●The more budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which leads to civil disorder.
●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.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
Obama didn’t win; the Republicans lost. As German news magazine Der Spiegel said even before the vote:
It seemed like a new beginning for America when he took office. But, Obama didn’t close the Guantanamo Bay detention camp, nor lift immunity for alleged war criminals from the Bush-era, nor regulate the financial markets, and climate change was hardly discussed during the current election campaign. The military, the banks, industry — the people are helpless in the face of their power, as is the president.
Not even credit default swaps, the kind of investment that brought down Lehman Brothers and took Western economies to the brink, has been banned or even better regulated.
We want to believe that Obama failed because of the conservatives inside his own country. Indeed, the fanatics that Mitt Romney depends on have jettisoned everything that distinguishes the West: science and logic, reason and moderation, even simple decency. They hate homosexuals, the weak and the state. They oppress women and persecute immigrants. Their moralizing about abortion doesn’t even spare the victims of rape. They are the Taliban of the West.
Still, they are only the symptom of America’s failure, not the cause. In reality, neither the idealists and Democrats, nor the useful idiots of the Tea Party have any power over the circumstances.
The political system is in the hands of big business and its lobbyists. The checks and balances have failed. And a perverse mix of irresponsibility, greed and religious zealotry dominate public opinion.
The downfall of the American empire has begun. It could be that the country’s citizens wouldn’t be able to stop it no matter how hard they tried. But they aren’t even trying.
The picture that emerges is of an American president, weak before the forces of wealth and evil. The Presidency, Congress, even the Supreme Court, all have been compromised by big money. Is it as hopeless as Der Spiegel says?
Now that Obama is a lame-duck President, he has left himself so little time. Future accomplishments for history to judge, will have to take place in the next two years. Even so, his problem will be the mid-term elections, which will occupy those running.
Sadly, Obama will focus on his “grand bargain”: $2.50 of spending cuts for every dollar in new tax revenue? He and his advisers surely know both federal spending cuts and tax increases reduce GDP growth. His “grand bargain” is a plan to reduce GDP growth — a plan to widen the gap between rich and poor.
And that is how he will be remembered, because his motivation for deficit cuts is not based on ignorance. Rather it is based on his knowledge – the knowledge that spending cuts and tax increases each impacts the lower 99% income groups far more than the upper 1% income groups.
The Supreme Court may give Obama some possibility for accomplishment. If the elderly on both sides have the decency to retire, Obama could nominate enough justices to swing the balance away from the 17th century thinking of the current majority.
But then what? The “grand bargain,” even with a more humane Supreme Court, still spells a weakening economy and an ever widening gap between the rich and the rest. Are we lost, or is there a cowboy film in our future – a cavalry that will ride to the rescue?
I believe there is, and in a twist of plot, the face of that cavalry is in shades of brown – and young. For seemingly, in America today, the people who truly understand why this great nation was founded, are the young and the people of color, and thankfully, they are the fastest growing segments of our population.
Romney’s base, the mean-spirited, selfish, white male, is on the decline, no longer to be the majority, and we will be all the better for it. While the young, the Latin and the black don’t have the money, they have the votes and the real morality (not the phony religiosity), and that combination will be unstoppable.
If (big IF) Obama wanted history to remember his administration favorably, he would focus on two simple initiatives:
1. Use the voice of the Presidency to educate the public about Monetary Sovereignty — the need for increased federal deficit spending to grow the economy. Then, using this truth as his sword, cut taxes for everyone – rich and poor – and increase spending on such programs as Medicare for all; increased Social Security benefits, science, education, ecology, poverty.
2. Ease immigration policy and provide a short, sweet path to citizenship. “Give me your tired, your poor, your huddled masses yearning to breathe free”. Immigrants built America. They created the American dream. They, not the selfish excluders, will be the future of American greatness and pride.
Obama has drifted through mediocrity. Accomplishing just these two initiatives would move him toward greatness. His time is running short.
Our time is running short.
Rodger Malcolm Mitchell
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%
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 Imports