Global Recession: Causes, Consequences, Fixes, Part 13

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These were the immediate, mid term and long term effects of crisis management policies adopted by Bush and Obama administration:
1) Trillions of dollars of debt was generated, causing money devaluation, inflation, price hikes, increased cost of living, raised cost of doing business.
2) World’s largest financial institutions including banks, insurance companies and investment banks, which were originally responsible for crisis and should have been outlawed or let go bankrupt, were awarded by billions of dollars of debt, tax payer and government money, instead.
3) People who were responsible for crisis, instead of being sent to jails, were awarded by millions of dollars in bonuses.
4) Criminals who were responsible for crisis, instead of going bankrupt, stayed in the game with the help of debt, tax payer and government money. They continued their criminal game and bought out or killed the smaller, fair playing competitors with the help of money they got in bailouts.
5) Most of the trillions of bailout money got dumped in replenishing the seriously defaulted balance sheets of bankrupt corporation. Hence, most of this money never made it to circulation and never reached the people who really needed it. These corporations were either fixing their balance sheets with this money, buying and killing smaller businesses or paying bonuses to their most criminal employees, instead to loaning this money to consumers or businesses. Therefore, unemployment although lower then before, but, still very high, in spite of pumping of trillions of dollars into these criminal corporations. The reason is that most of this money was never moved forward to stimulate economy, business and consumerism, which was the original purpose of bailouts.
If the other option of ‘letting economic forces play their role’ was adopted then the results would have been:
1) Corrupt corporations and criminal executives would have been permanently out of business.
2) Smaller and fair playing businesses would have got chance to capture the emptied market.
3) Money would have not been devalued, resulting into more stabilized prices, lower cost of living and lower cost of doing business.
4) Natural expansion of smaller businesses to capture the empty market would have created lots of jobs.
5) This expansion would have resulted into a real and stable growth, instead of the artificial and unstable growth and market we have.
Natural market based correction of recession, depression and financial crises takes place through deflation, lower prices, increased buying power, raised standards of living and lower cost of doing business. This artificial pumping of devalued money into the bankrupt, corrupt and inefficient corporations, just maintained the status quo. It never let the natural market based fixing play it’s role. Now, instead of deflation, we have inflation of gas prices and everything else. Due to, too much money pumped in, we have higher prices instead of lower prices. In a typical crisis, lower prices raise the standards of living. But in this crisis, due to artificial pumping of money, we have higher prices and instead of raised standards of living, even the ones who did lose their jobs or incomes, are struggling. Due to inflation, higher prices and stagnant or declining incomes and devalued money, the buying power of an average American had taken a big hit and money can hardly buy enough. Plus, due to devalued money, inflation, higher prices and stagnant or declining incomes general standards of living are getting lower and lower every day.
In addition to all this, probably the worst effect is that during recessions, depression and economic and financial crises, businesses thrive because the cost of doing business decreases due to deflation, lower prices and unemployment. This is the factor that plays a major role in lowering the high unemployment rates, resulted from crisis. Large amounts of money that were and are being pumped into the worst financial institutions, is not letting this happen. This is because the abundant supply of money is devaluing it, causing inflation, higher prices and higher cost of doing business. This is actually totally opposite of what we needed for recovery. Pumping of large amounts of money in these corporations has reversed the basic cause of recovery, hence, the effect is reversed, too. That is no or sluggish recovery.
Depressions. recessions, and economic and financial crises are actually a great opportunity to get rid of corrupt, inefficient and noncompetitive businesses and executives. By trying to fix it in an artificial way we missed this golden opportunity and instead of providing a chance to smaller, more efficient and more competitive businesses, we kept the status quo, by preserving the same old corrupt, inefficient and corrupt corporations and executives.
You must be wondering, contrary to what corporate media pundits and sold out politicians have been telling you, if all this is so simple, then, why nobody is talking about it and why did we not go for more natural, more obvious solution, that makes sense? Reason is very simple. Our country, from government of the people, for the people, by the people, has turned into the government of corporations, for the corporations, by the corporations. The grip of corporations on our country, government, media, politicians and supply of money is so strong that even when these world’s largest financial institutions were going bankrupt, could not have survived without tax payer money and all their CEOs and executives were in Washington begging for money, these corporations were spending millions of dollars in lobbying politicians, government, media, legislature and even courts. In that worst financial crisis since great depression, some of them even used their private jets, on their trips to Washington, the purpose of which was to beg for tax payer’s money in bailouts.
Question is how can this be fixed? Who can and is going to fix it? Trust me, no one! Except us, you and me. Yes, only us, you and me can and will fix it. It is only when we learn to properly use our democratic power of one person one vote. Make a solemn pledge of researching and not voting for anyone who voted for bailouts, Democratic, Republican or any other. In elections at any level, city, county, state or federal, only vote for the candidates who do not have any links with corporate lobbies, even if they have no money because of their disconnect with big, rich and powerful lobbies. Do not sit aside! Spread the word, offline and online, through submissions to search engine, social media, forums, blogs and news organizations. Stop depending on big, corporate owned media and politicians, sold out to lobbies, as your information source. Together we can make a difference and take back our country from corporations.

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Read our article Global Recession: Causes, Consequences, Fixes, Part 12 And Barack Obama For President 2012, Part 13

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