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International Commentary

Burn The Bonds; Pay The Pensions

Articles & Blogs - International Commentary

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 can’t meet all of their financial obligations – 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 “principal” 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 “economic benefit” 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 “structured bankruptcy” 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 – to the bankers, at pennies on the dollar – thus destroying their future revenue production. Here the insanity (and criminality) must be explicitly acknowledged.

The Western “big banks” (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 isn’t 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 – making these governments even more insolvent. Why are private banks given $trillions for free, every year, but our own governments must “borrow” (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 – 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) “ripples” 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) “consumer economies”. 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 China’s most-important economic objectives.

 

Western Real Estate Bubbles: History’s Greatest Wealth-Trap

Articles & Blogs - International Commentary

For the majority of Western populations; real estate is considered to be the ultimate “hard asset”, and thus the most-desirable financial shelter in times of economic peril/uncertainty. Ironically, it is precisely this attribute (and attitude) which makes real estate the ultimate wealth-trap – at the hands of unscrupulous bankers/governments.

First readers need to familiarize themselves with some of the economic dynamics associated with real estate. As a finite, hard asset (there is only so much usable land in the world), supply is limited. It is because of this limited supply that people trust real estate to preserve its value, and thus preserve their wealth. But the implicit assumption in this equation is that we have legitimate, properly functioning markets and economies.

As regular readers understand; nothing could be further from the truth. Our markets are literally nothing more than rigged casinos. Our economies are literally nothing more than (ridiculously unstable) Ponzi-schemes. This can be seen clearly, simply by comparing the present economic/market insanity with normal, historic conditions.

Under normal economic conditions (with legitimate markets), there are specific economic dynamics which help to ensure that real estate values do not get over-inflated, turning a financial shelter into an asset-bubble – and a wealth-trap. In times of “high inflation”, which is one of the principal fear-factors which make people look toward real estate; the tendency is for people to flock into real estate markets, thus driving prices up to unsustainable, dangerous levels.

However, in times of high inflation; all legitimate governments raise interest rates. Raising interest rates is the most-effective blunt-force monetary tool in dampening prices, in any/all markets. Thus the push into real estate driven by high inflation is countered by the pull of higher interest rates, driving people away from real estate, due (mostly) to significantly higher mortgage costs.

It is here we see the irredeemable corruption of the governments of the Western bloc. As prices spiral higher today in the two most-important price categories – food and housing – these corrupt governments tell us that inflation is near zero. Indeed, these shameless liars now have the audacity to claim that inflation is “too low” (something which is economically impossible).

It is because of this Great Inflation Lie that these puppet-governments claim to be justified in keeping interest rates permanently frozen at near-zero levels. Here readers need to understand the insane recklessness of near-zero interest rates, and why we have never, ever seen such monetary insanity at any time in the previous history of Western nations.

Near-zero interest rates translate into free money for the Big Banks, who are the recipients/conduits for all the “capital” entering our capitalist system. Such “free money” represents an inexhaustible supply of cheap credit. This is nothing less than rocket fuel for any credit-based economic system like our own.

In even semi-functional economies; near-zero interest rates would quickly trigger an economic boom that was so explosive that our economies would begin growing too fast. The problem here is our markets. Such rapid, rabid economic growth always triggers even more-dramatic explosions in our markets. Prices catapult higher, turning virtually all markets into exponentially soaring, out-of-control, asset bubbles.

But what do we see in our own economies? Barely perceptible twitches of life, where “economic growth” can only be feigned with the most-egregious perversion of economic statistics. Having been mismanaged to the point of utter ruin; even near-zero interest rates can no longer coax any life into these zombie-economies.

But such reckless/insane interest rates can produce (and have produced) no shortage of asset-bubbles, and (in particular) real estate bubbles. Simultaneously (and for the first/only time in history) we have the two, ultimate drivers of real estate bubbles: high inflation and (ultra) low interest rates.

   

The NEXT Reserve Currency

Articles & Blogs - International Commentary

The U.S. dollar is dying an ugly death. The U.S. government knows it, and the bankers who run the U.S. government are certainly aware of it – since they are the ones who have (already) undermined its value to worthlessness.

Naturally, the dollar’s ugly death is never mentioned in the Corporate media. Even with the manipulation choke-hold which this banking cabal has over our so-called “markets”; it would be extremely difficult to pump-up the value of the dollar to its present, absurdly fraudulent level if everyone knew that this was a dying currency – which will be obsolete (and thus officially worthless) in a few year’s time.

All this is carved in stone. What has (previously) been the subject of considerable debate and speculation is what currency will replace the U.S. dollar as the world’s “reserve currency”. The crooked bankers and corrupt governments of the Western bloc have already floated several trial-balloons, in their efforts to attempt to maintain control over the global economy by being in complete control of the principal money supply for the global economy.

Give me control of a nation’s money and I care not who makes the laws.”

-          Mayer Amschel Rothschild (1744 – 1812)

This mantra of financial criminals (in general), and crooked big-banks (in particular) is based on the simplest of premises. If one controls the printing press of a nation (or, in this case, the global economy); that criminal can print-and-steal as much currency as he/she desires – and then use all that dirty money to buy-off politicians, regulators, and entire governments.

Buying politicians is “good business” (assuming that one has no scruples) because these stooges-for-hire are notoriously cheap. Spend $100’s of thousands (or perhaps a few $millions) buying-off politicians, and it can yield countless $billions in (generally illegal) profits. Put another way; “investing” in governments (i.e. buying them off) pays much better than investing in markets.

The result of this obsession of the Old World Order with attempting to maintain control of the printing press for the global economy has been several pathetic attempts to cobble together some (corrupt) replacement paper for the USD. First we had “the Amero”.

The “Amero” (as the name implies) was to be launched in North America as the official currency for that (new) bloc, and (if the banksters had succeeded in their conspiring) would have coincided with the launch of a “North American Union”. However, despite having complete control over the Corporate media (and thus all mainstream “news”); the banking cabal’s puppet politicians couldn’t sell either the Amero or a North American Union.

The next attempted replacement for the USD was even more pathetic. The bankers and their Western governments attempted to take an ordinary credit instrument (the “special drawing rights” by which the International Monetary Fund extends credit), and convert that (somehow) into a currency.

This would have entirely eliminated the distinction between “money” and “debt”. But it was such outrageous monetary voodoo that even the One Bank’s puppet governments wouldn’t embrace the scheme. In part; this was due to the simple fact that there would have been no way to portray this instrument of financial fraud (and infinite debt) as “money” to the masses of Sheep in our societies.

Lesser, and even sillier schemes have been put forth by the bankers and their minions, but none of them ever achieved enough significance to merit mention. Meanwhile in the Rest of the World (i.e. its less-corrupt regimes) there has been a steady, inexorable move toward at least a quasi-legitimate replacement for the USD: China’s renminbi.

   

Ukraine Declares War on Russia

Articles & Blogs - International Commentary

The (Western) march towards World War III continues. The series of events is crystal-clear to any who have viewed them with an untainted mind.

First the corrupt Western bloc – and principally the United States -- engineered a (bloody) coup to overthrow the former, pro-Russia government in Ukraine. It was an unnecessary coup, from the standpoint of the Ukrainian people, as free elections had already been scheduled within the following year. However it was a necessary coup from the standpoint of the fascist West, as the brutal Thugs they installed on the throne of Ukraine could never have mustered enough popular support to win a free election.

From the moment this pro-West Thug government (illegally) seized power, its mandate (dictated by its Western ‘sponsors’) has been simple: crush all dissent. Despite having seized power themselves at the end of a gun barrel; the very first decree made by the Thug government was that everyone who did not support this illegal government had to immediately surrender all weapons (“do as I say, not as I do”).

Naturally, the last thing which those opposed to an illegal government which had seized power in a bloody coup would do is to disarm themselves. One does not surrender their weapons to their political opponents – when those opponents already have a track-record of killing anyone who opposes them. Thus, there can be no doubt as to who created the civil war which now rages inside Ukraine: the (illegal) pro-West government in Kiev.

Sadly, not one word of these events has ever filtered through the propaganda echo-chamber which Western governments call a “free press”. The tiny handful of multi-national corporations who control all of our media have been given their own orders: simply “blame Russia” for everything.

The most despicable “false-flag” operation carried out by the Thug government of Kiev (and its Western backers) to endeavour to demonize Russia was the widely-reported (and sensationalized) downing of Malaysian flight MH17. The Malaysian media (tightly controlled by the Malaysian government), and specifically the New Strait Times has bluntly accused the pro-West Ukraine government of shooting down its airliner – and ensuring that every passenger on board was murdered:

Intelligence analysts in the United States had already concluded that Malaysia flight MH17 was shot down by an air-to-air missile, and that the Ukrainian government had something to do with it.

This corroborates an emerging theory postulated by local investigators that the Boeing 777-200 was crippled by an air-to-air missile and finished off with cannon fire from a fighter that had been shadowing it as it plummeted to Earth. [emphasis mine]

Again, not one word of the truth of this vicious false-flag operation has ever filtered through the (Western) Corporate media. Now the Ukraine government has escalated the armed conflict it created still further: formally declaring war on Russia, as reported both outside and inside the West.

As far back as two months ago; we have this headline out of the (obviously biased) Voice of Russia:

Kiev Declares War On Russia?

Far more damning, however, is what is being asserted today in Western media. As reported by the Associated Press, and parroted word-for-word in thousands of Western media tentacles; the pro-West government in Kiev has now formally declared war on Russia:

   

The Old World Order

Articles & Blogs - International Commentary

Regular readers are used to seeing various myths of propaganda debunked within these commentaries. However (until now) one of the most-insidious – and thus most-important – constructs of propaganda has not been addressed: the supposed “New World Order”.

The immediate and obvious point to make here is that readers should/must immediately become deeply suspicious any time we are bombarded with a label which contains the word “new”. Implicit in every such label (by definition) is the concept that “this time it’s different”, because if it wasn’t different it wouldn’t be “new”.

This time it’s different” is a cliché in Western societies. But it’s not revered as an aphorism of wisdom. Rather, it is scorned as the mantra of idiots. This same point was made in a previous commentary which debunked and rejected the ludicrous propaganda euphemism: “The New Normal”. The same analysis applies to both propaganda lies.

Why is the concept that “this time it’s different” (or this time it’s new) universally scorned by the more-intelligent members of our societies? Because such individuals subscribe to older, tried-and-true expressions of human thought:

The more things change, the more they remain the same.

Or, simply:

There is nothing new under the Sun.

Context changes. Principles are immutable. Those who refer to paradigms as being “new” or “different” (in categorical fashion) simply lack the capacity to perceive all the similarities to the previous paradigm(s). There is no “New Normal” in our societies, but we can also reject this particular lie by simply looking at the details of this (false) paradigm, itself.

This time it’s (supposedly) “normal” that unemployment (for the masses) is worse than at any other time in our history. Wages (in real dollars) are now as low as they have ever been in any time in our history. Meanwhile, the debts (among the masses) have never been higher. Poverty has never been as severe or as endemic. We never before had a class of people we now know as “the Working Poor”.

In short, for the vast majority of our citizens (the Little People) life has never been worse. But instead of our (corrupt) governments telling us how they plan on fixing all of these problems – which they created – they pat us on the heads and tell us (via the Corporate media) that now all this is “normal” (i.e. things will now always be like this).

Meanwhile, for the small minority at the very top; we see the precise, mirror opposite. Their incomes have never soared higher at such a dizzying rate. The hoards of wealth which they have amassed are orders of magnitude larger than anything ever before seen in our societies. They control (through their massive stock holdings) a much larger percentage of our Corporations than at any time in history. But the taxes they pay have never been lower.

In short, for the tiny minority at the top we see the opposite extreme: life has never been better. But instead of our (corrupt) governments telling us how they plan on re-balancing the worst wealth-inequality in the history of our societies – which they created – they pat us on the heads and tell us that now this too is “normal” (i.e. things will now always be like this).

As a matter of the most elementary logic; extremes can never be “normal”. As a function of both the laws of mathematics and the dynamics of human behavior; extremes always correct – back towards some more rational equilibrium which can be described as “normal”. The New Normal is not only a complete lie, it is a very silly/obvious lie.

   

Bridges Collapse As The West Drowns In Debt

Articles & Blogs - International Commentary

A recent headline in the mainstream media caught my attention due to its dramatic nature. It spoke of “bridges crumbling” in the United States (along with its highways rotting). The media drone then attempted to explain why these bridges/highways were being allowed to crumble, despite borrowing rates which are “the lowest since 1969”.

The explanation given was totally false: that (supposedly) U.S. state and local governments were “repaying obligations by the most on record”. This is propaganda nonsense, since what it directly implies is that state and local governments would have to be recording the largest budget-surpluses on record. Mathematically, this is the only possible way to retire debt by a corresponding amount. Those surpluses do not exist.

In fact, what the Liar from the mainstream media was really pointing out is that state/local governments are making the largest interest payments on record, the result of the “unprecedented deficits” acknowledged within this piece of mainstream propaganda. This allows us to provide the real answer to the question: why are “bridges crumbling”, in the U.S. (and across the rotting West) despite the lowest borrowing-rates in 45 years?

The answer to the question is simple arithmetic. Our bridges, our highways, indeed, our entire economies and societies are falling apart because governments (at all levels) are drowning in debt. When governments (at all levels) are making the largest interest payments on record (but never paying-off any principal) it means less dollars left over for spending on useful/necessary services, and infrastructure investment/maintenance.

Because these governments are now all permanent debtors, and their interest payments simply get larger every year; it is mathematical proof that these governments are now already past the point-of-no-return on their indebtedness. As a matter of the simple arithmetic of “compound interest”; it is no longer a question of “if” governments across the West will default on their debts – merely when.

Western governments (most-obviously the U.S.) are insolvent endemically, thus the worsening decay of our infrastructure (and economies/societies) will never stop its downward spiral. Rather, this downward cycle will worsen, exponentially, until we have a collective Debt Jubilee, and simply erase debts which are now too large to ever be repaid.

Debt Jubilee is a regular event throughout history, going back to (literally) biblical times. It is based upon one of the constants of human behavior: that governments (good and bad) will place short-term expediency and popularity ahead of long-term fiscal prudence. The result is a multi-thousand year litany of governments (of every shape and form) digging themselves into (debt) holes from which they can never be extracted, resulting in Debt Jubilee.

But the story of the West drowning in debt is more than a story of governments. This endemic indebtedness extends throughout our populations. There are two reasons why individual members of our societies are drowning in the highest levels of personal debt in our history.

The first reason is that the Corporate propaganda machine has made taking on debt a virtue. In every previous generation; taking on “a second mortgage” was the ultimate indicator of personal, financial shame. It proved that (barring some personal calamity) the borrower had not been managing their finances responsibly – and thus had committed the Cardinal Sin of financial management: taking on unnecessary debt.

   

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