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 term.