Posts Tagged ‘Paul Krugman’

Ongoing German Lies Destroying Europe, & World: 2) Debt & Investment

August 25, 2019

In light of the Biarritz 2019 G7 Summit:

German lies have long reigned as European lies: one of the causes of Brexit. Nobody says it, so I will: the British could only feel good, because their central bank provided their economy with enough “liquidities”… Not the case in Europe, because the ECB, tied in by German (and secondarily) French plutocracies, barely provided enough money to keep hundreds of millions of Europeans alive. The British then, felt there was something right about the UK keeping its independance… and they were right.

For years, US presidents (in particular Obama and Trump) have asked the European Union to augment “consumer spending”, or “demand”. The US can’t ask loudly Europe to augment investment (except in military matters, where the USA have long asked for more EU spending) but they mean it More surprising, Europeans themselves are lackadaisical about investing… or anything else having to do with a better future….

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We Are, Because We Lie… says the herd, and it moos, all together now. What makes a better bound than a lie?

Plutocrats and the plutocracies they depend upon, lie. Otherwise, they would not stay in power: only with lies can a few rule the billions. Those lies, initially imposed on the billions, are believed by the billions. Attacking those lies, thus, means attacking those billions.

For Estienne La Boétie (a close friend of Montaigne who was also a judge) the great mystery of politics was obedience to rulers. Why do people agree to be looted and otherwise oppressed by government overlords? It is not just fear, Boetie explains in “The Discourse on Voluntary Servitude, Le Contr’un,” for our consent is required (La Boétie naively thought). And that consent can be non-violently withdrawn (even more naive: as soon as one strays, one’s career is destroyed, thus the power to eat, let alone influence…)

To go beyond Estienne La Boétie, and his observations on voluntary servitude, one has to realize that obedience is not as much to rulers themselves, as to lies. Systems of lies.

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German fascism rested on lies:

The camp of those who think Germany is lying has grown a lot: Trump is in it, and now even Trump’s nemesis Paul Krugman agrees with the liar in chief on Germany. German readers may object that France also lies (and everybody knows about delusional, Brexiting UK). However German lies are convenient for French corrupt politicians, Germany (in spite of all the fascist dictators), having a reputation for seriousness.

One may even argue that Germany ended up with monsters such as the Kaiser and Hitler, precisely because it had such  a serious, quasi-scientific repute… Which the Germans were the first to believe. 

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Lies Rule History: 

How did Germany become this fascist, racist monster, Friedrich Nietzsche stridently condemned, telling us it would bring a disaster to humanity, a full 35 years before the Zweite Reich? By telling lies. And first of all, to itself.

How come France was so unprepared to fight a world war with Germany in May 1940, after declaring war to Hitler, eight months prior? By telling lies. In this case the lies were from the French High Command, to itself. And from the French government to itself: one doesn’t launch a world war without checking first one is ready (and to be ready, France had to go to war in Spain against hitler and Mussolini)

Disasters and holocausts are often accompanied with lies, or by their mildest, yet most pervasive form, “non-saids” (“non-dits” in the original French). One such lie, or enormous “non-said” pertains to erroneous attitudes of Germany in several dimensions. Nowadays. (Instead one focused on the Greeks.) Here are some of the errors, by order of importance: immigration, ecology, and European economy activity and the attending debt problem. I will ignore the attitude to (mass) immigration (of Muslims, not all of them integrable): its main effect was Brexit. Even Krugman, following Trump, sort of, has to admit there is something rotten in Germany… As I have said for more than a decade.  

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Want to see what lies lead to? Consider carefully the two curves in the graph below:

Degenerating, increasingly impoverished Europe. The blue EU curve, above, is similar to that of France and Germany… Except. of course, France is increasingly lagging, as German policy has been effectively advantaging Germany Uber Alles, all along, as usual… Bankrupt banking in Germany is the great secret advantage…

I have explained that those things would happen, and why, for years. Now they have. Paul Krugman (leftist Nobel star editorial of the New York Times, famous “liberal” economist) didn’t understand for years, what the problem was and now, not only does it, but his position is quite close, in practice, to… Donald Trump. (And Trump is not as far from Obama in several dimension, from MAGA, America First, to debt and championing the US economically through mercantilist policies…)

Paul Krugman in The World Has a Germany Problem

The debt obsession that ate the economy.

“…he’s [Trump] preparing to open a new front in the trade war, this time against the European Union, which he says “treats us horribly: barriers, tariffs, taxes.” 

The funny thing is that there are some aspects of European policy, especially German economic policy, that do hurt the world economy and deserve condemnation. But Trump is going after the wrong thing. Europe does not, in fact, treat us badly; its markets are about as open to U.S. products as ours are to Europe’s. (We export about three times as much to the E.U. as we do to China.)

The problem, instead, is that the Europeans, and the Germans in particular, treat themselves badly, with a ruinous obsession over public debt. And the costs of that obsession are spilling over to the world as a whole.”

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What the European sheeple doesn’t understand is that Public Debt can be defaulted upon. The USA did this many times. It’s painful for investors. But no big deal for a truly sovereign country (thus, not Argentina… or Russia…). 

I have explained many times: Public debt is, should everything go wrong, and a default on that debt occur, a possible, partial tax. Thus European governments, by substituting tax to debt, preventing the latter by splurging in the former, engaged in the worst outcome, basically taxation equating debt going into default, while calling this over-taxation, moral and prudent.

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And Paul Krugman to explain:

“Some background: Around 2010, politicians and pundits on both sides of the Atlantic caught a bad case of austerity fever. Somehow they lost interest in fighting unemployment, even though it remained catastrophically high, and demanded spending cuts instead. And these spending cuts, unprecedented in a weak economy, slowed the recovery and delayed the return to full employment.”

Notice here that Krugman is criticizing Obama… now… whereas at the time he didn’t (but I did, stridently; Obama didn’t do then what Trump is doing now, namely beating the drum for a stronger economy by helping We The People directly…)

“While debt alarmism ruled both here and in Europe, however, it eventually became clear that there was a crucial difference in underlying motivation. Our deficit hawks were, in fact, hypocrites, who suddenly lost all interest in debt as soon as a Republican was in the White House. The Germans, on the other hand, really meant it.

True, Germany forced debt-troubled nations in southern Europe into punishing, society-destroying spending cuts; but it also imposed a lot of austerity on itself. Textbook economics says that governments should run deficits in times of high unemployment, but Germany basically eliminated its deficit in 2012, when euro area unemployment was more than 11 percent, and then began to run ever-growing surpluses.”

And Paul explains that “Why is this a problem? Europe suffers from a chronic shortfall in private demand: Consumers and corporations don’t seem to want to spend enough to maintain full employment…

The European Central Bank, Europe’s counterpart to the Federal Reserve, has tried to fight this chronic weakness with extremely low interest rates — in fact, it has pushed rates below zero, which economists used to think was impossible…. Indeed, much of Europe may well already be in recession, and there’s little if anything the central bank can do.

There is, however, an obvious solution: European governments, and Germany in particular, should stimulate their economies by borrowing and increasing spending. The bond market is effectively begging them to do that; in fact, it’s willing to pay Germany to borrow, by lending at negative interest. And there’s no lack of things to spend on: Germany, like America, has crumbling infrastructure desperately in need of repair. But spend they won’t.

Most of the costs of German fiscal obstinacy fall on Germany and its neighbors, but there are some spillovers to the rest of us… characterizing this as a situation in which Europe is taking advantage of America gets it all wrong, and is not helpful.

What would be helpful? Realistically, America has no ability to pressure Germany into changing its domestic policies. We might be able to provide a little moral suasion if our own leadership had any intellectual or policy credibility, but, of course, it doesn’t. There’s a sense in which the whole world has a Germany problem, but it’s up to the Germans themselves to solve it.

One thing is for sure: Starting a trade war with Europe would truly be a lose-lose proposition, even more so than our trade war with China. It’s the last thing either America or Europe needs. Which means that Trump is probably going to do it.“.

As we will see next the de-industrialization of Europe, for example France, and soaring mediocrity, is striking, and is directly related to the (plutocrat favoring) austerity… The main champion of this disaster has been the one who profited the most from it, relatively speaking, but not absolutely speaking, Germany. And its weapon of mass destruction of the neighbors, has been the attitude relative to debt and deficits: giant in the US, tiny in Europe… Whereas, in truth, Europe needs debt more than the USA does…

Germany developed and pushed that attitude, precisely because it provided it with an arrogant advantage inside Europe. But this is a childish, all too childish, game, the one which brought us world wars: intra European strife leads Europe only to ever greater degeneracy… not just relative to the rest of the world (aside from the even more degenerating Prophet land), but, more importantly relative to what is needed to preserve Earth…

Patrice Ayme

Ongoing German Lies, And Why They Matter, Destroying Europe, & World. 1) Ecology

August 23, 2019

Some German anti-democratic lies have been ruling the world, for two decades now. It’s high time to get rid of them. A combination of Trump and progressive minds such as Uber-influential Nobel Paul Krugman of the New York Times, may well succeed to amplify my meek bleating in the dark.

Our times are cataclysmic, apocalyptic: after all, a sixth mass extinction has been launched. To stop it, we need the truth. Nothing but the truth, and all of it… that is we must denounce lies, and lying temperaments. We need science, that is, what’s left  

Trump lies outrageously, everybody knows this, but he is not the only one, all too many forget the latter. I have long said that Merkel’s Germany was off the track, and a big lie, in so many ways. Consider my Merkler? essay of 2012. Some will scoff that only Greeks got injured. No, all of Europe, and also Merkler’s insanity caused Brexit. I was ahead of times: now, seven years later, this point of view is gaining broad acceptance.

The camp of those who think Germany is lying has grown a lot: Trump is in it, and now even Trump’s nemesis Paul Krugman agrees with the liar in chief on Germany. German readers may object that France also lies (and everybody knows about delusional, Brexiting UK). However German lies are convenient for French corrupt politicians, Germany (in spite of all the fascist dictators), having a reputation for seriousness.

One may even argue that Germany ended up with monsters such as the Kaiser and Hitler, precisely because it had such  a serious, quasi-scientific repute… A belief in perfection which the Germans were the first to believe. 

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Energiewende Lie: Germany produces twice more CO2 per head than France (though about half of the USA). Worse: present policy does not make any improvement possible. In contrast, the USA has been best in the world at reducing CO2 emissions (albeit from a high starting point)…German Chancellor Merkel originated, lie has been “Energiewende”. the “Energy Transition“… which has consisted into Germany tapping some more coal, the bedrock of its heavy industry, for centuries.

Germany used its clout in environmentally correct policies (a lie!) to instill a mood of keeping on burning CO2 to produce energy, and, in particular, for burning coal. This has spread to all of Europe, and beyond:

https://www.ips-journal.eu/regions/europe/article/show/europes-coal-problem-3523/

Cute little picture… Full of lies, and implied dread. For example the picture describes and expect a lowering of energy consumption in Germany. All that means is that Germany is importing more, including nuclear from France. “Biomass” is a lie: it means making CO2 by burning old forests: it worsens the CO2 problem, planet-wide.

The truth is that, at this point, we have two new energy sources: photovoltaics and nuclear. Photovoltaics doesn’t work everywhere, and all the time. Nuclear is vast: U 235 fission, U 233 fission, Thorium, fusion, etc. Some have nuclear waste, others, not really. Even U 235 fission can be realized in many ways. The important point is that both danger and waste can be avoided completely using some nuclear technologies.

Nuclear devices will have to be developed, just to colonize other planets:

https://www.space.com/nuclear-propulsion-future-spacecraft-nasa-chief.html

I am positively completely, even fanatically against some nuclear technologies, such as graphite-gas (see Chernobyl for the inconvenience), surgenerators (with present tech), or second generation U235 reactors. At Fukushima, three such reactors exploded and melted down (due to a litany of grave errors). In the end, the radiation stayed confined: babies can now use the Fukushima beach… (Contrarily to expectations.)

Germany is against nuclear some will say, because it is more interested to milk coal for as long as possible. It’s not about higher principles, but greed. Germany has said, explicitly, under Merkel, that nuclear was more of a danger than coal. Now we can see how false that is: the greenhouse is accelerating. Siberia was on fire, for weeks, now so is the Amazon:

Following expanding wildfires in the Amazon rainforest, NOAA/NASA’s Suomi NPP satellite captured a natural-color image of smoke above South America using the VIIRS (Visible Infrared Imaging Radiometer Suite) instrument on Wednesday (Aug. 21). The image shows smoke above the Brazilian states of Amazonas (upper left), Para (upper right), Mato Grosso (lower right) and Rondonia (lower left). Lake Titicaca in Bolivia is visible, so are the Chilean and Peruvian coasts. Fires in the Amazonian rain forest used to be unthinkable… And so was our planet’s climate, unsinkable. But, surely, it’s flammable…

Usually perceived as culturally advanced Germany is helping to cause another holocaust… The entire planet on fire this time… Current oxygen levels are the result of millions of years of annual production. The loss of the Amazon won’t cause oxygen levels to immediately plummet… But the Amazon produces up to 6% of the Earth’s oxygen. So, as I have said in the past, there is an oxygen threat… Indeed, acidification of the ocean from CO2 could kill the plankton… Losing 50% of world’s O2 production.

But, says, Merkler, nuclear is the scariest thing…

Next we will consider the problem of debt, where the German attitude has proven even more hypocritical, and immediately injurious, abating industry in Europe (hence counter-measures to the CO2 built-up…) Something for the G7 to mull…

Patrice Ayme

“Democrats”, “Conscience of A Liberal” & Obamacare Want You To Die ASAP

July 21, 2019

Scorsese and the New York Times are pondering “Bob Dylan and the Myth of Boomer Idealism“, concluding that “We know now that the real story wasn’t the people at the protests and the concerts; it was all the people who weren’t“.

While Bush Senior was busy killing Columbians whom he accused of cocaine, the likes of Obama were getting ready for the US presidency, by snorting it.

I used to call Obamacare, Obamascare (although I was for insuring pre-existing conditions, of course, as everyone else). Obamacare was written by Plutos from the health care industry, anxious to augment their profit base. Accordingly, Obamacare also known as “ACA” has proven an unfathomable disaster: since 2015, life expectancy in the USA is going down (while the health industry’s profits have augmented). So what are those who were fanatically for Obamacare going to do?

Faced with Obamacare life shrinking, fanatical Obama careerists can do like Paul Krugman, the self-described “conscience of a liberal”, and claim that life extension is a terrible thing. (Or then do like the Democratic Congress, which, last week voted to get rid of the “Cadillac Tax” part of Obamacare). Paint life extension as something by the wealthy, for the wealthy. So, by dying younger, implies the self-described “conscience of a liberal” we are fighting wealth.

Oops! Obamacare lied, but graphs don’t. Most dying while profits for the few towered ever more: this is the American way… That all-American cocaine snorting boy, Obama the Great, made it so, and people will be forever grateful to have been f*cked so deep by the Great…

Coherent with Obamacare apparent effect on longevity, Paul Krugman proposes actually to ban “life extension” research”. Before my take on it, here is some of what Paul says, supposedly writing from the future, a diarrhea of subrealistic delirium:

 …people generally get worse as they grow older, because they become more like themselves… Even in the early 21st century, a growing number of people realized that America was becoming an oligarchy, with a hugely disproportionate share of income, wealth and power held by a small number of people…

But while the dynasties of the past often endured for a very long time, the dynasts themselves didn’t. Sooner or later, like everyone else, they grew old and died.

Nowadays, not so much.

It was no secret, back in the ’teens, that some tech billionaires, including Thiel and Larry Ellison, were donating large sums to “life extension” research. After all, these men weren’t just immensely rich, they were accustomed to the belief that there was a technological fix for every problem. So why not a fix for this whole get-older-and-die thing?

What few people seem to have thought about seriously was what would happen if the research actually panned out.

It would be one thing if life-extension technology were relatively cheap and could be made widely available. Even that would have created huge problems… most of us prefer the portmanteau “evergarchs,” for oligarchs who seemingly go on forever. But Morgan’s vision of a society utterly corrupted by near-immortal privilege turned out to be all too accurate.

Indeed, until recently it looked as if the political dominance of the evergarchs would extend indefinitely into the future. After all, the wealthy have always had vast influence, and we’re talking about people who were generally power hungry to start with — that’s how they got where they are — and they’ve had an unnaturally long time to build connections and buy influence.

But nothing is forever, even in an era of life extension. Public rage against the evergarchs has been building for decades, and it may now have reached boiling point.

So what should be done? Some are proposing that we simply try to diminish the evergarchs’ influence with steep taxes on huge fortunes, which is a good idea in any case. But there were real concerns about tax evasion even when oligarchs were merely mortal; imagine how good people can get at hiding their assets when they can spend decades, even generations, building their tax shelters.

No, life extension for a privileged few is, by its nature, a socially destructive technology, and the time has come to ban it. Take the evergarchs off their treatments, so that they start aging like everyone else, and don’t let anyone else get started…

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Life extension, care, is the best, oligarchy, the ugliest, confusing them, the worst: 

Confusing life extension and plutocracy: a new disease, an advanced case of Diversion Derangement Syndrome. In DDS, issues of much less importance are focused on, with strong passions (such as oligarchs living forever!)… allowing to smear notions of high value (life extension). (A famous case of DDS is TDS, Trump Derangement Syndrome…) However, life extension is pretty much the fundamental concept of medical progress. Thus, associating life extension and plutocracy, is associating the best of humanity, care, with the worst humanity is afflicted by, oligarchy and plutocracy

At the end of the reign of Obama the Great, for the first time in the USA during peacetime, lifespan started to decrease, several years in a row. Shall we congratulate ourselves, that lifespan is decreasing and celebrate that as our latest method to fight against plutocracy? This is what the great liberal Paul Krugman wants us to feel like.

The fact is, life extension is the most human activity. We are fighting death, day in, day out. Without strenuous efforts to keep infants, or very old or very sick or injured people alive, we would kill the best inner core of what makes us human. 

Life extension may also be a few cheap tricks away. Supplements such as NAD may improve mitochondrial breathing, and thus give a better good life extension (so it does on the animal species tested so far). That can be bought for as little as one dollar a day. In general, so far, all advances in medicine have become quickly available to most people. Actually, populations are exploding in parts of Africa, where women have eight children each, precisely because the children are not dying anymore as they used to. 

Viewing life extension as a sinister plot means that the great work of Obama the Great, decreasing lifespan is viewed as an anti-plutocratic positive. Personally, I feel that spite for life is the wrong mood to foster among the masses. 

If one wants to prevent plutocracy, it’s extremely simple: just limit wealth absolutely, as the Roman Republic did.

And then let’s not do the other thing the Roman State did, which killed it; first kill philosophy (but for collaborating stoicism), and then, and it was the next logical step, having killed curiosity, kill science and technology.

Patrice Ayme

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My brother in law died from the Obamacare famous “out of network” trick. First he was kicked out of the hospital after 5 stents and 5 days… Then, as he got another heart attack shortly thereafter, the hospital he drove to refused to take care of him. He died in a parking lot, trying to reach another hospital at 5 am…

Bank Worship

May 20, 2015

BANK WORSHIP IS ALL WHAT MIGHTY ECONOMISTS KNOW:

I have fiercely condemned, for a decade, the policy of reducing the economy to interest rates. As I have said, and will say again below, this is identical to making (private) bankers into gods. “Liberal” (meaning “left” in the USA) economists love to say that low interest rates is all the socialism we need. Nobel laureate Paul Krugman is trying to make fun of the serious arguments found in scholarly critique of his “interest rate idolatry”. Says Paul:

I’m With Stupid.

No doubt, dear Paul, no doubt. Being stupid is more profitable, quite often, than being smart and moral.

Banksters Steal The World, And Prosper, Ever More

Banksters Steal The World, And Prosper, Ever More

Via FT Alphaville, James Montier has an interesting piece castigating economists for their “interest rate idolatry”, their belief that central bank-set interest rates matter a lot for the economy…” Montier writes down notions I used to brandish at the beginning of the Obama presidency. I stopped after I realized everybody (Very Serious People, Academia, High Finance, Politicians, Media) was on the con. That meant, in practice that, if one talked about it too much one was viewed as mentally imbalanced (just as pointing out that the Qur’an prescribes terrorism may one looks as a racist, according to the Politically Correct insects). Here is part of Montier’s well-thought essay:

A wider idolatry: the greatest con ever perpetuated

Lest you think I am being unduly harsh on the world’s poor central bankers, let me turn to the wider idolatry of interest rates that seems to characterise the world in which we live. There seems to be a perception that central bankers are gods (or at the very least minor deities in some twisted economic pantheon). Coupled with this deification of central bankers is a faith that interest rates are a panacea.

Whatever the problem, interest rates can solve it. Inflation too high, simply raise interest rates. Economy too weak, then lower interest rates. A bubble bursts, then slash interest rates, etc., etc. John Kenneth Galbraith poetically described this belief as “…our most prestigious form of fraud, our most elegant escape from reality… The difficulty is that this highly plausible, wholly agreeable process exists only in well-established economic belief and not in real life.”

This obsession with interest rates as a cure-all rests on some dubious views about the way the world works.”

Montier points out that the fundamental official argument for lowering interest rates down to zero is flawed: …”firms generally rely on internal financing to fund investment, rather than borrowing – witness Exhibit 6. Over 100% of gross investment is financed by internal funds.”

The obsession with interest rates has meant, in practice, that so-called liberal, self-described “progressive”, friends of “We The People” economists, have prescribed, implicitly, to lower taxes on the hyper-rich as much as possible. So they masquerade as left-wing, but, in truth, they are plutophiles. This is an old method, and why Polar Bears are white, instead of brown or black as their ancestors were. Montier:

“Just in case you were wondering about the much-lauded ability of the central bank to create inflation via helicopter drops of cash (or its modern-day equivalent), this is actually a form of fiscal policy, not monetary policy. As I noted above, monetary policy alters the distribution of net worth while fiscal policy alters the levels of net worth. Because helicopter drops effectively give everyone a boost of cash, this is clearly a change in net worth and thus is likely to be helpful in stimulating demand.

As you may have gathered from the preceding paragraph, the good news is that there is an alternative to monetary policy, and that is fiscal policy. These days fiscal policy is deeply out of vogue amongst policymakers and politicians. However, it has a much more direct link to growth than any of the channels suggested for monetary policy – it is part of the construction of GDP, and has a clear impact upon incomes.”

Krugman made a very feeble defense, which mostly consisted, weirdly, but tellingly enough, to laud Lawrence Summers, one of the architect of the dismantlement of the financial regulations under Clinton, to create a class of hyper-rich financiers. To his credit, Krugman published my comment:

In the USA, houses are started massively all the times. It’s a mark of unsustainability (presumably flimsy housing is replaced). Reducing the entire economy to this, is imbalanced. Why not consider infrastructure starts? Research? Health?

The fundamental question is: what is an economic activity which is profitable for the society?

The conventional answer is that banks know best. As the banks’ lending goes up as interest rates go down, bringing the latter down, improves the economy, say banks’ friends.

Let’s call that BANK WORSHIP.

Bank worship has enabled big banks’ heads and associated high financiers they collaborate with, to be so powerful and dishonest, that they changed the hearts & minds of all the power that be in society.

The latest case is the French Societe Generale: the police chief in charge of an inquiry on an eight billion dollar fraud therein, now admits, years later, that she was manipulated by the bank (a lower level employee, Jerome Kerviel, was sued, chased down, and condemned severely, although he claims he acted under orders). The fraud was reimbursed by taxpayers. This means that Societe Generale bosses, just in this particular case, of this particular fraud, stole around 50 dollars to each French citizens. Don’t worry for them: the thieves live big. An even bigger picture is that, in the leading countries, big bankers are banksters, and they corrupted institutions of the Republic (including politics, government, justice and police) thoroughly.

The problem is the same in Anglo-America: time after time, giant frauds of the biggest banks are exposed, and they are condemned to fines. In the end, a bank-too-big-to-fail condemned to a fine means nothing: in the worst possible cases, it’s tax payers who pay. It is the case where the criminals’ punishment is to make the victims suffer.

The latest such case is the LIBOR “punishment”, proclaimed today. In it, big banks in London manipulated the world’s leading interest rate (they call that the “market”). You would think that, after stealing billions the heads of banks such as JP Morgan would go to jail. No. Taxpayers go to jail.

Zero Interest Rates, To Serve High Finance Plutocracy:

Another problem is that zero interest rates have proven devastating for small savers, while providing the banks and their accomplices with quasi-unlimited funds for playing with each other the derivatives’ market, something that is not a real economic activity, except by making the richest ever richer.

One lends to the rich. By making lending ever easier, government policy has made the rich ever richer.

Correct economic activity would consist in the government encouraging activities which are profitable to the people at large, very long term.

The “market” is driven with what bankers think is profitable, short term.

Conventional wisdom by the economists in power is that we can trust the bankers to encourage the economic activity most suitable to the “market”, hence society.

Governments were told by the economists in power to make the job of bankers easier, to make for a better economy, hence better society. Trust bankers, give them all the lending capability, hence all the power they want, and We The People will become richer.

Thus the general strategy of bank worship assumes a trait that is true: a banker is a government official. A banker is a non-elected, uncontrolled government official, with unlimited funds, and inexistent oversight by the People’s representatives.

Bankers control the market, which controls the economy, which control society. Is that the society we want? Do we want to be controlled, financed, by an oligarchy of non-elected little Big Brothers who decide what activities the society will engage in?

Bankers are little Big Brothers who are free to finance the high financial class they belong to, as much as they want. That’s why derivative trading is more than ten times larger than real trade, worldwide. This is also why half of the world’s money is in Dark Pools. And so on.

The cause of this nightmarish world is bank worship. Bank worship is very smart for the Big Bankers. Krugman is NOT with stupid, as he disingenuously claim. He is with the winning crowd. To go interact with people such as Paul Krugman and Joe Stiglitz, the fact is, one needs to be seriously independently wealthy (then one can become a “student”, meaning a future co-conspirator, or mingle at parties).

It is very stupid for the rest of us to have become adulators of bank worship. Bank worship made society subject to a dictatorial oligarchy operating in the shadows.

What happened to the Enlightenment? It seems to have sunk in “Dark Pools”.

Patrice Ayme’

Beware Of Those Who Brought Greeks Gifts

April 20, 2015

The hidden logic in various human activities is often different from the apparent one. This is true in sociology, politics, economics. Consider NAFTA (North American Free Trade Accord), QE (Quantitative Easing: make banks richer so they be gooder), TPP (Trans Pacific Partnership: Terrifying Plutocracy Punishing China), etc.

For a decade the Greeks, having had their Drachmas converted into Euros at twice their natural worth, brought gifts to the rough Germans, by buying their luxury cars. Now Germany is rich and powerful, and Greece poor, and weak. Best conditions to pay for Greek arrogance.

There is totally no economic reason to keep on punishing Greece at this point. So why do the punishments keep on coming? One has to resort to a few twisted psychological explanations.

Lots Of Debt: Some Can Be Turned Into Tax, Some To Foreign Extortion

Lots Of Debt: Some Can Be Turned Into Tax, Some To Foreign Extortion

My twisted psycho analysis will complement the excellent editorial from Krugman: ”Greece on the Brink”.

“…Can Greek exit from the euro be avoided?

Yes, it can. The irony of Syriza’s [the present governing party, in alliance with nationalists] victory is that it came just at the point when a workable compromise should be possible.

The key point is that exiting the euro would be extremely costly and disruptive in Greece, and would pose huge political and financial risks for the rest of Europe. It’s therefore something to be avoided if there’s a halfway decent alternative. And there is, or should be.”

Notice that Paul Krugman has now an opinion on the “Grexit” exactly opposite to the one he had just two years ago. What he and others have not understood, is that I do not see why Greece could not default and stay in the Eurozone. To identify both concepts, is a way to terrify, but it does not have to be, except as a terror instrument.

Krugman: “By late 2014 Greece had managed to eke out a small “primary” budget surplus, with tax receipts exceeding spending, excluding interest payments. That’s all that creditors can reasonably demand, since you can’t keep squeezing blood from a stone. Meanwhile, all those wage cuts have made Greece competitive on world markets — or would make it competitive if some stability can be restored.

The shape of a deal is therefore clear: basically, a standstill on further austerity, with Greece agreeing to make significant but not ever-growing payments to its creditors. Such a deal would set the stage for economic recovery…

But right now that deal doesn’t seem to be coming together… the creditors are demanding things — big cuts in pensions and public employment — that a newly elected government of the left simply can’t agree to, as opposed to reforms like an improvement in tax enforcement that it can. And the Greeks, as I suggested, are all too ready to see these demands as part of an effort either to bring down their government or to make their country into an example of what will happen to other debtor countries if they balk at harsh austerity.

Rightly so: if Greece default, students in the USA, with an outstanding, non-extinguishable debt of 1.2 Trillion dollars (!) may think: ’Why not us?’

Greece has a ratio of 170 per cent of debt to GDP. However, the debt has a very low interest rate and a maturity of over 15 years. Its impact on the economy is much lower than in Portugal, Spain, or Italy. And that is the entire point: the Italian economy is terrible. Last year 170,000 refugees flooded Italy (they came back to be colonized again by the big bad colonialists!)

A new round of Greek restructuring would create political problems for Eurozone governments which, as a percentage of GDP, face a higher interest bill than Greece. How can the Spanish or Italian Prime Minister tell their aghast subjects: ‘Greece has a lower interest burden than we have, but we need to alleviate their burden! And not yours!’

And then there is the question of countries like France, where austerity is applied, while the country is paid by investors to consent to store their money there. That can only mean that, in the light of our guides, austerity is an absolute good.

Krugman detects the will to torture the Greeks, because:

To make things even worse, political uncertainty is hurting tax receipts [and investing!!], probably causing that hard-earned primary surplus to evaporate. The sensible thing, surely, is to show some patience on that front: if and when a deal is reached, uncertainty will subside and the budget should improve again. But in the pervasive atmosphere of distrust, patience is in short supply.

It doesn’t have to be this way. True, avoiding a full-blown crisis would require that creditors advance a significant amount of cash, albeit cash that would immediately be recycled into debt payments. But consider the alternative. The last thing Europe needs is for fraying tempers to bring on yet another catastrophe, this one completely gratuitous.”

None of these apparently absurd policies imposed on Greece, are absurd. They just look absurd to those attached to human rights. From the point of the perpetrators, they are fully logical. And they are certainly not gratuitous.

Contemplate this: If the Greek government succeeded to augment tax revenues, it would succeed to tax the 1% significantly, especially the super-rich. If, in combination with a primary surplus, that was deemed sufficient for the rest of Greece creditors (including those based in Washington, like the IMF), that would be a demonstration for all to see that the present economic crisis has to do with NOT taxing the hyper rich enough. As taxing them would be enough to solve everything.

This is exactly the lesson the plutocrats and their servants do not want to be advertised.

Hence their reluctance to accept that taxing the hyper-rich is enough. But there is a further twist. The “Socialist” French Finance Minster, Sapin, is as hysterical as his German colleagues to insists Greece should pay… Until catastrophe ensues. Of course, as all the others, he has to think about his income once he gets kicked out of government within 2 years (probably). But there is still another angle.

Suppose catastrophe ensues: Greece defaults, exits the Eurozone. Then what? The Euro probably goes down much more (for a long number of reasons… no least that there would have been a default, and Greece would still have to be helped!)

Then the Euro, may go as low as it was when Germany was in great difficulty, a decade ago. So it would be good for Europe: whereas the USA depends only for 13% upon international trade, France depends at 28%, and Germany much more.

Right wing individuals, many of them who have been partners at Goldman Sachs (Monti, or the head of the ECB), or in general are tied in to High Finance, are not interested in seeing a left-wing government succeed, where the right has failed. Creditors will keep destroying the Greek economy. They may be nice people, but mostly with their kind.

One could point to creditors that they were the ones who converted the Drachma at twice its real rate against the Euro. As co-responsible, they should be punished too! However, this would not go in the sense we are supposed to attribute to history.

This Greek tragedy makes sense. Plutocratic sense. This is a world where the weak and small is in debt to the mighty, and has to learn living that way, as serfs did, in the Middle-Ages. Otherwise, they can be made an example of.

Patrice Ayme’

WRONG HISTORY, WRONG PHILOSOPHY: Nazi Lies Still Ruling In 2015

February 16, 2015

THOSE WHO LIE ABOUT HISTORY CONDEMN OTHERS TO RELIVE IT.

Misreading the history of what happened centuries, or even millennia ago, can have drastic consequences today. As the European Union is been constructed, it is important that the enormous lies of the past get exposed, for the lies they were… Especially when they are still viewed as the truth

Example? It is important to expose the all-powerful Christianism of the Middle-Ages, and especially of the Late Roman Empire for the civilization devouring monster it was: then we can turn to it scion, all-powerful Islam, and condemn it, just as vigorously, for the exact same reason, instead of licking its toes, respectfully, as Obama did.

(Contemporary prominent US historians  still claim that it is “nonsense” that Christianism caused proximally the fall of Rome… When that idea, found explicitly under philosopher-emperor Julian is 17 centuries old… And obviously correct as the Frigidus River battle, in 394 CE, annihilated the Occidental Roman army at the hands of Goths and fanatical Christians united.)

Greece owes around 65 billion Euros to Germany, from the Greek “rescue” plan, a neat trick to have the Greek People pay for (mostly foreign) banks. Syriza, the new government in Greece (in coalition with a nationalist party) is asking for more than 160 billion Euros in reparations for the assault, invasion of Greece by Germany in 1941… Which may have brought the death of more than 800,000 Greeks.

Do Those Who Hate The Versailles Treaty Also Believe the Nazis’ "Work Makes Free"?

Do Those Who Hate The Versailles Treaty Also Believe the Nazis’ “Work Makes Free”?

[As we have seen before, and will see again below, the tradition in American circles, is to accuse the French to have invented Nazism… And that’s exactly what the Nazis said. It’s also a giant lie. A racist, holocaust force lie.]

The Nazis’ exactions in Greece were so extensive, that it is difficult to know how many died; a typical assassination by the Nazis was not an orderly extermination in an extermination camp involving processing by IBM computer (!), but shooting of an entire family in some thicket, as the Nazis wanted to leave no trace of their activities.

Paul Krugman is getting bolder Weimar on the Aegean:”Try to talk about the policies we need in a depressed world economy, and someone is sure to counter with the specter of Weimar Germany, supposedly an object lesson in the dangers of budget deficits and monetary expansion. But the history of Germany after World War I is almost always cited in a curiously selective way. We hear endlessly about the hyperinflation of 1923, when people carted around wheelbarrows full of cash, but we never hear about the much more relevant deflation of the early 1930s, as the government of Chancellor Brüning — having learned the wrong lessons — tried to defend Germany’s peg to gold with tight money and harsh austerity.

And what about what happened before the hyperinflation, when the victorious Allies tried to force Germany to pay huge reparations? That’s also a tale with a lot of modern relevance, because it has a direct bearing on the crisis now brewing over Greece.”

Krugman argues that the policy imposed on Greece now is what sank the so-called Weimar republic. Nice on the surface, false when one looks at the details. (Weimar was NOT a republic, to star with.)

But here I am going to set Krugman right about history:

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REAL HISTORY OF FASCIST, RACIST GERMANY 1912-1953:

In 1953, the victorious Allies decided Germany ought nothing for Nazism (this is what Syriza is nowcontesting).

The history of Germany in the period 1912-1953 is relevant to the present Greek tragedy.

On December 11, 1912, it was a Sunday, the Kaiser brought his six top military men in a conference. It was decided that the ascent of the ever more prosperous French Republic and her vast empire, combined with the democratization of Russia, left the German plutocracy behind, and that only attacking them militarily would solve the problems.

The two admirals objected that they would never be ready to fight a world war within 18 months. The Kaiser insisted that they had to work more on the press to get the German population ready for war.

On June 1, 1914, Colonel House, the right hand man of USA president Wilson, secretly proposed to the Kaiser an alliance, with Britain, against France, if the Kaiser would stop his naval force built-up.

Germany attacked in August, and nearly lost its entire army in a French counter-attack next to Paris, in September (in the First Battle of the Marne).

However, corporations of the USA, for years, fed the otherwise landlocked Kaiser kingdom with war supplies, for years, through the Netherlands.

France and Britain complained to Washington, but they were not going to declare war to the USA.

After Wilson re-election in 1917, the USA declared war to Germany, just as the Soviets made peace with Germany, conceding a gigantic territory Russia occupied in Eastern Europe.

In 1918, Germany lost the war it had started deliberately, surprising everybody.

A last, all-out attack by the German army on Paris, the second Battle of the Marne, was decimated by a deluge of French artillery fire, and was finished with a pincer counterattack by 50 Allied divisions (including 2 American and 45 French).

The retreating German army, under orders, scorched north-eastern France, flooding the mines, dynamiting all production centers, and even Middle-Ages castles, burning all telephone poles.

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GERMAN PLUTOCRACY WAS NOT DEFANGED BY THE VERSAILLES TREATY:

The Kaiser fled. However, the Prussian-German plutocracy he left behind still controlled most of the press, and the legend took hold in Germany that the German army had not been defeated.

Instead, Germans were indoctrinated: their army had not been defeated, it had been stabbed in the back. Germans were told that traitors inside Germany made the revolution that caused the defeat (the other way around from the real reality).

Those traitors were the Communists, and the Jews, they had to be killed. A civil war started, and units of the German army were employed to do just that.

As Germany was not occupied by the Allies, the Allies basically did not prevent those satanic ideas to take hold of Germany.

The Allies had not cut-off the head of the snake (as would be done after May 1945). Clemenceau predicted in 1919 that Germany, would attack 20 years later, again (as it did).

Except, next time, Germany was out to kill all the Communists and Jews.

The Paris peace conference of 1919 forced Germany to give independence to the countries it had long occupied, such as Czechoslovakia, and Poland.

It is shocking to see Paul Krugman repeat what would become one the mantra of the Nazis. Krugman: “First, Germany’s economy had already been devastated by the war.” It’s France, Belgium and Eastern Europe who had been devastated. Not one square meter of Germany had been occupied and thus “devastated”.

“Second, says Krugman, the true burden on that shrunken economy would — as John Maynard Keynes explained in his angry, powerful book “The Economic Consequences of the Peace” — be far greater than the direct payments to the vengeful Allies.”

Yes Keynes may have said this, but this was not his most important message. Lord Keynes explains in his book that amputating the German empire from all the nations it occupied (“the economic consequence of the peace”) would indeed devastate the German empire.

And that it sure would, because the entire idea of many nations in 1919, including the French, was to dismantle the plutocratic empire Germany had set for itself in the middle of Europe. Lord Keynes showed his true intent, when he wrote in his racist book, that the Poles were an inferior race, and that they cannot manage an economy.

Such things are never said, so nobody knows them.

Thus our friend Krugman intones what became the German credo: “In the end, and inevitably, the actual sums collected from Germany fell far short of Allied demands. But the attempt to levy tribute on a ruined nation — incredibly, France actually invaded and occupied the Ruhr, Germany’s industrial heartland, in an effort to extract payment — crippled German democracy and poisoned relations with its neighbors.”

What is truly incredible is how ignorant of true history Krugman is.

My opinion, shared by Belgium and France in 1923, is quite the opposite. Even Paris itself had been bombed by the attacking Germans, and under long range artillery fire. That’s devastation. Germany was intact, differently from devastated Belgium and France.

The legend that Germany was devastated was most profitable to the Nazis and their plutocratic collaborators, on both sides of the Atlantic.

Repeating The Biggest Lies of the Nazis Is Still Common Wisdom

Repeating The Biggest Lies of the Nazis Is Still Common Wisdom

“The English follow the principle that when one lies, one should lie big, and stick to it. They keep up their lies, even at the risk of looking ridiculous.” Joseph Goebbels (Nazi propaganda minister).

The biggest Nazi lie of all was that the Versailles Treaty devastated Germany. And this is what many an American university parrot has said ever since (as it allowed to punish France, that was USA profitable!). For more on the Big Lie Technique, see: “Mediating Pluto“.

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IN 1919, GERMANY WAS INTACT, AND SO WAS ITS PLUTOCRACY, NASTIER THAN EVER:

Germany was intact, but Germany did not want to pay. That would have been to recognize what happened in 1914, namely that Germany attacked France and Russia deliberately, knowing full well it would cause a world war (that its racist plutocracy hoped to win, with the a little help from the USA).

Why was history not learned in 1919? Some of the worst men who had caused World War One were in power in Germany, after the war.

An example is Dr. Schacht, a protégé of JP Morgan (yes, the American banker). Schacht was such a crook, his commanding Prussian general fired him for exploiting occupied Belgium. However, in 1923, he commanded the German Central Bank. To foil the French, Dr. Schacht decided to make German money worthless, by hyper inflating the money supply.

Paul Krugman wrote in his blog: “We know that part of the reason large postwar reparations were such an unreasonable and irresponsible demand was the dire, shrunken state of the German economy after World War I.”

Large, unreasonable, irresponsible postwar reparations” were a German Nazi legend.

Why did the Germans think of this legend? Because they had tried that trick, just prior.

Indeed, Chancellor Bismarck, after the Franco-Prussian war of 1870-1871, imposed on the French Republic exactly that sort of “large, unreasonable, irresponsible postwar reparations”.

Bismarck’s hope was that France would not be able to pay, and so war could be started again. In any case, his plan was to hinder the French economy indefinitely.(He got disappointed, as France paid, unexpectedly, in five years!)

So Germany was expert at the idea of mutilating reparations: after all, it invented the idea. (That’s why it should pay Greece now!)

The German economy shrunk by 25% in GDP, most of it during 1914, the year Germany attacked the world. Pushing a two million man army through Belgium will make your economy shrink.

What are those “large postwar reparations”? Intact Germany disingenuously argued that it could not pay, except in worthless paper.

The French Republic insisted that Germany had enormous forests, and could easily replace the tens of thousands of French telephone poles it had just destroyed. Was replacing the telephone poles the German army had deliberately destroyed in 1918 throughout a large part of France “large, unreasonable, and irresponsible?”

It was the refusal by Germany to replace these telephone poles that precipitated the crisis of 1923.

The French Republic, reasonably enough, decided that the German refusal to replace the telephone poles it just destroyed was indicative of a total lack of cooperation. So France, accompanied by Belgium, invaded the Ruhr.

What went really wrong is that it did not stay until reason had prevailed in Germany. Suppose that the French army had occupied Germany, until the Germans calm down, and wiser heads told the Germans what had really happened in World War One? How bad would have that been?

No Auschwitz?

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JEWS WHO HATE THE VERSAILLES TREATY LOVE NAZISM:

In 1945, the French military fought inside Germany, and would stay there for the next 54 years, until the creation of the Franco-German brigade in 1999.

Properly digesting history is what enables civilization to survive and progress. History cannot turn into civilization unless it has been thoroughly examined.

Krugman is a Jew. He had said so himself, while recognizing he was very much cut off his roots. For Jews (!) to repeat like deranged parrots the very legends that gave rise to Nazism is beyond the pale, it’s falling into the abyss.

Why?

Because sometimes in the future, people in the West will ask: ‘Why was Israel created, if what the Nazis said was true?’ If it is true, as the Nazis claimed, that the French were the ones who launched Nazism with their exploitation of Germany, treacherously using the German Jews to stab the glorious German military from behind, did not the Jews deserve to be punish?

Well, the answer is the Nazis lied, and having Jews like Paul Krugman telling us that they did not, cannot change the reality of what happened.

Human minds cannot distort reality all they want. Nature, even human nature, is out there to correct outrageous errors. The hard way.

Patrice Ayme’