G7 Industrial Production Crashing

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SamLinder's picture
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Joined: Jul 10 2008
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G7 Industrial Production Crashing

11 April 2009

G7 Industrial Production Crashing

The production of real goods in the developed nations is
plummeting. Even the mighty export driven economy of Japan appears to
be heading lower.

Countries must begin to encourage consumption
in their own economies. To do this, they ought not to be stimulating
the old credit/speculation machine called the neo-liberal financial

Real economic growth is to be found in a broad employment and consumption, and an increase of the median wage.

is the deep flaws in much of the third world economies, especially in
Asia and Latin America. Economic health can be measured by the size and
well being of the middle class in a relatively free society.

reason is simple. Individuals can only borrow so much before they are
unable to service the debt. And the greedy few can only spend so much
on consumption using the wealth which the tax and financial system has
delivered to them from the many.

Gaming the system so that it
overtaxes the income of the many for theincreasing benefit of a few has
natural limitations, unless one can enforce a type of involuntary
servitude. This model has its roots far back in history, in empires
like Rome, Egypt, and Sparta.

As the elite few accumulate real
assets using their surplus, they will find that holding on to their
wealth as the rest of society deteriorates in a downward spiral of
privation can be a bit of a challenge.

Until the financial
system is reformed and the economy is brought back into a balance,
there will be no recovery, and the fabric of order will remain fragile.

If things continue on as they are, despite all the stimulus and
fine rhetoric, the madness will once again be unleashed on the earth,
and the people will wonder from whence it came, as they do each time it
rises from the same sources and ravages civilization: unbridled greed,
malinvestment, and corruption.

Thanks to Diapason Trading for this chart.



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