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Untold stories behind the news and economic crisis by Ray Tapajna

tapsearcher posted 1/6/2009 from beltwayblips.com

It is time to define our terms  and  stop living in Clinton's land of "is" where everything depended on what your definition of "is", is.

Federal Reserve Chairman Ben Bernanke actually revealed the core of our economic crisis.  During the last stimulus package hearings , he told Congress that the best way to stimulate the economy was to have Americans buy "domestically produced goods".  Of course this was an impossible task since so much of our production  was moved out of  the USA. The extra stimulus money that was spent at the retail level, quickly went to where the products are made outside the USA when shopping at places like Walmart. The money did not stay here to grow a local value added economy.   ( See http://www.bizarrepolitics.com/ben-says-buy-usa  and note too a review of Alan Greenspan's book, The Age of Turbulence  at http://www.bizarrepolitics.com/greenspan-dancing-in-the-dark  noting that Greenspan did not even have the term - Free Enterprise- in the index of his book. 

With the financial crisis, we found that our economy was primarily based on making money on money instead of making things.  We found that a massive new working poor class replaced a middle class.  Hurricane Katrina also exposed a vast underclass living in a silent depression not only in New Orleans but across the country too. 

In our economy based on making money on money in a global economic arena, we needed many money products to add value to the intangible value of  printed paper money.  In doing this we actually went through a deflation process.  The value of workers and labor was deflated.  This represented not only a valuable tangible asset acting as a money standard but with the devaluation of this asset , the money products were affected too.  Worst yet, with consumerism supporting so called Free Trade and the global  economy, the new working poor class and the underclass in the USA found it more  and more difficult to afford  even the cheaper imports at places like Walmart.

Still Obama and other political leaders do not talk about the Trade Deficit that has broken records for years.  Free traders like to discount the Trade Deficit as being a factor in our economic  crisis but when anyone  starts buying more than what they are selling, Free Trade starts looking like a ponzi scheme.

The only thing that will work,  relating to what Federal Reserve Chairman Ben Bernanke said,   is to bring back local value added economies that won World War 2 and restored economies in Europe and Asia by duplicating success and not by chopping up the golden goose that laid the goldent eggs and sending the pieces across the globe.   We now know that the economies based on making money on money instead of making and growing things are burning out.

A good example of what we can do now is to simulate the Lend Lease Act before and after our entry into World War 2.  The world was out of money when war was breaking out in Europe and Asia.  President Roosevelt said he was not going to let the dollar sign get in his way  from supporting the allies and created mass values by ramping up the most awesome industrial might and agricultural power the world has ever know. It also proved you can not do business with people who do not have money.  You first have to find a way to add value in their economic efforts to do business with them.  Otherwise , you use impoverished workers who can not afford to buy the things they make or have anything left over to buy anything you may have left to sell. See http://ezinearticles.com/?id=390710   for Lend Lease article.

Workers and labor won World War 2. The military would be nothing without them.   Now more than fifty years later,  we are losing that war.  See Lend Lease Act was real Free Trade and not chop liver as in the Globalist Free Trade World.