Submitted by Thomas Kolbe
For economic illiterates, socialists and social-state engineers, the world consists of one fundamental problem: Where does the credit come from that is supposed to turn the visions of central planners into a new reality? Once that question has been answered and the shaky financing is in place, the work can begin.
Ideally, socialists operate in a zero-interest-rate world in which even the most nonsensical projects, from the nuclear phase-out to the construction of wind turbines in forests, debt-financed arms deliveries to the Donbas, or even billion-dollar subsidies for the NGO industry, can be financed.
It is magical: The costs of this artificial credit, this nonsensical government demand, which ultimately has to be paid for through inflation and higher taxes, are concealed behind massive state propaganda and a delayed fiscal response. Cause and effect of government demand are thus separated from one another. Citizens find it difficult to understand why their economy is no longer growing while the state apparatus, meanwhile, is assuming Kafkaesque features.
In an interview with Les Nouveaux Médias, French socialist Jean-Luc Mélenchon revealed his political secret for overcoming the debt crisis. His recipe is socialist, simple and one-dimensional. The French government should simply continue piling up debt, without any controls whatsoever. The European Central Bank could then serve as a kind of bond landfill and purchase surplus securities from the market once saturation has been reached.
This is followed by the unsubtle and predictable trick: The bonds thus neutralized could simply be burned on the balance sheet. They would virtually disappear from the
