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●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.
The Big Lie not only costs you money; it can cost you your life.
Here are some excerpts from an editorial in today’s Chicago Tribune, one of the many newspapers spreading the Big Lie:
There’s a new breakthrough hepatitis C drug treatment that cures — yes, cures — almost everyone who takes it. Unlike previous, far less effective treatments, patients suffer few if any side effects. The entire regimen takes only 12 weeks, much shorter than previous regimens.
The drug, Sovaldi, could save the lives of many of the estimated 80,000 people a year who die from the blood-borne liver disease. Eventually, Sovaldi could save the nation’s health system billions of dollars by preventing liver failure and liver cancer, not to mention curbing the huge costs of liver transplants.
The miracle pill costs $84,000 for a typical 12-week course of treatment.
Sens. Ron Wyden, of Oregon, and Charles Grassley, of Iowa cite a study that says Sovaldi could cost Medicare $6.5 billion over the next year or so, boosting drug premiums by 8 percent.
Wyden is a Democrat and Grassley is a Republican, demonstrating that the Big Lie is neither blue nor red, neither left nor right.
Readers of this blog know that federal taxes do not pay for federal spending. Unlike state and local governments, and unlike you and me, the federal government is Monetarily Sovereign. It neither needs nor uses tax dollars for anything.
Even if FICA were $0, the federal government could (and should) provide free, comprehensive Medicare to every man, woman and child in America.
Some states are planning or starting to restrict access to the drug to mainly the sickest patients. Some private insurers also are imposing treatment limits, urging physicians to treat only patients who absolutely need the therapy now.
See, it’s like this. Treat the sickest patients, but withhold Sovaldi from the others, until they get sicker. This insures that everyone gets really sick.
There’s mounting pressure on Gilead Sciences, the maker of Sovaldi, to cut its price. But if $1,000 a pill is too much, what is the “correct” price?
No, we do not defend price gouging by prescription drug companies. But we strongly defend American pharmaceutical innovation and the wondrous results it yields.
Sovaldi is a prime example of why America’s drug industry is the world’s powerhouse. A company spends years and hundreds of millions of dollars developing a drug, knowing most fail in trial.
The company discovers a blockbuster drug. Company execs price it accordingly, to reward shareholders and investors for the risks taken and for all the money spent chasing miracle drugs that never panned out.
The Tribune’s editors are right — and wrong. They are right that drug development is an extremely costly, extremely dangerous procedure. The vast majority of new drugs prove worthless.
Even those that finally, after years of expensive testing, reach the market, may be found to have serious side effects that can lead to multi-million dollar law suits.
So why do drug companies spend billions trying to develop drugs that usually don’t work, and may cause liability. Why take such huge risks? Only because the rewards can be great.
If not for that risk-taking, no new drugs would enter the market, and we all would suffer and die years earlier.
But the Tribune editors are wrong in spreading the Big Lie that federal taxes pay for federal spending. In fact, federal taxes pay for nothing — NOTHING — and federal deficit spending is necessary for economic growth.
If Sovaldi costs Medicare $6.5 billion a year, and the federal government were to pay for Medicare, that would mean $6.5 billion in growth money added to the economy.
And why all the lies? The richest .1% income/wealth/power group bribes politicians bribes politicians via campaign contributions and promises of lucrative employment later; the newspapers are owned by the rich and the universities are supported by the rich — all to widen the gap between the rich and the rest.
Because every source of information repeats the Big Lie, the populace remains ignorant of the truth, and that ignorance is killing them.
What should you do? Spread the truth.
The ignorant will denounce you and insult you and resist you. But if you keep at it, eventually the truth will out, the gap will narrow, and our lives will be longer and better.
Rodger Malcolm Mitchell
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
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.