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Cause of economic depression and inflation

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Joined: 29 Dec 2008
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PostPosted: Wed Oct 16, 2013 11:18 am    Post subject: Cause of economic depression and inflation Reply with quote

People elect governments which promise more money in their hands to spend. In other words governments are forced by the people to cause inflation. People require money for growth of their existence through developing human babies,increasing their activities through machines and tools and extension in space eg. by acquiring new land & constructing new dwellings. But whenever inflation occurred it was invariably followed by a depression or deflation with loss of jobs. When jobs were lost the losers tended to diversify into new functions becoming elements of novel economic entities.
Historically inflation of immense energy deflated in to elementary particles.The inflating clouds of elementary particles deflated into clouds of hydrogen atoms.Expanding Hydrogen clouds deflated into galaxies of superstars which through a further series of contractions & explosions (nova's) produced elements of the periodic table.The inflating cosmic dust from nova's was contracted to form earth.
The diversification of the original mass into newer entities of existence continued on earth because the earth went through a series of hot's(inflations) and cools(depressions). The living systems were formed which diversified relatively quickly into newer forms whenever their was a depression (i.e cooling) and inflated to huge populations during warmer periods on earth. Depression was therefore obligatory for differentiation or diversification and inflation was obligatory for growth and both the actions were necessary for each other.
Inflationary activities of man have now come to a critical point because of globalization of a highly consumerist economy.
When a company faces monetary (energy) shortage the safest way for it to survive is first to cut down extravagant activities, and then to cut down salaries, followed by jobs of human employees because human resources can be regenerated quickly on return of good times. The non human resources such as land, building and machines are very difficult to regenerate and so if they are lost the company dies.
Consumption surplus money saved by people or taxed from them is collected by institutions and provided for enterprises which build infrastructure substratum to culture the increasing human resource. But the amount of energy convertible into money per day on earth is limited by factors such as the amount of received sunlight(eg. by limiting photosynthesis & hydroelectricity),amount of extracted fossil fuels per day & the amount of nuclear energy produced per day. When we feed our enterprises false money (overdrafts not based on real collection base) i.e at a rate more than we are obtaining from nature then we head for depression & are liable to continue loosing jobs.
Addiction to greed is the cause of mankind's financial woes.
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