●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.
Last year, this blog published four posts, all with the same title: “You never will know what you have lost.” They describe the invisible effects of deficit cutting, aka “austerity.”
Our wealthy, ruling class continues to promulgate the flat-out lie that the federal government can run short of dollars, and that deficits and the debt must be cut, because they can’t be allowed to grow “forever.”
The exact opposite is true: The federal government never can run short of dollars, and to grow the economy, the deficit must grow — forever.
If you find those facts difficult to swallow, it’s because you don’t understand the differences between Monetary Sovereignty and monetary non-sovereignty. Fortunately for you, this blog contains 950+ posts that describe those differences in simple, complex, technical and non-technical, mathematical and non-mathematical terms.
So there is no reason for you not to understand, if you wish to understand what is happening to you.
One difficulty in exposing the destructive myths of austerity is our inability to detail the hidden harm of deficit cutting. Yes, we can show how deficit cutting causes unemployment and recessions and depressions, how deficit cutting impoverishes the middle class and the elderly and the sick, and further impoverishes the already poor.
And we can show how the whole deficit-cutting enterprise is a scheme funded by the wealthy, to widen the gap between them and us, to increase their already vast power over us.
But we can’t show all the negative effects, because some of them are beyond our ability to predict. Consider research:
Sequester Threatens University Research Funding And Federal Student Aid
The Huffington Post | By Tyler Kingkade 02/27/2013
The impending federal budget cuts known as the sequester, which will go into effect on Friday without action by Congress, are poised to have a significantly negative effect on both public and private universities nationwide. Some forms of federal student aid and funding for a variety of research programs are likely to find themselves on the chopping block.
Several critical revenue streams for universities are at risk: The National Science Foundation, National Institutes of Health and the National Endowment for the Humanities are all subject to cuts that fall within both the 7.6 percent cut to mandatory spending and the 8.2 percent cut to discretionary spending.
Many forms of research will be cut, but what does this mean in practical terms? What will it cost you? How will your life, and the lives of your loved ones, be any worse, because thousands of research projects will be delayed or ended? What does research accomplish, anyway?
No one knows, and since no one knows, I can’t tell you much about the cost of deficit cutting other than to say, “It will cost you plenty, and your life will be much worse than it could have been, and your children will suffer greatly.”
I was reminded of this when I read an article in FT.com:
Telepathic rats solve problems together
By Clive Cookson
Rats have collaborated telepathically across continents in the first use of neurotechnology to transmit thoughts directly between animals’ brains.
Scientists trained rats in Durham, North Carolina and Natal, Brazil to work together to solve problems in return for a drink of water. In the first experiment they had to press the correct lever corresponding to a particular indicator light; in the second they had to distinguish between wide and narrow openings.
Electrodes picked up the brain activity of the first rat, the “encoder”, and fed it over the internet into the brain of its partner, the “decoder”, which had the same levers in its cage but received no visual cues about which one to press. The best decoder rats correctly mimicked their corresponding encoder partners 70 per cent of the time.
Did you see that “electronic empathy” coming? I didn’t. I didn’t expect to see the transmission of thoughts via the Internet – certainly not in my lifetime.
But so what? A rat reads another rat’s thoughts. How does that affect you? No one knows.
Miguel Nicolelis, a pioneer of research into brain-computer interfaces at Duke University in North Carolina, said the experiments could lead to the creation of a biological computer – or “brain-net” – linking multiple brains.
“We cannot even predict what kinds of emergent properties would appear when animals begin interacting as part of a brain-net,” he said. “In theory, you could imagine that a combination of brains could provide solutions that individual brains cannot achieve by themselves. One animal might even incorporate another’s sense of self.”
The words, “brain-computer interfaces” tell me that one day – perhaps one day soon, unless the deficit-cutters have their way – your children may be able to run distant factories at the same time they are eating breakfast at home, simply by thinking. (Visualize the reductions in transportation costs, pollution and global warming. And that’s only the beginning.)
But Nicolelis is talking about interconnected groups – a human brain net – solving problems we cannot even begin to imagine, today.
Or what about interconnecting a human mind with the mind of an animal, and sending that animal to Mars, so that the human can stay safely at home, but simultaneously explore Mars through the eyes of a living creature. By comparison, the Mars Rover is a child’s toy.
Where does research lead us? We don’t know. That’s why it’s “research.” We only can say this: Our world was created by research – a myriad of beneficial surprises that lifted us from bare animal survival to the ruling creatures of this planet. Research is what differentiates humans from all other living creatures.
It will be research that feeds us, houses us and helps us keep from destroying ourselves. Losing research is a disaster of immeasurable proportions.
Research reduction is yet another negative effect of austerity – a penalty for you and your children, courtesy of our wealthy rulers.
Two questions: Who tells you all kinds of research should be cut? What is their motive?
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