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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.
Please go to, and read, the following article. (Here are just a few excerpts):
Grads Remake China Workforce as High-End Threat to U.S.
By David J. Lynch Apr 15, 2014
Close to 7 million Chinese this year will graduate college, up from 1.1 million in 2001. By 2020, China’s college-educated talent pool is expected to number 195 million people — more than the entire U.S. labor force that year.
“We’re going to have to compete with Chinese banks and Chinese insurance companies and Chinese software companies,” said William Overholt, president of the Fung Global Institute in Hong Kong. “We’re not used to thinking of China as a powerhouse in these areas.”
That change is already happening. More than half of China’s $4.2 trillion in trade last year involved significant value added by Chinese workers, while lower-value processing trade fell below one-third of the total, down from almost 39 percent in 2010, according to the Chinese Ministry of Commerce.
Dan Breznitz, co-author of “Run of the Red Queen: Government, Innovation, Globalization and Economic Growth in China,” says China soon will have a surplus of college graduates to devote to research on fields the West is neglecting, such as power grid improvements, and to innovate in the way many goods are produced.
“It’s not necessarily competing head to head,” Breznitz said. “They’re going to outflank us.”
If they do, it will be partly thanks to what globalized Chinese have learned at American universities. China sends roughly 200,000 university students to the U.S. each year, 10 times the number of Americans who study in China.
Then, re-read this article:
It’s all part of Steps #4 and #5 in the “Nine Steps to Prosperity.”
Rodger Malcolm Mitchell
Nine 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. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (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 lines rise. Federal deficit growth is absolutely, positively necessary for economic growth. Period.