●The more budgets are cut and taxes increased, the weaker an economy becomes.
●Until the 99% understand the need for federal deficits, the upper 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.
There probably is a word for saying you want something but don’t.
The word for really wanting something, then when you get it, not wanting it any more is “remorse,” as in “buyer’s remorse” But what is it when you pretend to want something (for ulterior reasons), but know that if you get it, you’ll hate it?
Perhaps we should stick with “remorse,” as in debt-hawk remorse. Who can forget the loud-mouth blusterers lying about the “unsustainable deficit,” Who can forget the phony demands of Congress and the debt-hawk blogs, that we not only cut the deficit, but “GO BIG”?
Who can forget the sickening panderers to the idiot Tea Party — their groveling became so extreme, these lickspittle politicians attempted to outdo each other in rejecting all hope of compromise — just to brown up to right wing? Ah, profiles in courage.
Now, those same lickspittle politicians, having destroyed the lives of the lower 99% income group, look for a whipping boy.
DEFICIT & ECONOMY
Leaders Urge Deficit Reduction Committee to “Go Big”
WASHINGTON, DC, Wednesday, September 21, 2011 (Note the date)
On Capitol Hill the deficit reduction “super committee” continues its work – and today the New America Foundation hosted a discussion with a bipartisan group of current and former members of Congress and White House officials who urged the joint committee to “Go Big” and seek deficit reductions of $4 trillion or more.
Translation: “Even a $4 trillion deficit cut isn’t enough. We want more, more, more. Maybe $5 trillion. Or $6 trillion. Sky’s the limit. (Tea Party, are you watching? Is my nose in deep enough?)
“But a funny thing happened on the way to the Tea Party. Someone used the magic words “fiscal cliff,” and well duh, we discovered cutting deficits (i.e. bleeding the anemic patient) will hurt the economy. Who’da thunk?”
What is the Fiscal Cliff?
By Thomas Kenny, About.com Guide
“Fiscal cliff” is the popular shorthand term used to describe the conundrum that the U.S. government will face at the end of 2012.
Possible Effects of the Fiscal Cliff
The effect on the economy could be dramatic. While the combination of higher taxes and spending cuts would reduce the deficit by an estimated $560 billion, the CBO estimates that the policies set to go into effect would cut gross domestic product (GDP) by four percentage points in 2013, sending the economy into a recession (i.e., negative growth).
A Wall St. Journal article from May 16, 2012 estimates the following impact in dollar terms: “In all, according to an analysis by J.P. Morgan economist Michael Feroli, $280 billion would be pulled out of the economy by the sunsetting of the Bush tax cuts; $125 million from the expiration of the Obama payroll-tax holiday; $40 million from the expiration of emergency unemployment benefits; and $98 billion from Budget Control Act spending cuts.
Amid an already-fragile recovery and elevated unemployment, the economy is not in a position to avoid this type of shock.
Translation: “We Tea Party sycophants bravely demanded that the government “Go Big!” Even a $4 trillion deficit reduction wasn’t sufficient. Now, facing a puny deficit reduction of less than 15% of our “Go Big” amount, we’ve begun to panic.
“Nobody told us deficit reduction pulls money out of the pockets of the public. How were we supposed to know that?
“Sure, we voted for the law. In fact we insisted on it at the threat of filibuster. In further fact, $4 trillion wasn’t enough. But, this isn’t our fault. It’s the fault of you voters. You’re the ones who wanted to cut the deficit. You should have known better.”
The cost of indecision is likely to have an effect on the economy before 2013 even begins. The CBO anticipates that a lack of resolution will cause households and businesses to begin changing their spending in anticipation of the changes, possible reducing GDP by a full half-percent in the second half of 2012.
Translation: “We pretend the deficit reduction is too sudden. When we said, GO BIG!, we really meant, “GO BIG!, but go really, really slowly big. Like BIG that takes many years.
“Yes, we know, taking dollars out of the economy, no matter how slowly, will hurt the economy. And yes, we know the American public — especially the lower income 99% — will take a terrible beating (though the upper 1% will be O.K.)
“But the important point is: The right wing in Congress, can’t lose. When the American worker falls over the fiscal cliff, we’ll blame Obama, you voters will believe us, and we’ll get elected. Simple.
“Right wing politics is the most fun when the President is clueless, his party is wimpy and the voters are ignorant.
GO BIG!! GO BIG!! GO BIG!!”
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