Before anything else, you need to know that recessions are man made and totally preventable and instantly reversible into prosperous economies. Recessions are not something like the weather, that just happens and we cannot prevent a rainstorm or turn rain into sunshine.
So, if recessions are man made, we do not want to waste our time on conspiracy theories to find out who the people are that deliberately create these recessions, or how they do it and for what purpose they do it. It is much more practical to allow them the freedom to continue to plunder the economies of all the countries they operate in but to try to curtail those freedoms very gradually so that the plundering is reduced to a manageable level that does not criple the economies they are plundering. If we were to try to identify all the individuals that are part of this corrupt group of people that create all these financial manipulations that ruin our economies and then try to bring them to justice and get rid of them, we would accomplish absolutely nothing other than to create a vacuum at the top of the one eyed pyramid that is the symbol of the illuminaty. That vacuum would be quickly filled with new members of the illuminati and we would be no better off.
So, let's strike a bargain with these nasty people and leave them in their positions of corruption and let them keep plundering our economies, but let's curb their power gradually and bring some more balance back to the economy by gradually lifting the standard of living of all people on all levels of the economic ladder. This would also increase the total value of the economy as a whole so that the corrupt people at top of the pyramid would be able to come out with more wealth even though it would be a smaller percentage of the total generated wealth.
How does an economy function? In its simplest form, an economy has 3 basic legs that it stands on: 1. Production 2. Distribution 3. Consumption It is like a tripod stool for which the length of the 3 legs are about equal so that the stool will be in balance. One of these 3 components is the leading one that drives the whole economy. Which one is it? Is it production? Can the whole economy be improved by stimulating production of products and services? Will an increase in production also increase 2.Distribution and 3.Consumption? NO IT WILL NOT. Will stimulating distribution also increase 3.Consumption and 1.Production? NO IT WILL NOT. So that leaves consumption. Can the whole economy be improved by increasing consumption? Will an increase in consumption also increase 1.Production and 2.Distribution? ABSOLUTELY. Consumption is the prime driver of an economy. When people buy more products and services there will be an immediate increase in demand for production of products and services and there will be an increase in distribution of products and services. That creates manufacturing jobs and distribution jobs. So when the government has another loose $700 billion that last time they gave to the banksters, maybe they can give the money to all of us consumers with the mandate that we spend it on consumption of products and services to stimulate consumption. You now know enough now to better understand how to end recessions.
Ending recession is extremely simple: All recessions start with a drop in consumer spending. If that drop in consumer spending is for example 20%, then all businesses receive 20% less income. Many businesses cannot meet their overhead any longer and have to go out of business. Many other businesses will try to lower their overhead by laying off employees. That creates a lot of unemployment. Unemployed people have less money to spend on products and services. Less consumption creates another round of business closings and layoffs that is followed by another round of less consumption. Well, you get the picture of the downward spiral of alternating rounds of less consumption and ever less employment that slowly gets the economy into deep recession. But here is the simple solution to turn any recession into a booming economy by reversing this downward spiral into an upward spiral by dramatically increasing consumer spending on goods and services and by increasing government spending at all levels of jurisdiction. But how can we increase consumer spending on goods and services during a recession? Consumers do not have any money to spend and those who have some money do not want to spend it and want to hold on to it as an extra nest egg, in case things might get worse.
Increasing government spending sounds like total nonsense to the average person with average intelligence, because they are totally convinced that "wasteful" government spending is a major contributor to an economy sliding into recession in the first place. They are totally convinced that one of the best methods to get economies out of recession is for governments to implement austerity measures so that governments will live within their means like everyone else has to. They demand that governments do not spend more money than they get through taxation. Little do they know or understand that "government austerity measures" will make bad economies even worse. In fact it will prolong recessions some more or will push recessions even deeper by creating more unemployment. So what is the solution? Please explain how this controversial recession ending idea can be implemented. All of it will be explained below.
First a short explanation on how very simple economic measures can turn the current recession into a prosperous economy in under 12 months, and why the corrupt people that run the whole economy from behind the scenes will try to block the required legislation needed for this recession turnaround with all their power at any cost (and their power is very substantial).
Simple measures? Are you kidding? Nothing that governments do is ever simple or fast, unless it is a $700 billion bailout package for banks that are TOO BIG TO FAIL. So how would this be possible when since 2007 hundreds of economists and politicians have not looked for or found any simple solutions?
What little power "We the People" have, must be spent on prevention. Preventing the bankers from being able to steal all that money from all of us, literally TRILLIONS of dollars every year (currently about $3 trillion per year, as much as the Federal Budget). The easiest way to take the power away from these evil people is to gradually breaking down the foundations upon which they have built their power. The plan with which to end this recession in record time will allready break the major parts of those foundations, and that is why it will be very difficult in getting this recession ending plan implemented without the general public getting educated to the point that people get so mad that they are ready for "The Second American Revolution". Preferably a bloodless velvet revolution that will force Congress to pass the enabling legislation to end this recession in record time and to prevent any and all future recessions by nipping them in the bud.
What led to the creation of these simple but very effective ideas? We know that the 3 major components of an economy are Production, Distribution and Consumption and that if any one of these 3 components is in decline that it immediately pushes the other 2 components into decline.
Consumption, or the lack thereof, is the driving force behind all boom and bust economic cycles. When the consumption of products and services is in decline then the economy is in decline. If consumption over a period of time drops by 20%, all businesses will on average have 20% less income and many of them will no longer be able to cover their overhead expenses. They have to reduce their overhead by cutting their payroll and some will have to close their doors. That will create more unemployment. Unemployed people have less money to spend and that reduces consumption of goods and services some more, resulting in another round of layoffs and business closings. Ever continnuing rounds of spiraling down rounds of more layoffs, less consumption and more layoffs in an ever more spiraling down economy.
Reversing that downward spiraling economy into an upward spiraling economy is easily done by simply massively increasing consumption. Small tinkering with small increases in consumption would be like trying to raise the water level in Lake Michigan one one teacup at a time. The whole population has to start consuming more goods and services and in less than 12 months we will turn this recession, that we have suffered unnecessarily since 2007, into a very healthy economy that will turn into a new boom that will prevent any future recessions. This will sound too good to be true to most economists and all the people that have put their trust in politicians and their economic advisors that seem to deliberately feed them false information that makes the rich richer and helps the poor and wipes out the whole upper middle class that creates all the goods and services and creates employment for the lower middle class and the poor.
So how can we get the whole population to increase consumption of goods and services that will restore the middle class and increase employment at the same time? The President cannot go on television and beg all the people to please open their wallets and spend more money and increase their consumption of goods and services. Most of the people have no money to spend and the ones that have money to spend want to hold on to it a little longer as a nest egg, in fear of that things might even get worse in the near future.
The only way you can get every person to increase consumption, is to GIVE THEM THE MONEY in regular monthly installments with a mandate that they must spend the money given to them within 30 days after receiving each monthly installment.
But how can you give all the 314 million people in the United States (or the people in any other country) money every month? Where should all that money come from? The Federal Government has no money as it is and is borrowing more and more money from the Federal Reserve Bank (Fed for short), increasing the Federal Debt Ceiling on regular basis every few months or so. And now you are proposing this very Keynsian sounding nonsense to get the economy out of recession and toward a new booming economy? Keep reading.
Hold on there dear friend, this is where the real fun starts:
The resulting increase in consumption will stop the downward spiraling and result in an upward spiraling economy of re-opening of previously closed businesses and new start-up businesses, increasing employment- that results in more consumption of goods and services by the newly employed and re-employed- resulting in more businesses hiring and re-hiring people- and an ever upward spiraling economy and a slowly tapering down of the monthy amounts of Debit Card funding to $100 in the last month of funding.
For a more detailed explanation you have to read further down.
“Each progressive spirit is opposed by a thousand
Most politicians and bureaucrats do not know enough about economics to run a hotdog stand with a profit.
We have to force change in economics
Improvement is only possible with new ideas
Standard rejection of new ideas and hypotheses
Other favorite mindless methods of opposing and rejecting new ideas are the following two gems of stupidity:
Reversing the process
I will first explain how a recession starts and how it progresses. After that I will explain how to get an economy out of recession by reversing the process by which an economy goes into recession.
Money in itself has only value as a lubricant of an economy
The continued decline
Declining tax revenue
Reversing the downward spiral into an upward spiral
When the economy is low on oil it needs a few quarts of oil and the government can create new oil whenever it is needed (let the corrupt Federal Reserve create more money out of thin air). The government must know however where to pour the oil into the car. The government has no clue where to pour the oil. The government has poured $700 billion into the banks in hopes that the banks would lend the oil to businesses to get it into the engine. The reality is that businesses do not want or need any money during a recession. Businesses need customers to get the economy out of recession. Businesses are not going to increase the size of their store or restaurant or factory to increase their capacity. They have already more capacity than what they need for the number of customers they currently have. What businesses need in a recession is CUSTOMERS not money.
The government needs to create customers
How to increase consumer spending?
How to create more consumption
If that $700 billion would have been given to the people in 2008 instead of to the bankers that never did anything with it, we would have been out of this recession already in early to mid 2009.
Here is the simple novel solution
So this is what must happen to end the recession and create a prosperous economy:
We must dramatically increase consumer purchases of consumer products and consumer services by giving all 314 million people in the United States money to spend on products and services. This must sound like complete nonsense to anybody in his right mind. But read the explanation below and you will understand the brilliance of it all. This money will be given to all 314 million Americans every month for a 12 month period. The maximum total cost of this program will be $1.8 trillion during the 12 months.
1. Question: Where will the money come from? Answer: Same place where the Government gets it from now when it increases the National Debt some more. Or better yet, the Government reverses the crazy Federal Reserve Act that was passed by Congress in Dec. of 1913 and takes the previlege to create new money out of thin air away from the Federal Reserve and returns it to "We the people" where it belongs according to the Constitution. Then we do not have to borrow money any longer because the money we print ourselves is already our money, that we do not need to pay back and we do not pay any interest on.
3. Question: Why does everybody get the same $475 or whatever the amount is, because surely the rich people do not need it. Answer: If you leave it to the Government to decide who should get the money and who should be excluded, that would take them about three years to figure out and we need this program to start right now, not in 2017.Besides, in a democracy we are supposed to give all people the same rights and freedoms.
4. Question: Should there be restrictions on how the money can be spent and on what it can be spent? Answer: First of all, same answer as above: If you let the government to determine how the money can be spent it will take them even longer than 3 years to figute that one out. But the main beauty of it is that allowing people the maximum freedom will result in the most even recovery of the economy. When the tide rises, all boats rise equally. No restrictions on which boats are allowed to rise and which boats are not. The economy is a very interwoven structure that should be based on maximum freedom to make whatever decisions people want to make. A government that wants to keep people from failing is also a government that keeps people from succeeding. There is only one restriction that the money that funds the debit cards must be spent in 30 days after funding. What has not been spent will go back to the Federal Treasury.
Why people are apathetic and not interested in new ideas