The Nazis in an article written by Paul
Bang for the Europaische Revue in February 1943 criticised the Gold standard
which fell out of use in Britain in 1928 and in the United States in 1968.
The Gold Standard idea was the hub of
anti-Jewish hysteria and was part of the toxic mix of Nazism.
In the 1990s, the Germans discussed selling
off their paltry £600 million of gold reserves in the belief that industrial
production is the only measure of value. This is contradicted by most people’s
and speculators personal and native ideas.
Hjelmar Schacht (Hitler’s banker John Weitz,
Warner Brothers) juggled the Nazis contradictory and ultimately futile policies to produce tradeable commodities by German industry to out-produce the allies.
In Russia today, the state holds €1 600 billion
in gold reserves and €550-600 billion in foreign currency. This reserve enables Russia to buy
consumer goods. Oil and gas exports account for 90% of Russia’s exports.
Russian gold has always stayed in that country throughout every crisis.
In Stalin’s time the same imperative to
overcome a crisis amid speculation on stock markets in the west and to soak up
idle disinherited rural workers led to rapid industrialisation from 1928 to
1965 but at the cost of quality, accounting probity and micro-independence of
enterprises.
Stalin ultimately beat the Germans but the
social and political-historical deficit overtook Russia in 1965. (Monopoly
Capital, Baran and Sweezy, Monthly Review Press, US).
There is no squaring the boom-bust circle
but public enterprise is not failing and banks are struck by illiquidity in meeting
and maintaining the 1:4 capital to loan ratio again (November 2014) that they
had in 1990.
Today US banking has been re-energised from
the 3:100 capital to loan ratio (September 2008) and has once again recovered its
equilibrium. US industrial employment fell from 45 million in 1948 to 10
million (2008) but has now begun to recover. By 2012, two million new
manufacturing jobs had been created since Obama came to power.
Britain languishes with manufacturing
growth of 2.8% annually and the number of manufacturing jobs has fallen by 11
million from 14 million to 3 million (2004) since 1968.
8.
Ireland recorded annual manufacturing
output growth of 11% in late 2002.
Joseph Paul McCarroll
13.11.14
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