Blog 24


Just another symptom

The wealth of every nation is created by those who produce the items we judge our wealth by, no one else.
When this sector is deprived of its ability to produce everyone will suffer and society's parasites had better watch their backs.
Cliff Fraser

In the aftermath of possibly the biggest fraud1 in history we are being told by the news media that unemployment is rising in most industrialized countries in the world. It's like saying rain is wet, of course unemployment will rise.

But just what do the rising unemployment figures tell us? Is knowing the bare statistics helpful in any way?

First, just saying that a certain number or percentage of employable people are unemployed is not really helpful at all.

For example, if all the people who are unemployed were from the financial services sector it would have a zero effect on the economy. Yes zero, because this group of people create absolutely no wealth in the first place and are largely of little benefit to society. In fact their unemployment would probably have a positive effect on the economy. Even if they had to be supported with unemployment benefit for the rest of their lives, the drain on society’s wealth creators would be minimal compared to the vast amount of wealth they currently misappropriate from the system.

The unemployment statistics that really do matter are where jobs are lost in the wealth creation industries2, that is every industry that makes things, the things everyone measures their wealth by. If the wealth creators and people in those industries that support the wealth creators lose their jobs, then society as a whole definitely suffers.

The giant wobble in the economy caused by the latest round of misdoings in the financial services sector is just that, a wobble. Like all wobbles it will settle down and the status quo will be restored. In the meantime we will all have to suffer more than usual for a while. The trouble is that returning to the status quo will just set the scene for another wobble sometime in the future, perhaps next time it will be the wobble to end all wobbles.

Contrary to the Wikipedia definition of recession, in my opinion an economic recession is when the financial services sector has injected so much plastic and electronic money into the system it has the effect of appearing like a reduction in GDP. And again, contrary to the Wikipedia definition of economic depression which among other causes blames increased unemployment for the malady, it is in my opinion it is an increase in unemployment in the wealth creation class instigated by misdoings in the financial services sector that causes economic depression.

The public outcry and political turmoil in Iceland resulting from the economic woes in that country is just the tip of a iceberg [no pun]. If something is not done soon on a worldwide scale to solve, not just patch, the problems caused by the fraudulent schemes rife in the financial services sector, then we will see public outcries and social unrest in many more countries during the coming years.

Despite the restrictions on public protest in China, the social unrest in the worlds factory is at boiling point. Other countries such as Greece, France, Bulgaria, Latvia and many others are already showing signs of tension and social unrest. We are witnessing just the beginning of a worldwide protest if something is not done now to:

  • Publicly punish those who caused the problem to the maximum extent possible under the current (almost non-existent) legislation.
  • Initiate an in depth study of the financial services sector to identify all practices that are socially unacceptable.
  • Introduce new legislation to outlaw all socially detrimental practices in the financial services sector.
  • Take responsibility for the money supply and credit control away from the banks and return it to Government.

Dominique Strauss-Kahn, president of the International Monetary Fund, warned in late 2008 that "social unrest may happen in many countries, including advanced economies," as a result of the crisis.

The downturn in production, triggered by the downturn in demand, triggered by a loss of faith in the economy, triggered by the greed and fraudulent practices rife in the financial sector caused the current round of unemployment, it's a crime against society that must be recognized and dealt with.

It’s no use saying that no-one saw it coming, there are hundreds of articles on the Internet that pre-date current events. Warning that there was going to be a financial meltdown given the changing face of the financial services sector fueled by electronically hyper-driven stock dealings, virtual stock market gambling and the banks mandate to print unlimited false credit 'via plastic and electronic currency'.

1 I use the word fraud here to mean the collective frauds in the financial sector that have led to this and every other financial crisis in the last two hundred years or so. I also use the word fraud to describe not just acts that are against current law but also to describe fraudulent acts that, while not yet illegal, are detrimental to society at large. Return to text
2 See Are you a wealth producer? Return to text




  • EurActiv: Europe hit by storm of mass layoffs

  • The Economist: France: A time of troubles and protest

  • The Economist: East European economies: To the barricades

  • The Economist: Spain's new unemployed: And worse to come

  • IceNews: Iceland’s political turmoil  

  • The Guardian: Icelandic PM becomes world's first leader to step down over banking system crisis  

  • Emploi, salaires : les syndicats mettent la pression sur le gouvernement  

  • 7 Français sur 10 favorables à la grève de jeudi  

  • Le Monde: Grève: Sarkozy "comprend les difficultés" mais refuse d'arrêter les réformes  

  • Le Monde: La grève du 29 janvier se prépare sur Internet

  • Focus: “Еурактив”: Социални безредици обхващат Европа на фона на глобална рецесия  

  • Conflits sociaux en Europe: la France pourrait être la première d'une longue série  

  • Sociální nepokoje zachvátily Evropu zasaženou celosvětovou recesí  



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