Apr 27, 2014 - 10:50 PM GMT
By: Andrew_McKillop
The 2008-2013 Plan
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 http://www.usagold.com/germannightmare.html. 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. Centrl banksters idem.
Neither Stalin nor Hitler counted the collateral dead. Being mentally-unhinged Tyrants such things were unimportant to them. Centrl 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.
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.
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.
By Andrew McKillop
Contact: xtran9@gmail.com
Former chief policy analyst, Division A Policy, DG XVII Energy, European Commission. Andrew McKillop Biographic Highlights
Co-author 'The Doomsday Machine', Palgrave Macmillan USA, 2012
Andrew McKillop has more than 30 years experience in the energy, economic and finance domains. Trained at London UK’s University College, he has had specially long experience of energy policy, project administration and the development and financing of alternate energy. This included his role of in-house Expert on Policy and Programming at the DG XVII-Energy of the European Commission, Director of Information of the OAPEC technology transfer subsidiary, AREC and researcher for UN agencies including the ILO.
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