Six ways American economics, in government, university, think tank and media is all one big lie.

American economics, in government, university, think tank and media is one seamless lie serving the money power. For example:

1. They say government is printing money which causes inflation, but there is no such greenback money any more. All of our dollars are but federal reserve notes given out if and only if a bank deposit (loan created money) is extinguished from the account of the man making the withdrawal. Such cash very quickly finds itself being reverting back to deposit money as soon as a retailer takes his excess revenue cash to a bank for depositing.

2. They call every price index increase “inflation” when much of it these days is caused by monetary deflation in the real (goods and services) ecnomy and by monopoly power of corporations and landowner rent capture.

3. The respond to of what they call inflation with austerity, with war on household consumption and wages — keeping “money” tight.

4. Only it isn’t money — it is credit — it is bank deposit every dollar quantity of which is co-created with a debt obligation of that amount (principal) plus what is often a much larger amount (compound interest to be paid). True money, which is permanent, and not co-created with even greater anti-money, and can be provided by government to the people for next to nothing (from “thin air,” ex nihilo, by fiat of the political sovereign which should be the People through their elected representatives who truly serves their constituents common interests. But instead the entire money supply is loaned and the people kept on tight money rations.

5. They say interest “rates are low,” and “too low”, but in fact the cost of borrowing in terms of the purchasing power demanded of the co-created debt over the purchasing power gotten at the start. This is because what is reported is the present nominal interest rate — the declared percent of compound interest to be paid — which leaves out two important components, two sources of greater burden — a) deflation’s effect on dollar purchasing power and b) business and income risk in a deflationary economy. When deflation and added business risk in a deflationary economic environment are taken into account, and their “payment” added to nominal interest rates stipulated in the loan contract, the real interest rate is very high. Perhaps 20 percent or more — no one is keeping track of this phenomenon, at least non-secret world of economics. Econometricians don’t exist to cater to the needs of populists and the common man.

6. Economists say that in the market system the consumer is sovereign, when in fact it is the financial sector that today is sovereign over the economy and, in fact and from that, over the entire society. People are debt slaves — more deficit-financing is being done even by consumers than with deposit transfer. A credit card allows people to spend no and incurr the bigger future debt burden without even pausing to write a new loan contract. Consumer debt is in the trillions. And the consumers tax burden goes to paying interest and to war — and what is war? War and weapons-systems build-ups are but the preferred expenditure of the sovereign financiers who leand the money for war at compound interest and whose corporations cater those wars receving the proceeds from the loans. This is so much easier and so much more lucrative for big finance, than trying to find “better mousetraps” or new household appliances to sell the the fickle housewife under a system of consumer sovereignty. And so they lie and they start their wars covertly with false-flag mass murder to get the richest country to take on the countries where the religion forbids usury and seeks to live without a Rothschild Central Reserve Bank.

One could go on with this, but respecting the principle that, in writing, less is more, I will stop here.

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About oldickeastman

Born 1949 Oakland High School 1967 Lake Forest College B.A. Western Michigan M.A. Texas A & M University M.S. and two years completed in the doctoral program in economics, passing prelims in Macroeconomics I am living in Yakima, Washington and spend much of my retirement writing on public issues.
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