Posted on 07/04/2009 1:41:52 PM PDT by knighthawk
With U.S. unemployment set to climb to 10%, and Canada not far behind, the North American market economies will soon be looking at what used to be derisively termed “European levels” of unemployment. The question is whether these high unemployment rates are merely short-term blips that will be followed by quick recoveries, or whether high jobless numbers will persist, turning Canada and the United States into grim replicas of sclerotic Europe.
Recent economic history suggests both Canada and the United States can quickly rebound from economic slumps. Unemployment in the United States, for example, hit a peak of 10.8% in the midst of the 1982 recession, but it was all over six months later.
(Excerpt) Read more at network.nationalpost.com ...
|
That's because in 1982 we had a President who knew what he was doing. Not this time around.
Obama's plans are not designed to bring about recovery. They are designed to create perpetual dependence on government.
Hussein Ltd. can’t take proper advantage of a disastrous economy which rebounds in only 6 months. This will be a democrat/White House engineered tragedy, demanding limitless “assistance” from the DC/NY crowd. In short, make sure you are well armed.
Even those who see what is happening live in a state of illusion, hoping against hope that it is all just a mirage. They believe that America will simply rebound, as it always has. But they overlook the reality that all of the founding principles and values that made it possible for our country to prosper and even dig itself out of tough times, have been systematically destroyed. The mechanisms needed to rebound, no longer exist…
This economic collapse is planned and very much deliberate . There isn't going to be a rebound because a rebound would defeat the entire purpose of the deliberate depression we're in.
A good way to sharply and quickly reduce unemployment could be done by the individual States, and during a period of currency fluctuation, using State-issued Scrip currency.
The two go hand-in-hand, because Scrip is a controlled, if not legal tender, currency, giving the State a lot of leverage in stabilizing its local economy.
And the trick is that it is not like typical welfare, but the State’s role would be in keeping markets open, and connecting unemployed individuals with producers. Here’s the logic.
During a depression, the markets tend to “lock up”, leaving producers with excess goods they can’t sell, and consumers unable to get the goods they need. Scrip currency acts like lube to get the markets going again, when dollars are either in shortage and deflation, or being inflated.
The emphasis with Scrip is to “buy local”, using Scrip at participating retailers, that in turn concentrates dollars at the State level, that they can use to buy products not made in the State, like pharmaceuticals.
But buying local means that food, for example, needs far more processing, and cooking, which was normally done by big food companies. This means a lot of jobs. There is also a big jump in maintenance (instead of replacement) jobs.
Scrip facilitates a lot of this.
Not when you have a socialist government in charge.
Back it with gold and suddenly all fiat currencies pale in comparison. Of course at that point the goobermint comes-a-callin'.
Oh yeah that will help. Allowing the local morons to print funny money to compete with the feds. Perfect.
Obama’s plans are not designed to bring about recovery. They are designed to create perpetual dependence on government.
Scrip was used some 450 times during the Great Depression, and was singularly successful at alleviating local problems. Because it is a tightly controlled, debt free currency, its biggest problem at the time was hoarding. Modern versions of scrip get around this problem by declining a standard 2% each month in value.
To both keep printing costs to a minimum and to avoid counterfeiting, the use of a 2D matrix bar code is the ultimate version of scrip. When an individual purchases it, each bill is registered to them, and each bill must be scanned and validated for a transaction to be finalized. This also permits sales taxes to be deducted automatically.
Scrip is works in a complementary way with the dollar, so it is up to the individual how they pay, as long as the retailer accepts scrip.
However, the fundamental purpose of scrip is not savings, but as a dynamic and available currency for the retail market. Therefore, backing scrip with specie is counterproductive. It is *not* legal tender, any more than grocery store coupons.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.