1 June 2013

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What if you want to claim that 1+1=3, but you can no longer use Reinhart and Rogoff’s lies? What do you do?

Simple.

Just claim that 1+1 equals 3. Period. You don’t need any proof, evidence, or explanation.

From the item above:

The latest economic data for the United States is encouraging. The budget deficit is declining, consumer spending is picking up and the government is collecting more in taxes.

As proof that “consumer spending is picking up,” the article offers…nothing.

http://www.pri.org/stories/politics-society/government/latest-figures-say-u-s-deficit-declining-economy-improving-13955.html

By the way, the article claims that the US government is “collecting more tax revenue.”

Whenever someone says the U.S. government is “collecting more revenue,” or “receiving income,” or is, “saving money,” he is LYING.

Let’s go through this yet again…

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Hence the US government has no need or use for tax revenue. I have said that federal tax revenue is destroyed upon recipt, but even this is not correct.  Federal tax revenue is destroyed by the act of paying it, as we just saw with the $1,000.

Still, if you want to contribute  money to “pay down the national debt” (money that will be instantly destroyed without “paying down” anything), you can send a check to the Bureau of the Public Debt. Or you can use a debit or credit card, or you can sign up for automatic debit from your checking or savings account.  All options work, since money is all digital. (And therefore inexhastible, but shshhhh — don’t tell anyone).

The web site below (part of the US Treasury web site) gives instructions on how you can throw your money down the toilet.

http://www.treasurydirect.gov/govt/resources/faq/faq_publicdebt.htm#DebtFinance

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On a different note, one right-wing pro-austerity blogger says the federal deficit is not falling.

Karl Denninger (sometimes called the “founder of the Tea Party movement”) says that according to the April 30, 2013, edition of the Monthly Treasury Statement (MTS) which covers October 2012 through April 2013, tax receipts have totaled $1.603 trillion so far, versus $2.090 trillion in outlays, producing a current budget deficit of $487 billion.

That is $232 billion less than the same period in FY 2012.

So the deficit is falling, yes?

Denninger says no, the Treasury’s projections for the second half of FY 2013 (April 2013 – 30 September 2013) show additional tax receipts of $1.108 trillion vs. additional spending of $1.594 trillion, for total FY tax revenues of $2.712 trillion, total spending of $3.684 trillion, and a total deficit of $972.9 billion.

I don’t know if Denninger is correct, but if he is, it’s good news.

(Denninger thinks it’s bad news, since he loves austerity).

http://www.allgov.com/news/where-is-the-money-going/despite-administration-claims-federal-deficit-is-not-falling-130527?news=850133

“Left wing” author Nomi Prins agrees with Mr. Denninger.  Ms. Prins is considered an “expert” in finances, when in fact she is a moron who favors austerity.

If it’s too good to be true, it probably isn’t. Most of the media bought the notion that somehow the deficit had magically halved to $682 billion from around $1.1 trillion last year, based on not even examining the Treasury Department’s own reports before promoting that gleeful and surreal conclusion.

Gleeful? Try horrendous. Austerity kills, bitch!

She goes on to claim that, “Social Security and Medicare are almost $90 billion in the hole this year already.”

You get the idea. Her lengthy article is full of errors, plus meaningless mumbo-jumbo. (Social Security can neither be “in the hole,” nor “in surplus.” All money is digital, remember? If a football scoreboard lists five points instead of seven points, then is the scoreboard two points “in the hole”?????)

The point is that the austerians have brainwashed almost everyone, right and left, socialist and capitalist.

http://www.alternet.org/economy/everything-you-heard-about-deficit-falling-wrong?paging=off

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IS AUSTERITY “OVER” IN EUROPE?

Spending cuts and tax increases are two aspects of austerity.

Other aspects include “structural reforms” (i.e. the destruction of social programs and of protections for workers).

If we do not understand this, then we are apt to have the delusion that “austerity is over,” when in fact there is more austerity than ever.

European delusion

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THE DEPRESSION WILL GET MUCH WORSE

Blogger Joe Firestone assembled the chart below, and I think it is accurate, based on my own knowledge.

It shows the federal deficit that will result from five different budget proposals, all of which seek much more austerityThe US House proposal is harsher than the others because the House is ruled by Republicans.

The CPC (Congressional “Progressive” Caucus) calls theirs a “back to work” budget — yet they too want more austerity, which will destroy more jobs.

For fiscal year 2017 the proposals average out to federal a deficit of 1.7% of GDP – or $255 billion (assuming a GDP of $15 trillion).

Since the US economy loses $420 billion per year from its trade deficit, this will mean a federal surplus of $165 billion by 2017.

This will be a catastrophe – but it’s what  all politicians want to see happen.

It’s also what the average American wants (as long as austerity only hurts someone else, not him).

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The American Enterprise Institute is an ultra-right-wing, pro-austerity propaganda mill in Washington DC.

A blog post at its web site says, “After a period of pushback, proponents of austerity are retaking the intellectual high ground and promoting responsible budgeting throughout the developed world.”

“Responsible budgeting” means that those who promote famine and genocide are morally “superior.” (And yes, austerity is genocide. Statistically it kills more people than wars and natural disasters. Anyone who thinks this is an exaggeration is either a liar or a fool.)

The article says that Reinhart and Rogoff have, “Begun to allow the advocates of fiscal responsibility in Europe and the United States to gain the upper hand.”

Actually the austerians never lost the upper hand, since politicians in most nations continue to serve the rich by imposing austerity on the masses.

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The AEI article basically says that might makes right. Austerity is “morally justified,” and has the “intellectual high ground” because politicians continue to impose it.

The Germans aren’t backing down on austerity.

Indeed not, since Germany is using austerity to suck the rest of the euro-zone dry.

Finally, as the American Enterprise Institute’s James Pethokoukis has pointed out, the U.S. economy has outperformed Europe’s despite our predilection for even more austerity than our continental friends. Sure enough, as government spending falls and the private sector picks up the slack, our economy has slowly begun to take flight.

First of all, the euro-zone is in a severe depression because of the euro currency, as I have repeatedly explained in past blog posts. Second, the US economy is NOT “taking flight,” any more than the era of austerity is “over” in the euro-zone.

http://www.american.com/archive/2013/may/austerity-and-its-discontents

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No, Krugman clown. I shall correct you.

Recessions are part of the business cycle, which itself is a reflection of the private debt cycle. When the economy is strong, businesses take loans, and they gamble with leverage, thereby building up debt and a speculative bubble (which is essentially a Ponzi scheme).  When the speculative bubble pops, business recoil under their own debt load, banks stop lending, and the economy goes into recession.

At that point, the government can offset the recession’s effects by increasing government spending.

If, however, the government does not increase its spending, then the recession continues until there is another speculative bubble, which may not be for years or decades.

Therefore, contrary to the Krugman clown, in nations whose governments create their own money (like the USA), recessions are normal, but brutal and prolonged recessions are ALWAYS GRATUITOUS. NO EXCEPTIONS.

They are not “technical malfunctions.” They are maintained by politicians in service to the rich and the financial class.

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