©2008 Wendell W.

Solomons
<CityVista@gmail.com>

World currency and

economic meltdown
Analysis and solutions
for a developing nation
 Economic growth in agrarian economy
based on sharecropping e.g. Ande system
Economic growth pattern in
commercial economy
 Booms and Busts
•A commercialised economy becomes part of a
national and a gigantic circulatory system of the
world.

•Links of finance and credit lead to the dominance

of banking institutions. Such networks make it
possible to deploy investment rapidly.
The Newly Industrialised Countries (NIC) of Asia can
serve us as examples.
They benefited in the 1950’s thanks to the transfers of
know-how and showers of investment capital. Still, their
rapid growth came to be pruned later in 1997 by the Asian
Financial Meltdown. This was explained by Mohathir
Mohamed as a market run caused by powerful money
men.
Вы будете как боги • You shall be wise as gods
 Powerful Money Men
The 1-sq-mile financial city of London remains a hub of capital.
That followed the year-1694-chartered Bank of England that was
set up as a private financiers’ union or guild.
In the aftermath of World War II, this institution was, however,
converted by a Labour government in 1946 into a public sector
Central bank.
London’s financiers reacted by shifting their weight to the private
bank union that they had set up across the Atlantic in the USA. As
former BBC journalist Greg Palast reveals in a recent book, this
was the best democracy that money could buy. (1) Paul Warburg
had been consigned there with his German passport as cover in
1907. (2) London’s finance moguls used the label “US Federal
Reserve System” to disguise their union of private banks. (3). This
syndicate was granted a monopoly on the issue of the US dollar on
23rd December 1913 at a time when Congressmen were busy with
preparations to leave for home for Christmas.
 Finances and consequences
of insider-trading
The Bill of 1913 held out a guarantee that the US Treasury Secretary would
send a request for new dollars before the US Federal Reserve consortium
could issue banknotes.
Behind the scene, insider-trading would help. In 2008, for instance,
Treasury Secretary Henry Paulson arrived as a long-term principal of
banking house Goldman-Sachs. Previously, Robert Rubin in the Clinton
Administration, came from the same private bank.
The consequences that follow insider-trading were seen by J K Galbraith, a
Canadian-born professor who served as President John Kennedy’s
Economic Adviser. Born a British subject, Galbraith would have drawn
lessons from the debate on the nationalisation of the Bank of England in
1946.

To limit insider-trading President Kennedy decided to return to a Treasury

dollar supported by silver that would ultimately replace the private issue
banknote. On 4th June 1963 President Kennedy signed an edict facilitating
the US Treasury issue of a dollar backed with silver.
President
John F
Kennedy –
Those who
make peaceful
revolution
impossible will
make violent
revolution
inevitable.

Aristotle
-Revolutions
are no trifles,
but spring
from trifles.
President
Kennedy had
equipped the Treasury dollar…
Treasury to
return with full
operational
speed to the
practice used in
the previous
Century. An 1866
silver-backed
note of the
Treasury (issued
without private
banking inter-
mediaries) is
shown here. No
pyramid is seen
on the reverse.

Six months after President Kennedy streamlined the emission of the Treasury
dollar, he was shot on 22 November 1963 in Dallas, Texas. A day afterwards,
Texan Vice-President Lyndon B Johnson, signed an order withdrawing the
Treasury dollar from circulation.
Mystery still surrounds the Kennedy shooting. Yet, this photograph taken by
newsmen remains available in public record. “Jack Ruby” shoots at short
range to seal the lips of alleged assailant Lee Oswald when being moved
between jails. FBI agents were then controlled by the controversial Edgar J
Hoover.
“Jack Ruby” (the gang name of Jacob
Rubenstein) is an unlikely sympathiser of
President Kennedy. The Stardust Casino
syndicate used him at the time to run a girlie
show following youthful years spent as a street-
fighter. The contrasting next illustration shows
economist Milton Friedman. He had come
forward as advisor to Presidential-hopeful Barry
Goldwater in the election of 1964. Their attempt
at regime-change dipped when journalists
discovered that Barry Goldwater was regularly
hosted by the Flamingo Hotel in Las Vegas that
was controlled by the same Stardust Casino
syndicate.
It took Friedman another 12 years to book in as
Presidential Economics Advisor. His track met
Ronald Reagan’s through easy money capital
Las Vegas where in stage announcing for girlie
shows, sponsors picked Reagan to run for state
governor. Milton Friedman - used to
strike back at economist J K Galbraith
 Adjusting perception
•Any notions about the backing of the US dollar with ounces of silver or
gold were removed by President Richard Nixon in 1971 ignoring French
President de Gaul’s apprehension.
•From 1976 onwards, Milton Friedman - called a cheer leader of finance
capital - contributed his perception adjustment that would extend financiers’
control. This adjustment, carried by global TV, was intended to dissolve
any community bonds and increase the vulnerability of the bankers prey,
nations of the world. Friedman produced a book entitled “Free to Choose.”
This was turned into a video series and piped through the family TV for
perception adjustment.
•The trap Friedman used was an appeal to vanity through which social
concerns are downplayed. It encourages the forgetting of one’s neighbour.
It encourages opportunism. You “take a trip to heaven on the other man’s
shoulders.”
•Because my neighbour would want to travel on my shoulders and I on his,
we frustrate our purposes and productivity. Frustration and productivity
slowdowns require that nations go to globalist money lenders who charge
nations for loans.
Perception adjustment leaves people imagining that they enjoy
the invulnerability of gods. In this myth, the other man is clumsy
and rough. That man will fall if the branch of the tree is cut.
Side effect of the disruption of the Kennedy
Treasury dollar backed with silver
Side effect of the disruption of the Kennedy
Treasury dollar backed with silver (2)
 Solutions
The danger of insider-trading has not been remedied by the national-isation
of the US Federal Reserve, that is, by making it a public Central bank in
line with world practice. The private galleon has slipped demo-cratically
through the fingers of every administration since President Kennedy. So the
cost of money piracy in the commonwealth of 300 million people spreads
from the US to other nations of the world.
Few institutional economists forecast this because Milton Friedman made
them as wise as gods, first placing them on the branch of his tree. Not out-
done for compliment, they saw Friedman without murmur to the laurels of a
Nobel Prize for Economics. The world can’t expect experience from debt
creator drones for tackling the currency meltdown.
In 2008 Russia’s President therefore suggested the holding of a confer-
ence to stabilise currencies for international trading and the using of sever-
al currencies in international trade (as opposed to placing all eggs in one
basket.). It is in living memory that thanks to state central planners and rel-
ative isolation, the USSR was affected less by the 1930’s Great Depres-
sion. President Medvedev has also moved for isolation of the Russian
economy so as to reduce risks caused by the Western slowdown.
 Solutions 2
Developing countries, and especially ones without petroleum deposits, are
highly vulnerable.

Exports – Companies must enhance intra- and inter-firm cooperation to

safeguard country revenue. Visible, focal projects are vital.

In Sri Lanka, jewellers organise the annual FACETS exhibition for joint
promotion of gems to new buyers. In the Joint Apparel Forum, the Garments
industry has formed a platform for unity.

Imports - Revenue from exports, from new international sources of credit and
from resource savings are needed for imports of petroleum, wheat, rice, lentil
and other legume protein, tinned fish, milk powder, pharmaceuticals, spares
and more.

Services - Sri Lanka must have access to energy products for transport and
lighting. City services such as water purification, sewerage and garbage
disposal must be maintained.
 Solutions 3
General - Cooperation must be gained locally through sponsoring amity in
neighbourhoods and organisations. Tensions must be defused through
reconciliation by utilising community, social service, religious and where
essential, police and judicial bodies.

The 30-year promotion of Friedman’s model instills conceit, haughtiness,

high-handedness and notions of personal invulnerability. This increases the
risk of ethnic bigotry that we saw ravaging Yugoslavia, Kenya and many
other nations.

Action against guerilla forces must be reasoned strategy and not draw from
hysterical exorcist (shamanist, sacrificial 'kapuwa') rituals as that of 25th July
1983 in Sri Lanka. Mass media must contribute responsibly to enhance
community action in emergencies such as the planting of explosives in buses
and trains. More, the main funding sources of the LTTE operate not through
Sri Lanka but the UK. The high-handed crime of street operatives there has
led the UK authorities to arrest several. Therefore, focus on reasoned anti-
terrorist cooperation with the UK authorities is no less important than action
locally in Sri Lanka.