●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.
●Everything in economics devolves to motivation.
The euro nations are in financial trouble, because they voluntarily surrendered their Monetary Sovereignty, and now are unable to create their sovereign currency (having no sovereign currency.)
Thus, they are short of euros which means their private sectors cannot grow their GDPs. All are in a death spiral — deficit cuts leading to recession, leading to more deficit cuts, leading to worse recession, sinking ever deeper into depression.
Their solution to a shortage of euros in the private sector is to reduce the number of euros in the private sector — the same solution advocated by U.S. politicians.
EU leaders seal long-term budget deal
EU leaders agreed a seven-year budget after a bargaining session in Brussels lasting more than 24 hours.
Herman Van Rompuy, European Council president and chair of the negotiations, tweeted: “Deal done! #euco has agreed on #MFF for the rest of the decade.”
No further details were available but it is thought that fiscal hawks, including the UK and Germany, have prevailed over those member states seeking more robust spending.
The EU motive is the same as the U.S. Congress’s motive: They are bribed by the upper 1% income group (via political contributions and promises of lucrative employment) to widen the income gap by destroying the middle- and lower classes. The wider the gap, the more power the 1% has over the 99%.
Europe is doomed. And unless the U.S. public begins to understand the 1%’s bribery, the U.S. middle- and lower-classes too, are doomed to servitude.
Now all that is needed to seal the fate of the American public is a federal surplus or even a reduction in the deficit.
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