Mitchell’s laws:
●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.
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Here are a few excerpts from a truly amazing article, spotted by Dan Lynch:
Spanish retail sales slump 10.7% as austerity hurts consumers
Retail figures in Spain have fallen for 30 successive months, the decline accelerating since latest austerity measures applied
It was one of the most miserable Christmases on record for retailers in Spain as sales plunged last month in the midst of one of the worst consumer crises the recession-hit country has ever seen.
Retail sales in Spain have now fallen for 30 successive months, and the decline has quickened since the prime minister, Mariano Rajoy, implemented further austerity measures to bring the budget into line.
Rajoy’s austerity-bound government increased VAT in September in an attempt to fill its coffers. The Christmas sales fall was a further sign that families have fewer euros to spend. Savings are also down, meaning the downturn is not just the result of frightened families trying to build up their savings.
Spain’s civil service union, CSI-F, claimed the Christmas sales slump could be blamed directly on decisions to suppress an extra monthly payment normally handed to public staff in December.
Is it true that if you increase taxes and cut spending, aka “austerity,” this will cause an economy to tank?? Hmmm . . . does that mean if we in America increase FICA taxes on the poor- and middle-income groups and increase income taxes on the rich, and simultaneously cut federal spending, we might have the same result? Has anyone told Congress and the President?
No need. They already know. It’s part of the “widen-the-gap-between-the-rich-and-the-rest” plan, for which Obama and Congress have been paid by the upper 1% to implement. The EU, owned by the upper 1%, follows the same plan.
Car and house sales are falling, suggesting the recession that prompted the economy to shrink by 1.4% last year will continue. Most analysts predict the economy will contract by a similar rate this year as the government seeks to cut the budget deficit further just as borrowing costs shoot up. Unemployment rose above 26% last month and is predicted to climb higher but the government insists the recession will bottom out this year and growth will return by 2014.
Are we supposed to believe that if the government takes money out of the economy, the economy will contract, unemployment will increase and the population will suffer? Is this something new?
On Monday night, Olli Rehn, the EU’s economic and monetary affairs commissioner, hinted that the austerity programme may have to be relaxed: “If there has been a serious deterioration in the economy, we can propose an extension of a country’s adjustment path … That’s what we did last year in the case of Spain.”
An “extension of a country’s adjustment path” is just EU-speak for more loans to nations that cannot pay their current debts. (They are monetarily non-sovereign) But notice the phrase, “If there has been a serious deterioration in the economy . . . “ IF? IF? Unemployment rose above 26%, and he says, “IF”?. I wonder what he calls “serious.”
Spain is understood to have missed the target of cutting its deficit to 6.3% of GDP in 2012, making it much harder to hit the 2013 goal of 4.5%.
Translation: Spain was unable to rip 6.3% of GDP out of its economy, so it will have trouble ripping another 4.5% out of the economy next year. No matter. It doesn’t hurt the rich. They will do just fine.
One of my “laws,” which appears at the top of every post, is: To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
Spain and the EU continue to indoctrinate European citizens with the delusion that EU nations can break this law. But that’s Spain.
What about the U.S., a Monetarily Sovereign nation, with the unlimited ability to create its sovereign currency, but instead which condemns itself to monetary non-sovereignty by passing silly austerity laws (the debt limit), and engaging in deficit reduction?
Again, no problem. No tag days needed for the upper 1%. No unemployment for them. The gap widens and they laugh at the peons, all the way to the bank.
What shall we the people learn from Spain?
Rodger Malcolm Mitchell
Monetary Sovereignty
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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
#MONETARY SOVEREIGNTY
#Monetary Sovereignty - Mitchell 
We truly have a sad state of affairs here in America. It is almost impossible to explain Monetary Sovereignty to most older people with less education. They are so brainwashed. I’ve tried the approach of personalizing austerity by pointing to the programs they use that would be cut. Invariably most say I am willing to accept a small cut for the good of the country. When I say it doesn’t have to be so they say something like: “I’m too old to believe in Santa Claus”. Then it is back to: We really need to cut those welfare programs that keep people comfortable so they don’t have to work (racist code), when one of their own relatives, a lot of the people they know, or themselves collect Food Stamps, WIC, HEAP, etc..It really was an interesting social experiment to rent a trailer in a white trailer park. They really are nice people, but the educational level for the most part just isn’t there to think critically on their own. My 18 year old son got MS right off the bat, and surprisingly began expanding into things we hadn’t talked about. He tentatively said if people aren’t buying, and we have a bad trade balance, the government has to spend more because that’s really where the money comes from, right? That’s kinda obvious really. Bingo!!! But alas he is a freshman at Vassar. Although, almost all his friends less educated or not seem to get it easily when it is presented to them. MSers get em while they are young, while they are still rebelling against some of their parents who are watching only FOX news. There was one old gentleman in the park where FOX was on all the time, but when his wife passed I saw CNN on. When I asked if he wanted me to change the channel to FOX for him because he couldn’t walk too good and thinking he had dropped the remote and the channel changed, he said I always hated FOX, but my wife loved it. We talked a bit. He said, son you know you sound a lot like FDR. I like that, but let me warn you not many people here know what FDR stood for, if they know much of him at all. Hugh was born in 1923 he remembered what austerity really meant. God rest his soul. I ramble…
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Excellent comment, Zachary.
I agree that young people are our best audience. Young people continually ask “Why?”
Where does money come from? From banks? Where do banks get their money? Where does China get its money? Where does the government get its money? Where does money come from?
Adults are too stupid to ask questions like this. Adults are too busy thinking themselves geniuses, while they blindly obey their masters.
Regarding people who say they would accept cuts in their food stamps for the good of the country, plus cuts in their Social Security etc., I say great. When I see them on the sidewalk,, holding a sign that reads, “Hungry, please help,” I will tell them, “It’s for the good of the country.” Then I will walk on without giving them anything.
When I see people living in cardboard boxes in empty lots, I will tell them, “We must all live within our means.” I will tell them they are evil for having added to the “national debt.” I will explain that each of them owes half a million dollars, and they are deadbeats for not paying up. I will say their kids and grand-kids also owe half a million, and they too are deadbeats.
If they ask for food, I will say, “Sorry, but the nation has a debt crisis.”
If they ask for medical attention, I will say, “Sorry, but we must reduce the deficit.”
If they ask for any kind of government help, I will say, “Sorry, but the government is broke.”
If they complain about their poverty, I will tell them they are “takers,” and I am a “maker.”
If they have any questions at all, I will tell them to go find a TV and watch Fox news, which has all the answers.
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Off-topic…
AUSTERITY TRUMPS ALL
The federal government will continue to increase its military spending, but politicians will concentrate the money in fewer and fewer hands.
It’s part of austerity mania.
From Forbes magazine…
>> “Within a few weeks Washington‘s budget wars will begin impacting military communities in a big way. Billions of dollars and thousands of jobs will be extracted from local economies, devastating communities that depend on defense department facilities and military contractors for their prosperity.”<<
You see, austerity is not always about budget cuts. Austerity sometimes involves budget increases, but with all monies funneled to the rich. In this case, two-thirds of military personnel will be fired, while countless military-related businesses will go bankrupt. Military spending will continue to grow, but it will go for ultra-expensive weapons systems, plus high-priced mercenary firms that work on a contract basis.
The cutbacks will be nationwide, dramatically worsening the depression. The Navy, for example, will continue to receive the same funding as always, but plans to eliminate 136,000 jobs and $2 billion from the Virginia economy alone (according to Forbes). Air Force and Army cuts will be concentrated in the South and the West, where they have most of their big bases.
My point is this…
Today, austerity trumps EVERYTHING; even the “war on terror.” Everywher, the drive to widen the gap between rich and poor is Priority #1.
And it’s not just the rich who are pushing this. The peasants now regard austerity (e.g. reducing the deficit) as more important than jobs, or health care, or housing, or food, or anything else. Even “progressive” and “socialist” blogs have austerity mania. Even Marxist blogs favor austerity. The brainwashing is absolute.
Meanwhile politicians compete to see who can impose the most austerity (and thereby collect the biggest bribes). Yesterday Rep. Mo Brooks (R-AL) offered up his “Protecting America's Solvency Act," a constitutional amendment which will make failure to balance the nation’s budget an impeachable offense. Brooks is one of the leaders in holding up relief for Hurricane Sandy victims. He says many states have balanced budget laws, so the federal government should too.
Austerity trumps all.
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A talk by Gus diZerega:
.
At a time when unemployment is at 24-5% in Spain, the 80,000 worker-owners of the Mondragon Co-operatives have an unemployment rate of 0%. At a time when American CEOs’ income rises as much as 400 to 500 times the income of average workers at their companies, Mondragon’s managers-owners make 6 times what the lowest. paid worker-owners make. At a time when the middle class is disappearing in the US and some
studies say income inequality here is akin to that of Czarist Russia, the Mondragon region of Spain lacks slums or gated communities. It is middle class. What does all this mean and what can it teach us?
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It teaches us that people helping each other is socialism, and it is evil.
Fox News says so.
Incidentally the cooperative spirit of the Basque people is one reason why they have long wanted independence from Spain, which is controlled by parasitical elitists. While the Mondragon companies employ almost 100,000 people, the rest of Spain is now so impoverished from austerity than many Spaniards are quite literally eating out of garbage cans.
The fat elitists call this, “Fiscal responsibility.”
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kudlow thinks that if the government cuts spending that the economy will improve, and this dumbf*&k has his own show!
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Lawrence Kudlow and Joe Scarborough have their own separate shows on CNBC.
Both spend most of their time screaming for austerity.
Scarborough says the national debt is like global warming: if we don’t have austerity now, we will have disaster in the future.
Scarborough claims that we have $60 trillion in unfunded liabilities to Medicare and Social Security, and that only by austerity can we pay that $60 trillion.
Scarborough is so stupid that he qualified to be a right-wing pro-austerity congressman from Florida (1995-2001).
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They are well paid to act stupid.
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