An compressed alternative outlook into the historical Western economic philosophies, its present situational state and its implications. Link to video of FRS, slide 14; http://www.youtube.com/watch?v=id04EMU6OIw

1. An era of interesting paradigms
//
The other perspectives
of the
American economy
Taufeeq M
2011

2. Content;
1. // History of American economy
2. // Present situational analysis
3. // Implication outlook

3. // But Why?
Era of;
Western economic
philosophies

4. “I believe that banking
institutions are more
dangerous to our liberties
than standing armies.
“
- Thomas Jefferson

5. “It is well enough that people of
the nation do not understand
our banking and monetary
system, for if they did, I believe
there would be a revolution “
before tomorrow morning.
- Henry Ford

6. 1. // History
of American economy

7. //
key western
economic philosophy

8. “Give me control of a
nation's money supply,
and I care not who
makes its laws. “
- Mayer Amschel Rothschild
1

9. “Who controls the food supply
controls the people;
who controls the energy can
control whole continents;
who controls money can control
“
the world.
- Henry Kissinger
1

10. //
what is money ?
• Originally money: medium of
exchange
• Includes commodity
exchanges (ie; barter)
1

11. //
paper money
• as early as 16th century
• used as receipts (a form of
exchange)
• no intrinsic value
1

12. //
paper money
=
1 zimbabwe

13. //
the federal reserve system
• Created 1913
• a private entity not subject to
audit
• advises US government on
economic policies
1

14. //
the federal reserve system
1

15. //
gold was replaced
• 1945: Bretton Woods Agreement
• USD replaced gold as reserves
• 1971: Nixon shock - terminated
convertibility of the dollar to gold
1

16. //
recessions & depressions
• as many as 47
recessions in the
United States
• 11 recessions
between 1945
and 2001
1

17. //
recessions & depressions
1

18. //
recessions & depressions
1

19. //
recessions & depressions
1

20. 2. // Present
situational analysis

21. //
western economy is fallible
• coterie of colossal debt nations
(Ireland,Greece,Portugal, Hungary,
Latvia,Romania etc)
• Ex-Chief Economist, IMF: complex
financial products would plunge the
globe into crisis
2 • US debt $14 trillion

22. //
western economy is fallible
2

23. //
western economy is fallible
2

24. //
western economy is fallible
2

25. //
western economy is fallible
2

26. //
western economy is fallible
2

27. //
what happens then?
Who pays the debts?
2

28. //
Who pays the debts?
2

29. //
US exorbitant spending
• highest military spending in the world
• 2007 consensus study;
- 6,600 times more Americans die from
Heart Disease than Terrorism
- Terrorism related deaths: 68
2
Heart disease deaths: 450,000

30. //
US exorbitant spending
2

31. //
US exorbitant spending
2

32. //
US exorbitant spending
2

33. //
Economic collapse
• Dr Marc Fabers
• predicts economic
collapse of Western
society …due to large
debts, government
debts and private
debts alike.
2

34. //
Economic collapse
• Jim Rogers
• ”You cannot spend
money you don’t have,
you cannot print money
you don’t have….you
ruin your currency, you
ruin your economy..”
2

35. //
Economic collapse
• Gerard Celente
• Predicts US Economic
Collapse, 2012
• ”You can’t print money
based on nothing. It’s
not even Economics
2
101, it’s Economics for
dummies.”

36. //
US dollar collapse
• imminent depreciation
• some implications for other
countries;
- devaluation of US securities
- devaluation of USD
2
(due to reserve currency)

37. //
US dollar collapse
What will be its worth?
2

38. The solution?
2

39. //
gold alternative
• Bretton Woods era: US$35 /ounce,
today: about US$1400 /ounce
• gold stays in value; value of money
declined significantly
• call for gold standards: Robert Zoellick
2

40. //
gold alternative
• Ron Paul:
Congressman
• Advocating gold
standards
• Ending the Federal
Reserve
2

41. //
gold alternative
2

42. //
gold alternative
2

43. 3. // Implication
outlook

44. //
debt economies
• Niall Ferguson
• "imperial falls are
nearly always
associated with fiscal
crisis..between revenue
and expenditures....
above all, these crisis
are associated with a
mounting cost of
3 servicing a huge public
debt"

45. //
regressive model
Debt
Poverty Interest rate
3

46. // Summary

47. 1. // Cause
History of American economy
2. // Resultant
Present situational analysis
3. // Effect
Implication outlook

48. “ Education is the passport
to the future,
for tomorrow belongs
to those who prepare for it
“
today.
- Malcolm X