we all suck from inflation,recession,greedy companies and "not always healthy" products. but do we always understand their integration? the big picture? which connects all of them.. it is 21st century- Globalization. explore how much do we get to SEE and how many things are HIDDEN?

1. “THE GOLDEN VEIL OF
GLOBALIZATION”
Submitted to:
Kurukshetra University,Kurukshetra
by
Pallavi Chauhan

2. Acknowledgement
“You are therefore I am”
It brings pleasure to me remembering all the people who contributed towards
preperation of this project ,directly or indirectly.I would try to list all of them one by one
because they deserve a heartfelt appreciation for their contribution.
First of all, I am highly grateful to my parents and my brother who provided me the
much needed courage,moral support and stood by me with their fruitful blessings.
I express a genuine thanks to all my teachers who by their gracious presence helped
me clearing my doubts and believed in me and my project that's why I owe a special
thanks to Miss Aditi (Business environment), Mr. Yogesh Goel(Accounts), Mr.P.K.Seth(
Financial management), Mrs. Sonia Chadha( Marketing/Project instructor), Miss
Seema Pandey( Income Tax), Miss Neeru Singla (Sales Force Management) and my
sincere thanks to Dr. Desh Bandhu (Principal, S.D.College) who provided me the
opportunity of this one month training as well as preperation of project report.
It would be my ignorance if I don't mention the special support, I received from the
teachers of our liabrary department. When all the teachers mentioned above were
focusing on their respective subjects of study, our library teachers, welcoming
everyone to explore more than 50000 books on diverse backgrounds, played the role
of 'Silent Teacher'. I would like to thank all the teachers of library department for
providing me the mental freedom which is the crucial of all, Mr. Balesh, Mr. Jagdish,
Mrs. Rita, Mr. Angrez Singh, Mr. Ramesh Chandra, Mr Harinder Pal, Dr. T.C. Mittal, Mr.
Kulbeer, Mr. Raj kumar Batra, truly no one can neglect their Passion and Dedication at
work.
Also, my special thanks is deserved by my dear friends, who might be called the sole
inspiration for me to work on the project like this. There words of encouragement were
the lubricant for my dedicated efforts.
And last but the Most Important Thanks to My best friend- GOD without whom I could
have never ever reached to all the resources mentioned above.

3. INDEX
Chapters Page no.
Chapter 1- Why?- “The Golden Veil Of Globalization-The Seen And Hidden”.............. 4-8
Chapter 2- What is Globalization ?................................................................................9-15
Chapter-3- Globalised US- The 21st century Guy..........................................................16-17-18
Chapter-4 The 21st century guy- what's on its mind?.....................................................19-22
Chapter-5 What's its face?..............................................................................................23-26
Chapter-6 What's its Body?- Economical Needs.............................................................27-57
Chapter-7 What's its body?-Environmental needs...........................................................58-75
Chapter-8 Globalization and Third world.........................................................................76-88
Chapter-9 Another Way....................................................................................................89-99
Bibliograpy...........................................................................................................................100

4. Why the “The Golden veil of Globalization
-the seen and the hidden”?
Four words- WANTED to KNOW ,INSTEAD of BELIEVING.
Have you ever felt that there are so many things that we believe in but actually
know nothing about and if you look around, it includes a wide range of beliefs
Belief in Ideologies/cultural values
Belief in Governments
Belief in economy
Belief in education
Belief in Products we use/lifestyle
But there is a fundamental difference between BELIEVING
and KNOWING . When you know something you don't have to believe on it but if
you know nothing about something, you have got no option but to believe on it.
We do it daily in our next governemnts,advertisements,education and
businesses.
So there is no Believe Me- This
Product Is Good For You kind of thing going on
here. Rather it would be interesting to Question.!
You would say it's not always that we believe in the
stuff, we do ask for quality checks, investigation
reports.. we control it, we are modern citizens. But I
am here saying right onto your face that we don't,
yes, we don't question because if we had been
questioning then this should have never happened-

5. If today is a typical day on earth we will lose 116 square miles of our rainforest or
about an acre a second.we will lose another 72 square miles to encroaching deserts, as
a result of human mismanagement and overpopulation.
We will lose 40 to 100 species, and no one knows whether the number will be 40 or
100. today the human population will increase by 250,000. and today we will add 2700
tons of clorofluorocarbon to the atmosphere and 15 million tons of carbon. Tonight the
earth will be a little hotter, its waters more acidic, and the fabric of Life more
threadbare.
The truth is that many things on which our future health and prosperity depend are in
dire jeopardy:Climate stability, the resilience and productivity of natural systems, the
beauty of the natural world,and biological diversity.
It is worth noting that this is not the work of ignorant people . It is , rather, largely the
result of work by people with BAs ,BSCs, LLBs, MBAs and PHDs.
Elie wiesel made a similar point to the global forum last winter when he said that the
designers and perpetrators of the holocaust were the heirs of Kant & Goethe.in most
respects the Germans were the best educated people on earth, but their education did
not serve as an adequate barrier to barabarity. What was wrong with their values,
concepts rather than human beings, abstarction rather than conciousness, answers
instead of questions, ideology and effeciency rather than conscience.
-DavidOrr
From “What Is EducationFor?”
(winter 1991)

6. was ugly huh!, shockingly true, these are only some of the realities that we are
being faced today in 21st century.
But have you wondered what makes us to not to question-
IGNORANCE !
And we have our own excuses to numb our dragons, the best one is -“we have
got no time”
I have got to study to get marks
or got to go on the job for earning more money.
I have casted my vote and now it's government's job to make policies for me
And my family.
And thus it's acceptable for us to neglect our responsibilities.
Yet questions similar to these keeps on gripping our minds-
What do Barack Obama, Nicolas Sarkozy,Hu Zintao,Manmohan Singh
really do in those Multilateral Treaties? Why they are unable to create
sufficient jobs and income for everyone around the world?
What is this INFLATION and RECESSION? How does it happen that when
a stock market crash, I lose my job,food ,oil, health care and how come
products' prices go high due to inflation?
Is there any way that I can investigate the manufacturing process of
Products I use ,daily. Come on ! Advertisements don't show us how they
are made and dumped?

7. Seeing smiling advertisements faces numbs all the questions and we are
convinced that, yes world is going to be a better palce if we continue with our
present education , jobs and beliefs.
Mathew Taylor of RSA.org, who is one of the modern
minds of our century explores the fundamentals of our
behaviour in society that dates back in history when
foundation of our perceptions and knowledge of
spheres like Human Atonomy, Reason,
Enlightenment, Progress, Secularism And The
Centrality Of Politics- were laid upon. It was the minds
of scholars of that time who gave our society -The
Three Logics.
Science and technology- what is discovered is to be discovered.
Markets- what is sold is to be sold.
Bureaucracy -Rules.. Rules and New Rules..!
We forget to explore
✗ what these values are and what they mean to us?
✗ Do they still work for us?
✗ Whether they meet the challenges we face now?
So, we are not yet in the state of denying our modern culture, ideologies- our
rigid structure based upon science and technologies, global markets and our
bureaucracy.
We still think that
Science and technology- has discovered a whole lot of meaningful things
for man like machines, gadgets what has turned our whole planet into a
global village and made the work very easy for everyone and if we would
be having any collapse , then the same scientist will find another way out
and save the planet..! - NO BIG DEAL
Markets-There are periods of Bull and Bear (recession and boom), it's a
cycle and as long as we are having our basic amenities satisfied through
bunch of multinational's production. Then there is no problem with that
too.. ! - NO BIG DEAL
Bureaucracy- Curroption is everywhere, there is no hope for next
Mahatma Gandhi. Solution – be like them- curropted.
- NO BIG DEAL

8. If you are one of those NO BIG DEAL guys then this piece of paper is just
another waste of your precious time.
But, if you want to know rather than believing then come along with me and
QUESTION and try to answer them with the help of some of the most advanced
minds and concerned souls of our time who'll help us to look at the flipside of
the golden veil . I have tried to present the whole complicated jargon in such a
way that it becomes possible from a common man's perspective to look at the
Big Hidden Picture !
So, allow me to take you on a journey... journey to know the town we live in.
“THE GLOBALIZATION”

9. What is the GLOBALIZATION?
A global – business- economic perspective
If we look at this phenomena from Charles.W.L.Hill (Hughes M. Blake Professor of
International Business at the school of Business, University of Washington) then
It's a fundamental shift occuring in the world economy. We are moving
rapidly away from a world in which national economies were relatively
self-contained entities,isolated from each other by barriers of cross-border
trade and investment; by distance time-zones, and business systems. And
we are moving toward a world in which barriers to cross border trade and
investments are tumbling; perceived distance is shrinking due to
advances in transportation and telecommunications technology; material
culture is starting to look similar the world over; and national economies
are merging into an inter-dependent global economic system. The process
by which it is occuring is commonly reffered as theglobalization.
so it's that big and making us interdependent on each other? But why there is any need of
globalization ? Can't we remain self-sustained and isolated entities with our own culture?
Yes, we could and we had been also, till the fall of communism(authority from top to the
bottom) in the 1930's. It fuelled the world with unemployment and growing demands so there
was a need of integration at that time and for fulfilling this need different nation's
governments' policies swang toward a free market end of economic spectrum. Regulatory
and administrative barriers for doing business in foreign nations had come down, increasing
compitition and facilitating foreign investments. People were free to conduct their domestic
businesses in other countries and expanded globally.

10. So, the first need of globalization was
growing people's demands for more products on cheap rates
and governemnts had to develop a system through which they could facilitate such
transactions , so they invented international monetary system (for establishing values of
different nation's currencies) ,foreign exchange market (where they conducted there
international trade transactions) and association bodies like IMF- international monetary fund
and World Bank, first one to maintain order in international monetary system and the second
one to promote general economic development.
Individual businesses bacame international businesses using this system and since
everything was getting Globalized so there was a need to develop a work force who will run
the system and upkeep it which laid the foundation of our factory education system. People
were given choices to choose a particular field from a range of spheres of this system-
Science and technology
Business operations
Humanities
Religion etc.
Studying in that system would enable them in entering into this Global system, where they
could earn their salary in money and could get the things they wanted to have and thus their
demands were fulfilled.
It's the people who created a need for it by demanding more and more products and
services with less possible effort on their part.!
But the words Global, Economic system may be confusing.
That's what I thought about those textbooks definitions,well we will explain each technical
part of this picture, later in this presentation, in an easy and interesting way.
But before that it would be nice to see how we are immersed into globalization, in our daily
lives?

11. What is Globalisation?
Daily life perspective
In this global economy, an American might drive to work in a car designed in Germany that
was assembled in Mexico by DaimlerChrysler from components made in the United Sates
and Japan that were fabricated in Korean steel and Malaysian Rubber.
She may have filled the car with Gasoline at a service station owned by a British multinational
company that changed its name from British Petroleum to BP to hide its national origins. The
Gasoline could have been made from oil pumped out of well off the coast of Africa by a
French oil company that it transported it to the United states in a ship owned by a Greek
shipping line.
While driving to work, the American might talk to her stockbroker on a Nokia cell phone that
was designed in Finland and assembled in Texas using chip sets produced in Taiwan that
were designed by Indian engineers working at a firm in San diego,California,called
Qualcomm. She could tell the stockbroker to purchase shares in Duetsche Telekom, a
German telecommunications firm transformed from a former state-owned monopoly into a
global company by an energetic Israeli CEO.

12. She may turn on the car radio, which was made in Malaysia by a Japanese firm, to hear a
popular hip-hop song composed by a Swede and sung by a group of Danes in English who
signed a record contract with a French music company to promote their record in America.
The driver might pull into a drive-through coffee stall run by a Korean immigrant and order
“single-tall-non-fat latte” and choclate-covered biscotti. The coffee beans come from Brazil
and the choclate from Peru, while the biscotti was made locally using an old Italian recipe.
After the song ends, a news announcer might inform the American listener that anti-
globalization protests at a meeting of heads of statein Geanoa,Italy, have turned violent.the
announcer then turns to the next item, a story about how an economic slowdown in America
has sent Japan's Nikkei stock market index to 16-year lows.
This is the world we live in. It is a world where the volume of goods and services,and
investments crossing national borders has expanded faster than world output every year for
the past two decades.it is a world where the symbols of material and polular culture are
increasingly global: from Coca-Cola and McDonald's to Sony PlayStations,Nokia cell phones,
MTV shows, and Disney films. It is a world where products are made from inputs that come
from all over the world. It is a world in which an economic crisis in Asia can cause a recession
in the united states, and a slowdown in the United States really did help drive Japan's Nikkei
index in 2001 to lows not seen since 1985. it is alos a world in which a vigorous and vocal
minority is protesting against globalization,which they blame for a list of ills, from
unemployment in developed nations to environmental degradation and the Americanization of
popular culture. And yes these protests have really turned voilent.
From the above example you can relate yourself with the globalization in the form of products
and services you receive from it directly and indirectly.
So, if you have a relation with this system then it is imperative that it must be
effecting/affecting you also,that's the answer of your second question that you are connected
with globalization clearly on every level ,for every product and service ,for all your needs.

13. hmm, I got the basics of whole game of globalization -
✔ Our needs are satisfied by governments through businesses who again produces
products not only in their country but with the help of raw materials and services
around the globe- globalised products- Globalization.
Through this game of globalization,there is an easy availability of goods and services, world
wide for ALL who participate in it, I get McAloo tikki at 25 Rs. Only,MTV in rural areas, Sony
playstation ,Levi's jeans next to Khadi store, all my basic food items – ALL SO EASILY and AT
CHEAP RATES !

14. What's wrong?
Isn't that good? You were going to say something about the
“glitch” part in it, what's wrong with this system?
This is all what seems, the seen part of Globalization, what we
see in advertisements, government's “development” programs.
We believe in its credibility and we enter into this system through
our education, we set up businesses or opt for some job,we use
the economic system- brought to us by our governments, via
different policies about 'just' use of human and natural resource.
thus we are dependent on three things here
Education, then Businesses and lastly governments.

15. Before I explain the glitch at each level, I want to ask you when will you deny the existence
and credibility of this system at educational => businesses=>governemnetal level ?
Tell me, when will you say that “It Is No More Working”?
let me think-
About Education - when our studies are not useful for us in real time then - It Is No More
Working.
About Businesses- if they are no more providing the solutions we need ,doesn't support R&D
and fulfill only their profit objectives, then, - It Is No More Working.
And Governments- are not providing equal and just lifestyle to each and every group that
participate in globalization, then for me - It Is No More Working.
To sum it all up--
✔ Our Education system- why it is not useful in our real life? Causing huge amount
of unemployed graduates?
✔ Our Businesses-Apart from providing goods and services , what's wrong with
their inside and outside workings? Causing Recesion and Inflation over and over
again?
✔ Our Governemnts- What's wrong with their objectives? How do they implement
their wills?
✔ By all of above how I am affecting the Mother nature? What's my environmental
responsibility?
And lastly,
What's Hidden in Globalization?

16. GLOBALISED US
The seen
A 21st century kid, adored with funky outfit- looks cool ! :)

17. Globalised US
The hidden X-Ray
This is the X Ray of 21st century Guy- who is everywhere-Globalised,let's know something
about him,
He has got his Pinky lifestyle on top of his mind, what he affords from jobs and products-
which are brought to him by businesses. He has been made blinded by this daily lifestyle !
The face of jobs -product-business lifestyle has its veins to money -it's heart, facilitated by
greedy banks,(which has made him Fat) and are supported (belt) by ever changing
GOVERNMENTS and weak arms Stock Markets and Foreign Exchange Market .
It has got weak legs (foundation) but Strong shoes what he uses to Crush our NATURAL
AND HUMAN RESOURCE.
Does it look cool? Chaos to the 21st century Guy..!

18. You want to know how it comes to be like this?
What's on its mind?- Holy-factory-education system
with
Seetha Ananthasivan who is the
director of Prakriya Green Wisdom
School and Bhoomi Network,Editor
of “Eternal Bhoomi” Magazine.
What's its face?-Consumer-Employee
The educated product from schools enters into job and businesses,it produce as well
as consume the products,is that all?
What's its body?-Businesses and governments
After moving from the educated employee and consumer, let us explore more about how
businesses and governments work?
in this part, Economical needs are exposed by Jane D'Arista
who is a research associate with the Political Economy
Research Institute (PERI), University of Massachusetts,
Amherst.For more than thirty years, Jane D'Arista has been one
of the most insightful analysts of financial markets and
regulation.
And Environmental needs are exposed by Annie leonard
Annie Leonard is an American proponent of sustainability and critic of
excessive consumerism.Leonard is best known as the creator
and narrator of the animated documentary about the life-cycle
of material goods,The Story of Stuff.

19. What's on its mind?
Who would deny that our thoughts are our actions, the most responsible thing for today's
actions is education- but is it as modern as we proclaim our lifestyle?
It's a Holy-factory-education system-
Seetha Ananthasivan, who is the director of
Prakriya Green Wisdom School and Bhoomi
Network,Editor of “Eternal Bhoomi” Magazine
digs the whole educational scenario at
deeper unconscious levels ,
She questions-
“Educational planners designs content for various courses- but do we take into account the
power of what children learn unconciously?”
Most students – and Most of us – hold some or all these notions and beliefs subconciously as
a kind of template for the way we live life:
✔ A narrow, short term definition of success
✔ A self seeking way of life as legitimate
✔ Means are not as important as ends
✔ A good life is a life of high consumption and minimum physical labor
✔ Think within a boundary- not of the whole
✔ Put up with a split inner world
✔ Accept authority figures unquestioningly

20. These are a few of the meta frame works for our living today there must be more and they
have their “inner” and “outer” ecological consequences. Taken together they can keep us
dead locked in illusion and conditioning that makes it easy for us to go into denial or withdraw
into “business as usual” when confronted with huge and complex crisis like climate change.
Perhaps understanding them will help us awaken to the importance of adding new
dimensions to education- especially of fostering the ecological self within and engaging in
ecological wise ways without.
A narrow definition of success-
For ten to fifteen years in school and college, life revolves
around tests, exams and marks. Marks determines
success in school life and money determines success in
later life.
This narrow definition of success is an essential part of
the prevalent development paradigm- but it has led to an
impoverishment in many other spheres, those of artistic
sensibility, holistic thinking and spiritual search.
It has effectively blinded us to the civilization. Most importantly following the western model
determined by Macaulay,Descrates, Newton and Bacon. This narrow definition of success has
completely undervalue the ecological widom of our culture, which could have provided the
model not only for education but also foe sustainibility.
Selfishness is legitimate- allowed
Through out the years of formal education, a student is used to bothering his books, his
asignments, his tests, etc. never before in any age, have children and youth been so
thoroughly groomed to be consumeristic and immersed in self-interest. Without opportunities
to “learn” co-operation , since it is not required for school tasks- children get the implicit
message that selfishness is fine as a way of life.
As einstein said
“ This crippling of individuals I consider the worst
evil of capitalism- our whole educational system
suffers from this evil: an exaggerated
competitive attitude is inculcated into the
student, who is trained to worship acquisitive
success as a preparation for his future career. “

21. Means are not as important as ends-
Parents and teachers encourage rote learning and tutions as the means to score high marks
in exams without the understanding of or interest in,what is learnt.A student may opt for a
medical seat if she can't get in to the engineering without worrying about whether she is
interested in healing or caring for other's health, the lucrative career – the end is all that
matter.
Innumerable examples exist of unethical behaviour they may have co-evolved with our
factories governments and malls, but aren't they fostered by education?
A good life is a life of high consumption and a minimum physical work-
At school , children spend almost all their time in
book related leasrning. In mainstream schools,
doing physical work as a part of learning is unheard
of. Very little part is allocated for experimental
learning or even for games or sports,.
Children in many homes in cities today are rarely
required to do any physical work in the house- either
because parents wants the child to focus on studies
and “spare” the child such distractions. The
hangover of our caste system perhaps plays a part
as well in looking down on physical work.
The TV and movies shows celebrity promoting a
high consumption life-style, subtly encouraging
everyone of us to consume as much as we can.
Children pick up dreams of good life which makes it difficult for them to comprehend the need
to think in fresh and natural ways, to critique the system and create new visions for
sustainability.
Think within a boundary- not of the whole
Wear blinkers, follow instructions. Do not question, be a
good soldier- don't think for yourself. See connections only
selectively do not see long term connections or connections
that are many links away. These are the messages that
children pick up unconsciously in school when they have to
focus on a subject without given a choice and lessons foa a
day, a day after day for 10-18 years of their life.
Schools and colleges have designed syllabi, which are
content heavy. The unintended consequence is thatther is no
focus on critical thinking and taking initiative for as larger

22. cause even if a few try to see the larger picture, most of us have forgotten to respond to real
life- issues all around us. Wearing blinkers also means that we don't think for whole school,
the whole community or the whole earth- often not even for the whole family.
Put up with a split inner world
The school system and parents wants all children to
learn same subjects without considering the child's
talent and innate interests.from years of tolerating work
which we do not value or like , we learn to live with an un
resolved lack of alignment in our thought, feelin ga nad
action. This split spills over into many things in life. I may
have no interest or enthusiasm for my work, bit will
persuit in it without looking for alternatives. I may
understand my child love for music, but may push her
into more science tuitionsinstead and deny her music
classes. This ability to live with a split inner world. The
pathology within- is reflected in the world outsidethat we
have created.
Unquestioning acceptance of authority-
The class seating system seems designed to hard
over power to the authority figure and to make
children submit to the system, when the school
system is almost universally accepted, it's
fundamentals are not questioned.
Our centralised authoritarian system may possibly
wish good education for all, but it simply kills initiative
and the ability to question and hence we look for top-
down solutions to all problems.
Therfore hopefully we can also search for ways in which education can stem the tide. Many
educational thinkers believe this is needed and possible to introduce new paradigms in
education and most importantly make it such comprehensive that it is valued for the ends it is
used for.
Now all what further Generates from it ,is in its mind..!!

23. What's it's Face?
He is the one who is the target from both sides, he is the consumer, he is the employee too.
Consumer-
He is the one who is blinded and distracted. How?
Every week a new product is designed by businesses
and their need is fed upon our minds with the tons of
Advertisements-
Hey ! “You suck”- Buy this and Rock..!
We watch 153 hours of Television and 10,000
advertisements a month..!
and all this is thrown to us so secretly that we would not ever know that most toxic food today
is not in the countries like Somalia- but it's human breast milk.
• More than 500 products sold in the U.S. contain ingredients banned in cosmetics in Japan,
Canada or the European Union.
• Nearly 100 products contain ingredients considered unsafe by the International Fragrance
Association.
• A wide range of nanomaterials whose safety is in question may be common in personal care
products.
• 22% of all personal care products may be contaminated with the cancer-causing impurity 1,4-
dioxane, including many children’s products.
• 60% of sunscreens contain the potential hormone disruptor oxybenzone that readily penetrates
the skin and contaminates the bodies of 97% of Americans.
• 61% of tested lipstick brands contain residues of lead.

24. Employee-
He is the one ,who is told by his education to abide by the
rules of Game, don't question- work harder ,earn more money
so that you can afford the American Dream and then You will
be happy.
He is the one who enjoys McDonalds culture without getting a
sound that farmers who produce the raw matrial for the
company are commiting suicides at an alarming rate due to
debt burden and hunger.!
and even after abiding the rules of the game, he is the one,who is the victim of INFLATION
and RECESSION having no job and money's value-security when he hits by Financial crisis
and Stock market crashes..!
But some may argue that not all the businesses are bad, there are lots of good businesses
also but question is not whether your business is bad or their business is bad. That's a
different issue.
All I am telling you is that these things are happening..
-two lakh farmers are committing suicides in third world countries while Mcdonald is earning
more than $22.8 Billion in revenues.
-Despite using all those “Natural” and “Pure” cosmetics and food items- human breast milk is
the most toxic.
-INFLATION and RECESSION is still there and may hit us any minute.!
And how come is this happening?
By our present system of Education, Businesses and Governments- the products we either
demand or being imposed – with “Take Care” slogan..!
when we enter into jobs for earning more money even knowing that recession may take all
that from us- we are dreaming the same thing, doing the same thing and when they take
away everything then we complain the SYSTEM- not knowing what are the Problems in this
system that we accept so dearly ?

25. I want to ask you-
how can it is possible to even move towards solutions without knowing that problem is us?-
our own Face!
How we have acquired such ugliness? Who has supported it?
It's indeed the body and clothes of it- Businesses and Governments are bodies and economy
is their clothes.
What's its body ?
how businesses are possible to give us such a ugly face? Here we will see what do
businesses need to work?
Businesses needs-
Businesses need two most important things to get themselves moving
First is Money -Economical need
let us flip the picture to know the
first need -Money !
Money comes from Governments
move to banks and
has its value at Foreign exchange
market and Stock markets .
Second is Raw material for
Production and Human labor-
Environmental need.
Governments own the natural
resources, it makes the policies for
businesses about how would they
use country's natural and human
resource.
This relation joins us-the people to businesses and governments, it makes for us a
necessity to watch news ,the next budget, stock market situation.

26. but why I need to know about Banks ,Stock markets and Foreign exchange ,Natural and
Human Resources– blah, blah.. ?
Because they are giving you Freaky Haircuts and you don't know what's wrong with them?
To get the answer for-
Q- How come the products and services you buy go highly expensive with the one word in
news- INFLATION ?
Q- You lose your job and your Boss go out of capital (bankrupt) with one word in news-
RECESSION ?
Q-To suspect that the money towards you are lured 24/7 , can be the cause of above
two,when the regulators of money- Banks and Governments fail or simply Lie to People ?
Q- To know what lies in your cosmetics and food, how they are processed and dumped?
that's why you need to know how businesses work , how do they fulfill their both economical
and environmental needs so that people can have products and lifestyle or have recession
and inflation, environment degradation on other side.

27. What's its body? -Economical needs
Q-What is Money?
Q-What is Money, Governments and banks?
Q-What is the relation between money and businesses? from banks ,stock market and foreign
exchange market (FOREX)?
, you will get on your own the connection of
1. INFLATION ==== Money,Governments and Banks
2. RECESSION=== Money and Businesses
What is Money?
As the good that makes exchange possible, it's the
foundation of every economic activity. In the earliest times,
people traded goods and services directly. This form of
exchange is known as "barter."
But barter had limitations in the marketplace.
People perceived pretty quickly problems with that direct
exchange: if you wanted, for example, fish and you had
wheat, but the people who had fish didn't desire the wheat,
you were stuck. Unless you went out and found some other
good, possibly berries, that everyone in that society
consumed. Then you would trade the wheat for the berries
in full confidence that you could turn around and trade the
berries for the fish or anything else you desired.
Eventually, the most widely accepted goods in a society became valued for their use in
indirect exchange. Money is simply another name for the most generally accepted medium of
exchange.

28. 'Money is simply another name for the most generally accepted medium of exchange.'
Through our history, many goods
have served as money. Feathers from
the Quetzal birds were used for
exchange by the Mayan Indians up to
the 15th century in Central America.
Tealeaves compressed into bricks
were traded in East Asia through the
1800s. Wampum shells were money
to North American Indians, while
early American colonists traded
beaver pelts, which had a high value
both at home and abroad. Metal
America coins first emerged in Greece and
You might think back, we can think back to a time
Asia Minor during the 7th century BC.
when iron was used as money, for example in
Africa, but imagine going into the Sears-Roebuck
Gold and silver were valued for their
and trying to purchase, say, a lawnmower for use in beauty and jewelry and the
$350. That would take a ton of iron, whereas it decorative arts. They were durable,
only takes an ounce of gold. easily divisible, and limited in
supply. These precious metals also
Origin of coins and paper money (notes)- had a high value-to-weight ratio,
In 1536, less than fifty years after Christopher making them easily transportable.
Columbus set foot on the American soil, a
Spanish mint in Mexico City struck the first coins made in the New world. These silver coins
eventually found their way into the British Colonies. Great Britain's mercantilist policies
deliberately tried to keep precious metals out of America, so the Spanish milled dollar became
the unofficial currency. It was often divided into eight pieces for smaller transactions, hence
the term "pieces of eight," with 1/4 of the coin being "two bits."
In 1792, Thomas Jefferson adopted the dollar as this country's official monetary unit.
He looked around. He investigated to see what the American people were using, and that was
the dollar.
So that's why the dollar became the standard in the United States. And we went onto a gold
and silver standard, and started minting gold coins with the American eagle, a $10 gold coin.

29. What is Money-(gold) & Banks?
The Gold standard ?
As early as the 16th century in Europe, goldsmiths
stored gold coins for their customers for a fee and
issued receipts for the gold to the depositor. Thus
began the use of paper as money.
In other words, if you came in and deposited 10
ounces of gold for safekeeping, you got back receipts
in the amount of 10 gold ounces and those receipts
entitled you to instantaneously redeem that gold.
thus,there was an implication,when people exchanged those
receipts with each other, any one of them could go to the Gold to money
goldsmith and could got their valuable gold- genuine scenario These receipts soon
of money to gold conversion- termed safekeeping. became widely accepted
as means of exchange,
But it was assumed that there are equal amount of money since it was easier and
notes moving in economy as the value of gold is stored with safer to use the receipts
bankers. for significant
So ,These first bankers then took that process one step transactions. This was
further. the origin of banknotes
as money substitutes.
The origin of Inflation -when bankers started printing money-
In effect, if the goldsmith had 1,000 ounces of gold
what is Inflation? (Here regarding and 1,000 ounces of legitimate receipts being held by
gold-Standard) the depositor of that gold, he could increase his
In it's most traditional meaning, profits by merely printing another thousand ounces
When people had more money worth of receipts, and lending them out. In which
but less gold to convert it, then case he would effectively get fifty-percent reserve
there is inflation, it is also called banking, or fractional reserve banking. Only a
inflationary money because it fraction — 50% of the receipts — were now backed
doesn't fulfil bankers' promise to by gold.
convert it into gold.
There was no longer a one-to-one ratio of paper to
gold. Now there could be three or four pieces of
paper in circulation for every unit of gold in the vault. These bankers were no longer simply
storing or warehousing gold for a fee, they were artificially inflating the money supply
and loaning out these phony receipts at interest. This system became known as "fractional
reserve banking" and was later transported to the early American colonies. It formed the
root of the American commercial banking and ultimately the Federal Reserve System.

30. Isn't it fraud with people's gold and illegal?
This is a fraudulent system, it's not allowed in any other business. If you had a grain warehouse that had
loaned out the grain it was supposed to have in storage, that's considered criminal, and the guy would go
to jail. But the banks are the one industry that's allowed to get away with this and to profit from
it.
It's Legal !!!
Government started
printing money- what
is a Federal Reserve
System?
Moving from Goldsmiths to BIG
banks, Foundation Of Federal
Reserve Bank-
Alexander Hamilton became the
first treasury secretary and in 1791
set up the first Bank of the United
States as America's central bank
to expand the supply of paper
money for the benefit of the government and the commercial banks, thus officially inflating the
money via fractional reserve system.
From Federal Reserve System to Present Federal Reserve Bank:
In 1908, the National Monetary Commission — headed by John D. Rockefeller Jr's
father-in-law, Senator Nelson Aldrich — was set up to push for a central bank.
In November of 1910, under the guise of a duck-hunting trip, six men took a secret
train ride to an exclusive private club on Jekyll Island, Georgia, to write a Central
Banking Act. The classified gathering read like a who's who of American banking.
There were two Rockefeller men: Aldrich and Frank Vanderlip of the National City
Bank of New York; two Morgan men: Henry P. Davison from Morgan Bank and Charles
D. Norton, president of Morgan's First National Bank of New York; Paul Walberg, a
Kuhn-Loeb partner; and Assistant Treasury Secretary A.P. Andrew, who was friendly to
both camps. They spent a week at the luxurious club as Morgan's guests, crafting the
proposal that would form the basis of the Federal Reserve System. It would be three
years before their vision was realized.
There are twelve regional reserve banks concentrated in the East and in the Midwest. The
board of governors of the Federal Reserve controls and coordinates their activities. The board
is made up of seven members appointed by the president.
It appeared to be a sound system,but the control of Fed's open market committee was in the
hand of Morgan protégé Benjamin Strong.

31. How do they regulate these different banks? What are there powers?
First power of FED- They continued with the power of printing more money, in the face of
“The Federal Open Market Committee”-
What was the The Federal Open Market Committee? What do they do?
The Federal Open Market Committee, now based in Washington, directs the Fed's most
important instrument of monetary policy: the purchase and sale of government securities on
the open market. To increase the supply of money and credit, that is "to inflate," the Fed buys
government securities from a few handpicked firms with newly created money. To tighten
money and credit, the Fed sells securities. In this, it can act on its own discretion.
From buying government securities which is also called quantitative easing, it has following
powers too!
When the Fed was established
Second power of FED-
in 1913, it cut reserve
Another device the Fed uses to control the amount of
requirements in half over the
money in circulation is setting the discount rate: this is the
next four years, doubling the
interest rate charged to member banks when they borrow
money supply by the end of
short term from the so-called "discount window." If the Fed
World War I.
lowers the discount rate for its loans, commercial banks
will likely borrow more from the Fed. This increases the
Although the US was still on the
amount of funds banks have to lend. Bank credit thus
gold standard in 1913, it was
becomes cheaper, as reflected in lower interest rates on
quickly eroded as the Fed
bank loans and credit cards. The increase in funds
continued to expand the money
available for banks to lend also increases the amount of
supply. The first step was
money in the economy.
backing Federal Reserve notes
by only 40% in gold, allowing
Third power of FED- the money supply to be
and The Fed can also manipulate the nation's money increased two and a half times.
supply by raising or lowering the reserve requirement. The inflationary effect to
Because Banks are required to set aside a percentage of fractional reserve banking was
their deposits as reserves to meet depositors' also heightened by the central
demands(it's just a percentage- not the whole of bank.
depositor's money, as in 100% gold standard happens). Inside faulty governments,
faulty banks, faulty loans and
credit cards-
okay, till now we have learnt about the
✔ history of money,
✔ what is the gold standard?
✔ Which was the first government-established-bank?
✔ And how today's most important country's (United states) apex bank The Federal
Reserve bank came into existence?
✔ What are it's powers?

32. That all sounds so regulated, everything seems to be fine till now, they are creating money,
regulating it to banks and then to people they are even managing the money supply then what
is wrong with it?
"The Federal Reserve System virtually controls the
nation's monetary system, yet it is accountable to no one.
It has no budget; it is subject to no audit; and no
Don't Look here Congressional Committee knows of, or can truly
supervise, its operations."
These are the words of the late
professor Murray N. Rothbard,
economist and academic advisor of the
Ludwig von Mises Institute .The
institute is dedicated to the ideals of a
free market and sound money.
All that Glitters is not GOLD-
From Powers to Disasters
Power to Disaster 1- INFLATION
they can print more money,any time, without backing it by gold, such a money is further
multiplied into “checkbook” and Credit card money-all these printed notes, checkbooks and
credit cards are available to people as “money” in the market and there is overflowing of
“money” but no sufficient goods- results =more buyers less products= high prices of less
products= also called INFLATION.

33. From Power to Disaster 2- Interest rates
It handles the interest rates of those banks by whom people take loans and credit cards,
suppose when government had excess printed money with it, it had lowered the interest rates
so that more banks could borrow it and banks provided it further in lower interest rates- loans
to people like you and me and even governments.We were so happy to get lower interest
loans by HSBC or CITIBANK, ICICI, but all of sudden there is a panic in the market that notes
or treasuries that government is selling are not backed by gold. They are creating money out
of thin air then there is no value of dollar- government is in high Debt (by all the loans it gave
to banks and to people through banks) then what it will do?
To get back on its feet it will increase the interest rates of its loans ,which would meant banks
will have to pay more interset to central banks what banks would get out of increasing the
interest rates of people's loans- burden on People who were enjoying their cheap credit.
From Power to Disaster 3-Lowering the reserve requirement
when people deposit their money in banks, Banks are required to set aside a percentage of
their deposits as reserves to meet depositors' demands, but it is entirely in central bank's
hand to decide what percentage will be there in deposits?
As we all know, not 100% gold nor equivalent deposits are always there in banks safe ,from
the deposits they have with them and the money they lend -loans are always greater than
deposits,so , the Central banks can always lower the reserve requirement for banks and
increase the cheap credit-what causes INFLATION.
Why would they want to increase the cheap credit?
For two reasons- either they themselves wants to take cheap credit -for any benefit- from
financing wars to help a falling compnay save (also called bailout).
Or they want to maintain the demand of dollars in world.
Why do they want to maintain the demand of dollars in the world?
So that people keep buying it from their savings and the status-quo of dollar is maintained
and they can further print more dollars reasoning that people are demanding it-while in
disguise they are financing their wars, earning profits in each step.
But why do all the people around the world keep on demanding US
dollar? Why it is so important? Even knowing that central banks
can print the US dollar out of thin air and nobody puts a check on
it, in that case their US dollars will lose all their value,what's the
need?

34. That's the discussion on another topic-
Why US dollar is so important? Can US
Dollar collapse?”
For understanding this, we need to listen
Jane D'arista
who is Jane D'arista?
Jane D'Arista is a research associate with the
Political Economy Research Institute (PERI),
University of Massachusetts, Amherst where
she also co-founded an Economists’
Committee for Financial Reform called SAFER,
i.e. stable, accountable, efficient & fair reform.(http://www.peri.umass.edu/safer/).
She is also a research associate at the Economic Policy Institute. Jane served as a staff
economist for the Banking and Commerce Committees of the U.S. House of Representatives,
as a principal analyst in the international division of the Congressional Budget Office.
Representing Americans for Financial Reform, Jane has currently given Congressional
testimony at financial services hearings. Jane has lectured at the Boston University School of
Law, the University of Massachusetts at Amherst, the University of Utah and the New School
University and writes and lectures internationally. Her publications includeThe Evolution of
U.S. Finance a two-volume history of U.S. monetary policy and financial regulation.
Here is what she has to say about US dollar- the Key currency of World Trade

35. from this statement we can derive that how bubble created by printing backless money when
goes on as Cheap Credit from banks to governments to people, if burst-cause a world-wide
shrinkage in Credit in other words- the financial and economic collapses.
I know it's complicated,because your question is-
But why do all the people around the world keep on demanding US dollar? Why it is so
important? Even knowing that central banks can print the US dollar out of thin air and nobody
puts a check on it, in that case their US dollars will lose all their value,what's the need?
See by yourself in the coversation with her-
What's the relation of US dollar-a key currency and Other currencies?
As we all know that before the federal reserve system there was a system of converting gold
into valuable money and to further use that most accepted currency as trading means. So
every country converted their “found” gold into their currency and there were so many of them
now like pounds of Britain, Euro of Euro zone,Yen of Japan. Then there was another problem-
how to trade internationally? What should be the key currency?
Then the United states stepped in and introduced the international monetray system of semi
gold-inflation ,after the world war-II, which is still here in 2011.
Authorised-key currency-US dollar
What is the semi-gold inflation system?
Under this system, US dollar was made (authorised) to be the only currency in the world in
which trade can be done by each country on earth.which has made it the all important of
all, now if any business man wants to buy anything out of his own country- which most of the
globalised businesses do usually, they had to convert their currency into US dollars from their
country's Central bank which made it essential for the government of that business man to
hold US dollars in its foreign currency reserve so that it can convert them according to the
business needs of its people.
How it was done?
By authorising US dollar be the only currency , convertible into gold by the Federal reserve
bank ,United states .The rate fixed for dollar to gold conversion was $35=1 ounce(approx 28
grams) of gold.
Now, if any country is willing to do international trade with its neighbor,it would have to earn
US dollars and made its foreign currency reserves in US dollars because it was the only
currency convertible in gold by the only bank The Fedral reserve bank.

36. And what was the way to earn that only currency?
Two ways are there-
Either EXPORT your goods to US or simply BORROW U.S. DOLLARS by purchasing it's
Governments treasuries.
US has been benifitting in both ways as, all the countries started exporting their goods to it-
there is no shortage of cheap goods (why cheap?- later) inside US.
And governments started demanding US dollars by borrowing it through US treasuries(loans),
what increased its value in open market(foreign exchange market) where value is determined
by Demand of a currency,
Also to serve that debt they had to earn more US dollars- two ways again- Take more debt to
service previous debt or export the goods!
It's a vicious circle.it permanently created the demand for US dollars and made it most
important currency.
So, it is the lifeline of all the global businesses who provide people jobs all around the world
further providing products to each and every person- globally.
That's why Us Dollar is so important.!
So the BIG question is
“Can dollar collapse? What will happen if it will collapse?”
Yes, it can collapse if they- who create it, fail to convert it into gold, it will lose all its value.

37. How is it possible?Did it ever collapsed? What
happened when it collapsed?
In 1930- the era of GREAT DEPRESSION,
dollar collapsed, in 1971,it collapsed again
when they failed to convert all the US dollars
around the world into gold since there wasn't
enough gold for conversion as it was moving
around in the market ,caused inflation.
Why there were extra US dollars moving into market?
Because people were demanding it (key currency)and it was in the hands of Federal reserve
system to print money.People were totally dependent on their credibility that there is enough
gold to support that currency they are going to print, but the bankers fooled the people, this
time the whole world with US dollars in their hands, was hit badly.
In 1971, President Richard Nixxon closed the window of converting US dollars into gold,coz
they simply ran out of Gold.
What was the after effect of it?
As Nixxon denied the payment system, he handed the monetary
system into the hands of private banks-like we see today,
CITIBANK,HSBC etc.and they started speculating-done for
earning profits, about the values of different currencies- including
US dollar,
causing the collapse in the dollar value in 1970's when Paul
Aolph Volcker( Federal Banker and Economist) rushed in and
incresed the interest rates of all the US dollar debts- GIVEN to
other countries up to 20%, to earn more US dollars (FED used its
power to Disaster-2)- to serve it's own debts or public debts.

38. So the after effect of it was-
✗ People lost all the value of their investments, savings ,stocks that were in US dollars.
✗ Investments ,savings and stock capital is
the lifeline of all the businesses around What does the dollar devaluation or
the world so when businesses lost their “collapse” mean to you?
money value, they could no longer buy
the raw material nor pay the wages to its the devaluation of the U.S. dollar
labor- people lost jobs- there was a means a decline in the purchasing
acute shortage of products- inflation power of the dollar, which leads to a
skyrocketed. decline in living standards. For
✗ Countries who were made to take laons example, if the US dollar declines 40%
in US dollars by the IMF(International and you had a million US dollars, the
Monetary Fund) had to pay back it in million dollars will only buy
increased interest rates( from 1 or 2 %-
$600,000.00 worth of goods and
20 %)
services. You would have lost
✗ Throwing them into hell further- now $400,000.00 in purchasing power.
they had to earn more US dollars- either
by exports or taking more US loan. Any type of investment in dollars, such
✗ What happened inside those countries
as saving accounts, saving bonds,
that had taken loan?-suck your natural annuities, pensions, etc., will suffer
resources -make products and export so from this decline.
that you can earn those dollars to pay
back the high interest loan.
Okay, so what I do get is that- US currency has been made the Main( Key )currency for doing
world trade which creates the demand of it, but all didn't went well with it, when it didn't serve
it's promise to be convertible into gold- resulting tons of inflationary money invested in funds,
worlwide- went valueless-causing Recessions, and hit the whole world-simply because
people were holding US dollars in their hands,everywhere- Thanks to the Key currency-
system.
Exactly.!

39. Then why don't they scarp it? Are US people benefitted by this system?
They might thought so, when they implemented this US as key currency system, thinking that
the whole world will start exporting goods to it- which would make products cheap in US and
US people without producing anything will enjoy cheap products.!
Then has it been so?
No, not exactly, but entirely opposite of it has happened because of two things-
1) People inside the US were being told to buy only, that is not to produce- why?.
2)To buy products, they were not given increased wages, but cheap credit- why?.
Now the mystery lies in two statements that
why they had been told to buy only and that is too not by wages but by cheap credit?
Why -BUY only?
It dates back in history when National Association of Manufacturers(Ohio,US), complained:
“You've(FED) driven up the value of the dollar to a point where we can sell nothing abroad
and we can't sell anything in our own country-due to excessive cheap exports to US”. They
tried to bring down the value of the dollar toward the middle of the 1980s, but not sufficiently.
And there was no real response., dollar had been made overpriced (for the reasons we'll
discover later)
so, what US manufacturers did?,
They moved to the countries where there
was cheap currency and cheap labor and
started manufacturing things in foreign
countries because dollar in the united
states was too high driving their costs high,
cheap country would mean cheap costs
and they could now come back in US and
sell those goods on competitive rates to
earn larger profits.
But that was not all, due to businesses
moving out of country,people didn't have
jobs with them, lacking money to buy those
goods that were offered to them,by exports
and their own manufactures.

40. There was no demand of goods, causing no demand of US dollar in open market, which
would mean the collapse of US dollar and economy.
Take Cheap credit-
So the US governmnet played its move and provided people cheap credit - and they can keep
buying the products and dollar remain in its value, countries keep on exporting goods, there
is no shortage of good quality products in US and there is a demand of US dollar in Market .
How did they provide cheap credit?
It printed money- lent it on less rates to banks, banks lent it further more on less rates by
checkbook money and credit cards- causing boom in initial years when US people bought
rapidly the exported goods,

41. but soon after hitting the news that government is in great debt (debt means no backed
curreny or gold is there with the government-all printed notes are now debt) people-money
lost its value, they could no longer buy products with it, all the attraction of trade with US
faded away and there was a Financial crisis(2008-09) and Recession inside the Country and
outside the country.
Fiat Money- Quantitative easing- the hollow attraction of US dollar-
quick recap>>>
Previously, Dollar was the only key currency which was convertible into gold but when Nixxon
scrapped this system in 1971, then there was no demand of US dollar causing great
depression within US,
and then US made its people rich (by providing cheap credit) which attracted trade to US,
causing demand of US dollar again in the market.
But this was crashed again with the financial crisis of 2008-09.
now the US has been tackling with this problem, governments are investing in other
countries,trading with their citzens by buying their currencies- US is not the only player now.
To move out from the deflation- recession what do they do now?
What is Fiat Currency?
Currency that a government has declared to be legal tender, despite the fact that it has no
intrinsic value and is not backed by reserves. Historically, most currencies were based on
physical commodities such as gold or silver, but fiat money is based solely on faith.
Most of the world's paper money is fiat money. Because fiat money is not linked to physical
reserves, it risks becoming worthless due to hyperinflation. If people lose faith in a nation's
paper currency, the money will no longer hold any value.

42. Money thus produced out of faith is used for Quantitaive easing,
what is it?
Quantitative" refers to the fact that a specific quantity of money is being created;
"easing" refers to reducing the pressure on banks.
Concept of Quantitative easing-
Ordinarily, the central bank uses its control of interest rates, or sometimes reserve
requirements,to indirectly influence the supply of money.In some situations, such
as very low inflation or deflation, setting a low interest rate is not enough to
maintain an adequate money supply, and so quantitative easing is employed to
further boost the amount of money in the financial system.This is often considered
a "last resort" to increase the money supply.The first step is for the bank to create
more money ex nihilo (“out of nothing") by crediting its own account. It can then use
these funds to buy investments like Government bonds from financial firms such as
banks, insurance companies and pension funds,in a process known as "monetising
the debt".
So, what really happens in quantitative easing, governments print more money, out of thin air,
then they either take debt from banks or pension funds companies- increasing its debt.
make it highly valued by showing its economy profitable – which creates demand of currency
(dollar or any), now people buy it, they use it in the way of doing trade with that country. Easy
supply of goods and services is maintained with in the country- globalization maintained!

43. But Alas !, it is a bubble with money produced out of thin air there is only a PROMISE of
economy as a profitable one-Faith.
And what happens if same US economy is going in $14 trillion deficit?
To pay the promised high interest on given-debt -
they can increase the taxes, reduce their public welfare spending,
(to reduce the expenditure and increase the income within the country)
or they would increase the interest rates of third world country loans or simply create money
out of thin air but they would pay you your high interest debt on the money that you had lent it
or going to lend it- that's the Government security brought to you by Quantitative easing.
Why don't US Government and Federal reserve scrap this system?
Because there is no other system for them- they are trapped by previous debts
We can't scrap quantitative easing-What do they say in news?
“because this is the only solution to fight Recession and deflation-stagflation”
for them it's legitimate, they say first there is deflation in a country because CPI (Consumer
Price Index) says so
while actually food prices , gas prices, health care prices, tuition prices, taxes, subway fares,
stock prices and bond prices are always higher than a year ago.
so what you are telling me is that the fed thinks prices are going down, when in fact they are
going up?
Yes.
and they think during the recession, with the high unemployment, it is better if the things
people need to buy cost more money?
Correct. According to the ben bernanke(Federal reserve chief), the inflation will create the
jobs and improve the housing market, it will create demand for US dollar and people would
come and trade with US- cheap products and More jobs.
has this ever been tried before?
yes. just last year the fed tried the quantitative easing with 2 trillion dollars.
did that create the jobs?
no.
did it help the housing market?
not at all.
did it help anybody at all?
yes, it helped the goldman sachs(an investment bank,which gives loan to US for its printed
dollars for high interest).

44. how much of the money are they printing now?
600 billion dollars.
so even though the first 2 trillion did not create the jobs or improve the housing market, the
fed decided to do another 600 billion anyway?
yes.
who put the ben bernanke in charge?
the ben bernanke was first appointed by the president bush. then he was reappointed by the
president obama.
but wasn’t the president obama supposed to bring the change?
yes.
how is putting in charge the same fool, who has been wrong about everything, the change?
well, under the president bush the ben bernanke only blew up the American economy. Under
the president obama, he is working on blowing up the entire global economy.
that does not sound like the change we can believe in.
definitely not.
who else supports the ben bernanke?
most economists around the world think the quantitative easing is very dangerous.
does anyone think it is a good idea?
yes. the people at the goldman sachs
Oh my god, do these people don't have shame?
When you are lying to people for more than 70
years, you forget about shame!
The point that needs to be repeated over and over
again is that they know they're creating a bubble,
they know the bubble's going to burst someday,
but it doesn't matter because the guys that are
doing all this are cashing out at every step of the
way, either through bonuses or other ways.
Federal reserve bank and US government-

45. we can't scrap this system-2) what is happening in those big buildings?
So how in the world did things get to the point where the Federal Reserve feels forced to
recklessly print gigantic piles of money?
Well, it didn't happen overnight. Back during the 1980s and 1990s there were many people
that desperately tried to warn about what would happen if U.S. government debt was not
brought under control.
Unfortunately, our politicians did not heed those warnings.
Today, the U.S. national debt has reached a grand total of $14,137,541,098,872.71. It is 14
times larger than it was just 30 years ago. It is the largest single debt in the history of the
world.
So why don't our politicians just balance the budget now so that we don't keep having to
borrow so much money?
Well, there are some huge problems.
First of all, when you combine entitlement programs such as Social Security and Medicare
with interest on the national debt, it comes to approximately 64 percent of all federal
government spending.
But that is not the bad news.
In the years ahead, entitlement spending and interest on the national debt are both projected
to absolutely explode.
We are rapidly approaching a time when spending on entitlement programs and interest on
the national debt will be significantly greater than all of the revenue that the federal
government brings in each year. All federal revenues will be spoken for even before a single
penny is spent on defense, education, running the government or anything else.
Either entitlement programs are going to have to be seriously reformed or the U.S.
government is going to have to come up with a massive amount of extra money from

46. somewhere or the U.S. government is going to have to borrow increasingly large piles of
money from someone.
Unfortunately, there are no easy solutions and most of our politicians are scared to death to
touch entitlement programs because it will mean that they will lose votes.
But our entitlement programs were never meant to be as massive as they are today. Back in
1965, only one out of every 50 Americans was on Medicaid. Today, one out of every 6
American is on Medicaid.
Obviously something has to be done, because the debt that we are passing on to future
generations is absolutely criminal.
For example, every single child born in America today inherits
$45,000 in U.S. government debt.
Isn't that lovely?
Of course our liberal friends believe that the answer is just to raise taxes.
Oh really?
The truth is that our taxation system is deeply broken.
No tax income :(
Small business owners and middle class Americans are being taxed into oblivion while
those at the top of the food chain often pay no federal taxes whatsoever.
For example, did you know that Citigroup did not pay a dime of federal taxes in the third
quarter? Meanwhile, their executives continue to bring in bonus packages worth millions.
Did you know that even though Boeing receives billions in federal subsidies every year and
even though it has a bunch of juicy government contracts it did not pay a single penny in
federal corporate income taxes from 2008 to 2010?

47. Did you know that while Exxon-Mobil did pay $15 billion in taxes in
2009, not a single penny went to the U.S. Government?
Meanwhile, their CEO brought in over 29 million dollars in total
compensation that year.
Our entire system is broken beyond repair and needs to be reconstructed from the ground up.
But of course that simply is not going to happen.
So what can be done?
Not a whole heck of a lot.
The truth is that the U.S. economy is on the verge of a major collapse.
Marc Faber, the author of the Gloom, Boom and Doom report recently gave a speech in which
he declared that the U.S. financial system is in such disastrous shape that only a "reboot" will
be able to save it....
I think we are all doomed. I think what will happen is that we are in the midst of a
kind of a crack-up boom that is not sustainable, that eventually the economy will
deteriorate, that there will be more money-printing, and then you have inflation, and
a poor economy, an extreme form of stagflation, and, eventually, in that situation,
countries go to war, and, as a whole, derivatives, the market, and everything will
collapse, and like a computer when it crashes, you will have to reboot it.
But can we just "reboot" the system and expect things to go back to normal?
Of course not.
The truth is that when the rest of the world completely loses faith in the U.S. dollar and in U.S.
Treasuries the dominoes are going to start to fall. Eventually we are going to see a financial
panic that is going to make 2008 look like a Sunday picnic. Our economic system will
massively implode as all of the gigantic mountains of debt and paper money collapse like a
house of cards.
Right now the Federal Reserve is desperately trying to hold the system together by "papering
over" all of the mistakes.But in the end it is not going to work. In fact, what we are witnessing
now are the very early stages of hyperinflation.A lot of other nations in the past have thought
that they could just print their way out of trouble, but many of those "experiments" ended in
total disaster.
Marc Faber is certainly right about one thing - all of this money printing is going to give us
substantial inflation to go along with the high unemployment that we already have. This is
called "stagflation" and anyone that remembers the 1970s knows that it is not a lot of fun.

48. But the Federal Reserve seems absolutely determined to print more money. Fed officials are
doing the same thing now that they did right before QE2.They are dropping hints about QE3
and they are trying to break it to us gently.
Well, it is about time that someone told the American people the truth. All of this money
printing is going to end in disaster and so you had better get prepared.
Even as Barack Obama and Ben Bernanke publicly defend the Federal Reserve’s new $600
billion quantitative easing program, top finance officials around the globe are expressing
alarm and outrage.
In fact, Barack Obama is very much in Bernanke’s corner. During his trip to India, Barack
Obama made it clear that he very much supports this new round of quantitative easing by the
Federal Reserve….
“I will say that the Fed’s mandate, my mandate, is to grow our economy. And that’s
not just good for the United States, that’s good for the world as a whole.”
This is the exact opposite of what Barack Obama should be doing. He should be demanding
accountability from Ben Bernanke and the Federal Reserve. He should be trying to get the
U.S. financial system back on some kind of solid footing.
But we all know that is not going to happen. Obama had no problem renominating Bernanke
to another term, and Obama has publicly supported him at every opportunity.
And this time not only US will hit by the US dollar crash, but each and every country
who is engaged in Globalized businesses and trade with US.
How long is it going to be until everyone wakes up and starts acknowledging that “the
emperor has no clothes” and Bernanke is running the U.S. economy into the ground?
At this point, Bernanke has lost virtually all credibility. In 2009, he promised the U.S. Congress
that the Federal Reserve would not monetize U.S. government debt, but now that is exactly
what is happening.

49. If the rest of the world cuts back on buying U.S. Treasuries, the Federal Reserve is going to
find itself with a gigantic mountain of debt that it will be forced to monetize.
So what happens someday when China, Japan, Russia and the major oil producers in the
Middle East decide that enough is enough and they are not going to buy any more U.S. debt?
Don’t think it can’t happen – these nations are not stupid and if they realize that the U.S.
dollar is going to continually keep falling in value there could be a dramatic move away from
U.S. debt.
If the rest of the world quits lending massive amounts of money to the U.S. government, our
leaders will be faced with three options.
• The U.S. government could start trying to operate within a balanced budget (which
would crash the economy),
• interest rates on U.S. government debt could be raised until people would be willing to
invest in Treasuries again (which would probably crash U.S. government finances and
the economy),
• or the Federal Reserve could just start monetizing most of the debt on a regular basis
(which would likely eventually crash the entire world financial system).
In order for the current world financial system to maintain stability, it is essential for there to be
faith in the U.S. dollar and for there to be faith in U.S. Treasuries. Once faith in them is lost, it
will only be a matter of time until the world financial system totally crumbles.
This new round of quantitative easing could be the “tipping point” that opens the door to the
eventual complete and total collapse of the U.S. Dollar. Let us hope that the dollar does not
completely fail any time soon, but with jokers like Bernanke and Obama running the show,
there is not much reason for optimism.

50. Jane D'arista quotes- People don't know that the US dollar they hold can also lose its value
and not even governments, they believe in their governments- who keep on lying to them and
increase their debt heavily and it is so important to look at this particular element in the global
system and understand that what is happening now as economies are under the gun and very
vulnerable, exchange rates are now changing more rapidly than ever, you have an
exacerbation in competitiveness of US trade- impacting people inside the country and all who
are attracted to it by one way or another.
Quantitative easing around the world-
These charts show how central banks all over the globe have been recklessly printing money.
Over the last 30 years virtually the entire world has developed a great love affair with fiat
currency....

51. So is everyone printing money?
The U.S. is printing lots of money.....
Source, The St. Louis Fed
The Bank of England is printing lots of money.....
Source: The BoE

52. The EU is printing lots of money....
Source: The ECB
Japan is printing lots of money.....
Source: The BoJ

53. China is printing lots of money.....
Source: The People’s Bank of China
India is printing lots of money.....
Source: Reserve Bank of India

54. Of course anyone with half a brain can see where all of this is ultimately headed. In the end,
inflation is going to spiral out of control and we are going to witness financial implosion on a
global scale.
So why don't these nations just adopt sound money?
Well, it turns out that if you are a member of the IMF, you are specifically prohibited from
having gold-backed currency.
Yes, you read that correctly.
In fact, U.S. Representative Ron Paul once sent an open letter to the U.S. Treasury and the
Federal Reserve asking about this and he received no response. The following is the content
of that letter....
Dear Sirs:
I am writing regarding Article 4, Section 2b of the International Monetary Fund (IMF)'s Articles of
Agreement. As you may be aware, this language prohibits countries who are members of the IMF
from linking their currency to gold. Thus, the IMF is forbidding countries suffering from an erratic
monetary policy from adopting the most effective means of stabilizing their currency. This policy could
delay a country's recovery from an economic crisis and retard economic growth, thus furthering
economic and political instability.
I would greatly appreciate an explanation from both the Treasury and the Federal Reserve of the
reasons the United States has continued to acquiesce in this misguided policy. Please contact Mr.
Norman Singleton, my legislative director, if you require any further information regarding this
request. Thank you for your cooperation in this matter.
Ron Paul
U.S. House of Representatives

55. Sadly, the truth is that the global elite don't want nations to start adopting gold-backed
currencies. They want countries to use fiat currencies that they can openly manipulate
for their own benefit.
At this point, every nation on earth (to the best of my knowledge) uses a fiat currency. All
of the major global currencies are being continually devalued. In fact, there are times
when counties will purposely devalue their currencies even more rapidly in order to
gain a competitive advantage in world trade.
This is why so many investors now have such an aversion to paper currency. It starts losing
value the moment you take possession of it.
In some areas of the world, "gold fever" is absolutely exploding. For example, China imported
five times as much gold in 2010 as it did in 2009. On the Shanghai Gold Exchange, trading
volume soared 43 percent during the first 10 months of 2010.
Gold, silver and other precious metals are now seen as a great hedge against inflation
worldwide. Investors all over the globe are demonstrating a strong preference for "real
money" over "paper money".
So what does all of this mean?
It means that some tremendous imbalances are being built up in the global financial system.
The central banks of the world must continue to inflate these bubbles with constantly
increasing amounts of paper money and debt in order to keep the game going. If at some
point the reckless money printing comes to a screeching halt it is going to unleash hell on
global financial markets.
But if all of this reckless money printing continues we are eventually going to see horrific
inflation all over the planet. In fact, we are already seeing significant inflation happening in
many areas of the globe. Almost every single day a new headline about inflation in China
and india seems to pop up in the financial news. Rising food prices are sparking unrest in the
Middle East and elsewhere. Even U.S. consumers are starting to see some uncomfortable
price increases at the gas pump and in the supermarket.
So it is not just Federal Reserve Chairman Ben Bernanke that is off his rocker. The whole
world is going crazy with money printing.
Hopefully this whole thing is not going to end as badly as many of us fear that it will. But right
now the central banks of the world are pumping unprecedented amounts of cash into the
global financial system, and those in the global financial system are funneling a very large
percentage of that cash into hard assets. Unless something changes, that is going to mean
that prices for basic necessities such as food and gas are going to continue to rise.
This is quite a fine mess that we are in.
Does anyone see a way out?

56. In the News-
High Debt and Fiscal Austerity in Britain-
Currently, Britain faces a budget
deficit that is 11 percent of its
GDP(Gross domestic product-total
value of goods and services
produced), slightly greater than
that of the United States.
Much like the U.S., Britain accumulated much of its debt as a result of the housing and
investment bubble that collapsed in 2008, the recession, and associated government stimulus
spending. For conservatives, the resulting record deficit presents a ripe political opportunity to
cut spending and lower the deficits.
This goal would require budget cuts to the tune of around £81 billion, thus rapidly increasing
the pace of fiscal retrenchment. Most of these cuts would entail reductions in public
services and welfare spending coupled with an increase of 2.5 percent in the value
added tax (VAT).
Unfortunately, the implications of such intensified fiscal austerity could be disastrous
for the British economy. To begin, the cut in public spending would result in a loss of
490,000 public sector jobs, the equivalent of three million jobs in the United States,
representing nearly 8 percent of the total government workforce.
The Justice Department and the Foreign Office are two of the many major government
agencies that will lose a substantial portion of their workforce. Such unprecedented cuts in
vital government agencies will end up harming the British people even further.
To make matters worse, economists have predicted that the budget reductions could
translate to the loss of as many as half a million jobs in the private sector.
Given that the unemployment rate is already at 8 percent, Britain cannot afford another shock
to the labor market. Advocates of fiscal austerity have claimed that deficit cutting instills
confidence in businesses and customers by demonstrating the government’s proactivity in
economic matters.
In a recent report, however, the International Monetary Fund asserts that this claim is, in fact,
a myth. It explains that trying to balance a budget in the short term in the face of falling
inflation and high unemployment could lead to further economic depression, which would
then, ironically, scare off more business.

57. Now,imagine,where the people are standing in such a Business
environment? We never know what is happening out there in those
white buildings?
We never know about the value of money we hold in our hands will
just wipe out due to panic in wall street about inflationary money?
We never know the change we believe in has never been imagined
by those who boast to bring it from 70 years?
But a little bit of political and economical knowledge can make this
clear to us ,what is the spiral of financial crisis is and Inflation and
recession are never tackled by our ever changing and ever stucked
governments.
From now on, I will definitely think twice before believing in
governments and their promises. It is our responsibility to think
beyond present job opportunities, business and economic perks
This is not a Twilight
episode
, it has happened during
great depression
(1930),Financial
crisis(2008-2009).

58. What's its body?-Environmental needs
Businesses don't create products out of air, they need raw materrial
for their production they need human labor that is we the people to
turn them into products. We consume them and they make profits,
we see them fulfilling our needs, but we never wonder that how they
are producing? What's the process of their manufacturing a cell
phone , cosmetics, mineral water bottles all the things that we
consume and how do they dump it?
For that to know,we need to look beyond the advertisements and
false claims that are made by the businesses, we need not to trust
blindly what have been fed in our minds and complain later to
system rather apply our own reason and make better choices.
In this section we will continue exploring the next need of
businesses that is of natural and human resources with the help of
researchers like Annie Leonard and P.Sainath.
So that we can interpret that how and why our stuff turn
itself.....................

59. From this -
To This !!-

60. Annie leonardo has made a applaudable attempt to dig deeper in our
consumption lifestyle- what she says in her own words is “The
system in crisis”
here's what she has got-

61. so, what is the story of stuff?
what the text books said is
that our stuff simply moves along these stages: extraction to production to distribution to
consumption
to disposal. All together, it’s called the materials economy.
She spent almost 10 years travelling around the world tackling where the stuff comes from
and where it goes? And what she found out that this is not the whole story- there is a lot more
missing from the picture.
Annie:
For one thing, this system looks like it’s fine. No problem.
But the truth is it’s a system in crisis.
And the reason it is in crisis is that it is a linear system and we live on a finite planet and you
can not run a linear system on a finite planet indefinitely.
Every step along the way, this system is interacting with the real world. In real life it’s not
happening on a blank white page. It’s interacting with societies, cultures, economies, the
environment. And all along the way, it’s bumping up against limits. Limits we don’t see here
because the diagram is incomplete. So let’s go back through, let’s fill in some of the blanks
and see what’s missing.
What's missing from “where the stuff comes from and where it goes”?
Let's find out.
Well, one of the most important things that is missing is people. Yes, people. People live and
work all
along this system.
And some people in this system matter a little more
than others; some have a little
more say. Who are they?
Well, let’s start with the government.

62. It’s the government’s job is to watch out for us, to take care of us. That’s their job.
Then along came the corporation.
Now, the reason the corporation looks bigger than the government
is that the corporation is bigger than the government.
Of the 100 largest economies on earth now, 51 are corporations.
As the corporations have grown in size and power, we’ve seen a little change in the
government where they’re a little more concerned in making sure everything is working out for
those guys than for us.
And what else is missing from the picture?
Extraction
We’ll start with extraction which is a fancy word for natural resource exploitation which is a
fancy word for trashing the planet. What this looks like is we chop down trees, we blow up
mountains to get the metals inside, we use up all the water and we wipe out the animals.
So here we are running up against our first limit. We’re running out of resources.
We are using too much stuff. Now I know this can be hard to hear, but it’s the truth and we’ve
gotta deal with it. In the past three decades alone, one-third of the planet’s natural resources
base have been consumed.Gone.
In the United States, there are less than 4% of our original forests left.
Forty percent of
waterways have become undrinkable.

63. We are cutting and mining and hauling and trashing the place so fast that we’re undermining
the planet’s very ability for people to live here.
Annie:And the problem is not just that we’re using
too much stuff, but we’re using more than our
share.The U.S.has 5% of the world’s population but
we’re consuming 30% of the world’s resources and
creating 30% of the world’s waste.
If everybody consumed at U.S. rates, we would
need 3 to 5 planets.
So, the U.S.response to this scarcity of Resources
is simply to go take someone else’s!
This is the Third World,
which—some would say—is another word for our stuff that somehow got on someone else’s
land.So what does that look like?
The same thing: trashing the place.
• 75% of global fisheries now are fished at or beyond capacity.
• 80% of the planet’s original forests are gone.
• In the Amazon alone, we’re losing 2000 trees a minute. That is seven football fields a
minute.
And what about the people who live here? Well. According to these guys, they don’t own
these resources even if they’ve been living there for generations, they don’t own the means of
production and they’re not buying a lot of stuff. And in this system, if you don’t own or buy a
lot of stuff, you don’t have value.

64. Production
So, next, the materials move to “production“ and what happens there is we use energy to mix
toxic
chemicals in with the natural resources to make toxic contaminated products.
There are over 100,000 synthetic chemicals in commerce today. Only a handful of these
have even
been tested for human health impacts and NONE of them have been tested for
synergistic health
impacts, that means when they interact with all the other chemicals we’re exposed to
every day.
So, we don’t know the full impact of these toxics on our health and environment of all these
toxic
chemicals.
But we do know one thing: Toxics in, Toxics Out. As long as we keep putting toxics into
our
production system, we are going to keep getting toxics in the stuff that we bring into our
homes, our
workplaces, and schools , our bodies. Like BFRs,
brominated flame
What are we even doing using a retardants. They are a
chemical like this? chemical that make
Yet we put them in our computers, our appliances, couches, things more fireproof
mattresses, even some pillows. In fact, we take our pillows, we but they are super
douse them in a neurotoxin and then we bring them home and
toxic.They’re a
put our heads on them for 8 hours a night to sleep. Now, I don’t
know, but it seems to me that in this country with so much neurotoxin—that
potential, we could think of a better way to stop our heads from means toxic to the
catching on fire at night. These toxics build up in the food chain brain. What are we
and concentrate in our bodies. even doing using a
chemical like this?