Austerity Insanity: Opinion

VANCOUVER, Canada (Bullion Bulls Canada) -- When Greece's traitor government inflicted "austerity" on its people, I stated the obvious: Savage and senseless budget slashing of money being spent on people would make its deficit worse, not better, and lead to the total collapse of the economy. That is exactly what happened.

When the U.K. began its pseudo-austerity, where it slashed spending on people while continuing to print lots of new "money" for its criminal bankers, I predicted that its deficits would get worse, not better, and eventually destroy its economy too.

The deficits have gotten worse, as this Businessweek article notes.

The only difference between Greece and the U.K. is that while interest rates on Greek debt were manipulated higher by the Anglo banking cabal, they have been artificially suppressed in the U.K. by (secretly) buying up all government bonds in order to maintain these fraudulent rates.

The same thing is taking place in the U.S., as I wrote at Bullion Bulls Canada.

When Spain joined the Austerity Club and began its own suicidal budget-slashing, I predicted its deficit would get worse, not better. That is exactly what has happened, according to Bloomberg.

This is nothing but simple economics. Our problem is that virtually the only people trained in this vital discipline are the brainless economists.

If mindlessly slashing government spending is always a good idea, then why don't we take all spending to zero? The obvious answer is there is net economic benefit to many forms of government spending.

A common example of this is welfare. Neoconservatives would tell us to "cut off the welfare" for the 60 million-plus unemployed people across the Western world -- permanently unemployed since our economies generate 60 million-plus too few jobs to sustain full employment.

With no jobs for these people, what are they going to do? Crawl under a rock and die? No. To no great surprise, history tells us that people will steal rather than starve.

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