Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
The Naked Capitalism blog quotes the N.Y. Times, in an article titled, “More Proof That Obama is Herbert Hoover”:

An extraordinary amount of personal income is coming directly from the government. Close to $2 of every $10 that went into Americans’ wallets last year were payments like jobless benefits, food stamps, Social Security and disability, according to an analysis by Moody’s Analytics. In states hit hard by the downturn, like Arizona, Florida, Michigan and Ohio, residents derived even more of their income from the government.

By the end of this year, however, many of those dollars are going to disappear, with the expiration of extended benefits intended to help people cope with the lingering effects of the recession. Moody’s Analytics estimates $37 billion will be drained from the nation’s pocketbooks this year.

And President Obama not only wants federal budget cuts, he is aiming for a $4 trillion cut – the biggest cut even he can imagine. He’s ready to cut spending for everything – Medicare, Social Security, Medicaid – and to compound the problem, he wants to increase income taxes (but “only” on the wealthy, so that won’t remove money from the economy . . . or will it?)

Consider the enormous money drain from the economy, when the government reduces spending and compounds it with increased taxes. The economy is starved for money, and the government wants to cut the supply. Talk about applying leeches to cure anemia!

Question for debt-hawks: Where is the money going to come from to grow our economy? Given any thought to that?

The article’s author makes one final comment:

Even knowing how dedicated to bad ends Obama is, I still feel like I’ve walked into a parallel universe. He’s now determined to make these horrific entitlement cuts a sign of his manhood. This is “Change” for sure, to a more brutal, grasping, dog eat dog society, all administered by self serving elites. They will in the end reap the whirlwind they are creating, but not before it mows a path of destruction through our social order.

Based on where Obama and the Tea/Republicans are headed, there will be a depression (not just a recession) next year. Only a miracle of realization, by both parties, can save us now.

Rodger Malcolm Mitchell

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.