What Is Happening to the Economy?

      Since only the most "religious" readers of the Project are likely to
remember our economic analysis of Summer 1988 (Volume V, Number 3), we
will review: 

      In spite of Reaganite propaganda to the contrary, we have been in a
depression since the Volker engineered interest rate spike in 1979 (20%
plus) that brought the "post WWII" economic prosperity to an end exactly
50 years after "1929" in true Kondratief 50 year cycle fashion.  This
primary fact is veiled from most analysts, even Kondratief analysts, by
the monetary mechanics of the Post WWII welfare/warfare state.  The
built-in stabilizer of monetizing a wasteful budget deficit prevents the
classic crash that resulted in 30% unemployment in the 30's and
substitutes a "real goods" depression in which increasingly worker
grinding, labor intensive economic activity persists as the new money
flows into the economy, but real wages and living standards (adjusted for
inflation) slip lower and lower.  Workers either scramble frantically for
less and less or leave the work force and find a subsistence in the
welfare end or fade away in crime, prison, or other forms of degradation. 

      After setting the preceding Kondratief scenario (driven by a 50
generational cycle within the conspiracy itself), we predicted a new
long-wave expansion (not prosperity in the old sense) based on issuing
money through a World Conservation Bank which would hold wilderness areas
and other natural resources off the market as collateral.  We did not
predict true prosperity, but only an increasing tempo of grinding labor
intensive activity as the populace is denied access to reasonably priced
natural resources under the guise of "environmentalism."

      Our error in 1988 was in suggesting (hoping?) that we were perhaps
already at the bottom of the cycle.  Unfortunately, it is now clear that
we were not.  This may be the bottom now or an even worse bottom may occur
within a year or two!  However, it now appears that in spite of
Bush-Congressional pig- headedness regarding the budget deficit and
Federal Reserve foot dragging, the debt monetization is now proceeding
full blast and will check the economy's free fall soon in preparation for
the predicted, "environmentally sound" World Conservation Bank
monetization of untapped world resources, in particular, the Amazon,
Africa, Siberia, Asia, etc. 

      Bush's repudiation of Reagan-Conservative-Vatican economic growth
and concurrence in the shocking "bottoming out" the economy that could
very well cost him his second term can only be another example of his
Anglophile "Skull and Bones" roots taking precedence over his personal
ambitions.  We can expect Bush to systematically repudiate the temporary
Vatican-Conservative alliance that brought him to power as he moves back
to Rockefeller-Republican positions.  The final straw will be when he
moves to support abortion, probably only if he is elected for his second