●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.
China forecast to overtake US by 2016
By Simon Rabinovitch in Beijing
China 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
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