Import as many immigrants as possible, then dump welfare payments into their laps; this will raise GDP faster than debt lowering the national debt-to-gdp ratio necessary to attract more foreign and domestic investment through fresh national debt issuance – rinse, repeat. If you find this statement criminally insane, I concur, but this is exactly what modern New Keynesian economic theories predict and now openly encourage; especially for economies with potential for huge farm product surplus like the United States, Canada, Australia, New Zealand, and the EU Common Market. If you can feed, then, feed you must, besides, it’s good for the economy sayeth the econ-wizards – under their breath.
Ever wondered how on earth the immigration policies of the US and EU got so bonkers?
Look no further than the New Keynesian Debt-to-GDP Cult Icon of the Church of Helicopter Money explained herein. Instead of a crucifix hung majestically over a sanctified altar, imagine, if you will, a golden percentage symbol hung over a large stack of sovereign bonds and mortgage backed securities as a newly resurrected, Messianic though reluctant, Milton Friedman, and his proselyte Larry Summers, preside over a ritual in which debt is miraculously transformed into greater GDP and tax revenues; feeding creditors, the tired, the hungry, the poor, the world. John Lennon’s Imagine would be sung from the choir by a very diverse looking sea of angelic faces to set the mood.
Summers and Friedman would be qualified to work this communion ritual in tandem despite their Keynesian vs Monetarist hair splitting. Summers, a converted neoliberal econ-wizard and ‘progressive’ Democrat would complement the preeminent prophet of neoliberalism who ushered in Reaganite suicide economics (read to the end if triggered). This ritual is a nonpartisan synthesis. It is holy. It is sacrosanct. It is merely a magic act requiring the group focus of enough qualified mental energy to whisk helicopters to the correct destinations just at the right time, dropping payloads of fiat units either freshly created or sourced on credit, depending on the prescription. Only a few men are qualified to read and interpret the omens, augmenting the ritual as required – a little to the left, a little to the right, left, stop, just right!
Friedman had impeccable timing: Upon his death in November 2006 at 94 years of age and less than two years before the GFC train wreck, stocks were soaring and real-estate was on a tear. It seemed as if communist manifesto waiving Bernie Sanders types and the gesticulating protectionist Donald Trump’s of the world had been chained up like Minotaur’s in the Federal Reserve basement; never to again plague the neoliberal paradise with outdated, populist, unorthodox appeals to the unwashed rabble. The tech bubble was merely a speed bump and supply-side economics together with the progressive Federal government social program had finally triumphed. In this, the 94th year of a new era since the coming of Lord Friedman, Summers eulogized the late savior in a NYT op-ed entitled “The Great Liberator” :
“Not so long ago, we were all Keynesians. (“I am a Keynesian,” Richard Nixon famously said in 1971.) Equally, any honest Democrat will admit that we are now all Friedmanites. Mr. Friedman, who died last week at 94, never held elected office but he has had more influence on economic policy as it is practiced around the world today than any other . . .”
On the edge of disaster but blissfully unaware of immanent failure, Summers is here epitomizing the clueless economist of the 20th and 21st centuries; akin to the Colonel Blimp character of the 30’s and 40’s British cartoon cycle, unconcerned about mounting casualties, bad strategy and, totally detached from the reality just over the horizon. It’s no wonder that in April 2004 Larry famously mocked the Winklevoss twins of the now infamous Facebook intellectual property controversy for believing Facebook could become a million dollar business; only two months before Peter Thiel invested $500k; two years before it became a billion dollar business; it now being valued at half a trillion dollars.
Larry continued his eulogy to Friedman :
“As an undergraduate in the early 1970s, I was taught that everyone other than Milton Friedman and a few other dissidents knew that fiscal policy was of primary importance for stabilizing economies ... When I started teaching undergraduates a decade later, Mr. Friedman’s heresies had become the orthodoxy. ... Another example of Mr. Friedman’s influence is the structure of modern financial markets. Today we take it as given that free financial markets shape finance. The dollar fluctuates unhindered against other currencies and there is an entire industry of trading futures and options on interest rates and currencies. At the time Mr. Friedman first proposed flexible exchange rates and open financial markets, it was thought that they would be inherently destabilizing and that governments needed to control the movement of capital across international borders. ... Milton Friedman and I probably never voted the same way in any election. To my mind, his thinking gave too little weight to considerations of social justice and was far too cynical about the capacity of collective action to make people better off.”
For a man dedicated to social justice, it comes as an irony that Summers was dethroned as President of Harvard University in 2006 – shortly before penning this op-ed – for among other things having made a remark that the under-representation of females in science and engineering could be due to a "different availability of aptitude at the high end". Summers is, obviously, a self-proclaimed ‘liberal’ with a lack of situational awareness; this is like accidentally stumbling into the Grand Mosque in Mecca eating a bacon sandwich. If sober and liberal, sometimes thought crimes – even if true – should be left for the appropriate Republican/Nahtzee to point out.
It’s not that Friedman gave too little weight to social justice considerations, but rather, he had a completely different outlook on which direction to dispatch the helicopters, how to fuel and man them, how to acquire the cargo, including who to airdrop the cargo on in order to keep the Franken World Order from collapsing immanently. Two years before paradise was finally lost, Summers concluded this heartfelt NYT Friedman eulogy by endorsing Milton’s Herculean cult :
“I feel that I have lost a hero – a man whose success demonstrates that great ideas convincingly advanced can change the lives of people around the world.”
. . . or bankrupt millions of people around the world.
If you read modern economists closely enough, talk such as “heresies” becoming “orthodoxy”, can easily be interpreted as religious dogmas evolving within a Great Reformation burning within the whited sepulchres of Central Banks and Treasury offices; our new Cathedrals and Abbacies respectively. Banks are the Churches, Central Banks are of course the Primates, the Chair of the Federal Reserve being the econ-o-Pope (Cathedra means chair/seat after all). Infallible though the Chair of the Fed may be – for they can always sign a trillion dollar check on an account with a zero balance – they nevertheless serve at the discretion of the Emperor in the White House who is supposed to respect their autonomy by convention. No investiture controversy, for now.
After reading enough modern econ, one can’t help but make parallels to the feeding of the five thousand parable from the Holy Bible; the only difference being that these be mere mortals. No claims to divinity – not yet – just loyal servants in the Church of Helicopter Money. When they start canonizing dead Nobel laureates in economics – like Friedman – this analogy will become a veritable revelation, crowned, and apotheosized. Spiritus sanctus sunt Mammones!
"I Larry, baptize you with social justice for repentance. But after me comes one Milton, who is more powerful than I, whose sandals I am not worthy to carry. He will baptize you with the Spirit of Mammon and helicopter money from heaven.”
~ New Standard and Revised Helicopter Bible.
“We need more helicopters ... call in the helicopters!”
As gifts from heaven go, unfortunately, most people would confess that cash raining down from the sky on Sunday would be preferable to a fire and brimstone sermon or a denunciation of usury drudged up out of Leviticus. Such a revelation of the future including such ‘helicopter money’ was first described by Friedman in his now famous tract “The Optimum Quantity of Money” published in 1969, in which he included the following parable :
“Let us suppose now that one day a helicopter flies over this community and drops an additional $1,000 in bills from the sky, which is, of course, hastily collected by members of the community. Let us suppose further that everyone is convinced that this is a unique event which will never be repeated.”
Unique baptism, indeed. Hallelujah!
Friedman was merely using this as a theoretical device to explain the effects of monetary expansion; it was not a policy proposal, though it now seems like a prophecy – albeit the uniqueness and non-repetitiveness of the event requiring an edit in the New Standard and Revised Helicopter Bible wherein a lack of short term memory in the recipients is substitute as the caveat. Save for a situation where this money is a literal charity drop by a friendly billionaire riding on a camel – of their own free will – such an event would obviously require someone else’s money; dropped either against their own free will or without their knowledge (ie, utilizing deviously subtle monetary devices as per below).
Federal Reserve Balance Sheet
March 2018 assets: Tr.Securities = $2.28 trillion; MBS = $1.76 trillion.
All profits generated from this irregular mountain of Fed balance sheet assets – mostly government debt and mortgage backed securities – are returned yearly to the US Treasury; known as remittances. No statutory law and merely convention (an interesting history) has created the situation where this profit does – but does not have to – get returned to the Treasury; though heaven forbid if the Fed ever suggested it wouldn’t because an investiture controversy would rain down on the Fed as if Frederick Barbarossa himself had suddenly transported into the White House. These remittances mean that all the while these asset purchases are retained at the Fed, the money/credit cargo which was helicopter dropped to government and private financial institutions who sold the Fed these assets, is technically issued without sin (usury).
This helicopter cargo sounds suspiciously like Abraham Lincoln’s Greenback issues, right? Not exactly, because in this situation the Federal government is profiting directly from mortgage usury attached to the over speculation in the real-estate sector, whereas the technically ’usury free’ Treasuries component is merely delayed pain; the huge resultant yield-curve distortion will come back with a vengeance like a tidal wave after the water is momentarily sucked out at the beach, and unwinding these assets will quicken the onset and height of the wave.
Thus, for the purposes of such a thought experiment in the post-GFC world, questions arise about the nature of the coveted helicopter cargo :
Zimbabwe type cargo: Is this cargo newly printed money with no government debt attached to it like the Lincoln era Greenbacks, being simply released then forgotten?
QE type cargo (official fiction): Is this cargo newly printed money or credit swapped for government debt and mountains of mortgage backed securities which are dumped on the Fed balance sheet ... temporarily?
QE type cargo (actual reality): Is this cargo in fact Zimbabwe type (newly printed money) masquerading as official QE type, the debt securities sitting on the balance sheet of a perpetual junkyard known as a central bank; an entity not now capable of unwinding the trillions in debt purchases that brought the required bailout money/credit into existence without causing another crisis requiring perpetual repetition of QE?
Thus: Does this new stimulus money have a convenient identity crisis where the sin of usury is still present, but not, but is, but isn’t, depending on the eye of the beholder?
Or: Does it really matter anymore how this money/credit identifies now that nothing in our New Keynesian financial wonderland seems to be anchored to the ground when we peek through the looking-glass?
Just as Facebook now endorses 70+ gender identities including the ‘gender fluid’ catchall, perhaps money identifies as credit and vice versa, the fractional reserve requirement being an irrelevant bigotry as long as a polygamous bank-to-bank-to-bank (etc) marriage can sanctify the loan confusion. Confused? Just as the highly ‘progressive’ gender spectrum should in fact confuse a sane person, so should New Keynesian voodoo.
But why do we need helicopter money?
Forcing money into an economy when the free market is spooked is only possible if a centralized body adopts a conscious and targeted program of helicopter money. Insane amounts of government debt purchases by the Fed Cathedral have kept the government bond market artificially liquid, allowing the Federal government to easily fund their ballooning budgets spent on the welfare-warfare gravy train. Such government debt purchases bought without immediate sin of usury have assisted government in dodging immediate increases in debt service payments and they’ve also artificially suppressed interest rates.
These low interest rates were supposed to encourage increased levels of private lending to trigger economic growth but these bailed out banks just sit on mountains of ‘excess reserves’. These banks either know they’re only in the calm eye of a hurricane and/or they are taking advantage of another feature of Friedmanite lunacy: Fed Members are actually earning interest payments from the Fed on their required and excess reserves through a law passed in 2006 prior to the onset of the GFC based on advice from Milton Friedman! This will provide fuel for a future article because it complicates the dynamics of monetary stimulus programs markedly; especially the long-term effects. It’s as if this law was put into place with foreknowledge of the coming crisis.
“For example, required reserves averaged almost $100 billion during the first six months of 2012, while excess reserves averaged $1.5 trillion! . . . Since January 2009, the monthly average interest rate on both required reserve and excess reserve balances has been ... 0.25% at an annual rate.”
~ Dr. Econ. San Francisco Fed. March 2013.
Although this rate started at 0.25%, it is now 1.75%, hugging the official inflation rate. What would happen if the economy went into deflation? What would happen if the rate was increased above inflation by the Fed?
Mark my words: Such laws are introduced in the long reactionary evolution of central banking to serve different purposes to those which belie their inception. Never let a bad situation go to waste, as they say.
“The rationale behind the early deployment of the Fed’s authority to pay interest on reserves was entirely different from that behind the original, 2006 measure. Interest on reserves was to be relied upon, not as a means for improving banks’ efficiency, but as a new Federal Reserve instrument of monetary control.” ~ George Selgin
The above is a quote from George Selgin’s masterful 2016 written testimony – packed full of graphs and analysis – before the House Committee on Financial Services, Subcommittee on Monetary Policy and Trade. Interested readers can access this at Selgin’s Alt-M blog here. Ben Bernanke even admitted the new rate instrument was inexplicable :
“In his first policy speech since early December, Federal Reserve chairman Ben Bernanke laid out an exit strategy for the various lending programs it has instituted in response to the credit crisis. But Mr. Bernanke admitted that one consequence of those programs, a huge increase banks’ excess reserves, is currently stifling the Fed’s monetary policy moves and, in turn, its efforts to revive private sector lending.”
~ Matthew Quinn. Jan 13th, 2009. Financial Week.
Econ-o-Pope Ben Bernanke: Bailout zombie banks at the front door allowing them to be in possession of excess reserves, then pay them an interest rate on those same freebies that are recycled through the back door, while claiming this mechanism is stifling the one thing you were employed to do; keep employment stable by at least not impeding private lending. It would be a grave mistake to interpret these actions as mere stupidity or to justify them with apologetic statements like “well, they need this mechanism for some higher purpose above the comprehension of normies” – one of my all-time favourites.
Return to feudalism and monopoly land lords
In regards to the Mortgage Backed Securities segment of these Fed asset purchases, these represent a helicopter cargo drop to banks which had taken part in this debt smorgasbord resulting in jacked up house prices. When these banks couldn’t deal with the mark-to-market losses after house prices peaked-out, then plummeted, these banks were able to dump this toxic debt at the Fed junkyard – which paid using bogus checks drawn on the same account with a zero balance – preventing banks from going bust. Now the Fed has inevitable, massive, future write-offs to deal with; culprit bankers who profited wildly through fees generated by this securitized trash, walked away scot free with huge bonuses in hand.
During the medieval feudal system large portions of European nations were owned as part of sprawling ecclesiastical estates which generated huge rental revenues for Monastic Orders and Bishoprics. Today, millions of ‘owners’ (virtual sharecroppers) attached to these overpriced mortgages – including renters keeping their landlords above water – are in effect providing a source of usurious revenue for the Federal government which then uses it to refuel the welfare-warfare gravy train. Younger generations are faced with the crushing reality that a hefty component of the number one purchase they’ll ever make during their lifetime, is being extracted like a pound of flesh – a targeted tax attached to a segregated estate – by the Fed, which then spirits it off to government coffers after also paying Fed member banks an increasing reserve interest kickback from this same revenue stream.
To put these Fed MBS assets into perspective, a portfolio of $1.7 trillion divided by the current median house price of $188k would represent just over 9 million houses! Mr and Mrs America, turn in that rent on time.
The Great Reformation of economics going on within the halls of academia, the Treasury, and the Fed, has never been fiercer. Whereas Summers eulogized his hero pre-GFC by proclaiming that “any honest Democrat” would now admit to having been converted from a Keynesian into a neoliberal Friedmanite, post-GFC many now mumble under their breath in these same halls lamenting the quick change in sacramental rite from fiscal to monetarist as if it were a Vatican II tier earthquake. Not Larry though. Larry is well known for never offering a mea culpa. It is for this reason he would have made the greatest econ-o-Pope of all time. From the Fed Chair he’d yell “Heresy!” at anyone blunt enough to point out he’d forgotten to put on pants.
Who was responsible for this MBS insanity?
As The End Of Banking opined in 2015 :
Shadow Banking 2.0
“It is not only old fashioned banking that is hijacking the supply side of marketplace lending. The big investment banks discovered marketplace loans as viable raw material for their securitization machines . . . Hedge funds or investment banks can buy these asset backed securities (ABS) and use them as collateral for borrowing money on the money market . . . It is only a matter of time until a systemically relevant institution will have the brilliant idea to insure the repackaged marketplace loans, that is, to sell credit default swaps (CDS) on ABS using marketplace loans as an underlying. Surely, Larry would welcome this development. CDS are the same type of product he pushed so hard to deregulate 15 years ago [while Treasury Secretary under Bill Clinton]. AIG was very grateful for his efforts; it faced less of those annoying regulatory obstacles when it went on a $500 billion selling frenzy with CDS, which eventually ended up in a huge government bailout.”
Summer turns into winter in those hands.
More Medusa than Midas.
Would Larry’s cult hero Milton have approved of this reactionary and ongoing use of helicopter money across the leading G20 nations during and since the GFC? It’s a pity he’s dead, because we could really do with some answers from the horse’s mouth if only we had a Moses to climb the heights of Mont Pelerin to enquire of the oracle of wisdom, returning with a new set of econ-o-commandments beginning with, probably, “Thou shalt not wake me from my well timed slumber!” – which might be the sole commandment. As a self-proclaimed convert, maybe Summers has a pair of crampons handy.
Perhaps the following from a 1995 Friedman interview entitled “Best of both worlds” in Reason magazine can provide an answer :
Reason: Do you think you've become more radically libertarian in your political views over the years?
Friedman: The difference between me and people like Murray Rothbard is that, though I want to know what my ideal is, I think I also have to be willing to discuss changes that are less than ideal so long as they point me in that direction. So while I'd like to abolish the Fed, I've written many pages on how the Fed, if it does exist, should be run.
Friedman should have been a politician instead of an economist.
The title “Best of Both Worlds” was well chosen. At 82 years of age, Friedman believed that the path to his ideal of eliminating the Federal Reserve was, in fact, to build up the Federal Reserve. After all, his entire shtick was the analysis and manipulation of the money supply; a task impossible without this piece of cultural technology – money – being centrally controlled. As a foe of a return to the gold standard, perhaps Friedman realized that if the Fed didn’t exist, the Treasury would simply be printing the Greenback’s required to fight severe credit/money crunches itself; the Emperor in the White House and his Princes in Congress having all the say over whom to drop the cargo on rather than qualified, intellectual, but ‘apolitical’
Exorcising the Paradox of Thrift
The Paradox of Thrift actually sits front and centre on a pew in the Church of Helicopter Money, being an uninvited guest which never fails to spook the parishioners and agitate the officiants. This paradox preaches, heretically, that autonomous saving of income by parishioners will result in less consumption (aggregate demand) by the parishioners, resulting in less overall income, causing less overall spending and less overall saving; thus, the paradox is a viscous cycle as if a snake were eating its own tail. Said another way, one person’s spending is another person’s income, thus collective saving caused by decreased consumption will lead to an overall decline in output, reducing everyone’s ability to save.
In layman’s : “Spend! Spend! Spend! Or you’ll hurt your friend.”
Alternatively : “Save! Save! Save! You’ll send your friend to the grave.”
Go shopping you evil maniac!
Once the parishioners get collectively spooked, runaway attempts to save/hoard cash start occurring economy wide causing the GDP to contract markedly (as shown above, in green, during 2008) leading to a recession or maybe a depression; usually concurrent with deflationary pressure as available goods and services drop in price due to momentary lack of demand and oversupply. As the 2008 GFC proves, by this point extraordinary helicopter rituals and money rain dances are required, causing the officiants to swing into action to execrate the evil Paradox of Thrift from the Church of Helicopter Money before further parishioners are possessed by spending anxiety demons, requiring exorcism.
By activating either a proactive or reactive helicopter drop ritual from the Fed Cathedral, money can be dumped into the congregation to create the atmosphere that nobody will be without; the interest rates are temporarily decimated by these huge bond buying operations (extraordinary open market operations) to discourage habitual saving by the majority of parishioners, heightening inflation. It’s a communion ritual to feed the flock in order to maintain a congregation who might otherwise burn down the Fed Cathedral after asking “who gave this institution so much cargo?”
In answer to this question : The Fed Cathedral is only distributing other people’s money. As a sharecropper your mortgages and rents, for instance, are much higher than they should be due to the speculative binge, thus the Fed is only surreptitiously redistributing a portion of the wealth that both itself, and the Federal government, have previously extracted from productive members of society – mostly the taxpaying middle-class to upper-class core white demographic.
Robbing Peter to pay Paul
IMPORTANT: From the Reserve Bank of Australia website, the following graphs compare dwelling price-to-income ratios across the western world. If you’re in the US, spare a thought for your Anglosphere and European cousins. As can be seen, current housing affordability for new home buyers is much worse in these nations than in the US, which well and truly had its bubble popped in 2007. In addition to monetary inflation, real-estate is the major western economic sector where pounds of flesh are being excised to fuel the helicopter cargo cult.
While pondering these graphs, keep in mind the following :
1) This graph only shows market values of properties, not the mortgage values locked in by a huge number of home buyers who bought high and now own properties with large negative equities. If these housing stocks were instead measured by the nominal value of each mortgage, the US graph in particular would not look as if it had dropped back to an average level just below a ratio of 2. The Fed owns many of these riskier mortgages with over-inflated face values. When interest rates rise, the Fed will reap huge usury revenues on these assets but also face increasing write-offs as people collapse into bankruptcy.
2) Because the US Dollar is the world reserve currency and most western nations sit on mountains of US Treasury debt, monetary inflation by the Federal Reserve is robbing overseas bond holders of value – effectively through near zero interest rates – transferring much pain to other economies via artificial US Dollar strength. This complicated mechanism is fuel for a future article, but this helps explain why the US ratio is so much lower than its peers in the developed western world experiencing crushing housing crises never before seen in their history.
3) Most importantly of all: With housing affordability so much worse than prior to the onset of the neoliberal era, nations of white European descent will delay raising families or at least decide to have less children. Affordable housing is the number one, essential requirement, for healthy family and community life. These same nations for this reason – among others – have sub-replacement fertility rates; meaning the quantity of consumers in these economies would be naturally reduced and the proportion of the population which is working age will also be depleted, without deliberate, heavy, ‘legal’ or ‘illegal’ immigration!
Debt-to-GDP Cult Icon of the Church of Helicopter Money
This connection to immigration policy is where a big picture understanding of New Keynesian economics nested within a neoliberal, monetarist, Freidmanite world order, becomes extremely perverse.
For every dollar that is injected into the economy through a centralized fiscal or monetarist helicopter cargo drop, a multiplier effect is translated into the GDP as a growth component. This stimulus effect occurs for the same reason that the paradox of thrift causes a GDP contraction upon saving. When the government taxes you, your savings ability is reduced and these dollars you would otherwise have used to pay off your creditors are instead vectored towards the welfare-warfare gravy train through fiscal policy. When your money is inflated away through monetarist policy, the same thing occurs by different means.
Commensurately: Through a mixture of taxation, borrowing, or printing money to load up an annual helicopter cargo program, an average GDP multiplier effect such as that listed on the horizontal axis below will result. Lining this up on the vertical axis with the existing debt-to-gdp ratio of a nation, will render an increase or decrease in the debt-to-gdp ratio after the cargo is dropped. In the below, a $20 trillion economy similar to the US experiences a $1 trillion helicopter drop.
Overall multiplier effects above 200% would be equivalent to a raising of Lazarus economic miracle. Higher multiplier effects get harder to achieve as an economy develops, especially when infrastructure and housing is built-out. The US Military Industrial Complex and welfare state are the easiest segments of the economy to dump cargo on in order to generate a higher multiple. This welfare-warfare gravy train accounts for over 50% of federal spending; dependent on how one defines welfare.
Importantly, the higher the debt-to-gdp ratio of a nation, the easier it is to achieve a drop in the ratio using helicopter drop rituals; meaning, you have to be ‘evil’ with this annual ritual before it will become a ‘holy’ annual ritual, and if you decide to stop, well, you can’t, it must be repeated annually. Below can be seen the changing evil-holy debt-to-gdp dynamics of the world’s most important developed economies.
The Japanese economy is an obvious outlier. Japan has an amazingly well developed and built-out economy, owing most of this massive government debt to itself (Japanese creditors and government). As well as being the world’s largest food importer, it also has a small military industrial complex compared to US and EU nations; making its potential multiplier effect very low indeed. Japans Church of Helicopter Money is very low energy – from a New Keynesian perspective. With Japan’s declining population since 2010 caused by extremely low fertility rates and an almost non-existent immigration policy (which may be about to change), this nation is clearly a very insular and interesting economic case with which to compare other developed economies. This will be the focus of a future article because it helps prove the thesis posited herein.
The more immigrants allowed to flood into our developed western countries, the higher the demand for housing; increasing prices for existing housing stocks and spurring construction of new homes. As a result, the nominal value of MBS assets on the balance sheet over at the Fed Cathedral will be somewhat protected. Bankers also have new debt fuel for new mortgage backed securities, providing further fees and juicy bonuses. The huge surplus of farm products in our nations will also find more mouths, raising the price of food and keeping big agricultural corporations in business with large profits. Under New Keynesian management, population replacement is demanded.
As a result, the debt-to-gdp ratio will remain static or decrease, making future borrowing via bond sales easier. More government bond sales mean more delicious fees for the Primary Dealers at the Fed Cathedral. Employment will be protected but at the cost of cultural atomization. Many of these immigrants are working age, and will work for much less than a multigenerational citizen whose ancestors fought for workplace reforms. Basically, these people are a ready pool of strike breakers, many coming from impoverished, kleptocratic and communist nations.
These invading hordes have nothing in common with western standards of freedom and will continue to vote for New Keynesian socialist policies. These policies rob the middle-class and upper-class core white demographic to pay for invading hordes of their own kin whose ancestors had no historical buy-in during our nation building process. While this occurs they will openly mock the founding demographic, publicly burn national flags, while taunting boldly that they will soon become the majority voting bloc. Your status quo politicians on both sides of politics will assist them and so will the bankers who donate to their campaigns and author their policies.
If you think ‘small government’ Friedmanites like Ronald ‘Amnesty’ Reagan were your friend, just have a look at the graph immediately above for 1981-1989; this doesn’t even tell the story regarding offshoring, which will be the subject of a future article demolishing the myths of Reagan and Thatcher. Economically, it doesn’t matter whether you vote left or right in status quo politics today because the New Keynesian synthesis is complete; fiscal budgets won’t be cut and monetarist schemes spearheaded by central banks and their member bank jackals will continue to rape and pillage the land for gain. Don’t get black pilled however, because there is a solution involving a special cryptocurrency regime which could radically transform modern economics.
I’ll tell you later because I like to tease 😉
One last burning question beckons: Will you continue sitting in your pew, quietly, at the Church of Helicopter Money, while your Nation is dissolved by the morally corrupt officiants of the Fed Cathedral, their money changing bosses, and servile temporal lords in government who want you and your offspring as sharecroppers in their neo-feudal dystopia?