Loans
and Overdraft Facilities

 

Brothers and Sisters! In the normal course a
business is to be started by the finance which has been saved by applying the means of production. But since the evolution of the banking system business is started by borrowing money from the financial institutions which is fictitious money.

 

Credit
Card Facilities

 

Brothers and Sisters! Businessmen wanted to enhance their sales. The consumer did not have enough savings to buy goods and services. So the businessmen publicised: buy now pay later. For this purpose they started issuing credit cards and set up a minimum payment system: pay 5
per cent or 10 per cent every month. The interest will accrue on the rest of the balance until the debt is fully paid.

Brothers and Sisters! The independent credit card companies were formed and people were invited to open an account with them where they can buy goods and services in any part of the world on the minimum payment basis.
The credit card companies entered in contract with businessmen that should the consumer buy goods and
services using their credit card they will pay them a certain percentage, say 2 per cent of the sale price.

Gambling

 

Brothers and Sisters! Gambling is also source
of creation of fictitious money where when the bet is won then the
gambler becomes the owner of vast amount of money where no means of production have been used e.g. national lottery in the United Kingdom

 

Money
Supply

 

Brothers and Sisters! In short, the prices
of goods and services are determined by the money
in circulation. For example: when there was only £1,000 in hard cash and the quantity of goods was 1,000 the price was £1 per unit. But when additional £9,000 fictitious money was created then the price per unit increased to £10 per unit.

 

EVOLUTION
OF GLOBAL RECESSION

 

Brothers and Sisters! Let us look into the process how the world has been entangled in Global Recession since the year 2007 and took a sharp turn in the later part of 2008.

 

BARTER SYSTEM

 

Brothers and Sisters! In the early periods when there was no denomination determined the needs of the people were catered through barter system e.g. rice exchanged for wheat.

DENOMINATIONS

 

Brothers and Sisters! Barter system was not practicable as the rice owner may not required wheat. In short, gold  and silver  were determined as denominations where these
could be exchanged for any goods and services.

 

FINANCIAL
INSTITUTIONS

 

Brothers and Sisters! The saving of the businessmen led them to go to the goldsmiths and this was the start of creation of fictitious money where there was increase in the circulation of money and increase in the prices of goods and services.

CHEQUE
BOOKS

 

Brothers and Sisters! The financial institutions started issuing cheque books to its customers where there was no necessity to draw hard cash and transaction was completed by deduction 

from A’s account and addition to B’s account. 

Brothers and Sisters! In most of the countries Gold Standard has been abolished.

 

CREDIT
CARD FACILITIES

 

Brothers and Sisters! Credit card facilities by
the businessmen and independent companies increased the supply of money in
circulation.

 

ERUPTION
OF GLOBAL RECESSION

 

Brothers and Sisters! From the above facts you must have gathered that the money is circulation was not supported by equivalent hard cash as the financial institutions issued loans on the
basis of 10
per cent retention policy.

 

Brothers and Sisters! Savings of £1,000 created
another £9,000.

 

Brothers
and Sisters!
Now if the saver and all the borrowers come to the financial institution and want to draw hard cash then the financial institution
is in trouble, because it has only £1,000
in hard cash and demand is for £10,000.

 

Brothers and Sisters! The global recession
started to erupt in the United Kingdom.
As below is brief out line.

 

Northern
Rock Bank

 

Brothers and Sisters! Northern Rock  was formed as Building Society in the year 1965 when two building societies: North East Building
Societies and Northern Counties
Building Societies were merged. Northern
Rock expanded by acquiring 53 smaller building societies. Along with many other Building
Societies Northern rock chose to demutualise and float on the stock exchange market to be able to expand
their business more easily.

 

Brothers
and Sisters!
Naturally the business could be expanded by issuing loans i.e. by creation of fictitious
money. In short, in the year
2007, the
bank had liquidity crisis where it could not meet the demands of the savers and the borrowers
and eventually the government
had to
come to its rescue by printing
 money.

 

Brothers and Sisters! When
banks   have liquidity
crisis then on short term basis
they borrow cash from other banks. When British government had to come to the rescue of Northern Rock this meant
that the other banks are also facing liquidity crisis. So as soon as the government bailed out Northern Rock other banks came up front
and asked to be bailed out. In short, all the big banks:
Royal bank of Scotland, Lloyds TSB
and otherwise had to be bailed out by the British government by printing money.

 

Global
Recession

 

Brothers and Sisters! As every country of the world was providing loans and credit facilities on the basis of 10 per cent retention policy where a lot of fictitious money had been created so every financial
institution had to be bailed
out by their respective governments.

 

 

Greece and Spain

 

Brothers and Sisters! In the news you can see
that the economies of Greece and Spain are down to earth and there have been protests and demonstrations going on.

 

SUBJECT MATTER

 

Brothers and Sisters! The subject matter is
United
States of America where the recession has hit the economy very hard which has lead to giant businesses on the verge of bankruptcies increase in unemployment  which led to
foreclosures
, increase in cost of living  and lowering  standard of living.

 

Brothers
and Sisters!
It was very important that the economy of the USA should be saved
because
USA leads in, more or less, every field and economies of rest of the
world are geared with the economy of USA.

 

Brothers and Sisters! Let us first
look at what led the
economy of USA in deep recession.

 

 

IRAQ WAR 1990

 

Brothers and Sisters! In the year 1990 when Sadam Hussain invaded Kuwait then H W Bush  of GOP availed the opportunity to lodge war on Iraq. The annual budget does not account for the cost of war so the cost of war was funded by printing  money where the circulation of money was increased.

 

Brothers and Sisters! There must have been a deficit when HW Bush left office of the President of USA. This
unnecessary deficit was dealt with President Bill Clinton of Democrats and when he left office in January 2001 there was surplus of $2billion.

 

 

WAR ON AFGHANISTAN AND IRAQ

Brothers and Sisters! The tornado of recession started when G
W Bush of GOP had been in the office of the President of
USA and this had accumulated under his presidency for eight
years. G W Bush left office in January 2009 when
Barrack Hussain Obama assumed office of the President of
USA and confronted with big challenges to overcome.

 

Brothers and Sisters! In short, President Obama and his team worked out a plan based upon natural economic forces to get the US economy out of the recession where they had to print money in the sum of $787 billion to stimulate the economy.

 

Brothers and Sisters! The Stimulus Package worked and is taking its natural course to grow the economy where:

 

·      
big giants AIG, General Motors, Chrysler have been saved from bankruptcy and has beginning to make profits and exports are on the increased

 

·      
financial institutions and Wall Street have been bailed out where business can borrow money to keep afloat or open new businesses

 

·      
unemployment has reduced to 7.8 per cent from 10 per cent

 

·      
foreclosures rate has gone down 

·      
etc.

 

Brothers and Sisters!  John McCain of Republicans had the agenda
as below:

 ·            

No Stimulus or Fin Reg

 

·            
GM and Chrysler Bankrupt

 

·            
2 Conservative on Scouts

 

·            
All Bush Tax Cuts extended

 

·            
More Iraq Combat, May be Iran

 

Brothers and Sisters! Please read the article: No 6 Natural Economic Forces on this website which can be located:

 

·      
US Politics

 

o  
Mid – Term Elections

 

§  No 1 Letter to Pr. Obama

 

·      
No 6 Natural Economic Forces

 

Brothers and Sisters! When you will read the article you will gather the devastating effect and impact on
the USA economy and economies of the world.

 

Brothers and Sisters! Mitt Romney of GOP has, more or less, the similar agenda should he assume office of the President of USA in 2012
Presidential elections.

 

Brothers and Sisters! As per news there will be reduction in the revenue from the taxpayers
in the sum of $8 trillion but Mitt Romney and Paul Ryan do not tell how they will fund this deficit. Brothers
and Sisters!  As below is the
extract of the transcript of the debate:

 

Mitt Romney’s Five Point Plan

 

President!  And Governor Romney says he’s got a five-point
plan.  Governor Romney doesn’t have a five-point plan; he has a
one-point plan.  And
that plan is to make sure that folks at the top play by a different set of rules.  That’s been his philosophy in the private sector. 
That’s been his philosophy as governor.  That’s been his philosophy as a
presidential candidate.  You can make a lot of money and pay lower tax
rates than somebody who makes a lot less.  You can ship jobs overseas and
get tax breaks for it.  You can invest in a company, bankrupt it, lay off
the workers, strip away their pensions and you still make money. 

Brothers and Sisters! The president in an answer to another question made analysis of Mitt Romney’s plan which does not add up.

 

THE PRESIDENT:  No, it’s not settled.  Look, the cost of lowering rates
for everybody across the board 20 percent, along with what he also wants to do
in terms of eliminating the estate tax, along with what he wants to do in terms
of corporate changes in the tax code, it costs about $5 trillion. 

Governor Romney then also wants to spend $2 trillion on additional military programs, even though the military is not asking for them.  That’s
$7 trillion.  He also wants to continue the Bush tax cuts for the wealthiest Americans.  That’s another trillion dollars.  That’s $8 trillion. 

Now, what he says is he’s going to make sure that this doesn’t add to the deficit and he’s going to cut middle-class taxes.  But when he’s asked how are you going to do it, which deductions, which loopholes are you going to close, he can’t tell you.  The
fact that he only has to pay 14 percent on his taxes when a lot of you are
paying much higher, he’s already taken that off the board.  Capital gains are
going to continue to be at a low rate, so we’re not going to get money that way. 

We haven’t heard from the Governor any specifics beyond Big Bird and eliminating funding for Planned Parenthood in terms of how he pays for that.

Now, Governor Romney was a very successful investor.  If somebody came to you,
Governor, with a plan that said, here, I want to spend $7 or $8 trillion and then we’re going to pay for it, but we can’t tell you until maybe after the election how we’re going to
do it, you wouldn’t have taken such a sketchy deal. 

And neither should you, the American people, because the math doesn’t add
up.  And what’s at stake here is one of two things.  Either, Candy, this blows up the
deficit — because keep in mind, this is just to pay for the additional spending that he’s talking about — $7-$8 trillion — that’s before we even get to the deficit we already have.

Brothers and Sisters! The moderator Ms Crowley asked Mitt Romney answer to the above

remarks by President Obama:

MS. CROWLEY:  Mr. President, let me get the Governor in on this.  And,
Governor, let’s, before we get into a vast array of who says — what study says
what, if it shouldn’t add up, if somehow when you get in there, there isn’t enough tax revenue coming in, if somehow the numbers don’t add up, would you be willing to look again at a 20 percent —

MR. ROMNEY:  Well, of course they add up. I was someone who ran businesses for 25 years and balanced the budget.  I ran the Olympics and balanced the budget.  I ran the state of a Massachusetts as a governor, to the extent any governor does, and balanced the budget all four years.

Brothers and Sisters! To support his assertion Mitt Romney took the cover of being businessman, governor that how he balanced the budgets. But at the time of Global Recession to balance the budget and overcome
the deficit such policies have to be devised which can be at solid base and the Democrats have devised such policies and these policies are taking their natural course where the economy is recovering.

 

Brothers and Sisters! 
In short, the mess which has been created by G W Bush of GOP in the eight years of his presidency, the GOP wants to put upon the shoulders of President Obama and that he has not devised policies which can get the USA out of the recession.

 

CONCLUSION

Mr. President, have you looked at your pension?

THE PRESIDENT:  Candy —

GOVERNOR ROMNEY:  Have
you looked at your pension?

THE PRESIDENT:  I’ve got to say — Candy —

GOVERNOR
ROMNEY:  Mr. President, have you looked at your pension?

THE PRESIDENT:  You know, I don’t look at my pension.  It’s not as big as
yours so it doesn’t take as long.  (Laughter.)

GOVERNOR ROMNEY:  Let me give you some advice.

Brothers and Sisters! Mitt Romney’s son is also on the footsteps of his father where he wanted to punch President Obama. As below is extract from Newspaper:

 

US Election: Tagg Romney says he wanted to ‘take a
swing’ at Barack Obama during debate

 

Taggart Romney, who is one of the Republican presidential challenger’s most influential advisers, also disclosed that his father became “terrified” with nerves before appearing onstage.

The younger Mr Romney, a 42-year-old
financier known as “Tagg”, was asked during a radio interview in North Carolina how it felt to watch the President call his
father a liar during the clash in New York.

He admitted that he had
wanted to “jump out”
of his seat beside his mother, Ann, at
Hofstra University in order to “rush down to the debate stage and take a swing at him” “But you know you can’t do that, because, well first
because there’s a lot of Secret Service between you
and him,” Mr Romney continued.

Brothers and Sisters! So if it was not the secret service he would have gone to the stage and took a swing at President Obama.

 

Brothers and Sisters! How the people
like Mitt
Romney and his son  can be trusted who do not have any respect for the President of USA just because
he is African
American? The race issue can be viewed on website: www.youtube by searching:

 

Janeane
Garfoalo call tea baggers  “racist
rednecks”

 

 

 

Brothers and Sisters! Mitt Romney’s dislike has been extended to the American who
are likely to vote for President Obama. This dislike is reflected in his address to his donors at private dinner
party where the price of the dinner plate was $50,000. As below is the
extract:

entitlement. And the government should give it to them. And they vote for
this president no matter what.

 

And I mean the president starts off with 48, 49… he starts off
with a huge number. These are people who pay no income tax. Forty seven per cent of Americans pay no income tax. So our
message of low taxes doesn’t connect (inaudible)

 

(Inaudible) that’s what they sell every four years. And so my job is
not to worry about those people.

 

I’ll never convince them they should take personal
responsibility and care of their lives.
What I have to is convince the five to ten that are thoughtful, that look at
one way or the other depending upon in some cases emotions, whether they like
the guy or not.

 

Brothers and Sisters! Mitt Romney is not worried about the supporters of President Obama:

 

.And so my job
is not to worry about those people.

 

Brothers and Sisters! Furthermore
Mitt Romney has termed Democrats as disgraced party when he said:

 

(Inaudible) that’s what
they (Democrats) sell every four years.

 

Brothers and Sisters! In view of the above how Mitt
Romney can be trusted to assume office of the President
of USA.

 

LAST WORD

 

Brothers and Sisters! In short, the economic
policies devised by President Obama and his team are on the right
track and these are taking their natural course to
grow the economy and will continue to do so should President Obama is re – election as President of USA.

 

Brothers and Sisters! Should Mitt Romney of Republicans
assumed office of the President of USA then he is going to devise extreme right wing policies and economy will be put in the reverse gear and it is unlikely that there will be any time to put the
economy in forward gear.

                                   

                                 

Please Remember in Dua’as

 

Wass’a’lam

 

Naseer Aziz

 

Principal Call for Peace

 

Messages to Look for Peace

 

PS:

Sponsorship

Brothers and Sisters! Please read the Post: Sponsorship in the Navigation Bar as to why it is needed to keep conveying the Messages to Look for Peace until the Day of Resurrection and how it will be expended until the Day of Resurrection.

Wass’a’lam

[May Allah Bless You]