1 May 2013

Bankers (seen above) rule the world. Everyone depends on banking systems, including governments and the One Percent.

Without bankers, the world as we know it would not exist. Power and social hierarchies would be based on something other than money, since money would not exist.

Bankers control everything. They use austerity to commit genocide without firing a shot. They control politicians by bribing them with money created from nothing.  They can change the numbers in your bank account to show that you never had any money. Even if you had paper records, the bankers could easily “prove” that you “withdrew” your money, and no judge would dare disagree.

The reason why bankers have this omnipotence is that most people live in denial. “Bankers would never do that. They couldn’t get away with it.”

No? What about Cyprus? What about “rehypothecation,” in which bankers gamble with your deposits?  Bankers do whatever they want. They control the scoreboard. They create loan money out of nothing, simply by crediting accounts, thereby keeping billions of people in debt servitude. Bankers are the most parasitic of all villains.

A bank is a casino, and the house always wins. When you deposit money in a bank, you gamble that bankers will not steal it like they did in Cyprus. And you remain second or third in seniority behind other gamblers, such as bond holders, derivatives holders, etc.



Do you think your money is insured against banker theft? Think again. Bankers are above it all. The people of Cyprus trusted their bankers, and look what happened. Elsewhere, bankers used their LIBOR scam to steal billions (perhaps trillions) from city, county, and state governments, plus big corporations and wealthy investors. The victims were extremely powerful, and together they mounted a class-action lawsuit against 16 of the biggest banks. But, despite their awesome power, they were insects compared to the bankers.  On 29 March 2013, U.S. District Judge Naomi Reice Buchwald dismissed all charges against the bankers, saying it was the victims’ own fault for thinking that bankers were honest, and that bankers competed with each other in a “free market.”

Now those exact same bankers have a new scam against the same victims, and it dwarfs even the LIBOR scam. It is connected with interest-rate swaps: a tool used by the victims to manage their debt. This is a $379 trillion market, meaning that bank manipulation affects a pile of assets 25 times the size of the US GDP, and 100 times the size of the US federal budget.

(You can learn more here…http://www.rollingstone.com/politics/news/everything-is-rigged-the-biggest-financial-scandal-yet-20130425)

Because banking is at the center of all human social life, bankers should be regulated more than anyone else in the world. Until everyone understands this, bankers will continue to rule the planet.


–>[[NOTE: The end of each comment is signified by the black bar below. Everything on this page is one continual post that I wrote today, but various topics are separated by this black bar.]]



Two Democrat Congressmen say we can reduce the deficit by taxing and legalizing marijuana. They say this would bring in revenue (as though the federal government needed tax revenue) and would also cut costs in drug enforcement and incarceration.

Rep. Earl Blumenauer (D-Ore.) and Rep. Jared Polis (D-Colo.) say “We are trying to rationalize federal drug policy. We’re spending too much money on enforcement for something most Americans think should be legal, and we’re losing revenue.” (If politicians need revenue, they can call me. I’m ready with my computer keyboard.)


Colorado and Washington have already legalized recreational marijuana, and are taxing and regulating the drug. Blumenauer and Polis think the federal government should take a similar approach to blaze the deficit away.






On 23 April 2013, Bangladeshi authorities asked the owners of a sweatshop to evacuate their 3,000 slaves, because the building was obviously about to collapse. The greedy sweatshop owners refused. The next day the building collapsed, killing 375 at latest count. (Over 900 are still missing, buried in the rubble.)

Catastrophes like this are routine in Bangladesh, which produces more garments than any nation except China.

The reason they are routine is that austerity forces Americans to shop at Wal Mart, whose suppliers have razor-thin profit margins.

That means slave labor across most of the world.

The big garment labels don’t even build factories any more. They let local people throw together structures that collapse.

Because of austerity here, sweat shops there are now death camps.



The item below is a satire.

(I hope.)




Moe: I want austerity for everyone but me, since I am a maker, and everyone else is a taker.

Larry: I want austerity because when I call for it, I magically become part of the One Percent.

Curly: I want austerity because it will punish lazy Blacks (or Hispanics, or urban dwellers, or some other group).

Shemp: I want austerity because everyone but me lived beyond his means, and now must pay the price.

Joe: I want austerity because it will mean the rich pay taxes.

POLITICIAN: Since all of you want austerity, all of you will get it!





A reader commented: “All Keynesians operate on the big lie that we can have infinite growth in a finite world.”

I don’t know any Keynesian who advocates “infinite growth,” but I do know that austerity is not the way to foster the development of pollution control, energy production, efficient use of resources, and so on.

The same twit, in a different comment, says the US government borrows all its money. “Keynesians operate on the big lie that debt can grow forever, and be managed as a percentage of GDP. That’s how they promote stimulus borrowing.”

On yet another blog, the same clown says, “Stimulus is only going to push oil and food prices even higher. This will automatically begin another financial crisis.”

Then, in response to someone else’s comment, the retard says sarcastically, “Spend, spend,spend! What could go wrong?”

Agreed! We need more austerity! More foreclosures! More unemployment! More hunger! More downward pressure on wages! More poverty! More private debt! More austerity! Always MORE!




If you want to speculate in the gold market, you can purchase an actual gold bar with a number stamped on it, if you can find one for sale. Or, like most people, you can go the much cheaper way and buy “shares” in a gold exchange, in which case you will never own any gold at all. You will merely own a digital notation in a Ponzi scheme that anyone can set up, even if he has no gold. And because all gold exchanges are Ponzi schemes (no exceptions), all are manipulated by insiders (no exceptions). Indeed, all gold traders and “experts” are liars and hucksters (no exceptions). And because gold shares are traded on stock exchanges like other shares, they too are subject to high-frequency trading and other scams.

The big gold exchanges are leveraged hundreds-to-one, meaning they have hundreds of times more money than they have in a gold equivalent. (Many exchanges have no gold at all, and don’t need it.) One exchange, the London Bullion Market Association (LBMA) is leveraged 100-to-1.


Gold reached a high of $1,930 per ounce in September 2011. In April 2013 the Troika bankers pulled off their Cyprus heist. Goldman Sachs, as usual, exploited the victims’ misery by using Grand Theft Cyprus as an excuse to short gold shares at SPDR (a gold exchange that is connected with New York Stock exchange, and is therefore called an “exchange-traded fund”).

As the price of gold shares plunged, many “owners” of gold suddenly remembered that they had never been “owners” at all. This caused a panic, which burst the bubble. On 15 April 2013 the trading price of gold dropped by $110 per ounce, eclipsing its previous biggest one-day loss recorded in January 1980. Some people who had bought shares via the London Bullion Market Association (LBMA) forgot that they were not owners. They demanded “their” bullion, but were told, “You can have a check.” This accelerated the panic.  It was called a “gold default,” meaning there was no gold to back the shares. (But there never was any gold, and it wasn’t a “default,” since your purchase contract says you will get a check, not gold.)

Naturally, Goldman Sachs made out like bandits. Goldman does it every time, and always finds new suckers who are eager to get fleeced by the precious metals Ponzi schemes. The victims line up, because the bubble always seems “real” when it is inflating. Their hope is to get in, rip  everyone off, and get out before they are ripped off. (The “bigger fool” phenomenon.)

Digital gold currency is likewise a Ponzi scheme, filled with charlatans.

Since all gold exchanges are Ponzi schemes (no exceptions), all gold traders are forced to lie. They claim that the dollar is about to “collapse.” They claim that the US government has a “debt crisis.” They claim that gold has a “true value” apart from gold exchanges, and that gold has tripled in “value” since 2008. They claim that gold has intrinsic monetary worth, apart from any monetary system. They boast that, “A gold coin will last forever, but paper dollars won’t.” (The truth is that if society crashes, gold will crash too, since you can’t drive it, wear it, grow it, or eat it.) They claim that gold is a currency, even though no nation uses gold as currency. (And even in the past, when countries did use gold coins, the coins were gold-copper alloys.) It’s one lie after another, all designed to stoke greed and fear.

There’s a YouTube video titled “The Secret World of Gold” that has so many lies that I suspect it was funded by gold traders. Or maybe Goldman Sachs. (I will expose its nonsense if anyone challenges me.)

If one country bought all the gold in the world, that country would not be richer by one penny, unless that nation controlled all banking systems in the entire world, and imposed a gold standard. But if it controlled all banking systems, it would not need a gold standard anyway. Power does not need gold to back it up. Bankers do not need gold to rule the planet. It is bankers that give monetary value to gold in the first place. Bankers rely on mind control. Gold has some utilitarian value (e.g. it is a good electrical conductor) but without money systems, gold would be bartered for beans, or a cow, or something useful.


The illusion that gold has an intrinsic value is false and absurd, yet so powerful and widespread that some national governments are caught up in gold-buying fever.

Incidentally, this brings up why the U.S. government cannot confirm or deny that there is gold in places like Fort Knox or the Fed Bank of NY.

If the government confirms that there is gold, then the brainwashed masses might lose faith in the dollar, since they falsely imagine that gold is a safe hedge. This might erode the bankers’ power.

On the other hand, if the government confirms that the vaults are empty, then the brainwashed masses might start to think about how money actually works. Again, this would threaten the bankers’ power.

Warren Buffet puts it this way:

“Gold has no utility. Anyone watching from Mars would be scratching his head. What motivates gold purchasers is their belief that the ranks of the fearful will grow. But if you own one ounce of gold for an eternity, you will still have only one ounce at its end. It’s a lot better to have a live goose that keeps laying eggs than a golden goose that just sits there and charges you for insurance and storage.”





Some people claim there is “no evidence” that bankers and the rich pay politicians to widen the wealth gap by imposing austerity. However there is plenty of evidence, and it is quite objective. A recent example is a study titled, “Democracy and the Policy Preferences of Wealthy Americans,” written by three professors. (Link below.)

The study asked rich people what they felt were the “very important problems” facing the country. (Rich meaning $40 million or more in net worth.)

Among the rich, the most common response was the federal budget deficit, with 87 percent of the rich claiming that this was the most important problem.

Among average people, only 7% said the deficit is the country’s most pressing problem. (The top answer was jobs.)

The study found that the rich want to cut programs like Social Security and Medicare, while the non-rich want to expand them.   The study asked for responses to statements like this: “The federal government ought to see to it that everyone who wants to work can find a job.”

68% of average people agreed with this, but only 19% of the rich did.

The study is 23 pages, and some parts of it are dry, but it’s worth skimming.


Or you can read the authors’ summary below. We know their poll was authentic, because the authors (stupidly) think that federal spending and the “national debt” are problems.



Other studies further confirm that politicians impose austerity because the rich pay them to do it. Those studies are discussed in the link below.

So much for “no evidence.”


This shows that the public at large is not quite as brainwashed as it seems. (Although most people who comment at the media sites are morons.) In early 2011, only about 12% of Americans in Gallup polls cited the “national debt” as the nation’s most important problem. Three times as many cited unemployment and jobs as the biggest challenge facing the country.

This also shows that not all economists are toadies for the rich. Even Paul Krugman admits: “One cannot understand the influence of austerity doctrine without talking about class and inequality.” (cf. Mitchell’s Law #7) In other words, we have austerity because the rich dictate it. Furthermore, most economists only say what the rich tell them to say. Krugman calls this “eye-opening,” as though it is news.

Sadly, Krugman then contradicts himself as always: “Does a continuing depression actually serve the interests of the wealthy? That’s doubtful, since a booming economy is generally good for almost everyone.”

IDIOT! A depression means the disappearance of the middle class. It’s called widening-the-wealth-gap. Moreover, Krugman admits that the 1% promote austerity. Why then why is it “doubtful” that austerity serves the 1%?


Elsewhere Krugman says that global austerity is “An unethical experiment on human beings.”


Why then does Krugman want austerity for the future? “Austerity Lite” is still austerity.


Krugman also says the UK and USA can “borrow very cheaply,” as though they are forced to borrow, and their central banks have no control over interest rates. Krugman also says that to dump the euro currency would be to “default,” as though using your sovereign currency to pay your sovereign debt is a “default.” Krugman also supports QE, as though it were more than a gimmick for juicing the stock market, while doing nothing for the real economy.

Joseph Stiglitz is more honest.

Stiglitz is a Nobel prize-winning professor of economics at Columbia University, and a former chief economist of the World Bank.  In a Bloomberg interview, Stiglitz says the U.S. economy needs more fiscal stimulus, because austerity can only cause a depression, and monetary policy has little traction. (Translation: low Fed rates only help the big banks, while the Fed’s QE is only a “stimulus” for rich speculators.)

Stiglitz says, “Austerity leads the economy to perform more poorly. It leads to more unemployment, lower wages and more inequality. There is no instance of a large economy getting to growth through austerity. What we need is another round of stimulus to get out of the doldrums. We can’t rely on exports, given the weaknesses in Europe.”

Stiglitz also says that Europe’s austerity measures are “misguided.”  (Here I disagree. Austerity is necessary as long as a nation does not have Monetary Sovereignty. Stiglitz also feels that Angela Merkel doesn’t understand economics. That’s nonsense. Merkel uses the euro to enslave the euro-zone outside Germany. After the destruction is total, German bankers will enslave the German masses.)


Note that, according to the first study at the top, both the rich and average people equally feel that the federal government should spend more on repairing and modernizing the country’s infrastructure.

However nothing can happen until the austerity fever breaks.




If you are a European politician, how do you win the love of the victims you starve?


You denounce austerity and German power, while you also defend austerity and German power. That is, you defend the euro currency.

In France, for example, austerity has caused unemployment to reach an all-time high.

Benoit Hamon, the social and consumer affairs minister, attacks Germans, saying they are the only ones who still support austerity. Hamon said it was time to finish the politics of austerity. He said the tide is turning, and it is time to “bite the bullet.”

“The only economy that is resisting, opposing, vetoing is Germany.”

However Mr. Hamon does not call for France to dump the euro. Reason: he wants to stay on the German payroll. (Euros are issued by the ECB in Frankfurt.)


By supporting the euro, Mr. Hamon postures as “pro-France” while he defends Germany’s attack on France. He complains about anemia, while continuing to defend leeches.

All “socialist” politicians and bureaucrats play this same game. On 26 April 2013, “socialist” politicians from France, Spain and Portugal met in Lisbon to publicly whine about Germany, but privately protect Germany’s power by defending the euro.

Meanwhile Germany defends its tyranny by calling it “unity.” “We bring you order.” (Like a team of horses under one whip.)

Last year, Germany pushed through a “stability pact” that requires all nations outside Germany to bring their budget deficits below 3% of GDP by the end of 2013. This is impossible, but France and the other nations will impose more austerity anyway.  They have no choice, as long as they use the euro, issued by Germany.





If you don’t understand the difference between “federal deficit” and “national debt,” then you should stay silent. Otherwise you only give ammunition to the austerians.

U.S. Representative Mark Pocan (D-Wis) says, “Social Security didn’t cause our deficit. Not one dime gets added to the deficit because of Social Security. It’s not allowed to, by law.”

Wrong. SS does indeed add to the deficit (and that’s a good thing). Moreover, it adds to the “debt.” The Treasury must sell T-securities in an aggregate amount equal to a fiscal year’s overall deficit. Since SS adds to the deficit, SS adds to the “debt.” (Which is also an asset.)

If you really want to defend SS, then you should admit that the debt and the deficit are GOOD things. Admit that the debt is an asset, and the deficit is money added to the economy. You should also admit that FICA taxes do not pay for SS, and federal taxes do not pay for the federal government. And admit that SS is not a “pay as you go” system.

Mr. Pocan claims that SS benefits can be paid only from the SS “trust fund.” This is garbage, because it’s all accounting tricks. Is there really a trust fund somewhere? Who cares? It’s all just numbers in computers. SS benefits are paid by crediting bank accounts. Period.



Austerity 001


Ralph Nader and Chris Hedges both claim to support workers, yet both want to increase the minimum wage, thereby worsening unemployment, along with the depression. For example, an increased minimum wage would mean an increased FICA tax for workers and employers alike.

If you want to give workers a raise, then why not eliminate the FICA tax? Why not eliminate federal corporate taxes, so that corporations move back to the USA, thereby creating jobs? (The more jobs we create, the more bargaining power we create for workers.)

If you don’t want to cut taxes, then we must have a dramatic increase in government spending. Otherwise, an increase in the minimum wage can only hurt workers.

However, Mr. Hedges wants to decrease government spending. He complains that Obama has not kept his promise to cut the deficit in half. (Actually Obama has done that, which is why we have a depression.)


Hedges complains that Obama is “Squandering the country’s future with deficits that can never be repaid.” (Obviously Hedges doesn’t know what “deficit” means.)


Hedges complains about the need to “rein in spending.”


Hedges claims that, “Banks and financiers use debt peonage to enslave the federal government,” and that, “Once federal agencies cannot pay their bills, their assets are seized.”


Mr. Hedges, sit down and be quiet. You only make matters worse. I would ask you to visit Rodger’s blog for an education, but I know you are “above” that.

Ralph Nader also needs an education. I have discussed his many errors before.




No. Economics can neither be ethical, nor a science, because economics is inherently political. Logic, facts, and ethics are irrelevant. The only question is who has power. Society’s rulers dictate the economics narrative. Indeed, most economists are toadies for the rich. It has always been this way, and perhaps always will be.

Economists do not make “mistakes.”  Reinhart and Rogoff, for example, deliberately lied. Nor do economists make “failed theories.” Austerity, for example, has not “failed.” On the contrary, it has succeeded in widening the wealth gap, which is its purpose.

Even the rebuttal of R & R by the Univ of Mass Amhurst paper favors austerity (i.e. a reduced federal deficit). The authors merely say that R & R’s debt threshold of 90% is not correct. The authors do not admit that for Monetarily Sovereign governments, the “national debt” is trivial, and the debt-to-GDP ratio is meaningless. They do not admit that the government’s deficit is society’s surplus.

This is understandable, since lies are like narcotics. Once you get your victims hooked, they will always beg for more. And the more your narcotic kills them, the louder they beg.




Austerity is designed to starve the masses so that they are grateful for any job, however menial, dangerous, and low-paying it is, and however totally it destroys their neighborhood.

Example: the mountain of Skouries in northern Greece (80 km east of Greece’s second largest city Thessaloniki) has some of the oldest forests in Greece.  Those forests are about to be destroyed by international mining giant Eldorado Gold Corporation and its local subsidiary, Hellas Gold.

The corporation will create a gigantic open pit mine, which it claims it will create 1,000 jobs for locals (who will later have to shoulder clean-up costs themselves).

Christo Pahtas, mayor of the municipality where the mine will be dug, was so weary from austerity that he signed away extraction rights to a 317,000-square-kilometre area without asking for any royalties. Moreover, Eldorado Gold Corporation will avoid taxes by processing minerals outside Greece. During the mining, however, it will dump cyanide and arsenic into the surrounding forests.

Local would-be miners and their families don’t care. Because of austerity, they will take anything they can get.

Other Greeks who are not miners have protested the coming disaster, but they are crushed by police.



Troika bankers use the euro currency to enslave the euro-zone, and they want Poland, which has Eastern Europe’s largest economy. Poland is not yet under Troika control, because Poland still uses its own currency, the zloty.

So far, Polish politicians have not taken the euro-bait, perhaps because of centuries-old hostility between Poland and Germany.

However, inside Poland, politicians have austerity fever, since the rich require them to.  Finance Minister Jacek Rostowski pretends that Poland does not have Monetary Sovereignty. He says he will impose austerity on the masses, claiming that Poland must reduce its deficit because…well…just because.

A Bloomberg article spouts this trash…

“EU member states have to keep their deficits under 3 percent or else present a plan to do so. Offenders may lose access to development funds. The European Commission, the EU’s executive, has granted Poland leeway of about 0.5 percentage point on its targets to account for the cost of a pension overhaul.”

This is garbage, since Poland creates its own money, and thus does not need any “development funds” from Troika bankers.

The rest of the Bloomberg article discusses Poland’s debt-to-GDP ratio, as though it has significance (which it doesn’t). The Bloomberg article also says that the depression in the euro-zone will “curb revenue” for the Polish central government — as though it needed tax revenue.



Slovenia, south of Poland, is a former Yugoslav republic that became very prosperous after the fall of the USSR . However, Slovenia doomed itself when it adopted the euro, and surrendered its Monetary Sovereignty. Now Slovenia is at the mercy of Troika bankers, who want more austerity. (A lot more.) The bankers want terminations and wage cuts in the public sector, cuts to pensions and social welfare, and cuts to education and healthcare. In return, they will pay Slovenia’s politicians enough for politicians to live in splendor.

In February 2013, large protests against corruption and austerity measures led to the resignation of the right-wing government of Janez Jansa. However the new coalition under Prime Minister Alenka Bratusek has vowed to imposeTroika dictates on the people. Ms. Bratusek will slash public spending, and impose new VAT taxes. (With VAT taxes, every transaction at every level is taxed. There is no wholesale part of the chain. This is unlike regular sales taxes, which are charged only once, at the point of purchase by the end consumer.)

Slovenia’s three largest banks are publicly owned. This gives power to everyone, not just bankers.  That is is unacceptable to the Troika. Therefore Ms. Bratusek’s top priority is to privatize those public banks.




Malaria, dengue fever, tuberculosis and West Nile virus were long thought eradicated from Europe. Now, austerity has caused them to re-emerge.

In Greece, mosquito-spraying programs were shut down in 2011, causing the first malaria outbreak since the 1950s.

Funding for health care in Greece has been cut by up to 40 percent, causing a 1500-percent increase in HIV cases.

In Europe, suicides are rampant.

A study by British health experts say that the death and despair can be controlled, even during financial crises, if there is a political will to do so.

“Worsening health is not an inevitable consequence of economic recessions. It is a political choice.”


Greece has fired 25,000 public sector workers, and placed in a so-called labor reserve, in which they receive a percentage of their salary for a year. The goal is to fire 150,000 by 2015.

On 28 April 2013 the Greek parliament decided to fire 15,500 public service workers, reduce the Greek minimum wage, increase property taxes, and make teachers work two hours longer with no increase in pay.

In addition, for the past two years, for every five workers who retire, only one is and

The last time there were extensive political sackings was under the military dictatorship between 1967 and 1974. Now Greece is under a German dictatorship. The only public sector jobs now available are tax collectors. Property taxes are collected by electricity companies.

The minimum wage was lowered last year by almost €70 per month, and is now being cut again. Newly hired workers can now be paid just €490 (US$642) instead of the current €580 ($760) per month. For the under 25 year-olds, the minimum wage was reduced to reduced to €427 ($559). (If you work 40 hours per week, that’s $3.50 per hour.)

The government is openly violating the Greek constitution, which since 1911 has prescribed that public sector employees are protected against dismissal.

In January and February, Greek private workers were forced back to work under martial law. Union bosses collaborate with politicians. The most they do is to organize toothless protests and strikes, which the union bosses discuss in advance with politicians, to get permission.




One Response to 1 May 2013

  1. Pingback: 18 May 2013 | My Blog

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