Hi there. Witchdoctor wanted to tell you that he was and is Wrong. Always wrong.Wrong while he was a young hippie while others were waving flags to dictators, Do you know who was Tito? or when others were buggering others, or hijacking concepts minds people systems, knowledge…. Wrong when he was studying agriculture and his excited professor was explaining how to tie fruit trees in a super organism with many roots, inject hormones, put a net under this endless rows of “trees” and hop. At a given day the fruits will fall from the tree and no need to pay the pickers.
Who cares what you eat.
Or how to mix and blend all pesticides and herbicides an spray and spray and spray…. At this time (early 70ies) many of this contact or systemic poisons ( developed as biological warfare. For ex.used In Vietnam, but diluted for agricultural use) were not forbidden, as are a few of the deadliest today…
See, that is the wrong timing for WD mind development, but who gives a shit.
While listening to this Mengele adepts of early bio eugenetics, Witchdoctor was thinking, can we make it bio organic, without this Plant Josef Mengele excited approach of progress?
He was wrong, yes.
Or when he was going to Uni for fun, studying for his own curiosity and not for a tenure (incredible, it is not? Deadly wrong, too.(sociology) and philosophy, turning his eyes away from the pounding Marxism which was the State religion he was living in, and studying instead ,with a looney professor who was not a pure marxist , the philosophy of science, epistemology and etc, being logically turned on this by the contrast with this mindless marxist planning and rule of the state avantgarde Oligarchy, in his youth and even today early master,Paul Feyerabend.
He even dared to prove in his youth essays that the Marxist voluntaristic approach based on a fictional unity of the hegelian to materialist twist working class concepts and the avantgarde wisdom is pure bollocks.
No wonder that after all this, he was unable to make a proper career. There were no real jobs for him, strangely. He was , including his family tree of which at the time he had a blurred notion, but the party – the communist one- was more aware than himself of how wrong was he. He was wrong and the proper jobs in his fields, were unavailable to him.
He was also dead wrong when he, leaving this silent majority and its avantgarde, started making and selling strange things, out of the clay and fire and a lot of chemistry he learned in time. Freelance on tiny, not controlled free market by the marxist thugs. But he was wrong.
They were there, controlling the upper echelons of the trade. With the lackeys. He managed, he was in a sort of personal semiliberty which he expanded day by day, pushing the shit away.
But he was wrong.
He was wrong from the first day when he saw the Light, whatever it means.
He was wrong even after, when he learned how to manage his property, on the market. Yes. Wrong. Living too many parallel trades, occupations and interests, studying a lot but for fun and necessity he was wrong, AS IS WRONG THIS BLOG AND HIS ESSAYS.
Witchdoctor is not only wrong, he must be stupid too. Average stupid or deep stupid or just plain wrong stupid. Definitely not misinformed or lacking some wrong logic, this is a slander from the games peoppple play.The day by day proves it. He was stupid enough to swim and dive the seas and see the reef and fish extinction. He was. As usual, wrong what this life is about from the first moment he saw the Light.. Unfortunately, he was wrong about what Games Peoppple Play. That is his best wronginess. He discarded, with high probability, that they are in good faith. It is the obvious lessons he had to learn, after all he experienced. Certainly with exceptions, but…
On a macro level, all this is mirror and smoke.
He was wrong to see his plants suffer. He was wrong about QM, and all other cargo cults…
And after this prenuke bomb confession before being blinded by the light, he still sees things in a wrong way. Like the Money Bank creation.
THEY SAY MONEY IS DESTROYED in the process of repayment of the loan.
The Steve Keen tweet and his Patreon essay . states and “proves” that the lending/borrowing process out of thin air by a keyboard keystrokes, at the end DESTROYS THE MONEY THUS CREATED. Steve Keen, a MMT guy and a fine man , paraphrasing with Shakespeare or Marlon Brando – Mark Anthony greatest performance monologue version, yes, WD is wrong .
Over and over from all sorts of so called economics they all try to rebuke a few of us and so they claim that money , when a borrower returns the loan, is destroyed in the process of lending by the bank.. On top of that, Steve Keen and others MMT people, alas for us few sympathetic with them, even assert that anyone who claims the opposite, does not understands the double bookeeping.
Witchdoctor will republish the links he wrote on the subject and also the links of more important people he knows , claiming the opposite.
Just for fun for being wrong, lets repeat and add some simple thought experiments which show the absurdity of this claims.
Loans create deposits-Bill Mitchell. This is for WD right but it is very partial and not the whole double bookkeeping .If we want to consider the double bookkeeping, ON this subject later, texts in Italian and if Anglosaxons can not learn or translate the Italian Language, the place where in 13th century the doublebookkeeping was invented and forged yes forged… from the start.Oops it is a wrong claim but nevertheless.
I
1.thought experiment ad absurdum: It is ad absurdum since the claim of how banks destroy the money is an argument ad absurdum. It is against the cargo neoliberal cult principles, to destroy something you earn, or WD is wrong again?
2.So, the bank lends money and the money goes straight to the borrower created deposit (On this forge later). The repayment of the loan destroys the money. Ok, lets take it there, ad absurdum: The obvious conclusion for Witchdoctor and he is wrong, is that, if so, the money should not be, need not to be repaid back as it is bound to be destroyed anyway! Why should a person pay back the loan which will be destroyed in the bank haha “doublebookkeepingbooks”?
3.Nobody gains NOTHING in this scam, except some meagre fees and interest on behalf of the bank, and that must be some neoliberal ethics, or not?.
4.The bank in fact, if this destruction exists,can write off and destroy the loan regardless. Only the fees, taxes and interest on the loan are safe,bank keeps them on the books, that seems to be in this Steve Keen concept the only profit bank has.
5.What prevents a bank to do so, to destroy the customer deposit account anyway, paid back or not? Definitely there is no obligation to not do it, there is only one reason left as the money will be destroyed anyway. Except, hehe,ETHICS AND MORALS.
6. HA? WHAT? Are we bloody talking ethics and morals in 21st century collapse ? Somebody is barking mad, the ethics and morals as some law or whatever, this ethics and morals are reserved for being posh and noble ( as a whole humankind is) for philosophers or a few religious people for real- like Immanuel Kant and, yes, Witchdoctor is dead wrong! In the Capitalist neoliberal technofeudal servitude somebody want to explain the system with some higher ethical standards, nukes included? Banks burn the money, including the lenders repaid sum, for ethical reasons for balancing the two fake parts ( See Richard Werner text below) of a much more complicated double bookkeeping, which should be at last in 4 parts/steps? Bah. Banks Burning money from ethical reasons is a late neoliberal capitalist specialty, and WD is wrong.
7. Got it? Yes, wrong place and time for WD, maybe in the next life on Orion it could turn better.
II
1 This is a sort of illiterate test. AS is Witchdoctor.
Imagine that bank lends money and the borrower can not pay his loan. He gives the bank a collateral. His house. His house matches in value the value of the loan from the bank. Now, what happens? The banks sells the house and with the money from the sale matches the loan and then destroys the money. That is the story of many who talk money, Steve keen included
2 Folks,but why bother? Why sell the house of the borrower and why not instead burn it down directly and spare time and effort to sell it and then with the sale money burn/destroy down the loan/deposit?? Is this also an ethical problem of not demolishing houses for the bookkeepeng reasons? What is the difference of demolishing the house and so destroying the created deposit/loan, since the end result is the same, the money paid back and the loan get destroyed when the bank operation ends?
Witchdoctor is dead wrong about late neoliberal morals.
III
1 Imagine that the borrower, unable to pay back the Bank loan, has some gold nuggets.The bank seizes the exact amount of the loan, plus fees and interest in gold nuggets. The principal- the net loan, taxes fees and interest excluded, gets repaid by what? AGAIN? The principal is paid back by selling gold nuggets and then by burning/destroying the money of the loan/deposit. But again, why keep this ethics of selling gold, burning money from the sale instead of ditching gold in the first sewage near the bank ?
Or, talking ethics, maybe giving this gold for free for some humanitarian purpose?
WD is getting more and more wrong.
So, here is the excerpt from a real expert on the matter- Professor Richard Werner. Cited in this blog many times. He proved scientifically what is going on in the process of Bank money creation, lending. And yes, the real thing- the law behind it and which forged bookkeeping banks lawfully use for the last 900 years, pretending they are lending their gold reserves while typing zeros directly DIRECTLY INTO THE BORROWERS DEPOSIT. ,. Bloody double bookkeeping is it, a forgery, but WD is usually wrong on this topics..
Why Richard Werner proved it scientifically? Because he made experiments and tested them analyzing real time the process, etc, the Bank deep throat books. See Richard Feynman what is an experiment for clarity and why it is scientific…
“
The ‘lending’ bank records a new ‘customer deposit’ and informs the ‘borrower’ that funds have been ‘deposited’ in the borrower’s account. Since neither the borrower nor the bank actually made a deposit at the bank — nor, in connection with this transaction, anyone else for that matter, it remains necessary to analyze the legal aspects of bank operations. In particular, the legality of the act of reclassifying bank liabilities (accounts payable) as fictitious customer deposits requires further, separate analysis. This is all the more so, since no law, statute or bank regulation actually grants banks the right (usually considered a sovereign prerogative) to create and allocate the money supply. Further, the regulation that allows only banks to conduct such creative accounting (namely the exemption from the Client Money Rules) is potentially being abused through the act of ‘renaming’ the bank’s own accounts payable liabilities as ‘customer deposits’ when no deposits had been made, since this is also not explicitly referred to in the banks’ exemption from the Client Money Rules, or in any other statutes, laws or regulations, for that matter.”
https://www.sciencedirect.com/science/article/pii/S1057521914001434?via%3Dihub
Before typing other links: The problem of Bank money creation is that the laws regulating it are 800 years old, when the bankers were pretending to lend reserves, even gold in form of whatever promissory notes , which, the notes, were the first act of forging, since there was no real cover for them and so fiat was there even 800 years ago, but hushhush..
links:
NICOLLETA FORCHERI:
”
From this lack of definition of the first letter or the first word of the accounting alphabet, two other accounting flaws arise: the failure to register the MONEY in the cash register at the time of creation and the false liabilities for false balance, with incorrectly applied accounting principles…”
MARCO SABA – THE FINANCIAL EXPERT FORENSIC
https://www.youtube.com/watch?v=XBsVDCFwba4
HERE, TEXT
https://centralerischibanche.blogspot.com/2018/11/cosa-succede-quando-la-banca-crea-un.html
This link is very good, Richard Werner explains what is legally the banking business.At, after the 6 min in the video. In short, it is not your deposit, there is no deposit in the banking law, the money you put in a bank is de facto a loan you made to the bank. The credit, the money you borrowed is not lending by law, banks do not lend money to you,in fact they are purchasing a security paper (from ) you are paying for,which was made as the money out of nothing,they do not transfer money to your“deposit”which you will repay but not hold in your name after paying it.
https://www.witchdoctor.space/2018/04/06/the-fake-act-of-money-creation/
https://www.witchdoctor.space/2018/03/30/money-is-not-the-money/
OR, a part of the transcript in Witchdoctros blog
In the meantime, we went full fiat. Banks do not lend reserves, they type numbers out of thin air directly into the “customer deposit”. Even MMT Bill Mitchell holds this opinion and maybe Witchdoctor is wrong on that too.
In fact the REAL BOOKKEEPIN practice would be that the bank, while typing zeros out of thin air, first types zeros in its OWN ACTIVE Account SIDE, showing it – the money- on its own passive side- money was out and lent- when and while moving money to the customer deposit and by doing so then moves the money trough the bookkeeping ledgers to the customer deposit account. When money is paid back by the borrower, the bank moves this money to its active side and closes down its passive side as money returned where it came from ) out of thin air). The customer deposits goes down to zero , too ,since the borrower repaid the bank loan..Suddenly we will see the money and it will be there.On the BanK Active side. Not destroyed. THE INCREDIBLE FACT IS THAT THEY, THE BANKS, ARE NOT DOING IT.
THE MONEY DISAPPEARS SOMEWHERE IN THE BANK BELLY AND IS DEFINITELY NOT DESTROYED.
This borrowing process, as Richard Werner shows in the Anglosaxon law, Where Steve Keen is from, Is also a trick of how borrower , when taking a loan in fact buys a bank securization paper which goes somewhere in the bank belly and so it hides it from the books.
But Witchdoctor is normally stupid and wrong , not in details , but overall.
MMT should be called BMMMT. Burning Money Modern Monetary theory.The emphasis is on Modern.
But, Witchdoctor is wrong. Who is he to piss against the wind, against this excellent, outstanding,Best ever ultimate invention in the whole Universe, the best social system ever invented in the Milking Way? The quintessence of the human mind achievement- Burning down the money paid back and lent. Ok, not burning, it is too drastic indeed, only destroying it.
SILENT MAJORITY- INTERMEDIATE CONCLUSIONS
Have you seen the elections in Brazil? Bolsonaro, eh? Silent majority which escaped the polls measurements?
You Have Read the previous post?
Now, to understand the way how Witchdoctor treats the concept: The two candidates, in a tie, have to move towards the “political center” to win. That is the essence of the history pilot trash wave! It shows the inner construction. So, The winner has to move center to catch the most of the upper and lower amplitude of the pilot wave (silent majority bandwidth amplitude) to win!
The bandwidth of the Silent Majority is on both sides. Easy, is it not?
Quantum slit experiment distribution, anyone?!
One has to catch, by moving onto the center of the bandwidth, the most of the silent majority voters.Who gives a shit about principles or ethics. It is only a watered washed down text , the essence is winning.
Winning the mayoria de cabrones, cojoneros and vacas locas.
Maybe curb the pilot wave into some other degree of freedom.
Plus the Evangelicals in Brazil, they are the religious quintessence of neoliberal thought- God works for each of them personally to make them rich, famous or well placed. They and the millions who work on chopping the AMAZON FOREST plus the agrobusiness overlords and millions of peasants, want to chop more! It is a living,profit,, chopping down the plants which take the CO2 from the atmosphere. Green parties, got it?
So, who will be the president of chop chop economy.?
Why is this so similar to QM? Up to you, not me, I know why.
EUROPE FORECLOSURE
Lets make some idiot economy proofs. Wrong as Witchdoctor.
Europe paying incredible sums for energy, gas linked to electricity price as a main marker. All made in Amsterdam so called market TFT, which should have been closed and disbanded months ago, as even the chief of NOMISMA ENERGY Italy, mr. Tabarelli, once, late night, said. This Nomisma is not some obscure outfit, it is The Outfit in Italy.. Rightfully said so.
So, in few months Europe will see a mass foreclosures. Even the pizza, maybe if the oven is wood- the best pizza is made in wood oven, this remark is for Anglosaxons, and many Germans,, it will survive.
OK: if the energy cost in a product is 30% a 3times hike brings the product cost at 90% of energy only.. This is The default. Mostly the energy hikes are 4 to 6 times. See, it is the end, of hotels shops , restaurants, cars manufacture iron aluminium, cement, etc, etc etc etc… pizza and ice cream and all frozen storage of peas and pies.You may cook, hm, Witchdoctro has a garden a a big freezers storage, up to you. If, by luck somebody has a huge margin, he will maybe survive if he finds a buyer, as the purchase power will vanish. Even a 10% energy cost with this hikes leads to min. 40% cost of energy In a product.
THE SOLUTION
Apart from mumbling about the price cap, or each country its own subsidy, which leads to the result that a country with largest subsidies for energy will win the whole 500 million market, which is a 200 billion subsidy German plan of winning again ( after the first strike, the euro) the third world war in Europe with so called economical means. But in this case the most of Europe will not be deindustrialized, it will be somewhere in middle ages. Obsidian will replace iron and even bronze haha, back to the future neolithic..
Apart from subsidizing all Europe together a 500miliion market, there is only one solution:
If this energy hike is one off, the mostly one time event and if we have reached a peak, THEN; The ADEQUATE and finely balanced rise in wages is the only tool left to counter balance the offer and demand.
The whole economy will bounce to the higher level of prices and wages, like, if WD goes in sweden an pays 15 euros for a beer, that is it, when at home he is paying 3-4 euros. The Swedes are, yes with higher wages , but also with much higher prices.
NOW you say, yes you the , hmmm, Master of puppets, tell us Witchdoctor (with a devil grin), then, how will Europe export outside the EU as the final price will be out of the market? Too high for any non Europe country to buy any EU product?
First, true, second, some countries outside EU will have to do the same.
OR
Well, yes, but the remaining option is THE FORECLOSURE. So, what is best, to sell in a 500 million market and keep the “shops” open in a sort of the island, or close down FOREVER AND EVER?
Well folks, Germany has thought it over. It will subsidize for themselves, who gives a shit about others, and, by subsidy keep the price Down and keep exporting (to other Eu deindustrialized States ,too), yes the friends in China are the only ones left.The German populace,the best disciplined sheep after the Chinese, will put a ton of pullovers on themselves, eat cold not cooked frankfurters with this giant ,each half kilo pickled gherkins (pickled cucumbers) and the Ruski, ha, after Uncle Joe has blown up the pipes…. but they will export, oh yes, sturmtruppen Menschenführung – about the book Nazi economy – Nazism and Management, By Johann Chapoutot, in the next posts.
Next more unortodox solution, already practiced in Greece and Italy and south EU, is to avoid paying taxes -the black economy- now around 30% in Greece. That is what keeps the Greeks afloat, not some idiot troika or IMF.
Because budget deficit = net spending. Greeks are saving for themselves personally and who cares about the budget.
This is Keynes, WD supposes.. not some BMMMT ?
Greeks are still alive because there is the black economy and they are the most neoliberal minded people, apart from Evangelicals. They always try to do what they want, each for his own, see the chaotic never ending cementification of beaches, islands with tons of new rooms small hotels and tavernas and etc,every year, the favorite sport of the southerners to build and cement and collect some money from tourists (even if the capital return of this more and more rooms is for never), or go Athens. On the other hand the public sector is the only one who wants taxes, to get better pays and mostly do nothing in their offices, or they invent some more idiotic laws which everybody, public sector included, break when they need to..
All other public is in shambles, and if you are clever, break rules, make black economy ,and then you go to your preferred private doctor who pays no taxes, as the whole shipping industry does legally… and public schools and hospitals are a disgrace for homeless.
So, on top of this you will get also the mass foreclosures, and VAT can rise to 35% but the budget is gone, anyway.
Yanis Varufakis has no chance, unless he invents a different approach. Greece is not Cambridge, indeed, and he knows it. So?
Slovenia, anyone?
Keep skating on the razor edge.
This essay was too much even for the Ockham Razor.
Witchdoctor