So the Economy is out of Recession? Really?

According to Peter Mandleson on Sky News this morning this was the case. He did say if we stopped doing what the Government are doing then we could get a double dip recession and that would be a disaster. Yes, like the first Recession wasn't a big disaster - made 10 times worse by getting every Tax Payer further into Debt with Billions of pounds paid in Bail Out money for generations to come. Are we to believe the same Minister's who had no idea the Financial Meltdown was coming are the best choice for gettting us out of the Recession?

If the preferred Government and World Financial System is called 'Keynesianism', after its inventor, John Maynard Keynes, has only delivered a Decade of Zero then what would the competing Economic System of The Austrian Free Market School of Economics have to say about whether we are coming out of a Recession or not? If you want to know what a Free Market Economy looks and feels like, ask yourself this:

Did you get Bail Out Money?

Are you protected by Import Tariffs and Duties?

Do you or your competitors or their suppliers get Tax Payer Funded Government Hand Outs, Subsidies or Corporate Welfare?

If your answer is 'No'? Then you are in the Free Market. The catch is the Big Boys are not.

Welcome to the Real World - However, Free Market Competition is so terrifying to the Corporatist Banks and Financial Institutions that they ensure the Government, or rather, the Tax Payer is the 'Lender of Last Resort' will foot the Bill if they fail. What a great business to be in. They are on Corporate Welfare, becoming huge on protected profits, knowing they cannot compete in a fair system and that we all stump up the cost of their inefficiency.

Firstly, Austrian Free Marketeers would point out that too much debt caused the bubble that burst. So pumping up a bubble with a hole in it with Billions in Bail Out cash, shoring up favored firms is not going to work, never has and never will. If you were in debt up to your eyeballs would you think a Bank would give you another loan on top? Those adverts don't say 'One Easy Additional Monthly Payment'..! A Bank would tell you to cut back expenditure, sell up or go bust. More debt is the last thing you need. It wont work in the medium and long term. It is just a short term fix until one of the two main parties wins the Election and will then carry on pumping money to their friends in the City, following their Globalised World Agenda. If the Government cannot get Keynesianism to work in these small Isles, why do they think they can run the World? Its sheer arrogance and domination.

In that case the next Recession 'Double Dip' is just over 4 months away. Recessions always do 'Double Dip'. If Austrian Economists know this, then why doesn't Labour and the Tories? As my Gran used to say: "There is none so blind as those who don't want to see..!"

Secondly, Austrian School Economists would also say that the Banks should never have been Bailed Out in a Free Market Economy - the unbiased, natural, Level Playing Field of Life. Banks should have been left to fail, Debts written off and the prudent Bank's, with little Government support, assisted to pick up the remnants of the old irresponsible Banks. It's the essential, self regulating cleansing function of the Free Market to do this and we have a very dirty house.

For example:- In the 'Forgotten Recession' of 1920-21, American Banks were left to fail. It was a little by accident. In the run up to 1920, Woodrow Wilson had a series of strokes and was unable to interfere much with the economy. This meant the Free Market was allowed a good run. The Economy recovered in just over in a year. Purged of Mal-investment and Debt it emerged healthy, strong and on a genuine footing and a prosperous recovery of the 1920's occurred. The US Administration of Warren Harding, having been slated by the Corporatists for not Bailing out Banks in 1920-21(!) and under tremendous pressure did the opposite in 1929. Bailing Out the Banks using every man, woman and child as 'collateral' to secure the Debt. This coupled with The Federal Reserve depleting the money supply by a third and Franklin D Roosevelt's cluelessness on what to do led to 10 years of 'The Great Depression' and 6 years of World War Two. Is this what is in store for us? World War Three? Our Governments are certainly are making the same mistakes and are looking very War like to me. Some are even saying that, "War is good for the Economy". We live in very dangerous times. This Financial crisis and recession is just a enormous planned transfer of wealth from the Lower and Middle Classes up to the Banking Elite.