by Randy Shannon

Two years ago we showed that the current crisis was unavoidable as long as the banks controlled state power in the major industrial countries. In “Japan’s Lost Decades: the US Sequel” the political and economic way out of this crisis was set forth on this blog. This agenda is still relevant and waiting to be fulfilled by popular action.

The US economy has begun a new cyclical downturn. This is the first recession since 1937 that has occurred before a full recovery. As in 1937, part of the reason for this second dip is the growth of political power among the reactionary bankers and the Republican Party. This group has thrown roadblocks in the way of real economic stimulus.

The article below shows that the political leaders and the financial media finally are face to face with the reality that the current course is unsustainable. The central banks cannot break out of their narrow mind-set. Their only solution is to print money and lower interest rates. As bankers, they see the solution as saving the banks at the cost of a stable and prosperous society.

We must move forward with nationalizing the zombie banks, imposing a carbon tax and a financial speculation tax, investing in a green new deal to rebuild and solarize the infrastructure, end the wars and retool the military industrial complex to build mass transportation.

Every day that passes without action is lost. This results in lost lives, lost hopes, and a lost future generation. The graphic of construction employment shows the gravity of the situation.

Central Banks Commit to Ease as Threat of Lost Decades Rises

By Simon Kennedy and Rich Miller
Jun 25, 2012 11:11 AM ET

Central bankers are finding it easier to support their economies than to spur expansion as the prospect of Japanese-like lost decades looms across the developed world.

Continue reading Confronting a Future of Lost Decades →