●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.
Readers of this blog know:
1. The U.S. became Monetarily Sovereign on August 15, 1971. Unlike the states and local governments (and the euro nations), the U.S. has the unlimited ability to create its sovereign currency, the dollar. It never can run short of dollars. It never can be “broke.” It does not need to ask anyone – not you, not me, not China – for dollars.
2. Our children and grandchildren never will pay the federal debt, which is nothing more than the total of dollars in specific savings accounts at the Federal Reserve bank. It is completely unlike personal debt, and is not burden whatsoever on the government or on the economy.
3. In fact, the federal deficit is a surplus for the economy, which is why The federal deficit is absolutely necessary for economic growth. It cannot cause inflation until we reach full employment. Even then, the Fed cures inflation by raising interest rates.
4. Thus, the debt “crisis” is a fraud, made up by politicians to please the upper .1% income group. Why? To cut the debt, the government must cut benefits for the middle and lower classes – Medicare, Social Security, Medicaid, food stamps, unemployment etc., while raising FICA, the worst tax ever invented to hurt working people.
The upper .1% continually wants to increase the income gap between the rich and the rest, and the easiest way to do that is to take money from the rest. So, to cut the deficit, they bribe politicians via campaign contributions, which our pro-wealth Supreme Court has made even easier.
The Democrats and Republicans invented the debt crisis, in order to make the only possible “solution:” Starve the middle and lower classes, thus increasing the gap. You have been sold a lie.
That is the background to the following article:
By Ed O’Keefe and Lori Montgomery, Updated: Friday, December 21,
House Speaker John A. Boehner (R-Ohio) sought to shift responsibility Friday to President Obama and the Democratic-controlled Senate to reach an agreement to avert a series of spending cuts and tax hikes after his fellow Republicans delivered a stunning rebuke to Boehner’s own plan to raise taxes on those making more than $1 million.
Boehner vowed to continue negotiating with the White House to avert the “fiscal cliff.” He said his plan failed because many of his fellow Republicans simply did not want to be perceived to be raising any taxes.
Translation: “Obama already compromised by offering to raise taxes only on $1 million earners. That, of course, would require additional spending cuts, which will put more burden on the lower classes. But that isn’t good enough for us. We won’t raise any taxes. So, the only possible ‘solution to the debt crisis’ is to slash benefits to the 99.9% — exactly what the .1% wants.”
Boehner said he continues to favor a grand bargain with the president that would set the stage for a dramatic overhaul of the tax code and significant changes in federal entitlement programs./i>
Translation: “When we say, ‘Overhaul of the tax code,’ we really mean, “broaden the base,” i.e make more of you poor people pay more. ‘Changes in entitlement programs’ is our sneak phrase for ‘gut Social Security, Medicare, Medicaid, food stamps, unemployment. etc.’”
Boehner noted that the House has already passed a bill embodying the Republican position that all Americans should be spared a tax increase in January.
Translation: “Of course, I mean all rich Amerians should be spared a tax increase.”
Asked what went wrong with Plan B, Boehner said: “We had a number of our members who just really didn’t want to be perceived as having raised taxes.”>
Translation: “We had a number of our members who receive so much money from the Kochs et al, they are not allowed to vote for increase taxes on the rich.”
.“It’s too bad Speaker Boehner wasted a week on this futile political stunt — and that’s all we can call it,” Majority Leader Harry M. Reid (D-Nev.) said. “But at least House Republicans have gotten the message loud and clear: A comprehensive solution to the looming fiscal cliff will need to be a bipartisan solution. No comprehensive agreement can pass either chamber without Democratic and Republican votes.”
Translation: “We have brainwashed the American public into believing a bipartisan solution – any bipartisan solution – is good. So eventually, the Democrats will pretend to compromise, and do what they have said they were going to do all along: Cut benefits for social programs.”
“Instead of making hard choices and compromising, as President Obama has been willing to do, the speaker retreated to his corner and resorted to political stunts,” Reid said later.
Translation: “Obama, always ready to compromise, will sell out the people who elected him.”
Senate Minority Leader Mitch McConnell (R-Ky.) said. “Democrats may be popping champagne corks today about bringing down Plan B, but all their effort to do so yesterday won’t protect a single taxpayer from a massive tax hike in just a few weeks.”
Translation: “Every single one of us Republicans voted for the fiscal cliff, but now we want the Democrats to get us out of it.”
If Obama and Congress fail to reach a deal to avoid the fiscal cliff, many Americans would feel the pain, with less money in their paychecks in the first week of the New Year. In the second week of January, about 2 million jobless Americans who have been relying on federal unemployment insurance would stop receiving checks. By around the middle of the month, hundreds of thousands of doctors who accept Medicare, the health-insurance program for the elderly, would see their reimbursement rates automatically slashed by about 30 percent.
Translation: “The fiscal cliff is nothing more than deficit reduction, also known as “austerity.” It is identical with the austerity that is destroying the euro nations. The President’s and Congress’s solution to austerity is – get this – austerity. They not only want economy-destroying deficit reduction, but they want the 99.9% income group to pay the bill.”
It’s why the .1% have contributed all those millions the Supreme Court said were legal.
“The President will work with Congress to get this done and we are hopeful that we will be able to find a bipartisan solution quickly that protects the middle class and our economy.”
Translation: “I will screw you, but I will do it in a bipartisan way, which will make you happy. And I will convince you the screwing was necessary. That will be my legacy.”
My place in history is assured.
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