The Long Run Economics Of Debt Based Stimulus

Tyler Durden's picture

Authored by MN Gordon via Acting-Man.com,

Onward vs. Upward

Something both unwanted and unexpected has tormented western economies in the 21st century.  Gross domestic product (GDP) has moderated onward while government debt has spiked upward.  Orthodox economists continue to be flummoxed by what has transpired.

 

What happened to the miracle? The Keynesian wet dream of an unfettered fiat debt money system has been realized, and debt has been duly expanded at every opportunity.  Although the fat lady has so far only cleared her throat (if quite audibly, in 2008) and hasn’t really sung yet, it is already clear that calling this system careening toward a catastrophic failure.

 

Here is the United States, since the turn of the new millennium (starting January 1, 2001) real GDP has increased from roughly $10.5 trillion to $18.6 trillion, or 77 percent.  Over this same time government debt has spiked nearly 250 percent from about $5.7 trillion to $19.9 trillion.  Obviously, some sort of reckoning’s in order to bring the books back into balance.

Throughout this extended episode of economic and financial discontinuity, the government’s solution to jump-starting the economy has been to borrow money and spend it.  Thus far, these efforts have succeeded in digging a massive hole that the economy will somehow have to climb out of.  We’re doubtful such a feat will ever be attained.

In short, additions of government debt over this time have been at a diminishing return.  Specifically, at the start of the new millennium the debt to GDP ratio was about 54 percent.  Today, it’s well over 100 percent.

 

US GDP and US federal debt, indexed (1984 = 100). Mises noted back in the late 1940s already that “it is obvious that sooner or later all these debts will be liquidated in some way or other, but certainly not by payment of interest and principal according to the terms of the contract.”  If it was obvious then, it is glaringly obvious today. Greece and Cyprus demonstrated what happens when modern socialist welfare states have no independent access to a printing press and are thus unable to extend and pretend in the traditional Keynesian way. The Potemkin village disintegrates on the spot at the first whiff of suspicion. All the nations that have postponed the reckoning by printing money and the flight forward mechanism of amassing even more debt have simply made the eventual denouement more profound – click to enlarge.

The idea that the government could spend borrowed money to grow the economy out of debt has become patently ridiculous.  Nonetheless, government economists continue to advocate these policies because, academically, they have no other alternatives.  At the same time, politics may now conspire to push the U.S. government into debt default.

Arrested Development

This week the Obama administration’s debt ceiling suspension expired, and a debt ceiling of $20.1 trillion was triggered.  This reestablished debt ceiling is just a horse’s hair above the U.S. government’s current debt level.  Furthermore, getting the debt ceiling lifted will likely require an epic Congressional battle, including elaborate displays of Kabuki theater.

There’s a possibility a new debt ceiling agreement won’t be reached before the Treasury’s money runs out sometime in late-summer or early-fall.  This would put the U.S. government in a position of not being able to pay its debts.  At a minimum, even if some Congressional deal’s worked out at the 11th hour, the full faith and credit of the U.S. government will be tarnished.

Best case, a timely debt ceiling resolution will cut into President Trump’s plans to boost the economy by borrowing money and spending it on infrastructure and defense.  This will also cut into his plans to reduce taxes.  A stumble in either of these areas could prompt a long overdue stock market panic.

 

The debt ceiling could become a real problem this time, as the treasury has massively drawn down the cash balance it amassed by issuing humongous amounts of debt to US money market funds in 2016. In the final quarter of 2016, i.e., the dying days of the Obama administration, the federal deficit exploded by a stunning 208 billion dollars – click to enlarge.

 

The fact is, perpetual economic growth is required to sustain life as we know it in today’s debt-driven economic social order.  Any slight blip, such as 2008, massively disrupts the lives of hundreds of millions of people.  What’s more, economic growth must be at a level where the plebs believe they’re adequately reaping the fruits of their labors.

What that rate of economic growth happens to be is uncertain.  But so far the U.S. economy of the 21st century has failed to attain it.  What is known is that an economy that expands at 3 percent annually, will double the average living standard every 24 years.  In contrast, an economy that expands at an annual rate of 2 percent, will take 36 years to double the average living standard.

The average annual rate of real GDP growth of the U.S. economy in the 21st century has been at a 1.78 percent state of arrested development.  The average annual rate of real GDP growth of the U.S. economy for the 16 preceding years was 3.43 percent – nearly double.  Alas, it has been 12 years since the U.S. economy’s eked out a single year of 3 percent GDP growth.

 

In spite of statistical distortions reaching fresh heights of absurdity year after year (their goal is generally to make “inflation” look smaller and GDP larger than they really are), economic output as measured by GDP is seemingly on a permanent downward trajectory. Many European countries look even worse. For instance, France had strong growth for more than two decades after WW2, but it collapsed thereafter. Today, government spending in France accounts for 58% of GDP and the country’s microscopic growth rates have become downright embarrassing. But don’t worry, Europe’s political elites and bureaucrats continue to prosper! – click to enlarge.

 

The Long Run Economics of Debt Based Stimulus

“In the long run, we are all dead,” said 20th Century economist, John Maynard Keynes.  This, in a nut shell, was Keynes’ rationale for why governments should borrow from the future to fund economic growth today.  Why wait for recessions to do the work of equilibrating the economy when a little counter-cyclical stimulus can push growth onward and upward?

 

J.M. Keynes is certainly dead, but we are still alive and can rightly be referred to as his victims. Keynes is often depicted reading a book, but evidently he must have read the wrong book. And all those who assert that he “didn’t really mean it this way or that way”  should perhaps take the time to read what he wrote. Keynes really was a Keynesian!

 

Of course, attempting to spend a nation to prosperity using borrowed money is not without consequences.  In the short run, an illusion of wealth can be erected.  In the long run, that illusion slips into decay and disrepair.

Over the past week we’ve been roaming the streets of Mexico City, visiting family and conducting  field research on your behalf.  In particular, we’ve been investigating the chronic effects of what happens when a government spends too much borrowed money, and then attempts to lighten its debt burden by inflating its currency. 

What follows a brief summation of our findings.

On surface, what happens is what you’d expect.  The currency gets utterly destroyed.  This has the effect of blowing the price of just about everything – especially imports – through the roof.  But it’s what happens after which is less obvious.  For the ill-effects of a debased currency express themselves in asymmetric ways.

On a Saturday afternoon walk through the historic city center along Avenida Francisco I. Madero between El Zócalo and the Palacio de Bellas Artes we were greeted with the appearance of consumer prosperity.  Bustling crowds of shoppers made their way through the chic fashion stores that are interspersed between historic 17th and 18th century colonial mansions and buildings.  Modern skyscrapers were in the distance.

Similarly, during a Friday night visit to El Moro, the famous churro and chocolate restaurant that has been in operation since 1935, we encountered a line extending out the door and down the street.  Customers were dressed to impress.  There was hardly a hint of economic hardship about the place.

 

The original El Moro outlet in Mexico City.

 

But venture outside the most inner streets of the city’s center and the conditions quickly deteriorate.  An endless sea of multilevel residential dwellings mixed with commercial and industrial properties in varying degrees of decay extend for miles and miles across the high altitude Valley of Mexico.  It appears that, perhaps 50 or 60 years ago, these structures were clean and well-kept.  However, that was before crumbled concrete and exposed rebar became the norm for these vast residential dwellings.

Contrary to what Keynes posited, counter-cyclical debt based stimulus didn’t produce the nirvana of rising long run living standards.  Rather it produced the disparity of stagnating GDP and rapidly rising government debt.  Later it produced the hell of declining living standards over the long run.

The truth is, in the long run we’re not all dead.  Actually, some of us are still here, living with the consequences of shortsighted economic policies.

Residents of Mexico know this all too well.  In the United States, the scope and magnitude of debt has been able to support an illusion of prosperity.  Still, as far as we can tell, many residents are experiencing the transformation of small pockets of slums into vast expansive ghettos.

Storing up a small hoard of gold and silver bullion may’ve never been more critical than the present, in the off chance the inevitable dollar debasement comes sooner rather than later.  So, too, one would be well advised to develop a side hustle now.  From our observation, everyone in Mexico City was working… though many didn’t have jobs.

On Monday we traveled north of the city limits to the ruins of the ancient pre-Aztec city of Teotihuacán.  There we climbed up the Pyramid of the Sun and into the open areas of the Pyramid of the Feathered Serpent.  We walked the Avenue of the Dead toward the Pyramid of the Moon.

 

Teotihuacán – view from the pyramid of the moon. Aztec priests once ripped out the hearts of sacrificial victims to appease their gods (among those in need of appeasing were Huiztilopochtli, the god of war and the sun, Tlaloc the rain god and not to forget, good old Xipe, a.k.a. “Our Lord, the Flayed One”, god of sacrificial pain and suffering. And you should see their mama… (wait for it). The Aztecs had a god for everything, so there was a lot of sacrificing to do.

 

At its peak, around 450 AD, Teotihuacán was the largest city in the pre-Columbian Americas, with a population estimated at 150,000.  Yet by the 6th century the population began to decline and the city ceased to exist sometime in the 7th or 8th century.  No one quite knows what happened.

 

Well, here she is… Coatlicue, the primordial earth goddess, mother of the gods, the sun, the moon and the stars. Judging from her teeth, this multi-tasker was a carnivore.

One theory is that the city’s decline coincided with an extended drought.  Another is that there was an internal uprising.  Maybe a 99 percent situation developed. We kicked a few rocks.  We put our ears to the ground.  We looked.  We listened.

The spirits didn’t answer.  They didn’t have to.  We’d already seen and heard enough.

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Taint Boil's picture

My house in Mexico is about 45 minutes from those pyramids ...

Cognitive Dissonance's picture

While it is comforting to know we are simply repeating mass (financial) insanity practiced for thousands of years, it is NOT comforting that we are taking to a whole new level.

A. Boaty's picture

Whole new level = derivatives. But, don't worry. They have it all perfectly hedged.

Manthong's picture

Well, the good news is that within the atmospheric sphere, we are stuck to the effing earth and no matter what goes up… it must come down.
Gravity is not a forgiving entity, like the Fed.

 

Oldwood's picture

If it were ONLY government debt. People are more Keynesian than government, living well above their means in hopes that they will eventually catch up. Instead we simply adjust our Overton window of normalcy. Cheap imports, mass voluntary subsidized unemployed and the expectation of infinite cheap credit are now evidently another "right".

nmewn's picture

I eagerly await the day Keynesian's admit they were and are wrong. Just like lost souls eagerly awaiting ice water in hell. 

INTJ Economist's picture

It probably won't ever come.  Much like Austrians say that true capitalism has never been tried, Keynesians will continue to say that true Keynesianism has never been tried.

Kayman's picture

The flaw is in not recognizing the Financialization Sideshow from the Real Economy. Trillions are traded everyday in churning and skimming of debt and stocks, while the real economy is plucked dry.

Economic history began by describing and prescribing the value created and exchanged in the real economy.

Today the real economy is a side show to the Money Printers/Credit Creators (government mandated monopolies) as they spin and weave risk-free from their never-ending return of investment of buying politicians.

Keynes saved Crony Capitalism. That's all.

underthevolcano's picture

Well, not exactly. Debt money got it's big start in the Napoleonic wars. England was broke. The Jews had all the gold and silver, but Myer came up with an ingenious plan. He would let the Crown print 'bonds' and he would give them notes to use as money. People accepted the notes thinking that they could always redeem them from Myer, for gold. Not so much. The bonus in this system for Myer was that nobody ever got to get near his gold.

The only times in history when debt has been used in substitution for real money have been the periods when the empire was on it's last legs.

hope_talk's picture
hope_talk (not verified) underthevolcano Mar 19, 2017 9:22 AM

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hope_talk's picture
hope_talk (not verified) underthevolcano Mar 19, 2017 9:22 AM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://bit.ly/2jdTzrM

Miss Informed's picture

Don't forget the Tally sticks. They were used to beat the Jews out of England for 700 years.

pilager's picture

Or when they sell the people...

Kayman's picture

Lending money you don't have. Dressed up and polished into the academic phrase- Fractional Reserve Banking.  Lending the same money over and over again and collecting interest on multiple loans.

A nice business, but protected by government to benefit only the few.

DingleBarryObummer's picture

Why. did the Aztecs starting mixing lesser metals into their coins?

Blue Snowflake's picture

DBO the last part of the article is non-sequitur filler material so the author could reach his word minimum.

Maybe I missed it. Seems the implication is that the Aztecs were Keynesians. 

DingleBarryObummer's picture

Thanks, I thought I was stupid or something, but I guess he wasn't clear after all.

 

City_Of_Champyinz's picture

Is that where you picked up the taint boil?

SallySnyd's picture

Here is an article that explains the economic impact of Washington's ever-growing debt level:

 

http://viableopposition.blogspot.ca/2017/03/washington-and-impact-of-uns...

 

Unfortunately, with an intransigent and highly polarized Congress and Executive Branch, it is highly unlikely that any meaningful and long-term progress will be made to improve this situation.

Moe Hamhead's picture

We're all waiting for the year of Jubilee!

underthevolcano's picture

The Jews have NEVER done a debt jubille, and likely would throw up at the thought of it.

A. Boaty's picture

Didn't they invent the whole jubilee thing? Or was that a more ancient tribe?

underthevolcano's picture

Correction. The Hebrews were the first to employ a debt jubilee (which occured every 7 years), and that law was written into the original (and now destroyed) Hebrew laws.

HOWEVER, there are virtually no Hebrews left. They are all Zionists now, and the Zionists follow the Babylonian Talmud, NOT the Hebrew Talmud. Matter of fact, the Israelites (original Zionists), invaded, slaughtered and took over the kingdom of David where the Hebrews had their homeland. I guess you could say that the Israelites were right up there with the most successful psychopaths of the day.

Snípéir_Ag_Obair's picture

"The Jews promote the mythology that they were forced into banking and usury by Medieval laws which prohibited the Jews from owning, or even working, the land, or from participating in the guilds. The Jews' own most ancient religious texts contradict their claim; and prove once again that the Jews are deceitful liars, who scapegoat the Goyim for their Jewish crimes against the non-Jews, by blaming the Gentiles for the fact that Jews are today usurers.

The Jews have always been usurers and have always planned to use usury to take over the World.
...
The Jewish Old Testament Torah book of Deuteronomy, chapter 15, verse 6, states:

"For the LORD thy God blesseth thee, as he promised thee: and thou shalt lend unto many nations, but thou shalt not borrow; and thou shalt reign over many nations, but they shall not reign over thee."

Deuteronomy, chapter 23, verse 20 states:

"Unto a stranger thou mayest lend upon usury; but unto thy brother thou shalt not lend upon usury: that the LORD thy God may bless thee in all that thou settest thine hand to in the land whither thou goest to possess it."

Not content to merely steal the wealth of the rest of mankind through usury, the Jews are determined to bury every Goy, as is clear from Deuteronomy, chapter 28, verses 12-13:

"12 The LORD shall open unto thee his good treasure, the heaven to give the rain unto thy land in his season, and to bless all the work of thine hand: and thou shalt lend unto many nations, and thou shalt not borrow.

13 And the LORD shall make thee the head, and not the tail; and thou shalt be above only, and thou shalt not be beneath; if that thou hearken unto the commandments of the LORD thy God, which I command thee this day, to observe and to do them:"

From the very first book of Old Testament Jewish hate literature, Genesis, chapter 47, verses 1-31, the Jews state that they enslaved the Egyptian People by contracting the money supply:
..."
http://jewishracism.blogspot.com/2009/01/jewish-problem-part-3-jews-in-b...

**********************
"...In summary, Manetho reported that centuries earlier a foreign population had entered Egypt’s eastern border via “infiltration of the Delta.” This foreign population subsequently rose in power within Egypt, becoming a burden and a pestilence to the natives. At some point, the foreign population developed a serious disease of the skin, and the Egyptians were finally motivated to expel the invaders, who later relocated to Jerusalem.
...

Although the narratives coterminous with the Exodus fable remain bloated and inert within the academic corpus, I wish to draw the attention of readers to a quite remarkable book published in 2006. Largely ignored by the gatekeepers of academia, Russell Gmirkin’s Berossus and Genesis, Manetho and Exodus: Hellenistic Histories and the Date of the Pentateuch represents nothing less than a multi-front assault on both the Jewish interpretation of Manetho and the account of Exodus itself. Gmirkin’s study offers compelling evidence that Manetho did not react to Exodus, but rather that Exodus was written by Jewish intellectuals in Alexandria in reaction to Manetho, whose account was both older and more accurate. Or, as the author puts it, rather than Manetho attacking the Jews, “the borrowing and polemics took place in the opposite direction; the Penateuch polemicized against the Egyptian expulsion stories in Manetho.”[15] The implication of Gmirkin’s thesis is that, by writing Exodus, a text given later cultural protection and greater credence and authority by the spread of Christianity, Jews essentially captured history, re-writing it in a manner that salved Jewish pride.
Although what we understand as the Jewish group evolutionary strategy, and the cultural codes underpinning it, was certainly extant prior to the third century BC, Gmirkin argues that the “Hebrew Pentateuch was composed in its entirety about 273 BC by 72 Jewish scholars at Alexandria.”[16] Combining archaeological discoveries with meticulous textual analysis, Gmirkin demonstrates a heavy literary dependence of Genesis on Berossus’s Babyloniaca (278 BC) and Exodus on Manetho’s Aegyptiaca (ca. 285–280 BC), as well as a general reliance of Exodus on literary sources available at Alexandria’s Great Library. Contrary to allegations that Manetho engaged in polemics against the Jews as a response to Exodus, Gmirkin points out that his narrative does not mention the Jews by name, referring instead to a tribe of mixed ethnic origin known as the Hyksos (Egyptian for ‘rulers of foreign countries’). Furthermore, Manetho’s account “displays no awareness of the biblical account,” and “can be demonstrated to have drawn exclusively on native Egyptian sources.”[17]
Substantial elements of Exodus appear to have been plagiarized or corrupted from the Aegyptiaca.
...
One might ask what relevance such ancient history has to the present. By way of answer I refer to the remarks made at the outset of this essay. Exodus remains a pivotal text in the Jewish mental landscape, shaping ideas about identity, victimhood, and validation. Its early reception has also come to represent, in the Jewish mind, the origins of “anti-Semitism” and the plagiarism of a putative Jewish genius. Because of the influence of Christianity in retaining and reinforcing the Pentateuch, and even extending it somewhat into the Western psyche, the story of the Exodus has been undeservedly preserved under a kind of cultural permafrost. We have for the most part lost touch with the fact that it was at one point in time merely one tribal repudiation of an overwhelming consensus. Historian Gohei Hata has argued that by the time of Josephus at least seven major Greek or Greek-Egyptian writers and intellectuals had published accounts asserting that Jews had some distant connection to Egypt, that they had been banished, that they had suffered from an affliction of the skin, and that Moses himself was an unstable Egyptian apostate.
..."
http://www.theoccidentalobserver.net/2017/01/exodus-redux-jewish-identit...

Snípéir_Ag_Obair's picture

"The two primary books of the Old Testament – Genesis and Exodus – refer to 'Pharaoh' 155 times. Curiously, not once in either book is Pharaoh identified by name – and yet, in fact, the references are to many different pharaohs, across many centuries. The anomaly is all the more telling in that the holy books are not lacking in naming numerous sundry and incidental characters. For example, the grandmother, of the grandmother, of King Asa of Judah was Abishalom, should you be interested! (1 Kings 15.10). But this style of literature should be familiar to us all: "Once upon a time, in a land far away, was a bad king. And in the forest, David played ... "

It's called a Fairy Tale.

Out of Egypt

Let's remind ourselves of Israel's supposed early encounters with the diverse kings of Egypt. In the sacred history of the Jews, the ‘father of the races’ Abraham is placed in Babylonia, anachronistically re-labelled Chaldea, a term more appropriate to the empire of Nebuchadnezzar in the 600s BC. The character of Abraham alternates between bedouin pastoralist and landed grandee. Neither has the slightest claim to historical veracity."
...

http://jesusneverexisted.com/egypt.htm

fbazzrea's picture

Relying upon Biblical records to understand the Egypt-Canaan-Ur history is akin to reading Gore Vidal's 1876 to understand our nation's history from 1492 to the present, a narrow derivative of reality.

Jubal Early's picture

Asking a jew about goy history is about like asking a millenial to self grade on their "feminism and pornography" final exam.  Here is an interesting piece I ran across:

Spanish authorities dispensed with language and culture tests for elderly applicants for citizenship under the country’s law of return for Sephardi Jews.

The Spanish Justice Ministry decided to offer the dispensation from tests on the Spanish language and heritage, which were mandated for citizenship applicants under the 2013 law, after it emerged that the tests effectively barred hundreds of elderly Turkish Jews from exercising their right to a Spanish passport, El Pais reported last week.

...

The governments of both countries said they were passing the law as a symbolic rectification for the murder, mass deportations and forced conversions to Christianity of their Jews during the 15th and 16th centuries, during what came to be known as the Spanish and Portuguese Inquisition.

Assuming there even is a Germany in 500 years they will still be paying for the holohoax.

 

John Law Lives's picture

The Hebrews conducted a Sabbatical Year every 7 years and Jubilee Year upon 7 cycles of Sabbatical Years.

http://www.jewishencyclopedia.com/articles/12967-sabbatical-year-and-jub...

earleflorida's picture

indeed, and the islamic faith believes not in usury...

and heres a good example why the jews and christians hate them...[?]      http://www.mustaqim.co.uk/usury.htm

both sunni and shia,...

ATM's picture

The Jubilee will come with fire and brimstone. I'm not looking forward to it.

Jubal Early's picture

I guess if y'all ask nicely I could come early.

skbull44's picture

Infinite growth on a finite planet, what could possibly go wrong?

http://olduvai.ca

underthevolcano's picture

It is mathematically IMPOSSIBLE to ever pay off debt that was created and sustained by creating more {debt} money, unless one of three things happens. 1. You default 2. You bring in negative interest rates that are larger than the median nominal interest rates on the debt or 3. You move to debt free money issue, i.e. money issued by a sovereign. So as long as we have debt money being created by private banks that are completely outside the control of anything other than their own greed, we will be screwed.

Dilluminati's picture

Negative interest rates, penalizing savers, is next.

Make no mistake the 1% will not abandon their advantage

Some will try socialism in response to what looks more and more like kleptocracy

But this isn't sustainable 

J J Pettigrew's picture

When the Fed pushes for 2% inflation and keeps rates uner 1%....that is negative by my math.

We need not worry, Paul Krugman et al are in control with their theories, and much like Congressmen who are exempt from the laws they pass, 

Krugman, Bernanke, Paulson, Yellen, Mnuchin are all insulated by big pensions, cost of living increases, the finest healthcare, etc,

They do not participate in what they dictate to us......

GUS100CORRINA's picture

I agree that ir is mathematically impossible. America and the world are in DENIAL. It is my observation that numbers no longer mean anything and pictures no longer mean anything as evidenced by the Money Project presentations to date.

I don't know what will shack people (politicians, business leaders and citizens) up?

I have said this before in another post, but it is almost like no one will ever have to deal with the debt because of some future celestial or global event that is inevitable.

Very strange!!!

overmedicatedundersexed's picture

seems one thing about this debt system is very clear:

it leads to concentration of wealth and power..(my definition of crime by the way)

so for the elite what's the problem?

Cognitive Dissonance's picture

Exactly. It (the debt money system) is a tool, a device, of the wealthy to extract productivity and wealth from the object being tooled....you and me.

"We the Tooled"

LetThemEatRand's picture

Tool me once, shame on me.  Tool me twice, won't get tooled again.

Giant Meteor's picture

Hmmmm I slightly disagree here, we get tooled, over and over and over, and over again until death ...

 

Cloud9.5's picture

I went through a Jubilee in 2001 after I lost eight years of litigation against a bank that violated USC 18:1014 on numerous occasions.  A law the Feds had absolutely no interest in enforcing against one of the most powerful banks in the south east.  I lost my home, my land and pretty much everything else.  Nobody wants banker’s heads on a stake more than I do.   But here is the deal, I still use credit unions.  I still use the credit system and I still use fiat to pay for transactions.

 

Here is what I learned after my personal collapse:  The sun comes up again the next day.  If you are alive and in good health, you can begin again.  Bone crushing debt is an artificial construct.  The goods and services it generated still exist to a large extent after its collapse.  Their nominal value is substantially reduced but their tangible value still exists.  The bones of a failed business are picked up for pennies on the dollar, these assets can be repurposed by a new business and the process begins again.  The circle of life goes on.

Anonymous_Beneficiary's picture

Please do not worry. It's quite certain that Trump's "All-American Team Goldman" has everything under control.

nmewn's picture

"We will just inflate the debt away!" - idiot Keynesians circa 2008-2009

cherry picker's picture

This is all bullshit.  What debt?

A couple of countries bought some treasury bills, but most of those trillions are printed out of thin air.  At least they were backed by the paper they were printed on and the metail they were stamped on, now it is invisible bytes and bits in a place only Alice in Wonderland knows about.

We get these politicians who claim to know how to run our lives better than we do.  Economists who are as reliable as those climatologists who keep crying the sky is falling.  I don't think any of these people stuck their noses outside to see how the world operates.

It is a fake place we live in. Reality left long ago.  A few people from the M/E commit suicide and run around with guns telling people what to do and if they don't comply, they kill them.  They are called 'terorists'  The whole world sends missiles and bombs over there to show these terrorists it is not the 'right' way and lay waste to entire countries showing 'terrorists' that murder is not acceptable.

What kind of assylum did I find myself in?  Who ever created it must have one 'hell' of a sense of humor.

DrData02's picture

Bush and Obama created this mess, as tools of the MIC.

Colonel's picture

"Aztec priests once ripped out the hearts of sacrificial victims to appease their god"

Hunh! So they had lefTARDS back then too. LefTARDS bow down and worship shitstain pols while the priests at the fed and Wall St. rake in their blood money. But lefTARDS love it that way and will keep worshipping. So much for being "progressive".

https://www.lewrockwell.com/2016/09/david-gornoski/aesthetic-statism/

 

The State is the Religion of the Hidden Corpse - https://fee.org/articles/the-state-is-the-religion-of-the-hidden-corpse/

 

 

 

 

underthevolcano's picture

You know, once upon a time I read the first few pages of the 'Babylonian Talmud', the document that the Zionists hold as the ultimate document in law, just to see what it was about. Aside from the manic focus on trying to 'assess' every single issue that might occur in a conflict between 2 individuals in a population, it bascially grants the right of theft (but only for Jews). For instance, one passage talks about the theft of 'wool'. To their way of thinking, if you stole wool, then worked it into garments for sale or use, you were only ever liable to compensate the original owner for the original value of the raw wool, which was to be a matter of 'negotiation', with the stipulation that half the original value would be satisfactory compensation. In other words, the Talmud gives the Jews the 'right' to steal, use the proceeds of the crime to enrich themselves, then pay back the original debt with a low ball value on the goods that were stolen. 

Do you really need to understand anything else about them? Their 'values' are fundamentally corrupted.

No wonder the Arabs despise them.

wdg's picture

I have also delved into the Talmud in an effort to better understand Jews since they exert such a large influence over the western world. The Talmud can be classified as a diabolical text because it defines one set of morality for Jews and another for non-Jews. As noted above, it is acceptable for Jews to steal from non-Jews. There is even a different set of justice for Jews versus non-Jews. The Talmud is also very hostile towards Christ. Clearly, the Talmud which is one of the holy texts in Judaism must be exposed if we are ever to regain control of our nations and our civilization. 

Snípéir_Ag_Obair's picture

The Torah has the same supremacism and dual ethics.

It is quite common to see people, often Judeo-Protestants, criticize the Talmud and contrasting with the purportedly different Torah.

While the Pentateuch may be in your Christian bible, apart from the poorly hidden refs to Jesus of Nazareth, it is in essence the same *ethos* as the Talmud: Jewish racial/tribal Supremacism and megalomania blessed by a father sky god that adores genocide, war, theft, and murder... but is supposed to be the father of the 'love thy neighbor even non jews'guy.

Dont be the sort of asshole who denies this without ever having a tually sat and read Deuteronomy, for ex.