Tuesday, July 12, 2011

The Debt Ceiling Con Game – Surprisingly, Does Ron Paul Propose What We Have Alone Advocated Since This Crisis Began?

That is, to monetize our debt?  Economist Dean Baker on CounterPunch is writing that Paul is advocating the Federal Reserve monetize U.S. debt.   Regardless of Paul’s specific intent or Baker’s interpretation of his intent, this is a position we have advocated since this crisis started.   Something that would completely throw off all of the histrionics by ideologues who believe the only way out of this mess is to see a debt collapse.

Let’s get a few things straight.  There is ideology and there is reality.  Most everything anyone will read or learn about economics and monetary economics is ideology.  Everything in politics is ideology.  The founders of fascism or corporatism in America, the modern day Republican Party, have not proposed a single jobs bill yet want to cut social programs that countless underprivileged or unemployed people rely on in this crisis, or even completely eliminate these programs.  All while they continue to support the war state and corporate welfare of the fascist state.    People, especially corrupt politicians, adopt a position as a religion and either don’t or can’t think beyond that religion to a greater truth.  And because of that, very little of what anyone reads about economic or monetary economics is true.   Nothing about politics is ever true.  Ever.  It may be one of many acceptable realities as a relative statement but that’s about as good as it gets.   That’s why politics and science don’t mix – Al Gore.

The reality is the government could continue to spend 70% of national income forever and we could still have a democracy.  But as it is structured today, everyone’s money is no one’s money.   What kind of system would that be if most Americans had the fruits of their labor spent by some bureaucrat or given to some corporation as part of corporate welfare or corrupt bankers who decimated our economy?  Well, I think we know because we are witnessing that today.  We see CEOs, bankers and bureaucrats, the parasitic economy, paying themselves the wages and benefits of gangsters off of the backs of productive people in society. 

As long as government spending comes from the pockets of its citizens, which it shouldn’t and doesn’t have to but does today, spending 70% of national income is an afront to economic and personal freedoms.   It results in the destruction of an economic meritocracy, a stagnation of innovation and human achievement, economic and political cronyism, fraud and corruption, a loss of economic and personal freedoms and an Orwellian big brother telling everyone else what to do across a wide range of issues that big brother shouldn’t and doesn’t have any right be have his nose in.

We wrote the exact words that at some point in the future the Federal Reserve would be forced to monetize debt and that would expose the debt bomb as a fraud, a myth, a con based on corruption.  And, if they are forced to do so because of the debt ceiling con game or a future bailout of banks or to force the dollar downward from a murderous ascent that threatens U.S. economic interests or bank derivative positions or whatnot, everyone will start realizing if this happens that debt is nothing more than a myth.  It can be wiped away like a gnat.  And then why can’t all of our debt be wiped away?  Who decides who is granted that privilege?  Politicians? 

As we have written countless times, debt is a symptom not the problem with the U.S. economy.  And that the U.S. government has increased transfer payments (state-based and welfare-related income programs) 700% over the last three decades is a symptom of a broken economic model created by fraud and corruption of elites and their bribery of government policy. (Although these crooks would often tell us it is because Americans are lazy.  More Nazi-type propaganda and political terrorism.)  

Globalization is based purely and completely on corruption.  And in governments where there is some small modicum of virtue and transparency, those governments do whatever they can to protect their people and their own political power in this game.  ie, As an example, the euro currency is France and Germany’s fraudulent attempt to capture other nations under the same corruption that the U.S. has used the dollar to capture corrupt emerging markets.  Except while the U.S. is able to do it through brute force of currency, France and Germany do it through owning and protecting the majority of the economic means of production in Europe.  So, the euro enslaves other euro nations to primarily Germany. (Remember, we have written that Germany is headed for disaster.  This when Germany was held as a shining star in the collapsing global economy.)  Our call for Germany’s future crisis is effectively the same call that globalization is dead.  Because in some similar fashion, the euro is operating under the same dynamic.

This free market con game only flies in the United States and the corrupt countries it can bribe to create these massively fraudulent “free trade” agreements with.   You see Germany or France or Japan signing a “free trade” agreement with the U.S.?  Free trade is a code word for financial pillaging of other countries by U.S. elites.  And no developed country is going to allow that.  Globalization is now imploding because it is all based on fraud.  This has nothing to do with a credit crisis as so many of the status quo and economists are still trying to convince us it is.  They are simply useful idiots or con artists.

If the Federal Reserve can monetize the Treasuries it currently owns, then why can’t it go out and buy all U.S. Treasury debt and monetize all of it?  And then why can’t we fix Social Security rather than cut it to pay the interest on our national debt?   Why does the U.S. pay hundreds and hundreds of billions of dollars a year to private banks to borrow money?   Money that could back in our pockets or go to providing for the special needs of our citizens or health care for everyone or rebuild our infrastructure or whatever.   

Yet all I see everywhere is people still howling about debt and future obligations or future debt doing us in.  About not having the money to fund Social Security or Medicare.  Well, that is ridiculousness of the uninformed mind.  Remember when we asked hypothetically if society would have any money were our economy to be completely automated and no one needed to work?  One needs to think this dynamic through and understand how it could be applied to Social Security such that it could be funded forever without the threat of political terrorism to cut it as is happening with Republicans today. 

When I read about people talking about how debt is going to cause a great depression I have to laugh.  Laugh if it wasn’t all so sad.  These people are unknowingly using terror to support a corrupt economic and political system of tyranny.    Debt causes economic slavery.  It doesn’t cause depressions.  It didn’t cause the Great Depression, although countless “experts” will tell you to the contrary.  Well, just like everything else, the herd is usually wrong and doesn’t truly understand what they are talking about.  

So, let’s get back to Dean Baker and Ron Paul.   How many people have bullshitted you because they don’t understand money or economics?  Told you that debt was the driving crisis in America?  Or that we could not keep our future obligations to Social Security or fund needed social programs?  Just about everyone I see writing out there from prominent financial bloggers to everyone in the finance sector to everyone in the Republican Party.   Their beliefs on money, economics, debt and countless other issues are based on the subjective world in their mind and not on what is real.  Their beliefs are driven by limited thinking and limited knowledge yet they present it as fact.  What is possible is only limited by the artificial prison that is the human mind.  

As I have said on here many times, I could put forth a clear and simple plan to solve the economic and government funding issues in the United States.  Those who believe the world must first come to an end are ridiculous.  There are countless people who could either improve upon those solutions or who have even better solutions.  If the United States would embrace public discourse where every reasoned idea by every American was given a voice to solve its problems rather than rely on corrupt political ideology created under the duress of endless money lobbying, we would be completely out of this crisis within a few years.  

Title link here.

posted by TimingLogic at 11:26 AM