21 May 2013


wa-poThe austerians continue to flop about, desperately trying to recover legitimacy. The clown above says austerity is good because, “Deficit spending is very easy to turn on and very hard to turn off.”

Nonsense. The public is so brainwashed about the non-existent “debt crisis” that politicians easily get away with imposing more and more austerity. That’s why the deficit keeps plunging, and the depression keeps worsening.

The author also says austerity is good because:

“Spending programs create dependent constituencies, which lobby for them long after the initial crisis has passed. And vote-seeking politicians oblige, usually neglecting to raise the corresponding, but unpopular, taxes.”

There it is again, the endless LIE that the federal government needs tax revenue.

Then the author moans about the longevity of the mortgage interest deduction, the FHA, and farm support (which includes food stamps). The self-righteous little bastard thinks everyone but the rich has a moral duty to suffer. He says that stimulus spending causes unemployment. (!!!)

Persistent unemployment shrinks the economy’s capacity to grow, and to create jobs, but the same result comes from persistent mis-allocation of resources through outmoded but politically untouchable government programs.

Then the creep says:

The Achilles’ heel of Krugmanomics is that politicians cannot be trusted to manage the economy as Keynes prescribed. In the name of fighting unemployment today, they lay the basis for more of it tomorrow.

Solution: let the politicians destroy the economy by imposing more austerity (always more). More foreclosures, unemployment, suicides, poverty, and hunger.

For self-righteous indifference to the mass suffering caused by austerity, this author, Charles Lane, is hereby awarded full certification…

charles lane






On 13 May 2013, US Representative Mike Fitzpatrick (Republican – Pennsylvania) told an auditorium full of eighth graders (ages 13 and 14) that the US federal government has a “debt crisis.”

“If no changes are made, the government won’t be able to stay in business.”

Total lies. Not only is there no federal debt crisis; the US government is not a business, since it never needs to borrow, or gain a profit, or save money. The federal government creates as much money as it wants, simply by changing the numbers in computerized bank accounts.

Fitzpatrick said the country can start digging out of a $16.8 trillion debt if lawmakers compromise on responsible revenue generators, including taxes, while reducing wasteful spending and getting more Americans back to work.

There is no need to “dig out of the debt,” since the Fed could pay off the national assets “debt” at any time, simply by changing numbers in accounts. If Fitzpatrick is worried about the national assets “debt” (i.e. the number of T-securities sold), then Fitzpatrick should tell the Treasury to stop selling securities. The Treasury sells them by choice, not necessity.


“Not many wake up in the morning and say, ‘How can I reach across the aisle,’ “ he said of his colleagues on Capitol Hill.

Bullshit! Both Republicans and Democrats are paid by the same rich bastards to promote austerity for average Americans. Republicans do it by cutting social programs. Democrats do it by raising taxes on the middle and lower classes.

Fitzpatrick is working on a bill called The Government Waste Reduction Act, which would mandate that federal agencies cut travel budgets in half, in part by utilizing more teleconferences. That, he said, could save $5 billion annually.

Great. Fitzpatrick wants to suck $5 billion per year out of the US economy. And again, the federal government does not need to “save money.”


With a PowerPoint presentation, Fitzpatrick showed the students that 47 percent of the country’s debt in 2010 was owed to foreign countries, up from 5 percent in 1970 and 19 percent in 1990. He also said 62 percent of the nation’s 2010 budget was made up of “auto-pilot spending,” and that will rise to 76 percent in 2040.

So what? Explain why this is supposedly a “problem.”

Auto-pilot spending, he explained, comprises budgets for Social Security, Medicare, Medicaid and Veterans Administration health care.

Which means that Republicans like Fitzpatrick can’t use the “debt ceiling” charade to hold a gun to the heads of seniors and disabled children.

He said auto-pilot spending results in cuts to discretionary funding including border security, education, road repairs and military defense, which he called “the most fundamental responsibility of government.”



Fitzpatrick showed a photo of Democratic President Barack Obama along with a quote he made as a senator that started with, “We can not afford to mortgage our children’s future on a mountain of debt.”

“Yet we keep on spending and spending,” Fitzpatrick said.

Yes, spending on things like Social Security for disabled children. Can you believe this asshole?

And this is scary: It was history teacher Joe Fabrizio who asked Fitzpatrick to come and vomit his sewage in the faces of 13 and 14 year-olds. Fabrizio says the kids understand the “national debt crisis” more than their parents!


Who will Fabrizio invite next? The Koch brothers? Pete Peterson? Paul Ryan?




The purpose of austerity is to widen the gap between the rich and the rest. Period.

Many people cannot admit this. For example, author Mark Blyth fills 304 pages with empty chatter about the “historical sources” of austerity.

“It’s a kind of chronic condition of American capitalism, with the actual policy implications arising sporadically and sometimes inexplicably.”

The rich always seek to widen the gap between themselves and the commoners. And this is news? It takes 304 pages to say that?

Blyth says that austerity is a manifestation of a, “deeply held fear of government.”

(WTF??!!! You can see why his book got stamped above.)

Naturally he does not understand how US finances work, nor does he understand the differences between governments that have Monetary Sovereignty, and those that don’t.

“The best cure for debt is growth. You grow: you’re in good shape. You cut: you end up with more debt. Ask the Greeks, the Baltics, and the Portuguese. Every single one of them has more debt now than when they started austerity policies, not less.”

Yes, because the euro-zone nations surrendered their Monetary Sovereignty when they adopted the euro currency. They can no longer create their own money. They must borrow all their money. Hence they will go deeper into debt forever and ever.

By contrast, the USA creates money by changing the numbers in bank accounts. For the USA, the “federal debt” is trivial, and can be paid off at any time. And the “debt” is an asset, since it merely represents the amount of T-securities sold.


Blyth (the idiot) thinks that austerity continues because politicians are like gamblers who continually lose money, but continually remain at the gaming table, hoping to win the money back.


Euro-zone politicians impose more austerity because the euro currency leaves them no choice. US politicians push austerity because the rich pay them to.

I don’t know what Mr. Blyth hoped to accomplish with his book, but it won’t make the slightest dent in austerity mania.



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