9 May 2013




Irish media morons have never been stingy about serving up rich, frosty mugs of golden bullshit.  In the above article we read:

“Many austerity critics tend to claim the high moral ground, stressing the human costs of the deep recession. However, the practical issue is whether better alternatives exist.”

The better alternative is to dump the euro currency, and recover Monetary Sovereignty: the ultimate power that any government can have.

 “While Ireland’s budget deficit has fallen from about 12 per cent of GDP in 2009, it still remains very high, at about 7.5 per cent. As a matter of arithmetic, every euro of a budget deficit implies a corresponding increase in public indebtedness.”

Yes, because Ireland must borrow all its money. Ireland would not have to borrow if it dumped the euro currency. Ireland could once again create its own money. However, Irish politicians can’t dump the euro currency, since they are on the payroll of Troika bankers and Germany. If they dump the euro currency, then they will have to campaign for votes, like US politicians. Hence, there is no alterative (TINA) but to have more austerity. (Always more.)

“Assuming continuation of the current austerity plan, even with some pick-up in growth, Ireland’s debt is likely to exceed 120 per cent of GDP in 2015.”

Yup. Ireland is in a death spiral. Debt leads to austerity, which leads to more debt, which leads to more austerity.

Irish politicians could not stop this even if they wanted to.






The G7 is a group of finance ministers from the U.S., U.K., France, Germany, Italy, Canada and Japan.

Tomorrow and Saturday (10 & 11 May) will be the G7 conference at a mansion in Buckinghamshire, a county south of London that is home to the Pinewood movie studios.

The bullshit will fly in all directions, all of it meaningless.

US officials will call on Berlin to relax its brutal austerity demands, and to stop opposing the proposed banking union across the euro-zone. Germans officials will change the subject. They use austerity and the lack of a banking union to enslave the other euro-zone nations. Why stop now?

A senior US Treasury official said, “Strengthening European demand is the most important immediate imperative in reviving growth in the advanced economies and thereby global growth.”

But there can be no strengthening of European demand while there is austerity, and there can be no end to austerity while the euro-zone continues to use the euro, issued by Germany.

The USA wants Germany to increase its domestic demand, i.e. lower Germany’s trade surplus with Germany’s slaves. Germany refuses. Why ruin a good thing?

German finance minister Wolfgang Schäuble says it must be the priority for governments to reduce their borrowing to regain confidence.

But they cannot reduce their borrowing as long as they have austerity, and they cannot end austerity as long as they must borrow all their money from Germany.

Schäuble says austerity is prosperity. (And it is indeed prosperity….for Germany.) He says austerity means that, “A recovery is gathering pace. Even Greece is achieving remarkable success.”

Absolute bullshit.

Meanwhile the masses have no clue why austerity continues to get worse all the time.






Jim Flaherty, Canada’s finance minister, today warned that there were signs that officials were “pulling back” on their commitment to austerity. Flaherty cautioned that this was a worrying development. He said global policy makers must resist pressure to ease up.

“What I worry about is those that suggest that austerity should be abandoned. I think that’s the road to ruin. As a finance minister, the sine qua non is sound fiscal and economic policy. Without that there will be a reckoning. It’s just a question of when.”

Austerity is ruining nations. To stop this ruin, we must have more austerity.





Slovenia uses the euro currency, and is therefore being crushed by a depression. Solution? Worsen the depression by imposing a new tax of over a half-billion euros.

The small Alpine country was a model of socialist economy until 2008, when the Troika and Germany bribed Slovenia’s politicians to drop the tolar, and use the euro. Slovenia’s economy has been plunging ever since. Solution? Redouble Slovenia’s commitment to the euro.

Austerity is not only about widening the wealth gap. It is about mass privatization. That is, selling off public assets to rich people at fire sale prices, so that the rich can directly rob the masses. And sure enough, in addition to the hiking Slovenia’s sales tax from 20% to 22%, politicians will privatize 15 state-run companies, including Slovenia’s second-largest bank (Nova Kreditna Banka Maribor), communications operator Telekom Slovenija, airline Adria Airways, Ljubljana airport and Elan ski manufacturer.

If the people of Slovenia think they are suffering now, they haven’t seen anything yet.

The austerity plan must be approved by Slovenia’s masters (the EC in Brussels and the Germans in Frankfurt).

At the center of Slovenia’s crisis are five state-controlled banks which have an estimated seven billion euros of bad loans on their books. Like other banks in the euro-zone, they took the advice of Troika bankers and invested in the sovereign bonds of other euro-zone nations, naively thinking the Troika would bail them all out if anything went wrong. But it was a scam. The Troika had planned to enslave them all along.

Slovenia’s politicians say the new austerity measures are needed in order to avoid the fate of Cypress. However Slovenia will be ruined anyway, since Slovenia will keep falling into debt, which will require more austerity, which will require more debt, and more austerity. Meanwhile the wealth gap between rich and poor in Slovenia will grow wider than ever. It is inevitable.

This is what happens when politicians surrender a nation’s ability to create its own money.




From the NYT

Private-sector and government economists all say the USA would have less unemployment if it had less austerity.

“The consensus is clear: Immediate deficit reduction is a drag on full economic recovery.”

Actually deficit reduction of any kind causes recessions and depressions.

The NYT says that government analysts, macroeconomists, and financial forecasters all agree that “things would be better” without austerity (i.e. tax increases and spending cuts).

Austerity kicked into high gear in January 2011 when Republics took control of the House, and threatened to impose massive spending cuts. Obama countered them by imposing even larger cuts. And both parties favored the increase in the FICA tax, which does not pay for Medicare of Social Security. (FICA tax revenue is destroyed upon receipt.)

Knowing that austerity causes destruction and poverty, Obama last week at a news conference said, “The only way the problem does get fixed is if both parties sit down and say, ‘How are we going to make sure that we’re imposing austerity sensibly?”

Obama said austerity causes “self-inflicted wounds.”

Solution? More austerity.



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