●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.
Last night, Barach Obama spoke to America, in a courageous and far-seeing speech that established him among the greatest of American presidents. Here is the complete text:
My fellow Americans,
I come to you with and apology and a promise. You have been lied to – by Congress, by the media, and yes, by me. From some, the lie was due to ignorance. From others, the lie was intentional. Either way, you have been misled, and for that I truly am sorry.
You have been told the federal debt is too high, that it is a danger to our economy, that our children and grandchildren will be forced to repay it. You have been shown debt clocks that purport to demonstrate how much of the federal debt you owe.
On August 15, 1971, the U.S. became Monetarily Sovereign. Unlike our states, counties and cities, the federal government acquired total sovereignty over our sovereign currency, the dollar.
In simple English, this meant we could create dollars at will. The government no longer needed to ask anyone for dollars – not you, not me not China – though unaccountably it continues to beg for the dollars it freely can create.
We continue to pretend that federal financing is like our own personal, kitchen-table financing, so we use phrases like “live within our means,” and “unsustainable debt,” which may be appropriate to you and me, but no longer are appropriate to the federal government.
Unlike you and me, U.S. government never can run short of dollars, never can go bankrupt, never can be unable to pay any bill. In short, the so-called “debt crisis” is an accounting myth.
And today, I’m going to prove it to you.
I am holding in my hand a genuine U.S. coin, made of platinum.[Holds up coin]
Look at it closely. It’s denomination is $20 trillion.
[Turns to Ben Bernanke]I am giving this coin to Chairman Ben Bernanke, along with a deposit slip, and asking him to deposit this coin into the appropriate account at the Federal Reserve Bank, to offset the accounting debt.
[Turns back to the camera] There, it is done. Today, the so-called federal debt was $12 trillion. Tomorrow, when you awaken, the federal debt will be zero.
Those debt clocks will have to be rewound to zero. The annual fight over the debt limit will become a distant and unpleasant memory. The accounting myth known as the “federal debt” will be undone by the reality of the $20 trillion platinum coin.
Given this new-found reality, we will act slowly, carefully and prudently. First, I can tell you there will be no tax increases of any kind, not on the rich and not on the poor. This should greatly please my friends on the other side of the aisle.
Then, we will eliminate FICA, the single worst, most unfair, most unnecessary tax ever devised, as it punishes the salaried people, especially at the lowest end, and it punishes companies. It exacerbates unemployment. It fosters recessions.
Again, still moving at a measured pace, we will begin to improve Social Security, by returning the starting age to 65, with a longer term goal of 62, and we will devise ways to increase benefits so that our elderly can actually live on what they receive.
Additionally, our target will be to provide Medicare – free Medicare – to every man, woman and child in American. This will eliminate the need for Medicaid – everyone will be covered by Medicare – and the associate costs to our financially overburden states.
This will not happen tomorrow. It will be done, careful step by careful step, so as never to shock the economy with too many changes at once.
Some of our other targets are to cut unemployment, provide long-term nursing care for everyone, a free college education for all who want it, a salary for attending school, the end to corporate taxes, the reduction in income taxes by annually raising the standard deduction, and many other initiatives that will benefit America.
We will go again to the moon and on to Mars and beyond. We will build the greatest, most advanced civilization the world has ever known, and we will carry the rest of mankind along with us.
For those who hear this and worry about inflation, I give you this solemn promise: Preventing inflation always will be top of mind. That is why we will move carefully. So in addition to giving Chairman Bernanke that $20 trillion platinum coin [Aside: “Please don’t lose it.”], I give him this instruction:
[Turns again to Bernanke] Henceforth, your primary obligation will be the maintenance of inflation at your target rate of 2%. You will have no need to stimulate the economy – a task that sometimes can conflict with inflation prevention. Stimulating the economy will be Congress’s and the President’s job. You will focus on preventing inflation, and you have the tools to do it.
In the unlikely event, it ever should happen that you find yourself losing ground to inflation, and despite your best efforts, inflation were to rise, we will back off on our plans, catch our breath, and await the next opportunity.
But until that happens, we have the power and we judiciously will use it, to bring America back to the healthiest, wealthiest, best educated nation on earth, where poverty and disease and homelessness and hopelessness have all but disappeared and every American adult and every American child lives the American dream.
That is our goal. That is our vision. And together, we can, we will accomplish it.
Sleep well tonight, my fellow Americans, and when you awaken, let us begin this dramatic new journey, together. You will be remembered as the generation that began it all.
God bless America.
AH, IF ONLY IT WERE TRUE.
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