The Golden Veil of Globalization-The Seen and Hidden

8/7/2019 The Golden Veil of Globalization-The Seen and Hidden

1/101

THE GOLDEN VEIL OF

GLOBALIZATION

Submitted to:Kurukshetra University,Kurukshetraby

Pallavi Chauhan


2/101

AcknowledgementYou are therefore I am

It brings pleasure to me remembering all the people who contributed towardspreperation of this project ,directly or indirectly.I would try to list all of them one by one

because they deserve a heartfelt appreciation for their contribution.

First of all, I am highly grateful to my parents and my brother who provided me themuch needed courage,moral support and stood by me with their fruitful blessings.

I express a genuine thanks to all my teachers who by their gracious presence helpedme clearing my doubts and believed in me and my project that's why I owe a special

thanks to Miss Aditi (Business environment), Mr. Yogesh Goel(Accounts), Mr.P.K.Seth(Financial management), Mrs. Sonia Chadha( Marketing/Project instructor), Miss

Seema Pandey( Income Tax), Miss Neeru Singla (Sales Force Management) and my

sincere thanks to Dr. Desh Bandhu (Principal, S.D.College) who provided me theopportunity of this one month training as well as preperation of project report.

It would be my ignorance if I don't mention the special support, I received from theteachers of our liabrary department. When all the teachers mentioned above were

focusing on their respective subjects of study, our library teachers, welcomingeveryone to explore more than 50000 books on diverse backgrounds, played the role

of 'Silent Teacher'. I would like to thank all the teachers of library department forproviding me the mental freedom which is the crucial of all, Mr. Balesh, Mr. Jagdish,

Mrs. Rita, Mr. Angrez Singh, Mr. Ramesh Chandra, Mr Harinder Pal, Dr. T.C. Mittal, Mr.

Kulbeer, Mr. Raj kumar Batra, truly no one can neglect their Passion and Dedication atwork.

Also, my special thanks is deserved by my dear friends, who might be called the soleinspiration for me to work on the project like this. There words of encouragement were

the lubricant for my dedicated efforts.

And last but the Most Important Thanks to My best friend- GOD without whom I couldhave never ever reached to all the resources mentioned above.


3/101

INDEX

Chapters Page no.Chapter 1- Why?- The Golden Veil Of Globalization-The Seen And Hidden.............. 4-8

Chapter 2- What is Globalization ?................................................................................9-15

Chapter-3- Globalised US- The 21st century Guy..........................................................16-17-18

Chapter-4 The 21st century guy- what's on its mind?.....................................................19-22

Chapter-5 What's its face?..............................................................................................23-26

Chapter-6 What's its Body?- Economical Needs.............................................................27-57

Chapter-7 What's its body?-Environmental needs...........................................................58-75

Chapter-8 Globalization and Third world.........................................................................76-88

Chapter-9 Another Way....................................................................................................89-99

Bibliograpy...........................................................................................................................100


4/101

Why the The Golden veil of Globalization-the seen and the hidden?

Four words- WANTED to KNOW ,INSTEAD of BELIEVING.

Have you ever felt that there are so many things that we believe in but actuallyknow nothing about and if you look around, it includes a wide range of beliefs

Belief in Ideologies/cultural values

Belief in Governments

Belief in economy

Belief in education

Belief in Products we use/lifestyle

But there is a fundamental difference between BELIEVINGand KNOWING . When you knowsomething you don't have to believe on it but ifyou knownothing about something, you have got no option but to believe on it.We do it daily in our next governemnts,advertisements,education andbusinesses.

So there is no Believe Me- ThisProduct Is Good For Youkind of thing going on

here. Rather it would be interesting to Question.!

You would say it's not always that we believe in thestuff, we do ask for quality checks, investigationreports.. we control it, we are modern citizens. But Iam here saying right onto your face that we don't,yes, we don't question because if we had beenquestioning then this should have never happened-


5/101

If today is a typical day on earth we will lose 116 square miles of our rainforest or

about an acre asecond.we will lose another 72 square miles to encroaching deserts, as

a result of human mismanagement and overpopulation.

We will lose 40 to 100 species, and no one knows whether the number will be 40 or

100. today the human population will increase by 250,000. and today we will add 2700

tons of clorofluorocarbon to the atmosphere and 15 million tons of carbon. Tonight the

earth will be a little hotter, its waters more acidic, and the fabric of Life more

threadbare.

The truth is that many things on which our future health and prosperity depend are in

dire jeopardy:Climate stability, the resilience and productivity of natural systems, the

beauty of the natural world,and biological diversity.

It is worth noting that this is not the work of ignorant people . It is , rather, largely the

result of work by people with BAs ,BSCs, LLBs, MBAs and PHDs.

Elie wiesel made a similar point to the global forum last winter when he said that the

designers and perpetrators of the holocaust were the heirs of Kant & Goethe.in most

respects the Germans were the best educated people on earth, but their education did

not serve as an adequate barrier to barabarity. What was wrong with their values,

concepts rather than human beings, abstarction rather than conciousness, answers

instead of questions, ideology and effeciency rather than conscience.

-DavidOrr

From What Is EducationFor?

(winter 1991)


6/101

was ugly huh!, shockingly true, these are only some of the realities that we arebeing faced today in 21st century.

But have you wondered what makes us to not to question-

IGNORANCE !And we have our own excuses to numb our dragons, the best one is -we havegot no time

I have got to study to get marksor got to go on the job for earning more money.

I have casted my vote and now it's government's job to make policies for meAnd my family.

And thus it's acceptable for us to neglect our responsibilities.

Yet questions similar to these keeps on gripping our minds-

What do Barack Obama, Nicolas Sarkozy,Hu Zintao,Manmohan Singhreally do in those Multilateral Treaties? Why they are unable to createsufficient jobs and income for everyone around the world?

What is this INFLATION and RECESSION? How does it happen that whena stock market crash, I lose my job,food ,oil, health care and how comeproducts' prices go high due to inflation?

Is there any way that I can investigate the manufacturing process ofProducts I use ,daily. Come on ! Advertisements don't show us how theyare made and dumped?


7/101

Seeing smiling advertisements faces numbs all the questions and we areconvinced that, yes world is going to be a better palce if we continue with ourpresent education , jobs and beliefs.

Mathew Taylor of RSA.org, who is one of the modernminds of our century explores the fundamentals of ourbehaviour in society that dates back in history whenfoundation of our perceptions and knowledge ofspheres like Human Atonomy, Reason,Enlightenment, Progress, Secularism And TheCentrality Of Politics- were laid upon. It was the mindsof scholars of that time who gave our society -TheThree Logics.

Science and technology- what is discovered is to be discovered.Markets- what is sold is to be sold.Bureaucracy -Rules.. Rules and New Rules..!

We forget to explore what these values are and what they mean to us?

Do they still work for us? Whether they meet the challenges we face now?

So, we are not yet in the state of denying our modern culture, ideologies- ourrigid structure based upon science and technologies, global markets and ourbureaucracy.We still think that

Science and technology- has discovered a whole lot ofmeaningfulthingsfor man like machines, gadgets what has turned our whole planet into aglobal village and made the work very easyfor everyone and if we wouldbe having any collapse , then the same scientist will find another way out

and save the planet..! - NO BIG DEALMarkets-There are periods of Bull and Bear (recession and boom), it's acycle and as long as we are having our basic amenities satisfied throughbunch of multinational's production. Then there is no problem with thattoo.. ! - NO BIG DEALBureaucracy- Curroption is everywhere, there is no hope for nextMahatma Gandhi. Solution be like them- curropted.

- NO BIG DEAL


8/101

If you are one of those NO BIG DEAL guys then this piece of paper is justanother waste of your precious time.

But, if you want to know rather than believing then come along with me andQUESTION and try to answer them with the help of some of the most advancedminds and concerned souls of our time who'll help us to look at the flipside ofthe golden veil. I have tried to present the whole complicated jargon in such away that it becomes possible from a common man's perspective to look at theBig Hidden Picture !

So, allow me to take you on a journey... journey to know the town we live in.

THE GLOBALIZATION


9/101

What is the GLOBALIZATION?A global business- economic perspectiveIf we look at this phenomena from Charles.W.L.Hill (Hughes M. Blake Professor ofInternational Business at the school of Business, University of Washington) then

so it's that big and making us interdependent on each other? But why there is any need ofglobalization ? Can't we remain self-sustained and isolated entities with our own culture?

Yes, we could and we had been also, till the fall of communism(authority from top to thebottom) in the 1930's. It fuelled the world with unemployment and growing demands so therewas a need of integration at that time and for fulfilling this need different nation'sgovernments' policies swang toward a free market end of economic spectrum. Regulatoryand administrative barriers for doing business in foreign nations had come down, increasingcompitition and facilitating foreign investments. People were free to conduct their domestic

businesses in other countries and expanded globally.

It's a fundamental shift occuring in the world economy. We are moving

rapidly away from a world in which national economies were relatively

self-contained entities,isolated from each other by barriers of cross-border

trade and investment; by distance time-zones, and business systems. And

we are moving toward a world in which barriers to cross border trade and

investments are tumbling; perceived distance is shrinking due to

advances in transportation and telecommunications technology; material

culture is starting to look similar the world over; and national economies

are merging into an inter-dependent global economic system. The process

by which it is occuring is commonly reffered as theglobalization.


10/101

So, the first need of globalization wasgrowing people's demands for more products on cheap ratesand governemnts had to develop a system through which they could facilitate suchtransactions , so they invented international monetary system (for establishing values ofdifferent nation's currencies) ,foreign exchange market (where they conducted there

international trade transactions) and association bodies like IMF- international monetary fundand World Bank, first one to maintain order in international monetary system and the secondone to promote general economic development.

Individual businesses bacame international businessesusing this system and sinceeverything was getting Globalized so there was a need to develop a work force who will runthe system and upkeep it which laid the foundation of ourfactory education system. Peoplewere given choices to choose a particular field from a range of spheres of this system-

Science and technologyBusiness operations

HumanitiesReligion etc.

Studying in that system would enable them in entering into this Globalsystem, where theycould earn their salary in money and could get the things they wanted to have and thus theirdemands were fulfilled.

It's the people who created a need for it by demanding more and more products andservices with less possible effort on their part.!

But the words Global, Economic system may be confusing.

That's what I thought about those textbooks definitions,well we will explain each technicalpart of this picture, later in this presentation, in an easy and interesting way.

But before that it would be nice to see how we are immersed into globalization, in our dailylives?


11/101

What is Globalisation?Daily life perspective

In this global economy, an American might drive to work in a car designed in Germany thatwas assembled in Mexico by DaimlerChrysler from components made in the United Satesand Japan that were fabricated in Korean steel and Malaysian Rubber.

She may have filled the car with Gasoline at a service station owned by a British multinationalcompany that changed its name from British Petroleum to BP to hide its national origins. TheGasoline could have been made from oil pumped out of well off the coast of Africa by aFrench oil company that it transported it to the United states in a ship owned by a Greekshipping line.

While driving to work, the American might talk to her stockbroker on a Nokia cell phone thatwas designed in Finland and assembled in Texas using chip sets produced in Taiwan thatwere designed by Indian engineers working at a firm in San diego,California,calledQualcomm. She could tell the stockbroker to purchase shares in Duetsche Telekom, aGerman telecommunications firm transformed from a former state-owned monopoly into aglobal company by an energetic Israeli CEO.


12/101

She may turn on the car radio, which was made in Malaysia by a Japanese firm, to hear apopular hip-hop song composed by a Swede and sung by a group of Danes in English whosigned a record contract with a French music company to promote their record in America.The driver might pull into a drive-through coffee stall run by a Korean immigrant and ordersingle-tall-non-fat latte and choclate-covered biscotti. The coffee beans come from Brazil

and the choclate from Peru, while the biscotti was made locally using an old Italian recipe.After the song ends, a news announcer might inform the American listener that anti-globalization protests at a meeting of heads of statein Geanoa,Italy, have turned violent.theannouncer then turns to the next item, a story about how an economic slowdown in Americahas sent Japan's Nikkei stock market index to 16-year lows.

This is the world we live in. It is a world where the volume of goods and services,andinvestments crossing national borders has expanded faster than world output every year forthe past two decades.it is a world where the symbols of material and polular culture areincreasingly global: from Coca-Cola and McDonald's to Sony PlayStations,Nokia cell phones,MTV shows, and Disney films. It is a world where products are made from inputs that comefrom all over the world. It is a world in which an economic crisis in Asia can cause a recessionin the united states, and a slowdown in the United States really did help drive Japan's Nikkeiindex in 2001 to lows not seen since 1985. it is alos a world in which a vigorous and vocalminority is protesting against globalization,which they blame for a list of ills, fromunemployment in developed nations to environmental degradation and the Americanization ofpopular culture. And yes these protests have really turned voilent.

From the above example you can relate yourself with the globalization in the form of productsand services you receive from it directly and indirectly.

So, if you have a relation with this system then it is imperative that it must beeffecting/affecting you also,that's the answer of your second question that you are connectedwith globalization clearly on every level ,for every product and service ,for all your needs.


13/101

hmm, I got the basics of whole game of globalization -

Our needs are satisfied by governments through businesses who again producesproducts not only in their country but with the help of raw materials and servicesaround the globe- globalised products- Globalization.

Through this game of globalization,there is an easy availability of goods and services, worldwide for ALL who participate in it, I get McAloo tikki at 25 Rs. Only,MTV in rural areas, Sonyplaystation ,Levi's jeans next to Khadistore, all my basic food items ALL SO EASILY and ATCHEAP RATES !


14/101

What's wrong?

Isn't that good? You were going to say something about theglitch part in it, what's wrong with this system?

This is all what seems, the seen part of Globalization, what wesee in advertisements, government's development programs.We believe in its credibility and we enter into this system throughour education, we set up businesses or opt for some job,we usethe economic system- brought to us by our governments, viadifferent policies about 'just' use of human and natural resource.

thus we are dependent on three things hereEducation, then Businesses and lastly governments.


15/101

Before I explain the glitch at each level, I want to ask you when will you deny the existenceand credibility of this system at educational => businesses=>governemnetal level ?Tell me, when will you say that It Is No More Working?

let me think-About Education - when our studies are not useful for us in real time then - It Is No MoreWorking.

About Businesses- if they are no more providing the solutions we need,doesn't support R&Dand fulfill only their profit objectives, then, - It Is No More Working.

And Governments- are not providing equal and just lifestyle to each and every group thatparticipate in globalization, then for me - It Is No More Working.

To sum it all up--

OurEducation system- why it is notuseful in our real life? Causing huge amountof unemployed graduates?

OurBusinesses-Apart from providing goods and services , what's wrong withtheir inside and outside workings? Causing Recesion and Inflation over and overagain?

OurGovernemnts- What's wrong with their objectives? How do they implement

their wills?

By all of above how I am affecting the Mother nature? What's my environmentalresponsibility?And lastly,

What's Hidden in Globalization?


16/101

GLOBALISED US

The seen

A 21st century kid, adored with funky outfit- looks cool ! :)


17/101

Globalised US

The hidden X-Ray

This is the X Ray of 21st century Guy- who is everywhere-Globalised,let's know somethingabout him,

He has got his Pinky lifestyle on top of his mind, what he affords from jobs and products-which are brought to him by businesses. He has been made blinded by this daily lifestyle !

The face of jobs -product-business lifestyle has its veins to money -it's heart, facilitated bygreedy banks,(which has made him Fat) and are supported (belt) by ever changingGOVERNMENTS and weak arms Stock Markets and Foreign Exchange Market .

It has got weak legs (foundation) but Strong shoes what he uses to Crush ourNATURAL

AND HUMAN RESOURCE.

Does it look cool? Chaos to the 21st century Guy..!


18/101

You want to know how it comes to be like this?What's on its mind?- Holy-factory-education systemwithSeetha Ananthasivan who is thedirector of Prakriya Green WisdomSchool and Bhoomi Network,Editorof Eternal Bhoomi Magazine.

What's its face?-Consumer-EmployeeThe educated product from schools enters into job and businesses,it produce as wellas consume the products,is that all?

What's its body?-Businesses and governmentsAfter moving from the educated employee and consumer, let us explore more about howbusinesses and governments work?

in this part, Economical needs are exposed by Jane D'Arista

who is a research associate with the Political EconomyResearch Institute (PERI), University of Massachusetts,Amherst.For more than thirty years, Jane D'Arista has been oneof the most insightful analysts of financial markets andregulation.

And Environmental needs are exposed by Annie leonardAnnie Leonard is an American proponent of sustainability and critic ofexcessive consumerism.Leonard is best known as the creatorand narrator of the animated documentary about the life-cycleof material goods,The Story of Stuff.


19/101

What's on its mind?

Who would deny that our thoughts are our actions, the most responsible thing for today'sactions is education- but is it as modern as we proclaim our lifestyle?

It's a Holy-factory-education system-Seetha Ananthasivan, who is the director ofPrakriya Green Wisdom School and BhoomiNetwork,Editor of Eternal Bhoomi Magazinedigs the whole educational scenario atdeeper unconscious levels ,

She questions-Educational planners designs content for various courses- but do we take into account thepower of what children learn unconciously?Most students and Most of us hold some or all these notions and beliefs subconciously asa kind of template for the way we live life:

A narrow, short term definition of success A self seeking way of life as legitimate

Means are not as important as ends A good life is a life of high consumption and minimum physical labor Think within a boundary- not of the whole Put up with a split inner world Accept authority figures unquestioningly


20/101

These are a few of the meta frame works for our living today there must be more and theyhave their inner and outer ecological consequences. Taken together they can keep usdead locked in illusion and conditioning that makes it easy for us to go into denial or withdrawinto business as usual when confronted with huge and complex crisis like climate change.

Perhaps understanding them will help us awaken to the importance of adding new

dimensions to education- especially of fostering the ecological self within and engaging inecological wise ways without.

A narrow definition of success-

For ten to fifteen years in school and college, life revolvesaround tests, exams and marks. Marks determinessuccess in school life and money determines success inlater life.

This narrow definition of success is an essential part of

the prevalent development paradigm- but it has led to animpoverishment in many other spheres, those ofartisticsensibility, holistic thinking and spiritual search.

It has effectively blinded us to the civilization. Most importantly following the western modeldetermined by Macaulay,Descrates, Newton and Bacon. This narrow definition of success hascompletely undervalue the ecological widom of our culture, which could have provided themodel not only for education but also foe sustainibility.

Selfishness is legitimate- allowed

Through out the years of formal education, a student is used to bothering his books, hisasignments, his tests, etc. never before in any age, have children and youth been sothoroughly groomed to be consumeristic and immersed in self-interest. Without opportunitiesto learn co-operation , since it is not required for school tasks- children get the implicitmessage that selfishness is fine as a way of life.

As einstein said

This crippling of individuals I consider the worstevil of capitalism- our whole educational systemsuffers from this evil: an exaggeratedcompetitive attitude is inculcated into thestudent, who is trained to worship acquisitivesuccess as a preparation for his future career.


21/101

Means are not as important as ends-Parents and teachers encourage rote learning and tutions as the means to score high marksin exams without the understanding of or interest in,what is learnt.A student may opt for amedical seat if she can't get in to the engineering without worrying about whether she isinterested in healing or caring for other's health, the lucrative career the end is all that

matter.Innumerable examples exist of unethical behaviour they may have co-evolved with ourfactories governments and malls, but aren't they fostered by education?

A good life is a life of high consumption and a minimum physical work-

At school , children spend almost all their time inbook related leasrning. In mainstream schools,doing physical work as a part of learning is unheard

of. Very little part is allocated for experimentallearning or even for games or sports,.

Children in many homes in cities today are rarelyrequired to do any physical work in the house- eitherbecause parents wants the child to focus on studiesand spare the child such distractions. Thehangover of our caste system perhaps plays a partas well in looking down on physical work.

The TV and movies shows celebrity promoting a

high consumption life-style, subtly encouragingeveryone of us to consume as much as we can.

Children pick up dreams of good life which makes it difficult for them to comprehend the needto think in fresh and natural ways, to critique the system and create new visions forsustainability.

Think within a boundary- not of the wholeWear blinkers, follow instructions. Do not question, be agood soldier- don't think for yourself. See connections onlyselectively do not see long term connections or connections

that are many links away. These are the messages thatchildren pick up unconsciously in school when they have tofocus on a subject without given a choice and lessons foa aday, a day after day for 10-18 years of their life.

Schools and colleges have designed syllabi, which arecontent heavy. The unintended consequence is thatther is nofocus on critical thinking and taking initiative for as larger


22/101

cause even if a few try to see the larger picture, most of us have forgotten to respond to reallife- issues all around us. Wearing blinkers also means that we don't think for whole school,the whole community or the whole earth- often not even for the whole family.

Put up with a split inner world

The school system and parents wants all children tolearn same subjects without considering the child'stalent and innate interests.from years of tolerating workwhich we do not value or like , we learn to live with an unresolved lack of alignment in our thought, feelin ga nadaction. This split spills over into many things in life. I mayhave no interest or enthusiasm for my work, bit willpersuit in it without looking for alternatives. I mayunderstand my child love for music, but may push her

into more science tuitionsinstead and deny her musicclasses. This ability to live with a split inner world. Thepathology within- is reflected in the world outsidethat wehave created.

Unquestioning acceptance of authority-

The class seating system seems designed to hardover power to the authority figure and to makechildren submit to the system, when the school

system is almost universally accepted, it'sfundamentals are not questioned.

Our centralised authoritarian system may possiblywish good education for all, but it simply kills initiativeand the ability to question and hence we look for top-down solutions to all problems.

Therfore hopefully we can also search for ways in which education can stem the tide. Manyeducational thinkers believe this is needed and possible to introduce new paradigms ineducation and most importantly make it such comprehensive that it is valued for the ends it is

used for.

Now all what further Generates from it ,is in its mind..!!


23/101

What's it's Face?

He is the one who is the target from both sides, he is the consumer, he is the employee too.Consumer-He is the one who is blinded and distracted. How?Every week a new product is designed by businessesand their need is fed upon our minds with the tons ofAdvertisements-

Hey ! You suck- Buy this and Rock..!

We watch 153 hours of Television and 10,000advertisements a month..!and all this is thrown to us so secretly that we would not ever know that most toxic food todayis not in the countries like Somalia- but it's human breast milk.

More than 500 products sold in the U.S. contain ingredients banned in cosmetics in Japan,Canada or the European Union.

Nearly 100 products contain ingredients considered unsafe by the International FragranceAssociation.

A wide range of nanomaterials whose safety is in question may be common in personal careproducts.

22% of all personal care products may be contaminated with the cancer-causing impurity 1,4-dioxane, including many childrens products.

60% of sunscreens contain the potential hormone disruptor oxybenzone that readily penetratesthe skin and contaminates the bodies of 97% of Americans.

61% of tested lipstick brands contain residues of lead.


24/101

Employee-

He is the one ,who is told by his education to abide by therules of Game, don't question- work harder ,earn more moneyso that you can afford the American Dream and then You willbe happy.

He is the one who enjoys McDonalds culture without getting asound that farmers who produce the raw matrial for thecompany are commiting suicides at an alarming rate due todebt burden and hunger.!and even after abiding the rules of the game, he is the one,who is the victim of INFLATIONand RECESSION having no job and money's value-security when he hits by Financial crisisand Stock market crashes..!

But some may argue that not all the businesses are bad, there are lots of good businessesalso but question is not whether your business is bad or their business is bad. That's a

different issue.All I am telling you is that these things are happening..

-two lakh farmers are committing suicides in third world countries while Mcdonald is earningmore than $22.8 Billion in revenues.

-Despite using all those Natural and Pure cosmetics and food items- human breast milk isthe most toxic.

-INFLATION and RECESSION is still there and may hit us any minute.!

And how come is this happening?By our present system of Education, Businesses and Governments- the products we eitherdemand or being imposed with Take Care slogan..!when we enter into jobs for earning more money even knowing that recession may take allthat from us- we are dreaming the same thing, doing the same thing and when they takeaway everything then we complain the SYSTEM- not knowing what are the Problems in thissystem that we accept so dearly ?


25/101

I want to ask you-how can it is possible to even move towards solutions without knowing that problem is us?-our own Face!

How we have acquired such ugliness? Who has supported it?It's indeed the body and clothes of it- Businesses and Governments are bodies and economyis their clothes.

What's its body ?how businesses are possible to give us such a ugly face? Here we will see what dobusinesses need to work?

Businesses needs-

Businesses need two most important things to get themselves movingFirst is Money -Economical need

let us flip the picture to know thefirst need -Money !

Money comes from Governmentsmove to banks andhas its value at Foreign exchangemarket and Stock markets .

Second is Raw material forProduction and Human labor-Environmental need.

Governments own the naturalresources, it makes the policies for

businesses about how would theyuse country's natural and humanresource.

This relation joins us-the people to businesses and governments, it makes for us anecessity to watch news ,the next budget, stock market situation.


26/101

but why I need to know about Banks ,Stock markets and Foreign exchange ,Natural andHuman Resources blah, blah.. ?

Because they are giving you Freaky Haircuts and you don't know what's wrong with them?

To get the answer for-

Q- How come the products and services you buy go highly expensive with the one word innews- INFLATION ?

Q- You lose your job and your Boss go out of capital (bankrupt) with one word in news-RECESSION ?

Q-To suspect that the money towards you are lured 24/7 , can be the cause of abovetwo,when the regulators of money- Banks and Governments fail or simply Lie to People ?

Q- To know what lies in your cosmetics and food, how they are processed and dumped?

that's why you need to know how businesses work , how do they fulfill their both economicaland environmental needs so that people can have products and lifestyle or have recessionand inflation, environment degradation on other side.


27/101

What's its body? -Economical needs

Q-What is Money?

Q-What is Money, Governments and banks?

Q-What is the relation between money and businesses? from banks ,stock market and foreignexchange market (FOREX)?

, you will get on your own the connection of

1. INFLATION ==== Money,Governments and Banks2. RECESSION=== Money and Businesses

What is Money?As the good that makes exchange possible, it's thefoundation of every economic activity. In the earliest times,people traded goods and services directly. This form ofexchange is known as "barter."

But barter had limitations in the marketplace.People perceived pretty quickly problems with that directexchange: if you wanted, for example, fish and you hadwheat, but the people who had fish didn't desire the wheat,you were stuck. Unless you went out and found some othergood, possibly berries, that everyone in that societyconsumed. Then you would trade the wheat for the berriesin full confidence that you could turn around and trade theberries for the fish or anything else you desired.

Eventually, the most widely accepted goods in a society became valued for their use inindirect exchange. Money is simply another name for the most generally accepted medium ofexchange.


28/101

'Money is simply another name for the most generally accepted medium of exchange.'

AmericaYou might think back, we can think back to a time

when iron was used as money, for example inAfrica, but imagine going into the Sears-Roebuckand trying to purchase, say, a lawnmower for$350. That would take a ton of iron, whereas itonly takes an ounce of gold.

Origin of coins and paper money (notes)-In 1536, less than fifty years after ChristopherColumbus set foot on the American soil, aSpanish mint in Mexico City struck the first coins made in the New world. These silver coinseventually found their way into the British Colonies. Great Britain's mercantilist policies

deliberately tried to keep precious metals out of America, so the Spanish milled dollar becamethe unofficial currency. It was often divided into eight pieces for smaller transactions, hencethe term "pieces of eight," with 1/4 of the coin being "two bits."

In 1792, Thomas Jefferson adopted the dollaras this country's official monetary unit.He looked around. He investigated to see what the American people were using, and that wasthe dollar.

So that's why the dollar became the standard in the United States. And we went onto a goldand silver standard, and started minting gold coins with the American eagle, a $10 gold coin.

Through our history, many goodshave served as money. Feathers fromthe Quetzal birds were used for

exchange by the Mayan Indians up tothe 15th century in Central America.Tealeaves compressed into brickswere traded in East Asia through the1800s. Wampum shells were moneyto North American Indians, whileearly American colonists tradedbeaver pelts, which had a high valueboth at home and abroad. Metalcoins first emerged in Greece and

Asia Minor during the 7th century BC.Gold and silver were valued for theiruse in beauty and jewelry and thedecorative arts. They were durable,easily divisible, and limited insupply. These precious metals alsohad a high value-to-weight ratio,making them easily transportable.


29/101

What is Money-(gold) & Banks?

The Gold standard ?As early as the 16th century in Europe, goldsmithsstored gold coins for their customers for a fee and

issued receipts for the gold to the depositor. Thusbegan the use of paper as money.

In other words, if you came in and deposited 10ounces of gold for safekeeping, you got back receiptsin the amount of 10 gold ounces and those receiptsentitled you to instantaneously redeem that gold.

thus,there was an implication,when people exchanged thosereceipts with each other, any one of them could go to thegoldsmith and could got their valuable gold- genuine scenario

of money to gold conversion- termed safekeeping.

But it was assumed that there are equal amount of moneynotes moving in economy as the value of gold is stored withbankers.So ,These first bankers then took that process one stepfurther.

The origin of Inflation -when bankers started printing money-

In effect, if the goldsmith had 1,000 ounces of gold

and 1,000 ounces of legitimate receipts being held bythe depositor of that gold, he could increase hisprofits by merely printing another thousand ouncesworth of receipts, and lending them out. In whichcase he would effectively get fifty-percent reservebanking, orfractional reserve banking. Only afraction 50% of the receipts were now backedby gold.

There was no longer a one-to-one ratio of paper togold. Now there could be three or four pieces of

paper in circulation for every unit of gold in the vault. These bankers were no longer simplystoring or warehousing gold for a fee, they were artificiallyinflating the money supplyand loaning out these phony receipts at interest. This system became known as "fractionalreserve banking" and was later transported to the early American colonies. It formed theroot of the American commercial banking and ultimately the Federal Reserve System.

what is Inflation? (Here regardinggold-Standard)In it's most traditional meaning,

When people had more moneybut less gold to convert it, thenthere is inflation, it is also calledinflationary money because itdoesn't fulfil bankers' promise toconvert it into gold.

Gold to moneyThese receipts soon

became widely acceptedas means of exchange,since it was easier andsafer to use the receiptsfor significanttransactions. This wasthe origin of banknotesas money substitutes.


30/101

Isn't it fraud with people's gold and illegal?This is a fraudulent system, it's not allowed in any other business. If you had a grain warehouse that hadloaned out the grain it was supposed to have in storage, that's considered criminal, and the guy would go

to jail. But the banks are the one industry that's allowed to get away with this and to profit fromit.

It's Legal !!!Government startedprinting money- whatis a Federal ReserveSystem?

Moving from Goldsmiths to BIGbanks, Foundation Of FederalReserve Bank-Alexander Hamilton became the

first treasury secretary and in 1791set up the first Bank of the UnitedStates as America's central bankto expand the supply of papermoney for the benefit of the government and the commercial banks, thus officially inflating themoney via fractional reserve system.

From Federal Reserve System to Present Federal Reserve Bank:

There are twelve regional reserve banks concentrated in the East and in the Midwest. Theboard of governors of the Federal Reserve controls and coordinates their activities. The boardis made up of seven members appointed by the president.

It appeared to be a sound system,but the control of Fed's open market committee was in thehand of Morgan protg Benjamin Strong.

In 1908, the National Monetary Commission headed by John D. Rockefeller Jr'sfather-in-law, Senator Nelson Aldrich was set up to push for a central bank.In November of 1910, under the guise of a duck-hunting trip, six men took a secrettrain ride to an exclusive private club on Jekyll Island, Georgia, to write a CentralBanking Act. The classified gathering read like a who's who of American banking.There were two Rockefeller men: Aldrich and Frank Vanderlip of the National CityBank of New York; two Morgan men: Henry P. Davison from Morgan Bank and CharlesD. Norton, president of Morgan's First National Bank of New York; Paul Walberg, aKuhn-Loeb partner; and Assistant Treasury Secretary A.P. Andrew, who was friendly toboth camps. They spent a week at the luxurious club as Morgan's guests, crafting theproposal that would form the basis of the Federal Reserve System. It would be three

years before their vision was realized.


31/101

How do they regulate these different banks? What are there powers?

First power of FED- They continued with the power of printing more money, in the face ofThe Federal Open Market Committee-

What was the The Federal Open Market Committee? What do they do?

The Federal Open Market Committee, now based in Washington, directs the Fed's mostimportant instrument of monetary policy: the purchase and sale ofgovernment securities onthe open market. To increase the supply of money and credit, that is "to inflate," the Fed buysgovernment securities from a few handpicked firms with newly created money. To tightenmoney and credit, the Fed sells securities. In this, it can act on its own discretion.From buying government securities which is also called quantitative easing, it has followingpowers too!

Second power of FED-Another device the Fed uses to control the amount of

money in circulation is setting the discount rate: this is theinterest rate charged to member banks when they borrowshort term from the so-called "discount window." If the Fedlowers the discount rate for its loans, commercial bankswill likely borrow more from the Fed. This increases theamount of funds banks have to lend. Bank credit thusbecomes cheaper, as reflected in lower interest rates onbank loans and credit cards. The increase in fundsavailable for banks to lend also increases the amount ofmoney in the economy.

Third power of FED-and The Fed can also manipulate the nation's moneysupply by raising or lowering the reserve requirement.Because Banks are required to set aside a percentage oftheir deposits as reserves to meet depositors'demands(it's just a percentage- not the whole ofdepositor's money, as in 100% gold standard happens).

okay, till now we have learnt about the

history of money,

what is the gold standard? Which was the first government-established-bank?

And how today's most important country's (United states) apex bank The FederalReserve bank came into existence?

What are it's powers?

When the Fed was establishedin 1913, it cut reserverequirements in half over the

next four years, doubling themoney supply by the end ofWorld War I.

Although the US was still on thegold standard in 1913, it wasquickly eroded as the Fedcontinued to expand the moneysupply. The first step wasbacking Federal Reserve notesby only 40% in gold, allowing

the money supply to beincreased two and a half times.The inflationary effect tofractional reserve banking wasalso heightened by the centralbank.Inside faulty governments,faulty banks, faulty loans andcredit cards-


32/101

That all sounds so regulated, everything seems to be fine till now, they are creating money,regulating it to banks and then to people they are even managing the money supply then whatis wrong with it?

Don't Look here

All that Glitters is not GOLD-From Powers to Disasters

Power to Disaster 1- INFLATION

they can print more money,any time, without backing it by gold, such a money is furthermultiplied into checkbook and Credit card money-all these printed notes, checkbooks andcredit cards are available to people as money in the market and there is overflowing ofmoney but no sufficient goods- results =more buyers less products= high prices of lessproducts= also called INFLATION.

"The Federal Reserve System virtually controls thenation's monetary system, yet it is accountable to no one.It has no budget; it is subject to no audit; and no

Congressional Committee knows of, or can trulysupervise, its operations."

These are the words of the lateprofessor Murray N. Rothbard,economist and academic advisor of theLudwig von Mises Institute .Theinstitute is dedicated to the ideals of afree market and sound money.


33/101

From Power to Disaster 2- Interest rates

It handles the interest rates of those banks by whom people take loans and credit cards,suppose when government had excess printed money with it, it had lowered the interest ratesso that more banks could borrow it and banks provided it further in lower interest rates- loans

to people like you and me and even governments.We were so happy to get lower interestloans by HSBC or CITIBANK, ICICI, but all of sudden there is a panic in the market that notesor treasuries that government is selling are not backed by gold. They are creating money outof thin air then there is no value of dollar- government is in high Debt (by all the loans it gaveto banks and to people through banks) then what it will do?To get back on its feet it will increase the interest rates of its loans ,which would meant bankswill have to pay more interset to central banks what banks would get out of increasing theinterest rates of people's loans- burden on People who were enjoying their cheap credit.

From Power to Disaster 3-Lowering the reserve requirement

when people deposit their money in banks, Banks are required to set aside a percentage oftheir deposits as reserves to meet depositors' demands, but it is entirely in central bank'shand to decide what percentage will be there in deposits?As we all know, not 100% gold nor equivalent deposits are always there in banks safe ,fromthe deposits they have with them and the money they lend -loans are always greater thandeposits,so , the Central banks can always lower the reserve requirement for banks andincrease the cheap credit-what causes INFLATION.

Why would they want to increase the cheap credit?For two reasons- either they themselves wants to take cheap credit -for any benefit- fromfinancing wars to help a falling compnay save (also called bailout).Or they want to maintain the demand of dollars in world.

Why do they want to maintain the demand of dollars in the world?So that people keep buying it from their savings and the status-quo of dollar is maintainedand they can further print more dollars reasoning that people are demanding it-while indisguise they are financing their wars, earning profits in each step.

But why do all the people around the world keep on demanding USdollar? Why it is so important? Even knowing that central bankscan print the US dollar out of thin air and nobody puts a check onit, in that case their US dollars will lose all their value,what's theneed?


34/101

That's the discussion on another topic-Why US dollar is so important? Can USDollar collapse?

For understanding this, we need to listen

Jane D'aristawho is Jane D'arista?

Jane D'Arista is a research associate with thePolitical Economy Research Institute (PERI),University of Massachusetts, Amherst whereshe also co-founded an EconomistsCommittee for Financial Reform called SAFER,i.e. stable, accountable, efficient & fair reform.(http://www.peri.umass.edu/safer/).

She is also a research associate at the Economic Policy Institute. Jane served as a staffeconomist for the Banking and Commerce Committees of the U.S. House of Representatives,as a principal analyst in the international division of the Congressional Budget Office.Representing Americans for Financial Reform, Jane has currently given Congressionaltestimony at financial services hearings. Jane has lectured at the Boston University School ofLaw, the University of Massachusetts at Amherst, the University of Utah and the New SchoolUniversity and writes and lectures internationally. Her publications includeThe Evolution ofU.S. Finance a two-volume history of U.S. monetary policy and financial regulation.

Here is what she has to say about US dollar- the Key currency of World Trade


35/101

from this statement we can derive that how bubble created by printing backless money whengoes on as Cheap Credit from banks to governments to people, if burst-cause a world-wideshrinkage in Credit in other words- the financial and economic collapses.I know it's complicated,because your question is-

But why do all the people around the world keep on demanding US dollar? Why it is soimportant? Even knowing that central banks can print the US dollar out of thin air and nobodyputs a check on it, in that case their US dollars will lose all their value,what's the need?

See by yourself in the coversation with her-

What's the relation of US dollar-a key currency and Other currencies?

As we all know that before the federal reserve system there was a system of converting goldinto valuable money and to further use that most accepted currency as trading means. So

every country converted their found gold into their currency and there were so many of themnow like pounds of Britain, Euro of Euro zone,Yen of Japan. Then there was another problem-how to trade internationally? What should be the key currency?

Then the United states stepped in and introduced the international monetray system of semigold-inflation ,after the world war-II, which is still here in 2011.

Authorised-key currency-US dollar

What is the semi-gold inflation system?

Under this system, US dollar was made (authorised) to be the only currency in the world in

which trade can be done by each country on earth.which has made it the all important ofall, now if any business man wants to buy anything out of his own country- which most of theglobalised businesses do usually, they had to convert their currency into US dollars from theircountry's Central bank which made it essential for the government of that business man tohold US dollars in its foreign currency reserve so that it can convert them according to thebusiness needs of its people.

How it was done?

By authorising US dollar be the only currency , convertible into gold by the Federal reservebank ,United states .The rate fixed for dollar to gold conversion was $35=1 ounce(approx 28grams) of gold.

Now, if any country is willing to do international trade with its neighbor,it would have to earnUS dollars and made its foreign currency reserves in US dollars because it was the onlycurrency convertible in gold by the onlybank The Fedral reserve bank.


36/101

And what was the way to earn that only currency?

Two ways are there-

Either EXPORT your goods to US or simply BORROW U.S. DOLLARS by purchasing it'sGovernments treasuries.

US has been benifitting in both ways as, all the countries started exporting their goods to it-there is no shortage of cheap goods (why cheap?- later) inside US.

And governments started demanding US dollars by borrowing it through US treasuries(loans),what increased its value in open market(foreign exchange market) where value is determinedby Demand of a currency,

Also to serve that debt they had to earn more US dollars- two ways again- Take more debt toservice previous debt or export the goods!

It's a vicious circle.it permanently created the demand for US dollars and made it mostimportant currency.

So, it is the lifeline of all the global businesses who provide people jobs all around the worldfurther providing products to each and every person- globally.

That's why Us Dollar is so important.!

So the BIG question is

Can dollar collapse? What will happen if it will collapse?

Yes, it can collapse if they- who create it, fail to convert it into gold, it will lose all its value.


37/101

How is it possible?Did it ever collapsed? Whathappened when it collapsed?

In 1930- the era of GREAT DEPRESSION,

dollar collapsed, in 1971,it collapsed againwhen they failed to convert all the US dollarsaround the world into gold since there wasn'tenough gold for conversion as it was movingaround in the market ,caused inflation.

Why there were extra US dollars moving into market?

Because people were demanding it (key currency)and it was in the hands of Federal reservesystem to print money.People were totally dependent on their credibility that there is enoughgold to support that currency they are going to print, but the bankers fooled the people, this

time the whole world with US dollars in their hands, was hit badly.

In 1971, President Richard Nixxon closed the window of converting US dollars into gold,cozthey simply ran out of Gold.

What was the after effect of it?

As Nixxon denied the payment system, he handed the monetarysystem into the hands of private banks-like we see today,CITIBANK,HSBC etc.and they started speculating-done forearning profits, about the values of different currencies- includingUS dollar,

causing the collapse in the dollar value in 1970's when PaulAolph Volcker( Federal Banker and Economist) rushed in andincresed the interest rates of all the US dollar debts- GIVEN toother countries up to 20%, to earn more US dollars (FED used itspower to Disaster-2)- to serve it's own debts or public debts.


38/101

So the after effect of it was-

People lost all the value of their investments, savings ,stocks that were in US dollars.

Investments ,savings and stock capital is

the lifeline of all the businesses aroundthe world so when businesses lost theirmoney value, they could no longer buythe raw material nor pay the wages to itslabor- people lost jobs- there was aacute shortage of products- inflationskyrocketed.

Countries who were made to take laonsin US dollars by the IMF(InternationalMonetary Fund) had to pay back it inincreased interest rates( from 1 or 2 %-20 %)

Throwing them into hell further- nowthey had to earn more US dollars- eitherby exports or taking more US loan.

What happened inside those countriesthat had taken loan?-suck your naturalresources -make products and export sothat you can earn those dollars to payback the high interest loan.

Okay, so what I do get is that- US currency has been made the Main( Key )currency for doingworld trade which creates the demand of it, but all didn't went well with it, when it didn't serveit's promise to be convertible into gold- resulting tons ofinflationary money invested in funds,worlwide- went valueless-causing Recessions, and hit the whole world-simply becausepeople were holding US dollars in their hands,everywhere- Thanks to the Key currency-system.

Exactly.!

What does the dollar devaluation orcollapse mean to you?

the devaluation of the U.S. dollarmeans a decline in the purchasingpower of the dollar, which leads to adecline in living standards. Forexample, if the US dollar declines 40%and you had a million US dollars, themillion dollars will only buy

$600,000.00 worth of goods andservices. You would have lost$400,000.00 in purchasing power.

Any type of investment in dollars, suchas saving accounts, saving bonds,annuities, pensions, etc., will sufferfrom this decline.


39/101

Then why don't they scarp it? Are US people benefitted by this system?They might thought so, when they implemented this US as key currency system, thinking thatthe whole world will start exporting goods to it- which would make products cheap in US andUS people without producing anything will enjoy cheap products.!

Then has it been so?No, not exactly, but entirely opposite of it has happened because of two things-1) People inside the US were being told to buy only, that is not to produce- why?.2)To buy products, they were not given increased wages, but cheap credit- why?.Now the mystery lies in two statements thatwhy they had been told to buy onlyand that is too not by wages but by cheap credit?

Why -BUY only?

It dates back in history when National Association of Manufacturers(Ohio,US), complained:

You've(FED) driven up the value of the dollar to a point where we can sell nothing abroadand we can't sell anything in our own country-due to excessive cheap exports to US. They

tried to bring down the value of the dollar toward the middle of the 1980s, but not sufficiently.And there was no real response., dollar had been made overpriced (for the reasons we'lldiscover later)

so, what US manufacturers did?,They moved to the countries where therewas cheap currency and cheap labor andstarted manufacturing things in foreigncountries because dollar in the unitedstates was too high driving their costs high,cheap country would mean cheap costs

and they could now come back in US andsell those goods on competitive rates toearn larger profits.

But that was not all, due to businessesmoving out of country,people didn't have

jobs with them, lacking money to buy thosegoods that were offered to them,by exportsand their own manufactures.


40/101

There was no demand of goods, causing no demand of US dollar in open market, whichwould mean the collapse of US dollar and economy.

Take Cheap credit-

So the US governmnet played its move and provided people cheap credit - and they can keepbuying the products and dollar remain in its value , countries keep on exporting goods, thereis no shortage of good quality products in US and there is a demand of US dollar in Market .How did they provide cheap credit?

It printed money- lent it on less rates to banks, banks lent it further more on less rates bycheckbook money and credit cards- causing boom in initial years when US people boughtrapidly the exported goods,


41/101

but soon after hitting the news that government is in great debt (debt means no backedcurreny or gold is there with the government-all printed notes are now debt) people-moneylost its value, they could no longer buy products with it, all the attraction of trade with USfaded away and there was a Financial crisis(2008-09) and Recession inside the Country and

outside the country.

Fiat Money- Quantitative easing- the hollow attraction of US dollar-quick recap>>>Previously, Dollar was the only key currency which was convertible into gold but when Nixxonscrapped this system in 1971, then there was no demand of US dollar causing greatdepression within US,and then US made its people rich (by providing cheap credit) which attracted trade to US,causing demand of US dollar again in the market.But this was crashed again with the financial crisis of 2008-09.

now the US has been tackling with this problem, governments are investing in othercountries,trading with their citzens by buying their currencies- US is not the only player now.To move out from the deflation- recession what do they do now?

What is Fiat Currency?

Currency that a government has declared to be legal tender, despite the fact that it has nointrinsic value and is not backed by reserves. Historically, most currencies were based onphysical commodities such as gold or silver, but fiat money is based solely on faith.

Most of the world's paper money is fiat money. Because fiat money is not linked to physicalreserves, it risks becoming worthless due to hyperinflation. If people lose faith in a nation'spaper currency, the money will no longer hold any value.


42/101

Money thus produced out of faith is used for Quantitaive easing,

what is it?Quantitative" refers to the fact that a specific quantity of money is being created;"easing" refers to reducing the pressure on banks.

So, what really happens in quantitative easing, governments print more money, out of thin air,

then they either take debt from banks or pension funds companies- increasing its debt.

make it highly valued by showing its economy profitable which creates demand of currency(dollar or any), now people buy it, they use it in the way of doing trade with that country. Easysupply of goods and services is maintained with in the country- globalization maintained!

Concept of Quantitative easing-

Ordinarily, the central bank uses its control ofinterest rates, or sometimes reserverequirements,to indirectly influence the supply of money.In some situations, suchas very low inflation ordeflation, setting a low interest rate is not enough tomaintain an adequate money supply, and so quantitative easing is employed tofurther boost the amount of money in the financial system.This is often considereda "last resort" to increase the money supply.The first step is for the bank to createmore money ex nihilo (out of nothing") by crediting its own account. It can then usethese funds to buy investments like Government bonds from financial firms such asbanks, insurance companies and pension funds,in a process known as "monetising

the debt".


43/101

But Alas !, it is a bubble with money produced out of thin air there is only a PROMISE ofeconomy as a profitable one-Faith.

And what happens if same US economy is going in $14 trillion deficit?To pay the promised high interest on given-debt -

they can increase the taxes, reduce their public welfare spending,(to reduce the expenditure and increase the income within the country)

or they would increase the interest rates of third world country loans or simply create money

out of thin air but they would pay you your high interest debt on the money that you had lent it

or going to lend it- that's the Government security brought to you by Quantitative easing.

Why don't US Government and Federal reserve scrap this system?Because there is no other system for them- they are trapped by previous debtsWe can't scrap quantitative easing-What do they say in news?because this is the only solution to fight Recession and deflation-stagflationfor them it's legitimate, they say first there is deflation in a country because CPI (Consumer

Price Index) says sowhile actually food prices , gas prices, health care prices, tuition prices, taxes, subway fares,stock prices and bond prices are always higher than a year ago.

so what you are telling me is that the fed thinks prices are going down, when in fact they aregoing up?

Yes.

and they think during the recession, with the high unemployment, it is better if the thingspeople need to buy cost more money?

Correct. According to the ben bernanke(Federal reserve chief), the inflation will create thejobs and improve the housing market, it will create demand for US dollar and people wouldcome and trade with US- cheap products and More jobs.

has this ever been tried before?

yes. just last year the fed tried the quantitative easing with 2 trillion dollars.

did that create the jobs?

no.

did it help the housing market?

not at all.

did it help anybody at all?

yes, it helped the goldman sachs(an investment bank,which gives loan to US for its printeddollars for high interest).


44/101

how much of the money are they printing now?

600 billion dollars.

so even though the first 2 trillion did not create the jobs or improve the housing market, thefed decided to do another 600 billion anyway?

yes.

who put the ben bernanke in charge?

the ben bernanke was first appointed by the president bush. then he was reappointed by thepresident obama.but wasnt the president obama supposed to bring the change?

yes.

how is putting in charge the same fool, who has been wrong about everything, the change?

well, under the president bush the ben bernanke only blew up the American economy. Underthe president obama, he is working on blowing up the entire global economy.

that does not sound like the change we can believe in.

definitely not.

who else supports the ben bernanke?

most economists around the world think the quantitative easing is very dangerous.

does anyone think it is a good idea?

yes. the people at the goldman sachs

Oh my god, do these people don't have shame?

When you are lying to people for more than 70

years, you forget about shame!

The point that needs to be repeated over and over

again is that they know they're creating a bubble,

they know the bubble's going to burst someday,

but it doesn't matter because the guys that are

doing all this are cashing out at every step of the

way, either through bonuses or other ways.

Federal reserve bank and US government-


45/101

we can't scrap this system-2) what is happening in those big buildings?

So how in the world did things get to the point where the Federal Reserve feels forced to

recklessly print gigantic piles of money?

Well, it didn't happen overnight. Back during the 1980s and 1990s there were many peoplethat desperately tried to warn about what would happen if U.S. government debt was not

brought under control.Unfortunately, our politicians did not heed those warnings.

Today, the U.S. national debt has reached a grand total of$14,137,541,098,872.71. It is 14times larger than it was just 30 years ago. It is the largest single debt in the history of theworld.

So why don't our politicians just balance the budget now so that we don't keep having toborrow so much money?

Well, there are some huge problems.

First of all, when you combine entitlement programs such as Social Security and Medicarewith interest on the national debt, it comes to approximately 64 percent of all federalgovernment spending.

But that is not the bad news.

In the years ahead, entitlement spending and interest on the national debt are both projectedto absolutely explode.

We are rapidly approaching a time when spending on entitlement programs and interest onthe national debt will be significantly greater than all of the revenue that the federalgovernment brings in each year. All federal revenues will be spoken for even before a singlepenny is spent on defense, education, running the government or anything else.

Either entitlement programs are going to have to be seriously reformed or the U.S.government is going to have to come up with a massive amount of extra money from


46/101

somewhere or the U.S. government is going to have to borrow increasingly large piles ofmoney from someone.

Unfortunately, there are no easy solutions and most of our politicians are scared to death totouch entitlement programs because it will mean that they will lose votes.

But our entitlement programs were never meant to be as massive as they are today. Back in1965, only one out of every 50 Americans was on Medicaid. Today, one out of every 6American is on Medicaid.

Obviously something has to be done, because the debt that we are passing on to futuregenerations is absolutely criminal.

For example, every single child born in America today inherits$45,000 in U.S. government debt.

Isn't that lovely?

Of course our liberal friends believe that the answer is just to raise taxes.

Oh really?

The truth is that our taxation system is deeply broken.

No tax income :(

Small business owners and middle class Americans are being taxed into oblivion whilethose at the top of the food chain often pay no federal taxes whatsoever.

For example, did you know that Citigroup did not pay a dime of federal taxes in the third

quarter? Meanwhile, their executives continue to bring in bonus packages worth millions.

Did you know that even though Boeing receives billions in federal subsidies every year andeven though it has a bunch of juicy government contracts it did not pay a single penny infederal corporate income taxes from 2008 to 2010?


47/101

Did you know that while Exxon-Mobil did pay $15 billion in taxes in2009, not a single penny went to the U.S. Government?

Meanwhile, their CEO brought in over 29 million dollars in totalcompensation that year.

Our entire system is broken beyond repair and needs to be reconstructed from the ground up.

But of course that simply is not going to happen.

So what can be done?

Not a whole heck of a lot.

The truth is that the U.S. economy is on the verge of a major collapse.

Marc Faber, the author of the Gloom, Boom and Doom report recently gave a speech in whichhe declared that the U.S. financial system is in such disastrous shape that only a " reboot" willbe able to save it....

I think we are all doomed. I think what will happen is that we are in the midst of akind of a crack-up boom that is not sustainable, that eventually the economy willdeteriorate, that there will be more money-printing, and then you have inflation, anda poor economy, an extreme form of stagflation, and, eventually, in that situation,countries go to war, and, as a whole, derivatives, the market, and everything willcollapse, and like a computer when it crashes, you will have to reboot it.

But can we just "reboot" the system and expect things to go back to normal?

Of course not.

The truth is that when the rest of the world completely loses faith in the U.S. dollar and in U.S.Treasuries the dominoes are going to start to fall. Eventually we are going to see a financialpanic that is going to make 2008 look like a Sunday picnic. Our economic system willmassively implode as all of the gigantic mountains of debt and paper money collapse like ahouse of cards.

Right now the Federal Reserve is desperately trying to hold the system together by "paperingover" all of the mistakes.But in the end it is not going to work. In fact, what we are witnessingnow are the very early stages of hyperinflation.A lot of other nations in the past have thoughtthat they could just print their way out of trouble, but many of those "experiments" ended intotal disaster.

Marc Faber is certainly right about one thing - all of this money printing is going to give ussubstantial inflation to go along with the high unemployment that we already have. This iscalled "stagflation" and anyone that remembers the 1970s knows that it is not a lot of fun.
http://www.zerohedge.com/article/marc-faber-i-think-we-are-all-doomedhttp://www.zerohedge.com/article/marc-faber-i-think-we-are-all-doomed


48/101

But the Federal Reserve seems absolutely determined to print more money. Fed officials aredoing the same thing now that they did right before QE2.They are dropping hints about QE3and they are trying to break it to us gently.

Well, it is about time that someone told the American people the truth. All of this moneyprinting is going to end in disaster and so you had better get prepared.

Even as Barack Obama and Ben Bernanke publicly defend the Federal Reserves new $600billion quantitative easing program, top finance officials around the globe are expressingalarm and outrage.

In fact, Barack Obama is very much in Bernankes corner. During his trip to India, BarackObama made it clearthat he very much supports this new round of quantitative easing by theFederal Reserve.

I will say that the Feds mandate, my mandate, is to grow our economy. And thatsnot just good for the United States, thats good for the world as a whole.

This is the exact opposite of what Barack Obama should be doing. He should be demandingaccountability from Ben Bernanke and the Federal Reserve. He should be trying to get theU.S. financial system back on some kind of solid footing.

But we all know that is not going to happen. Obama had no problem renominating Bernanketo another term, and Obama has publicly supported him at every opportunity.

And this time not only US will hit by the US dollar crash, but each and every countrywho is engaged in Globalized businesses and trade with US.

How long is it going to be until everyone wakes up and starts acknowledging that the

emperor has no clothes and Bernanke is running the U.S. economy into the ground?

At this point, Bernanke has lost virtually all credibility. In 2009, he promised the U.S. Congressthat the Federal Reserve would not monetize U.S. government debt, but now that is exactlywhat is happening.
http://theeconomiccollapseblog.com/archives/caught-in-a-lie-bernanke-promised-congress-the-federal-reserve-would-not-monetize-the-debt-but-now-that-is-exactly-what-is-happeninghttp://theeconomiccollapseblog.com/archives/caught-in-a-lie-bernanke-promised-congress-the-federal-reserve-would-not-monetize-the-debt-but-now-that-is-exactly-what-is-happeninghttp://theeconomiccollapseblog.com/archives/caught-in-a-lie-bernanke-promised-congress-the-federal-reserve-would-not-monetize-the-debt-but-now-that-is-exactly-what-is-happeninghttp://theeconomiccollapseblog.com/archives/caught-in-a-lie-bernanke-promised-congress-the-federal-reserve-would-not-monetize-the-debt-but-now-that-is-exactly-what-is-happening


49/101

If the rest of the world cuts back on buying U.S. Treasuries, the Federal Reserve is going tofind itself with a gigantic mountain of debt that it will be forced to monetize.

So what happens someday when China, Japan, Russia and the major oil producers in theMiddle East decide that enough is enough and they are not going to buy any more U.S. debt?

Dont think it cant happen these nations are not stupid and if they realize that the U.S.

dollar is going to continually keep falling in value there could be a dramatic move away fromU.S. debt.

If the rest of the world quits lending massive amounts of money to the U.S. government, ourleaders will be faced with three options.

The U.S. government could start trying to operate within a balanced budget (whichwould crash the economy),

interest rates on U.S. government debt could be raised until people would be willing toinvest in Treasuries again (which would probably crash U.S. government finances andthe economy),

or the Federal Reserve could just start monetizing most of the debt on a regular basis(which would likely eventually crash the entire world financial system).

In order for the current world financial system to maintain stability, it is essential for there to befaith in the U.S. dollar and for there to be faith in U.S. Treasuries. Once faith in them is lost, itwill only be a matter of time until the world financial system totally crumbles.

This new round ofquantitative easing could be the tipping point that opens the door to theeventual complete and total collapse of the U.S. Dollar. Let us hope that the dollar does notcompletely fail any time soon, but with jokers like Bernanke and Obama running the show,there is not much reason for optimism.


50/101

Jane D'arista quotes- People don't know that the US dollar they hold can also lose its valueand not even governments, they believe in their governments- who keep on lying to them andincrease their debt heavily and it is so important to look at this particular element in the globalsystem and understand that what is happening now as economies are under the gun and veryvulnerable, exchange rates are now changing more rapidly than ever, you have an

exacerbation in competitiveness of US trade- impacting people inside the country and all whoare attracted to it by one way or another.

Quantitative easing around the world-

These charts show how central banks all over the globe have been recklessly printing money.Over the last 30 years virtually the entire world has developed a great love affair with fiatcurrency....


51/101

So is everyone printing money?The U.S. is printing lots of money.....

Source, The St. Louis Fed

The Bank of England is printing lots of money.....

Source: The BoE
http://research.stlouisfed.org/fred2/series/M2/downloaddata?cid=29http://www.bankofengland.co.uk/mfsd/iadb/NewIntermed.asphttp://research.stlouisfed.org/fred2/series/M2/downloaddata?cid=29http://www.bankofengland.co.uk/mfsd/iadb/NewIntermed.asp


52/101

The EU is printing lots of money....

Source: The ECB

Japan is printing lots of money.....

Source: The BoJ
http://www.stat-search.boj.or.jp/index_en.htmlhttp://www.stat-search.boj.or.jp/index_en.html


53/101

China is printing lots of money.....

Source: The Peoples Bank of China

India is printing lots of money.....

Source: Reserve Bank of India
http://www.pbc.gov.cn/publish/html/2010s07.htmhttp://www.rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=11949http://www.pbc.gov.cn/publish/html/2010s07.htmhttp://www.rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=11949


54/101

Of course anyone with half a brain can see where all of this is ultimately headed. In the end,inflation is going to spiral out of control and we are going to witness financial implosion on aglobal scale.

So why don't these nations just adopt sound money?

Well, it turns out that if you are a member of the IMF, you are specifically prohibited fromhaving gold-backed currency.

Yes, you read that correctly.

In fact, U.S. Representative Ron Paul once sent an open letterto the U.S. Treasury and theFederal Reserve asking about this and he received no response. The following is the contentof that letter....

Dear Sirs:

I am writing regarding Article 4, Section 2b of the International Monetary Fund (IMF)'s Articles ofAgreement. As you may be aware, this language prohibits countries who are members of the IMFfrom linking their currency to gold. Thus, the IMF is forbidding countries suffering from an erraticmonetary policy from adopting the most effective means of stabilizing their currency. This policy could

delay a country's recovery from an economic crisis and retard economic growth, thus furtheringeconomic and political instability.

I would greatly appreciate an explanation from both the Treasury and the Federal Reserve of thereasons the United States has continued to acquiesce in this misguided policy. Please contact Mr.Norman Singleton, my legislative director, if you require any further information regarding thisrequest. Thank you for your cooperation in this matter.

Ron PaulU.S. House of Representatives


55/101

Sadly, the truth is that the global elite don't want nations to start adopting gold-backedcurrencies. They want countries to use fiat currencies that they can openly manipulatefor their own benefit.

At this point, every nation on earth (to the best of my knowledge) uses a fiat currency. Allof the major global currencies are being continually devalued. In fact, there are timeswhen counties will purposely devalue their currencies even more rapidly in order togain a competitive advantage in world trade.

This is why so many investors now have such an aversion to paper currency. It starts losingvalue the moment you take possession of it.

In some areas of the world, "gold fever" is absolutely exploding. For example, China importedfive times as much gold in 2010 as it did in 2009. On the Shanghai Gold Exchange, tradingvolume soared 43 percent during the first 10 months of 2010.

Gold, silver and other precious metals are now seen as a great hedge against inflation

worldwide. Investors all over the globe are demonstrating a strong preference for "realmoney" over "paper money".

So what does all of this mean?

It means that some tremendous imbalances are being built up in the global financial system.

The central banks of the world must continue to inflate these bubbles with constantlyincreasing amounts of paper money and debt in order to keep the game going. If at somepoint the reckless money printing comes to a screeching halt it is going to unleash hell onglobal financial markets.

But if all of this reckless money printing continues we are eventually going to see horrific

inflation all over the planet. In fact, we are already seeing significant inflation happening inmany areas of the globe. Almost every single day a new headline about inflation in Chinaand india seems to pop up in the financial news. Rising food prices are sparking unrest in theMiddle East and elsewhere. Even U.S. consumers are starting to see some uncomfortableprice increases at the gas pump and in the supermarket.

So it is not just Federal Reserve Chairman Ben Bernanke that is off his rocker. The wholeworld is going crazy with money printing.

Hopefully this whole thing is not going to end as badly as many of us fear that it will. But rightnow the central banks of the world are pumping unprecedented amounts of cash into theglobal financial system, and those in the global financial system are funneling a very largepercentage of that cash into hard assets. Unless something changes, that is going to meanthat prices for basic necessities such as food and gas are going to continue to rise.

This is quite a fine mess that we are in.

Does anyone see a way out?


56/101

In the News-High Debt and Fiscal Austerity in Britain-

Currently, Britain faces a budget

deficit that is 11 percent of its

GDP(Gross domestic product-total

value of goods and services

produced), slightly greater than

that of the United States.

Much like the U.S., Britain accumulated much of its debt as a result of the housing and

investment bubble that collapsed in 2008, the recession, and associated government stimulusspending. For conservatives, the resulting record deficit presents a ripe political opportunity to

cut spending and lower the deficits.

This goal would require budget cuts to the tune of around 81 billion, thus rapidly increasing

the pace of fiscal retrenchment. Most of these cuts would entail reductions in public

services and welfare spending coupled with an increase of 2.5 percent in the value

added tax (VAT).

Unfortunately, the implications of such intensified fiscal austerity could be disastrous

for the British economy. To begin, the cut in public spending would result in a loss of

490,000 public sector jobs, the equivalent of three million jobs in the United States,representing nearly 8 percent of the total government workforce.

The Justice Department and the Foreign Office are two of the many major government

agencies that will lose a substantial portion of their workforce. Such unprecedented cuts in

vital government agencies will end up harming the British people even further.

To make matters worse, economists have predicted that the budget reductions could

translate to the loss of as many as half a million jobs in the private sector.

Given that the unemployment rate is already at 8 percent, Britain cannot afford another shockto the labor market. Advocates of fiscal austerity have claimed that deficit cutting instills

confidence in businesses and customers by demonstrating the governments proactivity in

economic matters.

In a recent report, however, the International Monetary Fund asserts that this claim is, in fact,

a myth. It explains that trying to balance a budget in the short term in the face of falling

inflation and high unemployment could lead to further economic depression, which would

then, ironically, scare off more business.


57/101

Now,imagine,where the people are standing in such a Businessenvironment? We never know what is happening out there in thosewhite buildings?

We never know about the value of money we hold in our hands willjust wipe out due to panic in wall street about inflationary money?

We never know the change we believe in has never been imaginedby those who boast to bring it from 70 years?

But a little bit of political and economical knowledge can make thisclear to us ,what is the spiral of financial crisis is and Inflation andrecession a

Documents

The Golden Veil of Globalization-The Seen and Hidden