Wall Street Banksters and the Tapeworm Economy

Sunday, January 30, 2011

This interview with Catherine Austin Fitts is one of the most powerful 60 minutes of dialogue I have seen in some time. To quote Charles Burris:

As former managing director and member of the board of directors of the Wall Street investment bank Dillon, Read & Company, and Assistant Secretary of Housing under George H.W. Bush, Catherine Austin Fitts has impeccable blue chip establishment credentials and pedigree. This makes her courageous whistle blowing on these corporatist saboteurs all the more credible.

She is also an MBA graduate of Wharton. In spite of this, the attacks on her have only focused on the fact that she signed a 9/11 truth petition.

To give a short and zippy summary, when Fitz visited with her medical practitioner, it was described to her how a tapeworm attacks its host, the human body, and how it survives. Hence she calls our economy a ‘tapeworm economy’ because we’re the host and we’re feeding the tapeworm. The more we feed the tapeworm, the more powerful it gets. The majority are ruled by the minority, and the small number of insiders constantly drain subsidy from the outsiders in a way that preserves their wealth while they suck all of wealth from the shackled middle class. Essentially, she notes how Wall Street finagled money from Washington (taxpayers) to finance a leveraged buyout of the country. This sits very nicely with my long-held notion that Wall Street Banksterism exists for the purpose of separating you from your money. As Catherine notes, the government has created, via force (Central Banking), the ability to print the paper while the military makes sure everyone takes it. Meanwhile, the US extracts natural resources on the cheap.

She also discusses the government move to centrally plan the food supply, agriculture, nutrition, and health, with national health care being a massive coup for the people who own us. She talks about how societies have moved from eating healthy food on a self-sufficient basis to a dependent role where people have become entirely dependent on corporations for food that is not healthy – she calls this “planetary slavery” of the most evil sort. Government policy, as she notes, is enabling corporations to have patents on life by creating terminator seed and controlling seed and food supply, as that supply is being genetically manipulated.

On that same topic, she discusses how the pharmaceutical companies have a negative economic return. By this she means that the health of Americans continues to deteriorate while they continue to make more money. Big Pharma goes to Washington to liquidate the wealth of the people and prop up the corporations. They force profits into the pharmaceutical cartel of the tapeworm. And government steers the profits their way. This is a non-alignment between the interests of the people and the interests of the corporate state.

She also talks about a lawsuit against RJR Nabisco for money laundering all over the world when the company was owned by KKR, one of the most prestigious private equity and leveraged buyout firms in the world. And while Henry Kravis was on the cover of magazines being held up as the next Warren Buffett by the American media, Catherine notes, “No he’s not; he’s the next mafioso.” But those people are honored because there is no transparency in the economy.

I like her take on how the “official story,” as passed off by the government and its minions, has nothing to do with the real story. The real deal eventually starts to sneak into the public mind, and when that happens the “attack poodles,” as she calls them, come out and try to kill any story that is told outside of the official story. And thanks to the Internet, those attack poodles are losing power and being killed off. After all, the numbers (and countless media bankruptcies and closed media outlets) are showing that big media is dying while people are gravitating to the real stories.

Catherine’s story is the real story.

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12 Responses to Wall Street Banksters and the Tapeworm Economy

  1. M. Terry says:

    January 31st, 2011 at 12:30 pm

    The parasite has been bigger than the host for some time. Now the parasite simply obtains 40% of its blood from other, willing, hosts.

    How long can this last?

  2. Iluvatar says:

    February 2nd, 2011 at 12:40 am

    ——————– OFF TOPIC ALERT ——————–

    Yes this off topic, but I think it is worth your while to start to digest given the recent upsurge of the TEA Party, and austerianism that is beginning to take hold in this country (Republicans).

    I have struggled and I have certainly had my rants in regards to the economy, the public unions excessive pension guarantees (certainly, Mish has had enough), and the disastrous effects that have ensued (counties, cities declaring Chapter * (e.g., bankruptcy)), the issues of “monetizing the debt”, the issues of a Federal Gov that simply refuses to obey the Constitution, the absolutely poor wording of the “Big C” (“If I Were King For A Day”), the issues of “free” money (college loans and the distortions of colleges thereupon), and “free credit” and its distortions (Marc Faber’s “crack-up boom” in the housing market).

    Clearly, from an Austrian view, can we agree that a mis-allocation of capital has occurred and continues to do so? (DUH!)

    But I feel that a new form of thinking is needed.

    We need to integrate the understanding of how our monetary system IS (e.g., a fiat currency that is non-convertible and floats against a basket of other currencies) – those are 3 things there: 1) it is fiat – it is in the monopoly control of the Fed Gov and it is “fake”, 2) it floats – it ain’t pegged to anything (like Gold), 3) it ain’t convertible – you can’t trade in for gold at your local bank. The ramifications of this system over the prior system (before Nixon closed the gold window in `71) are enormous – it’s a game changer.

    And the majority of Austrians REFUSE to get this FACT.

    This bothers me greatly.

    Lately, while digesting MMT (Modern Monetary Theory via Bill Mitchell (and also reading CofFEE reports that also concern me greatly)), I have grown very concerned about the current (republican) sentiment to cut the deficit as if we were a household (HH).

    The Fed Gov is NOT an HH! It has “vertical” control of money (exogenous). It’s “debt” is not the same form of debt for the HHs and CORPs.

    And, I believe that it has the capacity (via a Mosler’s Tax relief holiday) to help the HH deleveraging process (or to effect mortgage cramdowns via BK law improvements).

    We have a HH balance sheet recession here, fellas! It ain’t gonna get better until we start adhering to Austrian rules of proper living (translated – you take your discretionary income and SAVE IT – you stupid soccer Mom!).

    But to have the Fed Gov attempt to achieve a surplus at this point is a frickin’ disaster.

    And that is exactly where the current intelligence of Congress is heading – cut spending.

    God help us!

    I have said this before elsewhere, but the best way for the Fed Gov to spend is not to tax (oil is still traded in US$ – we won’t see a loss of demand for $ due to NOT taxing (plus the illegality of it makes me want to stick a finger down my throat!)). That hits the HHs head on.

    While I still believe that a concerted effort in Congress needs to occur regarding the proper role – i.e. the Constitutionally authorized role – of the Fed Gov (I’d love to see it whittled down to about zippo – save defense and Dept of State needs), and while I still believe that the Fed Reserve (a PRIVATE organization NOT a PUBLIC ONE!!!) needs to disappear or be absorbed into the Treasury (since we don’t really need to issue Trsy’s anyway, they only drain our reserves), I still can not feel but a little hopeless w/ the current desire by Reps to “cut the deficit”.

    Hey man? do it later after the HHs have had a good crack at deleveraging – KAY?

    ANd the Austrian position of sitting on the fence is bothering me too (a lot! actually – I actually don’t want to hear “Scary Gary” or the “Mugambo Guru” anymore) – they don’t get our monetary system.

    But here is a positive.

    Today, I actually got Mish and TPC to collide (I tattled on TPC to Mish and then he posted). What they threw up was at least, very interesting (an MMT’r discussing w/ an Austrian who gets credit via Steve Keen).

    The links they threw up are a grerat place to start to understand both our money system as well as how our Fed Gov does business (fiscally, that is). I include them here, as well as another Austrian who is tired of Austrians (my thanks to Tom Hickey who is anchored solid in MMT):




    ————————— END OFF TOPIC MESSAGE ——–

    peace brothers and sisters

    et bon nuit!

  3. Iluvatar says:

    February 2nd, 2011 at 12:46 am


    the last link should be:


    bon nuit toute@!

  4. clark says:

    February 2nd, 2011 at 2:28 pm

    Iluvatar, when you say, “And the majority of Austrians REFUSE to get this FACT.” I’m at a loss, is that an error that should read, Republicans, not Austrians?

    Have you spent any time reading Gary North’s refute of Mish?
    Mish seems sort of clueless to me.
    Have you spent any time over at The Daily Bell reading about Real Bills and gold?

    Imho, Austrians, “sit on the fence” because there’s no changing the ways of those in power using persuasion, those in power have to learn the hard way via Humpty Dumpty economic collapse or something close to it before they change their ways, If even then.

    I’m more partial to those who say let the free market decide, when it comes to forms of money, or anything else.

    It seems to me you’re trying to keep Humpty from falling off the wall, in other words, more of the same.

  5. Iluvatar says:

    February 2nd, 2011 at 6:52 pm


    First question. I meant Austrians. But I am singleing them out b/c I look to them to help create a better economy. I don’t think Republicans OR Democrats (i.e., politicians in general, and furthermore a lot of economists don’t either) get it either. I just don’t care about the latter group. I don’t look to them for solutions.

    I have read the debates between Gary & Mish. I agree w/ Mish & Keen about a credit-led fiat-followed monetary system (compare the money stock (supply) to total amount of credit privately held). If Gary understood velocity, he wouldn’t be calling for massive inflation (I like Scary Gary by the way, I just don’t like his call on inflation). If you read Vijay’s paper on the provided link, it has a very good explanation why inflation (of the money stock) is unlikely. I’ll defer to that.

    But they shouldn’t be sitting on the fence. They should be calling for better stewardship of our currency, and abolishment of the central bank (at least it won’t be in the hands of the bank class anymore), & the proper expansion of credit. We need to get into these guys faces.

    The virtues of Austrian thinking (saving, the errors of too high credit expansion, the boom-bust cycle) need to integrate the new paradigms to become a truly effective form & forum of economic thought.

    As to the free market – they did. They decided on the fiat system that we have.

    I want Humpty off the wall and the egg shell swept up as fast as possible. I want the banks to realize their losses and move on – good bank/bad bank Swedish style. Just look @ Iceland! They are starting to pull out of this! The pace of this chosen so as to not seize up the credit markets. I don’t want a Japan here – 2 lost decades.

    Hey, now this is cool. On page 27-28 of Vijay’s paper he discussed why Helo Ben is taking the path he is taking. It’s bankster-motivated politics.

  6. clark says:

    February 2nd, 2011 at 9:20 pm

    Iluvatar, Your links are bullshit, imho.

    The Authors are Kensyians pretending to be Austrians sticking with a slogan that parallels, “subprime is contained” while misrepresenting the views of the Austrians.

    I could say more but it would take too long.

    Neil Wilson commented on one link and summed them all up quite well:

    “At what point is the phrase ‘monetizing enough debt’ going to replaced with the much simpler ‘spend’ in these sort of papers?

    Once you do that you get to the straightforward ‘the government sector needs to spend more to get us out of this mess’.”

  7. clark says:

    February 4th, 2011 at 10:08 am

    Iluvatar, when you say, “I agree w/ Mish & Keen about a credit-led fiat-followed monetary system” all I hear is, you’re a Keynesian too.

    Iluvatar says: “But they shouldn’t be sitting on the fence. They should be calling for better stewardship of our currency, and abolishment of the central bank (at least it won’t be in the hands of the bank class anymore), & the proper expansion of credit.”

    Austrians do call for better stewardship in the currency, it’s called the free market. Many Do call for abolishment of the central bank, it’s called End The Fed.
    The Austrians do not think credit should be expanded, real wealth is built on savings, not credit. You’re starting to sound like a greenbacker here wanting to put the power of money creation into the hands of state government.

    The free market did Not decide on the fiat system we have today, it was imposed upon us by government and enforced by legal tender laws.

    Iluvatar says: “If Gary understood velocity, he wouldn’t be calling for massive inflation”

    I came across this, and if this is real, the advise given by Mish does Not sound like he expects deflation, but rather significant inflation:

    “I was just reading over at Mish’s blog, he’s one of few that I respect for advice adn just general information about the markets. Here’s a blurb from his blog, I believe the advice he gave Stepahnie was about as good as it could get:

    Here is an email from “Stephanie”. She heard me talk about the economy on Coast-to-Coast AM radio with George Noory.

    Stephanie writes ….

    Hello Mish,

    I don’t know if you give advice, but I heard you on Coast-To-Coast and you seem to know what you are talking about. I am 65 years old, get $938 from Social Security, and this is all I live on every month.

    I have a CD that is about $16,000 now and is providing $75 a month. In about a year that will stop because the interest has gone down so much. If you were me, what would you invest in?

    I lost $2,000 in the stock market a few years ago and the way it is now it is rather scary. I don’t know what else to even consider and when I ask my banker he seems to be at a loss too.

    Any help you could offer would be a blessing. Thank you for your consideration and kindness.

    Stephanie – Somewhere, USA

    Clobbered by the Fed

    Hi Stephanie

    You and many others are getting clobbered by the policies of the Fed. Not only did taxpayers bail out the banks at taxpayer expense, Bernanke and the Fed continues to do so.

    By holding interest rates low, the Fed is hurting everyone on fixed income with savings in the bank or CDs. You get almost no interest on your savings, and that is robbing you and everyone else like you.

    Bernanke is hoping people like you gamble and invest in risky assets. Indeed, he is doing everything he can to force people into taking more risk.

    Don’t do it. It is not a prudent thing to do.

    The stock market is extremely overvalued here and could easily decline hard. Indeed, I think it will at some point.

    Emergency Fund in Cash

    My straight forward advice to everyone is to have an emergency fund of at least a year’s worth of living expenses in the bank before they invest in stocks, bonds, gold or anything other than short-term CDs or treasuries.

    It is obvious that Bernanke’s concern is doing what is best for banks. He shows no concern about the damage he is causing elsewhere.

    Bernanke is a Coward Hiding Behind Mathematical Formulas

    I wish I could get Bernanke in a room with you and everyone in your position, and take questions from you.

    Bernanke will not do that because he is a coward. He hides behind mathematical formulas, the same ones I might point out that told him housing was not in a bubble, there was no risk of recession, and that the unemployment rate would not top 8%.

    He did not know what he was doing then, and he certainly does not understand the risks now.

    Moreover, his “Quantitative Easing” policies have helped fuel speculation in commodities, especially food and gasoline. That speculation is contributing not only to rising prices in the US, but even more so globally.

    To be fair, there are some severe weather problems in other parts of the world that affect growing conditions and thus food prices. In addition, there is massive credit expansion in China and India that puts upward pressure on food and energy.

    However, there is also little doubt that Bernanke has fueled commodity speculation with his low interest rate policies and that too has pushed prices higher.

    Believe it or not, Bernanke is worried that prices might fall. I suspect you would love to see prices fall, and so would everyone else in your situation.

    Unfortunately, Bernanke intends to keep interest rates low until prices go up to his liking, and then when prices do start rising, interest you earn on your CD will not keep up with prices.

    Bear in mind, that the Fed excludes food and energy from the prices they monitor. They desperately want housing prices to rise. However, the Fed can make money available, but it cannot control where that money goes.

    Serial Bubble Blowing

    The Fed’s loose money policies fueled a housing bubble last time, now money is pouring into commodities, junk bonds, and leveraged buyouts (once again). This is bound to end badly once again.

    Meanwhile, the unemployment rates is still 9.4% officially, and much higher unofficially.

    Fed’s Policy Is Theft

    Stephanie, it’s a little known fact that inflation benefits those with first access to money, such as the banks, the wealthy (via rising asset prices), and the government (think rising sales taxes and property taxes when prices go up).

    Everyone else gets screwed. You are right in the middle of the pack of those most hurt by the serial bubble blowing policies of the Fed.

    Viewed this way, Bernanke’s policies are nothing but theft, robbing the poor, for the benefit of banks and the wealthy.

    This is why I support Congressman Ron Paul’s effort to end the Fed.

    No Good Solutions for Those on Fixed Income

    Your dilemma is 1-year treasuries yield a mere .23%.

    Unfortunately, I have no good investment solutions for you, because there are none. You are not suited for stock market risks, and if there is any chance you will need to use your savings any time soon, you cannot afford to risk being in long-term CDs.

    Arguably the best thing for you to do is find a bank that has 1% or higher rates on savings accounts.

    Avoid Fees

    There are some other common-sense things you can do. For example, it is critical for you to avoid all fees. If you have fees on your checking account now, find a place that does not have them. Bankrate can help on CD rates, savings rates, and checking account rates.

    Invest in a Freezer

    I do not know whether you have a home or an apartment, but if you have room, get a suitably-sized freezer and only buy meat on sale. The price of meat on sale is frequently 50% or less of meat not on sale.

    Wrapped properly, many food items will last a year or longer. Use freezer paper for roasts and date every package. Packaged bacon also freezes well. I only buy bacon when it is 2 for 1. If you are nimble, learn to cut your own chicken. If not, buy the cuts you like on sale and freeze those.

    Buy ground beef on sale and make patties the size you like and freeze those. Pork chops freeze well too. I use good quality plastic wrap doubled up. Costco has excellent quality wrap in a large spool that will last a very long time. Get all the air pockets out or you will get freezer burn.

    Vacuum packaged cheese also stores well. It needs to be refrigerated and can be frozen, but does not have to be frozen.

    Buy storable commodities such as spaghetti, pinto beans, brown rice, etc. on sale. Try not to buy anything unless it is on sale. Then buy large quantities.”

    Iluvatar says:”need to integrate the new paradigms”?
    Sounds like just another way of saying the, “new economy” of the 1990′s and how the business cycle was defeated.

    Iluvatar says: “I want Humpty off the wall and the egg shell swept up as fast as possible.”

    Then you want sound money, not an expansion of credit, a.k.a. More spending.

  8. clark says:

    February 4th, 2011 at 4:17 pm

    I was reminded of Iluvatar’s comment, “(compare the money stock (supply) to total amount of credit privately held).” and why inflation of the money supply is likely while reading this portion of the article:

    Central Banks Now Creating Hyperinflation?

    “Each powerful central banker – Trichet or America’s Ben Bernanke – is empowered to make their own decisions as to when the time comes to act and to remove currency from the system by various purchasing strategies. But the trouble with such strategies, as we’ve pointed out many times in the past, is that there is no mathematical equation that actually makes it clear when to act. This is compounded by the issue of how much money is too much.

    There is no scientific way of figuring out how much money an economy needs. There is no scientific way to figure out when to drain money from the system. In fact, by the time price inflation becomes a visible problem it is probably too late. This is why it is so important to use free-market money, as Austrian, free-market economists argue.”


  9. Iluvatar says:

    February 6th, 2011 at 2:53 am


    Wow! What an investment of effort here!

    I congratulate you – this was an excellent piece of work.

    But I wanted to start off by saying that I was not going to respond to your initial retort post simply b/c it would take too much time (I am writing proposals right now & working about 7 days a week). But let us start off if your first retort (and it was entirely valid and hence, helps prove my point).

    First post: “Iluvatar, Your links are bullshit, imho.

    The Authors are Kensyians pretending to be Austrians sticking with a slogan that parallels, “subprime is contained” while misrepresenting the views of the Austrians.”

    The last 2 (valid) links are exactly just that. They are links to Edward Harrison who is (sort of) giving up the ship on Austrian thinking.

    And that is sad to lose an expert in the field such as he.

    Edward was as AUSTRIAN as they come and now he’s leaving???

    That’s a loss!

    But Austrian thinking must meld in the new realities. I strongly recommend that you read Vijay’s paper. Pay strict attention to his citing of the banking law changes that allowed “sweeps”.

    I have seen this so many times before that I am almost going blind over it: “Banks ARE NOT RESERVE CONSTRAINED” (in terms of lending).

    A bank’s balance sheet is “upside-down” compared to a HH balance sheet.

    On the sheet, for a bank, deposits are liabilities (they might have to be paid off upon redemption), and their are RESERVE requiremnts placed against them, for LOANS, these are listed as ASSETS (the bank gets money from them), and they must maintain CAPITAL REQUIREMENTS against them.

    So banks (in the new era), are NEVER reserve constrained – they are CAPITAL constrained.

    And since so many loans are heading to toast – the banks are B/K (and that is why Helo Ben is bailing them out).

    On your second point, Edward Harrison ADMITS to being an ex-Austrian who is going Keynesian! It was stated in the 2nd link I furnished. He wasn’t trying to hoodwink anyone on why he was departing the Austrian clan. Ditto for the 3rd link.

    OK, now on to your 2nd post:
    “Iluvatar, when you say, “I agree w/ Mish & Keen about a credit-led fiat-followed monetary system” all I hear is, you’re a Keynesian too.”

    That is not correct, first of all, I DO NOT FOLLOW LABELS – I ain’t Keynesian, NOr can I consider myself AUSTRIAN, anymore than I can consider myself Libertarian (I am just a simple man who wants to be free – I have NO stomach for the technical details of contract rights ala Libertarianism). The ONLY label I might accept (& I hate being a member of clubs btw) is that of being an Existentialist – period. Just so we are clear on that point.

    Your 2nd point being about our monetary is a factual truism. WE ARE a credit-led fiat-followed monetary system – it’s a fricking fact! But that doesn’t earn me the label of being Keynesian – I didn’t this!@!@ And it doesn’t necessarily mean I AGREE!?@?!?! C’mon man!@!

    Your 3rd point: “Austrians do call for better stewardship in the currency, it’s called the free market. Many Do call for abolishment of the central bank, it’s called End The Fed.”

    Ummmmm…., just exactly where is the “free” market these days????

    Where do you see a free markey, anyone? Oh yeh, in the donuts and fast food industry (CRAP!).

    Look, I would like a truly free market more than anyone..

    But that certainly would not describe Wall Street! I mean realy. It certainly would not describe Monsanto, or Archer Daniels, or Exxon.

    We have a “bent” captitalism here.

    It is what it is and so is our monetary system – we need to deal w/ the realities in place/

    Hopefully, we might be able to get it back to “top dead center”? I wish that were the case – there is a lot to unravel here…

    Let us be VERY clear on the use of the word “inflation” – I have railed about this more than once:

    DEFINE: monetary “inflation” IS the increase of monetary supply/stock. Price inflation is the increase in COST to consumption-oriented goods & services. Commodity inflation is the rise in price of INPUT prices to businesses.

    Where Mish and others have taken a stance on “inflation” regards the MONEY Supply, i.e., the deleveraging of the HH sector. Debt destruction/write-downs are a deflationary event wrt the money supply/stock. And in that regard, I believe both Mish and Vijat are correct.

    BUT!, we are also seeing input prices RISE (every frickin’ commodity has risen through the roof this past year – check out WSJ commodities section for the low-down on corn, sugar, sweet crude, COPPER!).

    Food is more expensive, and gas is more expensive.

    BUT! Where the hammer hits the nail is where these input price increases have NOT yet been able to be passed on to the consumer. Why? B/c they CAN’T. They do that and demand drops!

    So we have to VERY CLEAR on what we MEAN when we say “inflation” is on the onset vs. “deflation” is on the onset.

    And Mish is calling for deflation, while others are calling for “disinflation”.

    What can not be ignored is the FACT that HHs are over leveraged and can not take on more debt to fuel their spending. That’s basically a slam dunk.

    I already ready read that posr by Mish’s post so let’s move on to the end of your 2nd post.

    This IS my major point. WE NEED to integrate the new paradigms of having a fiat currency, new banking laws that admit NO reserve requirements (I’d like that law changed immediately IF I thought that would change the nature of banking – I would instead DEMAND HIGHER Captial rqmts!@!@), and banking operations in general. But that’s me…

    Your last comment of the 2nd post I wanted to tackle since I am still trying to wrangel in my own head.

    Certainly, I want us to be “good” stewars of our currency. But what does that really mean EXACTLY????

    It means I want a strong dollar despite the fact that the USA has been on the negative side of the import/export business for quite some time (i.e., we have a negative trade balance). A good steward means you keep the faith in your (POS) fiat strong. It helps keep (your completely unecessary) debt offerings cheap. (Under MMT thinking, offering debt is a hangover from a Gold standard (or otherwise pegged currency system)).

    Your last comment 2nd posting:

    I want the toxic debt buried and acknowledged ASA f*cking P!!@!@! The losers must lose, and the haircuts need to happen. The Fed is beholden to PRIVATE interests NOT PUBLIC ones (The Fed is owned by a collection of PRIVATE banks – is that who you want making monetary policy??? You’re sure that it shouldn’t be in the hands of our government – why do you think Ron Paul wants to “audit” the Fed?? It needs to be destroyed DUDE@!!@)

    Your very last comment of your 2nd posting: Now here is where I am in turmoil. I am an EE w/ an applied mathematics and I STILL CAN NOT refute the work by Bill Mitchell in his “TAM” (transactions account matrix) which basically states that when a country runs an account defict in trade, the ONLY WAY that the private sector can run a surplus (i.e., either SAVE or SPEND), is if the Gov sector runs a DEFICIT!

    Which means the Gov MUST spend in order to save the HH sector (the CORPS as well)!

    Does that sound Keynesian or WHAT????

    But that is mis-spoken since MMT isn’t ABOUT being Keynesian, it is about maintaining money flows.

    And where MMT excels (Modern Montary Theory) is in identifying how money flows in our fiat sytem (stock/flow analysis). Of this, I have little doubt. Check out Bill Mitchell on his “BillyBlog” site.

    But when you do, please be prepared to HURL! There is a lot we have to overcome (especially if you are Austrian), to get to the hard core numbers.

    Trust me, I certainly did. And I am still hurling.

    As regards credit – this is the fuel for the businesses in our economy! But credit should be “right-sized” rather that being artificially by a Fed that is blowing (yet) another bubble. It needs the scrutiny of real adults!

    Your 3rd post: as a matter of fact, there is a scientific strategy for setting money supply and spending. From MMT, you NEVER spend more than your capacity, else you cause (consumer price) inflation.

    And yea, I ain’t no goddamn Keynesian (them are fightin’ words); I am an anarcho-vagabond whatchamacallit.

    peace brother,

    (I probably only missed about 10-15 points I needed to make)

    I am so tired, zzzzzzzzzzzzzzzzzzzzz

  10. clark says:

    February 9th, 2011 at 6:07 pm

    Iluvatar says:”Ummmmm…., just exactly where is the “free” market these days????”

    Few and far between, but they are out there.


    Garage sales.

    Others have said, in the center of cities with large Vietnamese populations.

    Whenever you pay the neighbor’s child to mow your lawn, especially when it winds up being less than minimum wage.

    In every city or area that has adopted its own locally created currency, there are quite a few.

    Just as legal tender laws have driven out good money, those laws and other regulations have driven out the free market.

    Iluvatar says:”these input price increases have NOT yet been able to be passed on to the consumer. Why? B/c they CAN’T. They do that and demand drops!”

    “very soon everyone will be naked, once companies finally realize they have no choice but to pass through surging input costs.”


    Also, “Investors,… will keep right on chasing returns in asset markets, seeking to remain ahead of the inflation curve…by driving up demand for all manner of assets, and wholesale and consumer goods, they are going to exponentially reinforce the price inflation already underway…”


    Iluvatar says: “The Fed is beholden to PRIVATE interests NOT PUBLIC ones (The Fed is owned by a collection of PRIVATE banks – is that who you want making monetary policy??? You’re sure that it shouldn’t be in the hands of our government”

    The Greenbackers call for monetary policy to be in the hands of goberment too. And what’s with this, “our” goberment? Where is there ever an “our” to it? It is, them.

    Monetary policy,… let the free market determine what that is, not banks, and not goberment.

    Iluvatar says: “the ONLY WAY that the private sector can run a surplus (i.e., either SAVE or SPEND), is if the Gov sector runs a DEFICIT! Which means the Gov MUST spend in order to save the HH sector (the CORPS as well)!”

    Yes, that does sound Keynesian.

    Reminds me of this, “…And government steers the profits their way. This is a non-alignment between the interests of the people and the interests of the corporate state.” – K.D.

    Also, I think Ingo Bischoff and Dr. Antal Fekete would disagree that is the Only way. While I disagree with some of what they say, you might like Ingo’s comments about Real Bills:


    And, Dr. Antal Fekete:


    There’s another thread where Ingo comments about Real Bills that is fascinating, but I can’t find it.

    Iluvatar says: “credit should be “right-sized”…as a matter of fact, there is a scientific strategy for setting money supply and spending. From MMT, you NEVER spend more than your capacity.”

    There is no way to centrally & mathematically & reliably determine credit size and capacity, or to regulate it.

    If you don’t want the label of Kensyian or Greenbacker, you’ve got to stop supporting their positions.

    It Is difficult to discuss, too many points to make, ect…
    Perhaps that is why so few People attempt to pay attention?

  11. Guest says:

    December 13th, 2012 at 5:57 pm

    Ponerology. Narcissists. Psychopaths. Your bossy Mother-in-Law writ large.

  12. Guest says:

    December 13th, 2012 at 5:58 pm

    Psychopaths. Narcissists. Without conscience. Your control-freak Mother-in-Law, writ large.

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