had their Ford-T. Yet the electric ticker, the equivalent to e-money Pc screens in the 1920s, had been implanted in small towns and was sucking in money from the middle class all over America to satisfy the ‘Ponzi Pyramids’ of Wall Street speculation in ‘margin 1 for 10 credit’ for stocks.
Then, in 1929 and 8 years latter in 1937, the physical and financial economy crashed together. While the reproduction of electric systems of automation in assembly lines at factories provoked a massive wave of unemployment, halving the work force.
– Today electronic machines have not only saturated the world with e-hardware but also with e-money software. Thus, we live a financial crisis of overproduction of e-money, made with PCs, similar to the 29-37 crashes of the ‘ticker money’ economy. In the 2001’s dotcom crash and the 2008’s derivatives’ crash financiers maximized electronic invention of fiat money, while in the physical economy robots and electronic software throw millions of blue and white collar workers out of work and the 1st ‘splendid little wars9’ that are taking companies out of the crises are essayed in Afghanistan with drones, the 1st Terminators of a new age of war whose industry, now in its Rostow’s takeoff phase, will dwindle W.W.II profits of cars=tanks & planes=Bombers corporations.
The short 7-8 wave: 3 crashes of fiat e-money: 2001-2008-2015. III W.W.?
The long 72 years waves have shorter 7 year crashes – the so-called ‘product business cycle’ in which new fiat money products are overproduced, and then exchanged for real wealth, provoking the 3 short crashes of the I, II and III Cycle. So after the 2001-08 crashes it is only left the 2016 euro-dollar crash that might provoke a world war with China. Let us see why: Every 7 years corporations invent a new variety of its star product.
Thus overproduced stock-paper in the I cycle, ticker money in the II cycle and e-money in the present cycle had 3 shorter ±7 year cycles around the main crash in which fiat money target ‘3 real wealth assets’ to exchange it for the overproduced fiat, digital money. Since economies produce massively only 3 asset types that can be exchanged for so much fiat worthless money: stocks, real state and currencies…
So once the speculator invents in the ‘inflationary, boom phase’ mountains of fiat money – only a language of information, not wealth per se – to become truly rich, he will tailor it as a product to be exchanged for one of those 3 forms of real wealth that suffer a boom and bust cycle as the speculator acquires it, leaving only fiat money in the hands of society that becomes ruined 3 times. So there are 3 short crashes of ‘currency, real state and stocks’, each time a new information machine overproduces fiat money:
2.4 1st cycle: 1857, train stock crash; 1865, real state crash & 1873, silver currency crash.
2.5 II cycle: 1922 Mark currency crash; 1929 stock crash & 1937 real state crash.
2.6. III cycle: 2001 dotcom crash, 2008 real state crash and 2015-16 euro&dollar crash: In S&P graph we see the 2015 final 7 y. crash forming.
– Panic of 1857: train stocks crash due to overproduction. Mr. Lincoln, an Illinois Railroad lobbyist declares war to the south to liberate black slaves but also to build railroads to haul cheap cotton to Northern mill factories of ‘white slaves’. Train ‘demand’ switches to war, thanks to the railroad act that pays robber barons to lay tracks South and West, causing the Indian genocide.
– 1865: Real state crash. At the end of the war the south plantation system collapses, as slaves abandon the land, which is not given to them, since carpetbaggers want to buy it at bargain prices.
– 1873: Silver demonetization causes a global currency crash as deflation ruins middle classes. But corporations keep printing stock-money and politicians push buy trains for colonial wars.
– II Cycle: 1922. Crash of Mark, overprinted by the private Reichsbank to embezzle their owners and pay reparations, ruins Germany. The banking elite depletes German banks of gold moving to New York where the Warburg Syndicate creates the Federal Reserve starting Ticker speculation.
– 1929: New electric machines (tickers) overprint tape prices. Stock speculation becomes rampant, as Federal Reserve and Bank of England fuel credit and then contract it causing the 1928-9 crash.
– In 1937 after a new wave of speculation based in loose credit – NOT invested in the real economy, due to the limited scope of the New Deal – multiplies for 3 stock values. A new crash of stocks and real state, ends the skyscraper era. A much bigger New Deal could have avoid it, creating real welfare, but the opposition of industrial and financial corporations favor the solution already implemented by Germans, ‘guns instead of butter’; that is, fascism, war and holocaust, in which the poor Jewish peasants become scapegoats of their ari-stockracy of international bankers.
Then you add 1929+72 years, as I did 20 years ago forecasting 3 new e-money crashes:
2001:Greenspan’s loose credit policies & deregulation fuels speculation in Internet stocks with no profits. NASDAQ overcomes in value NYSE, then crashes mimicking the 29 crash (graph.9).
– 2008: e-money is tailored to real state with the repacking of worthless 2nd mortgages in CDOs sold to global investors at AAA ratings by the American Financial-Media system till they crash. Instead of ‘erasing’ this false money from their accounts, banks pretend it is real wealth and peers in Central Banks massively reproduce currency, NOT to create a welfare Global Deal to get out of the parallel labor crisis, but to buy toxic assets banks didn’t sell; while politicians overtax people, and give banks their tax money in new bail outs, ruining the middle class. Thus bankers sold 3 times, worthless mortgage assets they invented for free (1st sale, Central Banks credit & bail outs)
– 2015-16: If in 1922 people exchanged Marks, overprinted to pay reparations not to credit German production for $ crashing it, now the massive $ printing by the Fed used NOT to create jobs and wealth with Keynesian policies but for bail outs and soft credit speculate in markets will crash the overproduced $, when China makes its currency convertible, as nations will change their $ reserves to Yuans, the top predator currency of the new cycle. Since only China is following the right Keynesian policies printing money to create real wealth and a sustainable economy, growing at 10% annually while Europe and America contract the real economy, since bankers do NOT give credit, as speculation, which is just ‘the manipulation of prices to profit without creating real wealth’ (Henry Ford) is more profitable.
The date will likely be at the end of the Obama Presidency when the Tea Party rises to power, the GOP provokes China with anti-communist war rhetoric, and China liberalizes its currency market and sells Treasuries. Then as it happened in Germany, with a similar social structure, neo-fascism might rise in America and civil wars, a holocaust of the Jewish middle class and/or a worldwide war, blaming China might bring more ‘guns instead of butter’.
D) The solution to the pending 2015 crash and III W. W. is thus obvious: end of currency speculation and creation of a global currency ¥€$ money at fixed parity: 1 $=1€=100¥=5Yuans with rights to a 20% annual deficit, equivalent to a 10% annual inflation adjusted for salaries to cre(dit) a Global New Deal with overproduction of Welfare Human Goods and Human jobs ending the crisis (11). Keynesian militarism is never the answer, since wor(l)d life values must control digital money.