-Hoover, Smoot and Hawley reincarnated as Obama, Bowles and Simpson

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 motive.


Fair or not, the names Hoover, Smoot and Hawley forever will live in infamy as representing wrong-headed legislation that worsened the Great Depression.

History will view Obama, Bowles and Simpson similarly, but perhaps even more harshly, for while the HSH bunch harmed America with innocent ignorance, the OBS gang harms America with deliberate, knowing and selfish malevolence.

I have been uging followers of Modern Monetary Theory (MMT) to stop hinting around, and instead come right out and say: The rich are bribing politicians, via campaign contributions and promises of lucrative jobs later, to widen the income gap between the rich and the rest.

(Like economists who suddenly discover Monetary Sovereignty, then claim they knew it all the time, most of MMT says they said it all the time, while forgetting to include the bribery part)

The rich care more about the gap than about their absolute income, because it is the gap that makes them rich. If there were no gap, no one would be rich, and the wider the gap, the richer and more powerful the top .1% is. A .1%er would be glad to see his income cut if the income of the 99.9% was cut even more. (For instance, the rich don’t mind inflation, because it hurts the poor, more.)

It is as easy, perhaps easier, to widen the gap by depressing the middle- and lower-classes as by raising the incomes of the rich, so the politicians are bribed to do both. And further to indoctrinate the public, the rich own the media.

Consider USA Today, owned by Gannett Company, Inc., a publicly traded media holding company and the largest U.S. newspaper publisher

USA Today: Simpson-Bowles’ Greatest Service

The latest plan from Simpson, a former Republican senator from Wyoming, and Bowles, who served as President Clinton’s chief of staff, usefully rattles the cages of both parties.

Somehow, the rhetoric of “don’t touch my Medicare, don’t touch my Social Security, and don’t make me pay” has to end. Simpson and Bowles’ greatest service is to give elected officials cover for telling people the truth: The primary beneficiaries of those programs will have to fund them or see them shrink.

Translation: “We have to cut Medicare, cut Social Security and institute tax increases (as with the increase in FICA). Don’t ask “Why?” But, you poor and middle class suckers will be to forced pay more and receive less. And just to show you who’s boss, we will increase unemployment and send you to starve in another recession.”

And then there is the wealthy and esteemed Washington Post, owned by wealthy The Washington Post Company, which also owns Kaplan, Inc., a leading international provider of educational services, The Slate Group, Express, El Tiempo Latino, The Gazette and Southern Maryland newspapers, The Herald (Everett, WA), Post-Newsweek Stations (Detroit, Houston, Miami, Orlando, San Antonio and Jacksonville), Cable ONE—a cable TV and Internet service providerand Avenue100 Media Solutions.

The blame game over sequestration

FORMER SENATOR Alan Simpson (R-Wyo.) and former Clinton White House chief of staff Erskine Bowles administered a dose of realism to Washington on Tuesday, announcing an update to their eponymous 2010 deficit-reduction plan. This new Simpson-Bowles outline seeks $2.4 trillion in ten-year savings, on top of the $2.7 trillion already achieved — thus potentially bringing the ratio of debt-to-gross domestic product below 70 percent by early next decade and putting it on a downward path thereafter.

Translation: “Here is the true ‘dose of realism:’ The debt/GDP ratio has absolutely no economic meaning, but it makes our arguments sound ever so scientific.

“While that scary, old sequester would cut a terrible $85 billion from our economy, our beneficial BS program would cut only $2.4 trillion over 10 years ($240 billion every year).

“We assume that because we cut funds for education, you will not be able to calculate that $85 billion is less than $240 billion, or that taking dollars out of the economy will depress the economy and increase unemployment.”

Simpson-Bowles 2.0 would take some steps Mr. Obama has already contemplated — such as adjusting federal tax brackets and benefits by a more realistic inflation measure — as well as some he would not — such as going above $400 billion in health-program savings over 10 years.

Translation: “’Adjusting’ federal tax brackets and benefits is our clever code for making you poor pay more, and receive less, but since we are liars, we don’t want to tell you that.

“And as for that ‘more realistic’ inflation figure, it’s called ‘chained CPI,’ an arbitrary, convoluted, cockamamie device whose sole purpose is to pay you lower, already-way-too-low benefits. One day, we’ll do away with all inflation measures, and justify it with the lie that Social Security is ‘unaffordable.’

“Sure, you people work in the factories and the farms and those little office cubicles, and you do the real work, while we of the .1% sit back and collect dollars. But we have convinced you that we are the “makers” and you are the “takers” — and you believe it!

The sequester would slash $85 billion between now and Sept. 30, half from discretionary programs and half from defense. Both of these have already been trimmed in previous budget deals — defense to the point where Pentagon leaders predict damage to national security if the sequester goes through on March 1. Entitlements, meanwhile, remain unreformed. deals.

Translation: “’Unreformed’ means we plan to charge you more and pay you less, but there still are some crumbs, which we also plan to take, if you let us get away with it.

“Fortunately for us, you don’t understand that the federal government’s finances are different from your personal finances. While you struggle to find the dollars to pay your bills, the federal government never can run short of dollars (unless we impose a stupid Debt Ceiling or even stupider austerity). So we tell you the debt is ‘unsustainable,’ and the deficit must be reduced, and you never even have the curiosity to ask, ‘Why?’

“Amazingly, there still are innocents among you who actually believe the government wants to help you and to grow the economy and to reduce unemployment. You even doubt that the politicians are being bribed to vote against you.

“Well, will the following convince you, or are you hopeless?”

Billionaires for Austerity: With Cuts Looming, Wall Street Roots of “Fix the Debt” Campaign Exposed

A new investigation reveals how billionaire investors, such as Peter Peterson, have helped reshape the national debate on the economy, the debt and social spending.

Between 2007 and 2011, Peterson personally contributed nearly $500 million to his Peter G. Peterson Foundation to push Congress to cut Social Security, Medicare and Medicaid — while providing tax breaks for corporations and the wealthy.

Peterson’s main platform has been the Campaign to Fix the Debt. While the campaign is portrayed as a citizen-led effort, critics say the campaign is a front for business groups. The campaign has direct ties to GE, JPMorgan Chase, Morgan Stanley and Goldman Sachs. Peterson is the former chair and CEO of Lehman Brothers and co-founder of the private equity firm, The Blackstone Group.

Translation: “Pete Peterson is a great and generous patriot, who unselfishly spends an astounding $500 million of his own money, just to better the lives of us American citizens. Right? So, please don’t assume he really is spending all that money to better his own life by increasing the gap between the rich and the rest, thus growing his power over us. No, he’s just a benevolent soul, wanting to help you. (Help you starve, that is.)”

Anyone who thinks Pete Peterson’s millions are not bribing politicians (Hello, MMT), can be the proud owner of a bridge I plan to sell.

Hoover, Smoot and Hawley. Obama, Bowles and Simpson. You who helped destroy the lower- and middle-income classes and who helped raise unemployment to starvation levels: Your names long will be remembered.

Your legacy is assured.

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


3 thoughts on “-Hoover, Smoot and Hawley reincarnated as Obama, Bowles and Simpson

  1. The Buzzards Circle the Fiscal Cliff
    February 27th, 2013
    in Op Ed, syndication

    Krugman is Right about Simpson-Bowles: The Buzzards Circle the Fiscal Cliff
    by L. Randall Wray, New Economic Perspectives

    In a powerful piece, Paul Krugman has blasted Alan Simpson as an ignoramus when it comes to federal government budgets. He rightly wonders why anyone takes this nutter seriously

    [read the article at the above link]


  2. 1.) “We tell you the debt is ‘unsustainable,’ and that the deficit must be reduced, and you never even have the curiosity to ask, ‘Why?’”

    Do average people lack curiosity? Or do they smugly refuse to face reality?

    Is it ignorance? Or is it selfishness? (“Everyone but me is a welfare queen.”)

    Is it brainwashing? Or is it a childish urge to be “right” instead of prosperous?

    Are average people victims? Or are they self-righteous morons who deserve the genocide they beg for?

    These questions are rhetorical; not meant to be answered. I’m just dismayed that average people defend their slavery.

    Not all average people are smug, self-righteous cretins. Many people just don’t care. Their eyes glaze over. They have no opinion, and no interest in the topic of money and prosperity.

    They too serve the 1%.

    2.) Rodger alludes to the Smoot–Hawley Tariff Act of 1930, which raised U.S. tariffs to record levels on over 20,000 imported goods. As a result, imports and exports were both cut in half, causing prices for everything to double, thereby triggering the 1930s depression.

    My point is that most people assume that the 1930s depression was triggered by the Wall Street Crash of October, 1929. I say this is incorrect. I say that the real cause of depressions is always bad government. The worse the economy becomes, the more politicians scream for austerity. The more austerity kills us, the more politicians claim that austerity is the only thing keeping us alive.

    3.) Rodger says, “History will view Obama, Bowles and Simpson similarly, but perhaps even more harshly.”

    Hoover had a large dam named after him. Obama is even worse than Hoover. Hence there is already a long and growing list of schools, streets, and other things named after Obama. The worse he becomes, the more he is cherished.




  3. In response to that video with Peter G. Peterson…


    The 1% always want to increase their power over the 99%, but why does Pete Peterson insist on destroying Social Security in particular?

    I think Peterson’s obsession began in 1985 when he co-founded the Blackstone Group, a private equity firm that specializes in destroying American companies in order to loot them. Over the years, Peterson collected $2.8 billion by undermining the fabric of American society, but what really thrilled him was the destruction of countless lives. People like Peterson get a rush from mass murder, especially when they are praised for it. (And yes, it is mass murder. How many divorces, suicides, and ruined families has Peterson caused? How much desperate crime? How much substance abuse? How much poverty? How much agony?)

    Over time as Peterson built his Dark Empire of Despair (the “Blackstone Group”), he developed a twisted dream that became his life’s ambition. Just as he destroyed and looted countless companies (along with many thousands of lives) he would destroy and loot Social Security (along with many millions of lives). He became like Goldfinger of James Bond fame, dreaming of taking Fort Knox – except Peterson would take Social Security. It would be his magnum opus, his crowning achievement. What started as a grand ambition soon became a burning obsession, because the goal always seemed so very close, yet just out of reach. Just BARELY out of reach. Today the dream seems closer than ever, because of austerity mania. And since there are countless parasites that take Peterson’s money to shill for him (e.g. the Fix-the-Debt maggots), Peterson has a vast club of paid fans.

    In this way, Peterson feels that he still “matters” despite being near the end of his meaningless life (he will be 87 in June).

    This is also my reading of Alan K. Simpson and Erskine Bowles. By preaching genocide, they still “matter.” By taking with them as many people as possible, they defy death. By clinging to a rope of pure hatred, they stay alive.

    No doubt you think I am wildly speculating. (“That’s a tidy summation, but how can you claim to know what Peterson thinks?”) However I see no need for cautious euphemisms, protective padding, or “in-depth analysis.” Peterson is a demented dwarf who delights in destroying regular people. Period. He likely envies regular people. He has contributed nothing to the world — except pain. In the grand scheme of life, he is a loser, as is everyone else who calls for austerity. Losers one and all.

    I’m serious. These bastards KNOW they could have done something useful with their lives, but they instead wasted all their years as common thieves. The truth gnaws at them, and their constant denial of the truth is what sustains their hate. They loathe themselves, and they project this self-loathing outward.

    In sum, the world is full of common thieves and immensely wealthy losers. They do immense damage, but let us not envy their power. Let us see them as the wretched maggots they are.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s