Green Island Backgrounders
- outside-the-box perspectives on life in Canada/Capitalistland


It's not 'austerity', it's looting

- when are people going to wake up?!?

- the end game is upon us - and everyone is sleeping through it

by Dave Patterson, June, 2010

austerity in Canada, in Britain, in Ireland, throughout Europe, New Zealand, Spanish public sector on strike against austerity plan , Public sector strike against austerity in Romania, England's university system is on "shaky financial foundations" and needs a radical overhaul, the universities minister has said, Ontario asset sale could raise up to $12 billion, Carney warns of 'age of austerity', Olive: For G20 leaders, fiscal austerity is the new normal - and etc, etc, etc, etc, etc - this list could be as long as you want to make it. It's one of the central principles of propaganda - repeat something endlessly until at least most of the citizens believe there must be some truth to it, if everybody in authority keeps talking about it as if it is true.

And it is all a huge lie - a grand plan to once and for all defeat the movement for democracy that has been growing in western societies for the last 500 years, and get back to the nobles and peasants feudalism desired by those who think they ought to be nobles.

Everywhere in the world, after the global financial meltdown of 08-09-10, countries are announcing 'austerity measures' and cutbacks - the rationale is that governments have been overspending, and now it is time to 'get real' and get the financial houses back in order, and, how terribly unfortunate, but the citizens are going to do the suffering (there's little talk of MPs sharing the pain, or the wealthy in society being expected to reduce any of their ROI expectations etc, which is at best a tad odd as the average citizens had bugger all to do with the meltdown, it was the excesses of the banks and the wealthy, enabled by governments either woefully incompetent or criminally conspiring with them, which led to everything). It is (cue crocodile tears) unfortunate, but this means pretty much every program governments had put in place for the benefit of average citizens will have to be cut, pensions must be reduced and retirement postponed, health care services drastically reduced, public services of all sorts curtailed, etc and etc.

It is long past time people started to understand what a massive lie this most recent 'austerity on steroids' stuff is, what a massive fraud has been going on in western 'democracies' for the last century and more, in one way or another, with the current 'austerity' measures being something like the end game, the coup de grace, after which the 'natural order' of nobles and serfs will once again be restored in the world - this time the chains being financial, and with no need for overseers with whips and dogs keeping the peasants in line, because the rulers have learned much over the centuries, if the peasants themselves have not, about power and its maintenance.

It's all about money, in the end - it is, of course, money that separates the fabulously wealthy never-have-to-work "nobility" from the peasants, of some of the modern variety may live in middle class comfort, but most in or near abject poverty, working their lives away for little more reward than a bit of shelter and enough food to maintain them in a state of good enough health to get to work the next day to continue the terrible cycle. A great part of the drive for democracy over the last few centuries has simply been increasing the share of the national wealth produced by the workers of any country they get to keep themselves, both personally and through their government, which provides things they cannot provide alone, such as education and health care, transportation and communication infrastructure, etc. It's a bit of a synergistic course, as citizens with a bit more money at the end of the week, and a bit more security, and a bit more education, start thinking more about things like democracy - and as democratic governments start to become confident and provide more things for the citizens, the wealth and security increase, the expectation of certain rights grows and expands, and on and on. Feudal society has no such things - the lords are masters, the servants are to all intents and purposes powerless and moneyless, with little education and no rights. It's not a matter of much controversy which type of society those who would be nobles are happier with, and which type the citizens desirous of a half-decent life in some kind of democracy prefer.

And if you can stand back from the frantic activity the modern world immerses us all in from day to day, and look at the current "austerity" program epidemic through that particular prism, in the additional light of some other things the mainstream media doesn't EVER talk about - things start to look a little different. Some lights start to come on, shining in places some people would prefer you didn't look.

Since time immemorial one of the central struggles of civilisation has been democratic forces of one sort or another in conflict with those who wished to rule their lands omnipotently as god-kings. It has been an uphill struggle all the way, as those with strength and cunning and ruthlessness have usually managed to find a way to prevail against the masses of quieter, less confrontational average people, but by sheer force of numbers, one slow step at a time over the centuries, the democratic forces managed to make steady progress in terms of establishing some form of at least stand-off with the not-quite-omnipotent rulers, and were even getting close to almost-real democracies in some of the western English-speaking countries by the late 1960s. But then during the late 60s and early 70s, the 'we would be omnipotent rulers!' forces, under the umbrella of modern neocon economic 'policies' presented as scientific fact rather than the self-serving junk-economics they really are, along with the support of the major media which they had taken control of and carefully kept from the public any word of what was actually happening, managed to become dominant in all western English-speaking almost-democracies, and take the ages-old struggle into new territory, with modern new weapons - and after 30 years of their dominance, the end is in sight. As in, the 'we'll be kings again!' gang win, the people who have fought for 'democracy' lose.

It has been a well-executed coup, as evidently few of the citizens of these western countries are capable of understanding what is happening, and as Sun Tzu and others have noted over centuries, the best victory of all is the victory wherein there is no battle because the vanquished do not even know they are in the process of being conquered until one day the sun rises on a new regime. The citizens of today, the descendents of those who struggled for centuries to create a better country and world, are not looking very good, as everything generations of their ancestors struggled and sacrificed to build is being stolen right in front of their faces, and they have no idea what is happening, and make no more than the meekest protests.

The basic scam that underlies this modern coup is really quite simple, as are most such things which are designed for lowest-common-denominator crowd minds. It starts in the 1960s, by which time, in response to the demands of a citizenry very angered at the excesses and mismanagement of the previous half century of unprecedentedly destructive world war and depression, had elected politicians who had undertaken various programs in response to citizen demands to help the average people of their countries lead better, more secure lives, things like subsidized education, health care, unemployment insurance, old age pensions, etc and etc, all things which help increase a citizen's general security and ability and knowledge to participate in the governance of their country. For those who would be rulers, such prosperity and security and democracy was very much to be seen as a threat (as noted in The Carter Administration: Myth and Reality, Noam Chomsky), so steps needed to be taken. Financially, this capping and pushing back of nascent (real) democracy started during the late 60s-early 70s when, using various excuses, the wealth sector (corporations, banks, wealthy 'investors' and 'businessmen'), the major contender as a group for control of our society through the ages, got governments (another thing the masters of money figured out early on was that money invested in purchasing governments was the investment that kept on paying off bigger and bigger over the years..) to cut taxes to the upper income brackets, thus reducing government income. When corporate taxes on the weathiest sector of society were cut, of course, the governments quickly ran into imbalances between income and the money required to maintain these programs.

And here the killer virus was introduced into the game, a virus which would mutate and grow behind the scenes for a number of years until finally emerging onto the stage with devastating results as a cancer which had metastasized through every sector of the economy. The virus was this - instead of using government-controlled, nationally owned banks to make up the deficits caused by trying to maintain government programs in the face of reduced corporate taxes, which would have been essentially interest-free borrowing, the governments went instead to private lenders, who are primarily commercial banks 'purchasing' government bonds. The thing most people do not understand, however, is this: when private banks make loans (as they are technically doing when purchasing government bonds), they do not go into safes of some sort and get a few bags of money they already have on deposit from their depositors for the loanee - they just create the money they loan, essentially, as the saying goes, out of thin air. This bank-created money is the source of virtually the entire money supply of every modern country, money created/loaned into existence through commercial lenders and, or course, and this is the important thing, money on which the borrower must pay interest as long as the loan remains outstanding. (if you are unaware of the money creation process, a good short film explaining it can be found here - Money as Debt II - that so few people understand this process is a good part of the reason the rulers managed to create the problem they are currently using to steal the entire wealth of the world ...).

So this is the key thing - what the governments were doing during this time (and they continue to do - no cancer so bad it can't get worse, no peasant so broke they can't squeeze another drop of blood from him ...) was allowing private banks to create money, which the governments then borrowed from them, at interest, rather than creating exactly the same money themselves, interest free.

Well, the years passed after this virus got introduced into our economies in the 70s, and with more borrowing and tax cuts over the next few years, including that mysterious leap of interest rates into double digit seriously usurious figures engineered by the very people who should have been looking out for us rather than goosing us into completely unpayable levels (the Bank of Canada) during the late 70s-early 80s, putting a big hike into already big outstanding loans often requiring more borrowing just to cover interest, suddenly by the mid-to late 80s most of our western English governments found themselves in positions of very large national debts that required a lot of interest to 'service', and large and growing annual deficits (often due to interest payments eating up 20-30 even more % of that annual budget, helped along by ongoing corporate tax cuts year after year after year), and with the assistance of the media (David Rockefeller: We couldn't have done it without you ..) and government puppets, began making large noises about out-of-control national debts and unsustainable deficit spending and the need for 'austerity' measures etc - they've been doing it in Canada for 25 years, and are still at it (and the perps are still raking interest in on all that money previously borrowed at 50-60 billion per year (pg 10 - Public financing for public debt) - money they created out of thin air. Scams don't get much better.)

All of it completely unnecessary.

And as bad as that was and is, it was just the groundwork for the coup de grace, currently unfolding around the world, with Greece, Spain, Portugal and a couple of other European countries leading the way, but every western country jumping on the 'austerity' bandwagon, as noted in the headlines at the first, and I am sure you have seen them yourself, as it's a rare day these days when there isn't some talk about it somewhere - that's the way these things get created when the rulers decide to do something - a media flood with one single message from every different direction, until everone understands what the peasants are required to understand ...

Get this for the greatest in-your-face scam of all time - essentially out and out theft from populations apparently too dumbed down, and perhaps in some form of economic shell shock, from too many years of television and pabulum media to understand a brazen scam going on right in their faces - a few still awake enough to be angry and do a bit of protesting, but apparently incapable of actually figuring out this in-your-face scam, and reacting with rage and revolution and guillotines instead of sulking anger and impotent fist-waving. It works like this, in a big picture way: The banks create too much money as loans in an intentionally created asset inflation game, funding things like insane hedge funds valued at several times the entire actual wealth of the world, and scores of billions worth of subprime mortgages - and then when the bubbles break as bubbles inevitably do, and people and speculators start defaulting on loans that were doomed to failure from the beginning - suddenly the bank books are in really bad shape, and even by their own amazingly open rules they cannot create new money (as loans) until they get back into some form of stability, low and highly opaque though that bar is for them. So the government "reluctantly" decides to bail them out - and what do the governments do for their bailout funds? They could, of course, being soverign state governments simply order their treasury or national bank to create the required amount of credit, interest free, and do what they had to do - but not a single capitalist government, in the face of this unprecedented worldwide financial crisis, decided to get their feet on the ground and take the sane path. Not one.

Instead, every single government involved in this bailout Brutus betrayal has gone to the very banks which created the crisis by over-creation of money/debt, and said "Create us a few billion or tens or hundreds of billions of dollars - and we will then borrow that money from you, and then we will give you that money to bail you out!" !!!!!!!!!!!!! Of course, then the government has increased its debt by that same amount of billions of dollars borrowed for the bailout - and now without blinking an eye the international financial people really go crazy about unsustainable government debt, and start demanding all government spending not directly involved with turning every possible penny over to the banks and other "investors" be more or less completely stopped - and this is when all the talk of 'austerity' programs get going - our debt is so horrible we have to do this!!

You can only laugh in amazement at the brazenness of it - and then when you look around at your fellow citizens, you start to realise - nobody sees the game! Nobody understands what an in-your-face theft this is! Nobody!!!

Most of these governments all have central government banks, of course, and could have created any or all of this bailout money debt free - actually they could have been doing this all along, obviously, since this whole thing began back in the 70s and not running up huge debts based on letting banks create money in the first place and borrowing it from them - but now, even with already massive unsustainable debts, when they need another big amount of money, instead finally of going to their own national banks for interest-free money - they AGAIN go to private banks, say create us some money, and borrow it from them!!! And then starts the talk of 'oh golly, look at these big debts we have, we're gonna have to cut back on anything we're spending money on for 'the people', sorry!!'

Utter lunacy, when you understand what is happening, like the captain of the Titanic looking around for another iceberg to hit - but apparently not one in a million of our modern citizens has the mental independence and simple alertness to take a step back out of the box and say Whoa!! what the hell are you people trying to pull here?!?!?! - 30 years of neocon control of the media and education system (via their purchased governments) have obviously done their job, resulting in populations well-trained to know nothing at all about economics, and listen passively to media-approved 'experts' who tell them to be good children and take the koolaid without complaining - there is no alternative, children.

One notes, only just a tad cynically, but not at all surprisingly when you understand the big picture here, that through all of these 'austerity' programs, when they're telling everyone they have to cut all kinds of things for lack of money, they continue to have one untouchable expense item (besides their own remuneration packages, of course, traitors take their 30 pieces of silver right off the top, always will) - the interest owing on all of that money they allowed the commercial banks to create and then borrowed. Lunacy sounds like too mild of a word, once you start to understand this.

Note - there are, of course, many, many other things going on with banks and money over the years besides the gov debts, of course, which have exacerbated our economic problems - I just single this particular manifestation out to highlight the massive brazenness of the scam involved with all of the 'austerity' programs being imposed on so many of us, so falsely.

It's time to stand up and say enough, I think. Won't be easy - but we're kind of at the end of game - we just throw in the towel once and for all, get our serf clothes out of great great grandad's closet and give the whole country to the banks as they obviously desire - or we get the fuzz from our eyes and brains, stand tall and do a Gary Cooper High Noon trick and say NO FREAKING MORE!!!!!, and then see about getting back what they've already stolen. Some kind of New Nuremburg Trials for thirty years of financial terrorism might well be in order once we get control - we'd have to build a lot of new jails, as the politicians, bankers, journalists and others at high levels of the International Financial Institutions such as the World Bank and IMF involved would number in the tens of thousands, and they're quite obviously the kind of people far beyond any thought of rehabilitation, and we sure as hell don't want them wandering around amongst us fomenting new frauds and scams as we try to salvage something that could be called a good society from the mess they have created of everything - but if we are going to start a new era of sanity on this planet, this evil must be exposed and rooted out everywhere its cancerous tendrils have spread and never allowed to infest our societies again. It sounds like an impossible task for little average citizens against these mighty world bankers and politicians and military and their all-pervasive propaganda apparatus known as the mainstream media - but then who would have ever thought little quiet hobbit Frodo would be the hand that destroyed Mordor?



Other reading: The above is but an overview of the situation, and obviously many questions remain undealt with. It is only intended to make a prima facie case of this massive scam, to try to open some eyes and get people looking deeper for verification and expansion of the ideas. I have a longer piece on what turning full control of the Canadian money supply over to private banks during the 1970s has meant for us, with over 30 years of cutbacks to date - What Happened? . As the ancient Chinese understood, a 'crisis' is also an 'opportunity' - our society is indeed in a crisis today for ordinary people losing life's savings and homes and jobs by the tens of millions, and those who created the crisis are seizing the golden opportunity to increase their wealth and power by orders of magnitude - but we could turn it into an opportunity to once and for all establish the right of 'we the people' to rule ourselves through a true democracy, to once and for all tell those-who-would-be-king that today, in 2010, we will finish what the lesser nobles started 800 years ago on the Field of Runymede - and henceforward there will be no nobles in our society at all - all men will be equal, finally. Noone will control our society for their own ends and wealth and power ever again - you have gone too far, you have given the final impetus to the nascent dragon of democracy that has been incubating for centuries - and now that we have awoken, we will be chained to your artificial debt bonds no longer.

Google around Monetary Reform and you'll find lots of interesting things - the American Monetary Institute is a good place, the film 'Money Masters' does a good job of giving some history of it all. But mostly it's just you - getting mad as hell at these bastards and really saying it and meaning it - we're just not gonna take this massive theft anymore. Little me and a few others in the middle of the lemming herd complaining isn't going to do much good - but if the whole damn herd wakes up, and starts going the other way - the handful of masters won't be able to do a damn thing about it. Except run. And we'll catch em.


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