Gold is not money

Most people falsely believe that money is physical and limited. This false belief is one reason why societies separate into rich and poor. Rich people and their toadies starve people of money by claiming that “money is scarce.” The claim is false, but the starvation is real.

The delusion that money is physical and limited has many variants, one of which is the false belief that  only gold is “real” money, and that fiat money is not “real.”

In reality, only fiat money is “real money.” Physical gold is not money, and never has been, nor ever will be, since actual money is not physical. Actual money involves mental units of account (such as dollars or euros) that can be represented by written or printed numbers.

Gold can be traded (bartered) for money, or for goods or services, but gold cannot be “spent” like money. Gold and crude oil are commodities denominated in currencies such as dollars. Gold is presently trading for 1,240 U.S. dollars per ounce, while crude oil is trading at about 50 dollars per barrel.

If there were no currencies, then there would be no monetary value to oil or gold (or to anything else). However most people falsely believe that the reverse is true — i.e. that gold is what gives “value” to money. Again, this is part of the false belief that “real” money is scarce; a false belief that keeps billions of people enslaved.

“Gold traders” want you to think that only gold is “real money,” even though “gold traders” usually do not trade gold.  Instead, they trade “gold certificates,” which are mere numbers in a private database. If you buy a “gold certificate” from a “gold exchange,” and you ask for physical gold, you will not get any, since they do not have any. All they can do is offer to cash out your “gold certificate,” which is simply an account in their private database. The monetary value of your account is not physical.

Traders of “gold certificates” are constantly devising new scams to convince people to invest in “gold exchanges.” One of their scams is to falsely claim that gold is the only “real” money.

Gold hucksters are now claiming that on 22 May 2017 Arizona Gov. Doug Ducey signed a bill into law (HB2014) that makes gold into money in Arizona.

Nonsense of course.

HB2014 simply ends state taxation on capital gains derived from the trading of precious metals. For example, if you buy gold at 1,000 dollars per ounce, and you sell it for 1,500 dollars per ounce, the 500 dollars difference is considered capital gains. Arizona will no longer tax state residents on that 500 dollar gain. That is, Arizona residents no longer have to list this kind of capital gain on their state income tax forms.

The bill was introduced by Republican Mark Finchem who claims that taxing exchanges of “legal tender like gold coins” is a tax on money.

This is more nonsense. Gold coins are not legal tender. I’ll bet that Finchem is a gold huckster. If so, then he pushed for removing the tax in order to boost his “gold exchange.”

Former presidential candidate Ron Paul has commented on this AZ bill, saying,

“Every supporter of free markets should cheer Arizona’s passage of HB 2014. There is no more justification for forcing individuals to use government-created money than there is for forcing individuals to drive government manufactured cars. In fact, as the Federal Reserve’s 114 years of failure shows, giving monopoly control over our money supply to a secretive central bank is the most dangerous form of government intervention.”

Except that gold is not money, and never gas been. If I have a gold coin whose face value is one dollar, then the coin represents one dollar, and can be used or traded as a dollar, but technically the physical coin is not a dollar, since a dollar is not physical. The coin is simply a token, as is a dollar bill. In the United States, the monetary units of account are not gold, or coins, or currency notes, but dollars and cents. A ten-dollar bill represents ten dollars. It is a credit for ten dollars, but the currency bill itself is not ten dollars. It is just a piece of paper.

Again, this is not mere sophistry. The mass refusal to understand that money is not physical is one reason why we have global inequality. Because most people falsely believe that money is physical, rich people and their puppet politicians can falsely claim that “money is scarce,” and there is “no money” for social programs that help average people.  

Incidentally, notice Ron Paul’s self-contradiction. He condemns “government-created money,” but he also condemns the Fed as a “secretive central bank” that has “monopoly control over our money supply.”

So who creates money, the government or the Fed? (The correct answer is both.)

More nonsense from Ron Paul…

“By allowing the people of Arizona to use an alternative to Federal Reserve-created fiat currency, HB 2014 will help the people of Arizona survive the next Federal Reserve-created recessions. Passage of this bill will also help make Arizona more attractive to the growing number of people seeking alternatives to fiat money in order to protect themselves, their families, and their business from the effects of Federal Reserve policy. Thus, this bill will help attract new investments and jobs to Arizona.”

Either Ron Paul is a moron, or a gold huckster, or he was paid by gold hucksters to say this. U.S. federal law says that the U.S. currency is dollars and cents, not gold or gold coins. If gold was an “alternative currency,” then I could use gold to buy groceries. But I cannot. I can trade gold for groceries at agreed-to-dollars per ounce, but I cannot “spend” gold.

And note how Ron Paul falsely thinks that all dollars are created by the Fed.

Regarding recessions, these can be caused by austerity (i.e. the government putting insufficient money into the economy) or else they occur when private debt loads become too big to pay off. The first type of recession is caused by politicians. The second type is part of the “business cycle,” and can be triggered by the Fed if interest rates rise too far too fast.

One person says that, “Gold holds its value better than anything else on the planet.” Nonsense. The monetary value of gold depends on fluctuating gold markets, which are denominated in dollars, euros, etc. Monetary equivalents can rise and fall rapidly. As much better investment is Treasury securities. That is why various investors of all kinds have collectively deposited 20 trillion dollars in Fed savings accounts (the so-called “national debt”).

By the way, if gold is not money, then why did President F.D. Roosevelt sign Executive Order 6102 on 5 April 1933, which banned any individual or corporation from holding more than five ounces of gold?

The stated reason was that hard times had caused a “hoarding” of gold, stalling economic growth and making the depression worse.

This was a lie.

The actual reason was twofold.

First, in 1933 the USA was still on the “gold standard.” This was always a farce, since the U.S. government could always create money out of thin air, regardless of what gold happened to be trading for. Politicians mentioned the “gold standard” so they could pretend that federal money was scarce. Politicians ignored the “gold standard” when they wanted to create money for things like wars. Executive Order 6102 helped to buttress the “gold standard” pretense.

Second, U.S. dollars were not accepted globally in 1933. The world was marching toward a Second World War, and the U.S. government wanted the ability to obtain imports on an emergency basis. If foreigners in 1933 would not accept dollars for their imports, they might accept gold in trade, denominated in British pounds.

After World War Two, the US dollar was accepted worldwide, and by 1964 the U.S. government started to relax its restrictions on the owning and trading of gold. By 1975 all restrictions were removed.

Getting back to Arizona, the Zero Hedge blog says this…

Rep. Mark Finchem (R-Tucson) introduced House Bill 2014 on Jan. 9. The legislation defines legal tender as “a medium of exchange, including specie, that is authorized by the United States Constitution or Congress for the payment of debts, public charges, taxes and dues.” “Specie” means coins having precious metal content. In effect, passage of the bill treats gold and silver specie as money.

Wrong.

First, U.S. government laws designate dollars (not gold) as legal tender. Second, “specie” means “coined money,” which originally meant creating money by stamping coins. Later “coining” meant creating money, period. Precious metal content was irrelevant to this, and remains so. Article 1 Section 8 of the U.S. Constitution says the Congress shall have power to “coin money, and regulate the value thereof.” The Constitution says nothing at all about what kind of metal the coins must be made of.

To repeat, all these errors are products of the false belief that money is physical, and therefore scarce, and that the only “real money” is gold.

As I noted above, the Arizona bill simply ends taxation of capital gains that are derived from the trading of precious metals.

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The plague comes to my town

In the USA the word “jail” means a place for people with a sentence of one year or less, and usually has people convicted of misdemeanors. “Prison” (or “penitentiary”) means a place for people with a sentence of one year or more. Prisons usually holds people convicted of felonies.

The city where I live is about to become the first city in my state to have a privately owned jail.

The owner will be Corrections Corporation of America (CCA) which is so criminal and corrupt that it must regularly change its name. Currently it is known as “CoreCivic.”

(Another example of this is Blackwater, which consists of private death squads contracted by the CIA.  Blackwater changed its name to XE Services, and then to Academi. A Blackwater death squad murdered 14 Iraqi civilians in Nisour Square in Baghdad. Blackwater also provided bodyguards to Paul Bremer, who oversaw the theft of 12 billion U.S. dollars that were flown to Iraq after the invasion. Every two weeks, a C-130 aircraft flew from New York to Baghdad to deliver pallets of shrink-wrapped dollars that weighed a total of 363 tons. One flight on 22 June 2004 had 2.4 billion dollars. No one knows who stole the $12 billion, and Bremer was never charged with any crime. Twelve BILLION dollars.)

(INCIDENTALLY the U.S. government intended that $12 billion to be used for boosting the Iraqi economy. Meanwhile back in the USA, politicians claim that the way to boost the U.S. economy is to REMOVE dollars via austerity.)

So now my city will have a privately owned and operated jail. The rationale, as always, is that private ownership will “save money” for the city. The reality is that private ownership will be far more expensive for the city, since the owners seek to continually increase their profits via ever-higher fees and ever-shrinking services.

There are no exceptions to this rule. None. Never.

I have not had a chance to read the contract that my city will sign with Corrections Corporation, but such contracts always include guarantees that the local government will keep the privately owned jail (or prison) constantly full. This means that more and more people will be jailed for misdemeanors like J-walking. It also means that inmates will be treated like animals, and will be charged high fees for everything from toothbrushes to toilet paper. Inmates will be fed garbage, since private companies seek to constantly reduce their costs in order to constantly boost profits. Corrections Corporation will also treat its guards like dirt. Inmate deaths and suicides will explode in number, as will inmate lawsuits against the city.

Let me repeat that. When a privately owned jail commits offenses, and inmates file lawsuits, the party that pays is not the offending company, but local taxpayers. This is one reason why privatization never saves money for taxpayers. Quite the opposite. The Indianapolis Star reporta that Indianapolis Mayor Joe Hogsett plans to cancel a long-standing private jail contract with Corrections Corporation in hopes of saving the city millions of dollars.

The city council in my own town voted 4-to-2 to privatize the city jail, which means that four council members were stupid, or else they were bribed by Corrections Corporation. The city mayor is also stupid (or was bribed), since he too voted to sell out to Corrections Corporation.

Two months ago my city announced that it was planning to privatize its jail operations. Hundreds of city residents e-mailed city council members asking them not to do it. Yesterday when the vote was taken, protesters filled the city council chamber. All their pleas were ignored. Bribes speak louder than people.

Privatized prisons cause things like the “kids for cash” episode in which the owner of a privatized juvenile correction facility continually paid two judges to give maximum possible jail sentences for kids, in order to keep the jail facility full. Vast numbers of kids were jailed for trivial offenses — or for no offenses at all. (This was only a “scandal” because the victims were kids. When the victims are adults, the scam is simply “business.”)

Private prison companies are organized into Real Estate Investment Trusts (REITs) so they don’t have to pay city, county, state, or federal taxes.

Speaking of privatization, Trump will soon explain his plan to hand over most of America’s infrastructure to his rich cronies. Airports, bridges, highway rest stops, and other facilities will become privately owned, so that the gap between the rich and the rest can be dramatically widened.

Trump refers to this theft as “modernization.” His scam calls for creating $200 billion out of thin air, and using it to offer bribes to state, county, or municipal governments that surrender their public facilities to the rich. Australia started doing this in 2014, and calls the theft “asset recycling.”

In addition to bribes, Trump will use threats, which he calls “leverage.” For example, he will threaten to impose a tax increase on gasoline, in order to force state, county, and municipal governments to hand over their public assets. The federal tax on gasoline is now at 18.4 cents per gallon. Trump will tell the nation, “The gas tax has not been raised since 1993, and the U.S. government needs that revenue!”  Trump will also threaten to impose Internet sales taxes if the peasants do not comply.

The national privatization scam is being drawn up by Trump cronies like Gary Cohn, a Goldman Sachs investment banker (and militant Zionist). Also overseeing the theft is billionaire developer Richard LeFrak.

High on the list of things they want privatized are airports and air traffic control systems. When these are run for profit, air travel will become very dangerous, while monetary costs for average people will skyrocket. Public highways will become toll roads, thereby increasing the costs of everything. Rural and distressed communities will die. National parks will be handed to the rich, and will be renamed for their new owners. And of course none of the new owners will have to pay any taxes on their new profits. Trump has already said this.

Trump will say that America’s infrastructure is falling apart, and can only be saved via privatization. And he will get away with this lie, because most people refuse to acknowledge what they already know: that the U.S. government can “print” as many dollars as it likes out of thin air. The masses will rationalize their stupidity and their poverty, telling themselves that public enslavement is “public improvement.”

Billionaire developer Ricard LeFrak says the masses will become “socialized” to paying tolls. LeFrak says the U.S. government should borrow large sums at today’s low interest rates (even though the U.S. government does not borrow its spending money, since the government creates  money out of thin air.)

 

 

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CHANGE OF TOPIC

The Counterpunch article above falsely blames Germany and the Troika for Greece’s economic depression, which is now the longest and the worst in world history.

The actual reason for the Greek depression is that [1] Greece has a trade deficit, which means that Greece has no net money coming in from outside and [2] the Greek government cannot create its own money out of thin air.

As a result the Greek government must borrow all its money. Therefore Greece has an ever-expanding debt load. Therefore average Greeks will continue to have more and more poverty and austerity forever.

Greece could end this nightmare by dumping the euro and going back to the drachma, but Greek politicians refuse to do that, since Greek politicians are on the bankers’ payroll. Therefore the blame for the Greek nightmare lies not with Germany and the Troika, but with Greek politicians, and with average Greeks who refuse to see this.

It is human nature to live in denial. Since we don’t like to admit that we are stupid and selfish, we claim to be innocent victims of others.

There are some groups in Europe that understand these truths. That is why they are called “evil.”

Are you a “fascist”?

Before I get going, I just want to say that I have no interest in Trump, “Russia-gate” and all that nonsense.

By the way, tomorrow (23 May 2017) the White House will release its federal budget, which will outline how many dollars the U.S. government will create out of thin air for FY 2018 (which starts on 1 Oct 2017)  and who will get them. The budget will call for cutting programs like food stamps, and cutting popular family benefits like the child tax credit, while increasing spending on wars and on weapons makers. This sounds ominous, but it’s just a proposal that will be greatly modified by the U.S. Congress. So I ignore most commentary about it.


Anyway the item below includes the question, “Why do we allow the logic of the market to occupy our minds?”

The article starts by accepting the lie that neoliberalism is about “markets.”

Neoliberalism is an elusive term, typically used to describe such processes as privatization, deregulation, the cutting back of social and welfare provision, the retraction of the state, and the idealization of free-markets.

No. Neoliberalism opposes free markets, since all individuals must have equality before they can participate in a genuinely free market. Neoliberalism favors rigged and controlled markets. It favors monopolies and oligarchies. It does not favor equality or Democracy.

Neoliberalism is not an ideology or an economic doctrine. It is robbery. It is part of the global drive to create a world of slaves who toil for a handful of owners, instead of working for each other. This is done by privatization, by deregulation (i.e. decriminalization of the rich, plus added regulations for average people), and by the elimination of social and welfare provision, so that average people are at the mercy of their owners.

Speaking of neoliberalism, Diana Johnstone has a pretty good post about the bankers’ installation of Emmanuel Macron as their puppet president in France.

France has been rotting for 18 years because of the euro. By the time Macron’s term ends in 2022, poverty and inequality in France will be as bad as Greece. Perhaps worse. This will cause social unrest in France. There will be populist voices on the right and left, which the wealthy and the semi-wealthy will condemn as “fascists” and “communists.” If social unrest becomes uncontrollable, the rich will simply order the politicians to declare war on some nation, plus martial law in France.

Macron was elected by France’s huge population of old people. Among voters over 65, he won 80% against 20% for Le Pen.  Marine Le Pen did best with the youngest age group, 18 to 24, winning 44% against Macron’s 56%.

This mirrors the USA, where older people favored Hillary, and younger people favored Sanders (until Sanders was torpedoed, and until Sanders sold out to the Democrat establishment).

Evidently we must wait until enough old people die before there can be any possibility of change.

Johnstone says that 83% of people from “superior socio-professional categories” (rich doctors, lawyers, financiers, etc.) voted for Macron, because they knew that Macron would protect their privileges, and would increase inequality.

Meanwhile in “categories populaires” (ordinary folk with less education) the vote was 53% in favor of Le Pen. Among workers it was 63% in favor of Le Pen.

One of the many odd things about the latest French presidential election is the rejoicing among foreign “leftists” over the fact that the candidate of the rich defeated the candidate of the poor. It used to be the other way around, but that was long ago.

Sick, isn’t it?

In Paris, the capital, 90% of people voted for Macron. This is natural, considering that real estate prices have pushed the working class out of Paris, whose population is now overwhelmingly what is called “bobo” – the bohemian bourgeoisie. In these milieux, no one would ever dare speak a positive word about Marine Le Pen.

It’s called gentrification. After World War II, affluent and semi-affluent people moved from city centers out to the suburbs. Today, higher-income people are moving back to the city centers, and are causing housing prices to skyrocket. Where there is no space to build new houses, higher-income people live in luxury condos, or in very-high-rent apartments.

To accommodate them, larger cities are devoting more and more of their budgets to creating beautiful new parks and other amenities, while poor people are left to starve in the outlying areas.

This phenomenon is global, and it is accelerating.

Thus, when people in affluent neighborhoods condemn populists as “fascists” and “communists,” they are actually condemning any challenge to their privileges.

Down the rabbit hole

I would ignore Ellen Brown’s errors if Ellen did not have so many disciples, and if her errors were not reprinted in so many “progressive” blogs.

Ellen’s latest post was reprinted at Counterpunch, plus Common Dreams, plus here and here and here and here and here.

Ellen believes that all money is created by banks as LOANS (except coins and currency notes). This is her fundamental error.  For Ellen and her disciples, there is no such thing as government spending; there is only government borrowing. According to this nonsense, every dollar in existence was lent into existence by some bank, or by the Federal Reserve.

Once you believe this lie, you fall into a rabbit hole that no one can save you from (except you). Ellen Brown fell into the rabbit hole when she chanced upon a paper (.pdf) from the Bank of England that was full of lies and distortions.

Before I discuss the paper, let’s repeat some basic facts…

Money is not physical. Money is a mental concept that can be noted with symbols (numbers) in bank accounts. If you have a check in your hand, the check is a piece of paper that does not become “money” until the check’s “face value” is credited to your bank account.

Coins and currency notes represent money, and can be used as money, but they are not technically money. They are bits of metal or paper.

Although real money only exists in bank ledgers (i.e. only exists in bank accounts) THIS DOES NOT MEAN THAT ALL REAL MONEY IS CREATED BY BANKS AS LOANS. Monetarily sovereign governments create money when they spend in their own currency, and not as loans.

If the U.S. government instructs your bank to credit your account (i.e. to change the numbers in your account) then new money is created without the money being a loan from the bank, or from the government, or from anyone else. If you receive monthly Social Security benefits, the benefits are not a loan. Your benefits are created out of thin air when the bank credits your bank account in accordance with instructions from the U.S. government. Repeat: benefits are not loans.

The U.S. government creates its spending money by crediting bank accounts. Likewise, banks create loan money by crediting bank accounts. If you obtain a $100K house mortgage from a bank, then the bank credits the account of the house seller by $100K, and also sets up an account for your mortgage debt, which you gradually reduce via payments.

This is simple, but Ellen Brown cannot grasp it, because she believes lies and distortions from the Bank of England. Here are some examples from that Bank paper (.pdf)

Banks do not act simply as intermediaries, lending out deposits that savers place with them, and nor do they ‘multiply up’ central bank money to create new loans and deposits.

In other words, the Bank of England says that fractional reserve banking is a myth. This is correct.

The amount of money created in the economy ultimately depends on the monetary policy of the central bank. In normal times, this is carried out by setting interest rates. The central bank can also affect the amount of money directly through purchasing assets or ‘quantitative easing’. Monetary policy acts as the ultimate limit on money creation.  

LIES. The Bank of England pretends that there is no such thing as government fiscal policy (which concerns how much money the government creates, spends, and taxes back). Instead, the Bank of England pretends that there is only bank monetary policy (which concerns interest rates).

This is one of those lies that people cling to because they simply like how it sounds.

Further on, Ellen rightly denounces Trump’s proposed “public-private partnership” to finance nationwide infrastructure repair.

(“Public-private partnership” always means privatization, which is always about profit, which always means ever-increasing fees combined with ever-decreasing quality.)

Ellen also rightly says that whenever politicians want to privatize something (i.e. give public assets to the rich) politicians defund the thing until the public screams for relief, even if it means privatization. This is why the U.S. national infrastructure is underfunded.

Unfortunately Ellen believes that the only way for the U.S. government to obtain money for infrastructure repair is to borrow it from banks. Here’s Ellen…

A dollar invested is a dollar lent, which must return to the bank (with interest) before it can be lent again.

Nonsense. Ellen previously admitted that banks create loan money out of thin air. Now she says that loan money must be paid back before the money can be again created out of thin air.

Contrary to conventional wisdom, money is not fixed and scarce. It is “elastic”: it is created when loans are made and extinguished when they are paid off.

True, but what about government spending and taxing? For Ellen, government spending means government borrowing.

The Bank of England report said that private banks create nearly 97 percent of the money supply today.

Stop. Ellen correctly says that only three percent of the money supply consists of coins and currency notes. However she erroneously thinks the other 97% consists entirely of bank loans. The U.S. government creates about $4 trillion each fiscal year out of thin air, and spends it (not lends it) into existence. (The government taxes back about 87.5% of that per year.)

The federal government could set up a bank on a similar model to the Bank of North Dakota. It has massive revenues, which it could leverage into credit for its own purposes.

Nonsense. If you could create limitless money out of thin air, like the U.S. government does, then you would not need to “leverage” your limitless money, or “create credit” with it.

Since financing is typically about 50 percent of the cost of infrastructure, the government could cut infrastructure costs in half by borrowing from its own bank.

Why should the U.S. government borrow at all? Why not just continue to spend money into existence by crediting bank accounts, as occurs now?

As I said above, I would ignore Ellen Brown’s foolishness if Ellen did not have so many disciples, and if her errors were not reprinted in so many “progressive” blogs.

 

Fairy tales

Most nations have their own national currency. Their central governments can create as much of their nation’s currency as they like out of thin air. If the nation’s currency is not accepted outside its borders, then the nation must obtain foreign currencies in order to buy imports from abroad. The nation does this by selling things to foreigners. If a nation has a trade deficit (imports more than it exports) then the nation must obtain foreign currency loans so the nation can keep buying imports.

The USA does not need foreign currency loans, since the U.S. dollars are accepted worldwide. Half of all international transactions are denominated in U.S. dollars. Every country has banks that will change U.S. dollars into local currencies.

The table below shows the most traded currencies on the Forex market, which is roughly the same as the most widely used currencies. The table may not be accurate (every Internet source gives different numbers) but we can reliably say that U.S. dollars are the most widely used currency in the world, and that British pounds are also widely accepted.

This means that the U.K. does not have to borrow foreign currencies in order to buy imports. A British buyer can use British pounds to buy almost anything worldwide, directly or indirectly. This is not the case with Angolan Kwanzas or Laotian Kips, or with any other currencies that are not widely accepted.

The U.K. government can create infinite U.K. pounds of thin air, but politicians lie, claiming that this is not so.

Neoliberal politicians lie because they want to cut social programs that help average people. Likewise “Democrat” (and “Labor”) politicians also lie, because they want the masses to think their only salvation is “Democrat” (or “Labor”) politicians.

Indeed, when Republican President Richard Nixon tried to enact universal Social Security in the USA (aka a basic income for all citizens) it was killed by Democrats who feared losing their power. Democrats know that as long as they keep the masses starving, the masses will beg “Democrat” (or “Labor”) politicians to “save them.”

If order to keep the masses starving and groveling, you must tell them that the bottomless well has run dry, and that the central government must rely on loans and on tax revenue. You must tell them that rich people should be taxed to “pay for” the central government — i.e. that rich people should give up some of their water to replenish the well (which is inexhaustible).

This brings us to the U.K., which on 8 June 2017 will have a General Election for members of parliament. Each of the 650 parliamentary constituencies will elect one Member of Parliament (MP) to the House of Commons.

In a quest for votes, the British Labour Party has released a “manifesto” that proposes to raise taxes on the rich to supposedly pay for expanded social services.

By calling for tax increases, “Labour” politicians pretend that the inexhaustible money-well has run dry, so the masses will grovel before their “saviors” (the Labour Party).

Conservatives and the corporate media outlets claim that the government “has no money” to spend on social programs. The Labor Party echoes this lie, and says it is the reason why the masses need the Labour Party, and why taxes must be increased (even though rich people pay no taxes in any case).

The lie continues because the peasants like to hear it. The lower you are on the ladder of wealth and power, the more you are likely to escape into delusions and fairy tales.

And speaking of delusions…


And regarding fairy tales, below we see Bernie Sanders claiming that the Russians “rigged” the U.S. presidential election.


 

 

 

 

Your daily helping

Every day the Counterpunch blog includes at least one helping of trash in its lineup. Today’s helping (above) is a reprint from the “Institute for Policy Studies” in Washington D.C. which is another of those bullshit “think tanks” (i.e. propaganda mills) that promote neoliberalism while posing as “progressive.” To maintain their pretense, they occasionally include a  truly progressive article among their mountains of lies.

The clown above says that social welfare policies in Europe are, “Now at risk because of a pincer attack by right-wing populism and neo-liberal globalism.”

That’s garbage.

The truth is that “right wing populism” is diametrically opposed to neoliberalism — especially regarding banking and economics.

Neoliberals defend the euro currency, because the euro makes austerity, privatization, and inequality inescapable in countries that use the euro, and which also have trade deficits (e.g. Greece, France, and Finland).

Meanwhile the so-called “right wing populists” like the National Front oppose the euro. They oppose inequality, banker tyranny, and the privatization of public assets. Hence they are labeled “fascists” (a term that is meaningless, but sounds good to idiots). If you oppose war, austerity, inequality, and banker tyranny, then you are evil. You are a racist, sexist, homophobic, anti-Semitic, far-right “fascist.”

Opposing the so-called “fascists” are neoliberals, who call themselves “moderates” and “centrists.” If you favor privatization, inequality, and banker tyranny, then you can call yourself a “centrist.” (In reality you are ultra-right-wing.)

For the corporate media outlets, whatever opposes neoliberal evil is “evil.” It is “far right.” It is “fascist.”

Whatever promotes neoliberal evil is “centrist.”

The clown above admits that the National Front’s program is pro-worker, but he calls it evil because…”fascists!”

Then the clown above condemns…

“authoritarians of the right (Vladimir Putin of Russia) and left (Nicolas Maduro of Venezuela).”

If you are a president who opposes neoliberal dictators, then you are “authoritarian” — i.e. you are a “dictator.”

Next, the clown above admits that the European Union is not democratic, and that it promotes inequality — but he praises the EU anyway, saying that progressives should support the EU so they can “reform it from within.”

And then the clown above shows that he is either a liar or a moron.

Leftist candidate Jean-Luc Mélenchon attracted a good number of supporters with his Keynesian proposals to inject 100 billion euros into the French economy, impose higher taxes on the rich, and increase social welfare programs. It was a bold, but expensive program.

Nonsense. As long as France has a trade deficit, the only way that euros can enter the French economy is as loans. This is why France is crippled by an ever-increasing debt load. The French government and economy must borrow all their euros from bankers who create euros out of thin air. It is not mathematically possible for France to have any kind of Keynesian “stimulus” programs. The French economy will continue to be crushed by debt and austerity until the French government dumps the euro and resumes creating its own currency out of thin air, like the French government did until 1 Jan 1999.

Just as bankers create loan money out of thin air, a monetarily sovereign French government would create its spending money (in its own currency) out of thin air. This would make the French government as powerful as French bankers.

France, Finland, and Greece have trade deficits. Thus, every “bailout” of these countries is simply an ECB reimbursement of the bankers who created euros out of thin air, and lent them to these three nations. Every “bailout” increases these nations’ debt loads. The debt load legitimizes more neoliberalism. More inequality, unemployment, poverty, and privatization.  Always more.

This is not an opinion. It is a fact. Anyone who denies it is a liar or a fool.  (Or is both, like the clown above.)

The situation with Greece, France, and Finland is exactly like an individual living totally on a credit card. A bank issues the credit card, and is continually paid off by a higher bank, while the individual who uses the card is continually indebted, worse and worse. In order to keep the credit card going, the indebted individual must surrender more and more of his blood to vampire financiers — until the individual dies.

The “fascists” understand this. The National Front (FN) is anti-euro. So is the French political party Debout la France (“On your feet, France”). So is the Freedom Party of Austria, and the Flemish Interest party in Belgium.

Actually most euro-zone nations have anti-euro groups, and they are steadily gaining ground as Europe’s masses fall ever-further into poverty, and become ever-more aware of the euro-scam.

Clearly the bankers could not let Marine Le Pen become president, since Le Pen threatened the euro-scam. She threatened the bankers’ tyranny. So in the 7 May 2017 election the bankers installed one of their own (Emmanuel Macron) who is pro-euro, pro-Israel, pro-war, pro-neoliberalism, and pro-every-other-evil you can think of. Macron will keep the euro-scam going a while longer.

Since the masses are starting to wake up to the truth, the bankers’ strategy is to sponsor fake leftists like the clown above, and also to infiltrate the so-called “fascist” groups in order to make them do an about-face and support banker tyranny. The bankers must replace nationalists with globalists. The bankers must get rid of anti-euro people like Marine Le Pen (the National Front’s leader), plus Florian Philippot (the National Front’s vice-president) and Gaetan Dussausaye (head of the National Front Youth).

How will the bankers do this? The same as always. The bankers will offer money and power to ambitious and corrupt mid-level members of the “fascist” groups, telling them, “If you support us, and make your group do an about-face, we will install you as the leader of your group, or nation.”

The bankers will bribe people like Gilbert Collard, who is a French MP and is part of the National Front’s inner circle. Collard says…

“For us, the question of the euro is over. The people held their referendum last Sunday. Marine Le Pen must listen to that message.”

That is, Mr. Collard says the National Front (FN) must do an about face. It must support the euro and the bankers. It must get rid of its leaders. It must replace patriots with neoliberals, and humans with debt slaves.

Gilbert Collard is one traitor to the National Front (FN), and to average people in France. Another traitor is Robert Menard, a mayor in the southeast who was elected in 2014 with FN support. Robert Menard says the FN needs “an adjournment” on the euro issue, and that, “victory depends on it.” (That is, victory” depends on total submission to the bankers.)

Another traitor is Pascal Gannat, an FN regional councilor, who told France Bleu radio that Marine Le Pen’s anti-euro stance was a “scarecrow” for both left-wing and right-wing voters. (That is, the National Front’s call for freedom and independence supposedly “scares” French voters.)

And then there is Marine Le Pen’s father Jean-Marie Le Pen…

Marine Le Pen’s estranged father Jean-Marie Le Pen, founder of the National Front, said on RTL radio last Sunday that his daughter’s euro stance was largely to blame for her defeat.

(The above words could have been quoted out of context. Jean-Marie Le Pen might have meant, “The bankers installed Macron because Marine Le Pen opposed the euro.”)

NOTE: A standard rule of bankers and neoliberals is, “If you can’t control the masses with bullshit, control them with the herd instinct.” You must claim that “Everyone is on my side, except a handful of conspiracy theorists.”

Here’s an example from Reuters

While most National Front supporters back a return to the French franc, opinion polls indicate that three-quarters of French voters want to keep the euro, including many older voters who fear their euro-denominated pensions could be devalued.

To repeat, “If you cannot control the masses with bullshit, then control them with the herd instinct.” This works very well, since humans tend to go with the herd, whose bullshit becomes “true” for us.

Of course, members who go with the herd deny that they go with the herd.

“Only conspiracy theorists question whether vaccines are safe and effective.”

“Only conspiracy theorists question whether Nazi Germany gassed six million Jews.”

Then the clown above says that progressives must be anti-Russian, like the warmongers and neoliberals.

It was startling in the French elections that the only candidates to reject Vladimir Putin were Emmanuel Macron and the Socialist Party’s Benoit Hamon.

Less comprehensible was the position of Melenchon, who had nothing critical to say about Putin’s domestic policies of silencing critics or foreign policies of seizing territory, backing dictators, and hacking into elections in other countries.

If order to be a good “progressive,” you  must support imperialistic war. You must cheer for “humanitarian” bombing. You must howl for the destruction of anyone that the bankers label a “dictator.” In short, you must adopt anti-progressive policies.

As I noted before, propaganda mills are paid by the rich to promote neoliberalism while they call themselves “progressive.” (The “Institute for Policy Studies” has a yearly budget of $3.1 million.)

I wonder: do the bankers also pay Counterpunch to reprint the same trash?

Are rich people stupid?

Before I get to the topic of this post, I note that the hysteria surrounding North Korea has become comical. The items below are exaggerations, but only slightly.


Sadly, most people believe this kind of garbage. This includes most “progressives” and “anti-war” people. They echo the Empire’s lies, while trying (and failing) to “spin” the lies in a “progressive” fashion.  It’s pathetic.


Anyway our question for today is, are rich people weak and stupid?

We know they are not weak, since money is power. What about stupid? Rich people tend to vote for their own interests, while poor people tend to vote against their own interests. For example, when poor people call for federal taxes to be raised, poor people uphold the lie that the U.S. federal government needs tax revenue.  In so doing they justify politicians cutting social programs that help poor people. Clearly rich people are not weak and stupid, at least when compared to poor people. Keep that in mind…

If you Google the words affluent + vaccination, you will find many different articles  from many different sources, all of which unanimously agree that, statistically speaking, a person’s refusal to submit to vaccination increases with a person’s wealth and social power.

Logically the reverse is also true: statistically speaking, a person’s faith in vaccines increases with a person’s poverty. In this I am referring to average people. Not doctors on Big Pharma’s payroll. Not the talking heads in the corporate media outlets. Not the bought-and-owned professors and politicians.  No, average people. Statistically speaking, the poorer people are, they more vax-submissive they are. The richer people are, the more vax-resistant they are. This is a fact.

Some examples (links embedded)…

Why do rich people refuse to vaccinate their kids?

Why are the rich most likely to not vaccinate their children in the US?

Why Do Affluent, Well-Educated People Refuse Vaccines?

Why Some Rich, Educated Parents Avoid Vaccines

Wealthy L.A. Schools’ Vaccination Rates Are as Low as South Sudan’s [This is one of numerous articles which note that the richer a community is, the less its people believe that vaccines are safe and effective.]

Barriers to Immunization in a Relatively Affluent Community

Rich, White and Refusing Vaccinations [People who rest vaccination tend to be white, well-educated and affluent.]

California’s rich, white unvaccinated kindergartners

Rich, educated, and stupid parents are driving the vaccine crisis

You can find many more examples by Googling the words affluent + vaccination.


 The articles I noted above (about rich people refusing vaccines) were mostly published from mid-2013 to mid-2015, and were part of an experiment that failed. By mid-2013 millions of people had awakened to the dangers of vaccines. Big Pharma and its minions tried to silence critics by making the lower classes angry with the rich for “getting away with” escaping vaccination. (Just today there was an article in the Washington Post titled When it comes to vaccines, rich parents get away with child neglect.)

The experiment didn’t work. Big Pharma forgot that when the rich people or corporatons screw the poor,  the poor do not attack the rich. Instead, the poor attack each other. For example, in 1863 the U.S. Congress passed laws that drafted Americans for the U.S. Civil War. However you could buy your way out of the draft by paying $300 (equivalent to $9,157 in 2017). This caused great resentment among average people, few of which had $300. But instead of resenting the politicians who drafted them, or the rich people who avoided the draft, poor whites resented Blacks, who had nothing to do with the draft. The result was the New York City draft riots, in which white gangs lynched large numbers of Blacks in New York City, and burned their homes.

To repeat: when the rich screw the poor, the poor attack each other. Rather than eat the rich who starve them, the poor devour each other — or else they attack people who are even poorer than they are.

When articles about rich people refusing vaccination did not boost vaccination rates (and therefore failed to boost Big Pharma’s profits), Big Pharma began bribing politicians in state legislatures to pass mandatory vaccination laws, starting with public school students.  Rich kids, of course, are exempt in private schools. How do I know this? Simple logic…

[1] Rich people resist vaccination for themselves and their kids.

[2] Politicians work for rich people.

Therefore…

[3] Politicians do not enforce mandatory vaccination laws on the rich.  Big Pharma makes its vaccine profits by exploiting the lower classes, who are far more submissive to authority than are the rich.

Therefore if you are an average person who champions vaccines, and who calls for the punishment of average people who resist vaccines, you are a stupid peasant.  You are one of the cattle.

Among conventional (i.e. allopathic) doctors, 99% are mere technicians for Big Pharma. They spend most of their time administering vaccines, and writing drug prescriptions. The 1% who resist being bullied by Big Pharma and its minions are always and invariably found in the most affluent communities of each state. Their patients are rich, and their patients agree with the doctor who recommends against vaccines.

Doctors in an average communities know that if they fail to recommend vaccines, the state health board will revoke their medical license.

For example, in 2015, Dr. Jack Wolfson (a cardiologist in Arizona) gave interviews to several lie factories such as CNN, in which Dr. Wolfson explained the dangers of the vaccine scam.  In retaliation, the Arizona State Board of Health put Dr. Wolfson under investigation — but when they learned that Wolfson’s practice was in the single most affluent community in all of Arizona (a place called Paradise Valley) they immediately dropped the case.  Wolfson was rich, and so were his clients.  They had political power, and they refused to be vaccinated. There was nothing that Big Pharma and its toadies could do.

If Wolfson had been an average doctor in an average community, the state medical board would have destroyed him as an example to all other doctors in average communities. And Wolfson’s patients would have applauded, since average people love the vaccines that cripple and kill them.  In the USA, vaccines are part of average people’s culture in which all problems can be solved by a pill, a vaccine, a gun, or a nuke. Are poor people getting sick? Don’t improve their hygiene, nutrition, and sanitation. Vax ’em! If vaxxing doesn’t work, vax ’em some more! If vaxxing still doesn’t work, vax ’em some more! Always more!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vaccine fanatics claim that vaccines only work if everyone is vaxxed. If they really believed that, then they would insist that rich people get vaccinated like everyone else. But they don’t insist. Why? Because, among average people, vax mania is not about health. No, it’s about venting one’s general anxieties at the people around you. It’s about compensating for helplessness and inferiority by attacking people around you. “He didn’t get the shot! KILL HIM!”

Among average people, vax mania is about hate. (For Big Pharma its about profits. For politicians it’s about power over the masses.)

This is why, among average people, vax fanatics see no contradiction between [1] supporting a woman’s right to choose abortion because she has authority over her body, and [2] forcing women to get vaccinations (“for the good of society”).

They see no contradiction between [1] condemning the forced sterilization of the 1920s and ’30s, or the Tuskegee medical experiments infecting black inmates with syphilis, and [2] insisting that everyone but the rich get vaccinated.

Rich people don’t submit to Big Pharma’s vaccination scam. Why should you?