First, the tangent: THIS IS AN LJ FRIENDS ALERT! GET READY FOR THE COMING ECONOMIC PROBLEMS!
Anyone remember one of my brilliant ideas to help solve deep philosophical-economic problems? Even though I have yet to go into detail about it, it was a novel design for a two-tier system of currency. Well, apparently, possibly, the USA is working to create a two-tier system for the US dollar. One, "Republic," dollar for inside the USA, and one differently-valued, "US Trade," dollar, for outside the USA. (China already has a two-tiered sytem, where strict central management of the Yuan has been responsible for the massive boom of the Chinese economy, sucking in our jobs and mega-corps. But this is destined to falter soon enough, because it is inherently flawed). Anyway, this (possibly) planned USA two-tiered system is meant to try to manage a few structural problems and challenges. (It does not at all resemble my own awesome cool two-tiered idea, btw). One such challenge is the inherent weakness of our present Petro dollar, we we forever try to force other countries to use, via exhaustive military expense. Apparently, we are planning to switch from and OIL-based economy, to a METHANE-based economy. (Methane is aka NATURAL GAS). We need to try to balance out new international trade and currency rates, and not slip in our global power, but we also need a DEVALUED dollar for the people inside our borders. Dollar #2. There is a great deal of networking and dealing and planning, to get this international plan going, which will soon be introduced after the G-20 Summit in Russia. Part of this strategic preparation has been the war on Syria, because it holds an important gas pipeline to Iran. (Russia has also been interested in this plan, and so, as I have gathered on my own, all of Russia's supposed anger at the USA, regarding Syria, (or the USA anger at Russia for Snowden), has been a whole lot of empty, PR BLUSTER(!) Rather, Russia and the USA military have actually been training together, in various instances. Who knows how this global plan might work out. It does include the intention that all other allied currencies devalue as well - (I don't know yet about the BRIC countries).
The real US dollar devaluation will occur with dollar #2, the internal "Republic" dollar. The one we common folk are supposed to use. This planned devaluation will do things: Increase inflation, especially of food prices, and cause shortages. Because of shortages, there may be riots, especially near grocery stores, ATM's, and gas stations. (Why ATM's? Because, as in Cyprus, it is likely that they will be raiding our personal bank accounts. But, more immediately, there will be runs on banks, as people flock to get more cash). Also, it will greatly increase the value of gold, because it will be related, or possibly pegged, to gold. Therefore, SHOULD this eventuality really unfold, then people should try to keep as little cash in their accounts as possible - and that includes IRA's, 401K's, CD's, and of course, stocks ad probably bonds. There will be bubbles in food commodity prices, which will eventually pop, after the big investors get out before all the little investors take the hit. So, people should also invest in food commodities, and oil/gasoline, for the short-term, and then Natural Gas for the longer term. These are not my recommendations. These are the suggestions over at thegoldenjackass.com - (sp??). It is also suggested that savings be spent on buying gold now, before its value rises again, perhaps to $5000 an ounce. But the only type of gold to buy, worth its weight in gold, is actual gold that can be held in one's hands - all paper contracts for gold are weak and would likely fail.
For the common person, the best thing to do is to put a fair amount of money in stocking up on food, at bulk prices, before the inflation begins. I have warned of such a possible hyper-inflation, which would occur unless a deflationary depression took over because of some collapse of the Chinese economy. The only difference here is that the two-tiered system, which is supposedly being planned for the USA, is an attempt to MANAGE that inevitable collapse. So, if this does occur, look for food shortages, power shortages, an riots - (certainly where fanned by racial justifications, from white and from black). Regarding racial-type riots, it should be noted that conditions are already favourable for the development of much antagonism between rural populations, vs the cities, esp. the big ones, where all the capital is. If this ever went into an advanced stage, it would be a civil war, similar to Sarajevo and such, and not so much a war of the North versus the South. But, I am not here to fear-monger. I have decided that race, etc., riots, are not wanted, by the powers that be, even though major preps are being made for such. What is wanted is to keep a low-simmer cold-war going, providing just enough racial discord to keep us divided against each other, and so voting for either Republicans or Democrats, over and over again, as usual. Blaming the economic woes on each other, stupidly.
As I have also said before, once interest rates go up, as they are trying to do presently, with inflation, there will also be a LIBOR-associated crisis, which will threaten trillions and trillions of dollars worth of derivatives investments, or bets. (Some of these are taking up space alongside our personal banks accounts, hoping for protection from the FDIC, although a law has been introduced to help reduce this guarantee). A massive run on derivatives - a collapse of such proportions - would entail global economic failures unprecedented in history. Therefore, some sort of plan to address this should secretly be in the works, but whether that may succeed, idk. These are all hypotheticals.
The pleasant side of this is that we can now partly view the Democrats-versus-Republican dichotomy now as an "GAS-PEOPLE"-versus-"OIL-PEOPLE" contest. That explains the whole attempt of the Dems, (E.g., Hillary), to cover up the Bhenghazi affair, where guns and heat-seeking missiles were being run to Turkey for use in SYRIA. It also explains the vicious attack of the status-quo, pro-oil GOP. So, perhaps there is indeed some grander plan, a reason for much of the bullshit - but I thought that, if such existed, it would be more related to the need to address the massive crisis of global warming, or else some pending catastrophic cosmic event, like a flare/E.M.P. from the sun, or an invasion of human-sized ants who cook with strange spices. So - we can have sweet dream about all this sort of thing, but I still see us, at least EVENTUALLY, plummitting to hell in a handbasket.
OK, that was the tangent. There is more to all this, economically and politically, but I can even begin to get into - and a lot of it would be repetition of things I have already said, but, again, this is kind-of a collapse which is supposedly going to be orchestrated. And, don't get me wrong, the same banksters and monopolies will be reaping great profits from all this nevertheless, draining us further of our wealth...
Here is the simple, philosophical stuff...
Thom Hartmann often has good new and old ideas or insights to share, as well as good links and sources. But sometimes he comes up with some idea which is way-old-hat for me. Something I have known as OBVIOUS for years. Well, he had such an idea yesterday, saying that he had recently been enlightened that:
Whereas corporations or countries once disposed of their surfeit workers - the unemployed - and left them for dead, THESE days, the powers that be, (which is an interconnected global web of corporate BOARD MEMBERS, etc.), have found a better use for people who are made unemployed because of the flight to CHINA, or because of NAFTA, or because of WalMart behemoths... Simple: MAKE MORE MONEY OFF OF THEM!! How? Get them arrested. Send them to prisons. PRIVATISED prisons. For crimes like carrying marijuana, or revealing marijuana, while black. Send them all into the world's largest prison system. Because the privatising pirateers who run these prisons can get a $100,000 PROFIT per year, per prisoner, from our government - our tax money. For keeping the prisoners locked up, fed, etc. And, there is another gain to this, for the mega-corps, and the banksters who profit from investments in prisons, as they do from investments into building municipal colliseums, which are built at the same time citizens are being told to give up their taxes, pensions, liberties and society, (Commons). There is another gain, which Hartmann negleted to mention, which is this: More products made by prisoners, means less jobs for us. And, since prisoners make REALLY AFFORDABLE PRODUCTS, it drives out small businesses as well. This is a wonderful example of CORPORATE WELFARE, which is based not on competence of corporations, but on their very DYSFUNTIONALITY - which includes corruption. Ad, as it involves corruption, the privatised prison complex ALSO INVOLVES LOTS OF MONEY IN DRUG AND GUNS-RUNNING, which is what corrupt bankers like, too. It is a vast augmentation and institutionalisation of neo-MAFIOSO...
Well, this is also true. Too true. Hartmann does forget, though, that profits were made from prisoners in past epochs, as well. I believe England's prisons were privatised, (USA definition; or, "public," in the UK definition). So, I assume contracts were gained by these companies from the UK government, for prisoner upkeep, (as they were for the large Dickensian orphanages), at a profit. Or, sending prisoners to Australian penal colonies for stealing bread, or to America for indentured servitude, was a way of securing these colonies, and also populating them as the prisoners gained freedom. And, even in our regular prisons, in the past, prisoners have been exploited for cheap labour, license plates, and even dirt-cheap hiring-out to third-party companies. So, the prisoners themselves might make like 25 cents a month or some ridiculous amount. Also, the reduction of poor ghettos, and crime, gives the elite a sense of security, which advances their various business investment agendas.
And - what was not mentioned was that sooooooo many of the unemployed are not even sent to prison... Instead, they are sent into the vast criminal enterprise called WAR, which is a colossal profit-making industry all in itself. Then, these poor veterans come back from this great crime, supposedly regarded as heroes by society, but in reality experience great abuse, and often consequent imprisonment or homelessness, by neglect and abuses from their own government. And, people still wonder why! How? How could VETERANS be so abused? How, now, could veterans be seen as a perceived danger to the US government, with all their knowledge of guns, and all their moral patriotism. It is because WAR IS UPSIDE DOWN - war is an admission of failure by the PEOPLE's state, and a proclamation of victory by the banks, who play either side, for profit. And, as the saying goes, "War is the Health of the State" - that is, the TYRANNICAL or National-Security state! NOT the people's state(!!!)
Well, what happens to our veterans, more and more, as they are sent home without the encumbrance of body bags? They are preyed upon by Big Pharma, and Big Med, for the chronic illnesses they now suffer! Funny how that works out, isn't it? Funny how so many soldiers seem to get accidentally exposed to USA DEPLETED URANIUM DUST, or to USA CHEMICAL WEAPONS, or to vaccines containing neuro-toxins. Or, funny how they are sent up close to explosions and incurring TRAUMATIC BRAIN INJURIES. And so forth. Why, it almost seems like some kind of slow-kill genocide is being waged on our boys, based on nothing but the greed for profit, by the privatising pirateers.
Well, as it goes for many veterans, so it goes for many of the unemployed and poor. And this is what struck me as the most important thing which Thom Hartmann failed to see:
Profit is made from the jobless, not simply by sending them to prisons... But also by making them tragically, chronically ill.
Well, the implications surrounding all this have to do with the nature of capitalism, as I see it, which I guess I'll launch into discussing by making it a separate post, since I am getting vewy sleepy. This,this will be a four-part series instead of a two-part series. You have the benefit of reading the ext stuff all freshly thought out by yours truly, at some later date.
Speaking of VETERANS, the great Joyce Riley will be on Coast To Coast AM Tonight, August 13, 2013 - 1 to 2 AM CST !!!
CLICK HERE for stations in your state - http://www.coasttocoastam.com/stations