Tuesday, February 14, 2012

The Second Great Depression and The Cause That None Dare Name

The decline in unemployment to 2008 was the result of an unsustainable
credit-based housing bubble created by the US Federal Reserve. Image source

Unemployment in Spain is around 23%. On a true measure, according to the Trades Union Congress, unemployment in the UK now exceeds 6.3 million people or more than 20% of the workforce. US unemployment according to the U6 measure is over 15%.

Among young people (aged 16-24) the rate of unemployment is even worse. In Spain, youth unemployment has surged over 50%. In the UK, youth unemployment now exceeds one million, while hundreds of thousands of immigrants flood in. For black youth in Britain the outlook is particularly grim with unemployment exceeding 50%. But for black youngsters in America, unemployment approaching 90% is catastrophic.

European youth unemployment. (Image source)
An economic disaster of such magnitude must have an apparent cause, which it does, but the Western political class and the controlled media, including much of the so-called alternative media, will not name it, striving instead to distract attention with endless bogus warnings about terrorism, excess population, resource shortages and global warming.

But in a World possessed of technology that to an earlier generation would appear to be of near magical power, the idea that the highly capitalized Western nations cannot provide their populations with opportunities to work and support themselves is absurd. And indeed if it were not absurd, why do the Western elites continue to promote a flood of immigration to the West, destroying ethnic diversity, social cohesion and religious compatibility while vilifying and criminalizing opposition to this genocidal program as racist and xenophobic?

As for resource shortages, most appear to be artificial. Food prices have been boosted by government programs to encourage the conversion of food into fuel at huge cost to taxpayers and with little if any net gain in energy. Oil prices have been boosted by the continual Western-generated threat or reality of war in the chief oil exporting regions of the World.

As for global warming, all we've seen so far has likely boosted crop yields, as must have the the rise in atmospheric carbon dioxide concentration.

The reason for mass Western unemployment must, therefore, be hidden in plain sight.

And the cause is in plain sight, though none in the media dare mention it. It is the 1994 GATT agreement that opened the Western nations to unrestricted free trade with the rest of the World, which is to say with the teeming masses of Asia, the Middle East and Africa, where hundreds of millions of workers are sweated for pennies an hour.

The outcome was predictable and predicted. In fact, Sir James Goldsmith felt so strongly about the damage that would be done to Britain by the 1994 Gatt Agreement that he formed the Referendum Party to take Britain out of the EU and thus make her free to regulate trade in the national interest. Goldsmith, however, died in 1997 and his party was absorbed by another Euroskeptic group now headed by a former commodities broker with a gift for lampooning the charisma-challenged EU leadership, but who seems to have nothing to say against global free trade.

But why, if Third-World competition is wreaking such havoc with Western job markets, does almost no prominent individual or mass media outlet dare speak of it? Because it is immensely profitable to those moving work from the West to the Rest, and it is they who own the political class and thus the education system, which should more accurately be called a system of state indoctrination and propaganda, the broadcast media, and the publishing industry.

As the great classical economist David Ricardo explained, "wages and profits are together always the same," meaning that if you lower wages you increase profits. It is no coincidence, therefore, that while the West suffers the severest depression in jobs and wages since the 1930's, profits of Western corporations are at record highs. In the United States, for example, corporate profits have doubled since 2000, while unemployment has increased by 150%.

What then is the solution? Briefly, there is none. True, we have proposed seeming solutions: either trade protectionism, or government intervention to speed wage convergence between the West and the Rest, while providing income support to those in the West whose wages fall below the subsistence level. But Western governments have shown no interest in either protecting jobs and job skills or preventing the flight of capital to low-wage, low regulation regimes, where profits are highest. It is sufficient, they seem to believe, to provide the unemployed with a dole to keep them alive with crumbs from the bankers' tables but in a state of smouldering resentment, while hastening wage convergence through currency devaluation. Unfortunately, for Western countries, the Chinese are putting on a fine performance in the race to debase, thus preventing the US and Europe from gaining competitive advantage through devaluation.

How will this end? Badly. It will end with the burial of Western Civilization and the emergence of the New World Order, which is to say a global plutocracy ruling over a mongrelized human population. There will be no West or Rest in the future. There will be one global mass, and anyone who objects to the genocidal destruction of their own race, nation and culture will be criminalized and silenced.

Unless, that is, there is push back. But there is no evidence that a reaction is possible, let alone occurring. Seeming opponents of the New World Order are mostly globalist controlled assets. How to tell? find out what they say about globalization of trade, mass migration and multi-culturalism. Most you will find are entirely on board with the Council on Foreign relations, Chatham House, and the pseudo-left-wing media.

Related post:
Crooks and Liars: Hell Is Cheap: China, Apple, And The Economics Of Horror
What's Wrong With Europe and What Needs to Be Done About It 
Robert Herndon:The globalist lies about the British job market


  1. Bravo for the analysis / overview. What I don't think is by any means certain is that the New World Order will take over. ( Partly because of China-Russia, and partly because neutralising the Western populations to the needed extent may be a too ambitious project. )

    1. But when Russian oligarchs and Chinese billionaires join the Davos crowd, as they are doing, the implication is that the globalists have things sewn up. Only revolution now seems capable of reversing the tide. But how do you conduct a revolution in a high-tech era of universal electronic surveillance, state murder by drone, and near universal brainwashing?