Mitchell’s laws: Reduced money growth never stimulates economic growth. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Economic austerity causes civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
What is the relationship between these “unrelated” stories?
CBS News, 4/14/2011, By Brian Montopoli
Tea Party Supporters: Who They Are and What They Believe
CBS News and the New York Times surveyed 1,580 adults, including 881 self-identified Tea Party supporters. . . Eighteen percent of Americans identify as Tea Party supporters. The vast majority of them — 89 percent — are white.
Fifty-three percent of Tea Party supporters describe themselves as “angry” about the way things are going in Washington, compared to 19 percent of Americans overall who say they are angry.
Asked what they are most angry about, the top four answers among Tea Party supporters who identify as angry were the health care reform bill (16 percent), the government not representing the people (14 percent), government spending (11 percent) and unemployment and the economy (8 percent).
Twenty-four percent of Tea Party supporters say it is sometimes justified to take violent action against the government. That compares to 16 percent of Americans overall who say violence against the government is sometimes justified.
And this one:
New York Times
If the Arab Spring Turns Ugly
By VALI NASR, ugust 27, 2011
THE Arab Spring is a hopeful chapter in Middle Eastern politics, but the region’s history points to darker outcomes. There are no recent examples of extended power-sharing or peaceful transitions to democracy in the Arab world. When dictatorships crack, budding democracies are more than likely to be greeted by violence and paralysis. Sectarian divisions — the bane of many Middle Eastern societies — will then emerge, as competing groups settle old scores and vie for power.
Syria today stands at the edge of such an upheaval. The brutality of Bashar al-Assad’s regime is opening a dangerous fissure between the Alawite minority, which rules the country, and the majority Sunni population. After Mr. Assad’s butchery in the largely Sunni city of Hama on July 31, on the eve of the holy month of Ramadan, the Muslim Brotherhood, a Sunni group, accused the regime of conducting “a war of sectarian cleansing.” It is now clear that Mr. Assad’s strategy is to divide the opposition by stoking sectarian conflict.
The struggle that matters most is the one between Sunnis and Shiites.
And this one:
Yahoo! News, 10/4/2011, by Chris Hawley, AP
Protests against Wall Street spread across US
Protests against Wall Street entered their 18th day Tuesday as demonstrators across the country show their anger over the wobbly economy and what they see as corporate greed by marching on Federal Reserve banks and camping out in parks from Los Angeles to Portland, Maine.
A slice of America’s discontented, from college students worried about their job prospects to middle-age workers who have been recently laid off, were galvanized after the arrests of 700 protesters on the Brooklyn Bridge over the weekend.
Some protesters likened themselves to the tea party movement — but with a liberal bent — or to the Arab Spring demonstrators who brought down their rulers in the Middle East.
And this story:
Chicago Tribune, 10/7/2011, by Mick Swasko and Ted Gregory
Mosque resistance questioned
For years, HOPE United Church of Christ advertised on its front lown plans to build a church on 14 acres it owns . . . and the minister there says he never heard so much as a peep of displeasure. But those plans fell through, and now that the church wants to sell the property to another religious group, protests have erupted at the Planning and Zoning Commission. Handmade signs critical of the deal have sprouted on utility poles.
This time around the Islamic Center wants to buy the land and someday build a mosque there, said HOPE’s pastor, the Rev. Timoth Sylvia. . . “This display of true ignorance . . . breaks my heart, raises my concern and honestly angers me,” Sylvia wrote to congregants and friends. . .”
I suggest the relationship is anger and frustration at the economy, and specifically at the politicians who caused the economic problems by neither understanding nor caring about Monetary Sovereignty and the needs of the people.
Few of the public, the media, or the economists understand Monetary Sovereignty. The world is crashing, and they don’t know why. People want answers from their leaders, but the politicians have demonstrated cluelessness about the plight of the middle and lower classes. The people feel they have no savior to whom to turn. They are desperate, as witness the popularity of the Tea/Republican presidential candidates, a veritable rogues gallery of economic ignorance.
So the people cast about for devils to exorcise, and the most convenient devils are big government (Tea Party), Banks and other financial institutions (Wall Street protesters), Muslims (Pastor Sylvia’s flock and neighbors), and even religious foes. (Arab spring). Casting out sin is as old as civilization. Witch burning always has been an attempt to appease the gods, who caused our problems, and it had the added benefit of “doing something,” when no one knew what else to do.
At the top of this, and many previous posts, you will see the rule, “Economic austerity causes civil disorder.” As the economy worsens, you will see more and more protest movements, each of which has misdirected goals. Unless the politicians understand, and act according to, Monetary Sovereignty, look for more powerful protests world wide, revolution becoming the norm rather than the exception. So long as Rick Perry’s prayers don’t bring rain, and the Tea Party’s appeals for austerity don’t bring recovery, people will grow angrier and angrier.
Our government thinks bleeding our economy will cure our economic anemia. Unless this changes, there will be an “American spring,” where Americans turn on Americans, and guns become the law of the land. The “greatest generation” followed a strong leader, by working together during times of stress, and so reaped beautiful victory and economic success. Today’s “worst generation,” given no strong leader, will reap ugly chaos and despair.
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. The key equation in economics: Federal Deficits – Net Imports = Net Private Savings