Chuck Spinney: Austerity Economics is Fraud — Primer for Citizens

01 Poverty, 03 Economy, 07 Other Atrocities, 10 Transnational Crime, 11 Society, Articles & Chapters, Civil Society, Commerce, Corruption, Government, Idiocy, Office of Management and Budget, Strategy

Chuck Spinney
Chuck Spinney

Austerity Economics

Why Snake Oil is the Drug of Choice for Ayn Rand Wannabees
Attached are two important papers, one by Stephanie Kelton and the other by Paul Krugman, arguing that it is time to consign austerity economics to the dustbin of history.  Both are variations on a theme and are spot on, IMO.
The fundamental problem tamping down the American recovery is excessive debt in the private sector, NOT the government sector.  Yet austerity economics ignores this reality and argues speciously for reductions in government spending.  The sequester has taken this nonsense to the level of policy lunacy by legislating an abdication of government’s primary responsibility –i.e., to make policy decisions, in to law.  As Krugman points out there is method to the austerity madness, however.
But madness it is.  The attached chart, which I have distributed before, uses Federal Reserve Data to place the real debt problem into a long term perspective.  Note the vertical scales are IDENTICAL!  Bear in mind, the chart is about 1.5 years out of date and it does not reflect the recent, pre-sequester reductions in Federal Debt discussed below.

Reflections on the US Military — Redirection Essential — and a Prerequisite to Creating a 450-Ship Navy, a Long-Haul Air Force, and an Air-Liftable Army + Sanity RECAP

Advanced Cyber/IO, All Reflections & Story Boards, Communities of Practice, DoD, Earth Intelligence, Ethics, Lessons, Office of Management and Budget, Officers Call, Peace Intelligence, Policies, Threats
Robert David STEELE VivasClick on Image for Personal Page
Robert David STEELE Vivas
Click on Image for Personal Page

Telling the truth to those who have replaced intelligence with ideology and integrity with loyalty to something other than their Republic is most difficult and more often than not will get you fired, because those without integrity tend to be promoted in corrupt systems, and they see clearly the threat to their world-view — and their perks — of someone who persists in pointing out that the truth at any cost reduces all other costs.

Below is a complement to my earlier posting of 15 November 2012: 2012 Robert Steele: Addressing the Seven Sins of Foreign Policy — Why Defense, Not State, Is the Linch Pin for Global Engagement.

Reform can be job and revenue neutral from state to state and district to district — and is of course subject to Congressional oversight via the authorization and appropriations process.  Below are seven truths about the US military that I would like to see introduced into the hearings on the confirmation of the next Secretary of Defense, and ideally also tasked to the Congressional Research Service (CRS), where the senior specialist for each of the major services is capable of validating my views.

Continue reading “Reflections on the US Military — Redirection Essential — and a Prerequisite to Creating a 450-Ship Navy, a Long-Haul Air Force, and an Air-Liftable Army + Sanity RECAP”

Mini-Me: Why Are US and France Invading Mali?

04 Inter-State Conflict, 05 Civil War, 07 Other Atrocities, 08 Wild Cards, DoD, Government, IO Deeds of War, Military, Office of Management and Budget
Who? Mini-Me?


US, France assemble coalition to confront Islamists in Mali

By CJ Radin

The Long War Journal, November 18, 2012

The Islamist takeover of two-thirds of Mali this year has spurred the West as well as concerned neighboring countries in Africa to find a way to restore Mali to its democratic path and drive out jihadist elements. Islamist groups in Mali currently include Ansar Dine, the Movement for Oneness and Jihad in West Africa (MUJAO), and al Qaeda in the Islamic Maghreb (AQIM), which is considered one of the most dangerous of al Qaeda’s affiliated groups.

Read full article

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Graphic: Automated Payment Transaction (APT) Tax

03 Economy, 11 Society, Ethics, Government, Office of Management and Budget
Click on Image to Enlarge


Dummy Version:  Generates $4 trillion a year without borrowing and allowing the elimination of ALL other taxes beginning with personal income taxes.  Allows for the recapitalization of our labor pool, our domestic infrastructure, and our Department of Defense (450-ship Navy, long-haul Air Force, air-liftable Army, Marines back on the boats).

Formal Description and References Below the Line

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Mini-Me: REPLAY Future of the USA in 3 Parts

Advanced Cyber/IO, Collective Intelligence, Commerce, Commercial Intelligence, Cultural Intelligence, Ethics, Government, Hacking, Military, Office of Management and Budget, Officers Call, Policies, Threats
Who? Mini-Me?


The future of the USA – 2012-2016: An insolvent and ungovernable United States (first part)

Thus, according to LEAP/E2020, the 2012 election year, which opens against the backdrop of economic and social depression, complete paralysis of the federal system (3), strong rejection of the traditional two-party system and a growing questioning of the relevance of the Constitution, inaugurates a crucial period in the history of the United States. Over the next four years, the country will be subjected to political, economic, financial and social upheaval such as it has not known since the end of the Civil War which, by an accident of history, started exactly 150 years ago in 1861. During this period, the US will be simultaneously insolvent and ungovernable, turning that which was the “flagship” of the world in recent decades into a “drunken boat”.

To make the complexity of the current process understandable, our team has chosen to organize its anticipations around three key areas:

1. US institutional deadlock and the break-up of the traditional two-party system
2. The unstoppable spiral of recession/depression/inflation
3. The breakdown of the US socio-political fabric

Read rest of analysis.

Below the line: the other two parts of the series.

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NIGHTWATCH: Financial Risk for the Few versus Life Risk for the Many

05 Civil War, 07 Other Atrocities, 10 Transnational Crime, Office of Management and Budget
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Greece: The General Confederation of Employees of Greece and the civil servants’ union federation declared a 24-hour nationwide strike on Wednesday in protest against the finalization of the new package of austerity measures demanded by Greece’s creditors.

Tens of thousands of protesters demonstrated outside Greece’s parliament on 26 September against austerity measures. The strike included doctors, teachers, tax workers, ferry operators and air traffic controllers. The Greek government is looking for ways to cut 11.5 billion euros ($14.7 billion) from the country’s budget.

Comment: The economic hardships and austerity measures carry the risk of a breakdown in civil order. The key indicator of a spreading, unmanageable breakdown is the duration of protests. Thus far they have been short lived in Spain and Greece.

The international media has suggested the Eurozone crisis is now on a more stable trajectory. The protests suggest otherwise. European bankers and financial experts continue to fail to distinguish financial risks from real threats. There will be more outbreaks of civil disorder and more violent clashes.

Phi Beta Iota:  We now know that financial assets inflated seventeen times verus the five times normal inflation (under a corrupt Federal Reserve) for physical assets.  We now know that the financial mandarins and “control fraud” on the part of various governments has led to the internal looting of European Union and Americas commonwealths.  Spain will be the next to collapse because the Spanish government has resolutely refused to consider the Iceland example.  It is difficult to stop doing the wrong thing righter, we know this.  Prospects for the USA in 2013-2014 are terrible.  This is particularly troubling since there is nothing wrong with the USA that could not be fixed rapidly with the restoration of intelligence and integrity to governance.