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.
●Everything in economics devolves to motivation.
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Can you find the connection among the following stories?
Financial Fraud Conviction Scorecard:
CONVICTED: Bush 1300+, Clinton 1000+, Obama 0.0 (+/-)Not a word of complaint from a single Democrat in Congress, which is especially infuriating given the broad bi-partisan agreement among voters that criminal bankers need to do time.
Too concerned with keeping up appearances and the next election cycle, neither side of the false left-right paradigm of American politics is capable of exposing its own filth when it comes to legitimate scandal, and this DOJ non-prosecution madness involving Goldman Sachs certainly qualifies as sordid.
Unfortunately, since it appears to the mainstream media that this is a partisan issue, and Obama is the anointed one, this story will get zero coverage.
Obama, Democrats, Republicans and media fail to demand that wealthy bankers be prosecuted for criminal actions that cost Americans trillions of dollars. Why?
Timothy Geithner Says Justice Is Nice but Banks Are Just the Best
By: masaccio Thursday January 24, 2013The Secretary of the Treasury discusses the rule of law
The soon-to-depart Treasury Secretary Timothy Geithner confirmed to Liaquat Ahamed of The National Review that his goal was to protect bankers:
… My own view was that it was going to be very hard, if not impossible to design a financial rescue that was going to be effective in protecting all the innocent victims hit by the crisis and still satisfy the completely understandable public desire for justice and accountability. Those things were in direct and tragic tension, never resolvable at that time.
I always felt that the only preoccupation for people in policy at the time should be to fix the problem as quickly as we could, as effectively as we could, and only after that would other things be possible, including how to figure out not just how to clean up the mess, but reform the financial system.
That’s just silly. There is no tension between protecting the innocent victims and locking up the criminals who caused the Great Crash. None.
And his claim that he wanted to do anything for the “innocent victims” is laughable. The truth is what he told Elizabeth Warren and Neil Barofsky: he wanted to foam the runway with the financial corpses of the victims of mortgage and foreclosure fraud so that the banksters and the feral rich would have a soft landing.
Tim Geithner would not, did not and never will demand that the rich criminals be prosecuted. He uses the old, “We must do this, before we do that” excuse for inaction. Why?
Government Protects Criminals by Attacking Whistleblowers
Government Prosecutes and Harasses those Who Expose Criminal Wrongdoing
by Washington’s BlogIt’s now obvious to everyone that – even though criminal fraud dominates Wall Street – the Obama administration refuses to prosecute white collar crime. Ronald Reagan, George W. Bush, George H.W. Bush and Bill Clinton each prosecuted financial crime more aggressively than Barack Obama.
Of course, the lack of a fair and even-handed legal system destroys prosperity and leads to the breakdown of society.
National security claims are also used to keep financial fraud secret (and people who protest runaway criminality by the big banks are targeted as terrorists). And when those in the private sector blow the whistle on potential crimes, they are targeted also.
But it’s not like the government isn’t aggressively using the legal system … it’s just using it to silence the truth. Specifically, the Obama administration has prosecuted more whistleblowers than all other presidents combined.
Government employees also go out of their way to smear whistleblowers, threaten reporters who discuss whistleblower information and harass honest analysts.
Indeed, even high-level government employees are in danger. For example, after the head of the NSA’s spying program – William Binney – disclosed the fact that the U.S. was spying on everyone in the U.S. and storing the data forever, and that the U.S. was quickly becoming a totalitarian state, the Feds tried to scare him into shutting up:
[Numerous] FBI officers held a gun to Binney’s head as he stepped naked from the shower. He watched with his wife and youngest son as the FBI ransacked their home.
Later Binney was separated from the rest of his family, and FBI officials pressured him to implicate one of the other complainants in criminal activity. During the raid, Binney attempted to report to FBI officials the crimes he had witnessed at NSA, in particular the NSA’s violation of the constitutional rights of all Americans.
However, the FBI wasn’t interested in these disclosures. Instead, FBI officials seized Binney’s private computer, which to this day has not been returned despite the fact that he has not been charged with a crime.
Other NSA whistleblowers have also been subjected to armed raids and criminal prosecution.
Not only do Obama and both political parties ignore criminal activity, but they actively prosecute innocent people who report criminal activity. Why?
Economy to be Obama’s focus in State of the Union
The parties are at odds over ways to reduce the deficit. Republicans favor spending cuts; Obama prefers a combination of spending cuts and increasing tax revenue.
The president said he would address taxes and looming across-the-board budget cuts, known as the sequester, in the speech. The White House and Congress have pushed back the automatic cuts once, and Obama wants to do it again in order to create an opening for a larger deficit reduction deal.
“I am prepared, eager and anxious to do a big deal, a big package that ends this governance by crisis where every two weeks or every two months or every six months we are threatening this hard-won recovery,” he said last week.
Obama and both parties and the 400+ economics PhDs of the Counsel of Economic Advisers all are well aware that austerity crushes the middle- and lower income classes. Always has; always will. Yet, Obama and both parties engage in a shameful charade – a fake debate about the best way to institute austerity. Why?
Chris Altchek (caltchek@policymic.com)
10-Feb-2013In the U.S., automatic budget cuts (called sequestration) are looking more likely to go into effect on March 1 as lawmakers struggle to agree on an alternative. The first cuts will total $85 billion from March through September. The Defense Department will absorb about half of the budget cuts. Economists project the sequester could reduce the national GDP by almost 0.6% this year.
Obama and both parties cannot all be ignorant of the facts. Yet they not only ignore criminal activity, not only prosecute those who report criminal activity, but engage in criminal activity themselves: The destruction of America’s freedoms and our middle- and lower classes.
Why?
Clearly, they have a strong motive, and the only motive that makes any sense is this: They are paid criminals, paid by the upper 1% income group to widen two gaps – the wealth gap and the freedom gap – between the rulers and the ruled.
Even the Republicans, who have proved they will do anything and say anything to gain votes and tar Obama with a thick, black brush, have not criticized him for prosecuting the innocent and ignoring, no supporting, the guilty. Why?
America is being ruled by the largest criminal enterprise in history. This criminal enterprise dominates every corner of the government. It dominates the media. It dominates the academic community. It dominates the minds of the public.
It is funded by the wealthiest .1%, the sole purpose being to increase their power, i.e. increase the gaps between the rich and the rest.
It dominates you.
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
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#Monetary Sovereignty - Mitchell 
Pete Peterson crooks his finger and the politicians and the media come a runnin’. Why?
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1.) I get Rodger’s point. In order to truly understand economics, we must understand human motives, especially the craving for power over others. This means we must continually ask, “Why?” Why does Pete Peterson spend $458 million of his hard-swindled money to promote austerity mania?
Most MMT people dismiss this “why” question. They say that Peterson and his minions are simply “misguided.” Obama is “misguided.” Wall Street gangsters are “misguided.” All financial thieves are “misguided.”
This is denial. Most MMT people indulge in it. Why?
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2.) Rodger cites a Huff Post article which mentions various people that Peter G. Peterson has paid through the years to promote austerity mania. Many of these people come from the ranks of average Americans.
Indeed, among average Americans, I estimate that 20% make their living by denying a living to the other 80%. One in five people ruin everything for the other four. We could liquidate the 20% who are parasites, but they would be replaced by 20% of the remaining population.
This is part of the statistical “Pareto rule” (or “80-20 rule”) — a mathematical law that we see in most aspects of human society. I have seen it in action all my life. For example, I once worked in a state prison where the guards and staff members all seemed like hate-filled wretches, but when I studied each individual, I realized that 80% of all employees were more or less decent people, and only 20% were lazy, back-stabbing maggots. The 20% kept the other 80% miserable, thereby creating the false illusion that the 80% were as worthless as the 20%.
The “Pareto rule” is a universally applicable rule of thumb. Using it, I estimate that 20% of Americans not only believe the austerity lies; they promote and exploit the lies in one way or another, directly or indirectly. Those 63 million Americans have convinced the other 252 million that we must have austerity (i.e. reduce the federal deficit).
Therefore, each time you see strangers, you can reasonably assume that one person in five is a scumbag. (See “Pareto rule” in wikipedia.)
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3. There were over 2,600 reader responses to that Huff Post article. Of those, 80% attack the article, and defend the authentically evil Peterson. This shows the extent to which austerity mania rages in the USA. As I have noted before, the “war on the deficit” has eclipsed all other hysterias, including the “war on terror.”
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4. On a different note, I am dismayed by the rigidity of most leftists and liberals. They correctly note that Social Security need not be destroyed to be “saved” — yet they also cling to garbage like this…
a. Social Security will be solvent for the next 25 years.
(FALSE. SS will remain solvent forever, or until politicians eliminate or privatize it, or until the USA surrenders its Monetary Sovereignty.)
b. Social Security has been paying its own way from Day One. We pay for it when we are working. We earned it.
(FALSE. The federal government, including the SS Administration, does not need or use tax revenue, including the FICA tax revenue that allegedly pays for SS.)
c. The SS Trust Fund will have a surplus of $4.3 trillion until 2023.
(FALSE. Where is that $4.3 trillion? Show me the vault. It does not exist, and does not need to. The Treasury creates infinite SS benefits on its computer keyboard. The so-called “trust fund” is an accounting fiction.)
d. Congress can fix SS by making Wall Street fat-cats pay their share.
(FALSE. The best way to “fix” SS is to leave it as it is. Further, even if the rich paid the FICA tax, it would make no difference to SS. There would be no change, good or bad.)
…and so on.
Leftists and liberals spout this trash because they insist that the U.S. government has a “debt and deficit crisis.” They as pig-headed as the deficit hawks.
Here is a typical leftist claim: “It is not SS that adds to the deficit, but the wars, the Wall Street bailouts, and the Bush era tax cuts, none of which have been paid for.”
Nonsense. Did the Treasury throw away its keyboard? Does a government deficit no longer mean a public surplus?
Right wing: We must strengthen the autonomy by imposing austerity on SS.
Left Wing: We must strengthen SS by imposing austerity in the economy.
Thus, we see that few leftists actually care about helping people. They just want to attack right-wing elitists. Both sides promote austerity. Both sides resist the truth. Both sides are smug. Both sides claim they want to “protect” Social Security, yet both sides attack it, since both sides claim that the US government has a “debt and deficit crisis.”
(Incidentally, eliminating SS would mean reducing America’s overall GDP by 7%, which would be catastrophic.)
When a leftist claims that the “SS trust fund” has a $4.3 trillion surplus, and you ask him to show you where that money is, he will respond exactly like right-wing deficit hawks.
–Ignore you
–Insult you
–Go silent
–Claim it is “common sense.”
–Change the subject
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Spare me the stereotypes and generalizations, please. What’s the purpose of all the name calling. Spare me the thesis after thesis based almost entirely upon your opinions. Spare me your incessant parroting; your opinions are not the reason behind my reading this blog.
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