●The more federal 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 penalty for ignorance is slavery.
In discussing the “fiscal cliff, the Committee for a Responsible Federal Budget said:
Some commentators have advocated for a position of going over the fiscal cliff to leverage a better compromise. Paul Krugman called for the recently reelected President Obama to “not make a deal.” Matt Yglesias and others have also played down the harm from the cliff, arguing that it mostly affects the rich, sparing the poor.
But this is far from the truth. The poor would see a large tax increase, another recession and rising unemployment made worse by the expiration of extended unemployment benefits as a part of the cliff, and cuts to many income security and education programs as a part of sequestration.
The “fiscal cliff” is nothing more than the projected negative result from a group of deficit cuts. But, here is the Committee for a Responsible Federal Budget, as wild-ass, deficit-cut, debt-hawk organization as you ever will find, eloquently expressing why deficit cuts are a bad idea.
Yes, the poor would see a large tax increase.
Yes, we would have another recession.
Yes, unemployment would be made worse.
Yes, there would be cuts to income security (Social Security et al) and education programs.
The CRFB position seems to be: “Let’s not do it — but let’s do it. Only slower. Let’s make it a fiscal death spiral – a slow death spiral – rather than a cliff. Rather than taking money out of the economy in big chunks, lets take it out in lots and lots of small chunks.
“Rather than killing the economy with one stab in the heart, let’s make the economy die the death of a thousand cuts.”
This is what the populace has been brainwashed into believing. So, this is what the populace wants. And, this is what the populace will get.
Let the whining begin.
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