To all my Facebook Friends Todays Date (11-1-13) will be a part of your life for a long time. Financial cries is imamate and Neoliberal-Republican-Teaparty are clearly the only ones to blame. Listing of the 5 main common relationships between financial crises, known as panic indicators. When all indicators are solidly in place as was the case in 1873, 1229, and 2008, they remain stagnant until the triggers activate a recession. Over the past 5 years Neoliberal-Republican-Conservative-Teaparty-Paradigm- has introduced abstraction releasing a set of triggers that are stacked one on the other compounding risk to economic depression. Back to today and the sequester effect on economy and an individual’s spendable income. Just looking at SNAP and the removal of cash flow through the market place of communities will be the next trigger releasing a full blown depression. Panic Indicators of Debt Back Markets 1. Little to no regulation or deregulation of financial markets, basic social safety net minimal standard of living 2. High investment speculation weak banking system 3. High debt to income ratio tax structure favors higher incomes 4. The transfer of debt from industry, financial and wealthy institutions onto the general public with bailouts or as lender of last resort in the 1870 and 1920 this transfer was in the removal of resources including food from colonial territories. 5. Extreme separation of wealth and inequality mixed with Collateral population shifts, forces movements of peoples. The financial crisis has placed demands on food prices and availability, but that is not the true problem, it is true that the less fortunate are the hardest hit and suffer from underling food crisis consequences. Each of the three financial crises periods listed and introduced in “my paper (Food and Financial Crises consequence of the neoliberal paradigm) this paper contain the five panic indicators. Because, both crises expose the relationship of Irving Fisher’s dollar disease, debt forgiveness and a coordinated response is needed to relieve the doubling up of stressors on disadvantaged peoples, but if ignored because of class status, it becomes much more catastrophic to overall real economy, consumer spending becomes centered on survival. The long-term effect is the same as we saw in the earlier examples expanding poverty risk. The key factor of debt forgiveness for lowest incomes originates with stagnate wages and income to spending reduction, those that earn less spend higher present of income, those that earn more build reserves in the form of speculation investment. As financial markets fail, focus transfers from the private to the public sector debt, from financial services of industry to public spending, it has transformed a financial crisis into a crisis centered on government debt. In turn, the debt is then transferred to the public in the form of resource exploitation, labor alienation, taxation and increase fees for services of civil population. This shifting of austerity control onto lower incomes becomes a trigger, (SNAP lower spendable income/sequester) and when triggers are stacked panic rapidly develops into crisis. When systemic risk is ignored due to internal bickering crisis results in full depression. This was true in the 1873-78 five year world depression, the 1929 crash that became a full depression in 1933-37 world depression, both resulted from the lack of governments reacting responsibly. In the 2008 crisis depression was temporally avoided do to American Recovery and Reinvestment Act but was too small to repair the damage, and sequester could be the trigger to a full depression by 2014. A clear pattern develops after careful study of each of the three-era’s, from panic a minor recovery takes place before depression and if the five panic indicators are not corrected economies crumble like dominoes. By ignoring systemic risk, collateral accumulation losses and, collateral population shifts between the beginning and ending of the three-era crises, discussed in this paper, it is clear all five of the panic to crisis events listed in figure one are in place awaiting triggers.
Posted on: Fri, 01 Nov 2013 20:20:10 +0000
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