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. Austerity breeds austerity and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
Unremittingly and unashamedly biased toward the richest 1%, the Chicago Tribune editors seem to relish in their role as mouthpiece for the moneyed. To their credit however, the news sections of the paper seem less affected, which is why two revealing headlines appeared in one issue of the paper.
The two headlines illustrate the remarkable perfidy, not just of the Tribune, not just of the media, but of the politicians — the Congress and the President –running this nation on behalf of the wealthy.
The first headline — actually leading an editorial in the 12/6/11 issue: “Europe wept, still cut the debt”
The editorial goes on to say:
. . . Europe is starting to show the U.S. how to put an overspent, overborrowed economy back on track.
The key is establishing a credible plan to get out of debt . . . Announcing necessary cuts to an unaffordable pension system on Sunday, (Italian Welfare Minister Elsa) Fornero got choked up. She started to explain at a press conference, that Italy’s government had no choice but to require shared sacrifice.
What we wouldn’t give to see the cast of characters running Washington and Springfield take ownership of the financial mess they’ve put us in, and take action to get us out before we’re in as dire straits as Italy.
Some of you already may have puked at the implied and actual disinformation in this editorial. For the rest of you, let me explain.
Because the U.S. federal government is Monetarily Sovereign in the dollar, it can fund any amount of spending in its sovereign currency, without taxes or borrowing, limited only by inflation. Italy is monetarily non-sovereign. It uses the euro, over which it has no control. Two, diametrically opposite situations, requiring opposite action.
Like Italy, the U.S. states, counties and cities are monetarily non-sovereign, which is why they can have the difficulty paying their bills — a difficulty the federal government never has.
In short, any comparisons between the U.S. financial position and Italy’s are false — outright lies intended to deceive you in the 99%.
And as for “shared sacrifice,” what a crock! The sacrifice “sharing” will be among the middle and lower classes — the 99% — and their children. The rich will feel nothing, in fact will grow stronger by comparison.
The editorial continues:
The week kicked off with Italian austerity measures that mean business . . . . the minimum age for government-funded pension benefits would rise to 66 from 62 and most payments would be decoupled from inflation. No more automatic cost of living increases. Taxes would go up, too. . .
Let’s hope the European Union summit slated for Thursday and Friday yields progress — and an example for the U.S. to follow.
Who will be hurt? The lower 99%. Who will benefit from the increased wealth gap between rich and poor? The upper 1%. In the guise of fiscal responsibility, the Tribune’s well-paid, well-perked editors front for the rich against the middle and poor.
The second headline — remarkably, on the front page of the same 12/6/11 issue: “Post office cuts to hurt blacks”
The article goes on to say:
Closing centers will have huge impact on minority workers
For years, getting a government job meant security, good pay and a pathway into the middle class for many Americans, especially African-Americans and other minorities.
But with government agencies at all levels forced to slash expenses in a bid to balance budgets, that long-held promise is in danger of being broken.
The U.S. Postal Service’s announcement Monday that it plans to close 252 mail processing centers and trim 28,000 jobs to fend off possible bankruptcy is part of a growing trend of shrinking government employment opportunities.
“People have raised their kids with these jobs and bought homes in the black community,” said Adrian Peeple, 42, of South Holland, who began her career as a letter carrier . . .
Message to Ms. Peeple: The Tribune editors don’t give a damn about you. The politicians don’t give a damn about you. The richest 1% of doesn’t give a damn about you.
They tell you the government can’t afford to support you. It’s a ruse to keep you down. Sadly, their treachery has kept you ignorant of the truth, which is that the government is Monetarily Sovereign. It can afford to support your Post office. In the words of my newly converted pal, Barry Ritholtz:
The US government can always fund its spending, regardless of access to external debt markets or tax revenues, so long as it keeps inflation under control and doesn’t push aggregate spending beyond the economy’s capacity.
As a comfortable member of the 1%, I tell you this: Any member of the poor- and middle-class 99%, who pays for the Chicago Tribune is paying to be enslaved.
Ms. Peeple, there will come a day of enlightenment, and in the words of the New Testament, “Then you will know the truth, and the truth will set you free.”
Until then, don’t believe those who repeatedly step on your neck. Seek the truth.
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. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
b>Gross Domestic Product = Federal Spending + Private Investment + Private Consumption + Net exports