●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.
US economy shifted into reverse in late 2012, partly because of sharp gov’t spending cuts
By Associated Press, Updated: Wednesday, January 30
A plunge in defense spending helped push the economy into negative territory for the first time since mid-2009. The contraction in the October-December quarter came in at an annual rate of 0.1 percent, according to a government estimate released Wednesday.
What!! You mean federal spending cuts hurt the economy, especially hurting the lower 99% income groups and widening the gap between the 1% and the 99%??? Why didn’t the politicians and the media — all paid by the upper 1% income group — tell us that beforehand?
Deep spending cuts are likely, lawmakers say, with no deal on sequester in sight
By Lori Montgomery, Published: January 29
Less than a month after averting one fiscal crisis, Washington began bracing Tuesday for another, as lawmakers in both parties predicted that deep, across-the-board spending cuts would probably hit the Pentagon and other federal agencies on March 1.
An array of proposals are in the works to delay or replace the cuts. But party leaders say they see no clear path to compromise, particularly given a growing sentiment among Republicans to pocket the cuts and move on to larger battles over health and retirement spending.
What!! You mean Congress, which is paid by the 1% to cut benefits to the 99%, and widen the gap between the 1% and the 99%, will not prevent the spending cuts that will hurt the economy???
Some things are hard to believe — unless you unless you understand the motive.
Well, now that Congress and the President see unquestionable proof that austerity hurts the economy, surely they won’t let those spending cuts happen. Right?
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