Sunday, February 13, 2011

Engineered Economic Collapse Approaching; Budget Cuts Will Only Accelerate the Inevitable

Eric Blair
Activist Post

Ron Paul constantly reminds us that money is created out of thin air, which is to say it's an illusion. Therefore, the debt must be an illusion too, correct? Yet, fiscal conservatives still use the debt as a tool of fear to make budget cuts that they selectively deem expendable.

Sure, they may think these cuts make them look "responsible," but ultimately it is still collectivism -- just more on their terms.  Make no mistake; budget cuts in our corrupt system are just another form of wealth redistribution. After all, that money is being eliminated to pay off the debt, right? Thus, that money is removed from programs that employ people to pay off the issuers of credit (banks).

Additionally, the costs of the national debt, bank bailouts, war costs, and unfunded liabilities are fundamentally impossible to pay off.  So, the notion that cutting a "historical" $100 billion will have any positive affect on the long-term economy is absolute fiction.  And although many conservative lawmakers feel like it's the right thing to do, they know it will have no measurable affect on the debt. It's a scam, and if the history of modern lawmaking is any indicator, the establishment will surely stick it to the poor and middle classes with these cuts while the oligarchs continue to flourish.

Don't get me wrong; I am in full agreement with the philosophy of less government across the board. The fact that taxpayer funded subsidies, earmarks, foreign aid, and most domestic spending warps the free market is undeniable. In turn, this collectivized system has become so entrenched that determining genuine price discovery of anything is nearly impossible. This lack of price discovery deters private investment into the economy, which leaves the state as the primary economic driver.

When an economy is fundamentally bankrupt and no longer has a competitive productive capacity, government spending is the only thing propping up the economy.  However doomed the system may be, government spending does indeed represent jobs.  For example, even the flabby-assed NSA peon who is monitoring Internet activists all day still eats lunch, gets his lawn mowed, paints his house, raises a family, etc.  In other words, his needless job creates other jobs and supports other economic activity in the matrix.  So, if you cut his position, which I fully support doing, you bring economic hardship on him and the countless people his income contributes to.  This is simply a fact, and if the lost job isn't replaced in the private sector the economy will further contract.

Therefore, sadly, the debate about what to cut and what not to cut doesn't really matter. The controlled demolition of the economy will persist.  Since the U.S. is undoubtedly facing economic decline, and perhaps even a dramatic collapse, the private sector is unlikely to pick up the slack created by any public spending cuts.  And if there is one steadfast indicator, or instigator, of all recessions and depressions, it's that the available money supply in the economy shrinks.

Yes, despite the cranked-up printing presses at the Fed, the real money supply in America is shrinking to levels not seen since the Great Depression, leading some conservatives to call it "frightening." And it will continue to shrink even more with these proposed budget cuts.  It appears that most of the money printing is just being absorbed by the fraudulent financial system itself, and while the Fed's balance sheet continues to grow, inflation drives the price of essential goods like food and energy higher and higher.  In other words, inflation hits main street where it hurts at a time when main street has less dollars to spend.  It's the ultimate pinch.

Inversely, the budget cuts may indeed spur some short-term dollar strengthening in the matrix as the international banks will likely hype them as responsible governing.  This may cause dollar-based commodities to decline in price, which may temporarily simmer the outrage over record prices for food and other spiking commodities. However, this manufactured bliss for the dollar will be short-lived, as, again, the endless debt is not going away -- at least not until total default occurs.

Unfortunately, it seems that a return to a true free-market economy with sound money and limited government is only possible pending the total collapse of the current system. Perhaps free-market fiscal conservatives believe they can pragmatically chip away at entrenched collectivism of the State by incrementally de-funding the system. However, it would seem to only accelerate the slow demolition approach, and it definitely won't prevent the catastrophic debt-induced meltdown that America is headed for. What's more, budget cuts don't address the monopolistic control big business has over all industries.  Therefore, it appears unlikely that genuine free markets will manifest even after the money-illusion collapses so long as the global cartels control the real resources.

As much as I would like to believe these budget cuts will somehow erode the corporate collectivist state, it appears they will only cause more suffering to a good many people who had nothing to do with creating the suffocating national debt. In addition, the economic injustice in the recent past has been too great to believe those seeking these cuts have the people's interest at heart. Ultimately, I fear that the painful fallout will be used to discredit advocates for small government, and global corporate Statism will sprint to the endgame unchallenged.

Watch video below for an interesting perspective on the national debt and collapse of the State:

Stefan Molyneux: Freedomain Radio

Read more Eric Blair Articles Here

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Anonymous said...

Sad, but true.

Anonymous said...

Yep, we have crossed the Rubicon back in 1980 with Reagan's tax payer "Starwars" toys, tickle down economics and the beginning of mass outsourcing. Nothing will change by chipping away at jobs and spending. What will the government think of next to save face? Invade Iran? Dare to invade China? Hog their resources and provide a distraction to the fiscal nightmare we are in.

Anonymous said...

"The Chickens Come Home To Roost" Malcolm X

Anonymous said...

I enjoyed your video rant. As always, the question is what will come next and--historically--it has always been MORE WAR more aggression in the quest for economic control. I agree that the Titanic is sinking, but what will be the form of the rescue if any? The planners of this orchestrated economic debacle have very a very definite rescue plan involved and it isn't pretty.

It is easy to say it is all illusion until you need some bread and milk for the kids. The sheriff's who come to repossess foreclosed homes are not an illusion. The only hope is for the peasants to unite, but the corporate fascists have enough people on the payroll to keep that from happening. The peasants couldn't even unionize a Wal-Mart in Canada!

If we are slaves and our master (the U.S. government) defaults, wouldn't China want to come and take control of the only real collateral it possesses--us the slaves? I don't know if I buy the idea that China is content to just feed it masses.

It seems freedom has become as illusory as the arguably illusive nature of debt, but a simple analysis must be applied. If the fruits of our labors--oft the very nature of the tasks themselves--go to support and perpetuate a ruling class, then are we not already slaves? If so, what are you willing to do about it?

We have been infected with a virus spawned in the post-war air-conditioned nightmare tv-dinner eating generation of America: keep watching or change the will all work out in the end...our dad's fought the war to end all wars...things matter--not ideas...just make more money and it will all be okay.

There is nothing more sobering than insolvency, it is the mother of all revolutions. What is the biggest enemy of revolution?--government subsistence of the masses.

Anonymous said...

The budget needs to be cut by $1.5 trillion. Eliminate 60% of all non-military government employees and over half of the departments. Anything less will not work.

Robobagons said...

I love this guy, I've known and watched him off and on, for a while now, a friend of mine introduced him to me a while back, and he is awesome!

Anonymous said...

Politicians are just stroking themselves. We who are with the program, know that ONLY DEBT is running this country. The Fed is nothing more than a sham to steal America's resources and the rest of the World.

When the revolt in this country starts, it will be because finally, EVERYONE has lost EVERYTHING to the bankers! Then, public hanging of thieves will commence.......

The Watcher said...

Taxes don't go to support a single program in this country, only debt. A fiticious debt at best!

Nothing is what it seems. We are being confused to. We are always being lied to. We are being ripped off constantly.

At what point do we start taking this system of oppression apart and go back to basics. Freedom to think, act, hope, love, and work for what did make America great?

America is our only country.
It is ours to lose if we let it happen.

Anonymous said...

Very good. Here is the solution:

A total restructuring of our government and economy, along the lines of Germany. Check it out.

Some of the highlights:

1. No money can be spent on elections. All candidates get equal treatment. there will be a series of run offs to arrive at the best.

2. proportional representation, not winner take all.

3. No foreign ownership of the media. The media to be broken up into about five parts for each now in existence. Mandatory that half of media not be owned by corporation and private individuals.

4. Enact tariffs on imported goods and services.

5. Restrict legal immigration to about 1/5 of current levels. Incarcerate all illegals and put them to work for two years on public works, then deport. Second offense to be ten years.

6. All companies of more than 2,000 have to have 50% of the directors composed of employees. 500 to 2,000 45% employees.

7. End the Fed and have a national bank.

8.Invalidate all debts owing to derivatives, except those of the actual lenders that were for legitimate insurance purposes.

9. No mortgage relief for the millions that committed loan fraud to get into their homes.

10. All credit card debt that has resulted from interest of more than 10% to be forgiven.


ideaman said...

For what it's worth, start asking yourself, your friends and the people that you meet along the way; "What useful skills do you possess"? I'm a patent lawyer, useless. But I am a hobbiest mechanic, more useful. And I'm studying various fermentation techniques. Still only vaguely useful, but far more so when combined with my orchard and vineyard work. So despite the ultimate doom and gloom, it's desirable for us to begin acquiring more 'old fashioned' skills rather than become part of the unfortunate rubble.

NYQUIL said...

This commentary is very interesting. Essentially, we need to "start over". Prices have been artificially inflated do to the abundance of of "fiat" created debt. Nice commentary.

Anonymous said...

A couple of thoughts here. First, the reason the USA has come to this pathetic state of economic collapse is because it's citizens are for the greater part as dumb as cattle. This is the dumbest group of people to come along since the Southern Crackers went to war for the benefit of a deeply entrenched slave owning aristocracy. And do you think for one minute that Corporate America, along with our bought and paid for politicians who will meld into a completely Fascist state, will sit by and give up their preferential status while millions of indebted future gulag workers walk away from their and their countries accumulated debt? All these brave citizens who sold their asses into corporate indebtedness along with all other trolls who are not directly ensconced in the new totalitarian apparatus will once again learn how to shuffle along on slave wages while the natural evolutionary cycle enforcing the law of 'survival of the fittest' once again brings natural order to the universe.

Anonymous said...

Debt is control,debt is slavery. America is an empire that has been stopped by its rivals and it can only hope now to begin producing again to prevent internal collapse or an extreme form of debt collection. The games up, now its the part that empires dont enjoy.

Starter for ten - Hemp could at least feed the population, let alone provide local fuel, that would go some way to repairing the damage done to america and the rest of the world. Hemp wont plant itself.

Bruce said...

Wow, good stuff. And the timing is uncanny. I have been thinking since the people began to rally in the mideast that it is really time to come up with some creative drive. That is the only way to push past all this into a better world. I understand that all sides of the issue would use the same terms to promote what they call "progress". The exciting thing is that the monopoly on the term has been broken, irreparably so!

hybridrogue1 said...

Hemp wont plant itself. Sure it will, you just need to kickstart grows wild in all the areas it was grown historically.
It is the iradication that has lowered the numbers of plants; the evil "war on drugs"...

Anonymous said...

Fictional debt? Wait until we have no jobs/economy, no investments/pension, and no credit. This is not fiction. Maybe Blair is a fiction/fantasy.

Activist said...

Anonymous -- Yes, I'm saying the whole thing if an illusion including the jobs, investments/pensions etc...

But most importantly, I'm saying the debt has nothing to do with average citizens. The ship is going down, and the lenders are coming for their pound of flesh. I suggest you liquidate your "investments/pension" before they do and invest in tangible things.

Thanks for taking the time to read and comment.

Anonymous said...

Americans are the only people on Earth who eats biotech genetically engineered food every day, while most country in Europe have already banned that poisonous stuff and most other nations are busy banning it. Americans have a terrible time not being dumb!! Their brain is being heavyly poisoned!!!!! said...

"The creative destruction of human society" - there is always upheaval before positive change is enacted. The old institutions rarely go down without a fight, but once they do we are all better off for it.

Anonymous said...

We need to cut government spending now. The first rule when you dig yourself into a whole is to stop digging. You may choose to be part of the problem but some of us want to be part of the solution.
Also, there is not ecnomic benefit to paying a government worker. Sure he spends the money to stimulate the economy, but I would have spend the money I earned if you had not taken it from me to pay the government worker !!!!!! Either way it gets spent, why redistribute by punishing the producer and rewarding the non-producer?
I cannot believe people actually think like you!

Anonymous said...


Anonymous said...


Financial Collapse said...

Everyone needs to get this correct... (REPOST ON TWITTER, FACEBOOK)

America is controlled by the 3 privately owned states (district of columbia, the city of london, and the vatican.) Each has it's own flag, pays no taxes and has it's own laws. All 3 are part of an interlocking "ONE" called "City Of The Empire" Or "Black Sun".

When you pay taxes it goes to The Bank Of London and straight to the vatican. These 3 privately owned tiny nation states are owned by 13 families that rule the entire planet militarily, financially, and spiritually. Without a doubt. OPEN YOUR EYES AND YOU WILL SEE IT.

They control the markets, the religions, the media, and they rob you of your wealth. Wake up. Time to wake everyone up. Nothing will change until the people SEE the TRUTH about their miserable extistence that has been dictated to them by these CREEPS. WE ARE ALL ONE!

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