Economic Outlook

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But when the price of raw materials drops, there is an exact ratio decline in terms of national income. There is also a commensurate increase in debt expansion and unemployment according to Wilken. Economic good times are multiplied by abundant production of real new wealth. Economic bad times are magnified by declining raw material production and debt assumption.

And what does all this mean to us? It means that real wealth and real money can only be created first in the rural country where the real new energy (solar energy) is converted into matter and harvested, and then transferred to the city where creative, abstract ideas can be applied to transform this new matter into its highest and best use with a minimum of labor under the free division of labor. The illusion under which we suffer today is the false wealth created primarily by the fractional reserve banking system in the cities through debt and compound interest.

Compound interest, an abstract concept—which, theoretically, can increase to infinity—is an ever-heavy anchor which pulls down and impoverishes finite, limited, economically ignorant, error-prone common man.

Wealth and money, if first created in the rural country, are true and honest on both an abstract and concrete level. But wealth and money, if first created in the city, are illusions and shams which cannot last long. Reality comes home to roost for us, here and now. The 1981 net farm income, in uninflated dollars, is the lowest since the Great Depression.

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