Derivatives Plus Hedge Funds - Equal Global Economic Disasters

The Real Political Issues are the Issues the Corporate Media Refuse to Cover
Publisher of the Series - The Real Political Issues and People Empowerment ©1997 - 2000 
with Darrell Udelhoven

The great depression of the 1930's could be small potatoes compared to what is shaping up - Our Corporate-Government Policy Making Guerrillas must Promulgate Policies that resolve these Policy Flaws before it is too late

Consider derivatives, hedge funds, and other leveraged gambling going on in the world today to the tune of, for example, 80 trillion dollars in negotiable derivatives amounts which is more that 10 times the U.S. Gross Domestic Product. These are relatively unregulated contracts between the two parties.

In the 1920's derivatives were only leveraged say a dollar to ten dollars now it can be a dollar to a 1000 dollars or more. We did not have a giant national debt when the 1930's world depression took place, most economies are in much worse shape this time around. Personal debt was not horrifically high like it is now. Farmers were a big portion of the economy and they were being hurt big time economically.

Add to this the huge currency speculator trading that is destabilizing the economies of many countries and you have a no win situation!

What if:

  • congress and the press had focused on solving our global economic and finance policy problems instead of on Monica Lewinsky and the President
  • congress had focused on campaign finance reform so they would be free to pass the requisite bills
  • the press had focused the full attention of global citizenry on solving these critical global economic policy problems that will determine our economic destinies
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    On NBC Tonight 10-02-98, President Clinton ... : We need a bunch of money ("for the IMF bailout")

    These major economic problems could have been avoided.

    Some of the workable solutions would include:
     
  • Reforming the unjust global and national economic policies that reduce the per capita real earning power of the masses, worldwide. Using tariffs, quotas and other policies to stop the corporate exploitation of both First and Third world people and their economies

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  • Rigidly regulate currency trading, derivative manipulating schemes, along with hedge funds and other contract destabilizing speculative financial transactions

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  • Fed. Chairmen Allan Greenspan says that cutting taxes is the wrong thing to do. He is in the process of cutting interest rates to stimulate supply-side investments, however, what is most needed is an increase in per capita real income on the Demand Side of this economic equation. 

  • There is a far better way to achieve these economic policy objectives. The better way uses global and national economic policies to balance economic opportunity between all economic classifications, both vertically and horizontally within and between countries. This would result in broad sustainable earnings purchasing power in the lower over three fifths (3/5ths) of all homeland economies

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  • Do you understand how this would help resolve our major economic policy problems? This will reduce indebtedness in all categories and lead to a more stable and sustainable world economy that is developed from the bottom-up in each country, rather than being ripped off by the exploitive top tiers which further concentrates wealth in the hands of the few 

    •  A few of my links