Written by Jeff Nielson Sunday, 19 October 2014 13:44
There has been a major (economic) policy-decision reached and implemented, across the corrupt Western bloc. But it has never been the subject of political debate, let alone any sort of formal vote. Indeed, this policy decision has never even been explicitly/publicly acknowledged by any of these Deadbeat Governments.
What policy decision is this? Year after year, these governments assured us that their corrupt/incompetent economic policies had not rendered our economies insolvent. Now, much more quietly; these same governments are acknowledging that they canât meet all of their financial obligations â and thus have begun defaulting.
The (unstated) policy decision comes with respect to which obligations they have chosen to willfully engage in default, and which obligations they have chosen to continue to fund. The decision is very simple: they have chosen to continue to pay the interest on their/our massive debts (not one penny of âprincipalâ is ever repaid), while they begin to systematically default on paying their pension obligations to the people.
What must be understood is that this traitorous act is just as indefensible in economic terms as it is in moral terms. As a matter of elementary economics; there is no âeconomic benefitâ of any kind derived from continuing to make (only) interest payments on our gargantuan (and unsustainable) debts. Every penny paid is wasted money.
Once any debtor goes so deeply in debt that they can never do any more than pay interest on their debts; they are technically insolvent. It is at this point (in the real economy) that any legitimate business (or government) begins a âstructured bankruptcyâ proceeding, because the sooner such insolvency is acknowledged (and restructured) the less the economic harm.
Instead, these Deadbeat Governments have not only begun defaulting on their important financial obligations (i.e. pensions) but they have been selling-off choice assets â to the bankers, at pennies on the dollar â thus destroying their future revenue production. Here the insanity (and criminality) must be explicitly acknowledged.
The Western âbig banksâ (all tentacles of the One Bank) are given $trillions per year in newly-printed money, for free, as the standard monetary policy of all our central banks. But our governments (municipal, state/provincial, federal) must borrow every penny of their own funding (which isnât covered by declining revenues).
Thus these Vulture Banks (with their unlimited stacks of free money) have not only reaped endless $trillions in lending us money which they are given for free, but they also use their free money to undermine our ability to pay â making these governments even more insolvent. Why are private banks given $trillions for free, every year, but our own governments must âborrowâ (i.e. pay for) every penny?
We get no answer to this question (ever) from our (corrupt) governments, (thieving) bankers, or (dishonest) media, because there is no answer. This is nothing more than systemic corruption. These bond debts are all totally illegitimate â thus there is no legal or moral obligation for our governments to continue making payments on these corrupt debts.
Conversely, paying pensions to the people is an economically virtuous activity, which produces numerous (positive) âripplesâ when those pension-dollars flow, and causes equally severe ripples of harm when those payments are (illegitimately) withheld.
We start with the fact that we live in (as the bankers/media/governments tell us every day) âconsumer economiesâ. Thus not only are these pension payments important in shoring-up (declining) consumption, with our aging populations they have never been more economically important in our entire history than they are today.
However, we gain an even better understanding of the importance of a (legitimate) pension system, by looking at an economy which has been functioning without one: China. Creating a national pension system (and then actually paying those pensions) is one of Chinaâs most-important economic objectives.