●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.
Those who understand economics are aware of this, very simple fact: The U.S. federal government, being Monetarily Sovereign (since August 15, 1971), never can run short of its sovereign currency, the dollar.
Congress never needs to ask anyone for dollars – not you, not me, not China. The government never needs to ask us for tax dollars, and never needs to beg China for borrowed dollars. So, no amount of deficit or (misnamed) “debt” is “unsustainable.”
Further, being Monetarily Sovereign, the federal government has the unlimited ability to set the value of the dollar, so it is no accident that inflation continues to hover near the Fed’s desired rate of 2% – 3% per year. The U.S. government is the absolute sovereign over the dollar.
For the past 15 years, I have struggled to make this concept so clear even a child could understand it. Others have struggled even longer. Yet after all this effort, not one person in a thousand has learned this basic idea.
Attempts to educate the politicians, the media, the mainstream economists and the public have failed. In previous posts ( The Obama conspiracy dance continues. Hope you’re enjoying the show) and ( Revealing the conspiracy: A recommendation for followers of MMT and Monetary Sovereignty) I have explained how the ultra-wealthy, the .1%, has spent billions to bribe politicians, control the media, intimidate the economists and brainwash the public about our economy.
The key to their success is in getting the public to do the dirty work of misinformation. The public has been taught not only to scorn the government, but to scorn those of the 99.9% who receive any sort of benefits – from the government or from business.
Receive a pension? You’re scorned. Receive food stamps: Scorned. Housing assistance, Medicaid, do you march for social justice? Scorned. It has come to the point where my suggesting increased federal help for anyone, immediately invites the rejoinder that people receiving assistance will become sloths, and then “who will pick up the garbage.”
Just as dictators teach their soldiers to kill their own neighbors, the .1% has taught the 99.9% to hate anyone asking for more. Consider unions. Many Americans hate unions, simply because unions demand a minuscule fraction of what the .1% already has.
Koch Brothers Win, Democracy Loses: Michigan Passes ‘Right To Work,’ Governor Will Sign
December 11th, 2012, Jason Sattler
Without one hearing or any public comment in the midst of a lame-duck session after an election where Republicans lost five seats in the State House and their presidential candidate lost the state by 9.5 percent, Republicans in both Michigan’s House and Senate have passed so-called ‘right to work’ legislation.
Republican governor Rick Snyder, who campaigned as a moderate and continually said that ‘right to work’ was not on his agenda now, says he will sign the legislation.
Thus Michigan will become the 24th state in the union to pass legislation that bars unions from automatically collecting dues from all employees covered under a collective bargaining agreement. This highly symbolic move to strike at the heart of unions in the state where unionized auto workers helped create the middle class would not be possible without the support of multi-billionaires, specifically the Koch brothers and Rich DeVos, founder of Amway.
I now will hear from those brainwashed by the Kochs and DeVos of the world, reciting the transgressions of unions – as though the super rich do not transgress. That union guy who gets paid a couple dollars an hour too much for doing too little work — he is the criminal. The Kochs and DeVos, who are paid billions for traveling the world in private jets – they have “earned” their sloth.
Who says so? You of the 99.9% say so.
The bill that Snyder will sign is nearly identical to model legislation written by Koch-funded group American Legislative Exchange Council. Another Koch-funded group, Americans for Prosperity, has been advocating for the legislation, reportedly pressuring lawmakers including Senate Majority Leader Randy Richardville, who had previously refused to support the anti-union measure.
How do they “pressure” It’s spelled M-O-N-E-Y. The Kochs et al, have more than do the unions, and the Supreme Court has given free rein to the .1%, to spend, spend, spend.
A group calling itself “Freedom To Work” has deluged Michigan’s TV airwaves in support of the legislation, arguing that the bill would both create jobs and “protect collective bargaining.” According to state rep. Brandon Dillon, Freedom To Work is funded by Amway’s DeVos
Yes, protecting collective bargaining is the primary concern of Rich (appropriate name) DeVos. You believe that, don’t you?
Longtime Michigan political advisor Dana Houle (says): “Don’t anyone think that passing ‘right to work’ in Michigan is about economics, about jobs, about business,” Houle said. “It’s about wiping out the political and electoral power of unions so they can’t stand in the way of Dick DeVos electing apparatchiks who will enact his radical religious-right and anti-public schools agenda.”</blockquote>
And, the public — 99.9% of it — is all for cutting the power of . . . the 99.9%. The public often is for outrages committed against their neighbors. Dictators count on it.
Outside the Capitol, thousands of union supporters protested and several were hit with pepper spray, including former congressman Mark Schauer.
Ah, the police. Solid members of the 99.9%, always ready to do the bidding of the .1%, while the public applauds. Those protests are so messy. Better to have nice clean cuts in employment, salaries, pensions, medical care, education and housing for the poor. I mean, we all hate big government handouts — oh, except those tax handouts given to Mitt Romney and other mega-rich folks.
Have any of you police, you of the 99.9%, have you pepper-sprayed the Koch brothers or their unsavory political allies? If not, why not? The Kochs and the right wing politicians are the ones stealing dollars from your pockets.
Or would you rather pepper spray a union member?
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