●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.
●Cutting the deficit is the government’s method for taking dollars from the middle class and giving them to the rich.
●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.
There is one question that frightens President Obama most, and no, it isn’t, “Where is your birth certificate?”
Background: There has been a groundswell of dialog about the Platinum Coin Solution. Briefly, if you not yet heard, there is a law that allows the Secretary of the Treasury to mint a coin made of platinum (must be platinum), in any denomination he chooses.
The groundswell has become so great, the politicians no longer can pretend to ignore it. In fact, one Republican already is trying to pass a law against it.
The Secretary of the Treasury could, if he wished, mint a $100 trillion coin (at a cost of a few dollars), deposit the coin with the Federal Reserve Bank, and offset the phony federal debt for many years, or really, forever. No more debt ceiling. No more silly debt clocks.
And because this coin would not enter the economy, but merely be deposited with the FRB, in of itself, it would not cause inflation. It would end the “debt-must-be-reduced” craziness, and reveal the fact that the federal government has the unlimited power to pay any bills, any time.
The government could fund Medicare for every man, woman and child in America. It could pay living Social Security benefits. It could end the suicidal drive for austerity, that has destroyed economies all over the world — including ours.
So, here is the question Obama fears:
“Mr President, why the hell am I paying taxes when you can mint a $100 trillion dollar coin, pay all our bills and not cause inflation?”
Then, of course, that question would be followed with other questions:
Why did you increase my FICA payments?
Why did the government increase the qualifying age for Social Security?
Why the concern about Medicare “sustainability”?
Why does my state need to go broke paying for Medicaid?
Why not Medicare for everyone?
Why the limit on federal employees’ paychecks?
Why do you keep talking about the need for spending cuts?
Why do we need austerity, when it has failed everywhere in the world?
So why, Mr. President?
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