Another Great Depression May Be Knocking Our Door

INTRODUCTION: The present symptoms in the world market make us recall the beginning of the great depression of early thirties wherein markets were full of the gluts of commodities but customers were not available to purchase the commodities despite the prices were going down. The total demand in markets had lagged behind the total supply. It was Lord Keynes to point out that the lack of effective demand had been the sole factor causing initiation of that great depression. The lack of effective demand was taken as resulted on account of investment lagging behind saving. The investment was lagging behind saving because the inactive portion of total saving was not being compensated through autonomous investment based on deficit financing. The problem was solved by adopting deficit financing and pump priming as suggested by Keynes.

THE PRESENT PROBLEM: The present situation in the world market also points towards the lack of effective demand. But, this time the reason is not being taken as the lack of investment or, in other words, the uncompensated inactive portion of saving. The budget deficits in all the developing and the developed economies are not only being enormously increased but are also regarded as rapidly outpacing the inactive saving. All the same, the producers are not finding adequate effective demand and threatening entry of another great depression is being suspected in the world. There are three factors most responsible for making the deficit financing ineffective in controlling the present depressive trend in the world market, as discussed below.

(I) In latter seventies a group of prudent economists had warned the developing world that inequalities of income distribution were going on increasing with the advancement on development path. They had opined that this would create a strong barrier on the path of economic development and economic growth. Their warning was neglected on account of two reasons. Firstly, the policy makers had a wrong notion in their mind that the slowly rising inequalities would create a sound group of rich investors to feed the future development based on heavy investment plans. Secondly, the policy makers were either under the influence of the rich group that was grabbing the fruits from distribution inequalities, or some of the policy makers belonged to the fruit grabbing rich group. Therefore, some from the high income group started to rapidly become richer but their number went on decreasing side by side. The growth rate of their income remained considerably higher than the growth rate if national income on account of rising inequality of income distribution. The remaining of the riches, lagging behind in the fast race of rapidly becoming richer, were thereby slang down to the following middle income group to add to the number of persons in middle income group.

On the other hand, the poverty alleviation programmes helped a considerable number of persons from the low income group shift to middle income group. Thus the mass of middle income group went on rapidly increasing in number and thereby the middle income group became a dominant consumer group. The middle income group has become so wide and so dominant that today the word 'market' means the market of consumption items pertaining to the consumption of middle income group, unless it is otherwise specified. The rich minority heavily invested in the production of commodities pertaining to the consumption of the vast middle income group. But, the disposable income of this group increased with a lower rate than the growth rate of the production of their consumption items because of the rising inequality of income distribution and a high degree competition among producers to squeeze the purchasing power of this market dominating group. That is why we are coming across slackness especially in the market of the consumers' goods pertaining to the consumption of middle income group.

(II) In the days of the thirties when the world was suffering from great depression, great many portion of total inactive saving was completely inactive and a small portion was used in speculation that was but limited mostly to commodity speculation only. As per the 'Liquidity Preference Theory' given by Keynes, the liquidity engaged in speculation was responsible for high interest rate. Therefore, a check on speculation was suggested so that, firstly, the prevailing interest rate may go down fast to become lower than the 'Marginal Efficiency of Capital' so as to induce the productive (i.e. induced) investment and, secondly, the liquidity (purchasing power) used fore speculation may be, to whatever extent, diverted to consumption expenditure so as to add to the falling short effective demand in the commodity market. If we look at the present scenario, only a small portion of total inactive saving is completely inactive and a multiple times of this, is the deficit financing being practiced almost throughout the world. Moreover, the amount of deficit financing may also be exceeding the total sum of the completely inactive saving and the saving used for commodity speculation. But, the great many portion of the inactive saving today being stated as converted into active saving is being used for non-commodity speculation like shares and debentures. The sum total of the completely inactive saving, the saving utilized in non-commodity speculation and the saving utilized in non-commodity speculation makes the total bulk of inactive saving. I don't think that the total deficit finance, whatever the big bulk, has so far out paced the above stated total bulk of inactive saving throughout the world. Thus, the present situation, in this way, is not much more different from that resulting in the great depression of early thirties. The actual inactive saving is not being compensated by deficit financing whereby a depressive pressure is liable to emerge similarly as during the early thirties.

(III) The commercial banks and many of other financial institutions are always interested in financing trade and commerce rather than consumers because of the obvious fact that consumer loans are not only lesser safe but the interest rate also is generally lower on consumer loans, especially in developing countries. Therefore, the actual financing to trade and commerce remained more than its desirable level and consumer credit remained below its desirable level for considerably a long period in the past. This caused a rapid extension of markets going on whereby the middle man profit went on increasing to make the commodities costlier without raising the producer's profit. The increasing prices ultimately caused a decreasing total demand in the markets.

The producers are having no way but to allure customers by launching various sale enhancement schemes. These schemes are though being proved fruitful up to some extent, so far, but on the cost of decreasing profit rate. Today's producer has much concern with the rate of profit (marginal efficiency of capital in the words of Keynes) instead of the total profit. Therefore, if the state of affairs remains persisting, the producers will have to cut production in the near future. This will become a green signal for the entrance of a real depression in the world market and this will harm the world economy not less than the great depression of early thirties.

SUGGESTION: To solve the problem of the endangering slackness so as to block the way of threatening entrance of suspected world wide depression, first of all the big investors should be made ineffective in the priority fixation and plan formulation. Thereafter, the growth of their properties should be curbed. The government investment (autonomous investment) should be directed from creating extra overheads (to attract new induced-investment) towards creation of external economies for the existing producers of general consumption goods. The expenditure of middle income group on education, insurance, medical treatment, telecommunication, entertainment etc. engulfs a considerable part of their income whereby their expenditure on physical goods of consumption falls short, especially, in the developing economies. Therefore, the government should make its welfare expenditure to concentrate on providing these services to the middle income group at a considerably reduced cost. The gulf between the incomes of the general mass and the rich minority should be immediately alleviated by taking strong measures to rapidly lessen the inequalities of income distribution. The consumer loans should be made quite liberal and financing to trade and commerce should be discouraged. The governments should take the drastic and acrid step to strictly curb or even suspend the speculative activities, at least for time being, until the depressive threat vanishes. The instruments of the monetary policy and the fiscal policy should be used in a way that share of consumption expenditure of the rich minority and share of income of the general mass may increase rapidly. These efforts should go on being honestly made until the purchasing power in the hands of general mass starts being commensurate to the supply of general consumption goods in the market.

The Story of the Great Depression Simply Told

The story of the Great Depression that plagued America beginning in 1929 can be better be understood by first considering the life in America during the 1920s, an Era which is often referred to as the roaring 20s in American history.

The roaring 1920s

For many Americans, the 1920s were a time of hope and a time for fun and enjoyment. They agreed with one of the most popular sayings of the time, "every day in every way, things are getting better and better". It was a time when most people coming from the First World War wanted to relax and enjoy themselves.

These hopeful Americans pointed to signs of progress in around. Women's new right to vote was one sign of this progress. Americans also were proud that technology was producing so many new wonders. Technology is defined in these terms as the use of tools and knowledge to solve practical problems and to help people live better. Americans were made better by technology. They bought new products - refrigerators, vacuum cleaners, radios, electric washing machines, and cars which were being made more and more inexpensive. It was a general view that American workers had better job conditions. Jobs were plentiful and the pay was good.

It was a time when people listened to new sounds. People relaxed in the soothing sounds of jazz and the blues. Millions people were hooked to movie theatres and listened to the first talkie films. A new invention called radio brought news, sports, and comedy right into a family's living room.

Radio, movies, and sports made new national heroes. Babe Ruth was baseball's greatest hero. Swimming champion Gertrude Ederle became a sports hero too. It was an era where people appreciated sport. Gene Tunney and Jack Dempsey in boxing excited fans. Helen Wills and Bill Tilden in tennis did the same. Football fanatics enjoyed watching Red Grange and Jim Thorpe. And the Mickey Mouse cartoon character was born in 1928.

Clara Bow, popular film star of the 1920s best known as "The 'It' Girl," was America's first real sex symbol.

Bow grew up in a household of poverty, violence and mental illness. She escaped her circumstances by entering her photo and winning a movie magazine contest, with the top prize being the chance to appear in a small role in the film, "Beyond the Rainbow" (1922).

Despite her difficult beginning, Bow worked steadily in films through the 1920s, typically appeared in supporting roles in films that were described as "domestic melodramas," with an occasional comedy. The type of films she appeared in can best be described simply by listing some of the titles -- "Enemies of Women" (1923), "Grit" (1924), "Poisoned Paradise"(1924), daughters of pleasure, (1924) empty sex (1925), "Eve's Lover" (1925), "Lawful Cheaters" (1925), "Parisian Love" (1925), "Kiss Me Again" (1925), "Free to Love" (1925), "My Lady's Lips" (1925), "Two Can Play" (1926) and "Mantrap" (1926).

Bow was known as "The It Girl," with "it" usually meaning sex appeal. Bow also appeared in "Wings" (1927), which won the first Academy Award as Best Picture. Bow continued to appear in films as the often-wild women who knows what she wants, and gets it, including "Get Your Man" (1927), "The Fleet's In" (1928), "The Wild Party" (1929), "Dangerous Curves" (1929), "Her Wedding Night" (1930), "No Limit" (1931) and "Call Her Savage" (1932). When sound films became popular in the early 1930s, Bow's thick Brooklyn accent was a severe handicap. Her last film was "Hoopla" (1933).

Clara Bow personifies the attitudes and tastes of the 1920s. One website describes Clara Bow this way;

Clara Bow became a major star in 1925 and soon became the 'It' Girl. She was known to be wild and sexy and care free...the perfect flapper! Oddly she didn't constantly go for the bow but the look became associated with her.

Before Clara it was the 'Cupids Bow'. Now it was Clara's (punny).

The Great Depression

The life of the Americans just described above meant that in order to have such lavish relaxation and have the power to buy such technological innovations in the form of radios, electric washing machines, cars, refrigerators it supposes that people had enough money than their parents had, but that was not always the truth in all respects. Since factories and businesses producing these technological innovations needed to have customers they were often working with the banks to grant people loans with some relaxed long term payment plans of the loans.

In 1929 many business in America started to hang new signs on their doors, announcing "out of Business". Millions of workers were informed that the paycheck they were getting mostly at the end of the week was the last paycheck. Soon many people did not have enough money to pay for food, clothes, or housing. Many people joined long lines of jobless people, waiting to receive free meals given out by religious groups.

The 1920's was the time when America went from prosperity, big time and fun that comes with better live brought by technology to a landslide depression. A depression is the time when business activity slows down and many people are out of work. The depression that started in 1929 in America was called the Great Depression. America had seen depression before but none of them was as severe as the Great Depression.

The Stock Market Crash

People disagree about what caused the Great Depression, however most people agree that the depression began around the time of the stock market crash. The stock market is the place where shares of stock are bought and sold. Stocks are certificates of ownership in a company. Stock owners share in the risks of the business they own. If the business makes money, the stock owners also share in the profits.

A form of stock ownership began in America in the early 1600 with the founding of Jamestown. The number of companies that issued stocks grew with the new industries of the 1800s. With the prosperous years of the 1920s, the stock market continued to grow. Up until the late 1920s, most stock owners tried to buy stocks that paid them the most money, in the form of payments called dividends, every year. They bought stocks and owned them for years on end. In the late 1920s however the behavior of people who were buying stocks begun to change for the worse. Many people began to "play" the stock market for some quick money instead of long term investments. People wanted to get rich quickly. So how did this playing of stock market happen?

People who participated in the stock market watched stock prices carefully. They tried to buy stocks when the prices were low. They hoped to sell the stocks after the prices had gone up. The difference between the buying price and the selling prices was their profit. Some people made millions of dollars playing the stock market.

As the number of people playing the stock market increased, stock prices rose. By the summer of 1929, some stock owners thought that stock prices had climbed as high as they were going to go. These people sold their stocks. Stock prices began to level off.

When prices stopped rising, more and more people decided to sell their stocks. In the autumn of 1929, stock prices started to fall. With the falling prices, stock owners panicked. Soon just about everyone was trying to sell their stock. However, people had little hope that stock prices would go up again, so there were few buyers. Many people saw their fortunes fade before their eyes.

Where did all the money invested in the stock market go? In truth, a great deal of the money was not there in the first place. Many people had bought stocks on credit. Buying on credit means that buyers pay small amount of money when they purchase an item; they promise to pay the rest later. With credit buying, few people actually paid the full price for stocks. When prices began to fall, the broker demanded repayment of loans. Few stock owners had money to pay them. Brokers then sold the stock for whatever they could get.

And so the stock market crash marked the beginning of the Great Depression. However this may not have really caused the depression. Some people think the depression began because the industries produced more goods than people bought. Throughout the 1920s Americans eagerly bought vacuum cleaners, automobiles, and other factory goods. By the end of the 1920s, the demand for goods fell off. Warehouses were filled with unsold products.

When businesses could not sell their goods, they began to lay off or dismiss their workers. These unemployed people were not able to buy much more than the necessities of life. As more more people lost their jobs, even fewer goods were sold. Rising unemployment hurt business, leading to even more job layoffs.

Credit buying is another explanation for the Great Depression. As we have already discussed credit buying contributed to the stock market crash. However stocks were not only the items Americans bought on credit. Millions of people bought goods of all sorts by paying a small amount of their own money and borrowing the rest. Some people did not plan wisely and were not able to pay for what they bought on credit.

Other people lost their jobs and could not pay back their loans. Thousands of businesses closed when customers failed to pay their bills.

Certain banking practices also contributed to the Great Depression. Many people put their money into savings accounts. Savings accounts were not insured, or guaranteed against loss, in those days. Banks often used their customers' savings to play the stock market. When the stock market crashed, many bank customers with savings accounts lost all their money.

Banks lost money in another way. Millions of Americans borrowed money from banks to buy goods or stocks. If these people were laid off from their jobs, they could not make loan payments to the banks. Then the banks lost money. Without this money, some banks had to close. People who had put money in the bank lost their savings when the banks closed - just like that! The government did not lend money to the banks to keep them from closing. Many people think that this lack of help from the government contributed to the Great Depression.

And so from the booming economy of America in the 1920s to the bust in 1929 - it all happened very quickly. People lost their homes, their farms, their businesses, and their jobs.

By 1932 nearly 12 million people were unemployed. Many unemployed people found themselves in long lines that covered city blocks moving slowly towards soup kitchens. These long queues or lines were called bread lines. Inside the soup kitchens were free food and, in the winter, warmth. One man described these common scenes of bread lines in Chicago. His words describe the sad story of many people in American cities and towns during the Great Depression.

In Garland Court back of the library, special garbage cans were set out by the thoughtful kitchen help of the restaurant. The garbage cans contained bread heels [crusty end slices of bread], and hundreds of starving men and women gratefully helped themselves. At the other garbage cans, people did their own sorting, stopping to chew on bones and bits of meat.

In warm weather, Grant Park was full with thousands of men and women sleeping atop newspapers on the wet grass. When it turned cold, a thousand shanties went up overnight along the lakefront... the shacks were made of tin signs and ancient boards, but they had chimneys and primitive heating systems.

At the Pixley and Ehlers cafeteria... I'd see a shabbily dressed man sit down with a 5 cent cup of coffee and put 10 spoons of sugar into it for nourishment. Then he might pour a fourth of a bottle of catsup into a glass of water and stir it until it became free 'tomato juice'.

For many Americans, the Great Depression meant going from bad to worse. Farmers had faced hard times since the early 1920s. for most farmers, the hard times continued into the 1930s. Prices for farm products fell, because Europe's demand for food crops decreased as European countries recovered from World War I. (Usually a decrease in demand leads to a drop in prices). A drought a long period without rain - added to the farmers' problems beginning in 1931. By the early 1930s, some farms in the Great Plains states were so dry that the soil began to blow away. Because of the great, swirling dust storms, the area became known as rthe Dust Bowl. Thousands of families left their farms. They travelled across the country, looking for new homes and new jobs.

And so it seemed to everybody that the American dream is no more. Listen to this popular song during the years of the Great Depression;

"They used to tell me I was building a dream,

And so I followed the mob -

When there was earth to plough or guns to bear

I was always there - right there on the job.

They used to tell me I was building a dream,

With peace and glory ahead -

Why should I be standing in the line

Just waiting for bread?"

Except for breadlines and soup kitchens, suffering Americans did not know where to turn for help in the early years of the Great Depression. Private charities, such as churches and local community groups, tried to help the poor, the sick, and the homeless. However, with so many people needing help, many charities soon ran out of money. And this brings us to the role of government in this situation. What was government doing or should have done.

Hoover and the Great Depression

Before the Great Depression, the national government had stayed out of matters such as helping the poor. The government also did not give aid to people who had lost their jobs. At first, Hebert C. Hoover, was president when the Great began. He did not change government policy of not intervening in the lives poor people.

Hoover felt sorry for people suffering because of the depression. However, he did not believe the national government really could do anything to end the hard times. His advisers told him that the depression would end on its own, as other depressions had. Hoover hoped Americans could find ways to help themselves and their neighbors without the aid of government.

Later Hoover realized the Great Depression was not going to end quickly on its own. He started some government programs to aid farms and businesses. However, the depression worsened and Hoover's popularity dropped.

Dr Chris Kanyane is a simple and friendly humanitarian historian from one of the dirt mud villages in Limpopo province of South Africa, where he grew up with no electricity, no plumbing and no shoes.

Chris Kanyane garnered his extensive research, writing and facilitation experience by working/collaborating/involved with diverse organizations globally, including being a Fellow of the American Academy of Financial Management - in academic corporation with Thomas Jefferson School of Law; Institute de Recherche pour le Developpement in Paris (France); Netherlands government through MHO project; the Canada based AfricaFiles; Netherlands based Management Development Foundation; the South African government; University of Johannesburg and Tshwane University of Technology where he was a member of the Central Research Committee.

Chris Kanyane was also a full time Chief Researcher at the Human Sciences Research Council in South Africa (HSRC), the leading research think tank in Africa.

Chris Kanyane was awarded an academic excellence award for his penetrating History on Africa and Human Development.

Chris Kanyane has Masters in Business Administration (MBA) degree from Management College of Southern Africa and PhD in History from Central Western University, Texas (US)

Dr Chris Kanyane has in association with Central Western University developed excellent easy to follow home study course on Africa and Human Development

Is A Depression In Our Future?

Some say it is the declining value of the dollar; others blame drought, oil prices, and the mortgage crisis. No matter who or what you blame, the certainty is that the American economy is in crisis. Despite appearances and rhetoric, the depth of the crisis confronting Americans and the world go deeper than many are willing to admit. While economic pundits and politicians are finally using the word "recession," there are those who are beginning to think depression.

This past weekend we went grocery shopping at the largest retailer in the area, one that is the largest worldwide. What became immediately clear was that there were many wholes in the shelves which, on any normal Saturday morning, would have been stocked to overflowing. In addition to our normal bag of flour having risen from $2.99/5lb. bag to $4.99, it was clear that this commodity was in short supply. The same was true for rice, eggs, meats and many other staple products. The shelves were certainly not bare, but the gaps and low stock was clearly evident. While this could have been attributed to late deliveries, concern rose the next day when a friend went shopping at a different chain and found a similar situation; jacked prices, no flour, little rice and obvious gaps in product stock.

There is no question that rising fuel costs are having a dramatic impact on food prices and availability. Reports are aired everyday about the soaring costs of staples. The truck driver rally in Washington, D.C. could not help but go unnoticed by the media as the plight of drivers worsens. Still not sure how widespread and how deep this problem had reached; I conducted a very informal survey of various writer groups nationwide. Being an author and always watching the world around me for ideas, it seemed that members of such groups would also have their fingers on the economic pulse in the areas in which they lived. I sent a survey to numerous groups and asked what they were seeing at the stores in terms of prices and product availability; whether they were going alter their purchasing habits; if they were going to buy more or less consumer goods; how they would spend their "economic stimulus check;" the price of gas in their area and if they were going to change their eating, driving and shopping patterns. The results, which are being verified by growing news reports on the economy, are frightening. One cannot help but wonder if some of the events that led to the Great Depression of the 30's are being to be repeated. In the late 1920's there was overproduction, a growing gap between rich and poor, a large increase in foreclosures and large stock investments by those who were really on the economic margin. Does this sound familiar? Given attempts by the Federal Reserve, Congress and even businesses to try to stimulate consumer buying, are we in a situation where a silent desperation pervades those in the economic know?

The survey spanned the nation. Writers in both cities and rural areas from the East Coast to Alaska to the Mid-West responded. While I will not report every response, I will show the nature of most responses along with some interesting quotes and thoughts from those who sent in the survey. The following are typical responses (by the time this article is published I am sure the numbers will be a little out of date-I am sure they will all be higher):

"Yep, seen it, experiencing it here in farmland rural Pennsylvania where cow manure has become THE fertilizer - the only one that won't bankrupt. Feeding a household of five including two always hungry teens, it's glaringly obvious things are going downhill. Our cupboards are dwindling to the barest of bare necessities. Our veggie garden is doubling this year and I'm checking into a chicken coop. Has anyone seen the price of eggs? Eggs for crying out loud! They more than quadrupled in price in just a few weeks here.

I read somewhere that 25% of the US grain has been taken for alternate fuel possibilities - can't find it again and have to ask if it's true? If so, whose stupid idea was that? Don't take it from existing supplies, make it. I'm thinking maybe my hubby isn't so nuts in busting his behind running his mother's grain farm along

with his full time job this year. I may pitch in. I've got family in all areas, farming (grain and livestock), trucking, construction, and I've seen how all of it is being hit."

"I'm tacking on some things that worry me. I came from California where I made a decent wage. When we moved to TN a few years back, housing was much cheaper here than CA, but that was about all. Everything else was equal, food, clothing, cars, etc. Gasoline was still a little cheaper.

Wages here are 1/2 of what people make in California, and very few companies provide any type of medical or dental insurance. I was shocked to learn that the job I'd done for over 23 years in California required the completion of a master's degree in TN, which I do not have, yet the salary was 1/2 of what I made. They would not allow me to apply, even though my qualifications were a perfect match for the job."

"The typical wage here is $8.00-10.00 per hour. My husband is a truck driver for a local company and makes $14.00 which is considered high. Of course, his company provides no insurance or extra money towards such. I noticed today that gasoline has climbed another 2 cents to $3.57 and diesel is $4.72. Already my husbands company is cutting back on runs and trying to combine them, so we're very worried about our financial future. I wonder how people who make $8.00 can afford the fuel to get to their job. Basically they are working to buy gas to get to their job...where will the money come from for all their other expenses. It's very scary."

"It just ticks me off beyond belief that we are paying over a billion dollars a day for a war, borrowing money from China and our economy is going down the toilet, but President Bush, when asked will still claim that we're in good shape."

"I live in south central Kentucky where nothing is close. Driving is a necessity. If gas prices get much higher, we are thinking of getting an Amish cart and training one of our horses to be driven. It would take all day to get to town but we could go to the convenience store.

We still have good availability of products but the prices are going up in the supermarkets. I no longer buy beef. Instead I have a friend who raises Black Angus cattle and we split a cow. I have a friend who is raising sheep so I will probably buy a couple of the lambs. I shop at the Amish bulk food store in the county and save a lot over the supermarket prices. I will be eating fresh veggies all summer, grown in our garden or those of my neighbors. Gas prices are $3.59.9 for regular as of last Sunday. Over $4 for diesel! I combine errands and don't leave my farm unless I have more than one place to go in the same direction. We are eating out less. We are planning on saving the stimulus check. Just an aside, my daughter-in- law is in retailing in NYC and she says we are in a major depression. People are just not buying."

"In the Seattle area, wild salmon is going for $19.99 a pound, gasoline at

Costco $3.65 at the regular gas stations $3.79 a gallon. People here are

driving less, eating out less, and purchasing food at the lower end stores

such as Grocery Outlet and Cash and Carry. We were in a huge Asian market

one week, rice stacked up as high as an elephant's eye. Now just try to find

regular rice - many of the people here are purchasing rice to send to

relatives overseas."

"Unfortunately, I am a volunteer driver for Catholic Charities - IE, I haul people who don't have transportation to the doctor - so have little control over my gas consumption. I drive 700 to 900 miles a week so buy from 30 to 50 gallons a week. They supposedly pay us for our gas used, but are consistently six months or so behind in updating their prices and the past six months have been the worst ever."

The following are snippets of responses from around the country. It is evident that people are frustrated and even frightened. While products are available, the current trend in prices is continuing upward. Recent reports indicate that state governments are cutting back on budgets and employees; tourist destinations are already feeling the pinch and more and more storefronts are displaying "space for rent" signs. Since many plan on reducing driving, this summer does not bode well for that industry. Agriculture reports show late plantings of corn and wheat crops and who knows what summer weather will unleash. It is clear from U.N. reports that the food situation is rapidly declining in poorer nations as droughts and floods destroy staple crops. I am sure many of the comments that follow are a mere shadow of what is beginning to happen in your area as well:

I used to be able to buy a pack of chicken breasts for $3 or $4, now the same pack is $7.

I traveled to Spartanburg where gas was $3.29/gal (middle grade). When I got back to ATL to fill up, it was $3.49/gal. Last weekend, I paid $3.69, now it is $3.79 or $3.89.

Saturday is usually a busy day in Fayetteville, but there were no cars in all five lanes at one of the busiest intersections. Some of the independent stores had no cars in parking lot and it looked like they were closed.

How will you use your economic stimulus check? Put it in savings!

Gas $3.74 Rockford, IL.

Prices, though? Meowza! They are up, and rising! But am I buying what I don't really need? Not on your life. Not with heating oil where it is, and climbing. I'm trying not to take unnecessary trips, and I'm certainly not eating out very often. I'm using my old lawn mower, which I had thought about replacing this spring.

I haven't noticed any shortages except the "sale items," but prices have definitely increased.

I have received mine (stimulus check) as a direct deposit, and it will stay in the bank. I don't plan on buying anything new, just my usual necessities.

$3.89 for medium grade.

I haven't noticed a decrease in the availability of basics, but prices have risen considerably here in PA--this includes basic such as eggs, flour, butter....Eating and shopping will all be dependent on what I can afford. I anticipate, if the prices keep rising, having to forgo some of the necessities.

In SE Michigan. Prices, however, are another story. Eggs have doubled, milk, dairy products skyrocketing. Good beef cuts (steaks, prime roasts, etc.) are a rare buy in our household these days because they are so expensive. Fish/seafood products are also beyond reach as a steady diet.

Save those left-overs and use them as part of a creative low-cost menu for tomorrow's dinner.

Get caught up on a bill or two and treat ourselves to a gourmet (home cooked) dinner.

$3.65/gal.

Less frivolous foods, the munchies, you know. Bulk peanuts and fresh raw veggies make good inexpensive snacks. 86 all the packaged crap. Drive only when and where necessary. Make a list. Plan a driving session in a well-routed circle that accomplishes several chores in one outing. Planning for a vacation now includes high on the list, "how much will it cost in gas to get there and back?" Shorter trips/destinations if you are driving a car.

I've noticed the prices skyrocketing - quadrupling in a matter of weeks for some things like eggs... A lot of what I used to get I can't find local anymore.

It will go toward an alternate heating source, most likely a wood burner in the basement.

Last I looked, diesel was $4.59 a gallon and today's local report said low grade is now $3.62.

Anything we do over the summer will be local, no major travel.

Rural farmland in the mountains of Pennsylvania where the cost of living is very low and so is the average family income.

I am concerned about stories on the news about Sam's Club and others

rationing rice. Is there a rice shortage?

I live in Arizona in a town between Phoenix and Tucson. There is no real public transportation in my area, and, with summer temperatures going well into

the triple digits for about 4 months of the year, riding a bicycle really isn't an option.

Let's face it. The American people are getting hosed by greedy speculators who are driving the price of oil, (hence food prices) artificially high.

I don't blame people for not buying. Prices are going out of sight. Yesterday, gas here was $3.79 and I bet it's up from that today.

Food prices are up varying percentages, from 15-percent to nearly 50-percent on many less expensive cuts of meat. Hamburger (80 percent lean) has risen from about $1.99 per pound a year ago to nearly $4 per pound.

Overall, my daughter said the supermarket tab here for her family of four has jumped from about $130 per week to nearly $200. Also, shortages of some products are starting to become apparent, with some shelves bearing large gaps in mute testimony to lack of availability of rice and flour...

Hope that helps.

As to gas prices: Spokane, WA prices range from $3.50 to $3.70. I live in a small town where our one station is $3.87 for unleaded. More to the point, Diesel in Spokane that has more effect on food prices is about a dollar higher at $4.50 to $4.80.

Unfortunately, I am a volunteer driver for Catholic Charities - IE, I haul people who don't have transportation to the doctor - so have little control over my gas consumption. I drive 700 to 900 miles a week so buy from 30 to 50 gallons a week. They supposedly pay us for our gas used, but are consistently six months or so behind in updating their prices and the past six months have been the worst ever.

So what does all of this mean? The early warning sign are there and I would strongly suggest that people keep an eye on commodity report, climate calamities, and, of course, the price of fuel. There is little doubt that people will be tightening their belt, going out for meals less, traveling shorter distances and using their "stimulus" checks to keep their head above water this summer. Living in a region that depends on fuel oil, it is scary to hear that contract prices for hearting oil less winter will approach $4.00/gallon. This will surely collapse to the economy in the Northeast. If diesel continues to rise, truckers will be at a loss and food will simply not be delivered to stores. Already, many truckers who deliver saw logs are calling it quits. How long can fishing fleets absorb continued price rises? Summer employment looks bleak. The key is to be alert and be informed.

Is there is bright spot here? If you read my article, "The Mother of All Course Corrections," you will see that the consumer is now in a position to finally make intelligent buying decisions. You can affect what is produced with your valued dollars. If you stop buying the junk food, stop buying sodas, buy only healthy foods and cereals, the market will have to respond. This is your opportunity to finally make a difference in terms of what is produced and what you consume. Insist on quality and use your power to create a more sensible, sustainable economy. The time is at hand for choices, choose wisely!

Mr. Harris was born in Massachusetts. He attended The American University in Washington, D.C. and received his degree in Political Science. His graduate work was done at the University of Northern Colorado and Howard University. He spent several years working for local and regional and state government agencies. He worked on a White House Task Force and served as Rural Policy Coordinator at the FRCouncil of New England.

Mr. Harris is co-author of the novel WAKING GOD and is a nationally syndicated / featured writer for The American Chronicle. His second novel, A MAINE CHRISTMAS CAROL was released by Cambridge Books, his third book, JESUS TAUGHT IT, TOO: THE EARLY ROOTS OF THE LAW OF ATTRACTION (Avatar Publication). He is author of the book, RAPING LOUISIANA: A DIARY OF DECEIT and his two most recent self-growth titles, the "MESSAGES" series were just released by Avatar. See his book titles at "theliteraryworksofphilipharris."

Enduring the Ordeals of Depression

Anyone who has suffered with a condition such as depression knows all too well that the ordeals extend well beyond the devastating symptoms of the illness itself. The misinformation, stigma and bias surrounding the illness needlessly compound the suffering of victims, who just want a fair chance to obtain vital healthcare, make a decent living, and lead something approaching a normal life.

In North America alone, untold millions suffer the crippling symptoms of depression, an illness reaching epidemic proportions. Many of these people are unaware of their illness or have a suspicion but are afraid to learn the truth. Even among those seeking treatment, many will never be properly diagnosed or treated, but will continue to suffer the consequences. Of those fortunate enough to be successfully diagnosed, many will have experienced diagnostic delays or mistakes of some kind along the way. Many of these sufferers will then be given treatment that is ineffective in producing recovery. Often the treatment given is inappropriate for the particular individual or less than optimal. Commonly, a more effective treatment is available but a caregiver is unaware of it or untrained in its application.

No one knows the exact number, but it's unlikely that more than half of all sufferers of depression are fortunate enough to make it successfully past all these hurdles and become able to get the help they need to achieve recovery.

And they still aren't home free, not by a long-shot. In all likelihood, they will have suffered from the destructive stigma and widespread ignorance associated with depression, often in the form of discrimination on the job or in their healthcare. They will lose a job, or several jobs. They will be unable to find a job. They will be unemployed. They will be forced to go on disability leave. They will be without income when the disability coverage expires. They will exhaust their medical insurance benefits. They will be unable to afford medical care. They will wish they had a "physical" illness rather than "mental" or "emotional" one, because the medical coverage is better. They will wonder why there's a difference. They will feel like castoffs from society. They will be right.

They are castoffs. If this isn't bad enough, adding insult to endless injury is the fact that victims of depression are typically blamed for their illnesses. The prevailing opinion seems to be that they should be able to manage it. "Everyone has bad days." "Just suck it up." "Stop dwelling in your sorrow." Like lepers of old, they suffer with an illness that society cannot or will not understand.

Inadequate Opportunity

Aside from the obvious moral issue that it's terribly wrong to abandon or ostracize such victims, consider the medical, social and economic issues. While depression can be chronic and severe, even fatal in the case of suicide, it is often temporary. Victims can recover, if treated properly, and become able to resume a normal life. This means having the life, the job, the family, or the marriage they had before or aspired to before. They could then return to being fully functioning, productive members of society. But they need to have the opportunities to resume normalcy, which they don't have now.

Many victims recover from mood disorders such as depression, and many more could recover if treated properly. Depression can be like terminal cancer under the worst conditions, but it should be like operable cancer- you're incapacitated for a while, you receive effective treatment, you have time to heal, you achieve recovery, and you return to where you were- your workplace, your family, your community. Ideally. How often does this actually happen? Too often, victims of depression don't hold their jobs, they can't maintain their relationships or marriages, and they can't afford to live in their own houses. But with the right opportunities and treatment, they quite possibly could. Impatient, expense-conscious employers today are unwilling to allow victims the unreasonably long period of time required to receive treatment and recover in our woefully inadequate mental healthcare system. Employers habitually turn their backs on sufferers of mood disorders, which only compounds the problems of a victim whose already dark and hopeless mood can only deteriorate further when jobless.

The Cost of Depression

Let's now turn to the economics, since that's often the most powerful argument in this day and age. Just in the US the economic costs of the mistreatment of depression, both medical and social, have become astronomical. A report by the National Mental Health Association, now known as Mental Health America, indicates that business, government and families lose $113 billion a year from the cost of untreated and mistreated mental illness (see the NMHA's Labor Day 2001 Report). This cost, which has nearly tripled in the past decade, is due to such things as "discriminatory business practices" and "unfounded fears and misunderstanding" of mental illness. Mental health conditions are actually the second leading cause of absenteeism from work. Depression alone results in more "bed" days than many other medical ailments, including ulcers, diabetes, high blood pressure and arthritis. The report adds that, "Business needs to help end the stigma against mental illness by adopting appropriate health insurance and human resources policies, and governments need to shift spending priorities." Increased investment in the prevention and treatment of mental illnesses would more than pay for itself in stemming losses from disability, unemployment, underemployment, broken families, poverty, welfare, substance abuse, and crime.

In spite of the enormous and escalating economic costs of depression, the amount of money spent on diagnosis and treatment for it is dwarfed by spending on cancer, heart disease, muscular dystrophy, and other illnesses.

Another eye-opening fact to consider-- as high as the homicide rate is in the U.S., most people would be surprised to hear that the number of suicides has far exceeded the number of homicides in recent years (Centers for Disease Control and Prevention website). In fact, it's nearly twice as high (34,598 vs. 18,361 in 2007).

A Misinformed Society

Most people cannot begin to understand depression. It's just not possible-unless you've felt it. Depression is a category-five hurricane against which there's little defense. If you haven't experienced it, you cannot appreciate the awesome power. Unlike most illnesses, depression conquers every aspect of your being- body, mind, and spirit. People tend to equate depression with sadness, but it's much more than that. There is no energy or strength or hope. You're empty, lifeless.

A widespread view people have but often will not verbalize is that depression is just "in your head" and could be avoided or managed better. "Just suck it up," seems to be the prevailing mindset. Let's consider that. It's taken an inexplicably long time, but the evidence is now being widely revealed that underlying depression is severe neurological and physiological injury. I'm not the right person to describe the disrupted hormonal or neurotransmitter processes or the types of physical injuries that occur. In laymen's terms, it falls under the general heading of "brain damage."

That's a chilling term few people associate with depression. So I guess you can say depression is in your head in a sense, just like a brain tumor is in your head. Depression is also in your nervous system, your hormonal system, and other places I'm not qualified to describe. Historically, it was thought to be largely genetic, but the recent evidence suggests that emotional trauma of various kinds, particularly in childhood, often creates the physiological vulnerability to depression.

We're talking about events during childhood that often lead to depression. It begins with innocent, defenseless, vulnerable children. Yes, the victim can later do something about his depression, just as a victim of a "physical" disorder such as heart disease can do something about that- change lifestyle or diet as needed, go for treatment, find the necessary support. Sufferers can almost always do more to help themselves. But often the very illness inhibits one from taking the needed action, as in the case of the lifelessness and despair produced by depression that limits the ability to act. All in all, most "physical" and "emotional" illnesses seem quite similar in the ability victims have to control their conditions through their own actions. Nevertheless, the stubborn stigma of depression remains, often accompanied by the misconception that these disorders are "all in your head."

My Story

No doubt it's become apparent by now that my strong opinions about depression stem from first-hand experience. For every single problem associated with depression I've described here, I have personally experienced the bitter consequences. My condition has been misdiagnosed. I was given a number of treatments that were ineffective. I was prescribed medications that were ineffective or produced side effects as bad as depression itself. I tried ten different medications. My recovery was delayed and my illness prolonged. I had to go on disability leave twice. I exhausted my disability benefits. I lost two good jobs as a result of depression, essentially destroying my career. I had difficulty finding a job and changed careers. I had to see five different therapists and four psychiatrists before achieving substantial recovery. I faced limitations on my healthcare due to having an "emotional" rather than physical illness. I couldn't afford the type of treatment that would have most expeditiously treated my illness. I couldn't afford to maintain my family's lifestyle. My marriage has been severely strained by the prolonged duration of my illness. And, what's perhaps most disturbing, my situation is not unlike that of millions of others.

The Travesty of Mental Healthcare

To further illustrate the shameful state of affairs in mental healthcare, I should add a few significant details about my story. It turned out that depression alone was not my problem. Only after two years of therapy and medication did I learn that there was much more to my condition, and these issues surfaced at my own prompting based on what I had read about the causes of depression. None of the therapists or psychiatrists I saw raised these issues.

I was reading "Healing the Child Within" by Charles Whitfield, an extraordinary book that examines the link between mood disorders such as depression and severe emotional trauma during childhood. I was struck by how similar my symptoms were to a disorder that Dr. Whitfield contends is far more common than the medical community acknowledges, and which can affect a person years after the trauma. My symptoms actually aligned closer with this condition than with depression. It is post traumatic stress disorder (PTSD). Emotional or mental trauma can affect children much more severely than adults and produce a type of chronic shock that disrupts and inhibits emotions. This produces a vulnerability to stresses that occur later in life, which can lead to depression. But PTSD produces serious symptoms of its own-emotional numbness, hyper-vigilance, irritability, moodiness, and withdrawal, to name a few.

When I volunteered this information, my therapist seemed largely unfazed while confirming that I had probably had PTSD, since, he argued, the treatment would be essentially the same as that for depression. He knew my history, that as a young child I witnessed countless incidents of rage, verbal abuse and threats of violence by an alcoholic father directed at my mother, my only parent who showed me any love, warmth and approval. These raging incidents could go on for hours at a time, and spanned more than a decade. From an early age, I became petrified and numbed by the repeated incidents. A person so wounded by early, chronic stress becomes "hard-wired" to be overly sensitive and reactionary in the face of future stress in a way that creates significant vulnerability to depression and similar disorders.

In order to heal the wounds and recover from a mood disorder, you need to understand what happened to you. Psychoanalyst Alice Miller has sold millions of books making this point, but caregivers evidently aren't getting the word. I absolutely needed to know the whole truth about what made me what I am, and I was incredulous with disappointment that I didn't know earlier about something as significant as PTSD.

There's more. I described to all my caregivers a number of strange symptoms I experienced throughout my life- being easily distracted, difficulty concentrating, inability to follow simple instructions, quickly losing focus while driving or reading, excessive daydreaming and fantasizing. Everyone has these experiences from time to time, but mine were continual and pervasive. They defined me. There was a period of time not too long ago when I thought I might have ADD, then I thought it might be bipolar. I knew something was terribly wrong.

Once again, I stumbled upon some telling information when I was reading about mood disorders-- my symptoms were an awful lot like a condition called dissociative disorder. This too can result from severe trauma. At some point, often in childhood, a person can disconnect from reality as a defense mechanism, because it's so painful and unbearable. In the face of severe, repeated trauma, the disconnection can become a permanent part of personality (Whitfield, 2004). A few weeks into my sessions with a new therapist, number five I believe, I asked if my symptoms could indicate dissociative disorder. This therapist, the first one I feel completely confident in, suspected I might have this condition and gave me an assessment.

In spite of my suspicions, I didn't really expect to be diagnosed with another disorder this late in my treatment. But, it turned out I did in fact have a moderate degree of dissociation, enough to be seriously disruptive. I'm 55 when I learn this, about two and a half years into psychotherapy and medication over two separate episodes. I feel a sense of satisfaction hearing this because it explains a lot of things, like who I am. But I'm understandably upset and frustrated that it wasn't found much earlier. For one, an implication is that I'll probably require yet another type of treatment.

Healing

In spite of the many ordeals and frustrations, I'm happy to say that I'm steadily moving forward on the long road to healing and recovery. I no longer feel the full, terrible burden of depression, although I still suffer crippled emotions. I continue to feel anger and sadness much more than I feel peace or joy. My problems were actually compounded by an extreme response to the childhood trauma, which for me generated a particular complex of emotional numbing, shame, disconnection, and subsequent guilt that a "man" would have such weaknesses. As a result, I wouldn't talk about the horrific incidents or about my feelings, with anyone, ever. The wounds were therefore left to fester, which not surprisingly is a major obstacle to healing. Exemplifying the benefits of discussing the harmful events with someone and receiving support, my two older sisters didn't suffer such serious injury because they had each other for vital support. I was alone.

With talk therapy no longer yielding benefits, I decided to try a technique known by the cryptic name, 'eye movement desensitization and reprocessing' (EMDR). This treatment induces the brain to reprocess painful memories and perceptions in a more positive light. The technique, which is reportedly quite successful in most cases, can undo much of the harm of earlier trauma. The treatment was long and difficult, requiring several months of weekly sessions that delved into dark, painful memories. There were some setbacks, and I often had serious doubts, but in the end it helped me a great deal. I began to feel free of crippling guilt and shame, that I was somehow to blame for my own illness. Unloading this burden has helped me to heal. It's just so frustrating that it took so long. I had to take it upon myself to find the right technique and the right therapist.

Too often practitioners mindlessly apply standard treatments in a one-size-fits-all approach that fails to address individual needs. This is true for both therapists and psychiatrists. They treat symptoms, not causes. What's worse, they each have but one tool, no matter what the problem. Psychiatrists do little more than push an endless array of high-priced drugs, many with toxic and addictive properties. And therapists-- they talk, and sometimes they actually listen. Is this really the best we can do?

I've learned many invaluable lessons during my bouts with depression, one being that I am far from alone in my ordeals. It's not at all unusual for a person to have a complex of conditions including PTSD, depression and some degree of dissociative disorder. Knowing all this is critical if for no other reason than it helps to relieve the destructive guilt I've felt that I was inferior, weak, and responsible for my own inability to be "normal." I shouldn't worry anymore about being normal because it's rarely possible to lead anything approaching a normal life with these conditions. It's been painfully difficult to overcome the guilt and the frustration to be anything like normal, but I'm slowly learning to live with the peculiarities of my condition. You can recover enough to function, but how many will completely heal all the wounds deep within the body as well as the mind?

Fighting Back

For the record, and to attest to the ability to endure these ordeals, I somehow managed despite these handicaps to do OK with my life, at least until things recently started unraveling. Depression "officially" struck pretty late in my life, although I always carried the vulnerability and the symptoms of severe traumatic wounds. It appears that dissociation is a condition I've had my whole life. Prior to my depression, I managed to get a masters degree from an Ivy League college, have a 25 year career in market research culminating in an executive position, and enjoy a 34 year marriage and three wonderful children. Now it's all falling apart.

I grieved for a while, but I'm doing alright now. I've been knocked down so many times I can't count anymore. And when I'm down, I don't always get up right away. But I do get up, I'll always get up, and I hit back when necessary. My last employer didn't understand my depression or show any compassion or tolerance; then, after a few conversations with my lawyer, they were happy to part with a handful of money to shut me up. No one should tolerate discrimination. I plan on doing a lot more fighting. Losing a job presents a crisis for anyone, but it's especially traumatic for someone with escalating medical bills whose health condition is already dire and short on hope. I spent $6,000 out of pocket in a recent year on healthcare, and I have what I thought was decent group health insurance, which by the way costs me another $6,000. This is pretty tough on someone working part-time.

Unfortunately, most people are too busy with their own lives and their own problems to pay attention to these arguments and learn the truth about depression. You would think that policymakers could help lead the way in dispelling myths and reforming policies that unfairly restrict the rights victims of mood disorders have or should have in the realms of jobs and healthcare. And considering the massive scale of the problem, much more funding is needed for research into these disorders and what the most effective treatments are. It's time we recognize the reality of mood disorder, end the stigma and discrimination, and come out of the dark ages in the handling of these horrible but treatable illnesses. You'd also think or at least hope that enough concerned mental healthcare providers would step forward and institute measures to improve the current state of care, such as mandated training in the latest and most effective diagnostic and treatment techniques.

The sad truth is that it often requires a highly visible, horrific incident to galvanize the public in a way that finally generates needed reform. Things started to happen after Virginia Tech. The nation and the world were shocked by the mass murder on an unprecedented scale by a mentally unstable individual who failed to receive effective treatment despite overwhelming evidence of serious illness emerging over a period of many years. Who knows how many more people like this may be out there? But following some promising dialogue about reform and a flurry of half-hearted initiatives, very little changed as public policy focused on more pressing concerns. The current state of mental healthcare remains shamefully inadequate.

Finally, on a more positive note, let's return to those powerful economic arguments, which typically trump any moral argument. The costs of improving diagnosis and care for mood disorders will be more than made up by savings in terms of reduced disability, improved productivity, and lower medical costs for treatment of the many disorders that depression leads to if not treated properly. Doing the right thing is even better than "free." It will save money in the long run, which today seems to be of more concern than saving people.

References

Centers for Disease Control and Prevention website: http://www.cdc.gov/nchs/fastats/suicide.htm

Miller, Alice. 2001. The Truth Will Set You Free: Overcoming Emotional Blindness and Finding Your True Adult Self. New York: Basic Books.

National Mental Health Association (now known as Mental Health America). 2001. Labor Day 2001 Report.

Whitfield, Charles. 1987. Healing the Child Within: Discovery and Recovery for Adult Children of Dysfunctional Families. Deerfield Beach, FL: Health Communications.

Whitfield, Charles. 2004. The Truth about Mental Illness: Choices for Healing. Deerfield Beach, FL: Health Communications.

Tony Giordano had a 25 year career in consumer market research before depression necessitated a career change. Currently he works in social services program evaluation and as an adjunct college instructor. Tony is the author of a book about his search for the origin of his illness and the challenges of recovery, "It's Not All in Your Head: Unearthing the Deep Roots of Depression" ( http://itnotallinyourhead.com ). He lives in the USA.

How an Economical Depression Or Economical Recession is Created and How it Affects You

The financial world today runs on a different system's approach as, say, before the Civil War. The old currency system was based on certificates of deposit of such valuables as jewels, gold and silver. The currency that the deposited valuables could support could be a maximum of seven times the value of the valuables on deposit. This magical number depended on the amount of bearers of certificates of deposit that insisted on having the certificates of deposit exchanged for the valuables themselves.

Banking experience has proven that no more than 1 out 7 holders of certificates of deposit would demand redemption of their certificates. So, as long as the currency backed by the valuables was not inflated more than 7 times no one would notice any effect of the inflated currency and there would be no run on the bank. The inflated certificates of deposit actually stimulated business.

The present system of currency, however, is based on debt. The more money, governments, people and corporations borrow the more money is available in the market to run business and people's household budgets. If there are no new loans generated and there are no outstanding loans at all there simply is no money in circulation. The Federal Reserve System ( FRS ) would destroy all the currency it could lay its hands on- -and it can lay its hands on most of the money in circulation.

This debt-based currency system was put in effect in the year 1915, together with the adoption of the 16th Amendment to the Constitution and the federal income tax laws and regulations- -the Internal Revenue Service ( IRS ).

The adoption of these three measures in addition to the already adopted Federal Reserve System is self-evident proof of conspiracy of powerful financial figures and elected officials in US government against the people of America. It caused the enslavement of the American people through accumulation of debt owed to our betrayers through a system of currency that automatically, in a rather short time, can bring the nation to irreparable financial ruination. The national debt is beyond control and growing in leaps and bounds daily.

In fact, I heard a televised news cast in the fall of 1995 that announced that Congress had declared the US government bankrupt. The United States of America is now in receivership to the Federal Reserve System. The United States of America still exist in name only but the anchor of the foundation of the US, the free people of America, has been enslaved. The Constitution is now only a means, or a prop of propaganda to make the people believe they still have a nation and that as people they are still free. It is a lie.

Without free people there simply is no United States of America.

What does debt stand for? It stands for a measure of enslavement to the entity a person owes the debt to; especially when one is unable to repay the debt! How did we, the people, get into this enormous debt? The debt was created from absolutely nothing.

For example, say, you ask a bank for a $1000.00 loan. The bank may not really have this amount of money in deposit. But that is no problem; the bank simply requests that $1000.00 in bills must be printed. This takes a little time. This period of time happens to coincide pretty well with the time it takes for your request to be approved. But on what authority is the money printed?

There are no valuables to back the money that was printed. What really backed the request to print the money is your guarantee to pay back the money plus interest over a certain amount of time. You, as borrower, 'is' that authority; yet, you are stuck having to pay the interest on the loan, you are also stuck to make the promised payments on time and also stuck with having the property you purchased through the use of that loan foreclosed on you when you default. Not only did you guarantee to pay back the money you asked for, but your guarantee also allowed new currency to be printed and also gave the bank authority to have more money printed than you asked for. See, you must pay the interest on money the bank created out of thin air on your authority.

How was currency created after 1915? Debt-based money came in circulation because government got the nation instantly into an expensive war about a cause that truly did not concern us at all and government never paid back the money it borrowed. After that war US government got the nation involved in any war it could deceive the people to help it fight. Also, government regularly overruns its budget wantonly and thus needs to borrow on a big scale. It allows enormous trade deficits every year that it never intends to pay back either. You can see that US government deliberately destroyed the liberty and financial independence of the nation and of the people over the last century.

How did the wars the US got involved in get into being? These wars were planned behind the scenes by US government and its conspirator the FRS and the governments of the opposing nation(s). Then, the people were fooled to support government's promoted wars through blatant systems of lies/propaganda so bizarre that it goes beyond people's ability to conceive and understand. The people believed their governing officials and helped fight the wars. The people were herded through clever and deceitful propaganda to fight wars that even though America won on the battle fields yet caused them to lose their national and personal freedoms through the accumulation of debts these wars caused.

I always compare these planned wars between peoples of different nations and cultures to cock fights in arenas where the cocks are enraged against each other to fight to the death of one of them. Truly, there is no difference. Nations of people are like fighting cocks/roosters that fight wars for the pleasure of the powers that own them and that plan and control every event of importance in the world.

News broadcasts are means of spreading propaganda that binds the minds of the masses to the will of the hidden government. It is said that propaganda forms the attitude of the people targeted by the propaganda and makes willing robots of them to do the bidding of those who plan and execute the systems of propaganda- -government.

These three measures enacted in 1915 go hand in hand to form a system of enslavement. The 16th amendment and the income tax are the tools to control and enforce the system of debt-based currency. A decade earlier US government allowed the establishment of a privately-controlled debt-based banking system. In the decade preceding the enactment of the actual debt-based currency, all the requirements, laws and rules necessary to run an effective debt-based currency were worked out behind the scenes so that upon adoption of the above mentioned three measures the system became immediately in enforced effect. It took some fifteen years to remove the bulk of the value-based currency from circulation. The planned great economical depression of 1929 saw to it that the remainder of value-based currency was removed as well.

At the end of the hall leading to all the conference centers in Grove Park Inn in Asheville, North Carolina is an enlarged photo of the victory dinner showing a great hall in this hotel and many of the members of this conspiracy celebrating their victory of the official adoption by Congress and the people of these three measures! This photo cannot possibly show any other interpretation. The subscript says they ere all from Washington, DC.

It must be noted that the Federal Reserve System and its board of supervisors is beyond the control and supervision of US government. It is an entirely independent institution based on a privately controlled trust. The directors of the system are the trustees of the trust. This board of trustees works for the beneficiaries of the trust. It is not generally known who these trustees are; but be sure they exist.

The Federal Reserve System was inaugurated on the promise that the system would stabilize and regulate US business and the currency. The system is known as "a guided economy". As we have experienced over almost a hundred years, the Federal Reserve Board did not live up to its agreements on which the system was based. This board of Trustees is merely working out its own secret agenda without any regard to business and people.

It is a well-known principle among bankers and financiers that the entity that controls the currency of a nation controls the power in that nation. So, the people lost liberty and control over government by government transferring control of our currency to deceitful, independent private parties.

This, again, proves the utter fallacy of democracy. You as voters are so cunningly deceived by your politicians that your vote works against you rather than for you. You are so ignorant of what you are doing, politically, that by voting you prove to be your own worst enemy- -because you vote in total ignorance of the power and cunning of forces behind the scenes.

This whole scenario reminds me strongly of the scenario that played itself off in paradise between Woman and the serpent. There is no doubt in my mind that US government is a venomous serpent as well. US government deceived the people as perfectly as the serpent deceived Woman in paradise.

Artificially created economic depressions or economic recessions are the cause that huge corporations like major car companies, airlines and food companies go belly-up and are taken over by foreign-owned concerns.

That is the way the physical universe has been run as long as human beings were entered into it. You always are your own worst enemy because you act without ever knowing what really is going on. You never know what you are doing and what the long-term consequences are of you actions. The reason, of course, is deceit perpetrated in your trust of others who pretend to be trustworthy but, instead, are cunning, calculated liars.

You can create currency also. If you receive a check from A you can make over the check to B and he can do so to C. This is the honest way because no one charges interest. The FRS does. There is the viper in the grass.

In the physical environment what you believe seems true until you find out (if you are lucky) that you have been duped again. There are so incredibly many schemes of lies out there that you cannot possible understand what you are doing at any given moment. You literally act in total darkness.

This, by the way, is so for everyone- -the deceivers and the deceived because through reincarnations you will constantly exchange roles like in a game of musical chairs. The reason for this is for your soul to learn and understand spiritual ramifications of truths you spurned when your souls (your real selves) were fully conscious in true reality. The belief in falsehood will tumble anyone instantly out of the realm of true reality into a fictitious reality that has its anchor in the lies you believe.

Truly, he who controls the currency of a nation and therefore also controls the propaganda system is king; and he who controls the spiritual propaganda system and thereby conditions many spiritual entities is god over them in a realm of spiritual make-believe.

The universe is such a spiritual realm of make-believe; and our deceiver and god is this one who goes by such names as Yahweh, Jehovah, Brahman, Allah, etc. We as soul entities have been taken in by a cunning and deceiving spirit, and we were led away from true reality into a virtual realm of make-believe. We, all, are there now- -in physical reality, captives in the only hell there is.

In order to immediately create debt-based currency US government deliberately engaged the United States in World War I to create an excuse for government to borrow huge sums of money. It was the beginning of the US National debt- -a debt which is owed to the Federal Reserve System. World War I was the earnest beginning of circulation of debt-based currency.

The inflated value of the currency based on debt is, I am not really sure, also several times the active debt outstanding. US government farmed out responsibility for our monetary system under a set of agreements in contract to which the Federal Reserve System operates. The inflation of the debt-based currency is controlled by clauses in this contract. This inflated currency stimulates more business and, supposedly, does not cause unnecessary inflation in prices or shortages of products.

The Great Financial Crash of 1929 was deliberately engineered and caused by the Federal Reserve System ( FRS ) to remove value-based currency from circulation and to create a dire need for business and private citizens to borrow money to further business and household needs- -a currency now based on debt.

The financial crash of 1929 also gave government the opportunity to establish the Social Security System to, mostly, guarantee government-sponsored retirement payments to everyone who retired from a full life time of work, and it also created systems of corporate entity identifying numbers and private citizens' identification numbers- -in the latter case we call these numbers social security numbers. Originally, this number was very private and no one could coerce you to reveal it, but today almost all financial and corporate institutions will demand this number in order to be employed or to receive financial services.

This assigned social security number, for government purposes, replaces a person's given name and family name. Government, and by that I mean the Federal Reserve System, knows you only by this number. The major impact of the Social Security System for everyone is that a person's status of free citizens was voluntarily changed to "ward of the state"- -comparable to number-identified life stock on a ranch. By the state becoming the citizens' warden government, and by this I mean again the Federal Reserve System through the Internal Revenue Service ( IRS ), has been given control and power over all our affairs.

The 2nd WW was deliberately created to give the major nations in the world a means to borrow debt-based currency on grand-scale, to assert national governments' power and to increase control over the affairs and income of the people.

The Cold War was artificially created in conspiracy with the USSR to allow government to borrow huge funds from the FRS; much of which was given away as foreign aid to many countries and the debts these funds created were never paid off but were just added to the over-all US national debt.

There has never been an entity in the universe that so rampantly and irresponsibly borrowed money and got away with hardly ever paying a penny back as US government. US government simply made the American people responsible for its own irresponsible actions. That is the reason that you are now enslaved to the FRS and International monetary Fund ( IMF) and have the Internal revenue Service ( IRS ) on your backs as your slave manager.

Here again, the national banks are the real but hidden governments of the nations. What we call governments, now-a-days, are management institutions in the service of the privately-held Federal Reserve System//National Banks. I regard the Federal Reserve System as the real government behind the front of US government.

Now, here is the scheme used to create a recession. The Federal reserve System ( FRS ) begins to destroy much more currency than it renews. This creates a shortage of money in the economy. Because of the shortage less new loans are granted and therefore much less new currency is issued. This further decreases the shortage of currency and stops people's ability to purchase items on credit; which in turn causes a slump in production and services.

Businesses cannot honor their outstanding bills and are forced to lay-off personnel. Many businesses will go into bankruptcy and thus more people are without jobs. Jobless people must default on many loans on TVs, cars, boats, insurances of all kinds, and the many other things people make payments on. These things deepen the depression because the financial institutions do not receive the payments they need to stay in business. This will continue to a point determined by the FRS when most of its goals have been reached.

See, how incredibly easy it is to create an economic depression or recession if you have finagled to secure the power to control a nation's currency. You can see US government's unforgivable guilt in this situation.

The point of turn-around of the economy is based on a certain percentage of shrinkage of the over-all domestic money supply. When this point is reached the greatest number of well-established people have lost the major part of their wealth. This was the FRS' purpose to start the economic recession in the first place.

So, when a nation's currency is based on debt one can be sure that economic depressions will occur at regular intervals. It, all, is done to allow the master to be master by manipulating the wealth and production of the people in the nation. What, after-all, is the use of being master if one does not exert one's mastership over the enslaved rabble?

Another serious effect of an economic recession is caused by the Internal Revenue Code ( IRC ) and The Internal Revenue Service ( IRS ). If you make over a $100,000.00 per year you pay a good slice of it in taxes, unless you reinvest much of your earnings in, supposedly, legitimate tax-shelters.

For people on the upward curve of earned income there are some opportunities allowed by the Inter Revenue Service to shelter your earnings from taxes. You are allowed to deduct the interest on the mortgage of your home. Thus many people buy very expensive properties with hardly any down payment. This produces a big deductable item on the income tax forms.

Another example is to buy rental property on which one can make huge write offs for tax purposes. For example, many people buy rental properties requiring big loans to secure title and must spend lots of money in tax-deductible expenses in order to prevent the Internal Revenue Service ( IRS ) from grabbing their money. These individuals owning personal and rental properties are now extremely vulnerable to a Federal Reserve Board planned recession because home owners and renters have been laid off and are in default on home and rent payments.

Therefore, these people cannot make payments to the lending institution and the properties are foreclosed on by the banks. Many people may be laid-off or see their income potential disappear like snow in the sun. If there are no sales in business the incomes of many white-collar workers are severely affected. This affects their ability to pay their monthly bills.

In a depression huge numbers of property are foreclosed upon and are for sale. Very few can afford to purchase the foreclosed properties because money is extremely tight; and whatever savings one has invested in properties secured by a mortgage then disappear in the nothingness from which the loans were originally pulled.

Financial institutions cannot lend funds because of all the defaults in mortgage loan payments. Financial institutions will thus have huge inventories of cars, boats real estate, etc. that they cannot get rid off without experiencing huge losses. Thus, privately organized banks will go bankrupt as well.

Those holding other kinds of (mortgaged) investments cannot sell them unless at great loss. An economic depression will thus creep around to hurt almost every one.

In the present economic depression US government pumped 1 trillion dollars into the world-wide economy. Where do you think that money came from? It was created and lent from thin air and printed while the trillion dollars debt and the yearly prime rate in interest attached to it were simply added to the US national debt. No problem, Government is the Wizard of OZZ, but it never pays back the loans. So this government's financial help turns out to be a shorter chain between your leg and the iron ball.

The problem with the debt-based money system is that loaned money is created from thin air but once the loan exists it is regarded as if the debt was underwritten by pure gold. The debt will not evaporate like water from a lake. The water (debt) is frozen and not a molecule of it is allowed to escape. In the example of a lake, water freely comes into it through the process of precipitation; and some of the water collected in the lake is allowed to evaporate to join the mass of water held as vapor in the atmosphere. This is not so with the national debt. It was created from nothing but once it exists as national debt it is like the rocks in the earth. It suddenly acquired real substance- -through a process of financial and reversed book-keeping hocus-pocus.

If you are not in-the-know about these things you will always be betrayed by those in whom you placed your trust and you will be like lambs led to be slaughtered.

This set-up, folks, is what the FRS considers "guided economy". Every so often those with large savings are separated from their funds like fattened and slaughtered chickens are stripped of their feathers.

Once the goals of their plans have been realized the FRS will expand the money supply and allow business to expand along a calculated upward curve but with a new crowd of potential 'heavies' seeking control. When the recession is over most everyone must start over from scratch.

However, another effect of an economic depression is that many formerly financially well-established folks are now dejected, in psychological depression and are as poor as church mice while a new, younger and more vigorous group of entrepreneurs will start to create an abundance of wealth for themselves.

This newly educated bunch of youngsters, having more ambition and guts than those who lost most of their assets, now have the opportunity to become wealthy; and when they consider themselves set for life the FRS creates another economic recession, etc, etc and strips them of their wealth. In the present environment of conspiracy between the FRS and government, no one can win permanently other than the FRS and its beneficiaries. These beneficiaries own the whole set-up and make nothing but profits.

Your financial and psychological fate rests entirely in the might and power of the national bank of your nation and that fate will blossom and wilt before you are of retirement age. The governments of the world, now, are no more than servants of these privately held, untouchable, national banks. You can vote until you appear to have purple and gold in your countenance, but it will do not a single bit of good in controlling the real government of your nation. The true governments of the nations, the national banks, are secure from the vagaries of the voting process. Your vote is worth absolutely nothing!

Today, these national banks are confederated into a single body known as the IMF- -the International Monetary Fund. The people of the world were simply enslaved by their governments to the national banks without anything having been paid for their enslavement. It is a grosser rape than the revolution and communist take-over in Russia and of Negroes uprooted from their native soil and sold into slavery all over the world without anything of value having being paid in return.

The only manner in which I can see redemption from the enslaving grasp of the IMF and its member national banks is when the debt created by the businesses and the people of a country is owned by a truly, people-controlled government (I mean controlled in fact by the people). The system of currency cannot be held by private parties. If we would have this system there would be no purpose to embroil the people in a constant procession of wars and economic recessions.

If the debt is controlled by a truly people-controlled government then the debt can be simply evaporated even as private, debt-based wealth is now evaporated through artificial manipulation of the economy. The national debt could regularly be declared non-existent by government action so that no one will feel a loss, but instead will have a renewed confidence in government. The debt-based currency, after all, exists only to conduct and further business among ourselves. Once the purpose of the nationally granted loans is realized there is no need to keep them on the books.

Debt would then drive the debt-based currency and economy, but debt would not be an enslaving factor because the people are the debtors and the owners of the debt. In truth, in the present system they are the owners of the debt also because the debtors are the underwriters of the creation of the currency. The problem is that the people do not know that. Such a new system would be wholesome and would encourage business and the accumulation of private wealth without hurting anyone.

We would thus no longer encounter the ridiculously high debts the nations owe the national banks. The Federal Reserve System, in fact, would be a valid, accountable department in a servant-based government that is wholly controlled by a governing, voting public. We would again have a republic rather than a useless democracy. Government would be in authentic power without the innumerable criminals that now hide in, around and behind the scenes of government.

Presently, you are physically as enslaved and as totally helpless in your enslavement as the Negro slaves were some two hundred years ago. The slaves in America found their redeemer in President Lincoln and all of you today may have a redeemer in my writings.

My writings will inform you of your physical and spiritual entrapment. I use physical conditions only as examples to show how utterly entrapped we are in our soul entities. Remember, the spiritual realm is for real and thus your soul exists. If your soul is real, what, possibly, can be your physical entity but a nightmare of soul in spirit! Either the physical environment is real or the spiritual environment is real.

The universe cannot be real because everything in it dies, deteriorates or vanishes- -including the world and the heavens that contain it, according to Jesus- -and new things appear in their places. Know that Jesus is right; the universe had a beginning and it certainly will have its end! And no one knows when that will be! Is that not strange? It proves that someone is playing hanky-panky with our spiritual minds.

An example of things that vanish can be a program you are watching on TV. While you are watching the program the electricity goes out and the program you are watching vanishes into absolute nothingness. The universe is as contrived an entity as the TV program you were watching. It seems to be there but it can vanish without warning.

I am a spiritual redeemer. I received my understanding from Jesus of Nazareth's words in context with some of the writings of Moses given in the beginning of the book of Genesis and through an awful lot of personal study, experience and insight gained in this life. Jesus' teaching could not redeem us before because we as soul-entities were too engrossed in being human to ever be aware of our reality-shattering state of spiritual enslavement, delusion or even aberration.

Our spiritual existence has been hidden in betrayals of reality within a virtual reality within more virtual realities. In our spiritual existence we have lost our identity in true reality and are now possibly lost forever in virtual mind delusions. The god we know as humans and as souls is our deceiver and enslaver, even as the financial wizards in conspiracy with governments, presently, are our deceivers and enslavers.

I was spiritually guided to understand the meaning and purpose of the utter powerlessness of physical life and I have been given time to inform you of your condition. I gave it all to you in books and articles. I have not much time left. I am in old age and I will not be among you very much longer.

Some of you will heed my words and find financial liberty in this life and spiritual liberty as souls in spirit. The rest of you will eventfully go down, together with all the utterly spiritually uninformed into the hell of irredeemable spiritual existence as wild and hunted animals in a virtual setting of physical nature- -the possibility of spiritual understanding and redemption lost forever.

The greatest problem we have as humans is that we mistake our real enemies for friends and our true friends as enemies or as people one must not take too seriously; and, also, that we confuse our true spiritual father with a deceiver.

That is because our enemies have silken tongues but our true friends tell us the truth.

Those who will never come in contact with my writings will have an excuse because they never knew any better; but readers of my writings who disregard the truth of their condition presented in my articles and books are without excuse. Upon your physical expiration, whether you are of the clergy, a lay person, an atheist or a powerful financial wizard, there will be no help for you ever. Your religious beliefs or your by-propaganda-ingrained personal stances toward spiritual reality and toward physical life form your sole personal and spiritual prisons.

My writings deserve your full attention, consideration and reflection in reaching a decision about your fate as a conscious entity physically and as a lost soul spiritually.

Amen!

Hans van Krieken

To get a better grasp on true reality and to get a better, government-proof, investment idea follow these links: http://thetruthabout-reality.com and http://www.win-bets-consistently.com.

c) Copyright - Hans van Krieken. All Rights Reserved Worldwide.

Texas Finds Hope For Treating Depression - A Genetic Link to Medication's Effectiveness

Genetic testing may help determine the most effective medications for depressed patients in the future. This month, the American Journal of Psychiatry published research citing patients' responses to the anti-depressant medication, Celexa, in association with certain genetic variations.

According to Dr. Gonzalo Laje, co-author of the study and associate clinical investigator at the National Institute of Mental Health, patients were twenty-three percent more likely to respond to the medication when a particular variation in the GRIK4 gene, along with a previously discovered variation on the HTRZA gene, were present.

"We are better able to see how genetic variations help determine how a person may or may not respond to a certain medication. This is an advancement toward personalized medicine," said Laje.

The healthcare and health insurance industries have been plagued with medical and financial issues associated with depression. In 2002, adults served by local mental health authorities in Texas included over 53,000 depression patients -- and that number only includes those who sought care at those facilities, which, by no means, reflected the whole of the depressed populace at the time.

State budget cuts to mental health services would dramatically reduce the number of those able to receive treatment, which would push problems -- many argue preventable problems -- into the emergency rooms. Ninety percent of suicides are due to untreated or under-treated mental illnesses; for Dallas, Houston, and Austin, where facilities are already overwhelmed by the sheer number of uninsured patients seeking care, any further strain could collapse a barely-balanced system.

As the population in Texas state mental hospitals goes down, the prison population goes up. According to the Texas Criminal Justice Policy Council, in 1970, there were approximately 12,400 mental health patients in state hospitals on any given day, including those suffering from depression. That number declined to just over 2,300 by 1999, while the prison mental health population rose to almost 16,000, exceeding the1970 state mental health institute population.

This dramatic increase in prison numbers has not only created problems in the general populace, but has also sucked down state funding. Texas could save an estimated $590 million a year by treating 'revolving door offenders' instead of jailing them.

While the precise number of depressed patients in each state is difficult to determine, according to the National Institute of Mental Health, there are 20.9 million adults in the United States suffering from depression at any given time. That's almost ten percent of the country.

Women are more prone than men, and symptoms are usually recognized between the ages of fifteen and thirty, though the mental health community has been taking childhood and adolescent-onset depression much more seriously in recent years. Severity ranges from mild -- which only slightly impairs functioning, perhaps manifesting itself as one "not living up to potential" -- to severe, which often devastates relationships, income, and day-to-day living, and can lead to suicide.

While depression is considered a treatable disease, just how treatable has been up for debate virtually since the illness began to be studied. Patient compliance has been a major issue, partly due to the nature of the disease itself, which produces persistent feelings of hopelessness, helplessness, worthless, and loss of interest and motivation.

The worse one feels, the harder it may be to feel hopeful and motivated enough to seek, and then follow through with, the proper care. If one does overcome these symptoms sufficiently to accept treatment, various factors, including financial barriers, accessibility problems, and lack of response to medications, can make it difficult to continue the regimen.

Lack of response to medications has been one of the more persistent and difficult obstacles to conquering the condition. For some, the first medication seems to work wonders, but many are not so lucky. Several cycles of different types of antidepressants are often required to pinpoint effective prescriptions, if they are found at all. Choice of medications are many and overwhelming, and include:

• Selective serotonin reuptake inhibitors (SSRIs), like Celexa, Paxil, Prozac and Zoloft;

• Tricycles, like Elavil, Norpramin, Tofranil, Aventyl, and Pamelor;

• Serotonin and norepinephrine reuptake inhibitors (SNRIs), like Effexor and Cymbalta;

• Norepinephrine and dopamine reuptake inhibitors (NDRIs), like Wellbutrin;

• Monoamine oxidase inhibitors (MAOIs), like Marplan, Nardil, and Parnate.

It is believed that the causes of depression are varied, and often depend on the functioning of certain neurotransmitters, such as serotonin, norepinephrine, and dopamine. Though there are commonalities among many of the medications, each can have varying side effects -- some severe – can focus on different neurotransmitters, and can produce different response levels, depending on the patient.

Laje's research could prove to dramatically shorten the lengthy trial-and-error process often necessary for determining prescriptions, as science currently has no truly effective way of profiling patients in this manner. "This [study on Celexa] gives us very relevant information to where we should be looking," said Laje, which is, at least, more progress than Western medicine has made in treating depression for quite some time.

"There's no one marker that's going to tell you whether you respond or not [to medications]. It's a lot of markers, each one having a small effect," said Dr. Julio Licinio, chairman of psychiatry and behavioral sciences at the University of Miami's Miller School of Medicine. "…[scientists] may be able to develop a genetic panel to tell us whether a person is likely to respond to an SSRI or not."

More and more depressed individuals are turning to natural health treatments, however, such as herbs, acupuncture, massage, and other forms of complementary medicine. St. John's Wort (Hypericum perforatum) is the most prescribed treatment for depression in Germany, and is used commonly throughout Europe for mild to moderate cases. Results of studies are mixed, however, and the National Institutes of Health is still undertaking research to determine the herb's effectiveness on mild cases. Other natural supplements used to treat depression include ephedra, gingko biloba, Echinacea, ginseng, various Chinese formulas, and SAM-e, perhaps the most promising natural treatment in recent years.

Being aware of the psychological issues affecting your health is an important part of taking care of yourself. Minding your health will certainly affect you as you age, and eventually your wallet. If you’re a young individual who tries to keep informed and maintain a healthy condition and lifestyle, you should take a look at the revolutionary, comprehensive and highly-affordable individual health insurance solutions created by Precedent specifically for you. Visit our website, [http://www.precedent.com], for more information. We offer a unique and innovative suite of individual health insurance solutions, including highly-competitive HSA-qualified plans, and an unparalleled "real time" application and acceptance experience.

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