News & Analysis
The Farce of Government 'Growth'
Growth is a priority in eurozone, say leaders ... France and Germany have said boosting economic growth across Europe was a priority in efforts to stem the debt crisis showing signs of spreading across the 17 euro currency countries. After a Berlin meeting with French President Sarkozy, German Chancellor Angela Merkel urged Greece and its private creditors to agree to the restructuring of the country's national debt if it is to receive its next batch of bailout cash. In October the eurozone agreed a second handout for Greece that involves the country's private creditors accepting a 50% reduction in the value of their holdings of Greek debt. She added that both she and Mr Sarkozy want Greece to receive the money. "We want for Greece to remain in the eurozone," she said. – UK Telegraph
Dominant Social Theme: Nothing else can act as an engine of job growth more effectively than big government.
Free-Market Analysis: Thank goodness Germany's Angela Merkel and France's Nicolas Sarkozy have agreed to save the Western world by creating more jobs. Unemployment is anathema to them and now they have vowed to provide people in Europe with the work they need. They also want Greece to stay in the Eurozone.
OK, sarcasm off. This is surely a power elite dominant social theme, that government can "create" jobs. Actually, what government can create is sinecures. And it can only offer a benign business environment once it has taken steps to ruin what is already in place.
The marketplace creates jobs that actually add value. And if government can claim to create jobs it is only by reducing taxes, regulation or price inflation in such a way as to allow the private market itself to operate more efficiently.
Nonetheless, this doesn't stop politicians from claiming to create jobs, nor does it stop the bought-and-paid-for media from parroting the claim without ever investigating it. In the American presidential campaign this has become a big issue, with Mitt Romney trumpeting his job creation stats while others question them.
But the larger issue of government job-genesis goes unquestioned, except by the alternative 'Net media, which is where the task of real journalism now takes place. The Internet Reformation itself (as we have called it) continues to speak truth to power, though these days the "truth" is apt to be found electronically rather than on the printed page.
The same thing has just happened in Europe. Sarkozy and Merkel emerged from a meeting of some kind proclaiming that jobs are their priority. US President Barack Obama has said the same thing. Good. Let them explain how they will exercise this priority.
The only way they can justify their outlandish claims is by explaining they will reduce something that government has already put in place or by taking funds and aiming at certain industries and individuals. If this latter alternative is what they have in mind, then they are not "creating" jobs so much as transferring wealth from those who gathered it initially and providing it to those who did not and may not know how to utilize it.
That's all, folks. No other way to "grow" the economy. Either reduce the damage that government has already done or redirect wealth from the industrious among us to the less industrious.
There is, some might argue, one more way that government can create wealth and that is via the military. But in our view, that doesn't count. Destroying stuff is not a very cost-effective way of upping employment.
Besides, the government collects tax dollars in order to support the soldiers it hires. Thus revenue is merely redirected from the civilian population to the military establishment. Sounds more like a tithe than anything else. Here's some more from the article:
Germany has insisted on austerity measures in the so-called eurozone's fight to lower budget deficits and regain investor confidence. Europe is working to hammer out a new treaty enshrining tougher fiscal rules, which leaders agreed at a summit in early December.
Mrs Merkel added that resolving the crisis will be "step-by-step ... there's no single- dimension solution". They also said that Europe should compare countries' labour market practices and learn from the best, and for European funds to be used to create jobs.
France and Germany are working to draw up new budget and fiscal guidelines by March to contain a debt crisis threatening to engulf the eurozone. Greece, whose sovereign debt problems sparked the current crisis, is struggling to impose austerity measures needed to secure a second bailout to ensure that it does not default.
We can see in this excerpt an elaboration of the "government can create jobs" meme. In this case, Merkel and Sarkozy are cast as sympathetic supporters of Greece and the struggles of the Greeks to survive an almost totally collapsed economy.
The reason the Greek economy collapsed was because the Greeks were subjected to an intense propaganda campaign to join the "new" EU and participate in the profitable spoils that the euro would provide.
The idea was not lost on canny Greeks that their borrowing power would go up if they were perceived as part of a mighty industrial machine led by the German business dynamo itself. And thus, the pact with the Devil was made.
As canny as Greeks are, the Eurocrats and bankers – and the great central banking families they apparently report to – are cannier. They not only inveigled the Greeks into the EU but the Irish and numerous Eastern European countries as well.
The proximate cause of this Euromania was the elite's affection for what the Eurocrats were offering. In every case, it seems, the invited states were made aware that various funding was available to stabilize questionable economies.
This was nothing, in retrospect, but a bribe. The top elites of each country received billions of euros to "rationalize" their economies in order to make them competitive with Northern European economies.
The elites of these Southern economies did exactly what was expected. They campaigned hard to ensure their countries joined the EU and they took the pro-offered money and pocketed it, leaving behind only a string of cooked books.
Today, Southern European taxpayers will pay for the riches their elites pocketed. And it is left to Merkel and Sarkozy themselves to prattle on about austerity and how the Greeks and citizens of other "profligate" countries will have to partake of "austerity" as they slowly realize the error of their ways and scratch their way back to prosperity again.
This bait-and-switch is no better than the "jobs" meme itself. Nothing is what it seems when it comes to international finance and the relative health of economies. The only constant is the power elite itself and the necessity that it sees in creating world government.
Everything is to be sacrificed to the New World Order – and mostly the truth. The Anglosphere power elite behind this nonsense NEEDS government to continue forcing the world toward centralization. It does so via mercantilism, controlling the government behind the scenes.
If government is seen as ineffective – let alone useless – then the elite's main levers of control shall be rendered ineffective. Thus the tremendous emphasis via agents like Sarkozy and Merkel to ensure that governments' ability to create prosperity remains unquestioned, at least according to the mainstream media that the elites own.
Government, in fact, cannot create a thing. It does not keep the peace. (It is an engine of war). It does not initiate justice. (It is a purveyor of murderous injustice). It certainly does not create prosperity. (It is a producer of inflation, taxes and regulatory ruin).
Conclusion: Merkel and Sarkozy may sing the same tune when it comes to celebrating the prosperity that government provides. The EU itself tells another, sorrier, tale.
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Posted by Agent Weebley on 01/15/12 01:40 PM
You need to enter the War Drobe, feel the furs brush past your face . . .
. . . then enter Blarnia . . .
Note: this is an IT/TI bitty morsel of the future.
Click to view link
Posted by taxesbyanyothername on 01/14/12 08:55 PM
I never get these things Weebley. Just completely lost.
Posted by Agent Weebley on 01/12/12 09:43 PM
I answered you on another thread. Why? I don't know.
This is what I wrote at the time:
Oh, and taxesbyanyothername, you funny! . . . but it is not up to me: Click to view link
Posted by taxesbyanyothername on 01/12/12 09:21 AM
I almost fell out of my chair Weebley. You don't do stand up do you?
Posted by Agent Pete 8 on 01/11/12 11:21 PM
OK, sorry Col, I didnt see the [sarcasm] [/sarcasm] tags.
Posted by Agent Weebley on 01/11/12 10:30 PM
Click to view link
You're killing me softly with your songs about the FED and pre/post Bretton Woods as some sort of justification . . . . or is it justifiction? for your (RBD) Real Ballsy Doctrine, but, all kidding aside, you've gotta help me get out of the mental bind I put myself in with your guidance the other day over at the Catherine Austin Fitts "Red Button" Thread.
LABOUR SAVING DEVICES SAVE NO LABOUR? YOU SAID IT, BUDDY!
I believed you . . . just for a minute . . . then . . . all of a sudden I was living it . . . trapped in NetZeroIngoLand!
Then, expectedly, you didn't post for 3 days . . . now you are posting here . . .
. . . effectively leaving me stuck over there forever!
So there I now sit, strumming my pain with your unmoving fingers, singing your life with my words, killing me softly with your song . . . killing me softly!
Talk to me, Ingo . . . about how gold must be completely stable . . . to the point of it making no sense . . . for your world to make sense . . . it will help free me.
So . . . buddy . . . please go there to talk physics with me . . . otherwise, I'll have to rationalize myself right outta NetZeroIngoLand . . . and you wouldn't want me to do that without your guidance, would you?
Click to view link
Posted by Bischoff on 01/11/12 05:02 PM
Yes, since 1935, the FED is a central bank which creates irredeemable currency by monetizing congressional budget deficits. The big banks with their branch banking system are private entities, dependent on the FED for earning their profits by distributing and circulating the "irredeemable" currency created by the FED as an independent agency of the U.S. government.
The present FED stands in contrast to the pre-1935 FED which was an association of twelve independent, regional reserve banks, franchised by the Congress to create a national "redeemable" currency under the Real Bills Doctrine for their member banks with supervision by the U.S. Congress.
Posted by Col on 01/11/12 02:59 PM
Apparently humor is lost on you also.
Posted by Col on 01/11/12 02:57 PM
oh brother, that one went straight over your head didn't it, re-read it.
Posted by DwightJohnson on 01/11/12 01:05 PM
Government DOES create things, just nothing useful. It creates wars, poverty, injustice, and serfdom on a grand scale. It is destructive without being creatively destructive.
Seriously, a very good and informative read.
Posted by dave jr on 01/11/12 09:09 AM
Government can create jobs, but so could the plantation. What government can not do is compensate workers. But we accept its coupons, honor its coupons; thus willingly live by government decree and wonder how our freedoms are lost.
Posted by Abu Aardvark on 01/11/12 07:44 AM
Gee, I found a nice HuffPo-article for you. You'll love it ...
"Grow up, Ron Paul"
Click to view link
Reply from The Daily Bell
We saw this terrible thing. Thanks!
Posted by amanfromMars on 01/11/12 06:44 AM
"If government is seen as ineffective - let alone useless - then the elite's main levers of control shall be rendered ineffective." ... .. They are so seen and thus are their days of control with money and elitists over.
And across the pond, in Uncle Sam's putrid backwater, is the rot and destruction even more pronounced ... ... . Click to view link
And what sort of an arrogant ignorant joker would believe it possible to justify ... ... .[b]We caution, however, that although policy action in these areas could facilitate the recovery of the housing market, economic losses will remain, and these losses must ultimately be allocated among homeowners, lenders, guarantors, investors, and taxpayers.[/b]
In earlier times such fool tools would have had their necks stretched, a'dangling from a tall tree.
Posted by Agent Pete 8 on 01/11/12 05:00 AM
Ingo, aren't these so-called "government run central banks" actually private though?
Posted by clark on 01/11/12 02:54 AM
Ol Grey Ghost wrote, "The governments of the world are not "overweight" with debt; they're "undertall."
Haha, that's funny. Thanks for the lol I needed it. Puts things into perspective too.
Bischoff wrote, "Governments cannot create productive jobs."
Sad thing is, lots of People think that's funny too.
And, it appears they cannot read,... or don't want to.
CBO Says Federal 'Investment' Doesn't Create Economic Growth
Click to view link
I imagine their eyes glaze over whenever someone says anything remotely like what Bischoff or the DB wrote so it's no surprise my local paper was proclaiming the benefits of state government spending to stimulate the area, People here just eat it up with glee,... or salivate with the prospect of getting theirs too.
Jeanna wrote, ".. send them to live in Haiti."
In a way, Haiti sounds like the unitedstate.
A lot of People in my area work in factories making parts for the war machine, to them, the jobs are real and they don't want anything to get in the way of that. How to convince them otherwise is not an easy thing, if it's even possible. And, some of them think it's a good thing that they should get three PAID hours off per day to exersize.
Isn't that something everyone should expect from an employer? ... sarc off/
Posted by Jeanna on 01/11/12 02:10 AM
"the prosperity that government provides"... .. send them to live in Haiti. That should satisfy their every desire to see the ultimate job creator, where no one has anything unless they work for the government. And, this is their goal... only the ones who work for them will have anything, and they then control those who have not by the marauding bureacrats who steal what little may be left as the daily whim decrees.
Posted by fabien_hug on 01/10/12 08:18 PM
I read today in Le Temps about a book by Johannes Kunz "Der letzte Souveraen und das Ende der Freiheit, Internationale Politik und buergerliche Rechte", NZZ Verlag. Could you get an interview?
Posted by Bischoff on 01/10/12 06:03 PM
Government is a service. It does not create wealth. You need wealth to pay for services.
Wealth is created by private, productive businesses. It is wealth created in the private sector which allows for the purchase of services, be that a hair cut or police services.
To allow private businesses to produce in a modern economy, a monetary system is needed. The monetary system and the currency it uses can either be controlled by private, productive businesses and an independent commercial banking system, or it is controlled by a government run central bank and a dependent private banking system.
The monetray system is controlled by private productive businesses, if independent commercial banks discount Real Bills drawn by businesses and create a redeemable currency against it. This currency is non-inflationary. It has a positive value. It is sustainable into perpetuity.
The monetary system controlled by a central bank uses government debt to monetize it into an irredeemable currency. This currency circulates debt based currency through a dependent private banking system. It has a negative value. It is inflationary and unsustainable over time.
The DB Staff Report fails to point out that Keynesian and Friedmanite monetary policies are bogus. They cannot create work in the long run. Governments cannot create productive jobs.
All government can do is to use its central bank to direct funds to stimulate local economies based on its choosing. This type of central planning distorts real economic activity over time and robs the local economies of private initiative and investment.
The Staff Report makes no mention of how the government run central bank, be it the FED, ECB, BOJ or BOC, uses a captured banking system to distribute and circulate central bank currency.
Posted by Bischoff on 01/10/12 05:07 PM
First, you have to understand the FED type of central banking system replicated with the ECB, BOJ and BOC.
Second, you have to understand compound interest, and the effect this exponential function has on overall debt over time.