●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.
I wrote this as a comment on the previous post, but on second thought, I felt it deserved a post of its own.
President Barack Obama has proposed spending cuts that will crush the middle class, but John Boehmer wants even bigger cuts.
The National Memo
Boehner Rejects Obama’s Offer To Cut Social Security
House Speaker John Boehner (R-OH) preemptively rejected President Barack Obama’s upcoming budget proposal Friday, slamming the president’s offer to cut Social Security as “only modest entitlement savings.”
AFL-CIO president Richard Trumka vowed that America’s largest labor federation would oppose any budget deal that included chained CPI, saying the index is “another example of how Washington creates fancy-sounding phrases to mask stupid policies that only work for the rich.”
The public seems to stand with Trumka; recent polling suggests that Americans strongly oppose any Social Security cuts.
The budget reportedly includes several other cuts, such as $400 billion in health care savings (including additional means-testing for Medicare,) and $200 billion in cuts to farm subsidies, federal employee retirement programs, and unemployment compensation.
Obama’s budget also aims to raise $600 billion in new revenues, including an increased cigarette tax, which would be used to finance the president’s proposal for universal pre-Kindergarten.
It sure looks like a fierce battle except, it’s not a real battle. It’s the pro wrestling version of combat. Obama and Boehner are putting on a show for the public. It goes like this:
Obama: “O.K. John, I’ll propose large cuts. You demand gigantic cuts. I reluctantly will offer to compromise on huge cuts.” The fools will think I’ve done my best and you’ll look like you’re being reasonable. We both get paid and no one gets hurt.
Both Obam and Boehner and their parties are bought and paid for by the upper .1%, so both will do as they are told, i.e. widen the gap between the rich and the rest. The rich want power, not just money, and power is what the gap gives them.
Since both parties are criminal, I’m beginning to wonder — dare I say it — whether this nation is headed for revolution. I sure hope not, but with the President and the entire Congress being owned by the .1%, for whom does one vote?
The people don’t understand what’s happening — they are brainwashed with debt-cutting lies — especially since the media also are owned by the rich.
The people pinned their hopes and dreams on Obama, but his greed got the best of him. He sold his soul for a Presidential Library, lucrative speaking engagements for his wife and him, and big jobs for his daughters.
As for the people, in frustration and feeling there is nowhere to turn, the people may lash out. They lack only a charismatic leader — an empathetic, Rooseveltian figure — to give them voice and strength.
Yes, it could happen here. Unfortunately, revolutions often result in even worse poverty for the middle and lower classes. But when people are killing your kids and stealing your house, you may not think about the subtleties.
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