Join the new world

Can we talk about The Great Depression now? What started out as a contraction in the markets due to oversupply has morphed into a global collapse.

One great culprit in this scenario is Gold... the hoarding of it and the need for it for things like training. Where before markets could absorb some losses, GMs are now slashing wages across the board in an effort to maintain some semblance of a positive return. The future need of gold in V2 is simply perceived to be too great to allow any correction other than a continued cannibalization of virtually every single economy of the New World.

The cures exist but they would be impossible to enforce. For instance owners could show restraint and not crash markets by continuously lowering their offers. This will not work of course because it is too easy to purchase goods on the black market. Unless every citizen approached the economy in the same way, at the same time, there would always be a few entrepreneurs only too happy to swoop in and undercut the masses. The black market cannot be monitored or controlled and is too profitable to disappear.

Companies could be closed temporarily. This is only desirable if it is in fact temporary otherwise it is a permanent and substantial loss of wealth. Once more though it would require great discipline on the part of the owners sitting on the sidelines. The temptation to re-enter the game at the first sign of recovery would be too great to resist and until the parameters change, resume the crash cycle.

Then there is government intervention. We already know that V2 will bring with it the capacity of dissolving business concerns entirely. However the economic need, stimulus if you will, is needed now. It would be costly but the government could embark on a policy of buying up Canadian businesses from Canadian citizens at a percentage of its nominal value. When the new rules are in place, those businesses would be liquidated to return a large percentage of the cost to government coffers.



Something like this would require great will on the part of both the citizens and the administration of the day. It would be a true society project. A true testament to the will and ability of our population to rise above the constraints of the times.

The cost can be justified, after all we can spend hundreds and thousands of gold in the pursuit of war. This project would put gold back into the pockets of Canadians, a portion of which could be expected to generate some economic activity. An environment short of, dare I say it, perhaps over a hundred less than profitable businesses could be a benefit to all.

We've tried talking and that hasn't worked. We tried cutting wages and prices and that only accelerated the process. Is now the time to use the public trust, taxes, and spend?