Tapsearch Com EditorAn artificial stimulus package that hid the economic crisis.
February 6th 2009 23:28
By Ray Tapajna, Artist and Edtior of Tapart News and Art that Talks global issues
The artificial Stimulus Package that worked for awhile but masked the coming financial economic crisis
Most of any of the following could apply to any country in the world.
Alan Greenspan in his book The Age of Turbulence, tells about the billions of dollars that were spent in fixing the Y2k problems. What he does not tell you that this outlay of billions if not trillion of dollars proved to be an artificial stimulus package that hid our economic crisis.
Government and Corporations spent money they could not afford to spend to fix the Y2k problems. However, it gave President Clinton the opportunity to proclaim a statistical prosperity. It also hid the weakness of many computer ventures that were enjoying tremendous returns on their stocks. When the Y2k crisis ended, many of the Dot Com companies were exposed as having nothing real to offer. The stock market was hit with many losing millions of dollars in the process in 2000. Many Corporations also found that they spent their way out of business resolving their Y2k problems.
TheY2k crisis also hid the fact that more than a million workers in the computer industry had lost their jobs due to Free Trade. In fact, the firing of millions of workers in the computer industry is what caused the Y2k crisis to happen. There were not enough workers to keep systems up to updated.
President Clinton consummated Free Trade in the passing of NAFTA and GATT in 1994.
President Bush had his pre-emptive wars which further hid the state of our economy .
President Clinton used his Wag the Dog wars to do the same. Clinton used the Social Security Trust fund to fight his Balkan wars. In the process, he completed a reverse version of Ethic Cleansing where more than 750,000 Serbians and Gypies had to flee for their lives. Many fled to Kosovo only to be attacked and bombed again. President Clinton also bombed Serbian civilians in Belgrade. President Clinton also invited the Islamic fighters to help him in Bosnia with a part of this group ending up being part of the 9/11 attack.
All of the above hid the coming of our economic storms. The core of the problem was and is Free Trade and Globalization. Workers were "commoditized" to be traded. They were put on a global trading block to compete with one another down to the lowest levels of wage slave and even child labor.
As a result there was a massive hidden deflation in the value of workers and labor. This value is a real tangible asset and acted as a money standard. Still the stock market flourished as workers were fired instead of hired. They did not call it deflation, the called it an increase in productivity.
However, the lost of this value in workers and labor eventually impacted the economies that were making money on money instead of making things. Paper money proving to be the intangible value it is had a difficult place finding its proper place. The "money standard" backing it was what the U.S. economy stands for. Paper money ignored the tangible value of workers and labor as being a basic component of the whole.
In the end, tariffs were taken off products and put on work. The payroll tax proved to be a tariff too on work. It acted as a flat tax on the working poor from the first dollar they earned.
Now the stimulus plans are actually proving to be a tariff on our whole economic system while the Trade Deficit was ignored or was plugged into economic evaluations that made no sense.
As we told you before, Federal Chairman Ben Bernanke struck at the heart of the matter in Bush's first stimulus package debate when he told Congress the best way to stimulate the economy is to buy "domestically produced goods". This tells the real story of our times.See Ben says buy USA
The only thing that will work is local value added economies in balanced geopolitical settings where all of any particular society is considered. Global economies are reduced to the lowest water line. With each factory that is moved away, a burn out community is left behind. In the Free Trade Globalist world, production has been made portable with factories moved again and again for the sake of cheaper labor.
Now the various economic values have hit each other shifting out what is left.
The coming stimulus package is again an artificial one and it will not work.
Putting production back into it proper place in local value added economies will take a long time. The only thing possible is to promoted Business to Business mercantile centers across the USA - ( it also applys to all nations ) coupled with People to People commerce centers where people can sell to one another whatever they can obtain to sell.
Note our suggestion about what is possible in our city
As this is happening, we need to bring back our factories and restore our family farms. We must abstract all the economic models from the post World War 2 era that were successful an work from there. Then again as the Marshall Plan start doing, duplicate these successes in other lands, doing it the right way this time.
We need to keep in mind that Globalization is actually Centralization which brings all the good with the bad. Centralization on a global basis has proved to be a serious mistake. With De-centralization, the negatives are sorted out more easily based on localized human dynamics.
The artificial Stimulus Package that worked for awhile but masked the coming financial economic crisis
Most of any of the following could apply to any country in the world.
Alan Greenspan in his book The Age of Turbulence, tells about the billions of dollars that were spent in fixing the Y2k problems. What he does not tell you that this outlay of billions if not trillion of dollars proved to be an artificial stimulus package that hid our economic crisis.
Government and Corporations spent money they could not afford to spend to fix the Y2k problems. However, it gave President Clinton the opportunity to proclaim a statistical prosperity. It also hid the weakness of many computer ventures that were enjoying tremendous returns on their stocks. When the Y2k crisis ended, many of the Dot Com companies were exposed as having nothing real to offer. The stock market was hit with many losing millions of dollars in the process in 2000. Many Corporations also found that they spent their way out of business resolving their Y2k problems.
TheY2k crisis also hid the fact that more than a million workers in the computer industry had lost their jobs due to Free Trade. In fact, the firing of millions of workers in the computer industry is what caused the Y2k crisis to happen. There were not enough workers to keep systems up to updated.
President Clinton consummated Free Trade in the passing of NAFTA and GATT in 1994.
President Bush had his pre-emptive wars which further hid the state of our economy .
President Clinton used his Wag the Dog wars to do the same. Clinton used the Social Security Trust fund to fight his Balkan wars. In the process, he completed a reverse version of Ethic Cleansing where more than 750,000 Serbians and Gypies had to flee for their lives. Many fled to Kosovo only to be attacked and bombed again. President Clinton also bombed Serbian civilians in Belgrade. President Clinton also invited the Islamic fighters to help him in Bosnia with a part of this group ending up being part of the 9/11 attack.
All of the above hid the coming of our economic storms. The core of the problem was and is Free Trade and Globalization. Workers were "commoditized" to be traded. They were put on a global trading block to compete with one another down to the lowest levels of wage slave and even child labor.
As a result there was a massive hidden deflation in the value of workers and labor. This value is a real tangible asset and acted as a money standard. Still the stock market flourished as workers were fired instead of hired. They did not call it deflation, the called it an increase in productivity.
However, the lost of this value in workers and labor eventually impacted the economies that were making money on money instead of making things. Paper money proving to be the intangible value it is had a difficult place finding its proper place. The "money standard" backing it was what the U.S. economy stands for. Paper money ignored the tangible value of workers and labor as being a basic component of the whole.
In the end, tariffs were taken off products and put on work. The payroll tax proved to be a tariff too on work. It acted as a flat tax on the working poor from the first dollar they earned.
Now the stimulus plans are actually proving to be a tariff on our whole economic system while the Trade Deficit was ignored or was plugged into economic evaluations that made no sense.
As we told you before, Federal Chairman Ben Bernanke struck at the heart of the matter in Bush's first stimulus package debate when he told Congress the best way to stimulate the economy is to buy "domestically produced goods". This tells the real story of our times.See Ben says buy USA
The only thing that will work is local value added economies in balanced geopolitical settings where all of any particular society is considered. Global economies are reduced to the lowest water line. With each factory that is moved away, a burn out community is left behind. In the Free Trade Globalist world, production has been made portable with factories moved again and again for the sake of cheaper labor.
Now the various economic values have hit each other shifting out what is left.
The coming stimulus package is again an artificial one and it will not work.
Putting production back into it proper place in local value added economies will take a long time. The only thing possible is to promoted Business to Business mercantile centers across the USA - ( it also applys to all nations ) coupled with People to People commerce centers where people can sell to one another whatever they can obtain to sell.
Note our suggestion about what is possible in our city
As this is happening, we need to bring back our factories and restore our family farms. We must abstract all the economic models from the post World War 2 era that were successful an work from there. Then again as the Marshall Plan start doing, duplicate these successes in other lands, doing it the right way this time.
We need to keep in mind that Globalization is actually Centralization which brings all the good with the bad. Centralization on a global basis has proved to be a serious mistake. With De-centralization, the negatives are sorted out more easily based on localized human dynamics.
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