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Austerity Insanity

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When Greece’s Traitor Government inflicted “austerity” on its people, I stated the obvious. The savage (and senseless) budget slashing – of money being spent on people – would make its deficits worse, not better; and lead to the total collapse of the economy. That is exactly what happened.

When the UK began its pseudo-austerity, where it slashed spending on people while continuing to print-up lots of new “money” for its criminal bankers; I predicted that its deficits would get worse not better – and eventually destroy its economy too. That is exactly what has happened.

The only difference between Greece and the UK is that while interest rates on Greek debt were manipulated higher by the Anglo banking cabal, they have been artificially suppressed in the UK, by (secretly) buying-up all government bonds in order to maintain these fraudulent rates. The same thing is taking place in the U.S.

When Spain joined the Austerity Club and began its own suicidal budget-slashing, I predicted that its deficits would get worse not better. That is exactly what has happened. This is nothing but simple economics. Our problem is that virtually the only people trained in this vital discipline are the brainless economists.

If (mindlessly) slashing government spending is always a good idea, then why don’t we take all spending to zero; and our economies can all thrive in this neo-conservative Utopia? The obvious answer to this question is that there is net economic benefit to many forms of government spending.

A common example of this (in an era of massive, structural unemployment) is Welfare. Neo-conservatives would tell us to “cut off the Welfare” for the 60+ million unemployed people across the Western world – permanently unemployed since our economies generate 60+ million too few jobs to sustain full employment.

With no jobs for these people, what are they going to do: crawl under a rock and die? No. To no great surprise, History tells us that people will steal rather than starve. For example, Japan’s baby-boomers are known as a generation of kleptomaniacs; as this entire generation engaged in systemic stealing in war-ravaged, post-World War II Japan.

Obviously there are enormous economic costs to widespread stealing, and the only means of preventing theft is through incarcerating the thieves – and warehousing them in jails/prisons at somewhere between $70,000 - $100,000 per year. Or we could alot these economic victims a tiny fraction of that amount in welfare; and save on the costs of theft, the costs of policing theft, court costs for prosecuting theft, and the massive costs of warehousing thieves in prisons.

There are numerous other examples where spending money saves money. Thus it was the simplest of predictions that slashing spending on vital (and cost-effective) social programs could only cripple these European economies even further. Note that mindless Austerity doesn’t simply add other (hidden) costs, but it destroys revenues too.

The “fat” has long ago been cut out of government spending. Now, every $1 cut from spending destroys $2 in tax revenues. How do you ever “balance a budget” with that dynamic? Obviously you can never do so. You can only commit economic suicide; as Greece has already done, and which Spain, the UK, and other Traitor Governments in Europe are mimicking.

This brings us to a more fundamental defect on the part of these Traitor Governments. The colloquial definition of insanity is to do the same thing over and over and over, but expect a different result. This is precisely what is taking place in Europe – both individually and collectively – where governments copy the failure of other governments, and then continue those policies when they have already failed in their own economies.

This goes beyond simple insanity. It is nothing less than deliberate economic suicide. Which brings us to the real question: why are Europe’s Traitor Governments engaged collectively in intentional economic suicide?


The answer to that question is multi-faceted, and I have addressed all of those facets in previous commentaries. The real issues here are both political and economic in nature. In terms of economics we have an obvious dynamic: all Western governments plummeting toward bankruptcy.

There are only two possible ways to (positively) address this dynamic: eliminate unproductive government spending and/or increase revenues. What Austerity has done is to eliminate productive spending and destroy revenues. Obviously doing the exact opposite of what is necessary must result in total failure.

There are two massive sources of unproductive spending across all Western economies: interest payments to the Bond Parasites, and corporate subsidies. The solution to the “problem” of the Bond Parasites – sucking back more than 20% of every revenue dollar across the West – is simple, and has been discussed by many, beginning with Steve Keen: Debt Jubilee. Burn the Bonds (of economic slavery) and Western economies will be halfway toward salvation.

The other necessary step is to eliminate all corporate subsidies, more than 90% of which (by dollar amount) go directly into the pockets of multinational oligopolies. Here is where the utter ignorance of the economics profession is completely exposed.

For more than 40 years we have seen a perfect correlation across all Western economies: subsidies increase for corporations, while unemployment gets worse and worse and worse. To understand why this is happening, we must first ask ourselves what these mega-corporations do with all their subsidies. The answer is that they buy machines in order to eliminate jobs.

For more than 40 years, our Traitor Governments (backed by the brain-dead economists) have been subsidizing Big Business to help it slash jobs. While the real solution to the problem of oligopolies is to smash them all into little pieces (with existing anti-trust laws); at the very least we must stop subsidizing their destruction of our economies.

This brings us to the revenues side of the picture. As I’ve explained previously, Western economies are currently experiencing the worst revenue crisis in our entire history. Here the problem is even more obvious. Ordinary people and Small Business have already been squeezed dry. Meanwhile, our Traitor Governments refuse to tax either Big Business or the ultra-wealthy (who happen to own most of Big Business). Thus our economies are dying from taxation anorexia.

With taxes for large corporations and the ultra-wealthy at the lowest (effective) rates in history; our politicians remain willfully blind to the only Cash Cows who can ease their revenue crises. However, this mass-betrayal of the Western nations (by our own governments) also has a political component.

As I documented in a previous commentary, one (and only one) Western nation has escaped the economic slavery imposed by Traitor Governments serving Corporate Oligarchs: Iceland. It threw the banking cabal out of its country, and adopted People before Parasites in its economic policies. And the Oligarchs vowed not to let another nation escape its slavery.

This is the true goal of Austerity: to turn citizens into serfs – since serfs are much easier to govern. We saw this in Greece, where after its economy had already been destroyed the Oligarchs used the combination of fear and propaganda to get Greek serfs to re-elect the same Traitors who had destroyed their economy in the first place.

It’s time to stop the insanity, stop the betrayal; and throw all of these Traitor Governments out of power. The failure to stop this devolution of our societies back to serfdom implies the unthinkable: a high-tech Dark Age; where a tiny minority live lives of utter opulence, while the masses eke out lives as low-tech peasants.

Comments (6)Add Comment
Jeff Nielson
written by Jeff Nielson, October 12, 2012
This article pierces the dark heart of the predicament we find ourselves in today.
Since the other side of the DEBT that we suffocate under is the CREDIT that those on high supposedly bestow upon is. But as you point out, the money they lend and thus the interest riding on it has been CONJURED into existence from the void and so does not and never has qualified as real debt in the first place.
The real question is WHY are they allowed to do this?
Bankers do not "lend" and Governments do not "borrow", they both collude to transfer wealth from the public into unregulated bank accounts and secret vaults on mysterious islands. Deflation (standard of living) Inflation (cost of living) are the CONSEQUENCES of this theft.
In my opinion, THAT IS IT. All feigned dithering, incompetence, pseudo-bickering between followers of Keynes and Hayek is a play for our distraction, a cover for Top Down Global Organised Crime.

Dylan, when I (finally) understood myself the monstrous crime of being able to print (unlimited) quantities of 'money' out of thin air, lend it, and charge INTEREST on that conjured-paper; I felt like the world's greatest Chump.

"Why are they allowed to do this?"

Divide all of us Chumps into two categories. There are those capable of understanding this crime, who could simply never conceive of a SYSTEM dedicated to fleecing the masses; and the larger chunk of the masses who simply CAN'T understand how they're being robbed every day of their lives.

This is PRECISELY why Organized Crime (i.e. the Oligarchs) do the vast majority of their stealing via banking and/or taxation. Because they know these are the two facets of business which either bore, confuse, or simply terrify the largest percentage of people.

It's MUCH easier to steal from people IF they don't understand what you're doing...

written by Dylan Jones, October 12, 2012
Glad you`re back Jeff,

This article pierces the dark heart of the predicament we find ourselves in today.
Since the other side of the DEBT that we suffocate under is the CREDIT that those on high supposedly bestow upon is. But as you point out, the money they lend and thus the interest riding on it has been CONJURED into existence from the void and so does not and never has qualified as real debt in the first place.
The real question is WHY are they allowed to do this?
Bankers do not "lend" and Governments do not "borrow", they both collude to transfer wealth from the public into unregulated bank accounts and secret vaults on mysterious islands. Deflation (standard of living) Inflation (cost of living) are the CONSEQUENCES of this theft.
In my opinion, THAT IS IT. All feigned dithering, incompetence, pseudo-bickering between followers of Keynes and Hayek is a play for our distraction, a cover for Top Down Global Organised Crime.
Jeff Nielson
written by Jeff Nielson, October 11, 2012
Jeff: no where in the bloviating of the unelected technocrats now in charge in Europe is there any mention of seeking the will of the people through referenda. Worse still, none of the opposition to this fascist normal seems to care, which leads me to believe that the opposition leaders are merely plants or convenient stooges. For this reason the inevitable end game of full totalitarian control envisioned centuries ago by the Rothschilds et al, will occur. God help them.

Yes Apberusdisvet, not only is this situation totally surreal -- but it's also more two-tier deja vu, where the Oligarchs have stopped even PRETENDING tht we (supposedly) live in "democracies", ruled by an arcane concept known as The Will of the People.

Instead, we live in an era of dictatorial tyranny, best-characterized in Italy -- where an unelected Banker has been appointed to ransack the nation.

It's no longer hyperbolic to talk about Revolution, rather it seems more and more to be our inevitable fate...

written by Andy Bergeron, October 10, 2012
Jeff: no where in the bloviating of the unelected technocrats now in charge in Europe is there any mention of seeking the will of the people through referenda. Worse still, none of the opposition to this fascist normal seems to care, which leads me to believe that the opposition leaders are merely plants or convenient stooges. For this reason the inevitable end game of full totalitarian control envisioned centuries ago by the Rothschilds et al, will occur. God help them.
Jeff Nielson
written by Jeff Nielson, October 10, 2012
...What we need is a politician that serves the PEOPLE and maybe after that we could shift to Direct Democracy where THE people decide their own fate!

Free_man, there is no doubt that once we (somehow) emerge from our current economic/political crisis that we need to re-forge our so-called "democracies".

There are two possible ways to do this:

1) By improving the PROCESS.
2) By improving the caliber of VOTERS themselves.

I think that both aspects of this issue need to be explored. Sadly, it's not really possible to say anything substantial here within the space of a comment.

While it wouldn't exactly be "business related", perhaps I could find time to offer some suggestions for revamping Western political systems...?

written by Free_man, October 10, 2012
Excellent article Jeff. Exactly what we face at the moment. What we need is a politician that serves the PEOPLE and maybe after that we could shift to Direct Democracy where THE people decide their own fate!

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