Monday, August 30, 2010

ABC Australia Documentary - Original Broadcast: 23rd August, 2010.

The problem with calling contemporary policy Keynesian, is that Keynesian stimulus is meant to utilize what has been saved from better times in an effort to uplift an economy during times of recession. The policy of the printing press is best learned when analyzing Germany's Hyper-inflationary policy of the Wiemar Republic.  However, the Quantitative Easing of the Federal Reserve is producing a deflationary environment in America and creating conditions similar to Japan's lost decade (see link here).


So with the printing presses running into the foreseeable future but absolutely no increased financial activity we are living in a deflationary environment of productive activity and hyper-inflationary environment in terms of currency and money setting the conditions described succinctly by Marc Faber who says (LINK),

"Fed will print and print and print until the Final Crisis"

This documentary is about that increasing reality and another indicator that the sooner the world is read to hold a discussion about complete systemic overhaul of the the global economic order, there is little hope for an altered course and we continue slipping toward the abyss. The Islamic Nations possessing a majority of the World's Resources and a complete economic model of sound money, productive physical development through risk-sharing and interest free investment, and a lack of rampant speculation should come to the forefront of this discussion.  While the information in this video will be utilized to call for fiscal austerity, a measure that is sure to throw the world into a chaos of extreme right wing destruction, thinking must be original, new, and innovative. Nothing in the tool box of contemporary economics can alter the course. It is time for true talk of change.  




2 comments:

deciminator said...

during the end of part 3, the former comptroller of the USA said theres going to be a price paid by later generations. does this mean as the "markets" try to figure out the price of a loaf of bread, thousands of millions of people will lose their homes, cars, possesions in an attempt by the bankers to reinflate their bubble?

ali said...

and IF THEY DONT raise interest rates, USA can kiss the dollar goodbye as the Worlds dominant currency.

Alhamdulillah USA is slowly but surely fading away as the worlds leader.

Allahumma alaika bi amreeka ameen

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