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•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
•Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
•The single most important problem in economics is the Gap between rich and poor.
•Austerity is the government’s method for widening the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..
Virtually all politicians are liars, as are some journalists and economists — but the scummiest low-life liars of all are the people who tell you Social Security and Medicare are running short of money and the “solution” is to cut benefits and/or increase taxes.
These people should be skinned alive, boiled and salted, after which painful things should be done to them.
They are paid by, and do the bidding of, the rich and powerful, to hurt the weak and powerless.
“Rich” is a comparative term. The Gap between the rich and the rest, is what makes the rich rich. Without the Gap, no one would be rich, and the wider the Gap, the richer they are.
So, it is a prime goal of the rich to widen the Gap by impoverishing the rest of us. And virtually all politicians, some writers, and some economists are only too happy to oblige the rich.
Who’s Ready for a 10% Cut to Their Social Security Benefits?
By Sean Williams, August 2, 2015
The Social Security program is designed to replace about 40% of a workers’ income.
In reality, though, nearly half of all unmarried elderly beneficiaries get 90% of more of their income from Social Security. The thought of tinkering with benefits is equally worrisome for baby boomers nearing or just entering retirement. Many were clobbered by the Great Recession, and a good chunk could be entering retirement with an inadequate amount of savings.
The Social Security program, however, isn’t in great shape. The Old-Age, Survivors and Disability Insurance Trust, or collectively the OASDI, is slated to burn through its remaining cash reserves by 2033.
If Congress can’t come to a long-term solution that involves raising additional revenue and/or cutting expenses, benefits for eligible beneficiaries will be cut by 23%.
If Social Security were a privately run program or a local government-run program, the above paragraph could be true. The program could “burn through cash reserves,” and the solution would be to”raise additional revenue or cut expenses and benefits.
But Social Security is a federally-run program, and unlike you and me and local governments, the federal government never can run short of dollars.
The author of the article, Sean Williams, is telling a great, big, fat lie, when he says, “If Congress can’t come to a long-term solution that involves raising additional revenue and/or cutting expenses, benefits for eligible beneficiaries will be cut by 23%.
Not that Congress won’t continue cutting benefits, as it already has been. But the point is, Congress doesn’t need to cut benefits.
In fact, even if FICA, the tax that supposedly funds Social Security, were cut to $0, Social Security could continue paying benefits forever — even increase benefits forever.
According to Republican presidential candidate Chris Christie, we need to make some pretty radical reforms to the entitlement program.
Christie’s recommendation to fix Social Security, like many before it, focuses on the coming generations to receive Social Security benefits and not on current retirees.
Thus, if you’re already receiving benefits, you can breathe a bit easier.
Yes, you can breathe easier, if you don’t give a damn about your children and grandchildren. Just sit back, and watch the politicians cut their benefits and increase their taxes.
Christie would like to see the full retirement age moved from age 67 to 69. He also wants to enact a raise to the minimum age at which retirees can claim benefits from age 62 to age 64.
It’s called the “work-until-you-drop (if you even can find a job at that age)” plan.
Christie’s proposal may coerce pre-retirees and Generation X to work longer, which makes sense given that we’re living longer than ever.
Sure it makes sense to the Party of the Rich. You are not rich, therefore you are a lazy good-for-nothing, who needs to be coerced to work and work and work. Heaven forbid you might enjoy a longer retirement.
In the eyes of the rich, only rich people are not lazy, so they deserve the enjoyment of a longer retirement. Not you.
Instead, you middle-class people, having been granted longer lives, are told you should be delighted to search for jobs and to labor those extra years. Strangely, most not-rich people believe it.
But Christie’s proposal also has adverse effects. It turns out that raising the retirement age could be very bad news for the nation’s poorest citizens who rely on Social Security income in their golden years.
But really, who cares about them, so long as the rich (courtesy of the right wing Supreme Court) legally are able to bribe politicians like Christie, to lie about Social Security?
As The Washington Post reports, lifetime Social Security benefits can often reflect a person’s socioeconomic status. The poorest Americans often lack access to adequate nutrition and healthcare, while the richest Americans have ample access to medical care and can make healthier food choices.
So, cutting Social Security benefits and Medicare benefits, while raising taxes, are exactly what the wealthiest nation on earth should be doing to your children and grandchildren. Right?
According to The Washington Post, which conducted an informal study last year that allowed online respondents to select which of 12 methods they’d support to fix Social Security (respondents could select all that appealed to them), boosting the earnings cap on the payroll tax proved to be by far the most popular fix.
Cut benefits across the board today (100%)
Raise the full retirement age (20%)
Freeze the purchasing power of benefits (95%)
Freeze benefits on a sliding scale (55%)
Change the cost-of-living adjustment (20%)
Do nothing (but cut benefits when the Trust Fund reserves are gone) (100%)
Increase the payroll tax on everyone today (100%)
Raise the earnings cap (30%)
Use the estate tax to tax health benefits (35%)
Transfer start-up costs to general revenues (100%)
Raise the return on assets by investing in the stock market (20%)
Do nothing (but raise taxes when the Trust Fund reserves are gone) (100%)
Could a survey be any phonier?
It provides 12 so-called “options,” all of which boil down to “cut benefits and/or increase taxes,” while leaving out the one true option: The federal government should pay for Social Security and Medicare. Period.
Here is what Sean Williams and all the politicians who want to cut benefits and increase taxes don’t tell you: FEDERAL TAXES DO NOT FUND FEDERAL SPENDING FICA doesn’t fund Social Security and Medicare.
President Roosevelt, who originated Social Security knew FICA was not necessary. He created FICA only to prevent politicians from eliminating the program, not to pay for the program.
fre are running out of money?
The answer: The rich don’t want the White House the Supreme Court and Congress to run out of money, but the rich do want Social Security to run out of money.
By pressing down on middle classes and the poor people’s income, the rich widen the Gap. They make themselves richer by comparison.
Whenever you hear any politician — Christie, Bush, Obama, Boehner et al — or read any article, saying that the Social Security “Trust Fund” is running short of dollars, know this: The speaker or writer is a stinking liar, who has been paid by the rich to take money from your children and grandchildren.
And pay no attention to phony claims that certain increases in FICA also will take money from the rich. The rich aren’t affected by a few dollars taken from salaries.
Many of the rich don’t even earn a salary (Have you ever wondered why FICA only is applied to salaries and not to capital gains?), A few dollars means nothing to the rich — though it can mean quite a lot to the poor and the middle.
Who is stealing your children’s Social Security and Medicare? The scummy, low-life politicians, journalists and economists — and you, if you believe their stinking lies.
Rodger Malcolm Mitchell
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.
THE RECESSION CLOCK
Vertical gray bars mark recessions.
As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.