Paul Krugman: "Central bankers acting like the priests of some ancient cult, demanding that we engage in human sacrifices"

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DrKrbyLuv's picture
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Paul Krugman: "Central bankers acting like the priests of some ancient cult, demanding that we engage in human sacrifices"

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As I look at what passes for responsible economic policy these days, there’s an analogy that keeps passing through my mind. I know it’s over the top, but here it is anyway: the policy elite — central bankers, finance ministers, politicians who pose as defenders of fiscal virtue — are acting like the priests of some ancient cult, demanding that we engage in human sacrifices to appease the anger of invisible gods.

Late last year the conventional wisdom on economic policy took a hard right turn. Even though the world’s major economies had barely begun to recover, even though unemployment remained disastrously high across much of America and Europe, creating jobs was no longer on the agenda. Instead, we were told, governments had to turn all their attention to reducing budget deficits.

Skeptics pointed out that slashing spending in a depressed economy does little to improve long-run budget prospects, and may actually make them worse by depressing economic growth. But the apostles of austerity — sometimes referred to as “austerians” — brushed aside all attempts to do the math. Never mind the numbers, they declared: immediate spending cuts were needed to ward off the “bond vigilantes,” investors who would pull the plug on spendthrift governments, driving up their borrowing costs and precipitating a crisis. Look at Greece, they said.

It seems almost superfluous, given all that, to mention the final insult: many of the most vocal austerians are, of course, hypocrites. Notice, in particular, how suddenly Republicans lost interest in the budget deficit when they were challenged about the cost of retaining tax cuts for the wealthy. But that won’t stop them from continuing to pose as deficit hawks whenever anyone proposes doing something to help the unemployed.

So here’s the question I find myself asking: What will it take to break the hold of this cruel cult on the minds of the policy elite? When, if ever, will we get back to the job of rebuilding the economy?

Mr. Krugman,

I can understand how an economist of your stature would wonder why every action taken by the “policy elite — central bankers, finance ministers, politicians who pose as defenders of fiscal virtue” seems to just make things worse. And it’s not just one nation or group; the entire west seems to be committing financial suicide simultaneously.

Devoid of any sensible economic logic, they appear to be “acting like the priests of some ancient cult.” You wonder if humanity is under occult attack…is the goal to degrade and enslave humanity, mentally and spiritually if not physically…are the children of Moloch offering human sacrifices at the altar of Mammon?

I don’t have the answers to those bizarre questions but let’s get back to economics to address your critically important question “When, if ever, will we get back to the job of rebuilding the economy?”

You aren’t the first to ask and I won’t be the first to provide the answer. For example, our financial crisis was prophesied in 1899 by M. Walbert in his quintessential “The Coming Battle.”

…[Banks] hold the most dangerous form of power that has yet appeared to threaten the material well-being of the race; which now holds every civilized and semi-civilized people in its merciless grasp; which is appropriating to itself the productive energies of the world; which is subordinating the press, the pulpit, and the statesmen of the day to its ambitious ends…”

That there is a gigantic combination of the money dealers, a powerful international trust of usurers, asserting a superiority above all jurisdictions, and having for its servants the so-called statesmen and potentates of various nations, who willingly register the decrees of this money power upon the statute-books of the respective states, is a fact that can be sustained by irrefutable evidence.

It is sought to point out the great dangers of delegating purely government powers to these greedy monopolists, by which they are enabled to organize a money trust, far more tyrannical than all the other combinations now in existence… It was there shown that the United States, by transferring its sovereign power of issuing currency to accumulate as money among the people, and delegating to a private corporation, had, in a period of less than fifty years, built up a monopoly that threatened to pull down the pillars of the republic.

The issue between these banks and the people will be joined in the near future, and the greatest struggle the world ever witnessed will take place between the usurping banks on the one hand and the people on the other.

This great international monetary trust now menaces the very life of this nation, and the people must dethrone it and subordinate it to their will, or American liberty will vanish.”

We are living in a dark period of both cultural and economic deterioration that will soon become an unimaginable nightmare. A renaissance (rebirth) will only happen if the United States takes back its sovereign power to issue and control money. The fate of humanity rests with the ability of the people to figure it out.


ashvinp's picture
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Re: Paul Krugman: "Central bankers acting like the priests ...

Paul Krugman and most economic analysts miss the point - our modern lifestyles are unsustainable and our expectations are grossly out of proportion to what our planet can offer us. He views advocates of austerity as trying to use some fiscal tool to cut deficits and return us to a business-as-usual growth paradigm, when he should view them as advocating for (or naturally going along with) a fundamental shift in human consciousness about what's important. Of course, right now, policy makers are geared towards bailing out financial elites and supporting the status quo, whether that goal be accomplished through "austerity" or "stimulus" or some combination of both that really encompasses neither - it really makes no difference to them. Fortunately, the complex dynamics of our global political economy may be too much for them to manage in the end, and we could have some form of true austerity - certainly painful, but a natural process that leads to sustainable societies.

Peak complexity in the global economy has profound implications and represents a process of death/renewal that has occured since time immemorial. TPTB may find it very difficult to continue micro-managing populations that are increasingly looking to themselves, their families and their local communities for daily support. The national and global institutions that appease these populations with promises of future growth and various entitlements, while gradually (now rapdily) transferring their wealth to concentrated groups, will be revealed as the shams they really are. How do you control a population that has lost all trust and confidence in your intent/ability to help them survive?

This issue ultimately goes beyond the limited fiscal/monetary policies of the U.S.A., and I wish people like Krugman would finally wake up and see the bigger context that we are operating in.

V's picture
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Joined: Dec 14 2009
Posts: 849
Re: Paul Krugman: "Central bankers acting like the priests ...

So Larry 

Is that a picture of Bohemian Grove?


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