So now the whole world will understand what it means to be an artist in
America.     Welcome to my world Keith.     It all depends upon what you
agree you will have your "psycho-pursuit of values" in.    You love shiny
things.   (What the Nahuas called the "shit of the sun.")    What the
Jamestown colonists started wars and murdered children for in a five hundred
year journey that murdered 33 million people (not counting the unborn) and
continues down to the present.    On the other hand  I love aural
abstractions.     Values are everything.      As I hear the moaning around
me as people experience the world I know, live in and actually prosper, if
you consider happiness capital,  then it becomes clear that the only answer
to this will be an ultimate tragedy invented from the mind of a tyrant.
Something on the order of the American Presidents to my people, Hitler to
the Jews who provided jobs for the Germans by dying or the kulaks who
provided jobs and property for the Soviets by dying as well.     

 

The knee jerk response to complexity is never to solve it through competence
but always the Alexander solution to the Gordian knot.    "Just cut the
bugger and get on with life."    Until the asteroid or some other REAL
problem in life just wipes our provincial asses off the earth and restarts
the whole experiment.     Meanwhile, old men in the act of dying can "act
out" the psychological mechanism of "projection" and believe that the world
isn't a problem of solving complexity through  competence, human compassion
and design.    Believing that the complexity is "out there somewhere" when
it is really between the ears.    "Nothing is complex if you have the
competence to solve it without resorting to violence."    Peace is as much a
matter of competency as is war.     Instead we treat peace as the absence of
violence rather than the creative design of a society that helps every
citizen achieve their dreams and purpose in life.

 

What I find ludicrous is the acceptance of the usurer as the method and
final judge of the society within your head.    I would just as soon shoot
him, (my version of Alexander's knotty problem).      Maybe that will be the
next war that happens every 25 years in European and European influenced
cultures.     We say that to answer a person is to honor them.    I honored
you with my time this morning.

 

REH

 

From: [email protected]
[mailto:[email protected]] On Behalf Of Keith Hudson
Sent: Thursday, August 19, 2010 3:52 AM
To: RE-DESIGNING WORK, INCOME DISTRIBUTION, , EDUCATION
Subject: [Futurework] Close to the end of the present phase

 

In 1945 at the end of World War 2, after the manufacture of scores of
thousands of tanks, tens of thousands of airplanes, and thousands of
warships -- and at least as much spent on ammunition -- American national
debt had risen to 120% of annual national production (GDP). From the end of
the war onwards the mighty industrial machine and huge inflation turned as
one to making and selling a whole range of consumer goods that half of the
population had been unable to buy ever since the Wall Street Crash of 1929
and the subsequent Great Depression.

Due to this consumer take-up and continuing inflation (with higher tax bands
thus being reached) the American National Debt declined to less than 40% of
GDP by 1990. By then most households possessed most consumer goods, there
were no new ones on the horizon, and replacement goods or marginal
improvements to them were then increasingly supplied by Japan, Korea and
China. The latter countries were able to institute the very latest automated
methods of the West right from the start of their production runs -- as
also, in their early rejuvenated years, using high-value components still
being made in the West.

But by then things were beginning to be sticky in America and Europe.
Unemployment was rising, particularly among the young, and the real wages of
the new service occupations that replaced the old industrial ones were
declining from year to year. From then onwards (President Reagan's time)
America's national debt rose to over 60% (with corresponding rises in those
of West European countries). It sank a little during President Clinton's
time but then started rising again during the two terms of George W. Bush to
over 80%. Today it's rising at an even faster rate and is already past 100%.
President Obama shows no sign of being aware of the dangers of further
money-printing.

America's national debt could easily go above 120-140% of GDP in the next 12
months -- as indeed several European countries' already have (with several
others close behind).  When that level of debt is reached then it becomes
impossible to pay back those debts out of normal taxation.

The public have been aware in a vague way of the rise of inflation and the
rise of national debts since 1945. What they haven't been aware of has been
a concerted campaign by governments and central banks to suppress the price
-- and thus the validity -- of gold. Above all governments didn't want gold
to resume its role as currency because that would prevent governments from
steadily (and often not so steadily!) devaluing the price of their own
currencies in order to reduce the real value of their debts.

Central banks suppressed the price of gold by selling large quantities of it
from time to time. To a considerable extent this policy has succeeded since
1945. But at various times, whenever national currencies showed signs of
fragility or inflation, the price of gold would go up for a while until
central banks managed to quietly suppress it again. But since about 2000,
governments have been failing to hold the price of gold in check and it has
risen, on the whole, steadily, all the way up to $1200 an ounce today. This
is a fourfold increase over the course of a decade. 

And it is still rising.  Previously, the price of gold had an inverse
relationship with the price of national currencies, mainly the dollar and
the euro. As they devalued, the price of gold increased. But also, during
the strong deflationary period of the past two years, gold has continued to
rise. In fact, gold now has the confidence of so many investors (including
the governments of China, India, Russia and the oil-rich Middle East
countries) who are now doubting the future validity of Western national
currencies that it will continue to rise and become the de facto new world
currency. This is as it was before and during the greatest growth phase of
the industrial revolution (19th century) before governments started printing
paper money to pay for armies and major wars.

Unless something miraculous happens to somehow restore public faith in
national currencies and some miraculous formula is found to somehow
neutralise national debts then a day of reckoning is now not far off. To
English readers of this posting I would suggest that they take little notice
of the pseudo-cheerful bits of news that one reads in the press most days of
the week (after all, the media have an interest which they ought to
declare!) but to pay careful attention to the meaning behind the words of
those who really do know the real situation -- the Governor of the Bank of
England perhaps or the bosses of Tesco, Asda, Sainsbury, etc. They know that
the toughest times ever in the history of the industrial-consumer revolution
are now upon us. We are now very close to the end of the great governmental
experiment in printing paper money.

Keith



Keith Hudson, Saltford, England 

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