The 2008-2013 Plan
Hjalmar Schacht
Stalin’s infamous five-year plans
started with a “trial version” in late 1928. By “trial version” this
meant his plans already included show trials of political enemies with
frequent death sentences. Designed and executed for Hitler, the German
banker Hjalmar Schacht’s five-year plan of 1934-1938 directly applied
Keynesian “remedies” for the economy and public finances. Schacht’s plan
was called a “groundbreaking fiscal stimulus program”, creating work by
rebuilding the nation’s worn infrastructures, jettisoning the gold
standard, imposing capital controls, and increasing State debt, after
“diluting” the State’s previous debt.
Keynes, whose ‘General Theory’ did not
appear until 1936 was upstaged by both Stalin and Hitler. Keynes himself
claimed to “detest Hitler as a person” but admired the Schacht plan. In
both cases, they applied mega-planning by a Leviathan State, exactly as
Keynes said was necessary. Both were disasters – sooner or later – in
the Stalin case from his initial “trial version”, which even surprised
Stalin by the orgy of violence it triggered.
Keynes said many times that a government
big enough and powerful enough to control or manipulate aggregate
demand is obligatory. The State must be all-powerful. He meant the
central bankers.
The key basic component of setting the
future by decree, the idea of State planning is as we might expect
heavily present in the actions and foibles of the “liberal market
capitalist” (end of quote) central banker clique. Headed by the US Fed,
the ECB, BOJ, BOE, China’s central bank, and others, these Defenders of
Capitalism stoutly maintain they are totally opposed to economic
planning and welcome the anarchy of the capitalist consumer society –
driven only by egoism and greed. In fact they are five-year plans to
reward the central banksters and encourage political tyranny.
For 2008-2013 we have an easily-measured
and analyzed, full 5-year plan of the central banker clique. Taking
only the US, its probable total of public + private debt in April 2014
now stands at about $160 trillion. China’s debt total has grown at least
10-fold since year 2000 and is now out of control.
Can this ever be repaid? No way.
Getting People Back to Work
Lenin
can be identified as the real “father of five-year planning”. His
self-styled role as the champion of the people and above all his fiery
oratory enabled him to win full Soviet Peoples Praesidium support on its
first lecture, February 21st 1920, for his Goelro plan targeting the
total electrification of the not-yet-founded USSR. The symbol was “The
Lamp of Ilyich”, a lightbulb, using Lenin’s second name – Vladimir
Ilyich Lenin.
Stalin founded the USSR in 1922. Lenin’s
Goelro “electric power infrastructure” plan was dumped in 1931. From
later that year it was officially replaced and superceded by Stalin’s
infamous plans.
The irrelevance of the always-stated
goal of “full employment” in Keynesian State economic planning, for the
central bankers, is ultra clear. Their only goal is the repudiation of
previous State debt, by their selected Tyrant, and the creation of new
and larger State debt. The process can take a variable amount of time,
before mayhem ensues – but it always comes.
Ukraine is an excellent, bad-good
example of 5-year plans. Until the “Maidan Flash Mob Moment” the
five-year plans were alive, if not well in Ukraine. Placed under various
disguises of newspeak terminology, including neoliberal newspeak, they
stacked up an orgy of violence for a little while later, further down
the You Tube.
Stalin hastened and deepened his plans
for Soviet 5-year plans, in concertation with Lenin before probably
poisoning him (historians and journalists still discuss the subject),
following capitalist Germany’s hyperinflation nightmare of 1922-1923.
While it suited him, which was not for long, Stalin defended “sound
money”.
Stalin
was also soon able to peddle his plans as a National Security surrogate
in a young USSR menaced by hostile scheming capitalists. Having an
uber-powerful and deadly secret police, and the cult of semi-random
violence using “disappearance in the night”, helped him a lot. The
world’s central bankers who heavily invested both in Stalin, and in
Hitler, helped even more. Major private bankers were of course also on
board from the start. One famous example is the grandfather of George W.
Bush who before, during and after the 1941 termination of the
Hitler-Stalin pact, and declaration of war between Nazi Germany and the
USSR, and between the US and Germany, continued to invest in both!
In Germany, the hyperinflation
“interlude” among other things reignited the Spartakists and their
attempt to create an ideal socialist society. This did not “get the
people back to work”. The 1919-20 Spartakist Revolt led by Rosa
Luxemburg was destroyed by street fighting – nothing like the uprisings
of Kiev’s Maidan Square or Cairo’s Tahrir Square. Destroying the
Spartakist Revolt, by the Kaiser German army using heavy artillery,
probably cost 250 000 German lives through 1919-24.
The Weimar liberal-bourgeois Republic
starting in 1920 and ending in 1932 ensued from this. It was so corrupt
and ineffective – and quickly shunned by the banksters – that it was a
sitting duck for Adolf Hitler to overthrow by the ballot box and install
Nazism, made popular by “Keynesian economic miracle”.
Don’t Count The Collateral Debt
Neither Stalin nor Hitler counted the collateral dead. Being
mentally-unhinged Tyrants such things were unimportant to them. Central
banksters idem.
Stalin had no interest at all in the
body count needed to ram through his State planning fantasy. Lenin and
the early revolutionary communists had already shredded and repudiated
all Russian debt from the previous Czars. Stalin’s five-year plans had
no need for logic, rhyme or reason. There was no point making even the
mildest criticism of them – the firing squad sufficed. Apart from show
trial victims killed for Defective Ideology – measured in the thousands –
the collateral economic war body count was measured in millions.
In fact, in Stalin’s case, the favored
method of eliminating defective ideology was mass starvation. It was
simple but very effective.
The major point is that debts run up by
both of these “grand economic experiments” of the time, were however
vastly smaller than debts run up since 2008, by exactly the same
bankster clique, but the Debt Forgiveness process will be the same.
Absorbing and shuffling the debt bubbles created by born-to-fail
economic, financial and monetary planning needs war, and can only lead
to war, sooner or later.
After that, “the counters are set back
to zero”. Taking one quite recent example, during the run-up to the 2003
Iraq war government-friendly Western media was stuffed with learned,
elite-vetted and approved economists sincerely explaining that massive
bombing of Iraq would enable a huge postwar reconstruction boom, using
Iraq’s oil as collateral for extreme new borrowing by the New Approved
Iraq. What could be nicer? We can call this War Keynesianism.
At least as important, this is a
Universal Paradigm so why should it be different for other countries?
Certainly including the West’s “liberal market capitalist” (end of
quote) economies and societies.
The “New Ukraine Plan”, as far as we can
surmise at this time, is a classic example featuring the same basic
ingredients. First the country is destroyed by civil war or
international war, and its old debts – mostly to Russia – disappear.
Ukraine’s collateral may be somewhat thin on the ground (if not
underground – it has huge domestic gas and coal resources, for example),
but this is only a trifling detail for the bankster clique, who will
very likely first predate all private savings in whatever Rump State
emerges, to huge applause from the Western glove puppet media. As we
know, at this time, the related and classic trick of the banksters is
under way – they have ordered FX brokers and traders to completely shred
the national currency. Using economic terror, Stalin-style, the
peoples’ savings can then be swallowed whole by the banksters with only a
few blowback street demonstrations, needing “firm action by the
authorities”. What could be nicer?
Lenin’s Flat Cap Economics
The bankster program of “planned economic recovery”, as we know, only
concerns keeping a tiny wealthy elite high up the greasy pole, next to
the political tyrants who execute the bankster plan. Way down on the
ground, in the so-called “real economy”, times can only be dire. Food
shortage is always a classic lever of economic terror, but oil and
electricity shortage are two new elite favorites.
By turning food and energy into rare
commodities this makes them “collateralizable”, in other words you can
bank on that – if you are a bankster and have the political glove
puppets well under control. Encouraging these puppets to imagine they
are Tyrants, or to become Tyrants, also helps. Being mad, they are
easier to manipulate. The money printing presses can then whirr yet more
frenetically, new debts can be racked up to replace the ones that were
dishonored, and using the chaos of war – any kind, civil or
international – the game can play along for quite some while. But of
course not forever.
Lenin’s early revolutionary communists,
at least in print and in speeches, wanted to avoid this. They had the
theory of Marx and Engels to orate with, but they were however quickly
drawn, like moths to a lamp in the night or flies drawn to
you-know-what, by the exciting idea, for them, of planning everything in
a Super State. This put them straight into the banksters’ trap. Both
Marx and Engels had heavily described and analyzed the workings of
Capital, and why it runs on an ever-declining, ever shrinking time fuze
inevitably resulting in periodic or cyclic Crises of Capitalism.
For Stalin, the capitalist crises of
German hyperinflation and the 1929 Wall Street crash were all he needed
to pursue his megalomaniac-paranoid fantasies. Hitler, with his
uber-classic “Keynesian remedies”, used exactly the same rationales and
conclusions. Being mentally ill, neither of them could avoid the
banksters’ trap, which is always set and always primed for sucking
suckers into it.
Rothschild: Things never chage
For the banksters and the Tyrants, small
is not beautiful – and nor is peace. No bankster wants to live with
small-sized, truly democratic, humanist governments or nations, because
their collateral is usually small, the people are not cowed and
terrorized, and the ability of these small-is-beautiful economies and
societies to cook up wars, is low.
Throwing away the baby of Marxism with
the dirty bath water of Stalin is however a mistake. The Marxist
analysis can help, to be sure with corrections for what has happened
since the late 19th century, but today however, you need very few
corrections or updates. The banksters have cooked up a Crisis of
Capitalism straight out of the 19th century, so unfortunately we will
have “epic events”, probably rather somber.
Written by Andrew McKillop and published by
Market Oracle, Apr 27, 2014.
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