●The more federal 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.
●The penalty for ignorance is slavery.
The previous post described the upper .1% income group’s conspiracy to widen the income gap by claiming the “Big Lie,” that the U.S. is in financial trouble, and must embrace austerity, i.e. cut deficits, or become insolvent. Several people have written to express discomfort with “conspiracy theories” in general, feeling they have a bad name and any such talk reduces credibility.
For those reluctant to discuss any conspiracy, remember Sherlock Holmes’s line, “When you have eliminated the impossible, whatever remains, however improbable, must be the truth”.
It is impossible that neither Obama nor Bernanke, nor Greenspan, nor Geithner, nor all of the bankers and economists at the Fed and the Treasury, nor any of their highly educated and experienced assistants and associates, nor any of the 535 members of Congress — not one of them — understands the U.S. cannot run short of dollars. Simply impossible.
Yet none admit it, except on the rarest of occasions. So we are left with a conspiracy, however improbable some may think it is.
And when you have a conspiracy, you need a motive. I can think of two:
1. To benefit the .1% by widening the income gap between the .1% and the 99.9%.
2. To prevent endless voter requests for increased federal spending, supposedly leading to inflation, i.e. the easily countered, debt-hawk, “Weimar Republic” excuse.
Both have a role, though #1 surely is the more important. The .1% continuously demonstrate their motive by funding “think tanks” that invent the Big Lie, by funding politicians who vote the “Big Lie,” and by funding the news media that promulgate the Big Lie. The Kochs et al do not spend their valuable time and political millions for altruistic reasons.
Intuition is powerful. Brainwashing is powerful. And well-funded conspiracies can be quite powerful. Together they can be more effective than the simple truth. But, conspiracies prefer the dark. They melt in the sunlight. To defeat this conspiracy, we first must acknowledge it, then reveal its members and display their motives and their victims.
We have three weapons in this war: The populace already is predisposed to hate the rich and the politicians, so correctly attaching these two despised groups to this conspiracy, gives us an opening. Further, the populace loves a good scandal. And finally, what Monetary Sovereignty describes and proposes will benefit the populace.
We have not succeeded, nor will we ever succeed, using economics education, alone. We must teach both the economics and the conspiracy. That combination will provide the powerful, compelling story for the populace, needed to overcome the many years of intuition, brainwashing and conspiracy.
Today, America suffers. Europe fades. The Big Lie is kills the world. Austerity is the universal poison.
So, our every article, our every speech, our every letter and every interview must contain both the economics and the conspiracy truths.
Teach the economics. Reveal the conspiracy. Save the world.
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