●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.
The EU continues to lie by using euphemisms like “structural reform,” “economic reform,” “bailout package” and “overhauling labor laws.” What these phrases really mean are “cut economic growth,” “destroy the middle- and lower-classes,” “go deeper into an unpayable debt” and “accelerate unemployment.”
First, here are recent examples of the lies:
Europe Tells Greece to Speed Up Economic Reform
By James Kanter | New York Times –
LUXEMBOURG — International officials told Greece on Monday night to accelerate the pace of economic reform in exchange for further financing from a stalled bailout package. Jean-Claude Juncker, the head of the Eurogroup of finance ministers, told a news conference that 89 so-called “prior actions” like overhauling labor and pension laws that were agreed to with Greece in March needed to be implemented, “at the latest,” by Oct. 18.
Translation: Greece, cut your own throat (specifically the throats of your lower and middle classes) and do it faster, with spending cuts and tax increases, so we can push you even deeper into debt with more loans.
Efforts by the Greek finance minister, Yannis Stournaras, to free up the next round of bailout loans from foreign lenders was high on the agenda of the monthly meeting of the finance ministers. Negotiations between Greece and the so-called troika of lenders over an austerity package of 13.5 billion euros ($17.6 billion), must be approved before additional bailout money can be unlocked.
Translation:Greece, your economy is starving. So give it less food or we won’t lend you food.
As expected, the case of another member state, Portugal, was far more straightforward. The ministers gave the green light for the next disbursement of rescue loans to Portugal, which negotiated an aid package of 78 billion euros last year. That decision effectively grants the government in Lisbon another year, until 2014, to bring its budget deficit to below 3 percent of output.
Translation: Portugal, we give you one more year to cut your GDP further, so we can continue lending you the euros you have no way to repay.
Earlier Monday, Germany sought to ward off talk of a bailout program for Spain. Spain is doing everything necessary to make structural reforms and “needs no aid program,” the German finance minister, Wolfgang Schäuble, told reporters.
Translation: Spain already is doing everything possible to save its wealthy bankers at the expense of its middle and lower classes, so we don’t need to lend them euros. Good job, Spain.
Officials from Spain, Ireland and Italy were cheered when E.U. leaders reached an agreement at a summit meeting on June 29 that committed the euro zone to allowing the direct recapitalization of banks, if moves were made to create a single European banking regulator under the aegis of the European Central Bank.
Translation: Your problem is not that you surrendered the single most valuable asset any nation can have: Monetary Sovereignty. Your problem is your banks (and thus your nations) don’t have one supreme, unelected czar, who will accelerate the destruction of your economies.
And now, for (at last) THE TRUTH:
Chancellor Angela Merkel had been hoping that her trip to Athens earlier this week would help demonstrate Germany’s solidarity with Greece as it struggles to overcome its debt crisis. Just two days later, however, leading economic institutes in Germany have darkened the mood considerably. The institutes presented their autumn economic forecast on Thursday, and cast doubt on whether Greece would be able to remain part of the euro.
“We believe that Greece cannot be saved,” said Joachim Scheide from the Kiel Institute for the World Economy, one of several top economic institutes tasked by the German government with examining the state of the country’s economy twice a year.
Oliver Holtemöller, of the Halle Institute for Economic Research, was also pessimistic at the Thursday press conference called to present the evaluation. He said it is unlikely that Greece will ever be able to free itself from its debt burden — and called for a new debt haircut for the country.
O.K., that almost was the truth. The real truth would have been:
“Let’s face it. Giving up our Monetary Sovereignty was giving up our freedom. It’s dooming us to endless unpayable debt and economic misery for our citizens (except for the richest ones, of course).
“The euro was our ill-considered attempt at unity, which has resulted in our being united — in poverty.
“If Greece leaves the euro, and readopts its own sovereign currency, it will be able to pay all its debts, past, present and future, while investing money to grow its economy.
“Within a couple years, Greece can be (if it handles its Monetary Sovereignty correctly) one of the wealthiest nations on the continent, while the rest of us keep laboring under the yoke of monetary non-sovereignty.”
Now that would be the real truth, but don’t hold your breath waiting for the EU to admit it.
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