Blog@GraceJunction

(Re-post from March 17th, 2008)
Read carefully. I wrote ‘Great Suppression’ and not ‘Great Depression’.

1929 is etched in world history as the year that caused a great and dramatic meltdown or downturn of the world economy. The depression had devastating effects in both the industrialized countries and those which exported raw materials. International trade declined sharply, as did personal incomes, tax revenues, prices, and profits. Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by 40 to 60 percent. Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as farming, mining and logging suffered the most. Though the slump started in many countries much before 1929, it was the US downturn that really brought it down.

‘The Great Suppression’, I am talking about refers to the attempts by the US now to suppress and deny charges of slowdown or rather a recession hitting the US. With countries like India crying above the din to get the attention of the companies in the US and somehow sign up a back office contract with them, or do all the down-the-line jobs, the employment in the US is already taken a hit. Add to hit severe crisis reflected in the balance sheets of leading banks and brokerage firms, fall in realty prices, rate hikes in long term mortgage rates etc cetera and what’s impending is almost clear.

However, the Federal Reserve, shrugs off any such claims in the papers albeit made by leading economists. Such reports are only becoming more and more commonplace. But their stand is also perhaps understandable, because, their confession will really lead to a spiralling down, starting with the market sentiments and down to the real economy.

Recently the Fed lent money to one of the leading brokerage firms in the country through another firm. Read it again, the government gave money to this firm to keep the show running. Its trying to keep the sentiments intact. Though the Fed didn’t give the money directly, it gave instructions to the JP Morgan Chase to do it on its behalf. And for such an action, it had to invoke a ‘Depression-era’ law, with the entire risk of this new loan, being not of the firm’s but of the Federal Reserve! Now tell me, isn’t it a ‘Great Suppression’?

It may not be still as bad as it was in 1929, but things seem to be running towards it. Recently Citibank closed its retail finance division in India. Retail finance is the financing of consumer durables and everyone knows the “0%” loans that they provide to the consumer to use their facilities. Though they have tie-ups with the manufacturing firms, it is a loss making venture with the only attraction being a loyal customer base for its other products. They are minimising their losses now as back in the US the Fed had directed banks to provide for bad home loans.

Without delving further into economics, I will just say that ‘Suppression’ has become a trend. ‘What is’ is not shown. ‘What should be’ is portrayed. ‘The expected Image’ is maintained, at all costs. The outward pomp and show continues, while inwardly, magma boils, ‘Rigor Mortis’ is setting in, and the seams face explosive pressure.

Individuals have from time memorial practised and worshipped ‘Suppression’, but in their cases only a limited very few were affected. Companies and Insitutions have always done it, but the repurcussions though not so limited were still well within accomodative limits . However, such an attitude becomes a serious issue when a Government starts doing it. It risks the future of the entire nation, and when the Government is US, it risks the future of at least this generation, worldover.

Thinking in the same dimension, thinking about humankind in general, what about ‘the Suppression’ that we as a race do. Doesn’t it have any repurcussions, if not in the seen, then in the unseen. The popular ‘Cause-Effect’ understanding does support such a supposition. We cannot suppress facts and come out clean. Companies have gone kaput, families have got wiped out, individuals have got destroyed, by suppression. It has always produced adverse results. Then, shall we as a human race, escape the guilt of ‘Suppression’.

Surely we will not. I believe, our maker, will take us to task for it. We will have to stand up and face it. As individuals and as a race.

There is one man in history that claims a redemption for the entire human race. He divided history, rose again from the dead, and also claimed that he will come back. If what he said has value, it’s time, we take him seriously. Friends, I am talking about Jesus Christ of Nazareth. If you have other options, do revert back to me.

Tags: brokerage firm, cause-effect, Citibank, companies, Demand, economists, Economy, fall, fed, federal reserve, Great depression, Jesus, JP Morgan Chase, recession, Rigor Mortis, risk, spiralling down, sub prime, Supply, suppression

This entry was posted on Tuesday, September 30th, 2008 at 10:30 am and is filed under Articles, Economy, Geo, Thoughts. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.