Mitchell’s laws: The more budgets are cut and taxes inceased, the weaker an economy becomes. Until the 99% understand the need for deficits, the 1% will rule. 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.

TPM published an article titled, “An Obama Spending Spree? Hardly” by Sahil Kapur

As a defense against Republican charges that President Obama spent too much, the article really should be called, “With friends like these, who needs enemies.”

Some excerpts:

A dominant theme of the national political discourse has been the crushing spending spree the U.S. has ostensibly embarked on during the Obama presidency. That argument, ignited by Republicans and picked up by many elite opinion makers, has infused the national dialogue and shaped the public debate in nearly every major budget battle of the last thee years.

But the numbers tell a different story.

Obama’s policies, including the much-criticized stimulus package, have caused the slowest increase in federal spending of any president in almost 60 years, according to data compiled by the financial news service MarketWatch.

During the worst recession since the Great Depression, the Obama administration oversaw “the slowest increase in federal spending of any president in almost 60 years.” And this is supposed to be a defense of the President?? At just the time when increased spending is most needed, spending increases were smallest? Yikes!

Obama — unlike his Republican and Democratic predecessors — signed a law in February 2010 necessitating that new spending laws are paid for.

Here, Mr. Kapur parrots the popular ignorance that Monetary Sovereignty is the same a monetary non-sovereignty. Unlike state and local government spending, the spending by a Monetarily Sovereign government is not “paid for” by anything. There is no vault from which dollars are extracted and sent to creditors. The government merely instructs banks to mark up checking accounts. The government can send these instructions endlessly, regardless of tax collections.

Not understanding the difference between Monetary Sovereignty and monetary non-sovereignty is absolute proof one does not understand economics.

In addition, Obama last year signed into law over $2 trillion in debt-reduction over the next decade.

Thereby, converting the United States into Greece. Debt reduction is guaranteed to cause a depression:

1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819.
1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837.
1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857.
1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873.
1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893.
1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929.

. . . the President has put hundreds of billions in cuts to Medicare, Medicaid and Social Security on the table in deals that have been derailed, thanks in no small part to the GOP’s resistance to raising new tax revenues to help bridge the budget shortfall.

There’s irony for you. The Democrat wants to slash programs for the 99%, while the Republicans “derail” the deal.

You simply cannot make this stuff up. A pox on both your houses.

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