7 May 2013




By now you’ve heard about the Niall Ferguson faux pas regarding John Maynard Keynes.

For Ferguson, this could be a career-ending error.

Ferguson was born a poor nobody, but learned to advance himself by shilling for the 1% at the expense of the 99%. (Just like Carmen Reinhart, another poor nobody.)

Eventually this brought Mr. Ferguson of Scotland and Ms. Reinhart of Cuba a professorship at Harvard University.

Ferguson spends all his time ingratiating himself with the rich by bashing gays, and by cheering for war, greed, imperialism, and austerity. (I won’t delve into his sordid past, as it’s all over the Internet.)

Recently, however, he vomited his filth at the wrong crowd at the wrong time.

CONTEXT: The Tenth Annual Altegris Startegic Investment Conference

PLACE: Park Hyatt Aviara Hotel in Carlsbad, CA

TIME AND DATE:  Thursday, 2 May 2013, 9:01 am.

Ferguson told a crowd of investors and money managers that Keynes developed his general theory because, according to Ferguson, Keynes was gay and childless, and therefore didn’t care about the future. (Actually Keynes was childless because his wife miscarried.)

For Ferguson, the only people who care about the future are those who (like Ferguson) shill for the rich by demanding more poverty for the poor (i.e. more austerity).

Ferguson’s foul-up is all over the Internet, and has been analyzed many different ways. I say he is simply a victim of bad timing. His comments were offensive, but he didn’t say anything he hasn’t said many times before in his books, lectures, articles, and interviews. Whenever rich people invite him to their mansions for parties, Ferguson tells “fag jokes” about Keynes, hoping it will make him socially acceptable .  If Ferguson had spewed his standard filth about Keynes at a convention six months ago, then everyone would have laughed with delight. However his latest sleaze-slinging came on the heels of the Reihart-Rogoff debacle.  (Reinhart, Rogoff, and Ferguson are all Harvard professors.)

The Altegris Convention went on for three days. The first day consisted of registration, reception, and dinner. The second day brought speeches and presentations. The first speaker of all was Niall Ferguson, who soured the entire conference with his vile sewage.

Reportedly the audience responded with stunned silence. Afterward no one wanted to talk with Ferguson, or be seen anywhere near him.

Ashamed and mortified, he issued a bullshit half-apology on his personal blog. However the damage to Ferguson’s career is probably irreparable.

Austerity will continue, but it can no longer be called prosperity. (The public no longer believes that 0+0=6.) To sustain their class war, the rich and their shills are having to re-tool their lies.

Evidently Ferguson didn’t get the memo.




Paul Krugman just passed 1 million followers on Twitter. This doesn’t quite elevate him to the ranks of genuinely important people like Lady Gaga (32 million followers) or Justin Beiber (33 million), but it does mean that 1 million people regularly get text messages from Krugman. I have no interest in Twitter, and I don’t think that text messages of 140 characters or less can contain much. Still, what counts is not the content of one’s “tweets,” but the size of one’s following. A million people at a time receive the name Krugman-Krugman-Krugman. I suppose this also means that those million people also believe Krugman’s lies.


Krugman says that austerity today is bad, but austerity tomorrow is good. He says we need more federal spending, even though (according to him) the spending will put the federal government deeper “into debt” (when in reality the government doesn’t need to “borrow,” and the “national debt” is a national asset). He says the “national debt” will eventually affect interest rates (when in reality the Fed sets its own interest rates for its own reasons). He wants the Fed to engage in more QE (as though it helped the real economy, when QE only juices the financial economy).

He says the euro-zone is a “failure of misunderstanding and intellect” (when in reality Germany uses the euro currency to enslave and exploit the other nations, aided by corrupt politicians in those slave nations.)

Above all, Krugman dismisses the fact that politicians, media pundits, and economics professors push for austerity because they are paid to do so by the rich. For Krugman, they are all simply “misguided.”

This is the excrement that one million people eat each time they get a “tweet” from Krugman.





The ultra-right-wing Heritage Foundation claims that granting citizenship to 11.5 million unauthorized US residents would cost U.S. taxpayers $6.3 trillion.” (As though tax revenue pays for the federal government). In other words the Heritage Foundation claims that expanding US citizenship by just 4% would cost the United States nearly 50% of the country’s annual wealth.

Why would this “cost” the USA? The Heritage Foundation assumes that immigrants who spend their money on consumer goods and services do not spend their money on consumer goods and services. Instead, the immigrants disintegrate their money. (Perhaps they burn it.)  For the Heritage Foundation, all money earned by immigrants leaves the US economy, and can never be replaced.

“While it is true that unlawful immigrants enlarge GDP by roughly 2 percent, they capture most of the gain from expanded production in their own wages. They make the American economic pie larger, but they themselves consume most of the slice that their labor adds.”

Given that Heritage claims an estimated 11.5 million undocumented immigrants in the USA, this means that every single man, woman, and child immigrant will get an average of $11,000 worth of free stuff each year for the next fifty years, and will disintegrate it. That’s $6.3 trillion of the “American economic pie” gone forever.

This excrement is an example of how bigots, Tea Party types, and right-wing morons view the world. They are “makers.” Everyone else is a “taker” who steals and disintegrates the security and livelihood of the “makers.”

When “takers” get paid for working, they destroy the money. Hence, they are thieves who rob the “makers.”





European Central Bank President Mario Draghi says there can be no growth without austerity (which he calls “budget reforms” and “sound public finances”).

Speaking before an audience at Luiss University in Rome, Draghi said politicians must continue to impose austerity in order to grow their economies (by shrinking them).

Draghi also said the ECB is ready to cut interest rates again if needed after reducing them to a record low of half a percent last week.

TRANSLATION: Euro-zone nations must get their money by borrowing it from the ECB, or else by selling bonds (although Germany gets its money from its trade surplus vis-à-vis the other euro-zone nations). If the Germans and the Troika bureaucrats push their scam to the point where euro-zone economies collapse, then the scam will be over. Since euro-zone economies are already on the verge of collapse, the ECB must keep lowering the interest rate it charges its euro-zone slave states. The interest rate is already at .5% (one half of one percent) and will soon reach zero, at which point the ECB will be giving free money to its slave states. Therefore, in order to maintain the theft program called austerity, the ECB will withhold money from its slaves, in the name of “fiscal responsibility.”







Olli Rehn, the EU Economic and Monetary Affairs Commissioner, says France can have a little more time to keep expanding its austerity. German politicians pretend they don’t like this, since German voters are on the warpath, and will not stop until Germany has sucked the euro-zone dry. However France is not physically able to impose enough austerity to reach the level dictated by Germany (i.e. national debt = 3% of GDP).

Therefore German Finance Minister Wolfgang Schaeuble has agreed to give his little French poodle (French Finance Minister Pierre Moscovici) two more years to continue amassing debt, and imposing more austerity on the French people.  As a result,Mr. Moscovici told all France that the era of austerity is over.

“We’re witnessing the end of the dogma of austerity!”

Meanwhile French politicians defend the euro currency, so they can remain on the German payroll, which means that French austerity and debt will continue to skyrocket as never before.

So much for the “end of austerity.”

Amazingly, no matter how many hundreds of times the pro-austerity pundits are proven wrong (“Prosperity is just around the corner!”) their latest lies are always believed by the public.





Economist Glenn Hubbard, dean of Columbia Business School, will publish a new book on 21 May 2013.

Titled Balance, it claims that the USA is doomed unless its people submit to more austerity.  As proof, Mr. Hubbard relies on the now-disgraced Reinhart & Rogoff of Harvard U. (Hubbard has a Ph.D. from Harvard.)

Hubbard says whatever the rich and politicians want him to say. In his book Money, the Financial System, and the Economy, he wrote, “By the late 1990s, an emerging federal budget surplus put downward pressure on interest rates.”

This is garbage, of course, since the Fed sets its own interest rates regardless of the deficit or any market.  When Hubbard became chairman of the White House Council of Economic Advisors under George W. Bush, he reversed himself and correctly said there was “no link” between the deficit and interest rates. He also provided rhetoric that legitimized Bush’s deficit spending on the wars.


Now Hubbard has reversed himself again, and is back to preaching austerity, using Reinhart and Rogoff as “proof.”






Today was the annual Pete Peterson Summit in Washington DC, titled “Disgracing Facing the Future.”

There Bill Gates said the rich should pay more taxes to reduce the deficit.

He and Warren Buffet spout this crap in order to sustain the lie that the US government needs tax revenue, and that the deficit should be reduced.

In this way they widen the gap between themselves and us.

Gates said, “There’s no doubt that as you look at balancing budgets to the degree you need more revenue” that lawmakers will need to look to the wealthy “to get a little bit more from them proportionately than you get from people as a whole.”

In calling for taxes on the rich, Gates is calling for austerity.   But later in his speech, Gates questions austerity by saying the sequesters are compromising America’s “values.”

No wonder the peasants are confused.



At that same Pete Peterson Fiscal Summit today, former US President Bill Clinton said “I think Paul Krugman’s right in the short run, and Pete Peterson and Simpson-Bowles and all those guys, everybody’s right in the long run. The question is timing.”


Clinton said, “It’s obvious that if you overdo austerity, you get Europe.”

That’s true, but it conceals the fact that Europe has austerity because of the euro currency, while the USA has austerity because the rich will it.

Clinton spoke against the NON-EXISTENT problem of the national debt, warning that if interest rates spiked unexpectedly, the resulting increase in debt costs would “make the sequester look like a Sunday afternoon walk in the park.”

Clinton should tell Fed chairman Bernanke, “Please don’t increase the overnight rate, or the interest rate for Treasuries.”

The Fed chooses its own rates, regardless of “the markets.” There will never be any “interest rate spike” unless the Fed and / or politicians will it.





The more we have austerity (i.e. federal deficit reduction) the more we have poverty and unemployment.

The editors of USA Today want more austerity.

“Here’s some good news coming out of Washington for a change: The federal government’s massive budget deficit is shrinking rapidly. From a peak of $1.4 trillion in 2009, the deficit is forecast to drop to $845 billion this year and to $430 billion in 2015, says the Congressional Budget Office (CBO). During the three months that end June 30, the federal government is expected to run a quarterly surplus for the first time in six years.”

“The deficit, though lower, remains too high. The government is still borrowing nearly 25 cents of every dollar it spends, something it should do only during a crisis.”

There’s more, but you get the idea. The article praises the Simpson-Bowles Budget, (aka Project Perpetual Poverty).





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