●The more budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which leads to civil disorder.
●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.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
Why the Polish people are smarter than the Polish government, the European Union (EU) and the International Monetary Fund (IMF):
Poland was smart enough to retain the single, most valuable asset any nation can have: its Monetary Sovereignty. Rather than adopting the euro, over which it would have no control, Poland retained the złoty, over which it has total control.
It can create them at will, pay any bill of any size, and change their value whenever needed. Poland is sovereign over the złoty, just as the U.S. is sovereign over the dollar. By contrast, the euro nations use an “alien” currency, over which they have no control, which is the fundamental reason why they are in financial trouble.
Global Property Guide
Feb 27, 2012
Poland, the Exceptional East European?
With Europe in meltdown, is Poland an exception? Europe’s sixth-largest economy has strong domestic demand, and has not yet adopted the euro: so it was able to devalue the zloty to maintain competitiveness. Poland’s economy grew by 3.8% in 2011, and is expected to grow by 2.5% in 2012 and 2.5% in 2013 (OECD forecast November 2011).
While most of Europe is struggling to avoid a double-dip recession, the Polish economy is growing. Its depreciated currency makes its products attractive to buyers.
Workers are moving back to Poland, according to recent OCDE data. Unemployment was 9.6% in 2011, and is expected to rise to 9.9% in 2012, but this is lower than in many European countries. Migration dynamics are a fundamental demand driver for urban housing markets, particularly for urban areas such as Warsaw, Krakow and Wroctaw characterized by significant in-migration rates.
Poland’s relatively strong economic position is highlighted by Bloomberg, which calculates that Polish government bonds provide a better risk-adjusted return than German Bunds and US Treasuries.
Attention: Polish government: Your “relatively strong economic position” comes from your being MONETARILY SOVEREIGN. You can control your money supply. So, if it isn’t broken, don’t fix it.
Conditions of Poland’s accession to the European Union oblige the country to eventually adopt the euro, though not at any specific date and only after Poland meets the necessary stability criteria. Serious discussions of joining the Eurozone have ensued.
However, article 227 of the Constitution of the Republic of Poland will need to be amended first, so it seems unlikely that Poland will adopt the Euro before 2019. Public opinion research by CBOS from March 2011 shows that 60% of Poles are against changing their currency. Only 32% of Poles want to adopt the Euro, compared to 41% in April 2010
Let’s see now: Our monetarily non-sovereign euro neighbors are in the toilet. We Poles are Monetarily Sovereign over our currency, the złoty, and are in a “relatively strong economic position.” So what shall we do? Shall we give up the złoty, surrender our Monetary Sovereignty and join the euro nations by adopting their alien currency? Hmmm. . .
Thousands of Poles protest pro-market reforms
By VANESSA GERA
Associated Press / September 29, 2012
WARSAW, Poland (AP) — Thousands of Poles blew horns, prayed and waved flags in downtown Warsaw on Saturday to show their anger over a new law which will gradually raise the retirement age to 67 for all Poles from 60 for women and 65 for men.
Dubbed ‘‘Wake Up, Poland,’’ the protest is an expression of the deep anxieties gripping many Poles as the government tries to lower state debt by embracing pro-market reforms that are weakening the social safety net.
Police had no estimate yet for the number of protesters, but private broadcaster TVN24 said tens of thousands turned out.
Quick summary: A Monetarily Sovereign nation has the unlimited ability to pay its bills. Nevertheless, it thinks its deficit is unsustainable, so it decides to take money from its citizens (who need money) and give it to the government (which doesn’t need money, because it creates money.) The government gradually raises the retirement age to lower state debt, and it weakens the social safety net.
Apparently, the Polish government (like the U.S. government) doesn’t realize it is Monetarily Sovereign, so it acts like a nation already stuck with the euro.
The Polish people probably don’t understand Monetary Sovereignty either, but they know enough not to want the euro and the cuts in social services that monetarily non-sovereign (i.e. euro) nations are forced into. This says the Polish people are smarter than the Polish government, the EU and the IMF — and the U.S. government, for that matter.
It seems they also are smarter than the American people, who continue to buy into the absolute nonsense (promulgated by the upper 1% income group) that the U.S. federal deficit and debt are too high, when in fact, they are too low.
If Poland resists the siren song of the failed euro, the failed EU and the failed IMF, and begins to use its Monetary Sovereignty, rather than act like a euro nation, it soon will be the strongest nation in Europe. But that’s a big “IF.”
Rodger Malcolm Mitchell
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%
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. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports