●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.
You are familiar with the recording of Mitt Romney denigrating 47% of the population as a bunch of lazy, freeloaders. But that was only a small part of the Romney rant. You can read the entire transcript here.
Meanwhile, here are a few excerpts:
MITT ROMNEY: As I said in my remarks earlier, I see these two very different scenarios. One is– has America really powering the world economy with an extraordinary economy here, with China working with us, wanting to see stability in the world and– a very vibrant America with freedom and prosperity for the great bulk of the American people.
On the other hand, I really do see something like Europe. And I think that’s the path we’re on right now. So that’s why I wanna make sure that what little I’ll have left after the campaigns goes to my– (LAUGHTER) goes to my grandchildren.
Translation: “By some magic, which I will not reveal to you, I will make China work with me. I think we’re on the path to becoming Europe, because they have to cut deficits (austerity) and I want us to cut deficits (austerity), too.” So I’ll put us on the same path.
ROMNEY: My dad, you probably know, was– was the governor of Michigan and was the head of a car company, but he was born in Mexico. And– had he been born of Mexican parents I’d have a better shot of winning this, but he was– (LAUGHTER) unfortunately born of Americans living in Mexico. They’d lived there for a number of years. And I say that jokingly, but it’d be helpful to be Latino.
My dad never had the money or time to get a college degree.
Translation: Unlike you and me – that is, rich and white – the Latinos have everything handed to them. They are part of that 47% I’ll talk with you about – those people who just want to feed off us rich, white people. You know what I’m talking about (wink, wink).”
[Remember that line about his father coming from Mexico and being too poor to go to college. It will mean more, later.]
ROMNEY: Folks who don’t know Elizabeth Warren– she’s the woman who’s running for U.S. Senate in Massachusetts — who said that she’s Cherokee and has put on her application over the years that she’s Cherokee and Harvard put down that she’s one of their minority– faculty members. It turns out that at most she’s 1/32nd Cherokee. (LAUGH) And even that can’t be proven. So– at any event, I mean I could put down my dad was born in Mexico and leave it at that. (LAUGHTER)
Translation: (More wink, wink.) “I’ll insult the Latinos now, because you want to hear that, but later, I’ll tell you how I want the Latino vote.”
ROMNEY: (My wife’s family) got together as a family and said, “You know, to be successful in America you’ve gotta get an education.” And they couldn’t afford an education. And the kids and the parents said, “You know, if we all work and we all save we could afford to send one of us to college.” And they– they sent my wife’s dad. Can you imagine working every day, taking a couple of jobs and saving your money so that your brother could go to– I mean I would never do that for my brother. (LAUGHTER)
Translation: See how humble I am? I even tell you how selfish I am. I know how selfish you all are, so you surely you must love selfish people — like me.
ROMNEY: I look forward to getting America back on track and having people plan on bringing their their ideas and their dreams to this country. We need big dreamers, by the way.
I’m just we didn’t talk about immigration today, but gosh I’d like to bring in more legal immigrants that have skill and knowledge. I’d like to staple a green card to every PhD in the world and say, “Come to America. We want you here.” Instead we make it hard for people who get educated here or elsewhere to make this their home.
Unless, of course, you have no skill or experience, in which case you’re welcome to cross the border and stay here (LAUGH) the rest of your life.
Translation: “I come from poor, humble roots, but I don’t want any more poor, humble people coming here. I only want PhD’s, or people who are rich enough to afford college. And we should make an easier path to citizenship for those rich, educated people, but not for the rest, even though, as I now say, ‘My campaign is about the 100%.’”
MALE VOICE: The debates are gonna be coming and I hope at the right moment you can turn to President Obama, look at the American people and say, “If you vote to reelect President Obama you’re voting to bankrupt the United States.” I hope you keep that in your quiver, because that’s what’s gonna happen.
MITT ROMNEY: Yeah. Yeah. There’s– the former head of– Goldman Sachs, John Whitehead– was also the former head of the New York Federal Reserve and– and I met with him and he said, “As soon as the Fed stops buying all the debt that we’re issuing–” which they’ve been doing. The Feds buy like 3/4 of the debt that America issues.
He said, “Once– once that over– that’s over,” he said, “we’re gonna have a failed Treasury auction. Interest rates are gonna have to go up. You know, we’re we’re living in this borrowed– fantasy world where– where the government keeps on borrowing money.” You know, we– we borrow this extra trillion a year. We wonder, “Well, who’s– who’s loaning against the Treasury? The Chinese aren’t loaning to us anymore. The Russians aren’t loaning it to us anymore. So who’s giving us a trillion?“
Translation: “The Fed is buying all the debt we’re issuing. So where are they getting the money to buy that debt? Hmmm. . . wait, I know.”
ROMNEY: And the answer is we’re just making it up. The Federal Reserve is– is just taking it and saying, “Here, we’re giving–” it’s just made up money. And– and this– this does not augur well for our economic future. No. I mean some of these things are complex enough it’s not easy for people to understand, but your– your point of saying bankruptcy usually concentrates the money.
Translation: “Don’t tell anyone this, but I actually do understand and agree with Monetary Sovereignty. The federal government just makes up dollars. It doesn’t need to tax. It doesn’t need to borrow, especially since the Fed buys nearly all the debt.
However, I don’t want you to know my ‘concern’ about deficits is a bunch of hogwash. As usual, I’ll tell you only what you want to hear, and of course, take both sides of every issue.
MITT ROMNEY: . . . if you take the total national debt and the unfunded liabilities of Medicare, Social Security and Medicaid, the amount of debt plus unfunded liabilities per household in America is $520,000. Per household. Ten, 12 times their income. And even though we’re not gonna be writing a check for that amount per household, they’re gonna be paying the interest on that– it’s extraordinary to think that tax rates– someone calculated what would happen if we don’t change Medicare or Social Security, the tax rate– you know what the payroll tax is now? It’s 15.3%. If we don’t change those programs that tax rate will have to ultimately rise to 44%.
Translation: “We have to cut Medicare and Social Security – two programs that benefit the lower 99% most. And even though I just said that the federal government is just making up money, we still have to raise FICA to pay for Medicare and Social Security. Don’t ask me what happens to that made up money.
The payroll tax. Then there’s the income tax on top, which the president wants to take to 40%. Then there’s estate tax in most states and– sales tax and so forth. You end up having to take 100% of people’s income. And yet the president, three and a half years in, won’t talk about reforming Social Security or Medicare.
Translation: “Of course, I only pay 14%, and I got it that high by temporarily not claiming a couple million dollar deduction for charity. After the election, I send in an adjust return, and get my rate down to 10%. That’s almost 100%, isn’t it?
‘Reforming’ Social Security and Medicare is my euphemism for cutting the hell out of them. But I never will admit that’s what I want to do.”
ROMNEY: We should have been aggressively supporting the voice of the dissent in Iran. And when there was an effort towards revolution there we should have been aggressively supporting it. And, finally, we should have made it clear, at least by now, that we have military plans to potentially remove their– their nuclear capabilities.
Translation: “As always, I have no plan for sending soldiers into Iran, without killing thousands of Americans, but I like to sound tough.”
ROMNEY: That doesn’t mean we actually pull the trigger, but it means that we communicate to them that we’re ready to– to do so. And that it is unacceptable to America to have– a nuclear Iran. Instead, what this administration has done is communicate to the Iranians that we’re more worried about Israel attacking them than we are about them becoming nuclear.
Translation: “Threaten them, but don’t actually do anything, so the next time we threaten, they’ll know we’re just bluffing. Who says I don’t have a plan?”
MITT ROMNEY: I saw Dr. Kissinger. I said to him– “How are we perceived around the world?” And he said, “One word, veek.” (LAUGHTER) We are weak. And– and that’s has this president is perceived– by our friends and– and– and– and unfortunately by our foes.
And it’s no wonder that Kim Jong-on– the new leader of North Korea, announces a long range missile test only a week after he said he wouldn’t. Because it’s like, “What’s this president gonna do about it?” You know, if you can’t act, why don’t threaten. Please.
Translation: “Uh, I forgot that 30 seconds ago I said, ‘That doesn’t mean we actually pull the trigger, but it means that we communicate to them that we’re ready to do so.’ And now I say, ‘. . . if you can’t act, don’t threaten. Please.’ But so what? I always take both sides of every issue – so I don’t miss anyone.
“Bottom line: My father succeeded, despite coming here poor and without college, but we don’t want to let in any more of those people. I have a plan to make China work with me, but I won’t tell you what it is. Though Latinos are among our poorer people, they get everything handed to them. But I’m for 100% of Americans.
The government has the unlimited ability to create dollars, and the Fed is buying all our debt, but the deficit and debt are unsustainable. I plan to cut Medicare and Social Security, while denying I plan to cut Medicare and Social Security. We should threaten Iran, but do nothing, even though if you can’t act, don’t threaten.
And can you imagine, some people say I don’t have any specific plans? Wrong. I have one, very specific plan: Tell you what you want to hear, so you’ll give me money and vote for me.
Pretty good plan, huh?”
The second part of the tape will be discussed shortly.
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