4 June 2013


Faux News claims that Europe has had no austerity at all. Presumably those millions of protesters across the euro-zone are making it all up.

From the Faux News web site:

The pushers of more “stimulus” say that Europe’s stagnant economies prove that budget cuts don’t work. Headlines announce: “Austerity Has Failed in Europe.” But wait. How much has Europe actually cut? I’m thankful for this chart from Mercatus Center economist Veronique De Rugy:


Well, that certainly proves it! (Not.) I don’t know what the above chart is supposed to show. Perhaps Ms. de Rugy is trying to use it to claim that European governments are actually increasing their spending. If so, she gives no sources or proof for this. (Indeed she never gives proof in any of her articles. When she gives references, it is to other items that she herself had previously written.)

Whatever the chart shows, we know it is “fair and balanced,” because Veronique De Rugy is associated with the Mercatus Center in Arlington VA, one of the many pro-austerity propaganda mills bankrolled by the Koch brothers, plus Pete Peterson, ExxonMobil, and so on. About 18 people loosely associated with the center accept money to sit at home and type blog posts that champion austerity and the wealth gap — e.g. Reforming Social Security to Better Promote Retirement Security, dated 23 May 2013. Politicians then use this garbage to justify austerity.

Veronique De Rugy is originally from France, which supposedly makes her “sophisticated” (????) and she frequently writes articles about the (non-existent) “federal debt crisis.”

Veronique De Rugy

In this article  she claims that government spending causes the economy to contract. (!!!)

In this article dated 30 May 2013, she calls euro-zone governments “spend-a-holics.” She says they have had no austerity at all.

Austerity can be achieved by cutting spending or by raising taxes, or a mix of both. Most countries implemented spending cuts in name only, and these cuts were often overwhelmed by much larger tax increases.

Got that? Tax increases are austerity, and since euro-zone nations have had tax increases, they have not had austerity. Flawless logic, aye? And this person supposedly has a Ph.D. in economics.

Returning to the Faux News item, the commentator says this:

NO real cuts! Europe would do better if they did cut government and let citizens spend their own money. They’d spend it more wisely. Milton Friedman put it best: “Nobody spends somebody else’s money as wisely as he spends his own.”

Presumably he means he doesn’t like it that government taxes people, and spends the tax money. I could tell this joker that the federal government has no need or use for tax revenue, and does not even collect revenue, but he wouldn’t listen.





Ten years ago this week, the British government formally decided not to submit to the euro scam being perpetrated by Troika bankers and Germany.

Prime Minister Tony Bair wanted to impose the euro on the U.K., as did many people who fancied themselves “sophisticated.” They believed the Troika / German lie that the euro currency would make Europe into one big happy family, in which everyone was an equal.

However Gordon Brown (Blair’s Finance Minister) and the City of London were not seduced, and the UK remained Monetarily Sovereign. Four years later, Gordon Brown became Prime Minister.

In May 2010, David Cameron became Prime Minister, and embarked on a program of gratuitous austerity every bit as savage as the mandatory austerity caused by the euro currency.

Today it is socially acceptable to be a euro-skeptic, but not among Latvia’s politicians, who are eager to get on the Troika payroll and reduce their citizens to  slaves.

Tomorrow (5 June 2013) the eurocrats in Brussels will recommend that Latvia be allowed to join the club on 1 Jan 2014.

Latvian banks have about 12.8 billion lats in total deposits (USD $22.4 billion, or 31.4 billion euros, or 26.8 billion British pounds). Of that, 49% (6.3 billion lats) is foreign deposits, almost entirely from ex-Soviet states, including Russia.

With the Latvian government’s insistence on adopting the euro, you can be sure that any foreigner who can get his or her money out of Latvia is doing so. No one will ever forget the Cyprus heist

The lat has been pegged to the euro since 2005, but this is not the same as the total surrender of Monetary Sovereignty, in which Latvia will have to borrow all its money. Neighboring Estonia already surrendered on 1 Jan 2011.

Latvia’s two million people don’t want the euro, but they don’t count. At the municipal level, in the capital of Riga, political parties who oppose the euro took most of the votes in local elections Saturday, but politicians at the national level will go ahead with their scheme.

Public transportation in Riga is free. This will end when Latvia adopts the euro. Like every other euro-zone country outside Germany, Latvia will enter a death spiral of debt and austerity — but the national politicians will live in splendor.



Predictions of the US dollar’s imminent “collapse” are almost as common as warnings that the US government’s (non-existent) “debt crisis” is about to destroy us.

Let’s examine this further — but first, in the image above, I put a red circle around the part that says, “This is not worth anything, just like real U.S. currency.”

Not worth anything?  No one accepts dollars as payment anymore? This is the kind of muddled thinking involved.

Anyway, many people are fond of imagining that the U.S. monetary system is about to experience hyperinflation, followed by a “collapse.”  “Gold traders” spend their entire lives making this claim.  I put “gold traders” in scare quotes, because very few of them have anything to do with gold.  Instead, they run “exchanges” in which the things traded are pieces of paper that have no connection to gold, and which only have value within the exchange. What’s traded are “shares” in the gold exchange, which itself is a chimera. The hucksters get you to buy these “shares” by falsly claiming that the “shares” are connected to gold, and that the U.S. monetary system is about to collapse, but your “shares” in the “gold exchange” will continue to have monetary value. Indeed, the only way these hucksters can maintain their scam is to continually claim ( for decades) that the US monetary system is “about to collapse.” The trading value of their “shares” is determined by the current condition of the gold exchange’s speculative bubble.

It’s a phony scam, and yet gold hucksters claim that their gold certificates (their worthless baseball cards) have “real value,” whereas dollars do not.

The two books below are examples…


These books  say you should make that sure that some of your savings are in antiques, collectibles, stored food, or gold.  (Of those, the only thing that would have any value if the money ststem collapsed would be food.)  The book on the right was written by a gold trader who has spent the last 30 years claming that the USA is about to experience hyperinflation. Mr. Smith started his “Swiss America Trading Corporation” in 1982 out of a bedroom in his home with $50.00. This is a “gold exchange” in which (again) the thing traded is not gold, but pieces of paper with no connection to gold.

His scam got a bost from Obama, because when gold traders falsely claim that Obama is a “socialist,” they do it to play on their clients’ racism. To call Obama a “socialist” is a way for bigoted racists and Tea Party types to say, “Protect yourself from that Muslim nigger. Buy certificates in my gold exchange. Give me your money.” Indeed, 99.9 % of Mr. Smith’s book is a tirade against Obama, democrats, and leftists in general.

The hucksterism of gold trades and racist imbeciles is so widespread in society that we frequently see images like those below…




The only way the U.S. dollar will “collapse” is if the US governent and society collapse, in which case the “shares” in gold exchanges will become utterly worthless. Even physical gold will be worthless, unless foreign money systems survive. It is digital monetary systems that give value to gold, not vice-versa.  (“Gold traders” want you to think the reverse is true.)

Incidentlly, eight nations outside the USA use the US dollar as their official currency. So does the British Virgin Islands and Caribbean Netherlands.  Ten other countries use the US dollar alongside other currencies. If the USA collapsed, they would all adopt some different currency. The “dollar” is simply a system, and it is not the only system. Countries like Ecudaor use the US dollar as a mere convenience.




One Response to 4 June 2013

  1. Steve says:

    Lying hag de Rugy bases her assumptions about fiscal consolidation working from debt hawk darling Alberto Alsina (Harvard ass-wipe, of course). One economist, Anis Chowdhury, The University of Western Sydney, Australia , EASILY debunks Alsina’s “studies” showing that fiscal consolidation in the long run, NEVER WORKS. Alsina admits to it only working 25% of the time in his research, anyway! Of course this “study” by this cherry picker creep Alsina, leaves out several variables that are just as likely to lead to economic growth, (at least on a short term basis). Left out in Alsina’s cook-the-books research includes the following variables:
    (1) the influence of the global and regional business cycle, (2) monetary policy, (3) exchange rate policy and (4) structural reforms. The actual number of variables probably greatly exceeds just those four. Both de Rugy and Alsina, major lying shitbags.

    More info: http://www.voxeu.org/debates/commentaries/revisiting-evidence-expansionary-fiscal-austerity-alesina-s-hour

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