●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.
Americans always have seen this nation as fundamentally middle-class. We deplore royalty and aristocracy. Our politicians feign middle-class roots, or claim a Horatio Alger rise from poverty.
We sneer at the lower classes as, at least partly, deserving their poverty and somewhat dishonest. We despise the upper classes as not deserving their wealth and significantly dishonest. And, we identify with the middle class as being solid, honest, real Americans.
The “American dream,” — married, children, good job, home in the suburbs — is a middle-class dream.
Today, Barack Obama, elected to a final term, focuses on his life after office and on his legacy. Will he and his children know wealth? Will they hobnob with the rich and the famous? Will there be grossly over-paid speeches before adoring crowds? Will he be received in the halls of power. Will he be Bill Clinton?
And how will history rank him?
The two questions, wealth and legacy, are intertwined, for while Obama does not want to be considered a “President-for-the-rich,” he is acutely aware the rich have the financial power to give him the life to which he now has become accustomed, and they have the media power to write history.
He must cater to the rich, by giving them what they want, so they will give him what he wants. They, after all, have given him what he has wanted thus far, and he understands they can continue to do so.
More specifically, his fealty must be given, not to the rich, but to the super-rich, the upper .1% income/wealth people. They have more income and/or wealth than the rest, the 99.9%.
The key word is “more.” Being in the upper .1% is not an absolute measure; it is a comparative measure.
Years ago, being an American millionaire would have put you well into the upper one-tenth-of-one-percent (.1%). Today, it barely gets you into the one percent (1%), and nowhere near the .1%.
The difference between the super-rich and the rest of us is the “gap.” If there were no gap, everyone would be equal and no one would be rich or poor.
When the gap widens, the super-rich grow richer and more powerful, which is why the super-rich do not care about their absolute wealth and income. The super-rich care about the gap.
There always will be a large cap between the super-rich and the poor, so for Barack Obama to curry favor with the rich, he must help them increase the gap between the rich and the middle class. That is what they really want, and that is what they pay for.
He either must:
A. Increase the wealth and income of the super-rich, and/or
B. Decrease the wealth and income of the middle class.
But there is one other, less obvious requirement:
C. Obama must seem to favor the poor.
In a classic “Nixon-goes-to-China,” seeming to favor the poor provides an anti-rich disguise, that allows Obama to crush the middle class with minimal objection from the middle class.
He safely can help he poor, so long as he punishes the middle.
US funding bill to make sequester cuts permanent
By Andre Damon, 19 March 2013
Hundreds of thousands face unpaid furloughs
Congress is moving to make permanent $1.2 trillion in spending cuts. On top of these cuts (are) provisions to freeze federal pay through the end of this year.
Leon Panetta said that the “vast majority” of the Defense Department’s 800,000 civilian employees would take pay cuts of 20 percent.
Federal employees are part of the hated “big government,” so punishing federal employees is considered just and proper, engendering scant outcry from the public. But, of course, federal employees are middle-class Americans. Cutting their pay widens the gap.
Obama is resolutely pushing for cuts in Social Security benefits and hundreds of billions of further cuts in Medicare, as well as the introduction of means-testing, which will begin the transformation of the medical insurance program for seniors from a universal program to a poverty program, a major step toward its destruction.
AP correspondent Peter Arnett writing about Bến Tre city, quoted a U.S. military official: “It became necessary to destroy the town to save it.” Obama long has spoken of “saving Social Security” by cutting it.
Nearly 4 million long-term unemployed who receive federal unemployment benefits will see an 11 percent cut in their benefits, or about $130 per month.
These are America’s middle class, being pressed down into poverty. They are portrayed as lazy slackers, who should not be given handouts, but rather made to work (in non-existent jobs) or starve.
The joint goal of the Obama administration and congressional Republicans and Democrats is to manufacture an atmosphere of crisis, in which an immense assault on social services and workers’ living standards can be carried out.
The White House is seeking to spin this historic attack as a boon to the “middle class” and a “fair” and “balanced” approach to the deficit by linking it to token tax increases on the rich. Any such increases, however, would be more than made up for by a “reform” of the tax code that slashes corporate taxes and shifts the tax burden further from the wealthy to the working class.
Whenever any politician uses the words “fair” and “balanced” (as in “fair taxes” and “balanced budget” hold tight to your wallet. They are Obama’s favorite words.
There are dozens more examples (raising FICA is a huge one) — too many for a blog post — but you will be able to keep track of them by asking one simple question, every time you hear about any government action: “Will this benefit or will this hurt the middle class?”
Obama wants to burnish his legacy and his after-office wealth. Ultimately, he will do so, not with historical accomplishment, but rather by sucking up to the .1%.
It is the .1% who will give him his large Presidential library in Chicago. They will hire him for lucrative speaking engagements, ala Bill Clinton. The media, owned by the .1%, will praise Obama for “saving” America’s middle class.
But despite his, and the .1%’s, best paid plans, history ultimately will remember Barack Obama as the man who crushed America’s middle class and America’s dream, all for his own ego, ambition and greed.
His name forever will be linked to Herbert Hoover and to Benedict Arnold.
So much for legacy.
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