The Great Recession?

We are hearing that the economic crisis we are now experiencing is unprecedented.

No.

What we are experiencing is classical economic crisis, easily predictable, entirely preventable.

If we do not take preventive measures that treat the causes and not the effects, we are looking at a Great Recession, not a depression.

While The Great Depression brought the value, the legitimacy, of capitalism into questionable verification, the organizational means of consolidated capital and markets to the ends of consolidating wealth, and power, has been maintained as an economic efficiency that just needs technocratic adjustment (adjusting for the externalities, like our current "toxic debt" that needs to be managed into a detriment for The People by "socializing" it).

This is where the "unprecedented" attributes are to be found. The treatments we see being implemented are symptomatic and neo-classical--they are new, reinventions of the problem in the form of new solutions and mired in complexity to "appear" innovative and thus effective.

For example, the Fed's decision to buy commercial paper is unprecedented, but it does not solve the problem. Rather, it makes the problem--leveraging financials (clogging the credit market) possible by indirectly buying the bad debt it produces and replacing the loss (the consolidated gain receiving the lowest tax burden) with newly printed money (electronic credits). This is called, monetizing the debt, and in the current case is just an extension of the leveraging scheme (the problem). It is a neo-classical economic technology that keeps the organized means of power from being verified as inefficient by indirectly expropriating value from The People and make it look like they are being "rescued." It is, in keeping with the conservative modus operandi, a fraud.

Fraud is a crime against a civil society, and because the problem is a lack of a free and unconsolidated marketplace that sanctions the frauds by denying them access by operation of collective action, collective will, without threatening economic collapse, these criminals must be prosecuted in a political forum of legislative and judicial procedure.

We need a strong executive that will apply corrective policy directly to the causal factors.

Many economists incorrectly evaluate Obama's advocacy of a more progressive tax code as deficit prone. It is not. A more progressive tax code is deficit averse because it taxes the wealth where it is idled (illiquidity) and puts it to work where it is needed, with The People. The result is both economic stimulus and less need for government, and less spending these economists say Obama is not accounting for, from a reliably robust revenue base that will benefit the rich, but without the all-important deprivation of The People that makes them feel powerful, causes the need for government, and that is nothing but a complete lack of moral intelligence.

A Great Recession is no one's self-interest. Neo-classicism is in means, not ends.

Obama/Biden, 2008.

The Classic Problem (Perennialism)

There is a philosophical concept called perennialism.

Most philosophers describe a perennialism, grappling with current problems and perception of those problems. Many describe it as inevitable historic recurrence.

A determinism soft or hard, the command mode our economy is in now, the tendency to deflation, is the recurrent bugaboo of capitalism and classical economics--the crisis of overproduction.

All the classic and neo-classic indices are present to suggest a classic economic depression, or a perennial problem. It is a problem even for the beneficiaries of the business cycle (consolidation of wealth) because with each oscillation, within a recent memory especially, the legitimacy of the political-economic process is called into question.

Clearly, the global economy is determined to deflate. It is being commanded by a consolidated wealth. Even though there are differences in the form of the crisis, and the remedial measures available to stabilize it, like monetarism, are more efficient, the result will be the same--overproduction due to a reduction of demand, or deflation. It is a demand-side economics that benefits the consolidation of capital, which is the source of the problem. It is a "classical" economic problem that ALL the classical economists have described, explained, and all predict to be perennially persistent.

The antithesis to demand-side economics is obviously, rationally, in order. Supply-side economics is the solution nature is demanding, awaiting our command.

The solution is simple, it is direct: invest in the supply side, not the demand side like the speculative demand driving the global economy into depression now.

The solution is simple and easily applied. We just have to decide to do it.

Join the coalition for Obama and build the peacefully prosperous world of a self-determined pluralism we all "know" we can have.

Very best wishes.