Posts

Causes of 1980s Recessions, Crash

Image
  The blue line is unemployment, grey bars recessions. We now examine 1980-1990.  On 19 February 1980, the Commission on Narcotic Drugs decided to ask all governments to implement to the fullest extent possible sweeping countermeasures against drugs declared illegal, and recommended crackdowns: 3 (XXVIII) ... on financial assets and transactions related to illicit traffic … and subsidized equipment and technical assistance to prohibitionist countries.( link ) The muckraking journalists on 60 Minutes--who stirred national panic after a TMI reactor malfunction injured no one--promptly fanned hysteria against Bolivian plant drugs neither habit-forming nor addictive.( link ) The recession in 1980--like the Great Depression caused in part by League of Nations prohibitionism--is thus clearly discernible in the first quarter of 1980.  Inflation went to 13%, then 15% and the San Francisco Fed presented an unconvincing theory reminiscent of Herbert Hoover's "explanation" of the...

Causes of recessions after 1973

Image
  Again, this is that same chart showing unemployment and recessions 1973-74 : The DOW was high early 1973 as the pro-choice, anti-draft Libertarian Party got an electoral vote. Women became rightful individuals a couple of weeks later and the U.S. was driven out of Vietnam as unemployment dropped to 1960 levels. Nixon's Watergate burglars soon dominated the news until mid-October , when a Brussels bank was investigated for odd exchange transactions with German banks.( link ) The  New York Dow Jones average dropped from 1000 to about 600. Germany down from 800 to 550. France dropped from 100 to below 50. London dropped from 500 to 175. Italy showed wild zigzags, net loss. Holland dropped from 170 to below 100. Australia dropped from 650 to 75. Canada fell from 220 to below 150. Japan down from 410 to 275. Hong Kong 1000, spiked to 1800, then dropped to about 220... Why?  On 22JAN1973 , the same day the  Supreme Court voted by a margin of 7-2 that a woman had a consti...

CAUSES OF RECESSIONS

Image
  This is a chart of the unemployment rate, not stock prices The UN replaced the League as Global Prohibition Organizer in 1945, after the opium war historians obediently refer to as WW2. This made sense the same way transferring the banning of plant leaves from the Hague to The League--by way of the Treaty of Versailles--made sense. After all, that early effort had appeased China into calling off its boycott of U.S. goods. But it also resulted in two Balkan Wars and WW1 as the members of the Opium Advisory Committee gleefully wielded the Versailles Treaty and Geneva dope convention as a club with which to put competitors--such as Germany and cannabis--at a disadvantage.  Few perceived the connection between the forced financial oscillations of 1927, 1928, 1929 and waves of banking panics that swept the USA with the income tax was weaponized against the twin evils of the alcohol and drug traffic. But America's homegrown alcohol industry and the burgeoning drug trade which flo...

Connecting Prohibition, Crash, War dots

Image
Typical drug manufactures chart, 1930 No American schoolbook mentioned the Opium Wars until Brian Inglis published The Opium War in 1976, the election year the Libertarian Party ran its second slate of candidates demanding repeal of drug prohibition laws. The audiobook version is now available.( link )  Brian's other drug book, the Forbidden Game, gives further insights into how prohibitionism developed as a cudgel with which pharma cartels wielded government laws as marketing tools and double-edged weapons once the colonial harnessing of addiction was out of the bag.( link ) The link between the dragooning of political States into marketing tools and weapons of economic warfare is not the sort of thing those political states extoll with pride. Enormous effort goes into disguising the fact made plain by Adam Smith in 1775 that wars prohibiting production and trade necessarily wreck national economies, just as purging the violence of law from trade relations gives rise to the Wealt...