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Valuing Truth
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Truth is the enemy of the state, and always has been. But today the Western populations live in a world of total lies. Try to think of anything that the government has told you the truth about. “Saddam Hussein’s weapons of mass destruction,” “Assad’s use of chemical weapons,” “Russian invasion of Ukraine” are not the only lies. Everything the government says is a lie. The unemployment rate. The GDP growth rate. The inflation rate. Payroll jobs. 9/11. Tonkin Gulf. Boston Marathon Bombing. Paris attacks.

Of consider the taxation of Social Security benefits. Social Security existed for 49 years, from 1935 to 1984 without the benefits being taxed. Wall Street, David Stockman, Alan Greenspan, and the Republican establishment are responsible for breaking the promise to the American people and subjecting Social Security benefits to income taxation. When the Supply-Side economic policy led to the collapse of inflation far quicker than Stockman’s budget prediction had taken into account, federal budget deficits appeared that Stockman and Wall Street blamed on Reagan’s economic program. In those days the only economics the Republican establishment knew was fear of budget deficits. The fools actually thought that a budget deficit caused by the unanticipated collapse in inflation was going to cause inflation.

To please Wall Street, Stockman and Greenspan went to work to turn Social Security into a cash cow for the government. Two things happened. Future increases in the payroll tax rate that had been legislated during the Carter administration were accelerated and brought into effect sooner than needed in order to collect a surplus of Social Security tax revenues with which to fund other government spending. The other “reform” was to subject Social Security benefits to income taxation. In 1984 50% of Social Security benefits were subject to income taxation for retirees with incomes above $25,000. In 1993 the Clinton regime made 85% of Social Security benefits subject to income taxation.

Taxing Social Security benefits is a way of cutting the benefits, long a Republican goal. I remember Democratic Senator Russell Long, the Chairman of the Senate Finance Committee, telling me that to tax benefits that working people had paid for over the course of their working life via the payroll tax was a tax on a tax and an unconscionable violation of the compact that the government had made with the American people. My office in the Treasury had prepared a different solution to the hyped “Social Security revenue shortfall.” We showed that the best solution was to adjust the formula that governed the growth of Social Security benefits, not to accelerate the payroll tax increases and subject benefits to taxation. But Wall Street and the banks wanted revenues to reduce the budget deficit, which they claimed would reduce interest rates, thus allowing the issuance of more loans with which to financialize the economy.

Now Wall Street’s plan is to get rid of Social Security altogether by privatizing it and turning it into another financial scam.

I often document the economic crimes committed against the American people, indeed the peoples of the entire world, and could go on about this forever. But let’s shift gears and observe the murder of justice. Who gets punished, government officials who spy without warrants, torture, commit war crimes, and financial executives gulty of fraud, or whistleblowers who reveal their crimes? You know the answer. The justice system is focused on ruining heros and the innocent.

Recently the US Appeals Court for DC blocked newly issued FCC regulations that prevent phone companies from charging prisoners $14 per minute for conversations with family members. In other words, a 5 minute conversation with a spouse or child currently costs $70, as if prisoners are among the One Percent. There are both humane and cost reasons for the FCC regulations. The high cost of communication with families breaks down family ties and results in more recidivism. The federal appeals court took the side of profits and sacrificed the public’s interest.

Where is the justice in what just happened to the most prominent sportswoman in the world, five-time grand slam tennis champion Maria Sharapova. For health reasons she has been given mildronate by her doctor for ten years. Mildronate is used to treat diabetes, low magnesium, and poor blood flow. On January 1 of this year meldonium, another name for mildronate, was added to the prohibited drug list. Not being a pharmacist, Sharapova did not know the newly added drug was the same as her medical prescription, and a few days after her medical prescription of a decade was declared a prohibited drug, she failed the drug test for the January Australian Open.

I have spoken to drug testers and have been told that it takes more than a few days between the January 1 announcement of meldonium’s prohibition and the January Australian Open for drugs to clear the body. There was nothing Sharapova could have done even if she had known. So what was the response of the authorities? Right, the International Tennis Federation has suspended her, and Nike, Tag Heuer, and Porsche have suspended their contracts with her.

Isn’t this amazing. We have war criminals, torturers, and former bank executives guilty of massive frauds running Western economic and foreign policy free of any accountability for their offenses, but a tennis star’s prescription medicine runs afoul of a newly introduced drug policy, and she is suspended! Is this because she is Russian? Is this part of demonizing Russia and presenting the country in a bad light? Or is it just the senseless mindlessness of the Western world in which only the innocent are punished?

We have to ask ourselves how it can be that the world’s worse criminals—people responsible for the death and displacement of millions of peoples—occupy high office while a tennis star is disciplined because her medical prescription, legal for a decade, suddenly runs afoul of a new probibited drug regulation. What kind of a world does the West run?

We all know the answer. Western governments, a collection of criminals, run the world for the 
One Percent.

(Republished from by permission of author or representative)
• Category: Economics • Tags: Social Security 
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  1. “Isn’t this amazing. We have war criminals, torturers, and former bank executives guilty of massive frauds running Western economic and foreign policy free of any accountability for their offenses, but a tennis star’s prescription medicine runs afoul of a newly introduced drug policy, and she is suspended! . . .”

    Remember those torture-advocating shysters John Yoo and Jay Bybee? The former is a law professor (?!), and the latter is a federal appellate judge. Torture advocate John Brennan is CIA Director. CIA and military torturers walked. The degenerate hag Madeleine Albright is on the speaking circuit.

    Fine examples to the rest of the world. . . .

    • Agree: Realist, Rurik
  2. One of the ways is which inflation is being understated is by substitution. If I give you X amount of money for quality goods and then you cheapen the goods and still take the same X amount of money for the cheaper goods, then the same amount of money is buying less goods, not fewer, just cheaper.

    I’m not sure what to call this type of inflation. Mercantilism? It’s the other side of the equation. If the money supply is being inflated and the currency is being debased gradually, people don’t notice right away. Likewise if the “goods supply” is being debased gradually nationwide people similarly don’t notice. At least not right away.

    The goods down at the local mart have gotten so bad, I often have to repair them once I get them home. Nowadays, I buy from Amazon just so I can get a read on the quality of goods being sold. We’re talking things as simple as can opener or a broom or a brush. Trash that falls apart after a few weeks use (in one case less than five minutes use).

    I wish there was a name for this type of inflation. Anybody know?

    • Replies: @MarkinLA
  3. Boris says:

    Wait, the guy who’s a Sandy Hook denier is interested in “valuing truth”? That’s weird.

    As for meldonium, it’s clearly being abused by Russian athletes, and clearly because it’s a performance enhancer. I’d love to see some bank executives pay for their crimes, but that doesn’t mean that people should be allowed to cheat at tennis.

    • Replies: @Paul Craig Roberts
  4. MarkinLA says:

    They also fudge the numbers based on “improvements” in a product. If a computer still costs 2000 dollars but is 6 times faster they pretend it has gone down in price. The changes were put in under Clinton as a way to eat away the COLA increases in Social Security that were put in in the late 70s by pushed for by Claude Pepper.

  5. I agree, but what I am talking about is a “type of inflation.” Economists have different types of inflation coming from different sources. Like Wage Push inflation, Cost Push Inflation, Demand Pull inflation, Currency Debasement inflation etc.

    I’m going with Mercantile Inflation or MercInflation. Inflation caused by the debasement of merchandise. Since China is acting as a point source for the origination of large amounts of merchandise sold in the US, it is able to manipulate the quality of those goods as well as its currency. Walmart and other big box stores are functioning as Company Stores (read Corporate Stores) and US benefits checks acting as Corporate Script.

    Market competition is supposed to nullify this kind of activity, but when you become dependent on another country for your most of your manufacturing, you pretty much have to accept whatever quality they decide to give you or change the rules of the game.

    • Replies: @MarkinLA
  6. MarkinLA says:

    Well when it comes to stuff made in China they are pretty much what you would call contract manufacturers like the way Sears used to contract with GE, Whirlpool, or who ever else was willing to make a product to their specifications for their Kenmore brand. You can get any level of quality you are willing to pay for.

    Milwaukee Tools was acquired by a Chinese company. These tools have a much, much better warranty than Harbor Freight for the same (in function) product. If you want a 20 dollar nylon geared Harbor Frieght or a 130 dollar metal geared Milwaukee they probably all came from the same factory.

  7. @Boris

    Either Boris cannot read or he is a troll. I presented questions about Sandy Hook, questions raised by clearly photoshopped photos, questions raised by hundreds of experts who have examined the photos. I asked why all the hard evidence has been denied the public, which it
    clearly has, and photoshopped pictures used as a substitute. I stated that I did not know whether Sandy Hook was real or a hoax and said that I saw this as a failure of the authorities and the media to provide a convincing investigation, as seems to becoming the norm.

    Meldonium’s inventor says that there is no evidence that the medicine is performance-enhancing.
    It is a fact that the drug is used to treat certain heart problems, magnesium deficiency, and diabetes. If the drug is a known performance-enhancer, why has the drug been in use for 30 years, primarily by non-athletes, and only declared a performance-enhancer on January 1, 2016?
    Paul Craig Roberts

    • Replies: @WorkingClass
  8. @Marcus

    Of course it is bunk. The Daily Mail is the equivalent of the US supermarket checkout counter where the National Inquirer tells us that a flying saucer landed at Disneyland last night.
    Does anyone really believe that a tennis star would risk her $30 million annual income by taking a proscribed drug? The 30-year old medicine was ruled prohibited on January 1, 2016, only a few days before the Australian Open. There was no time allowed between the ruling and the drug test for traces to clear the human body.

  9. @Paul Craig Roberts

    Thank you Mr. Roberts for coming to the com boxes in your own defense. You are frequently slandered here by people who appear to be extremely ignorant.

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