John Boehner’s and Ted Cruz’s “good” fight Thursday, Oct 17 2013 

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.

======================================================================================================================================================================================

US economy, confidence hurt by budget showdown

The credit rating agencies Moody’s and Standard & Poor’s estimated that the partial closure of the government from October 1 would slice 0.5-0.6 percentage points from annualized growth in the fourth quarter.

S&P said the shutdown took $24 billion from the economy, as hundreds of thousands of government workers stayed at home unsure of getting paid, government contracts were delayed and national parks that drive crucial tourist industries were closed.

Because of that, several economists cut their forecasts for fourth quarter growth to around 2 percent, barely enough to generate the jobs needed to pull down unemployment.

————————————————————————–

Gridlock Has Cost U.S. Billions, and the Meter Is Still Running
By Anie Lowrey, Nathaniel Popper and Nelson D. Schwartz

Containers of goods idling at ports. Reduced sales at sandwich shops in downtown Washington. Canceled vacations to national parks and to destinations abroad. Reduced corporate earnings forecasts. Higher interest payments on short-term debt.

The cost of Congress’s gridlock has already run well into the billions, economists estimate. And the total will continue to grow even after the shutdown ends, partly because of uncertainty about whether lawmakers might reach another deadlock early next year.

(It will) take a bite out of fourth-quarter growth, which will affect employment, business earnings and borrowing costs.

————————————————————————–

David Gergen, CNN Senior Political Analyst

This (shutdown) has cut off services to women and children in need, furloughed hundreds of thousands, further shaken the confidence of the public, sent a shudder through the financial world and created new storm clouds over the economy. And once again the world is wondering about our capacity for leadership.

————————————————————————–

Rep. Pete King Says Ted Cruz Will Do It Again, Threaten Other House Reps

He’s going to be coming back, rewriting history, saying, ‘We were on the verge of victory back in October, and we could have won if we’d just stayed in there another week.’ And he’s going to have phone calls being made, and he’s going to have town hall meetings. And he’s going to have all those support groups out there, threatening to downgrade people on their scorecards and all that stuff.

————————————————————————–

John Boehner: “We fought the good fight.”

The agreement to suspend the debt ceiling and fund the federal government will create a bipartisan committee with a target of December 13 for preparing a deficit reduction plan.

The deal sets the stage for future fights. This will give lawmakers the perfect opportunity to stage more grandstanding and theatrics.

===============================================================================================================================================

Rodger Malcolm Mitchell
Monetary Sovereignty

Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
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
Monetary Sovereignty Monetary Sovereignty

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise.

#MONETARY SOVEREIGNTY

–Shame and greed: The ongoing legacy of a President. Another voice heard. Thursday, May 9 2013 

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 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.

=====================================================================

After you’ve read this, Barack Obama and the Chicago way, read this: Obama Did It for the Money, Posted on May 7, 2013, By Robert Scheer

Here are a few excerpts from Mr. Sheer’s right-on-target article:

The love fest between Barack Obama and his top fundraiser Penny Pritzker that has led to her being nominated as Commerce secretary would not be so unseemly if they both just confessed that they did it for the money. Her money, not his, financed his rise to the White House from less promising days back in Chicago.

“Without Penny Pritzker, it is unlikely that Barack Obama ever would have been elected to the United States Senate or the presidency,” according to a gushing New York Times report. “When she first backed him during his 2004 Senate run, she was No. 152 on the Forbes list of the wealthiest Americans. He was a long-shot candidate who needed her support and imprimatur. Mr. Obama and Ms. Pritzker grew close, sometimes spending weekends with their families at her summer home.”

The billionaire heir to part of the Hyatt Hotels fortune, has long been first off an avaricious capitalist, and if she backed Obama, it wasn’t for his looks. (She) and her family had acquired the Superior Bank with the help of $600 million in tax credits.

Pritzker assured its employees: “Our commitment to subprime has never been stronger.” Two months later, the bank was pronounced insolvent.

Sounds like a perfect Obama appointment for Commerce secretary — a tax avoider with a history of screwing the “little people.” Not that Obama was bribed or anything . . .

In the midst of the continuing cycle of misery brought on by the chicanery of the financial community two key Cabinet positions dealing with business practices will likely be occupied by people who specialized in those financial rip-offs.

For Pritzker, as with the confirmation of Lew, the fix is in.

Memo to my dear MMT brothers, at long last, please come right out and say it: “Barack Obama has been bribed to widen the gap between the rich and the rest. That is why he raised FICA and wants to cut Social Security and other programs that benefit the people.”

Pritzker was queried about avoiding the sort of taxes most ordinary folks are obligated to pay, and she replied in writing: “I am a beneficiary of some non-U.S. situs trusts which were established about 50 years ago (when I was a child). . . “

Penny does her best Sergeant Schultz impersonation, “I see nothing; I know nothing.”

It’s payback time, and even normally progressive Democrats like Pritzker’s home state Sen. Dick Durbin are prepared to roll over. Treating the appointment of billionaire Pritzker as a victory for women everywhere, the senator said she’d “broken through the glass ceiling with her extraordinary intelligence and business acumen.”

Right. She got rich because of business acumen . . . acquired when she “was a child.

The next time someone tells you the deficit or debt must be reduced, or Social Security, Medicare, Medicaid, etc. etc. are “unsustainable,” just look at them pityingly, and say, “I see you have been brainwashed into believing the U.S. government, which originally created the dollar from thin air, and has passed all the laws that make the dollar possible, now can run short of dollars. How sad for you.”

Let’s just keep it simple: The President, Congress, the media and the mainstream economists have been bribed by the rich to cut benefits to the middle- and lower classes, so as to widen the income gap.

Let’s stop assuming they simply are honest but stupid. They are crooks, cruelly destroying the lives or ordinary families.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================

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

#MONETARY SOVEREIGNTY

–Is he taking bribes or is he merely ignorant? Thursday, May 9 2013 

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 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.

=====================================================================

We’ve preached that some (most?) Congressmen are crooks on the payroll of the upper .1% income group, which is why they keep trying to cut the federal spending that benefits the 99.9%. Austerity widens the gap between the rich and the rest, and the wider the gap, the richer they are.

Yet, surely at least some in Congress merely are ignorant of economics, but it’s difficult to identify which, because essentially the crooks and the ignorant say the same things.

Here is the full text of a press release from Congressman Scott Rigell. You decide whether this guy is a bribed crook or simply ignorant:

Kaylin.Minton@mail.house.gov
FOR IMMEDIATE RELEASE
(202) 225-4215

Rigell Backs Bill to Tie Member Pay to Debt Default
On Washington’s fiscal gamemanship: ‘I’m over it

Washington, D.C. – Consistent with his efforts to right our country’s finances, reform Congress, and lead by example, today Congressman Scott Rigell (VA-02) cosponsored H.R. 1884 the ‘Stop Pay for Members’ Act, bipartisan legislation that would stop congressional pay if the United States defaults on the national debt. The bill would also prevent retroactive pay.

At this stage, I would say Rigel is crooked, because his “bet” is safe. There is no way our Monetarily Sovereign, United States government, which created the dollar, is sovereign over the dollar, and can create as many or as few dollars as it wishes, ever could be forced to default on any debt, no matter how large.

Further, the current, so-called “debt” is nothing more than the balance of deposits in T-security accounts at the Federal Reserve Bank. To pay them all off, the government would transfer dollars from these accounts to the holders’ checking accounts.

The only risk in Rigel’s bill is that the right-wing debt nuts could refuse to allow this payout, although logically they should welcome it, as it would eliminate all debt. But of course, logic is not the strong suit for the debt nuts, so maybe Rigel is onto something.

“Our debt threatens the very foundation of our Republic. Washington has been playing too close to the train tracks with our national credit rating, and frankly, I’m over it,” said Rigell, a fiscal conservative who has spent much of his time in Washington trying to put the nation on a sound fiscal path. “It’s time to hold Washington politicians accountable for this fiscal mess.”

Typical, ignorant political ranting, that does not accept the fact that the U.S. government is sovereign over the dollar. The government, having created the dollar from nothing, and having created all the laws and rules governing the dollar, can do anything it wishes with the dollar.

If Congress wished, it could make the dollar equal three euros, two potatoes and one partridge in a pear tree. So how is the “very foundation of our Republic” threatened by a debt the federal government has the power to pay off this afternoon?

And as for the “fiscal mess, that’s just a demonstration of Congressional BS. They are like doctors who falsely tell us we have cancer, then struggle heroically to cure the nonexistent “mess” they invented.

So far, Rigell is mouthing the Peterson, Koch line, which still leaves him in the “crook” category.

Rigell is also a co-sponsor of the ‘No Budget, No Pay’ Act which prevents Members of Congress from receiving pay for each day they fail to pass a Budget and all Appropriations bills after Oct. 1st, and earlier this year introduced the ‘Lead by Example’ Act which prevents Members of Congress from receiving matching contributions to their Thrift Savings Plan (TSP) – a federal employee retirement savings plan – if the deficit is not reduced from the previous year.

This is a little chancier. Though the deficit has fallen the past two years, this bodes ill for the U.S. economy. As soon as deficit reduction (austerity) again causes a recession (see graph below), the government will have to stimulate with more deficit spending, the solution it always must use.

Monetary Sovereignty

At that time, Congress would not receive their free contributions from the government. Ordinarily, this would move Rigel from the “crook” category to the “ignorant” category, but for one reality: No way would Congress ever pass such a bill, and Rigel knows it.

So he simply could be engaging in some political posturing to appear honest, which would keep him in the “crook” category.

Rigell, widely known as a congressional reformer, also returns 15% of his congressional salary to pay down our debt – donations which will total more than $100,000 by the end of his second term. He also declines all federal health and retirement benefits and has self-imposed a limit of no more than six terms in the House.

Well, that seems to settle it. If this guy is willing to pay our Monetarily Sovereign government — a government with the unlimited power to create dollars — “more than $100,00,” and decline all federal health and retirement benefits, he must be massively ignorant.

Or is this a part of his con? Is $100,000+ a small price for convincing voters he’s honest and should be re-elected? I let you call this one.

Sadly, either crooked or ignorant, Rigel fosters the view that the middle- and lower-income groups have too much money, and should receive less from the government, thereby widening the gap between the rich and the rest.

So either way, he’s a menace, who should be voted out of office.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================

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

#MONETARY SOVEREIGNTY

–The single biggest reason labor unions struggle. Monday, Apr 29 2013 

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 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.

=====================================================================

American labor unions should enjoy the sympathy and backing of the American public. Unions are “for” the common worker, “for” higher wages, “for” better working conditions and “against” the rich. What could be wrong with that?

Why then, has union membership declined?

Bureau of Labor Statistics
In 2012, the union membership rate–the percent of wage and salary workers who were members of a union–was 11.3 percent, down from 11.8 percent in 2011. The number of wage and salary workers belonging to unions, at 14.4 million, also declined over the year.

In 1983, the first year for which comparable union data are available, the union membership rate was 20.1 percent, and there were 17.7 million union workers.

Many reasons have been offered for this decline, not the least of which has been notorious, rampant greed and dishonesty among union leadership. Additionally:

Why Has Union Membership Declined?
UC Berkeley’s Claude Fischer

-American workers did not need to organize because they flourished without unions;
-American workers were divided by ethnicity and race in ways European workers were not;
-employers in the United States were unusually powerful … and got governments to crack down on unions (the notorious cases involve state governors using the National Guard to break strikes);
-the American dream of self-employment distracted workers;
-the American electoral system prevented a labor party from growing;
-Americans’ individualism led them to reject collective action;
-Unions face critical “free-rider” problems if membership is totally voluntary. For example, I could benefit from the union’s effort to improve working conditions at my workplace without paying dues

There may be one reason that transcends all. The reason is hinted at in the following excerpts from a post on the AFL-CIO’s own blog.

How Corporations Use Offshore Havens to Avoid Paying Their Taxes
04/24/2013 Kenneth Quinnell

Current laws in the United States allow corporations to use offshore havens to avoid paying their taxes and, if it’s up to many in Washington, the problem will only grow larger.

Tax laws encourage the offshoring of America’s jobs, which has led to the hollowing out of the middle class.

The United States has the third-lowest effective corporate tax burden in the world. Corporate taxation as a share of total tax revenue was 26.4% in 1950 and was down to 7.4% in 2010.
Personal income, Social Security and Medicare taxes were 51.4% of total tax revenue in 1950, now they are up to 83.4%.

Congress is now proposing lowering corporate taxes even more.

See the problem? Rather than demanding reductions in domestic taxes, AFL-CIO believes all corporations – including those organizations that hire and pay union members’ salaries – should pay more taxes.

If AFL-CIO is saying federal tax laws are bad, I agree. If AFL-CIO is saying people pay too high a percentage of their income in taxes, I also agree. But will raising domestic taxes make American businesses more competitive, or encourage American businesses to hire more people, or increase union membership, or benefit union members? No.

Historically, unions have favored employee inefficiency as a way to increase payrolls. (One example: Unions in Chicago’s convention center, McCormick Place, demanded even the most trivial tasks be performed by union members, then charged exorbitant rates. Only when conventions threatened to go elsewhere, did the unions relent.)

McCormick Place union deal reap rewards: Trade show, hotel work
Chicago Sun Times
Fran Spielman, City Hall Reporter

Newly-negotiated union concessions at McCormick Place paid quick dividends on Friday when a major trade show locked in for 2013 and 2015, and a major hotel chain authorized $125 million in renovations.

The union concessions will create an “exhibitors bill of rights” that lets show managers and exhibitors set up their own booths with simple tools.

Exhibitors also can drive and unload their own vehicles at McCormick Place, and union work can be done by two-person crews instead of the old three-person minimum.

The overall result: More work for union members, and not just in the convention center.

For understandable, historical reasons, unions indoctrinate their membership to be anti-business. The focus has been on maximizing employment and wages, rather than on increasing business health, which as a result. would help maximize employment.

It’s as though there were the belief, “the more difficult we make life for businesses, the more people they will hire.”

Not that businesses are innocent. On the contrary, unions exist because businesses exploited workers. But unions are fighting a losing battle.

In this Supreme Court, “Citizens United” world, where corporations have the same rights as people, and can bribe politicians as much as they wish, business simply has too much money and firepower for the unions.

The salvation of the union movement will be in adopting a willingness to help American business be more competitive, rather than asking all business to pay higher taxes, and hoping that will result in salary increases.

Better that the unions should demonstrate their value to businesses by standing shoulder to shoulder with them, and demanding that Congress reduce or eliminate business taxes.

No, cooperation won’t guarantee all businesses will become union-friendly. But cooperation will be more productive than contention for both sides. Unions should assist in efforts to make union members better trained, more willing, more productive workers, rather than exhibiting a “do-the-least, demand-the-most” attitude.

Unions should reward the union-friendly companies and save the contention for those individual companies that truly deserve it. American unions need healthy American companies. The union leaders should ask, “What are we doing, and what can we do, to nourish the goose that lays our golden eggs?”

Message to unions: If you can’t beat ‘em, join ‘em. And; you can’t beat ‘em. So, learn Monetary Sovereignty and learn the reasons WHY federal business taxes and personal taxes can and should be cut.

Learn how to feed the goose so the goose can feed you.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================

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

#MONETARY SOVEREIGNTY

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