Krugman Wants US To Imitate Italy’s Finances

Screen shot 2009-08-29 at 9.03.22 AMThe US is now a ZIRP economy thanks to government interventions designed to keep alive an economy wrecked by a credit bubble.  This credit mess is being fixed by wild government overspending. The effects of this is literally identical in our case to the path Japan took.  Japan fixed itself by basically committing mass suicide.  The society of Japan has been hammered for the last 20 years by the solutions chosen by the government and hopefully, this weekend, the LDP will go down in flames and never rise again.  The US has one political party right now, so we vacillate between two extremes that are nearly identical, so far as economics are concerned.


This should be obvious to everyone: both major political parties support ‘free trade’ nearly 100%.  So does US media.  As well as US business interests.  Also, all parties support tax cuts.  In the teeth of record spending deficits for the last 10 years, tax cutting is still very popular.  Also, both parties support insane and futile imperial adventures in distant lands.  Support for wild military misspending is rampant.  Both parties feel the floating fiat dollar is a grand opportunity to mishandle US finances to their heart’s desire.  Both parties support the internationalist status quo and protects foreign powers like Israel despite vicious abuse from these same powers.  Both parties cannot accept the obvious facts we face due to our trade deficit and the systematic deindustrializing and loss of capital of the US public.


Bloomberg news has an interesting graph today about Japan and the US.  Of course, we online bloggers have pointed out previously that the US is following Japan nearly exactly down the ZIRP road to depression hell.  But this graph is the latest update in this nonsense;


S&P 500 May Surge 40% in Duplication of Japan: Chart of the Day –

U.S. stocks are behaving like Japanese equities in the 1990s, meaning the Standard & Poor’s 500 Index may return 40 percent in the next year, according to Bank of America Corp…..“If there is one persistent similarity between Japan and the U.S., it is they both seem to be fighting a debt problem by producing more debt,” they added. “So, for equity investors, if these relationships were to repeat themselves, the risk for the U.S. market is that like Japan, the stock market ends up with big rallies and then sell-offs.”


Screen shot 2009-08-29 at 9.03.22 AM


Gah!!!!  This is NOT good news at all!  Of course, if there are any gnomes with any more money to play with, —e: Goldman Sachs and JP Morgan, for example—this will be a fun roller coster ride.  Profits will pour into their pockets as the US strives to mimic exactly, all the futile measures the Japanese LDP used to try to get things rolling again.  Instead of looking at this rationally and screaming, ‘OH MY GOD!’ the gnome community will rub their paws with glee and plan ahead.  That is, they will insure that they mimic this graph exactly!


This is the hazard of all graph reading schemes: they doom us to do exactly what is predicted because the gnomes will do exactly what is needed to fulfill the data in the graphs.  You can bet your boopies, the big dealers will all anxiously watch the climb in stocks and then do a mass sell-off in the 20th month of this downturn!  Then, they will pat themselves on their backs and congratulate themselves on being very, very clever.


Actually ALL graphs of ALL depressions follow this same bumpy road downwards!  This is due to economies ‘resetting’ themselves to new realities.  Realities that can last for centuries, if an economy is particularly relentlessly stupid.  We may not see another credit-fueled bubble of fake wealth for the next 100+ years!  Now, on to Krugman.  I used to respect him, about 8 years ago.  But as time passes, he angers me more and more and now, I want to slap him on the side of the head.  He has probably fallen apart the same way Professor Kennedy has mentally fallen: he has to please his bosses and the ruling elites who now pet and groom him and shower him with honors and gifts.


Since everyone hates my guts, I don’t have anything to screw up my talking.  So I am free to be annoying.  The latest attempt by Krugman to brush off our massive public debts and our vile trade statistics is ripe for tearing apart and as usual, I will interject my own comments in blood red letters:


Op-Ed Columnist – Till Debt Does Its Part –

Right now deficits are actually helping the economy. In fact, deficits here and in other major economies saved the world from a much deeper slump. The longer-term outlook is worrying, but it’s not catastrophic.


Good gods.  The world just saw a total collapse of international trade and finances due to the biggest credit bubble in history blowing up with a loud bang.  What we are seeing is a secondary credit bubble.  This is a vain attempt at recreating the previous credit bubble.  Libra has risen up and used Her magic sword to sever the links between credit givers and debtors.  She is now forcing us, step by step, to balance our books again.


We are resisting this with all our energy.  Which is actually very puny compared to Her powers of destruction.  We are given a choice between trying to create Infinity so that we can have eternal easy money via simply adding zeros to numbers on paper, or we get to zero out everything with a  massive depression.  The evil of this is obvious: we may get both, in spades.  That is, global stagflation.


The only real reason for concern is political. The United States can deal with its debts if politicians of both parties are, in the end, willing to show at least a bit of maturity. Need I say more?…..


KRUGMAN IS INSANE!  I can’t fathom how he can be this crazy and still not be hospitalized.  So, the only thing between the US and financial wealth is political?  I cannot detect any moves by either party to fix our finances.  That is, the GOP doesn’t want to stop war spending coupled with tax cuts and the DLC/DNC doesn’t want to stop social spending while fighting imperial wars.  Where on god’s green earth, are nay parties showing even slight signs of ‘maturity’?


Is Krugman suggesting that deficit spending is ‘mature’?  If so, it is senility, not maturity we are seeing.  The US is like a small child who wants to eat only candy and watch TV but also wants to be a sports hero.  We are not a sports hero.  We are the planet’s flabbiest and unhealthiest economy.  We can’t fix this with more candy!


…..Second, there have been large outlays on financial rescues. These are counted as part of the deficit, although the government is acquiring assets in the process and will eventually get at least part of its money back…..


In other words, the idiotic bail out of the biggest investment banks on earth will net us overall losses. Now, losses are losses. When we lose in a war, we lose all the money and blood we invested in fighting. This usually leads to economic and political collapse. The US fended off this collapse after losing in Vietnam by going to China and opening trade relations which we hoped would fix our financial losses. Instead, this opened the door to a vast shift in global power.

. …..In fact, we would be better off if governments were willing to run even larger deficits over the next year or two. The official White House forecast shows a nation stuck in purgatory for a prolonged period, with high unemployment persisting for years. If that’s at all correct — and I fear that it will be — we should be doing more, not less, to support the economy…..


This paragraph is proof, Krugman is a madman, not an economist.  What the hell is he babbling about?  NO government is EVER ‘better off’ if they overspend their budgets!  Never, ever, no way in hell.  Now, the US did do this during WWII.  But note what happened in WWII: we WON!  We won, hands down, totally and completely except for small problem:  the USSR also won, hands down.  Nonetheless, the US was able to dominate world trade and manufacturing due to the simple fact, not one of our factories was bombed in WWII while much of Asia and Europe’s manufacturing base was nearly totally destroyed.


If this wasn’t so, the US would have had immense debts from WWII and would have been crippled by competing with a flood of exports from the other countries that had manufacturing.  Luckily for us, not only were their factories wrecked, most of their shipping was sunk and the US had the biggest shipyards on earth.


We now have the SMALLEST shipyards.  We have, I believe, only 4 shipyards and all of them build military ships at tremendous cost to the taxpayers.  We don’t build supertankers or other major ships.  China, South Korea, Japan and other Asian powers build these ships.  As well as a few European powers such as Norway, for example.


Also, Krugman mentions that our high unemployment will ‘persist for years’.  Good grief.  Guess why?  Free trade is continuing to destroy our jobs.  No change from either party in power, in this regard.


….Here’s one way to look at it: We’re looking at a rise in the debt/G.D.P. ratio of about 40 percentage points. The real interest on that additional debt (you want to subtract off inflation) will probably be around 1 percent of G.D.P., or 5 percent of federal revenue. That doesn’t sound like an overwhelming burden……


ARRGH.  Interest rates have been falling, for the most part, for the last 35 years.  And coincidentally, our public and private debts have also increased greatly due to the cheapness of this borrowing.  Now, it is sitting at zero and has only one direction it can go: UP.  Krugman is an idiot.  He doesn’t mention to reader that much of our debt is short term.  It has to turn over.  Once this process of higher and higher rates is locked in, we will see our vast sea of red ink suddenly surge like a tsunami after an underwater earthquake.


The images of the surge of water that came pouring in to kill a quarter million people in the Great Boxing Day Quake should alarm us.  This is obvious to anticipate and should fill us with naked fear.  We can’t outrun this tsunami of red ink if we are standing in the water already, up to our knees.


….In the early 1990s, Belgium — which is deeply divided along linguistic lines — had a net debt of 118 percent of G.D.P., while Italy — which is, well, Italy — had a net debt of 114 percent of G.D.P. Neither faced a financial crisis.


Look at this fool!  He even dares to mention Italy in his stupid screed!  Well, let’s look at Italy for a minute.  First, we will go back into the past to see Italy when it was trying to be a world power, when it had an army and navy, back over 100 years ago:



May 7, 1892 The Marquis di Rudini, the Prime Minister, to-day tendered to King Humbert the resignations of all the members of the Cabinet, due to the refusal yesterday of the Chamber of Deputies to adopt a vote of confidence in the Government’s financial policy, which included a heavy reduction in the credits to be devoted to military and naval expenditures.

Screen shot 2009-08-29 at 9.48.29 AM


Like Argentina, Italy limps from fiscal disaster to fiscal collapse.  Italy no longer tries even slightly to be a world power.  It is one of the weaker links in the European Union.  There is a bit of joking in Germany concerning the mistake of  allying itself with Italy in WWII.  If Krugman wants us to be Italy, well, we should disband our entire military and let the Germans dictate to us, how much we can overspend on our budgets.  For Germany now controls Italy’s finances via the EU’s rules about how much debt a country can create without permission of the Germans.


Here is a news story from last year, in China, concerning Italy’s finances:


Italy adopts measures to combat financial crisis_English_Xinhua

ROME, Oct. 13 2008 (Xinhua) – Earlier in the day Tremonti confirmed that Italy’s GDP this year will only rise by 0.1 percent and lowered the government’s growth forecast for 2009 from 0.9 percent to 0.5 percent. Despite the slowdown in growth, the minister said Italy would keep its deficit at 2.55 percent of GDP.


Our deficit is much, much bigger in bulk as well as our GDP than Italy’s debts.  So why does Krugman smugly compare us to Italy which is much, much, MUCH better off than us, in this regard?  Below is the Congressional Budget Office’s financial report made last spring.  The data is actually worse than when this report was issued:


cbo budget deficit


Note that only once since 1970, has the US government spending risen above 0% of GDP.  The Democrats hope to get it back to ‘normal’ by 2015, normal being constant overruns.  The below graph is very horrible and should cause all the ‘let’s spend our way to prosperity’ people to pause:


Screen shot 2009-08-29 at 10.01.20 AM


According to this report, discretionary spending will decline by $88 billion based on ‘reduced war-related spending—and then (will) grow slightly thereafter….’  It is presently going to be 9.5% of our GDP next year but will be ‘only’ 6.9% by 2019.  HAHAHA. This happens to coincide with the Chinese 50 Year Plan which will see China replace the US as the principal agent in international finance and trade by 2020.  The US still thinks it can allow military imperial adventurism to be nearly 7% of our GDP at the same time frame when China plans to eliminate our ability to raise war money via selling our debt to…China!!!


Evidently, we already are online to spend over $141 billion fighting the poorest people on earth and occupying Iraq on behalf of the Shiite allies of Iran.  Next year, we plan to waste another $130 billion in this ridiculous enterprise!  Even as the majority of the US public is now against these wars, the spending has increased, not decreased.  As we tie ourselves in knots debating about healthcare costs, there is little debate in DC itself over war spending or even war plans.  The doubling and redoubling of US troops in Afghanistan tracks alongside the relentless rise in US deaths there.  And far from being on the run, al Qaeda is striking at the heart of all our ‘allies’.


Totally separate from the Taliban who are nationalist freedom (for the males) fighter, al Qaeda’s battle for control of Mecca is still on track.  Their goal is to also spread economic chaos and thus, undermine all of the major empires including China as well as the obvious target, the US.  The fools who are the ruling elites of this planet (especially the Zionist faction) think that they can manipulate and use Osama bin Laden’s dark system for their own ends.  So they are gleeful when he engineers or inspires attacks.  This justifies expanding wars with Muslims and justifies military spending.  And keeps the international imperial NATO empire expanding.


This expansion is a bubble.  Already, virtually all of the EU and Asian allies in the US imperial adventures in Muslim lands are withdrawing both troop support and funding.  The US is basically doing this alone.  Muslim allies who are despotic governments are gladly sucking down vast sums of US money (which is all debt owed to Asia) so they can protect their own thrones from being overthrown.  But the US public gains absolutely nothing from all of this.  All we are getting is this vast mountain of IOUs and a sea of US fiat IOU dollars floating around the planet, waiting for the signal to come flowing back home again.  That is, over 70% of our paper money is now overseas.  And won’t stay there forever.


When it comes pouring back in, we will have Zimbabwean levels of inflation.  And this is yet another reason why Krugman’s analysis is stupid.  He can’t see the obvious ramifications of the credit trap we are in.  This is probably why the NYT pays and promotes his writing.  It is stupid.  What else can one say?  Stupid is stupid.

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Filed under .money matters, Free Trade, war and peace

44 responses to “Krugman Wants US To Imitate Italy’s Finances

  1. mike

    pardon the long running complaint but in yesterdays mail I get a notice that my health insurance bill is going up again 15 percent…note that price stability is one of the Feds jobs listed in its charter and that I do not see the 15 percent interest rates required to get price stability and dollar security of purchase power …only perhaps housing, tho not counted but for rents in calculations by manipulation gone down…but for derivitives gone worthless and always worthless?

  2. PLovering

    Inflation rate numbers to shock even Libra.

    Last chart is the winner.

  3. CK

    Nobody likes falling prices. When prices fall the common slob’s position in life is improved. He gets out of debt quicker. He is able to save more of his income each pay period. Nobody in government likes falling prices.

  4. JT

    Stagflation seems to be the thing everyone expects now.
    Inflation will come back roaring once the economy starts to recover.
    I think US government has done a pretty good job and everyone else takes the loss for this money printing. And you´ll get free healthcare in order to take care of the unemployed and more social benefits also.
    The thing they`re not telling is jobs aren´t coming back. 10 % is the new norm for unemployment.
    That´s the plan I hope it works out, deficits seem pretty bad.

    No jobs, rising interest rates, inflation and rising taxes.
    That´s the future.
    Dollar will be saved though the moment interest rates go up, don´t worry about that.
    And You have to have some money for the unemployed. Most of them will never work again.
    And I think that´s a job well done if this is the worst that happens.

  5. PLovering


    Poor Bernanke.

    Nothing works for the Lizard Wizard.

    Ben cannot even give money away and find inflation.

  6. PLovering

    For latest scoop on Lizard Flu.

  7. RobG

    Try as often as I could, ZIRP never worked on the game:
    Fed Chairman Game

  8. PLovering

    Latest scoop on TRICARE:

    To All, this is for real. The heavy assault has begun on Veterans’/Retirees’ benefits to pay for other programs. The word on the street is that these indeed are a high priority of the Obama administration. The one most of interest to Retired Military is in Article 189. If approved by Congress the first assault wave would hit the beaches in 2011 and would hit hard. It would initiate cost sharing to require retirees to pay the first $525 of medical cost and 50% of the next $4,725 for a first year cost of $2,888 per person. It would be indexed to increase with inflation. A reason given for this action (for PR effect) is “overuse” by Retirees.

    This will be a major increase for anyone using TRICARE related services, not just TRICARE for Life (TFL).

  9. All the present economic problems in U.S. would get solved and millions of new permanent and good jobs would be created if the government and private investors may buy up big land areas with good infrastructures. Foreign manufacturers would be lured to set up manufacturing plants and ship building yards on American soil. Consumer spending will again rise to give the country a near U turn. USA will be a economic giant once more. For a glimpse into the world of future please visit the website

  10. w.c.

    Maher-shalal-hash-baz,”Make haste to plunder! Hurry to the spoil!” …

    a new earth

    more like 70 years ,, but first the great mind shift,,

  11. if

    ECB catching up?
    ECB warns of credit derivatives danger


    ELAINE: Thank you, If, for the link! It is very helpful. Will be writing about it tonight.

  12. Paul S

    I wonder when our honorable members of CONgress will “access” the nations pension funds, or people’s 401k plans? The government, and the banksters who own them, will be the last ones to tap out. Many know this, but the real question is how to stop all this insanity? Nope, I don’t have the answer.

  13. PLovering

    So here are the facts, as documented by the CDC and the FDA Conferences last weekend:

    As many as 30,000 Americans will be harmed by the novel H1N1 vaccine.

    The vaccine may be effective in less than 3 out of 10 people vaccinated.

    Vaccine adjuvant “Squalene” was the cause of Gulf War Syndrome in 25% of 697,000 U.S. soldiers serving in-country and overseas.

    There is exponentially more “Squalene” in the CDC H1N1 Flu vaccine than in the vaccine given the troops.

  14. emsnews

    Goofy site you linked to, Plovering. I guess you believe anyone you meet on street corners.

  15. DeVaul

    Here is an interesting article over at the Silver Bear. I kind of believe it myself, at least the part about people in high places profiting off of huge stockpiles of gold.

    It reminds me of when a recent Supreme Court nominee had to reveal his financial condition, he owned 50,000 in gold eagles. That was several years ago and I had never heard of something like that.

    Anyway, here is the link:

    The most amazing factoid in the article is the giant red dot over DC, where new jobs are apparently plentiful. Great.

  16. me again

    Study by the Centre for European Policy Studies

    Page 73 for main proposals.

    Basically, the US needs to stop importing more than it is exporting

  17. nah

    As well as US business interests. Also, all parties support tax cuts. In the teeth of record spending deficits for the last 10 years, tax cutting is still very popular.
    If things look so damn complicated that they must be rigged… they are… taxes are plenty high we are just continually re-leveraged into someone back pocket without so much as a peep… o… and the poor only pay 1/8 of the richz tax
    if i had a pipe to smoke it with

  18. The problem is that the field of economics is mired in primitive, 18th century theories about free trade, theories that failed to evolve, thanks to economists’ stubborn refusal to consider the ramifications of population growth. (The whole Malthus thing. How can economics evolve when any economist who ponders population growth is instantly slapped down as a “Malthusian?”)

    If economists, permanently frozen in the “hear no evil” monkey position, would lower their hands and again consider all of the implications of population growth, they may come to see the relationship between population density and per capita consumption, and what happens when lower density nations like the U.S. attempt to trade freely with those much more densely populated – nations like Japan, Germany, Korea, China and others.

    Politicians are not economists, and so look to economists for guidance on policy. When economists almost universally cling tenaciously to old, half-baked theories, it’s no wonder that we get the kind of failed economic policy that’s dragging this nation into financial ruin.

    Pete Murphy
    Author, “Five Short Blasts”

  19. CK

    Scientists have theories.
    Economists have prayers and incantations and the reliance on long dead names.
    Theories are testable, refuteable, expandable.
    Prayers … not so much.
    Incantations …

  20. Pingback: Will Japan Escape The ZIRP Depression? « Culture of Life News

  21. ralph

    “KRUGMAN IS INSANE! I can’t fathom how he can be this crazy and still not be hospitalized.”

    This is the best thing Ive ever heard you say. This man needs to be hospitalized. He is Keynes on steroids.


    ELAINE: 🙂

  22. w.c.

    pete murphy

    economists for guidance on policy

    these bozos are looking at the wrong economists

    have you studied reismans capitalism ,, or do you just blow smoke lol

  23. w.c.


    of course any person who does and says the the same thing over and over to get the same failed results ..

    is certifiably insane

    say keynesian… and murphy would not know the difference between crossing the river on the back of an allegator or thinking it was a log,

  24. emsnews

    The difference, WC, between a ‘log’ and a ‘god’ is one letter. 🙂 Ditto, ‘dog’ and ‘bog’. I sound like Dr. Seus: ‘ The dog on the log in the bog thought he was god. But it was the fog, not the log that made the dog look like god.’

  25. w.c., you really don’t have a clue what I’m talking about, do you?

  26. pete

    Politicians are not economists, and so look to economists for guidance on policy. When economists almost universally cling tenaciously to old, half-baked theories, it’s no wonder that we get the kind of failed economic policy that’s dragging this nation into financial ruin.

    as long AS THE POLITICIANS LOOK TO THE KEYNESIAN model of economcs we will get the failed policys over and over .

    do you really know what you just said ..

    what is dragging the nation into financial ruin is the fed , consumption, debt,, and a policy of favored companys , failed systems..

    i read exactully what you said the problem is that you have no idea what i rebutted with..

    and have only the desire to frame your own conclusion based on faulty economics. and the harvard school .. with its paid and bought for party line

    ron Paul an austrian training took the fed on. something the entire corp of failed keynesian folks jumped over.

    sure ron paul is just on person ,, and some can say he is weak on some issues..

    but first thing first

    destroy the roots of the problem stop hacking at the leaves ,,

    open for questions or rebuttal,,

    lets really see if you know what your talking about ,, lol

  27. Ah, I should have guessed that you were a fan of Ron Paul and the austrian school of economics and, therefore, the primitive, free trade theories of late 18th and early 19th century economists Adam Smith and David Ricardo. These half-baked free trade theories which, since our last trade surplus in 1975 have racked up a cumulative trade deficit of $9.4 trillion, are even more to blame for our economic mess than Keynesian economics.

  28. CK

    Oh my primitive and half baked ( nothing like trying to poison the discourse before the discourse has begun ).

  29. w.c.


    your a total fraud qnd know no-THING about AUSTRIAN ECONOMICS

    USEING THE BLUFF and posture method of debate //

    no ah hah , i used ron paul merely as an example of the fradulent fed reserve,,

    and the very roots of the problem

    the balance of payment and trade deficit of 9 trillions of dollars has nothing to do with austrian economics as a working model..

    every thing to do with the socialist model of the empire mixed with business ,,

    murphy and his brand of hubris

    Mises showed that all of the accusations made against capitalism were either altogether unfounded or should be directed against government intervention

    Socialism, Mises demonstrated, in his greatest original contribution to economic thought, not only abolishes the incentive of profit and loss and the freedom of competition along with private ownership of the means of production, but makes economic calculation, economic coordination, and economic planning impossible, and therefore results in chaos.

    For socialism means the abolition of the price system and the intellectual division of labor; it means the concentration and centralization of all decision-making in the hands of one agency: the Central Planning Board, or the Supreme Dictator.

    murphy either put up or shut up

  30. w.c.

    pete murphy

    your a trained susage maker by trade lol

  31. w.c.

    either debate the the issue , with some sort of coherent basis ..

    and forget the random selectivity of ad homin attack and bluster fog making.

    oh it figures you are one of those lol

  32. w.c.

    another fAUX PAUS of murphy

    oh i could have guessed lol

    i told you in about ten words ,, what was there to quess ..

    of course you have not picked up a copy of reismans work it would cause little hurt on the frontal lobe.

    and rather live in object stupidity on austrian economics

  33. w.c.


    30 years in manufacturing and engineering for a major chemical company. which company .. Union Carbide ..

  34. w.c.


    if you would like to be civil .. lets start over.

    your bio and back ground show you to be a rational person;;

    your introduction was on the savage side of the street.

    i spent 10 years with a major oil company,

    left .. and then spent 30 years developing and working for myself.

    using the free market with savings , risk, built a company ..

    even today i set on board of a workers comp company ,, that was started by my son .. with start up capitaL AND KNOW how developed with the use of workers comp,, in the process of a staff leasing company

    with 80-100 million of annual payroll . from scratch. sold in 1990 retired at 59,

    i follow no one ,, take my own council .. and realize that most are mostly skimming .. the real understanding of the austrian model

  35. emsnews

    Antisocialist states always lose to socialist states unless there is some intervening thing afoot. For example, England used the US as its military/finance/industrial base during WWI and WWII but each time, Germany, the socialist state, nearly wiped out the biggest empire at that time (the United Kingdom).

    The Chinese communists are wiping our asses in world economics, too. The more the US cuts taxes and cuts social services, the stronger China’s communists grow. This dynamic should be obvious to anyone with a brain. But then, seeing obvious stuff is incredibly difficult if people grow up with all sorts of stories that are fake. Like, ‘Socialism is evil’ being one of the dumbest.

  36. w.c.


    The Chinese communists are wiping our asses in world economics, too.

    yes that is a fact ,, and the stupid dirivatives game.. that distorted world trade.

    the usa will learn a lesson when china calls time out ,, they will not validate these fraud coupons ..

    as china flexs its economc muscle,,

  37. w.c.

    ems socialism

    a need to anticipate a possible misunderstanding concerning my thesis that socialism is totalitarianism by its very nature. This concerns the allegedly socialist countries run by social democrats such as Sweden and the other Scandinavian countries which are clearly not totalitarian directorships.

    “In such cases, it is necessary to realize that along with these countries not being totalitarian, they’re also not socialist. Their governing parties may espouse socialism as their philosophy and their ultimate goal, but socialism is not what they have implemented as their economic system. Their actual economic system is that of a hampered market economy, as Mises termed it.

    ” their economic system is essentially similar to our own in that the characteristic driving force of production and economic activity is not government decree but the initiative of private owners motivated by the prospect of private profit.”

  38. emsnews

    They are ‘similar to our own’ because the US has embraced some degree of socialism. We are NOT a ‘capitalist’ society at all.

  39. w.c.

    ems news

    We are NOT a ‘capitalist’ society at all.

    of which= i have been saying for a long time. the USA is not a capitalist economy.

    no more than frogs suckle sheep

  40. emsnews

    So why make the earlier statement?

  41. w.c.


    So why make the earlier statement?


    I HAVE been consistent in saying that the usa is not a true capitalistic system ..

    we have not really seen it in action.. maybe briefly as we cleaned up a mess created by other factors. the thing we have in the usa is a hodge podge of various doppy and controlled actions ,, with government interference , with huge industrial military aspects,

    the fed is a giant lizard creeping into the gizzards of debt, interest rates, and is the root of the varies problems that many try to solve by hacking a few leaves and a branch..

  42. emsnews

    No first world nation is a ‘capitalist’ economy. They are all ‘socialist’ to some degree.

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