Wednesday, September 15, 2004


"Given the immense scale of debts: Government, State, Municipal, Corporate and Personal, and rising liabilities in such essential services as medical care and education as inflation starts to make a serious impact, it would be prudent to expect cash-strapped governments and states to raise taxes. Some idea of the real rate of inflation may be gained from a perusal of top executives pay awards in such countries as the US and UK where these have been averaging between 11% and 13%, and by looking at increases in utility prices. Of course, to control the ignorant masses at the bottom or even middle pay scales, industry and government cynically wave around the "doctored" CPI, claiming that wage rises must be kept in line with inflation. This piece of amazing claptrap is perpetuated by the syndicated media in order to successively reduce labor costs whilst maximizing profits. Many people realize that they are being duped, but scarcely understand the full extent and pernicious nature of this complicated little game. The inevitable outcome of inflation and reduced real wages will be to further impoverish the middle and lower wage and salaried employees, whilst their liabilities increase in line with real inflation, interest rates and additional debt servicing costs. Any serious correction to the world economy will result in an increase in unemployment particularly in service related industries. Many of those affected will most probably lose their homes.

The world's largest economy, comprising more than 25% of the global economy, is now utterly dependent upon Chinese and Japanese support for the very first time in its history."

[Emphasis mine: RB]

From: Tulips of Stone
by Nigel H. Maund


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