–The world is dying despite the single, most powerful invention of human ingenuity Monday, Aug 18 2014 

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●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 ultimately 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.
●Everything in economics devolves to motive,
and the motive is the gap.

Levels of CO2 have been rising, the polar bears are suffering, the forests are disappearing and farms are dying from drought, as we humans continue to foul our own nest.

What is the commonality among rising CO2, disappearing forests, suffering bears and dying farms? Money.

CO2 is rising because not enough money has been invested in green energy. The resultant global warming impacts polar bears and thousands of other species. Forests are disappearing because not enough money has been invested in sustainable forestry.

And our farms are dying from drought — for lack of money.

Washington Post
Drier than the Dust Bowl: waiting for relief in rural America
As wide swaths of rural America suffer through historic drought, they’re being left further behind.
By Lydia DePillis July 21

LAS ANIMAS, Colo. — As rural America wilts, this is how those left working its powder-dry land get by: At the appointed hour, Chuck Pointon turns the head gate at the Fort Lyon Canal, sending water sluicing through ditches bordering the fields. He tracks up and down the rows, adjusting pipes and valves to make sure the water is flowing just right. Almost as soon as he’s got it working, it’s another field’s turn, and he lifts the dams to send water in a different direction.

And in an age of automation, the Pointons have no machines to help. Without a sprinkler system — which the Pointons couldn’t afford to install, even if they could spare the extra land it takes up — they rely on gravity to spread it across the fields.

There’s been so little moisture lately, though, that gravity isn’t doing its job. The water doesn’t make it from the furrow to the seed bed.

This drought is worse and longer-lasting than anyone here has ever seen — so punishing that it’s pushing people like the Pointons, whose families have survived on the land for decades, to the brink of giving up. Less rain fell in the 42 months before May of last year than in the stretch in the mid-1930s now called the Dust Bowl.

The lingering dryness, combined with the loss of access to the irrigation systems that used to make up for it, is one of the biggest forces dragging America’s rural areas further behind its dynamic cities: While the poverty rate stabilized for metropolitan areas in 2012, it kept growing on farms and in tiny towns, ticking up to 17.7 percent.

Rural counties lost people overall — rather than just as a percentage of the U.S. population — for the first time ever from 2010 to 2012. With climate change shortening the wet times and prolonging the dry ones on into the future, it’s unclear that they’ll ever truly recover.

This year, the farm has weathered dust storms the likes of which nobody had seen before: high-velocity clouds of dirt and debris that coated everything in muck. “The dirt flows in, and it’s on your walls, and in your car. You can’t do anything. You’re in the house,” Anita shudders. “It’s horrible.”

Even the small grove of planted juniper, elm and ash trees that once broke the wind around the Watsons’ house has largely died off, felled by the insects and diseases that proliferate when water disappears.

Is there a solution for people like the Pointons? Here’s one:

Desalination Is Back on the Table for Santa Barbara Water Supply

Santa Barbara, Calif. is taking measures to keep clean water available, even if it costs upwards of $30 million.

In 1991, Santa Barbara began construction on a local desalination plant as a result of a severe drought that ended soon thereafter. It was intended to clean seawater and turn it into usable, virtually unlimited water for locals and farmers, but the project was halted once the rain started to fall. Now, in the wake of the current stage three drought emergency, the desalination plant is back underway as a last resort response.

Santa Barbara officials said, “Due to the substantial cost of facility reactivation, a final decision will be delayed as long as reasonably possible.

Desalination expert Peter MacLaggan, the senior VP of Poseidon Water (said): “This is probably typical of what a large desal plant would require — about a billion dollars, and about 10 years if not longer.”

So while desalination might be the theoretical answer to the drought, when it comes to execution, the legislators don’t seem driven to get the project started until there’s no other option.

What holds back desalination? Lack of money.

Here’s another solution:

Drip irrigation may help achieve water conservation by reducing evaporation and deep drainage when compared to other types of irrigation such as flood or overhead sprinklers since water can be more precisely applied to the plant roots.

Pulsed irrigation is sometimes used to decrease the amount of water delivered to the plant at any one time, thus reducing runoff or deep percolation. Pulsed systems are typically expensive and require extensive maintenance. Therefore, the latest efforts by emitter manufacturers are focused toward developing new technologies that deliver irrigation water at ultra-low flow rates.

But drip irrigation requires: Money. Here’s yet another solution:

How to Grow Food in the Middle of a Desert Using Seawater

The Sahara Forest Project wants to prove we can green the desert, turning barren land into oases of cucumbers and melons. And the water? It’ll come from the sea.

The unusual idea is made possible by greenhouses, but not greenhouses as you know them. Instead of trapping heat, the Sahara Forest Project’s greenhouses are cool and moist. Here’s how Science described the pilot facility in the Qatar last year:

At one end, salt water is trickled over a gridlike curtain so that the prevailing wind blows the resulting cool, moist air over the plants inside.

This cooling effect allowed the Qatar facility to grow three crops per year, even in the scorching summer. At the other end of the greenhouse is a network of pipes with cold seawater running through them. Some of the moisture in the air condenses on the pipes and is collected, providing a source of fresh water.

Solar panels generate electricity for the pump systems, and excess electricity can go toward desalination of additional seawater.

Of course, this requires money.

There are other potential sources of water:

The parched planet: Water on tap
Researchers are exploring unconventional sources of fresh water to quench the globe’s growing thirst.

Some (nations) are experimenting with recycling waste water for agriculture and other uses.

Last winter, almost no rain fell in Israel. In the past, such a drought would have caused severe problems. But thanks to the seawater desalination plants that Israel has built over the past decade, the country’s taps did not run dry.

Waterworks known as qanats, invented by Persian engineers more than 2,000 years ago, are tunnels that carry groundwater from high elevations down to dry valleys and plains; some ancient systems are still in use in Iran and parts of the Arabian Peninsula.

Fog collection is catching on in seasonally dry regions that lack other sources of fresh water. The first simple mesh panels were built in the 1960s in northern Chile. Today, 35 countries are using the technique, particularly along the Pacific coast of South and Central America, in the Atlas Mountains in Morocco and on the high plateaux of Eritrea and Nepal.

All these efforts, and many others, require the most easily obtained asset imaginable: Money. The U.S. government creates this asset at the touch of a computer key.

If Monetarily Sovereign governments had the will, they would create the money that would pay to reduce CO2 emissions, slow or reverse global warming, revitalize the forests, save the polar bears and other species, green the Pointon farm and save the world.

Instead, the world is dying under our feet and on our watch. The solution to so many problems is money . . .

. . . and acknowledging Monetary Sovereignty, the single, most powerful invention of human ingenuity.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)

9. Federal ownership of all banks (Click here)


10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

—–

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

–It’s hard to remember when one wishes to forget Saturday, Aug 16 2014 

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●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 ultimately 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.
●Everything in economics devolves to motive,
and the motive is the gap.

There are two sides to every argument, and this post will present the one side that seems to be absent from the street protests in Europe and America.

The other side is free to argue its logical and factual points, and we’ll print them, but please, no swearing or insults:

Forget that Hamas aims its rockets at civilian areas.

Forget that Hamas intentionally places its citizens in harms way, by storing armaments in schools and hospitals, and encouraging people to remain in targeted areas.

Forget that Hamas also fires rockets from civilian areas in an attempt to encourage return fire that will kill citizens.

Forget that, contrary to popular wisdom, all of Gaza is not crowded with civilians, but rather that there are many acres of open areas from which rockets could be fired — but Hamas prefers to use their civilians as human shields, and even encourages their citizens to stay in dangerous areas.

Forget that Hamas fighters look exactly like Gazan civilians, there being no uniforms to differentiate them in street fighting.

Forget that Israel, alone among all nations, actually has tried to limit civilian casualties, and even warned civilians of coming raids. Who does that?

Forget that every war in world history has killed many, many civilians. Consider WWI, WWII, Korea, Vietnam, and all the civil wars in the middle east, all of which involved the deaths of innocents, yet Israel alone is criticized for wartime fatalities.

Forget that Palestinian suicide bombers intentionally murdered Israeli civilians, and only a wall was able to prevent more murders. Where were the street protests in Western nations?

Forget that the so-called “blockade” of Gaza applies only to weapons, and that Israel, in a humanitarian gesture, supplies Gaza with electricity, water and water pumps, gas, food, medicine, and all non-military items, much of which has not been paid for by Gaza.

Forget that “trading Gazan land for peace” did not bring Israel any more peace — in fact it brought less, a launching platform for rockets at Israel — and that not one nation on earth is willing to guarantee Israel that providing Palestinians with more Left Bank land would bring peace to Israel.

Forget that the misery in Gaza has been caused by Hamas, which used the millions of dollars worth of assets it has been given to build a war machine, not to help the people.

Forget those expensive tunnels made specifically to attack Israel, and to kidnap Israeli citizens, so to trade them for terrorists.

Forget that Hamas has been judged to be a terrorist organization, and fighting terrorists is every nation’s obligation.

Forget that Israel accepted a cease fire, which Hamas rejected and continued to fire rockets into Israel.

Forget that Israel repeatedly has been attacked by Arab and Muslim nations — populations that outnumber Israel 1000 to 1 — again and again and again.

Forget that Israel owns a minuscule sliver of land compared to the millions of acres owned by Arab nations, yet none of these nations has volunteered any of that land to the Palestinians.

Forget that it is impossible to negotiate with someone who denies your right to exist.

Forget that Hadassah hospital, the best hospital in the middle east, paid for by Jews, has many non-Jewish patients, nurses, doctors and other employees– including Arabs.

Forget that Jews historically have been discriminated against, tortured and murdered in Arab and Muslim countries.

Forget that Jews settled Palestine more than 3,000 years ago, and have more claim to that land than any other religion.

Forget that the borders of almost every nation on earth (including America) were determined in wars, yet there is no call for these nations to “return” any land.

Forget that as a result of the “Arab Spring,” hundreds of thousands of Arabs have been killed – by other Arabs — yet there are no protests in Western countries.

Forget that Hamas not only kills Jews, but also kills Christians, while Christians live in peace, in Israel.

Forget all those things, because after all Israel is judged on a different standard from any other nation on earth.

Why Israel is judged on a different standard from any other nation on earth?

Hmmm . . . Pretty obvious, isn’t it?

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)

9. Federal ownership of all banks (Click here)


10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

—–

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

The excuse to be cruel to children and to widen the gap: The mythical budget. Friday, Aug 15 2014 

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●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 ultimately 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.
●Everything in economics devolves to motive, and the motive is the gap.
===================================================================================

One part of the Big Lie is the myth that we federal taxpayers pay for federal spending. We don’t.

The U.S. government, being Monetarily Sovereign has the unlimited ability to create its sovereign currency, the dollar. So it can pay any bill of any size, without tax dollars.

If all federal taxes fell to $0 or rose to $999 trillion, neither event would affect the federal government’s ability to pay all its bills.

Both political parties, and especially the right-wing, use the myth to justify increasing taxes on, and reducing benefits for, the lower 99.9% income/wealth/power group. (FICA increases and Social Security cuts are examples.)

Even children are fair game for the “compassionate right-wing” Washington Times:

Washington Times
Illegal immigrant children get first-class treatment at taxpayers’ expense
Special care for border surge youths at shelters stretches federal budget

Oh woe! Treating children with kindness stretches a non-existent “limit” to federal spending.

From culturally sensitive music to special meals for the lactose intolerant, the organizations the federal government is paying to house and care for the children who have surged across the border illegally are taking pains to make sure they are as comfortable as possible.

What!? Special meals for lactose intolerant children? Outrageous! Next thing you know, we’ll give them special medicines for their illnesses!

Dietitians scrutinize the menus each day to make sure they include enough whole grains but not whole milk. Counselors offer life skills classes in Spanish, and intensive English language training, including use of the Rosetta Stone program. Doctors and dentists treat the children at taxpayers’ expense — often the first medical care of the children’s lives.

Well this certainly is ridiculous: Making sure the children receive a healthful diet! And how are we expected to persecute them for not knowing English, if we teach them English??

And giving them medical treatment? Oh, what will those “libs” think of next?

Children are guaranteed the right to wear their own clothes, to have a private place to store belongings, to have guests, to send and receive uncensored mail, and to have phone privileges.

This is the last straw. Yes, we know these children seek asylum from horrifying, often deadly circumstances, but actually treating them like human beings? That’s going too far.

Documents from the program give a glimpse of the breadth and scope of the effort, which is eating up an ever-larger portion of the Health and Human Services Department’s budget, jumping from $305.9 million last year to $671.3 million so far in fiscal year 2014.

Do you wonder where that extra $366 million came from? Not from taxes or from taxpayers. The federal government simply created it, exactly the same way it creates every other federal dollar — the same way it created the first dollar in 1792.

(No one could pay taxes without the federal government first creating dollars, and to get to the point we are today, trillions more dollars needed to be created than taxes paid.)

And where do those dollars go?

Federal contracting records show that the David and Margaret Youth and Family Services, of La Verne, California, collected more than $3 million this year from HHS to care for the unaccompanied alien children.

Yes, the money goes to private businesses, that provide jobs to people in the communities in which the children are housed.

So bottom line, all the fake outrage about giving these homeless immigrant children “special care” merely is an extension of the Big Lie — the ongoing effort to widen the gap between the rich and the rest. The rich simply don’t want dollars going to the not rich.

It’s disgraceful that the rich continue to oppress the rest of us, with unnecessary taxes and cuts in social programs. But to extend that persecution all the way down to helpless children, really is beyond the pale.

Is this the America of which we are so proud? Is this what we will elect next year?

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)

9. Federal ownership of all banks (Click here)


10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

—–

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

Two fundamentals in the news: Monetary Sovereignty & the Gap Thursday, Aug 14 2014 

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●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 ultimately 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.
●Everything in economics devolves to motive, and the motive is the gap.

Readers of this blog have read about two fundamental beliefs expressed here:

1. A monetarily non-sovereign government requires net infusions of money from outside its borders, in order to survive and grow long term.

2. The single greatest problem facing the world’s economies is the growing Gap between the rich and the rest. (“Rich” meaning money, wealth and power)

Here are two articles referring to those beliefs:

1. Monetarily non-sovereign governments cannot control the supply of their sovereign currency, because they have no sovereign currency.

The U.S. government and the governments of Canada, China, Australia, Japan et al are Monetarily Sovereign. Being sovereign, they have the unlimited ability to create their own sovereign currencies.

The U.S. never can run short of money with which to pay its bills.

Even if all federal taxes fell to $0 or rose to $999 trillion, neither event would affect the U.S. government’s ability to spend.

By contrast, the governments of Illinois, Cook County, Chicago and the euro nations are monetarily non-sovereign. They have no sovereign currencies. They cannot create money to pay their bills. They can and do run short of money.

Eurozone GDP fails to grow in Q2

The eurozone economy stalled last quarter after 12 months of weak growth, underscoring concerns that the region is mired in a deep rut of high joblessness and weak consumer prices that could worsen amid tension in Ukraine and the Middle East.

Gross domestic product in the 18-member currency bloc was flat in the second quarter compared with the first, (with) 0.2 per cent growth in annualised terms, down from the first quarter’s 0.8 per cent pace. European equity markets fell and safe-haven government bond markets rallied early Thursday as national figures trickled out in advance of the region-wide figures.

The weak recovery leaves the eurozone lagging other advanced economies such as the US and the UK, which have experienced firmer, albeit uneven, expansions. Those economies have recouped the output lost in the aftermath of the global financial crisis in 2008 and 2009.

The eurozone has yet to do so and remains 2.4 per cent below its pre-crisis peak, leaving it vulnerable to outside shocks from Ukraine, Russia and elsewhere that could tip it back into recession.

Because the euro nations voluntarily surrendered their former sovereign currencies, they now cannot create money. Their economic growth demands that they all have more exports than imports — a practical impossibility. They have no way to add money to their economies and to lift themselves out of recession.

The report will likely put added pressure on the European Central Bank (ECB) to do more to spur growth and boost inflation, which at 0.4 per cent is far below the bank’s target of just under 2 per cent. In June, the ECB cut its key interest rates and introduced a new program of cheap loans to banks that are intended to be passed on to businesses.

The ECB’s approach to money shortages is to lend money. But loans must be repaid, and monetarily non-sovereign governments have no ability to make repayment. The loans merely drive the nations deeper into debt. (Visualize the result of lending money to a person who never will have income.)

France’s finance minister Michel Sapin wrote: “The truth is that, as a direct consequence of sluggish growth and insufficient inflation, France will not meet its public deficit target this year despite a complete control of spending,”

The key words are, “deficit target” and “control of spending.” A deficit target (i.e. a reduced deficit target) requires increased taxes and/or reduced government spending — both of which are recessionary.

Gross Domestic Product = Government Spending + Non-government spending + Net Exports

But taxes reduce non-government spending, so by formula, reduced deficits always must reduce GDP (barring increases in Net Exports). So the fixation on deficit reductions absolutely, positively must be recessionary.

The US returned to strong growth in the second quarter after a disappointing, weather-induced contraction during first three months of the year, while China has resorted to a variety of stimulus measures to shore up flagging growth, registering a pick-up in its year-to-year expansion to 7.5 per cent in the second quarter from 7.4 per cent in the first.

The U.S. and China, being Monetarily Sovereign have the unlimited ability to stimulate their economies (though even in the U.S. there is a fixation on deficits — an unnecessary fixation — that has slowed the recovery.)

2. The Gap between the rich and the rest

Jobs coming back post-recession, but with much lower pay, study says,

Chicago Tribune, 8/12/14

The U.S. has regained the 8.7 million jobs lost in the recession, but the average wage has dropped 23 percent, according to a U.S. Conference of Mayors study released today.

The report, “U.S. Metro Economies: Income and Wage Gaps Across the U.S.,” also found a widening income gap between the rich and poor, with the highest earning 20 percent of households gaining the most.

“While the economy is picking up steam, income inequality and wage gaps are an alarming trend,” said Kevin Johnson, conference president and mayor of Sacramento, Calif. The organization expects the trend to continue.

The average annual wage of jobs lost in 2008-09 was $61,637 nationally, while the average wage of jobs added through the second quarter of this year was $47,171.

The Gap between the rich and the rest is exacerbated by:

*Taxes impacting the lower income groups: FICA, sales taxes, gas taxes real estate taxes, Social Security taxes and higher taxes on salaries vs. dividends and capital gains.

*Insufficient and/or reduced benefits for Social Security, unemployment, SNAP, school lunches, aids to education, aids to housing

*Excessive unemployment

*Reduced wages for new or existing jobs.

The first three of the above factors are caused by austerity laws specifically designed to widen the Gap by cutting the federal deficit.

Congress and the President, having been bribed by the rich (via campaign contributions and promises of lucrative employment later) repeatedly pass the laws that widen the Gap.

Their pretext is that in some unknown way, the federal government will find the federal deficit so burdensome it could run out of money to pay its bills — a financial impossibility.

The fourth factor is a result of recessions (caused by austerity), which force desperate people to accept low-paying jobs, together with inadequate support for education and training, which would allow more people to create businesses or take sophisticated jobs.

The bottom line:
The rich care only about widening the Gap, for it is the Gap than makes them rich. (If there were no gap, no one would be rich, and the wider the Gap, the richer they are.

The rich bribe the politicians to pass laws that will widen the Gap. They bribe the media (via ownership) to publish articles praising deficit reduction, the result of which is a widening of the Gap.

And they bribe university economists (via contributions to university foundations) to provide “scientific” support for federal austerity.

Together, these are known as “The Big Lie.”

And, as you can see, the bribes and The Big Lie are working.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)

9. Federal ownership of all banks (Click here)


10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

—–

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

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