–Why would Congress intentionally allow the economy to be injured?

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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US economy shifted into reverse in late 2012, partly because of sharp gov’t spending cuts
By Associated Press, Updated: Wednesday, January 30

A plunge in defense spending helped push the economy into negative territory for the first time since mid-2009. The contraction in the October-December quarter came in at an annual rate of 0.1 percent, according to a government estimate released Wednesday.

What!! You mean federal spending cuts hurt the economy, especially hurting the lower 99% income groups and widening the gap between the 1% and the 99%??? Why didn’t the politicians and the media — all paid by the upper 1% income group — tell us that beforehand?
——————————————————————————————————————————————————————————————————————

Deep spending cuts are likely, lawmakers say, with no deal on sequester in sight
By Lori Montgomery, Published: January 29

Less than a month after averting one fiscal crisis, Washington began bracing Tuesday for another, as lawmakers in both parties predicted that deep, across-the-board spending cuts would probably hit the Pentagon and other federal agencies on March 1.

An array of proposals are in the works to delay or replace the cuts. But party leaders say they see no clear path to compromise, particularly given a growing sentiment among Republicans to pocket the cuts and move on to larger battles over health and retirement spending.

What!! You mean Congress, which is paid by the 1% to cut benefits to the 99%, and widen the gap between the 1% and the 99%, will not prevent the spending cuts that will hurt the economy???

Some things are hard to believe — unless you unless you understand the motive.

Well, now that Congress and the President see unquestionable proof that austerity hurts the economy, surely they won’t let those spending cuts happen. Right?

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

4 thoughts on “–Why would Congress intentionally allow the economy to be injured?

  1. In answer to the question in the title of this blog, it’s the same the world over:

    Financial Times
    Rajoy drawn into corruption scandal

    Spain’s prime minister has become embroiled in a growing scandal over secret cash payments to ruling party politicians after a newspaper published what it claimed to be accounts showing payments reaching as high as Mariano Rajoy himself.

    The Popular Party on Thursday again denied that its leaders, including Mr Rajoy, received regular cash payments funded from donations from construction companies, as flames from the corruption allegations licked at the feet of its most senior figures.

    –If ever you wonder why salary is taxed at the highest rate, while investment income is taxed at a lower rate . . .
    –If ever you wonder why FICA doesn’t apply above about $100 K and only applies to salary . . .
    –If ever you wonder why myriad exclusions in the tax code are usable only by the very rich . . .

    Wonder no more. Politicians are paid, legally and illegally, to vote as they do. Any discussion of economics, without including political motivation, lacks substance.

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  2. How often have you heard that the deficits we are running are out of control and the accumulated debt is going to have to be repaid by our children and grandchildren? The Republicans want deficit reduction through spending cuts only. The Democrats want it through a balanced approach with a combination of spending cuts and tax increases. This is the battlefield the 1% has selected and a lot American are buying into it by allowing (not voting) or agreeing this budget cutting austerity is necessary.

    We hear that we must put our budgets on a path to fiscal responsibility over the long term with cuts to programs often in the future. That is a curious position indeed. That’s putting in place policies over a long time frame making sure our children and grandchildren pay for the debt. Further, most of the proposed current cuts are to the very things: (education, health care, infrastructure etc.) that effect the young and 99% of us making certain that the young pay for the debt now and in the future, also insuring lower productivity I might add.

    Are there people fighting all this deficit hysteria? Well, they bubbled to the briefly surface in the MSM with the trillion dollar coin as representative of their position that deficits do not matter in the face of so many unemployed and idle resources. Only to be smacked down quickly by the status quo and relegated back to the Siberia of economics. http://youtu.be/alFXKTTr8eE

    So it is back to the political warfare about how much austerity and over what time period. The 1% have played their cards very well and the American people are nodding their heads in agreement that cutting Government spending (taking money out of the economy) will lead to economic growth. It won’t…All austerity will get us is an increased gap between the rich and poor…I’m done…

    Written today (1/31) before viewing this topic, strange indeed…

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  3. “Any discussion of economics, without including political motivation, lacks substance.”

    ++++++++++++++++++++++++++++++++++++++++++++++++++++++

    “Neo-classical” economics lacks substance, because it masks the role of politics, corruption, and inequality. However, the resulting confusion keeps the peasants confused and submissive. Therefore it is the form taught in all American colleges and universities. (The “Austrian school” is just as bad.)

    In this fantasy (which is actually a theology) all players are rational, and have equality. Everything is governed by supply and demand. Politics are irrelevant. So are monopolies, market rigging, and speculative bubbles. A rise in prices causes a fall in demand.

    In the real world, by contrast, once a bubble develops (e.g. the housing bubble), the higher the price, the greater the speculation, and thus the greater the demand. Indeed, financial and asset markets are essentially a collection of bubbles of all types and sizes.

    With “neo-classical” economics, supply and demand for all goods and services are in balance at all times. If a shock causes changes, the economy adjusts instantaneously. This is called “market equilibrium.”

    Economics professors get paid to spout this garbage using charts, graphs, and mathematical formulae. For them, economics is the same as bickering over how many angels can dance on the head of a pin. Analytical rigor is everything. Reality is nothing.

    In this academic dream world, the economy and society are a perfectly harmonious utopia, with a place for everything, and everything in its place. If we question why the 1% own two thirds of the wealth, we are told that this is the will of God (i.e. the “market”). If we question further, we are told that everything will become clear after we submit to more austerity (always more). If we keep pushing, and we discover Forbidden Knowledge (e.g. the facts of Monetary Sovereignty), and we share that knowledge with others, we will be banished and exiled.

    Any attempt to apply this academic garbage to the real world results in confusion and contradiction — which brings us back to the purpose of “neo-classical” economics. Confusion and contradiction keep the 1% in power, while sustaining jobs for politicians, professors, and media shills.

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  4. GLOBAL MADNESS

    During WW I the Western world was caught up in the “German menace.”

    Then it was the “Red menace.”

    Then it was the “Nazi menace.”

    Then it was the “Soviet menace.”

    Then it was the “Muslim menace,” plus the “war on terror.”

    Today it is the “deficit menace.”

    This madness is wider and deeper than any madness before it. Right, Left, Marxist, Capitalist, Liberal, Conservative — all are consumed by austerity mania.

    Politicians serve the rich by imposing austerity. They’re doing it in Iran. They’re doing it in Israel. They’re doing it in almost every nation.

    (Exceptions include export-oriented nations like China or Bangladesh, whose people are sweatshop slaves. Other exceptions are the left-leaning governments of South America, which are increasing their spending on the public.)

    India’s finance minister P. Chidambaram has already cut food and fuel subsidies. Now he will cut welfare and road projects by $20.6 billion. He claims that without ever-increasing austerity (imposed on the lower classes) ratings agencies will downgrade India’s sovereign debt.

    Of course, downgrades from ratings agencies are meaningless, since India’s government is Monetarily Sovereign.

    Regardless of the nation involved, politicians use the EXACT SAME LIES, always and everywhere, especially in Monetarily Sovereign nations…

    >We have a debt crisis.
    >We have a deficit crisis.
    >We need fiscal discipline (or “fiscal consolidation”)
    >We have trillions in unfunded liabilities.
    >Our debt-to-GDP ratio is too high.
    >Our deficit-to-GDP ratio is too high.
    >Social programs are bloated.
    >The only way to ease the depression is via austerity.
    >“Entitlements” are the disease. Austerity is the cure.
    >All serious economics experts agree that we need austerity.
    >Without austerity today, our children will suffer tomorrow.
    >Those who champion austerity are “makers.”
    >Those who question austerity are “takers.”
    >Government spending enslaves the public, crowds out the private sector, reduces tax revenue, and causes depressions. The only solution is austerity. If austerity worsens the depression, the solution is more austerity. Always MORE.

    …I’m sure that Rodger’s readers can add more lies to the list.

    In all nations, austerity fanatics concentrate on “tax relief.” This is a diversion. Their real mission is to widen the gap between the rich and the rest by privatizing public assets and social programs.

    It’s a global mania, and it’s getting worse.

    The article below uses OMB data to show that politicians have cut the U.S. government deficit faster during the last three years than in any time since the end of WW II. In fact, outside of that post-WWII era, the only time the deficit has fallen faster was during 1937, when austerity turned the Great Depression into a decade-long nightmare.

    And because of austerity, the U.S. economy went negative in the last quarter of 2012, shrinking by 0.1 percent.

    http://m.static.newsvine.com/servista/imagesizer?file=steve-benen59F5FDA8-2515-D4E4-1273-EA31648F7A85.jpg&width=380

    As austerity mania worsens, central banks worldwide continue with various forms of quantitative easing, again to make the rich richer.

    Of course, some people question austerity. Even the right-wing, pro-austerity American Enterprise Institute admits that “deficits have been, and will continue to be for some time, eminently sustainable.”

    http://www.aei.org/article/economics/fiscal-policy/trillion-dollar-deficits-are-sustainable-for-now-unfortunately-ft/

    However, even when the liars admit the truth, they continue to lie. For example, that same American Enterprise Institute article says the reason why deficits are sustainable is that “the federal government is able to finance them at interest rates of half a per cent or less.”

    Nonsense. The reason why deficits are sustainable is that the US government is Monetarily Sovereign.

    Thus, the depression will continue to worsen until one of the following happens…

    1. Wall Street creates another bubble (followed by a crash.)

    2. The public wakes up to the facts of Monetary Sovereignty.

    3. The US government engages in massive spending, in order to conduct another world war.

    My money is on #3.

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