Causes of recessions after 1973

 

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 constitutional right to an abortion, the twenty-fifth session of the Commission on Narcotic Drugs was held at Geneva from 22 January to 9 February 1973.(link) Recall that the 1969-1970 recession above--with steep unemployment--matched Nixon's Operation Intercept which segued into the Convention on Psychotropic Substances signed at Vienna, Austria, on February 21, 1971. On the chart above, surprise, surprise, in mid-October 1973 we have the start of another recession. During the gap campaign funding irregularities and burglars hired to break into Democratic headquarters occupied the Nixon Administration, which issued heated denials of wrongdoing in August. Nixon was cornered, quit, was pardoned by Ford for all high crimes, felonies and treason on 08SEP1974... but the deadly prohibitionism he left, like a stray dog, on America's doorstep, persisted with the huge increases in unemployment, inflation and stagnation shown above. 

 

Unemployment increased under the weight of deadly new prohibitions enforced worldwide by men with guns. Ford and running mate Dole were tossed out by voters and unemployment fell during the Jimmy Carter Administration. 

Next up: Ronald Reagan revives Herbert Hoover and Adolf Hitler's Christian National Socialism with help from fellow mystical jihadists. 

Good Reading:  INTERNATIONAL NARCOTICS CONTROL by L.E.S. EISENLOHR, Arno Press, NY, 1981. This highly slanted government propaganda book opens with the Establishment of the Opium Advisory Committee and covers it's work, bizarre plans and trial balloons, monopoly control, the establishment of the  Permanent Central Opium Board and its functioning, and several chapters on how deadly coercion can control production. All of this papers over entirely the fact that the Hague Opium Convention, organized to placate Qing China, was re-tasked as a weapon in cartel warfare. Americans wanted to include beer, wine and brandy but dared not lest they become a laughingstock. So the U.S. devoted all efforts to banning South American cocaine--a drug much like coffee. Eurasians meanwhile exploited the bureaucracy--funded in large measure by the fanatical Herbert-Hoover-Harry Anslinger Axis--to back its efforts to ban cannabis, which is neither toxic nor habit-forming, precisely to make opium more expensive and profitable. The truth is not always a pretty thing. Find this book on bookfinder.com

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)

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)

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)

Connecting Prohibition, Crash, War dots

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 Wealth of Nations.(link) As Smith cannily observed "We rarely hear, it has been said, of the combinations of masters, though frequently of those of workmen."

So ingrained by conditioning is blindness to the prima facie obviousness that banning trade brings Panics, Crashes, Depressions and War that the very suggestion that Prohibitions on commerce--be it of liquor, drugs or books--elicits an almost instinctive skeptical reaction worthy of the attention of the son of a deputy opium inspector second-class. Eric Arthur Blair, better known by his pen name George Orwell, was in fact just such a son and in 1930 wrote a book the publication and sale of which was soon banned throughout the British Empire.(link) This blog mostly unfolds a tale of the whys and wherefores of this censorship. You and I are examining the facts it conditions people to ignore by methods proven to sell liquor and cigarettes.(link)

The chart above claims that German production of morphine fell in 1930 to a level lower than the previous five years of rapid population growth. Nobody mentions that American prohibition laws urged ahead by Chinese trade boycotts as of 1905, had expanded internationally via the Hague until war exploded in morphine-exporting Europe. The Versailles surrender treaty operated by the League of Nations took over drug cartel prohibitionism--in its Article 23--and also demanded Germany pay war reparations to the European victors. German morphine found its way to the USA as a replacement for alcohol, but those clandestine exports were hampered by the establishment of the Advisory Committee on the Traffic in Opium and Other Dangerous Drugs on 15DEC1920, the day before liquor was banned by U.S. law. The subsequent  Jones-Miller Act of 26MAY1922 creating Federal Narcotics Control Board soon played a role in wrecking the German economy.(link) Government schools elide these laws and focus instead on French incursions into Germany's Ruhr region and the horrors of hyperinflation.(link) 

America's War On Beer and Gin led to enforcement of the Prohibition Amendment via the Income Tax Amendment. This method leaked over into so-called "narcotics" as of 16MAY1927, and all German industrial output fell sharply, as the 1927 morphine bar shows on the League of Nations chart above. That same politician, Wesley Livsey Jones, wrote a law making even beer offenses a felony in March 1929, one month after the League of Nations Opium Advisory Committee meeting in Geneva spent two weeks in lively discussions of ways to enforce prohibitions on the "illicit" traffic in what it called "dangerous drugs." 

The word CRASH described the U.S. financial situation in Time Magazine in its 21APR1929 edition.(link) But the word CRASH soon returned to journalistic vernacular, for the Opium Advisory Committee turned its report and recommendations over to the League of Nations which met on 02SEP1929. These came complete with Chinese recommendations that drug manufactures be limited by government fiat and that China be given a world monopoly on producing opiates. Three days earlier, talks on war reparations payments at the Hague were concluded. Check any interactive chart and you can see that stock prices changed from rising to falling on 03SEP1929. There are lots more of these examples. 

Good reading: The Forbidden Game: A Social History of Drugs, Kindle Edition, by Brian Inglis. This brilliant Irishman assembled a fluent and readable history of the way prohibitionism extended its reach throughout all global trade and production. (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)

Volstead Act Totalitarianism, Section 6

Since production and trade— not violence—were decreed to be crimes,
the best men of Europe had no choice but to become criminals. --Ragnar

SEC. 6. No one shall manufacture, sell, purchase, transport, or prescribe any liquor without first obtaining a permit from the commissioner so to do, except that a person may, without a permit, purchase and use liquor for medicinal purposes when prescribed by a physician as herein provided, and except that any person who in the opinion of the commissioner is conducting a bona fide hospital or sanatorium engaged in the treatment of persons suffering from alcoholism, may, under such rules, regulations, and conditions as the commissioner shall prescribe, purchase and use, in accordance with the methods in use in such institution, liquor, to be administered to the patients of such institution under the direction of a duly qualified physician employed by such institution. 

 All permits to manufacture, prescribe, sell, or transport liquor, may be issued for one year, and shall expire on the 31st day of December next succeeding the issuance thereof: Provided, That the commissioner may without formal application or new bond extend any permit granted under this Act or laws now in force after August 31 in any year to December 31 of the succeeding year: Provided further, That permits to purchase liquor for the purpose of manufacturing or selling as provided in this Act shall not be in force to exceed ninety days from the day of issuance. A permit to purchase liquor for any other purpose shall not be in force to exceed thirty days. Permits to purchase liquor shall specify the quantity and kind to be purchased and the purpose for which it is to be used. No permit shall be issued to any person who within one year prior to the application therefor or issuance thereof shall have violated the terms of any permit issued under this Title or any law of the United States or of any State regulating traffic in liquor. No permit shall be issued to anyone to sell liquor at retail, unless the sale is to be made through a pharmacist designated in the permit and duly licensed under the laws of his State to compound and dispense medicine prescribed by a duly licensed physician. No one shall be given a permit to prescribe liquor unless he is a physician duly licensed to practice medicine and actively engaged in the practice profession. Every permit shall be in writing, dated when issued, and signed by the commissioner or his authorized agent. It shall give the name and address of the person to whom it is issued and shall designate and limit the acts that are permitted and the time when and place where such acts may be performed. No permit shall be issued until a verified, written application shall have been made therefor, setting forth the qualification of the applicant and the purpose for which the liquor is to be used. The commissioner may prescribe the form of all permits and applications and the facts to be set forth therein. Before any permit is granted the commissioner may require a bond in such form and amount as he may prescribe to insure compliance with the terms of the permit and the provisions of this title. In the event of the refusal by the commissioner of any application for a permit, the applicant may have a review of his decision before a court of equity in the manner provided in section 5 hereof.

 Nothing in this title shall be held to apply to the manufacture, sale, transportation, importation, possession, or distribution of wine for sacramental purposes, or like religious rites, except section 6 (save as the same requires a permit to purchase) and section 10 hereof, and the provisions of this Act prescribing penalties for the violation of either of said sections. No person to whom a permit may be issued to manufacture, transport, import, or sell wines for sacramental purposes or like religious rites shall sell, barter, exchange, or furnish any such to any person not a rabbi, minister of the gospel, priest, or an officer duly authorized for the purpose by any church or congregation, nor to any such except upon an application duly subscribed by him, which application, authenticated as regulations may prescribe, shall be filed and preserved by the seller. The head of any conference or diocese or other ecclesiastical jurisdiction may designate any rabbi, minister, or priest to supervise the manufacture of wine to be used for the purposes and rites in this section mentioned, and the person so designated may, in the discretion of the commissioner, be granted a permit to supervise such manufacture.

***

Section 6 of Title 1 is clearly cartel-forming. It ensures a steady supply of licensed practitioners eager to curry favor with the politicians by telling any lie they want to hear, under oath, in premises in which such lies "shall not be questioned." The First Amendment is sidestepped, inasmuch as the driving force behind bigoted force laws is the same organized, book-burning mysticism that lobbied for the Comstock laws that preceded the Panic of 1873.  

Get the complete story in Prohibition and The Crash on Amazon Kindle in two languages. After this you’ll be able to explain to economists exactly how fanaticism and loss of freedom wrecked the U.S. economy.

Prohibition and The Crash, on Amazon Kindle

Brazilian Sci-fi from 1926 featuring the usual 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)

I also produce books and articles in Portuguese, using Brazilian historical sources at http://www.expatriotas.blogspot.com or amigra.us

18th Amendment altruism collapse Constitution libertarian political clout prohibition pseudoscience repeal spoiler votes superstition totalitarianism Volstead Act war