LABOR DAY IS AN ORWELLIAN
HOLIDAY
Posted on August 30, 2014 by Carl Herman
Labor Day is an Orwellian holiday: US
“leaders” psychopathically pretend to care about American
labor while lying about a real
unemployment rate of close to 25% (the so-called “official” rate excludes
under-employed and discouraged workers).
Along with unemployment, Americans receive policy enabling
oligarchs to “legally” hide $20 to $30 trillion in
offshore tax havens in a rigged-casino economy designed for “peak inequality.” For comparison, $1 to $3 trillion
ends global poverty forever, saving a million children’s lives every month from
slow and gruesome death (here, here). And, as always, US “leaders” lie-begat Americans into unlawful Wars of Aggression (in
comparison, 11 days of US war cost would pay for all
tuition of US college students).
Americans could have full-employment and zero public
deficits and debt with monetary and credit reform. These solutions are obvious upon a few
moments of your attention. See for yourself:
What is monetary and credit
reform?
Since the 1913 legislation of the Federal Reserve, the US
has had a national “debt system;” the Orwellian opposite of a monetary system. What we use
for money is created as a debt, with the consequence of unpayable and
increasing aggregate debt. This is a description of the simple mechanics of
adding negative numbers. Although it’s taught in every macroeconomics course in
structure, the consequences of increasing and unpayable debt are omitted
(unpayable because it destroys what is used for money, and eventually the debt
becomes tragic-comic in amount).
Monetary reform creates debt-free money as a public service
for the direct payment of public goods and services. This would replace the existing
system of creating what we use for money out of debt; both from the Federal
Reserve issuing credit for US federal debt instruments charged to taxpayers
with interest, and private banks issuing credit through fractional reserve
lending.
Closely related is credit reform that replaces private bank
credit with public credit (and here). This transfers interest payments from private profits to
public service.
Benefits of monetary and credit
reform: no debt, optimal infrastructure, falling prices
The benefits include paying the national debt, ending a
national debt forever, issuing money and credit for full employment, and
optimal infrastructure. The prima facie case of benefits should undergo
professional multiple and independent cost-benefit analyses. The facts that a
Federal Reserve-type debt-based system causes
unpayable debt, unemployment, inflation, and decaying infrastructure is
relatively easy to demonstrate.
Debt begone:
Monetary reform pays the national
debt of over $17 trillion dollars virtually without cost, and ends its gross
$400 billion+ annual interest payments. This saves the ~100 million US
households an average of ~$170,000 in total debt cost, with ~$4,000 gross
annual interest cost. Another way to calculate the savings is to figure those
amounts per $50,000 annual household income (for example, if your household earns
$100,000/year, you save $300,000 in national debt costs and $8,000 every year
in gross interest).
The way the national debt is paid nearly cost-free is to use
government-created money to pay the debt securities as they are due instead of
what is done today: never pay them and “roll them over” (re-issue the debt to
existing owners or issue new debt to pay for redeemed debt instruments) while
only paying the interest. What is done today is similar to only paying the
interest on a credit card with ever-increasing debt total. The inflationary
effect of paying the debt will be counteracted by simultaneously removing
private banks’ fractional reserve authority proportional to the payments
(increasing banks’ reserve requirements).
When government has authority to transparently create money,
a national debt becomes a tragic-comic part of history. Trial and error will
inform total money supply, with an option of removing money from the supply
through some form of simple taxation. For example, if public credit
issues mortgages and credit cards at ~5%, this form of taxation can pay for
public goods and services with the ability to raise or lower the interest rate.
Again, proposals such as these should be subject to professional and
independent cost-benefit analyses.
Full employment, optimal
infrastructure, falling prices: Government can become the
employer of last resort for hard and soft infrastructure investment. This
provides triple benefits for employment, the best infrastructure we can
imagine, and falling overall prices to the extent infrastructure investment
contributes more economic output relative to costs of inputs. History demonstrates
infrastructure investment does reduce overall prices in the current debt-funded
model that typically adds ~50% of the projects’ nominal cost to its total cost.
Monetary reform with infrastructure means the cost of debt-funding disappears,
making this employment even more attractive.
Additional anticipated benefits are reductions of crime and
other social costs related to human despair as people see and participate in
creating a brighter future for all.
What’s missing for the
implementation of these solutions: Our 1% “leaders” will not and
can not implement solutions without becoming visible in criminal culpability
for having the current system that parasitically transfers literal trillions
from the 99%.
The solution to this problem is
also obvious: prosecute obvious criminals in
“leadership” in government, economics, and corporate media for fundamental
fraud by lying to the 99% that debt is “money,” and lying in omission by
failing to inform that public credit and money would solve all current economic
issues. The public costs of this fraud are trillions of dollars, harm to
millions of Americans, and significant totals of deaths.
An alternative to criminal prosecution is Truth and Reconciliation
(and here).
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