●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
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.
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?”
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
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