10/01/2012 The Farce of Government ‘Growth’

The Farce of Government ‘Growth’

Tuesday, January 10, 2012 – by Staff Report

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.

Mainstream Media

While mainstream media (as opposed to the Internet and more traditional delivery systems of alternative media, which is usually run by small companies and entrepreneurs) seems quite vibrant and widespread, it is actually consolidated and tightly held. Globally, according to the New Internationalist magazine (and website), large media conglomerates include: Viacom, CBS Corporation, Time Warner, News Corp, Bertelsmann AG, Sony, General Electric, Vivendi SA, The Walt Disney Company, Hearst Corporation, Organizações Globo and Lagardère Group.

While such lists fluctuate, each of the above own media properties – television, cinema, book publishers, magazines and newspapers – in dozens of companies. It is estimated that just four companies – Time Warner, News Corp, Bertelsmann AG and Walt Disney – control over 50 percent of all major media properties. Populations in the West (and the rest of the world) can effectively be swayed by the messages that these four media giants are sending, not that these four are alone in their efforts. This provides enormous control as messaging can be sent out on a relatively consistent basis, reaching billions within a very short period of time.

Many of the messages that are provided to the West and the rest of the world tend to reinforce the dominant social themes of the Anglo-American power elite. In fact, it has been argued that the Anglosphere itself (a tightly knit group of banking families) controls these giant media enterprises at an arm’s length. What is certainly true is that mainstream media tends to promote the fear-based propaganda in which the elites specialize. Such fear-based promotions are intended to push Western middle classes to give up wealth and power, which is then assumed by the elites’ internationalist institutions.

It can certainly be speculated that the Anglo-American-controlled mainstream media has been consolidated for purposes of realizing ever-closer global governance and that this is the underlying messaging around which all media, from books to movies to magazines, is built. It is only with the advent of the Internet that this monolithic messaging has gradually been fractured and thus it is no coincidence that much of the messaging provided by mainstream media is now in some trouble.

Additionally, mainstream media has lost considerable credibility as people have read analyses on the Internet and begun to realize that much of what mainstream media provides in terms of information is ultimately internationalist-biased and often consisting of half-truths. As a result, even major “respected” organs of the mainstream, especially in the US, have come on hard times. Newsweek, the New York Times and BusinessWeek, to name just three high-profile media properties, have suffered terribly. Newsweek was sold for a dollar, BusinessWeek for not much more apparently, and the New York Times had to receive an emergency loan to stay afloat.

It is not clear what will salvage the fortunes of mainstream media when it comes to regaining credibility and popularity, but it is certain that the Anglo-American elite will continue to pour vast resources into even the most miserable, high-profile mainstream media entities as controlling share-of-mind is the single most critical advantage that the power elite has in its quest to create a new world order.

http://thedailybell.com/3477/The-Farce-of-Government-Growth

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).

Posted by Agent Pete 8 on 01/11/12 05:00 AM

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.

Ingo, aren’t these so-called “government run central banks” actually private though?

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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/

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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.

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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?

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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.

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Posted by Bischoff on 01/10/12 05:07 PM

Posted by memehunter on 01/10/12 04:01 PM
In the context of this article, it is also pertinent to ask the following questions: Why is the debt of European governments running so high? In other words, why do governments accept to pay interest to a private bank cartel to issue their fiat currency?

Interest charges are now a major part of the total debt contracted by most Western nations. In Canada, in 1993, 91% of the total debt accumulated since 1867 (beginning of the Canadian confederation) consisted of interested charges. The numbers are likely similar for other Western nations.

The forced expansion of the government involvement into the economic sphere is at least partly a consequence of this debt crisis. Indeed, Margrit Kennedy wrote the following in 1995, but it is likely applicable (and even more relevant) to the current situation:

“A 1,000% expansion of private and public debt occurred
in the U.S.A. during the last 33 years, the largest share
coming from the private sector. But every resource of the
Federal Government was utilized to spur this growth: loan
guarantees, subsidized mortgage rates, low down-payments,
easy terms, tax credits, secondary markets, deposit
insurances, etc. The reason for this policy is that the only
way to make the consequences of the interest system
bearable for the large majority of the population is to create
an economic growth which follows the exponential growth
rate of money – a vicious circle with an accelerating,
spiraling effect.”

[M. Kennedy, Interest and Inflation-free Money]

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.

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Posted by Bischoff on 01/10/12 05:01 PM

Posted by seer on 01/10/12 02:00 PM
Under the FED system, money must continually be created to service the debt based economy. This requires unlimited energy and other natural resources which are finite. Thus it is not possible to continue the exponential growth we have seen in the last 60 years. Check out Dr. Albert Bartlett on youtube. He once said: “… the greatest shortcoming of the human race is the inability to understand the exponential function.”

Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist. Kenneth Boulding ( 1910-1993)

The Barlett quote: “… the greatest shortcoming of the human race is the inability to understand the exponential function.” is quite apropos in connection with the FED central banking system, except that it has little to do with energy or natural resources.

The exponential function applied to the FED has to do with the compound interest which is generated by monetizing debt and then including the interest expense in next years budget deficit which again is monetized.
Compound interest, as an exponential function, will explode the overall debt when the compound interest curve intersects the linear growth of debt.
After that, there is no return. We have passed the point on “NO RETURN”.

Your other quote: “Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist.” applies to every administration during the last four decades.

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Posted by Ol’ Grey Ghost on 01/10/12 04:54 PM

The governments of the world are not “overweight” with debt; they’re “undertall.”

Click to view link

They also need a serious colon cleansing…

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Posted by Agent Pete 8 on 01/10/12 04:09 PM

Posted by Col on 01/10/12 12:29 PM
I am so tired of the DB’s negativity …

The entire Western World is creating tens of thousands if not hundreds of thousands of jobs daily. In fact through their strong Leadership the Elites are creating Millions of “Artisans” yearly, Artists who “draw” Unemployment Benefits, Welfare Cheques & Food Stamps.

So the solution is?

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Posted by memehunter on 01/10/12 04:02 PM

Posted by memehunter on 01/10/12 04:01 PM
In the context of this article, it is also pertinent to ask the following questions: Why is the debt of European governments running so high? In other words, why do governments accept to pay interest to a private bank cartel to issue their fiat currency?

Interest charges are now a major part of the total debt contracted by most Western nations. In Canada, in 1993, 91% of the total debt accumulated since 1867 (beginning of the Canadian confederation) consisted of interested charges. The numbers are likely similar for other Western nations.

The forced expansion of the government involvement into the economic sphere is at least partly a consequence of this debt crisis. Indeed, Margrit Kennedy wrote the following in 1995, but it is likely applicable (and even more relevant) to the current situation:

“A 1,000% expansion of private and public debt occurred
in the U.S.A. during the last 33 years, the largest share
coming from the private sector. But every resource of the
Federal Government was utilized to spur this growth: loan
guarantees, subsidized mortgage rates, low down-payments,
easy terms, tax credits, secondary markets, deposit
insurances, etc. The reason for this policy is that the only
way to make the consequences of the interest system
bearable for the large majority of the population is to create
an economic growth which follows the exponential growth
rate of money – a vicious circle with an accelerating,
spiraling effect.”

[M. Kennedy, Interest and Inflation-free Money]

Typo:

Should read “consisted of interest charges”, not “interested charges”.

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Posted by memehunter on 01/10/12 04:01 PM

In the context of this article, it is also pertinent to ask the following questions: Why is the debt of European governments running so high? In other words, why do governments accept to pay interest to a private bank cartel to issue their fiat currency?

Interest charges are now a major part of the total debt contracted by most Western nations. In Canada, in 1993, 91% of the total debt accumulated since 1867 (beginning of the Canadian confederation) consisted of interested charges. The numbers are likely similar for other Western nations.

The forced expansion of the government involvement into the economic sphere is at least partly a consequence of this debt crisis. Indeed, Margrit Kennedy wrote the following in 1995, but it is likely applicable (and even more relevant) to the current situation:

“A 1,000% expansion of private and public debt occurred
in the U.S.A. during the last 33 years, the largest share
coming from the private sector. But every resource of the
Federal Government was utilized to spur this growth: loan
guarantees, subsidized mortgage rates, low down-payments,
easy terms, tax credits, secondary markets, deposit
insurances, etc. The reason for this policy is that the only
way to make the consequences of the interest system
bearable for the large majority of the population is to create
an economic growth which follows the exponential growth
rate of money – a vicious circle with an accelerating,
spiraling effect.”

[M. Kennedy, Interest and Inflation-free Money]

Login To Reply

Posted by seer on 01/10/12 02:00 PM

Under the FED system, money must continually be created to service the debt based economy. This requires unlimited energy and other natural resources which are finite. Thus it is not possible to continue the exponential growth we have seen in the last 60 years. Check out Dr. Albert Bartlett on youtube. He once said: “… the greatest shortcoming of the human race is the inability to understand the exponential function.”

Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist. Kenneth Boulding ( 1910-1993)

Login To Reply

Posted by Col on 01/10/12 12:29 PM

I am so tired of the DB’s negativity …

The entire Western World is creating tens of thousands if not hundreds of thousands of jobs daily. In fact through their strong Leadership the Elites are creating Millions of “Artisans” yearly, Artists who “draw” Unemployment Benefits, Welfare Cheques & Food Stamps.

Login To Reply

Reply from The Daily Bell
Ha, sorry. We will try to be more positive generally about the blessings flowing from DC and Brussels …

One response to “10/01/2012 The Farce of Government ‘Growth’

  1. http://thedailybell.com/3477/The-Farce-of-Government-Growth

    THE OTHER- ALAN WATT…

    yinyangnature on 12 Aug 2010

    The following is from another speech given by Alan Watts entitled “From Time & Eternity”.

    *”Do you remember the Great Depression? One day everything was going all right. Everybody was pretty wealthy and had plenty to eat. The next day everybody was in poverty. What had happened? Had the fields disappeared; had the dairy vanished into thin air; had the fish of the sea ceased to exist; had human beings lost their energy; their skills and their brains?

    No, but on the morning after the Depression a man came to work building a house and the foreman said to him “Sorry chum you can’t work today, there ain’t no inches.” He said “What do you mean there ain’t no inches?” “Yeah” he said, “Yeah, we got lumber, we got metal, we even got tape measures.” The foreman said “The trouble with you is you don’t understand business. There are no inches. We have been using too many of them and there’s not enough to go around.”

    Because what happened in the Great Depression was a slump in money. Human beings are so unbelievably stupid, that they confused money with wealth. They don’t realize that money is a measure of wealth, in exactly the same way that meters are a measure of length. They think it is something that is valuable in and of itself. And as a result of that get into unbelievable trouble, in exactly the same way time is nothing but an abstract measure of motion.

    And we keep counting time. We have the sensation time is running out, and we bug ourselves with this as we sit and watch the clock. Supposing you are working, are you watching the clock? If you are, what are you waiting for? Time off? Five o’clock, we can go home and have fun? Yeah, fun. What are you going to do when you get home? Have fun? Or are you going to watch TV, which is an electronic reproduction of life which doesn’t even smell of anything and eat a TV dinner which is a kind of a warmed over airline nastiness until you just get tired and have to go to sleep. You know, the great society.

    This is our problem you see. We are not alive, we are not awake. We are not living in the present.”

    *This speech was slightly edited for clarification.

    Full Speech: http://www.scribd.com/doc/5468658/FROM-TIME-TO-ETERNITY-By-Alan-Watts

    Category:
    Non-profits & Activism

    MONEY!

    We have gathered so much information since Alan spoke these words and yet we have learned nothing. Thank you for uploading. We are still listening. There is hope.
    Dragon33304 2 months ago

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