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●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●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.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Everything in economics devolves to motive, and the motive is the Gap.
The “Occupy” movement will fail, because it is directionless, generally opposed to everything and in favor of nothing.
They should favor one goal: Narrowing the Gap between the rich and the rest, and in that effort, we offer them the Ten Steps to Prosperity:
The Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded free 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. Federally funded, 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. (Refer to this.)
8. Tax the very rich (the “.1%”) more, with higher, progressive tax rates on all their 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)
Initiating The Ten Steps sequentially will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
O.K., now that I have given the debt hawks heart attacks, let me assure you I am aware of the limit to deficit spending: It is inflation. So exactly where is that limit? No one knows, especially since for the past 40 years, inflation has not been related to deficit spending, but to oil prices. (Click here)
So my recommendation is to begin #1-#10, slowly and sequentially, today, and if/when inflation starts to occur, institute the first inflation-fighting program the Fed always uses: Raise interest rates. In the unlikely event that doesn’t do enough, begin to cut deficit spending.
We have total control over inflation, so there is no reason to cut today’s deficits for fear that some time in the unknown future, we may have inflation. We must feed the starving patient, now. Later, if ever he becomes fat, we always can cut back on his food.
By balancing interest rates and deficit spending, we can hold inflation at any level we choose, while accruing the benefits of increased money creation.
Rodger Malcolm Mitchell
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. The key equation in economics: Federal Deficits – Net Imports = Net Private Savings