Written by Jeff Nielson Thursday, 24 July 2014 12:28
Part I ended by challenging readers to engage in a difficult, mental feat: imagining sanity. Our present pseudo-reality (dubbed “the New Normal” by the Corporate media) has been so insane, for so long, that few of us have any recollections at all of living in even quasi-sane societies.
More specifically; we live in an upside-down world where virtually all commerce is conducted by swapping worthless scraps of paper (“fiat currency”) for valuable goods and services (or doing so “virtually”). Engaging in commerce where one exchanges value-for-value (i.e. exchanging valuable money for hard assets and services) is now a totally alien concept to the members of our societies.
So imagine sanity. Pretend that we have been sent back in time, to when we had both honest government (enforced through “the golden handcuffs” of a hard, gold standard), and honest money with which to conduct our commerce – gold and/or silver currency. Readers have had a few days now to prepare for this ‘journey’, so hopefully you’re now ready for that leap.
As sophisticated readers understand (and readers of previous commentaries); a hard gold standard enforces fiscal discipline upon governments. They must be able to back all of their spending with gold, thus practically eliminating any/all debt-financing. It is little different than a law requiring governments to “balance their budgets”.
This is a policy for which many right-wing pundits have clamoured for years/decades, yet (strangely) these same pundits (except for Ron Paul) never demand a return to a gold standard. Why not create a monetary system which physically enforces the law (i.e. a balanced budget)? It can only be because these “balanced budget” zealots on the Right are being less-than-honest about what their own “balanced budget” policies really represent.
Putting that aside; with a gold standard mandating balanced-budgets, we have a self-correcting, sustainable economic system. This is another concept which will be totally alien to almost all readers. Simply mention the phrase “sustainable development” in our societies; and one will immediately be pigeon-holed by the entire (ultra right-wing) business community (and media) as being some sort of left-wing radical and/or “environmentalist”.
In the New Normal; “sustainable development” is considered insane. By logical necessity; this means our entire Establishment subscribes to the mantra of unsustainable development: deliberately creating (and managing) an economic system which we know – by definition – cannot survive. This is the only path of (supposed) “sanity” for those living in the Wonderland Matrix: more insanity.
In the world of our gold standard, however, we have sustainable economies as well as sane societies. But it only starts with balanced budgets. Balanced budgets mean no debt. No debt means no interest payments (to the parasitic One Bank). No interest payments means our governments get to (productively) use 100% of every revenue-dollar they receive. This introduces readers to yet another concept which will be alien to all: efficient government.
Why have our governments gotten more and more “inefficient” each year? One reason is because every year they waste a larger and larger percentage of every revenue-dollar making interest payments to parasites. All of these massive, Western bond-debts are fraudulent (and thus legally unenforceable), but that is (and was) a topic for another commentary.
Written by Jeff Nielson Sunday, 20 July 2014 14:10
We live in an insane world. This isn’t an assertion, merely an obvious statement of fact. My own commentaries have dubbed this insane world “the Wonderland Matrix”. The Corporate media has deviously given it the euphemism “the New Normal”.
Neither “world” makes any sense whatsoever. The essential difference between the Wonderland Matrix and the New Normal is that the analysis which accompanies my work on the Wonderland Matrix provides us with the only explanation of why we live in a world which makes no sense. Conversely, the New Normal simply/inanely postulates the totally discredited cliché that “this time it’s different”.
In both the Wonderland Matrix and New Normal we have total perversity; black is “white”, down is “up”, and bad is “good”. In the New Normal; the fiction-writers of the mainstream media tell us that the U.S. economy is once again the envy of the world, thanks to what they call a 5+ year “economic recovery”, which is already much longer than any normal economic recovery (back when the world was sane).
The fiction-writers tell us that lots and lots of “new jobs” have been created during this (supposed) economic recovery, more than 5 million, to be precise. Yet the percentage of Americans who actually have jobs has fallen from 66% to 63.5%, and there haven’t been so few Americans working in that economy (on a percentage basis) in more than thirty years. It makes no sense.
The U.S. cars-and-highways economy is notorious for being the most rapacious gasoline-guzzler the world has ever seen. Yet official U.S. “gasoline consumption” numbers from the U.S. government report the U.S. economy is now only consuming 1/3rd as much gasoline as when this “recovery” began. It makes no sense. One could go on and on and on (as has been done in previous commentaries), but the (real) picture is clear: a world of insanity.
In general terms, the mission of writers such as myself is then also clear: to attempt to restore some degree of sanity to the world in which readers live. On a practical basis, my own strategy has been consistent since first beginning to publish economics-based commentaries: expose/debunk the Wonderland Matrix, and provide readers with analytical glimpses of what a “sane” world should look like – in many cases by simply reminding people of what our own “world” did look like, when it used to be sane.
In this respect, my “mission” has recently been aided by a question from an inquisitive reader: what if we had never left the gold standard? Exploring hypothetical scenarios is often a trivial (if not tedious) exercise, but not when we hypothesize sanity in the world. In that case; clearly the exercise is elevated to providing a realistic (if not superior) alternative to the current insanity.
The fiction-writers (and the “expert” economists who prostitute themselves on their behalf) tell us that a return to a true gold standard is absolutely impossible. Why? Because it would require our governments to manage our economies in a responsible and sustainable manner.
In the New Normal, this is not possible. It’s only “possible” for our (corrupt) governments to manage our economies in a (totally) reckless and (hopelessly) unsustainable manner, which has now brought every major Western economy to the literal brink of inevitable bankruptcy.
Clearly leaving the gold standard has not brought us the economic “nirvana” promised by the bankers (and their expert economists). Ceasing to manage our economies in a responsible/sustainable manner, and choosing to manage our economies in a reckless/unsustainable manner for the last forty years has rendered all of these economies insolvent. Who could have predicted that? Certainly not the economists.