The New Economics, Radical Solutions Required And Offered

Traditional economics does not work anymore. In the old days the government ran a deficit because consumers were spending less due to unemployment.The Federal government has run up a deficit totaling  4.2 trillion dollars in the past 36 months while creating only 300,000 jobs. That is 14 million dollars per job. It would be far cheaper to give each one of them a winning $2 million lottery ticket and recoup some of the losses by taxing them on their incomes. But then you couldn’t get big campaign donations from people who were given 500 million dollar contracts to think about making solar panels while they drink champagne on the taxpayers money.

There are serious problems beyond the inability of deficits to create jobs. Just In Time inventory and Globalization of production has made deficits incapable of solving our problems. American shipped 56,000 manufacturing plants and 12 million jobs overseas so a business is not going to invest into producing a product that China has been given a Green Light to monopolize. And Just In Time inventory means that businesses will not invest to expand when all they do is order from suppliers half way around the world.

Mario Draghi, the former head of Goldman Sachs Europe and currently head of the European Central Bank, has excited the stock markets of Europe with his nonsensical plan to have unlimited money printing to buy bonds of countries that comply with his Austerity demands. This is wrong on several counts.

The total sales of goods and services is called the Gross National Product (GNP). GNP = Consumption + Investment + Government spending or GNP = C + I + G. If you are an American congressman in 2013 when Christine Lagarde of the IMF tells you to immediately cut a trillion dollars from wasteful government spending on Food Stamps, unemployment insurance, education, Social Security and heath care, you can tell her this: If we cut a trillion dollars from G, to balance the equation we must also subtract a trillion dollars from GNP on the other side of that equals sign. And that is very bad as it is called a Contraction. One of our severest Depressions of the 19th century was called the Great  Contraction. And Depressions make us poorer so we cannot pay as many taxes which makes deficits bigger and not smaller. Austerity budgets in Europe have just dug a deeper hole.

Apart from Hyperinflation all Mr Draghi will accomplish with unlimited bond purchases is that he will get those bad government bonds off the books of his banking friends. It also signs taxpayers on to European bonds as opposed to national bonds. This is significant. There is not just one euro. There are 17 separate euro currencies. Greek euros are marked (with a Y in front of the serial number) to show their nation of origin so in case of collapse Greek euros are redeemable as drachmas and German euros (marked with an X) as Deutschmarks. That means if Syriza, the largest Greek political party opposed to the bankers, wins the next election and tries to default, they discover they can go back to the drachma but those ECB bonds Draghi bought from the Rothschild owned BNP Paribas bank will be paid off in euros and not drachmas. And it means that they cannot discharge their debts in Greek courts by declaring the debts to be odious and therefore null and void. Draghi is putting the Greeks on the hook for debts that cannot be cancelled and will double overnight if the Greeks try to pay euro denominated debts with drachmas.

Another Federal Reserve tactic that does not work anymore is lowering interest rates. The stated theory was that lowering rates will convince businessmen to invest in expanding their businesses. But today Ben Bernanke has loaned out more than 7 trillion dollars at 0.01%. The lower rates are there to keep asset prices of banker assets up as they did with the 30 trillion dollars in Bailouts. The money they created was deliberately to kept as far as possible from the unemployed. The Bailouts kept a bankrupt system running so the Banker Ponzi scheme could continue taking out money and giving it to New York and  London bankers so what of millions of us have to die. There are lots of Gentiles in the world.

A problem  must be stated before it can be solved. The problem of  modern economics was well stated by Professor Steve Keen of Australia. He directly correlated rising public and private debt to rising unemployment and declining wages. Hyman Minsky and the Austrian school pay attention to bank loans unlike the Keynesians. In a fractional reserve system a ten thousand dollar deposit can be turned into a $100,000 loan. Minsky and the Austrians (Ron Paul) believe that these loans distort reality and accumulate debts which contribute to an Unbearable and Unpayable Debt Burden.

A Depression is merely the long and drawn out process of canceling debts by either paying them off or by discharging them in bankruptcy courts. This is a painful and even deadly process. In the Great Depression of 1929-39 3 million Americans died from starvation. Professor Keen tells us that our debt levels today are twice what they were in the last Depression. That means we should have twice as much pain unless we cancel debt systematically. I might point out that America has grown form a 90% rural country of 125 million to a nation of 310 million mostly urban dwellers so the number who die of starvation will be at least 10 million if we do not act soon.

Two economists at the IMF published a paper entitled The Chicago Plan Revisited. Irving Fisher and 5 other economists delivered a paper on March 16, 1933 which IMF economists now say would immediately boost our economy 10%.. It would also eliminate bank runs as a ten thousand dollar withdrawal will not force the banker to call in a $100,000 loan. It would also reduce business cycle fluctuations. And it would reduce government debt. So what was Dr Fisher’s plan?

He wanted to eliminate fractional reserve banking . Government should be the sole creator of money. I would add that this money should be created without interest and spent into circulation as were President Lincoln’s Greenbacks. That would save us a trillion dollars a year in unnecessary interest payments on debts and in lower taxes to fund spending.

Fisher’s plan was also called the 100% money.

Bankers have been telling us lies for more than 700 years. They need to cover up the fact that fractional reserve banking is the source of our problems. The bankers of Venice had a gold standard AND fractional reserve banking as did America and England in 1929.  One lie is that fiat currencies always fail. Another banker lie.The Isle of Guernsey has had a fiat currency for more than a century. It did not fail because they do not allow fractional reserve banking. Singapore also does not allow it.

A few recommendations about Debt Cancellation.
I would favor passage of an Amendment that would make federal, state and local debt illegal. Tens of thousands of government agencies hold assets including bonds and stocks. The last time I looked the new York Port Authority had a trillion dollars in assets as did the New Jersey Turnpike Authority. There is enough money there and in the tens of thousands of other agencies to pay off our 20 trillion dollars in federal, state and local bonds and to fund civil service pensions.

Steve Keen wants to cancel $20,000 of every adult’s personal debts. I would limit that to adult citizens as we cannot afford to give that much money away to every person who can cross the border with their hands out. He knows that money under our debt based system can only be created after a loan is taken out and is destroyed when it is paid off. I could use that source of money creation to cancel personal debts and get our debts to a manageable level.

There is another source of funding. I realize that all of the above reforms are needed to stop 10 million Americans and half a billion people overseas from dying of starvation but neither Obama nor Romney will institute these reforms. I personally believe the US military will side with us rather than with the bankers when the dollar collapses, prices double overnight and 90% of Americans will not like bankers. Instead of dying in wars for Israel and risking their lives going door to door in America’s 3,144 counties seizing 300 million they could seize the tens of trillions of dollars the bankers stole from us and stashed banks from the Cayman Islands to Lichtenstein.

I would also recommend that we make pensions or rather the promise to pay you a retirement income in 30 years illegal. Pay all the money today into an account into your name at a local cooperative trust association where your retirement funds and savings will be under your bane and control. Neither politicians nor bankers will be allowed to touch your money. These local trust associations could also act as credit unions, issue low interest credit cards, make loans and offer insurance with all profits to be paid into depositor retirement accounts.

Problems we state clearly and think through with all sides being allowed to contribute can be solved. Our problems are not being solved because the elite do not believe we have the right to participate. The Talmud teaches self-appointed Jewish leaders that we are not human. It also teaches then that it is permissible for Jews to rob the Gentiles as soon as they get hold of their government which explains the behavior of Goldman Sachs. In conclusion I will repeat what I have said before:

The Fundamental Fact of Your Existence as a modern man or woman is that the bankers of New York and London want to reduce you to Debt Slavery.

Accept that fact and move on to the solution.

That is their plan for you.

What is your plan for them?

Notes: This first  article explains why fractional reserve banking must be abolished.

IMF Economists: ‘We Were Wrong.’ Will Someone Please Tell The Press And The Politicians.

IMF Economists: ‘We Were Wrong.’ Will Someone Please Tell The Press And The Politicians.

I think the following is the most feasible means of seizing the tens of trillions of dollars stolen from us by the bankers:

Memo To Pentagon: Compare The Invasion Of Lichtenstein And The Cayman Islands To War With Iran And Syria

Memo To Pentagon: Compare The Invasion Of Liechtenstein And The Cayman Islands To War With Iran And Syria

Did Bernanke, The Rothschilds And Hillary Endorse Romney?

Did Bernanke, The Rothschilds And Hillary Endorse Romney?

So What Happens In 2013 When The Number Of Poor In America Goes From 100 To 280 Million?

So What Happens In 2013 When The Number Of Poor In America Goes From 100 To 280 Million?

If you have never read the Talmud, you are in for a surprise.

Israel Shahak: The Laws Against Non-Jews In 2 Minutes

Israel Shahak: The Laws Against Non-Jews In 2 Minutes

If you think the Muslims did 911, please read this:

911: Short And Powerful Questions

911: Short And Powerful Questions

 

This article was inspired by the following two men one of my favorite podcasts.

Daryl Bradford Smith With Muhammad Rafeeq (Rafeeq was an economic economic advisor to the Malaysian government during the economic crisis the 1990s.)