Adam Smith critiques the Deficit Reduction Commission

ilene's picture

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Tic tock's picture

The Def - and the rest of the world's rentiers - suceeded in justifying the volume of Capital beyond the limits of prudence; a remarkably low interest rate. For those countries who were part of the 'sell-your-soul-to-the-NY Bankers' club.

I have to stress this- yes, all the banks were along for the ride but, the owners of this Crash are some very wealthy new breed and a few older names who thought wrongly of the nature of Power.

Power and Control are not the same things. The Def complex has derived it's wealth from a policy of 'ruthless exploitation'. The world is now that much poorer for the rape of it's wealth and dignity...people don't feel like its their lunch they're eating and they've been beaten into submission so hard that they're afraid to handle cutlery.

This economy, this prior business model for the economy, these 'land rights', basis for taxation, will not return Aggregate Demand...and without it, the economy is a dead duck. But at the moment, the Def complex is not even looking for a way out...which is truly stupid. And so we must bide our time until one day these barons see the stone wall standing in front of them. 

AnAnonymous's picture

Making dead people speak. Funny.

Problem with this kind of articles is they reject reality.

What was done so far works.

Expansion works. Extorting the weak works. Farming the poor works.

Casting the reality against a hypothetical version of reality has no value other than feeding the unsatiable hunger for  groundless 'debates' that have grown in the West. 'Debates' that can only exist because people as they want to keep 'debating' never introduce how the system works.

The issue is not that what was done so far did not work.

It is that is less and less working.

The FED participated in making the US richer and richer. Troubles is that the process is losing steam, not yielding according to expectations.

Some US citizens wait for their share of the loot but are not served. Thus frustration.  

Andrew G's picture

Some people are deluded into thinking of themselves as rentiers whereas they're in fact just state-sponsored beggars.

Seer's picture

The music ALWAYS stops.  People just don't want to believe it, in which case they go jousting at anything/everything (some can almost sound rational, but almost always fail in further scrutiny).

twittering as stocktradr's picture

“true free market”

freedom of choice.  

everything is a TRADE.



were the choices forced?

did one have freedom of choice?

one’s lifestyle.  a trade. a choice.

one is where one is because of oneself.

a trade.

freedom of choice.

have you been drinking the koolaid?

bad trade.

“I Beg Your Pardon, “  america “ Never Promised You a Rose Garden”

good trading on you.

twittering as stocktradr

TruthInSunshine's picture

If Adam Smith were to appear today, look at the U.S.A.'s books and records, and take it all in, he'd undoubtedly say:

"You don't need me, you need a magician. Fuck this noise. I'm out of here. See ya'."

Pike Bishop's picture

x100. Goddamnit, somebody actually read Smith, before they attempted to pass on theory and understanding.

For 30 years I have been listening to the wannabe-Landrenters torment and manipulate The Wealth of Nations and damned near every intention of Adam Smith. And righteously do it in his name.

Smith's 3 simple imperatives for a strong economy:

1. Avoid "predation". History proves out the point on every war-loving empire. It is littered with the bodies of those nations who sought to enforce their hegemonic influence. They fell, while they worshipped war and emptied their treasuries doing it.

2. "light system of taxation". This has to be the source of the largest pile of bullshit in the history of mankind. If you don't call it a day because you have seen what you came to see, you will read further and find that in 1776 and the manner in which Smith describes it, the word "light" did not mean small. It meant "predictable". That for which you could plan. It should have no burden of the unexpected.

Douchebags with the attention span of fruitflies ran with this until Eisenhower proved them to be the rubber waterbags they are/were.

3) A justice system which is not onerous upon its People. That may finally be an issue worth debate, right after we work our way back from debt and monetary inflicted Armegeddon.

As a side note, Smith only mentioned the "Invisible Hand" once. It was on the same page where he also mentioned that subjecting the individual's value to globalization was a real fucking stupid idea. When you add production value to the economy, you had better get a massive return on it from far away, because you won't reap the "invisible Hand" velocity you would get, if you keep it somewhere near you.

The point is, the predominant belief system is philosophically bankrupt, along with the nation which adhered to its sophistries.

It is a piece of shit, not because of Adam Smith,.. but in spite of him.

trav7777's picture

totally...hear constantly, nonstop, incessantly about how "capitalism" failed us when at every step, it has been interventionist predation that led to untenable distortions.

All the big fish want is monopolies and rents and they have stacked the government with the people to give it to them.

Watch the privatizers start the talk of selling utilities as the socialist scumbags in Chicago did with their parking meters.  As if selling off the land AGAIN is the "free market" invisible hand of Adam Smith.

gwar5's picture

Agree. Exactly. Free markets is more like what we do when we go to the local store.

What the WallStreet-DC-Fed Axis of Evil is doing to us is more like neo-slavery.

We're all Irish now.

revenue_anticipation_believer's picture

ha ha hah  lol   euthanasia for the RENTIER class...of which the Bloomsbury Group in London, to which Keyes belonged...the 'rentier class' clipping bond coupons, life of leisure and no workand really good stock/foreign exchange transactions...multimillionare...

""""It won’t work. It will drive the economy further into debt, shrink the fiscal base and further polarize the economy between rentiers (for whom John Maynard Keynes proposed euthanasia) and wage earners."""""

Originally published at Michael Hudson's blog, Adam Smith critiques the Deficit Reduction Commission.....a bit more, concerning land tax, Henry George and RENTIER class...understand what 'rent' is...and what property in land is, and what the 'enclosuremovement was/is'... have NO IDEA how screwed you ALWAYS have been...



DisparityFlux's picture

Speaking of the cost of war, let's not forget the political necessity of START.

Well, nukes haven't been much use in preserving world peace -- extremely scary though.

We need to develop a conventional weapon that specifically kills bad guys, with no collateral damage to good guys.

Check, now exactly who are the bad guys and who are the good guys?

Ok, we need to develop a target discrimination system.

First iteration, good guys have the weapon, bad guys don't.

Second iteration, bad guys use the weapon, good guys don't.

Hmmm, well back to the ol' drawing board.

revenue_anticipation_believer's picture

this method has worked quite well back in the Salem Witch Trials, and the Inquisition, too....near as well as waterboarding...of course, in those primative thinking olden usually considered innocent if you DIED...thereby proving no interventions by the DEVIL/Witchcraft...

DisparityFlux's picture

Yes, witches and small stones float, while innocents sink.

Also, the discrimination between good and bad is easier when one can claim the unique ability to receive divine guidance.

Biggus Dickus Jr.'s picture

I'm not to optimistic that things will change, so I'm trying to become a rentier.  That's what I want my kids to be when they grow up.

AnAnonymous's picture

A sane comment. And it must be added that the US is the biggest scam in human history, as they pictured themselves as the antithesis of the regime existing in those days, while ambitioning to become a bigger version.


freedmon's picture

Funny, I had the exact same thought reading the article.