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.
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The Economist
China forecast to overtake US by 2016
By Simon Rabinovitch in BeijingChina is on track for a fourth consecutive decade of rapid growth and will overtake the US as the world’s biggest economy in 2016 after accounting for price differences, according to a new report by The Organisation for Economic Co-operation and Development (OECD).
The following graph demonstrates that U.S. Gross Domestic Product (brown bar) equals the total (orange bar) of Personal Consumption Expenditures (blue bar), Gross Private Domestic Investment (red), Net Imports (dark green) and Government Consumption Expenditures and Gross Investment (light green).
President Obama and both political parties have vowed to reduce federal deficit spending via increased federal taxes and/or reduced federal spending.
Ask yourself, what effect will will tax increases and/or reduced federal spending have on:
1. Personal Consumption Expenditures?
2. Private Domestic Investment?
3. Net Imports?
4. Government Expenditures and Investment?
By definition, reduced federal spending will reduce #4. Tax increases or spending decreases will reduce #s 1 and 2. The effects on #3 will be mixed.
Without any question, federal deficit cuts will reduce the three key measures used in calculating GDP, therefore reduce economic growth.
When politicians talk about reducing the deficit, or “living within our means,” or the “unsustainable” deficit, they absolutely, positively are talking about reducing America’s economy. Period.
So when you are shocked that our weak economy continues its slow growth or even begins to slide, and China passes the U.S. as the greatest economy in the world, you’ll know whom to blame.
No, it isn’t the politicians. It’s you, who have allowed yourself to be duped by the most obvious of scams. Despite repeated warnings, for several years, you have rejected the facts, and continue to cling to the brainwashing you have received.
When you were told the deficit and debt are too low, you sneered rather than looking at facts. When you were told federal taxes should be cut and FICA specifically, should be eliminated, you babbled about inflation, without trying to understand inflation’s causes, cures and likelihood.
When you were told America is “broke” and will run short of dollars to pay its bills, you accept the obvious lie, without protest.
When you were warned the Obama administration and the Republicans are being bribed by the upper .1% super-rich, to widen the gap between the rich and the middle, you ignored the warnings, and instead mocked any who protested, as being “troublemakers.”
Now, America is being shoved down the dark chasm of economic chaos — shoved by the .1% to widen the gap. But, you offer no protest.
Rather, you accept the lies of the rich-owned media and the rich-owned politicians who nonsensically tell you that cutting the basic elements of GDP actually will increase GDP.
They tell you that applying leeches will cure your anemia, so you willingly and without thought, apply them. The penalty for ignorance is slavery.
America has had great generations and weak generations. But you are the deluded generation. Because of you, we no longer will be the greatest, but a has-been on the world stage.
The experiment known as “America” is failing. The American dream is fading. You will suffer. Your children and grandchildren will suffer. Everyone you love will suffer.
And you have only yourself to blame.
Rodger Malcolm Mitchell
Monetary Sovereignty
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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
#MONETARY SOVEREIGNTY
#Monetary Sovereignty - Mitchell 
Brilliant plot!
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Great post. Keep them coming Rodger
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You?? Who is you? Me?? While the vast majority of the population may reside in the “You” world who you are pointing your finger toward, the vast majority who understand spend most of their time arguing semantics, splitting hairs about who is most right about their pet economic ideas or theories and useless stereotyping of others. What is it about those understand the realities that makes them believe arguing among themselves will lead to a more positive result? MS, MMT, MR, the banks create money, the federal government creates money, blah, blah, woof!
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With whom should we argue? What is your proposal?
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Quite posibly you might begin with focusing your arguments with the professors of economics at our institutions of higher learning who misinform their students consistantly. The works by individuals such as Lerner are not emphasized. Even their hero Friedman’s ideas were very similar to Lerner’s until he became thoroughly deluded. He even supported government deficits when the economy was not producing full employment! You will admit that economics education is in a sorry state. The students leave and continue to spread the nonsense they are exposed to. Your arguments should be with them rather than each other.
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Certainly not amongst those who share very similar ideas. What is my proposal? First bring to the fore front those ideas with which you agree in lieu of what seems like a never focus on the small issues with which you do not Present those important issues all that you can. Get your own ass out there in order to spread the knowledge persons like the MMT economists and you have spent time amassing. Join with others who have made the decision that alternatives to this entire destructive system are available. Make certain they understand economic reality and the better society that is made possible by the use of fiat currency in a monetarily sovereign nation. Arguing and splitting hairs over what I believe to be minor issues does not present a unified front. How on earth do you convince the public you are right when it appears non-coherent? One’s efforts should be focused. It’s time for growing up as well as waking up. Save the arguments for those who spread the lies that support the dysfunctional current system.
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And please excuse the typos, I am experiencing a problem with the lap top I am using.
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conclusion?
1% used to reture to Switzerland;
now they’re planning on Singapore
don’t give a flying @#&k about the USA, or their little citizens
Is that stupid & shortsighted? Of course. 1% hoarding never did correlate with 1% intelligence.
Which is why static wealth never predicts dynamic outcomes.
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Another outstanding post.
The actual size of China’s GDP is a topic of debate, but it will soon eclipse America’s. It may already have, if we consider only the real economy, separate from the financial economy.
This is not a huge deal, since living standards are more important than GDP comparisons, but many people will whine about it anyway. Those people have only themselves to blame if they support austerity. They are the “You” that Rodger refers to.
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AUSTERITY NOW
Just before 5:00 am yesterday morning, after an all-night debate, the Senate adopted its first budget blueprint in four years.
The White House praised the Senate plan, saying it “will create jobs and cut the deficit in a balanced way.”
(“Balanced” means it will cut spending AND increase taxes.)
The White House says, “The Senate budget cuts wasteful spending, makes tough choices to strengthen entitlements, and eliminates special tax breaks and loopholes for the wealthiest Americans to reduce the deficit.”
“Wasteful spending” means social programs
“Strengthen entitlements” means cut entitlements
“Eliminate tax breaks and loopholes for the rich” means increased taxes on everyone but the rich (who pay zero taxes).
“Reduce the deficit” means widen the wealth gap
Sen. Patty Murray (D-Wash.), chairwoman of the Budget Committee, said that tax increases would “Strengthen our economy and restore our nation’s fiscal health.”
Sen. Rand Paul (R-KY) presented his own 2014 budget blueprint on Friday that seeks to one-up Paul Ryan by balancing the federal budget in only five years.
Mr. Paul calls his suicide pact, “A Clear Vision to Revitalize America,” saying, “If we don’t make difficult choices today, we will be faced with even more difficult and painful choices down the road.”
It’s the standard line. “The only thing saving you from ever-increasing pain is ever-increasing pain.”
Mr. Paul will likely run for the GOP presidential nomination in 2016, on a platform of austerity.
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CYPRUS BANK HEIST IS ON AGAIN
Cypriot politicians will steal directly from depositors’ accounts after all.
German finance minister Wolfgang Schaeuble told Cypriot politicians that if they fail to comply with his dictates, and do not go through with the heist, then Schaeuble will not create another 10 billion euros out of nothing, and dump it onto Cyprus as debt.
On Friday, Cypriot politicians decided to steal from state-owned pension funds, but Mr. Schaeuble forbade it. Hence the politicians went back to stealing deposits. They had asked Russia for more loans, but Russia said no, since more debt will only make the situation worse, and Troika bankers will eventually pocket any loan money anyway. Therefore the politicians will get more debt from Wolfgang Schaeuble, in addition to stealing from the people who elected them.
For bank deposits below €100,000, politicians will steal 1%. For deposits above €100,000 at the Bank of Cyprus, politicians will grab 20%. There are said to be 10,000 accounts at the Bank of Cyprus of more than €100,000 worth a total of €38 billion, 20% of which = €7.6 billion. (Therefore, if you had an account with $150,000, you will find $30,000 stolen whenever the banks re-open.) Politicians will also steal of 4 percent from deposits at all other banks, including the 26 foreign banks that operate in Cyprus.
The heist will drive away wealthy depositors, and will destroy the Cypriot economy, since the island nation depends on tourism and financial services. However Wolfgang Schaeuble doesn’t care. He says the Cyprus business model was “never sustainable” anyway. Thousands of bank employees will be fired. Laiki bank will close forever, its toxic assets moved to a “bad bank,” and its deposits moved to the Bank of Cyprus, where they will be taxed to pay rich investors.
Depositors will want to close their accounts, but capital controls will prevent this. Everyone is at the mercy of the bankers and their puppet politicians. .
The Great Cyprus Bank Heist still requires approval by the full Cypriot Parliament and their Troika masters. Approval will be today (Sunday 24 Mar) when Cyprus president Nicos Anastasiades arrives in Brussels to finalize the job.
President Anastasiades took office on 28 Feb, after vowing that he would never steal from depositors. Indeed, Cyprus banks have always promised depositors that their money would be protected. That’s why why more people didn’t take out their money. Everyone trusted the bankers and their puppet politicians. Everyone was set up.
Cyprus banks could simply default on government debt, in which case rich bondholders would be screwed instead of ordinary depositors. (Bondholders could take a “haircut” like that given to buyers of Greek government debt last year.) Or Cyprus could simply dump the euro currency. However, Cyprus politicians will do neither, since they want to stay on the Troika payroll.
Asked on Saturday whether politicians had a backup plan if they did not get away with their heist, government spokesman Christos Stylianides, said, “No, we are doomed.” (Translation: if we don’t steal from our own people, we won’t get any more paychecks from the Troika.)
Averof Neophytou, deputy head of the governing DISY party, does not blame greedy bankers. He blames innocent depositors, saying, “We all share in the responsibility of bringing this place to this state.” Thus, ordinary people will be penalized for things entirely out of their control.
As soon as Cypress adopted the euro currency (31 Dec 2007) Angela Merkel and Wolfgang Schaeuble urged Cyprus banks to make loans to Ireland, Portugal, and especially Greece. Under their guidance, the Cyprus banking system became run like a private hedge fund, growing in size from 78 billion euros to 126 billion euros today. Now Merkel and Schaeuble will destroy Cyprus, while stealing loot from Russians and from ordinary Cypriots.
Instead of simply stealing money, Cypriot politicians could have encouraged citizens to put 20 per cent of their savings into a government savings bond. Cyprus has vast natural reserves and has nationalized industries that can be used to secure the bonds. But the Troika powers want to use Cyprus as a test case.
THIS HEIST IS ONLY THE BEGINNING. There will be more thefts, since Cyprus politicians must service the €10 billion in added debt from Wolfgang Schaeuble and the Troika.
Moreover the thefts will spread. Italy, Greece, Portugal and Spain will be next. And since deposits will be stolen from all banks, including foreign-owned banks, no one in the 99% is safe anymore. (What will the life be like when every bank depositor in the Western world starts worrying about whether politicians will raid his account?)
With each heist, bankers and their puppet politicians will tell depositors, “Give us more, or we’ll take it all!”
And each time, depositors will respond, “Ten percent is better than one hundred percent. Besides, the government is getting its fiscal house in order.”
There will also be increasing “bank holidays” as panic and instability spread.
It seems that global madness is inherent in man.
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By the way, the corporate media claims that any nation which dumps the euro as its currency will face “disaster.”
Right.
In 2002, fifteen nations adopted the euro, thereby dropping currencies they had used for centuries. In 2007 Sovenia adopted the euro. In 2008 it was Cyprus, Slovakia, and Malta. In 2011 it was Estonia. In 2013 it will be Latvia, Lithuania, and possibly Poland.
Any of these nations can dump the euro as easily and smoothly as they adopted it.
PEASANT: “If we stay in your torture dungeon any longer, I will surely die.”
BANKER: “No, my torture dungeon is the only thing keeping you alive.”
PEASANT: “Wow. Thanks for your generosity.”
BANKER: “No problem. I’m here to help. Now hold still while I carve the next hunk of flesh out of you.”
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no, rodger, it’s not OUR fault. every human being comes into this world more or less a blank slate.
so, unless, something rare happens where mommy or daddy, or a school teacher or grandpa or somebody out there sits us down and explains to us what “the system” is and how it works day-in day-out there’s just no way for us to understand it unless by chance we get that explanation or something out of the blue happens which forces us to question everything we’ve been told.
the inner workings of “the system” are not transparent so the average person is not going to figure it out on his own. that’s the “beauty” of it all and why it was created in the first place.
blaming one individual here or another one there is a waste of time. why? b/c that leads people to think, “oh, well, we just need to replace so-and-so and that’s it, our problems are solved.” anyone with half a brain knows that’s not how it works in the real world.
regarding china, recently on his blog, your friend warren mosler said that he took a look at the recently released chinese budget and, reading between the lines, you can see that it calls for a whopping 50% increase in deficit spending. so, this “forecast” you reference above was an easy call to make.
now, everything becomes clear. this is what “they” (the exporter class) have wanted all along. china has the largest population on the planet. “they” have been pressing them for decades now to dramatically increase spending, b/c with that kind of population and the potential demand coming from that, “they” can completely dismiss their local populations and focus on making money off the chinese. and that’s what the austerity in the Eurozone and here in the US is all about. “they” want china to become the new US, i.e. the world’s net importer. and they want us to be the new “china.”
that, i think, is THE PLAN and i, for the life of me, haven’t heard anybody out there come up a plan for turning this thing around other than, “let’s vote the bastards out (and replace them with a new set of bastards)” or “let’s go out and march in the streets and get the crap beaten out of us by the cops!!”
“the system” itself has to be changed. the monetary system (and the concomitant for-profit business model) has outlived its purpose.
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Yes, it is the voters’ fault. I offer this conclusive proof:
Voters elected Michele Bachmann.
Even the least educated, most brainwashed boob would know Michele Bachmann is an incompetent, bigoted fool. So to vote for her, the voters must have purged their brains of all common sense.
That is why they vote for their own suicide.
Oh, and did I mention Herman Cain, Rick Perry and Rick Santorum? People cast votes for them, too.
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No system changes in any direction except the pressures exerted by those motivated to survive. There’s a huge army of citizens, but still few very motivated. Yuu, if YOU want your grandchildren to survive with better, not just the same options, please contact me. RMM has my contact info.
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