20 May 2013






From the NY Times:

Olli Rehn, the European Union’s top economic policy maker, is fed up with a being tarred with the term “austerity,” which, he says, “is clearly used to label somebody as an unworthy person who is almost eating children.”

If you don’t like it, don’t encourage it. Austerity is genocide, you asshole.

With unemployment continuing to explode across the euro-zone, Mr. Rehn has become a lightning rod for swelling anger across Europe against austerity.

But Rehn describes himself as a “doctrinaire agnostic in terms of economic policy” who has read and found much of value in the writings of the British economist John Maynard Keynes, whose name is synonymous with the idea of economic stimulus in times of crisis.

“Hey, I’m not such a bad guy. I’ve read Keynes.”

Actually, Keynes only applies to nations that still have Monetary Sovereignty, unlike the euro-zone nations, where all “stimulus” and “bail-outs” are debt bombs.

And as far as being a “doctrinaire agnostic,” Rhen spoke truthfully. There is no economic theory behind the common currency euro-scam. There is only  the scam. Period.


Rehn says that France’s problem is its flagging ability to compete. France enacted legislation this week to slightly loosen notoriously rigid employment rules, and Mr. Rehn said he was “looking forward to the reforms that they will continue to work on,” particularly to the country’s labor market and pension system.

Yes, one purpose for austerity is to remove “notoriously rigid” protections for workers, so that owners may better exploit them. The goal is to reduce the euro-zone to a wasteland in which half of the people are unemployed, and the other half toil in nightmarish sweatshops. This is Mr. Rehn’s hellish utopia.


The politicians of Latvia, Estonia and Lithuania want to impose the euro currency on their peoples, so that the politicians can get personally on the Troika payroll. Mr. Rehn says they are making austerity work:

The progress that have made in repairing their economies through tough austerity programs shows that fiscal consolidation can work, he said, but does not offer a template for others. “You can never apply the experiences of one country to another.”

Nor can you apply the currency of one country to another, unless you want to cause destruction, as we are seeing.


Mr. Rehn built his career by shilling for the rich, and by championing the euro currency scam. He has a degree from Macalester College in Minnesota and the University of Helsinki and a doctorate from Oxford. Enough to make him a fully rounded asshole. When asked why he had totally relied on Reingart and Rogoff  — the Harvard clowns who lied – Rehn says, “We don’t base our economic policy on a single piece of research.”


Rehn is from Finland, which formally adopted the euro on the same day that Germany did (28 Feb 2002). But whereas Germany has used its huge trade surplus and the euro currency to get rich at the expense of the other euro-nations, Finland has not done as well. In June 2011, because of the euro, imports exceeded exports for the first time in 20 years, with the trade deficit at3.6 billion euros. (The corporate media claims that the cause was not the euro, but rising energy prices.) Finland exports metal, machinery, cell phones (e.g. Nokia), and chemicals, but because Germany holds the euro purse strings, Germany can undercut Finland, and push the Finns out of their traditional markets.

austerity hollow

Finland now claims to have a trade surplus (all governments lie about their economies) but many sources say no, Finland still has a trade deficit. And that means a depression, since Finland must borrow its money from the Troika. The Nokia company’s stock has fallen dramatically, and another pillar of the Finnish economy is in serious trouble: the paper industry, which employs some 40,000 people.

Nonetheless, average Finns remain loyal to the euro scam, because they enjoy hearing lies that Greek, Portuguese, Italians, and Spaniards are lazy parasites. Average Finns want southern Europeans to suffer even more. 






The Eurovision song contest has been held once a year since 1956. Today, broadcasters from 39 nations enter songs from their respective nations, and compete for first place. It has always been a highly political affair. That is, judges and televoters allocate points based on their nation’s relationship to the other countries, rather than the musical merits of the songs.

This year the contest took place in Malmö, Sweden from 14 to 18 May 2013, and was watched by 125 million people across Europe, including 8 million Germans. The winning song was “Only Teardrops” sung by Emmelie de Forest of Denmark, which finished first with 281 points.

Germany got no points at all. Reason: Europeans are tired of austerity and German bullying.

Inside Germany, Angela Merkel is wildly popular. Outside Germany, she is despised.






In Monetarily Sovereign nations like the USA, the purpose of austerity is to crush the middle and lower classes by removing money from general circulation. Republicans like to do this via spending cuts, whereas Democrats favors tax increases. Either way, average Americans are screwed.

Federal taxes remove money from the economy and destroy it. When your bank account is debited (reduced) to pay taxes, that money vanishes.

Most people cannot grasp this. They think that money is physical, and moves around like a physical object. But it doesn’t. When your account is debited, the previous numbers simply cease to be. Hence the US government has no need or use for tax revenue, and in fact destroys the revenue the instant it is paid. Watch it in action…


Now watch how Democrats screw the masses while pretending to help them…

On 14 March 2013, Senator Tom Harkin (D-Iowa) introduced S. 567: Strengthening Social Security Act of 2013, which would increase the typical Social Security benefit by roughly $800 per year. That sounds great, but the bill would also remove the tax cap that currently exempts income above $113,000 per year from the FICA tax.

This would suck money back out of the economy, and destroy it.

Net result of S. 567: austerity. The rich get richer, and the poor get poorer. This is all by design.

The rich pay no taxes anyway, and if they did, it would hurt the economy all the more. It would be better to eliminate federal taxes altogether. The US federal government does not need or use tax revenue.



According to the book at right, Japan never had a “lost decade.” It was a lie fabricated by the Japanese government to stroke the fragile American ego.

During the 1980s and 1990s, Japan’s booming export trade in automobiles and other products made Americans panic. Ridley Scott’s 1982 film “Bladerunner” depicted an America ruled by Japanese financiers. Michael Crichton’s 1992 novel “Rising Sun” did the same (plus the 1993 movie adaptation).

However, Irish author Eamonn Fingleton says the Japanese Finance Ministry issued false statistics, in order to show that Japan was “insolvent.” Meanwhile Japanese exports increased by 73%, foreign assets increased, and electricity use increased by 30%, signifying a flourishing industrial sector. By 2006, Japan’s exports were three times what they were in 1989.

And yet, US bankers, politicians, and media shills continue to exploit Japan’s lie, in order to justify austerity.

Japan (like the USA) issues its own currency. Therefore Japan (like the USA) has no trouble paying its “debts.” Despite having a Debt/GDP ratio of 230%, the highest of any major country in the world, Japan remains the world’s largest creditor country, with $3.19 trillion in net foreign assets (the amount of foreign government securities that Japan has purchased).

In 2010, Japan’s GDP per capita was more than that of France, Germany, the U.K. and Italy. And while China’s economy is now larger than Japan’s (because China population is ten times larger than Japan’s) Japan’s GDP per capita ($45,920) is 8.5 times higher than China’s ($5,414).

In an April 2012 Forbes article titled ‘If Japan Is Broke, How Is It Bailing Out Europe?,’ Eamonn Fingleton notes that the Japanese government was by far the largest single non-eurozone contributor to the latest Euro rescue effort.

This is the same government that has been going round pretending to be bankrupt. Japan rescued the IMF system virtually single-handedly at the height of the global panic in 2009. How can a nation whose government is supposedly the most over-borrowed in the advanced world afford such generosity? The answer is that Japan’s true public finances are far stronger than the Western media claims. Clearly the Japanese Ministry of Finance is one of the most opaque in the world.” 

All Treasuries and Ministries of Finance are opaque. They all lie.

By the way, when we say that Japan’s debt-to-GDP ratio is 230%, we mean that 53.5% of the money that Japan creates on its computer keyboard (out of thin air) is paid to the Japanese holders of Japanese government securities. It’s a kind of Social Security system. Japan pays itself. I would almost call the Japanese clever, if they hadn’t put hundreds of nuclear plants in a volcanic zone of frequent earthquakes.



The following is apocryphal, but it might as well be true.

Marriner Eccles was the Federal Reserve Chairman from 1934-1948. He saw the 1930s Depression and WW II.

One web site claims that on 30 Sept 1941, Eccles testified before the House Committee on Banking and Currency.

Committee Chairman John Patman wanted Eccles to explain the Fed’s role in creating the 1930s depression, and explain where the Fed got the money to purchase two billion dollars worth of government bonds in 1933.


Source of alleged exchange:


I say it’s apocryphal (false) because John Patman did not become committee chairman until 24 years later (1965).

Nonetheless, the above item illustrates reality. Money is an asset, but it is also a debt. All money is both an asset and a debt. A debt is a claim on something.  Money is a claim to digital values in the banking computers.

A hundred-dollar-bill is a hundred-dollar asset, by virtue of it being a claim to a digital value in the banks’ computers. A claim is a debt. The system is in debt to me for a hundred dollars. However, if I take a hundred-dollar loan from the bank system, then I am a hundred dollars in debt to the system.

The masses have been brainwashed to think that all debt is bad, even though everyone is both a creditor and a debtor – although our places vary in the spectrum. Our entire monetary system consists of credits and debits. You can’t have one without the other. Therefore all money is debt (but it is also an asset). Rich people live on the credit extreme. Poor people live on the debtor extreme. If you have a penny in your hand, then you too are a creditor — although your overall debts may outweigh your credits.

What gives value to money is the credit of the Government, of society. That is, society’s willingness to believe that money has value. Money itself is merely a figure, which is a claim on goods or services. It is a symbol, a creation of the law. Money is not wealth, but the symbol that gives rights to wealth. Money is worthless without goods or services. Control of goods and services is wealth.

Many people insist that all money is lent by bankers. They will not budge from this idiocy. They ask why society should pay bankers for the use of society’s own money. They ask why the Government can’t issue its own money directly, without going through the banks.

They refuse to understand that banks are keepers of the digital system. Hence there can be no money without banks. Anything that is part of the digital system is automatically a bank.

Also they refuse to understand that when the Treasury orders your bank to credit (add to) your checking account by $1,000 for a Social Security benefit, this is not a loan from the bank. It is a direct credit from the government. That’s what government spending is. If the US government wants to spend a billion dollars, then the government orders the Fed or some other bank to credit accounts for a billion dollars. This is not a loan from the banks. It is an order from the government.

It’s common sense, but many people reject it. They ask why the US government can’t issue Civil War-style “greenbacks” directly. Again, they refuse to understand that all money is digital, and that banks are the keepers of the digital system. Thus, even “greenbacks” would be worthless without banks—but again, this does not mean that all money is issued as loans from banks. The truth is that money is created in three ways: bank loans, government spending, and (where applicable) a foreign trade surplus.

not listening

So if you ask, “Why can’t the government issue money directly, without going through banks?” the answer is: there is no money without banks. If we eliminated the Fed, then we would have to create another bank to replace it.

Some people ask it this way: “Why should a government with the power to create money give that power away to a private monopoly, and then borrow that which government can create itself, back at interest, to the point of national bankruptcy?”

This sounds good, but it’s utterly illogical. If the government obtained all its money as loans from banks (as many people wrongly think) then where would the government get the money to pay the loans? By taking new loans? That’s not how it works. The government spends by ordering banks to use their keyboards to credit accounts. That’s all there is to it.




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