CAUSES OF RECESSIONS

 

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 flowed in to occupy part of alcohol's market niche since 1920 felt the causality on their hides. The worst of the 1929 market breaks came when the Opium Advisory Committee handed its recommendation that the League organize a global crackdown on the production of not just addictive narcotics, but any leaf, twig, vine, tea, cactus or fungus capable of inducing any pleasure whatsoever. This occurred the first week of September, 1929, and the markets never recovered until war broke out anew in 1939. 

With the Al Capone tax case as background, and with aid and comfort provided by Hoover Appointee Harry Anslinger in 1931, U.S. policies wrecked Germany's drug industry, toppling the house of cards whereby Germany had been making reparations payments to debt-laden Allies. Germany's chemical industries reacted by financing the truculent and xenophobic National Socialist Party. Herbert Hoover Prohibitionists concurrently had the bad luck of zealously wrecking the U.S. economy and were ostracized from executive office shortly after Hitler's elevation to power--for two decades!

Soon after the usual war, prohibitionists in 1949 renewed their vow to rename everything a narcotic and ban it globally. That pledge was renewed in 1958 so March 1961 brought the "Single" global prohibitionist convention with its calendar. With JFK out of the way, Nixon rampaged in 1969 and a drug recession resulted. Asset forfeiture was weaponized in 1971. Then came "Psychotropic", then War on Drugs, then the MAR 1972 plot to revisit 1961 promises to ban stuff with its 15-year deadline... meaning 1986! Reagan timely revived global prohibitionism, the Crash crashed in 1987. Bush2 hoisted the sumptuary banner urging cops to practice faith-based asset forfeiture looting of homes. Suddenly 2008 mortgage derivatives Crash gets Obama elected in a Great Recession. Wallace/Reagan voters wail "a Black America will lose its greatness" (Ole Miss, 1962). Gary Johnson redealt 127 electoral votes & accidentally squeaked Trump into office. Is any of his true? How does the record look? Do recessions accompany laws making production and trade a crime? 

03DEC1949: 1. The Economic and Social Council of the United Nations, by resolution 689 J (XXVI) of 28 July 1958, decided to convene in accordance with Article 62, paragraph 4, of the Charter of the United Nations, and with the provisions of General Assembly resolution 366 (IV) of 3 DECEMBER 1949, a plenipotentiary conference for the adoption of a single convention on narcotic drugs. Seventy-three countries were drawn into its web. Ten years later gestation was well under weigh and pecking order firmly established. Observe the onset of recession-level unemployment in the chart above.  

28JUL1959: from 03DEC1949: 1. The Economic and Social Council of the United Nations, by resolution 689 J (XXVI) of 28 July 1958, decided to convene in accordance with Article 62, paragraph 4, of the Charter of the United Nations, and with the provisions of General Assembly resolution 366 (IV) of 3 December 1949, a plenipotentiary conference for the adoption of a single convention on narcotic drugs. Background to this was the December 1949 resolution, coinciding with recession-level unemployment in the chart above.  

30MAR1961: ...and the term "Single Convention on Narcotic Drugs" means the Single Convention on Narcotic Drugs signed at New York, New York, on March 30, 1961. Recommends that the Parties: 1. Should bear in mind that drug addiction is often the result of an unwholesome social atmosphere in which those who are most exposed to the danger of drug abuse live; 2. Should do everything in their power to combat the spread of the illicit use of drugs; Nixon was defeated and this version contained no 25-year deadline for enacting worldwide prohibitions in 1986. Yet the recession in the chart above indicates someone had a bad feeling about all this prohibitionism.

21SEP1969: Operation Intercept was an anti-drug measure engaged by President Richard Nixon—effective 21 September – 11 October 1969—that resulted in a near shutdown of border crossings between Mexico and the United States. Observe the close fit with the 1969-70 recession in the chart above, well before the so-called "Nixon Shock."

27OCT1970: [To accompany H.R. 1658] July 1999 (https://www.congress.gov/congressional-report/106th-congress/house-report/192/1)

The Comprehensive Drug Abuse Prevention and Control Act of October 27, 1970 made civil forfeiture a weapon in the war against drugs. Here too, note the recession bar conjoined with the 1969 violence of law date in the graph above. 

21FEB1971: (31) The term "Convention on Psychotropic Substances" means the Convention on Psychotropic Substances signed at Vienna, Austria, on February 21, 1971. Few Americans knew of this pincer movement. Many crashes and recessions occur as realization set in that bad things are about to happen. 17JUN1971 was when Nixon announced the "War On Drugs." Observe the lengthy recession bar not long afterward in the chart above. 

06MAR1972-24MAR1972: United Nations Conference to consider amendments to the Single Convention on Narcotic Drugs, 1961, met at the United Nations Office at Geneva. Ninety-seven countries show up eager to have their economies destabilized through America-led asset-forfeiture looting, reefer madness, cocaine negroes. At this convention the 1961 original was retroactively jimmied to include in Article 14 a 25-year deadline for international banning of everything that could possibly be banned, which meant 30MAR1986, about the time Nancy and Ronald Reagan went Reefer Madness with Just Say No, mandatory testing, fining federal employees and invading other countries to loot assets and burn crops. Once realization dawned as to what had transpired in, lengthy recession set in before 1974 through into 1975. Unemployment never dropped back to its palmy 1969 levels until Obama left Office. 

We'll be looking at more Prohibition Panic coincidences with this same unemployment chart, so stay tuned.  

Good Reading: A Religious Orgy In Tennessee, by HL Mencken.(link) I found the paperback overseas, and well worth the price. The chapters are Mencken’s own reporting on the Scopes Trial in Tennessee’s prohibitionist War on Science and Education. Most striking are the parallels between the book burning yokels of 1925 Dayton and today’s national resurgence of White Stupremacy no less deplorable. (link) 

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, as cheap as a pint of craft beer.

Brazilian Sci-fi from 1926 featuring the Hollywood-style beautiful daughter of a scientist touting prohibition and racial collectivism in America’s Black President 2228 by Monteiro Lobato, translated by J Henry Phillips (link)

Brazilian blog… Expatriotas

American blog… Libertariantranslator, with contact form

ASYLUM APPLICATION FORM i589 INSTRUCTIONS IN PORTUGUESE: INSTRUÇÕES PARA O FORMULÁRIO DE ASILO i589. What we did was make the instructions accessible to and understandable by people accustomed to thinking in Portuguese. This costs one dollar ($1) and you can read it on a cellphone with the Kindle app.(link)