Demonstration, money and economic depressions

We (people from several organizations) had yesterday demonstration in front of Nordea bank as it also laid out loads of workers while at same time getting huge profits. The demonstration was most peaceful with also meditations in the bank hall itself, as it was so cold outside. Some activists took out their savings from the bank too. I took part with speeches and reading my poem, which I also gave to some bank staff and managers: Here first in Finnish then in English.

No bail outs!
Puhelimeen saa vastata!
Ei veronkiertoa; pankit kuriin!
Kiitokset ilmaisista odottamisajoista!
Vanhuksia ei saa ryövätä pankkimaksuilla!
Palvelu on vilpitöntä antamista, ei pankkimaksuja!
Asiakkaille seiväsmatkoja tutustumaan veroparatiiseihin!
Ei saa luoda rahaa tyhjästä, koska tyhjästä on paha nyhjästä!
Ei keinottelua, rahat kultakantaan ja vaikka valtio printatkoon ne!
Työttömäksi jätetyt pankkineidit takaisin voittojen kohtuullistamiseksi!

No bail outs!
You may answer to telephone!
No tax avoidance - control for banks!
Thanks for free queuing times!
Old people should not be robbed with bank fees!
Service is just giving, not bank payments!
Customers should get free trips to research the tax heavens!
Not to create money from nothing because it is bad to take from nothingness!
No manipulation, money to be backed by gold and government should print!
The laid off bank officials back, so not so much problem with profits!
..............

Gold bullion and depressions: When the money at present is not backed by any gold or real asset, it can be printed just like that in the mints, or even created by computer entry. The result in long run is debts, inflation and economic depression. There are some arguments whether money should be backed by gold or not? Other solution suggested is that money printing should be given into the hands of government alone. Questions come to my mind; what about if some country would still print money enormously? And in case if money has to be backed to gold etc asset, then how the inequality can be prevented between nations, if some country is poor with its assets??? Anyhow Sarkar was convinced that money should be backed to gold bullion etc, so let it be.

At present just any banks or any central banks can create money. The central banks are not necessarily government banks. Like US Federal Reserve – it is said to be owned actually by private banks, nothing much to do with government. It is advantage of such banks to print money and create rather inflation, as otherwise during recessions, deflation might come and that is not good for the banks.

It is interesting to see what else Sarkar said about worldwide economic depression etc:

Economic Depressions, 17 Jan 1988, Calcutta
In the economic sphere, you must know that two factors are very important. The first is that money will have to be kept in circulation. It must be understood that the more the purchasing capacity of money is not utilized or money is kept stagnant, the more the economic stratum is damaged. The second is that money, and indirectly its interest, can bring about disparities in wealth…. If these two fundamental factors of economics are even partially forgotten, a worldwide economic depression will result.

Even if countries or socio-economic regions which have been maintaining a stable economic standard engage in trade related to bullion with other countries, they will have to suffer such a depression partially if not totally. If countries which are prosperous in various spheres and economically unrelated to other countries undergoing a depression, invest their wealth in enterprises of a non-yielding nature such as excessive defence spending, superfluous construction of large buildings, luxury goods, etc. – investments which do not earn any income in return – these countries will also suffer from economic depression.

However, if a country discontinues trade related to direct or indirect economic transactions and commences barter trade instead with other countries, it will not suffer much from such an economic depression. In this case only a very slight economic depression, which is hardly felt, takes place at the end of every financial year due to imbalances in economic transactions.

Over-industrialized countries also find it necessary to keep industrially undeveloped countries within their control in order to use them as a market for their finished goods. If they do not get a market to sell the consumer goods produced in their countries, they will suffer from economic depression and growing unemployment.

The difference between the previous depression and the future depression will be that in the previous one there was little inflation, but the future depression will be associated with inflation. Hence, it will be more detrimental to the integrated development of human society.

An endeavour should be made to shorten the span of this economic depression. Before the final culminating point comes, it is possible to avert the disaster and accelerate the speed of social movement. Prout...

The currency should be backed by gold or other real asset…

The more that money is invested in developmental programmes, the better it is… increasing the expenses of a government department at the cost of developmental programmes amounts to committing economic suicide.

If production is increased through investment in developmental programmes, the purchasing capacity of the people can be increased without increasing their salaries. When purchasing capacity is increased, both government and non-government employees will benefit…In pure economic terms developmental programmes are those programmes which directly increase national wealth and indirectly support this increase.

If the production in a country is abundant and the gold bullion reserves are in proportion to the country’s economic position, there is no possibility of inflation. However, if the circulation of the capital decreases as a result of staticity and the quantum of production also goes down, then inflation is bound to take place.

If a country has a constant deficit in foreign trade, in that case also there is the possibility of inflation. In addition, if foreign trade is not conducted according to the barter system and the country has to import foodstuffs and export raw materials, inflation will certainly occur.

On the other hand, if there is sufficient production and adequate supply, but suddenly the quantum of demand falls, then the value of money suddenly increases for the buyer. This is called “negative inflation” or “deflation”.

The banking system must be vigilant about two important points. First, the intrinsic demonic greed of the banks must not be allowed to jeopardize the life of the common people…Secondly, the banks must not allow unwise administrators or governments to print monetary notes indiscriminately without reserving the proportionate amount of bullion in their treasuries.

The first defect not only ruins low and middle income groups, but also impoverishes wealthy people. The second defect destroys the very life of society. It leads to widespread inflation, which in turn jeopardizes internal trade and commerce as well as foreign trade and barter. Even if there is abundant production in a country, the common people do not benefit. The rich become richer and get more scope to continue their merciless exploitation. In state capitalism, the exploitative rulers tighten their grip over society even more. State capitalism may call itself capitalism, socialism or communism, but ultimately it stands before the masses as more dangerous and bloodthirsty than bloodsucking ghouls and demons.

If people oppose the banking system because they are guided by selfish whims or any other sentiment, then their economy will stay in the dark ages. They are bound to lose equipoise and equilibrium in the physical sphere, remain lopsided in the psychic and spiritual spheres, and reduce themselves to objects of ridicule.

So you see, the fundamental aim of the banking system is, “Keep money rolling.” Let governments be active…And let the colourful saris of the weavers be purchased and worn by the newly married brides, adding to the beauty and prosperity of society.

It is doubtful whether the Supreme Creator, let alone humanity, has the right to punish those who commit crimes due to poverty. Still, from the moral standpoint, I cannot support criminal acts. I would suggest that before committing such crimes they should become revolutionaries. It is the duty of those with a good knowledge of morality to guide them in their revolutionary activities. Let them separate the gold from the dross in the fire of revolution.

….A unit mind which accepts gold or silver as the goal of life gradually becomes transformed into gold or silver. The psychic waves, as a result of constant ideation are first transformed into the waves of gold or silver and finally into crude gold or silver itself as a result of jad́asamádhi. Later on it is reborn as a gold or silver, and spends its days confined within the safe of a money-minded merchant. This undesirable situation is called narakavása or life in hell.
...............
Didi Annapurna