–The Dems are right. The GOP is right. And the 1% laugh all the way to the bank

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.


The Dems are right. The GOP is right. And the 1% laugh all the way to the bank

The Dems are right to deplore federal program cuts, virtually all of which would dramatically burden the middle and lower classes. Spending cuts not only limit dollar growth in the economy. Further, because most spending benefits the 99%, spending cuts directly punish all but the top 1%.

The GOP is right to insist there be no tax increases (other than, tellingly, Obama’s outrageous increase in FICA, which already has begun to burden the middle and lower classes). Tax increases on anyone, rich or poor, remove dollars from the economy, thereby depressing the economy.

So, in a way, everything the Dems and GOP propose is right, and everything they plan to do will dramatically burden the middle and lower classes.

So who came up with this truly harmful sequester idea? The Dems conspired with the GOP. For those who may doubt there is a conspiracy to widen the gap between the 1% and the 99%, the sequester is prima facie evidence. Both parties voted for it and now for political purposes, both parties deny they voted for it.

The purpose of today’s political jockeying merely is to disguise the fact that both parties want austerity. Why? It’s what the 1% pay them to do. That’s what the Citizens United decision was designed to facilitate.

And while the 99% voters buy into the nonsense that the deficit and debt are too big, the 1% laugh all the way to the bank.


Washington Post
Pentagon warns workers may need to take unpaid leave if sequester kicks in
By Zachary A. Goldfarb and Ernesto Londoño, Published: February 20

The Pentagon warned 800,000 civilian employees worldwide Wednesday that they will be forced to take unpaid leave if deep budget cuts take effect next week, fueling growing anxiety about the impact of the automatic spending reductions on the nation’s economy and security.

In the most detailed account of the ramifications of across-the-board cuts, called the sequester, Defense Department officials said civilian personnel could be put on leave one day a week for 22 weeks — effectively cutting their pay by 20 percent for nearly six months.

And the 1% laugh all the way to the bank.

Budget cuts could result in up to 20 percent pay cut for federal workers
Joe Davidson

Agriculture: Plans to furlough about one-third of its workforce, which would lead to “a nationwide shutdown of meat and poultry plants during a furlough of inspection personnel.”

Commerce: “Up to 2,600 NOAA (National Oceanic and Atmospheric Administration) employees would have to be furloughed, approximately 2,700 positions would not be filled, and the number of contractors would have to be reduced by about 1,400.” Census vacancies would remain vacant.

Justice: “The Department estimates that it would lose the equivalent of more than 1,000 federal agents . . . as well as 1,300 correctional officers.”

Education: The sequester “would likely require the Department to furlough many of its own employees for multiple days.”

Energy: “Sequestration would affect thousands of jobs among Federal, contractor and grant awardee personnel.”

Homeland Security: “Sequestration would necessitate furloughs of up to 14 days for a significant portion of our frontline law enforcement personnel, and could potentially result in reductions in force at the Department.”

Housing and Urban Development: “Furloughs or other personnel actions may well be required to comply with cuts mandated by sequestration.”

Interior: Sequesters would limit the department’s “ability to sustain a full complement of seasonal employees needed for firefighting, law enforcement and visitor services.”

NASA: Some inspector general vacancies would go unfilled.

National Science Foundation: The agency would have to cut nearly 1,000 research grants.

Social Security Administration: Sequestration would lead to more than 5,000 positions lost through attrition and termination of more than 1,500 temporary and other employees and a general elimination of overtime.

Transportation: The vast majority of the Federal Aviation Administration’s nearly 47,000 employees would be furloughed for about one day per pay period through September.

Treasury: Most Treasury employees would face furloughs, which would have a cascading effect on employees’ families as well as on the economy at large.

And it’s not “just” the massive job losses. These agencies perform valuable functions, the lack of which will negatively affect you as a member of the 99%. Want less inspection of meat and poultry? Done.

Want fewer law enforcement personnel? Done.

Want less scientific research? Done.

Want less help from Social Security personnel? Done.

Want fewer air controllers? Done.

And the list goes on and on. All the services the federal government provides, reduced. That is what austerity means.

Middle- and lower class voters. You demanded austerity. Now, you have austerity. The deficit will be reduced; the government will be reduced; your lives will be reduced. Enjoy.

And the 1% laugh all the way to the bank.

Rodger Malcolm Mitchell
Monetary Sovereignty


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


One thought on “–The Dems are right. The GOP is right. And the 1% laugh all the way to the bank

  1. Average people want austerity, and whine when it hits them personally.

    “We must cut federal spending!” (On other people, not me.)

    When everyone says this, all of them fall into poverty.

    And the 1% laugh.


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