●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.
●Everything in economics devolves to motive.
Readers of this blog know the upper .1% income group has bribed President Obama (via campaign contributions and promises of lucrative employment later) to widen the gap between the rich and the rest. Just a few of many examples:
–Failure to prosecute criminal bankers, and repeated aid to criminal banks
–Appointment of Tim Geithner, the notorious banker sycophant
–Appointment of Jack Lew, the even more notorious banker sycophant
–Increase in FICA, the worst tax in American history
–Commerce Secretary nomination of billionaire Penny Pritzker, who helped fund Obama’s rise to office, and later who will help finance the Obama Library and find big jobs for the Obama family
But perhaps the best (worst?) example is Obama’s “Grand Bargain,” which Professor Bill Black has labelled the “Grand Betrayal.” It is an amazingly harmful plan that would severely punish the middle- and lower-income classes, while not laying a glove on the upper class — exactly what the rich want.
Here’s the irony. Though the Republicans, too, despise the 99%, they despise Obama even more, so are determined to thwart even his anti-99% efforts:
John Boehner Rejects Obama’s Grand Bargain On Debt Ceiling
WASHINGTON — House Speaker John Boehner is rejecting President Obama’s offer to make historic cuts to the federal government and the social safety net, saying in a statement Saturday evening that he can not agree to the tax increases Democrats insisted on as part of the bargain.
Obama offered to put Social Security, Medicare and Medicaid cuts on the table in exchange for a tax hike of roughly $100 billion per year over 10 years.
Here is President Obama, desperately trying to pay off the 1% and screw the 99%, by massively cutting the social safety net and raising a few meaningless taxes, and here is Republican Speaker Boehner, who won’t let Obama do it!
For the past eight years, the Republican political plan has been to oppose anything that would stimulate the economy, reduce unemployment or close the gap between the rich and the rest, and then blame the resultant misery on Obama.
Now, the Republicans inadvertently are saving the President’s legacy, which left to Obama’s own devices, surely would have included a serious recession, if not a depression, with an increase in poverty, joblessness and the income gap.
Yes, the Republicans are trying to prevent “Obamausterity.”
Why Washington scandal-mania may save Medicare and Social Security
By Greg Sargent, Published: May 14, 2013
Scandal fever currently gripping Washington — IRS, Benghazi, Associated Press phone records — may save Social Security and Medicare two decades later.
Liberals who are dreading the scandal-mania that is taking hold should note that it contains a potential upside: It could make a Grand Bargain that includes cuts to Medicare and Social Security benefits even less likely than it already is.
That’s because when scandal grips Washington, a president actually needs his core supporters more than ever to ward it off, making it harder to do anything that will alienate them.
And Obama’s core supporters, the people he hoodwinked into believing he was “for the little guy,” will not follow him to the economic suicide of cutting social programs.
New York Times
G.O.P., Energized, Weighs How Far to Take Inquiries
By Jonathon Weisman, Published: May 16, 2013
The most pressing question for Congressional Republicans is no longer how to finesse changes to immigration law or gun control, but how far they can push their cases against President Obama without inciting a backlash of the sort that has left them staggering in the past.
House leaders have shown “great reluctance” to allow House committees to issue subpoenas, even as rank-and-file members and the conservative political base have been demanding them, Representative Jason Chaffetz, Republican of Utah, said.
This is just too delicious. The Republicans, the party of “law and order,” also are the party of the rich, so they never pressured Obama to prosecute the banksters.
Now, they fear to prosecute anyone for lying to Congress. They all but have forgotten their anti-gun control, anti-gay, anti-abortion agenda, while possibly taking Obama off the hook for sinking the economy.
(Obama can tell his rich backers, “Gee, I tried to destroy the middle class, but those nasty Republicans wouldn’t let me do it. Can I still have my library?”)
The Republicans, whose sole program was anti-everything — anti-poor, anti-middle-class, anti-unions, anti-government workers, anti-unemployed, anti-Social Security, anti-immigrants, anti-Medicare, anti-Medicaid, anti-economic growth and especially, anti-Obama — are caught among their “antis.”
Inadvertently, the Republicans may save our economy, and save Obama from himself. (Visualize our being chased by a pack of hyenas, when a male lion shows up. If these mutually antagonistic animals fight, we may have a chance to survive.)
They don’t know whom they hate, most.
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. Click here
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%
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