Yet the Corporate propaganda machine calls this a "spending crisis," demanding that spending on people be slashed much lower; presumably so even more of our tax dollars can be diverted to military spending, interest payments to our Financial Overlords and corporate subsidies. Even more incredibly, not only do the Sheep passively absorb this economic mythology, but it is parroted on a daily basis by the brain-dead professionals(?) who absurdly refer to themselves as "economists." Spending flat, with revenues plummeting lower is not a "spending crisis." Naturally when one misdiagnoses an affliction one will mis-apply the "cure." What happens if a doctor prescribes a "diet" for a severely anorexic patient? Funeral arrangements. What happens if clueless, economic witch doctors prescribe a "diet" for severely anorexic economies? Greece ( and Portugal, and Spain, and the UK ). Three years of Austerity, and an unblemished record : all the economies who have allowed the economic witch-doctors to prescribe their Voodoo Austerity have grossly underperformed their peers. Put another way, the crippled Western economies which have resisted Voodoo Austerity (because our governments know exactly what will happen) have been disintegrating less rapidly than those afflicted by the witch-doctors' "cure." Austerity or no austerity, with our economies spiraling downward from globalization, suffering the worst revenue crisis in history and racking up year after year of "record deficits," we are also experiencing the worst insolvency crisis in modern history as well. The parameters here have now been clearly outlined. The Little People (i.e., the bottom-80%) have nothing left to tax. The Fat Cats refuse to pay taxes, and have passed those instructions along to their political servants. Spending on people has (literally) been "cut to the bone," while our corrupt governments refuse to cut their military spending or interest payments to our Financial Overlords, and corporate subsidies continue to increase. This has left these aforementioned morally/intellectually/economically bankrupt governments with only one option: the printing press. In Europe, in answer to the "Euro debt crisis," we have "unlimited bond-buying" (i.e. monetization of debt). With all these nations being massive debtors, ipso facto, unlimited bond-buying means unlimited money-printing to finance those purchases. Across the pond in the U.S., not only is the Federal Reserve now directly buying virtually every Treasury which lands on the market, it is spending an additional $500 billion per year in "open ended" purchases of trillions of dollars in fraud-ridden financial feces -- which the Wall Street Vampires have still been unable to purge from their cesspool balance-sheets. All of this from newly printed dollars. This direct, complete monetization of government debt is nothing less than desperation, a last-gasp measure to temporarily delay financial implosion -- but at the inevitable cost of hyperinflation . With this context in place, it's now possible to define and dissect our "Currency War," which will take place in Part II. Follow Jeff Nielson @bullionbullsThis article is commentary by an independent contributor, separate from TheStreet's regular news coverage.