Mitchell’s laws: The more budgets are cut and taxes inceased, the weaker an economy becomes. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity = poverty and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
Much has been written about the Republican Party’s takeover by the Tea Party and the “religious” right wing, but the following may put it all in simple perspective:
House Republicans pass sweeping domestic cuts, spare Pentagon
By Lisa Mascaro
Tribune Washington Bureau
3:10 p.m. CDT, May 10, 2012
1. WASHINGTON _ House Republicans approved a sweeping package of budget cuts to food stamps, Meals on Wheels and other domestic programs _ while sparing the Pentagon _ in an election-year showcase of party priorities.
2. Democrats overwhelmingly opposed the legislation, which is expected to stall in the Senate, but House Speaker John A. Boehner’s decision to call a vote gives the GOP an opportunity to highlight its agenda and attack President Barack Obama’s efforts to reduce the deficit. The bill was approved on party lines, 218-199.
The Tea/Republicans know the bill will be defeated in the Senate, and if not, vetoed by President Obama. So why did they vote for it — unanimously? They wish to demonstrate to the lunatic right-wing fringe that they are opposed to anything that helps the poor.
You don’t believe it? Read on.
3. The legislation is “literally taking food out of the mouth of babies” while continuing tax breaks for the wealthy, said Rep. Nancy Pelosi, D-Calif., the minority leader. The cuts would replace across-the-board reductions to both defense and non-security programs that had been agreed to as part of last summer’s debt-ceiling deal with the White House.
That terrible debt-ceiling deal was forced by the Tea/Republicans. But now, they can’t even live up to their own agreements. First they demand a disastrous deficit cut. Then when the Democrats cave, the Republicans up their demands, to cut anything that helps the 99%. The military is spared only because the 1% own the industrial complex that supplies the military.
4. Republicans countered they were tackling the nation’s deficit problems while preventing steep military cuts that Defense Secretary Leon E. Panetta has said would be devastating.
5. “Were hearing lots of comments about how this hurts people, how this hurts the poor,” said Rep. Paul Ryan, R-Wis., the House Budget Committee chairman. “Let’s take a look at our poverty-fighting efforts. … These programs aren’t working.”
This is the same heartless bullsh*t the Tea/Republicans use when discussing the deficit. If money is spent on a problem (recession or poverty) and the problem isn’t 100% cured, the Tea/Republicans claim the money spent “didn’t work.” They said the stimuli “didn’t work,” because we’re still fighting the recession, not admitting that without the stimuli we’d be in the depths of a depression.
According to the lunatic Tea/Republican fringe, reneging on agreements you yourself forced, then cutting federal spending, will stimulate the economy and help the poor. I used to say this merely reflected ignorance of Monetary Sovereignty — indeed of all economics — but no more. It is a calculated effort to increase the gap between the rich and the not-as-rich, bought and paid for the Koch brothers et al.
You now know everything you need to know about the Tea/Republicans.
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
Gross Domestic Product = Federal Spending + Private Investment and Consumption + Net exports