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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Deficit Reduction Causes Poverty
By formula, deficit reduction (a.k.a. “austerity”) impoverishes the economy. The most common measure of the economy is Gross Domestic Product (GDP). The formula for GDP is:
GDP = Federal Spending + Nonfederal Spending – Net Imports
Deficit reduction requires a reduction in Federal Spending (green bar) and/or an increase in taxes, which reduces Nonfederal Spending (blue and red bars). Deficit reduction always impoverishes an economy, a harsh lesson the euro nations have been learning.
America will learn the same lesson, as deficit reduction becomes a reality.
National Center for Children in Poverty (NCCP)
There are more than 72 million children under 18 years old in the United States.45 percent – 32.4 million – live in low-income families.
22 percent – 16.1 million – live in poor families.Nearly 16 million children in the United States – 22% of all children – live in families with incomes below the federal poverty level – $23,021 a year for a family of four.
Research shows that, on average, families need an income of about twice that level to cover basic expenses. Using this standard, 45% of children live in low-income families.
Most of these children have parents who work, but low wages and unstable employment leave their families struggling to make ends meet. Poverty can impede children’s ability to learn and can contribute to social, emotional, and behavioral problems.
Poverty also can contribute to poor health and mental health. Risks are greatest for children who experience poverty when they are young and/or experience deep and persistent poverty.
Deficit reduction causes poverty, which in turn, causes poor education, poor housing and poor family environment, poor nourishment, sickness, crime, mental illness and low intelligence. No secret there.
Epigenetics
But what has not been realized is, these effects – the physical sickness, mental illness and low intellegence – can plague many generations into the future, possibly forever..
THIS WEEK
Epigenetics: How our experiences affect our offspringIn a quiet scientific revolution, researchers have come to realize that genes aren’t a fixed, predetermined program simply passed from one generation to the next. <bIInstead, genes can be turned on and off by experiences and environment.
What we eat, how much stress we undergo, and what toxins we’re exposed to can all alter the genetic legacy we pass on to our children and even grandchildren.
And not just grandchildren, but far beyond them:
Science News
From Great Grandma to You
Epigenetic changes reach down through the generations
By Tina Hesman Saey, April 6, 2013Susan Murphy, a researcher at Duke University, studies links between a mother’s diet and chemical exposures during pregnancy with the child’s later health. She and others have established that what happens (in the womb) can influence a child’s health for life.
Now, animal studies and a smattering of human data suggest such prenatal effects could reach farther down the family tree: The vices, virtues, inadvertent actions and accidental exposures of a pregnant mother may pose health consequences for her grandchildren and great-grandchildren, and perhaps even their offspring.
The resulting health effects are not produced by altering DNA itself. Rather they stem from changes in chemical tags on DNA or its associated proteins, or to actions by RNA, another type of genetic molecule. All of these are exactly the types of changes that scientists have always assumed cannot be inherited. Their very name, epigenetic, literally means “over and above” or “beyond” genetics.
Part of your risk of disease may be determined by what your great-grandparents ate, not just the genes they passed on. One implication is that epigenetic programming becomes permanent and gets passed along to future generations.
Summary
Deficit reduction causes poverty. The adverse consequences of austerity can degrade the human species for many generations, possibly affecting human evolution, forever.
That is the bleak future austerity now may create for our grandchildren and beyond.
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 
1.) “Deficit reduction causes poverty, which in turn causes poor education, poor housing and poor family environment, poor nourishment, sickness, crime, mental illness and low intelligence. No secret there.”
Yes, but on the bright side, deficit reduction is a boon to the private prison industry. The more inmates, the more profits for prison owners and rich stockholders. And in the pursuit of maximum profits, the private prison industry cuts costs, thereby subjecting inmates to apalling conditions such as inedible “food.” This results in non-stop inmate lawsuits. However the private prisons do not pay for lawsuits. No, local taxpayers pay. It’s written into private prison contracts.
Once again the promise to “save taxpayers’ money” always triples or quadruples taxpayers’ costs. And in this case it puts more and more taxpayers into prison. Eventually one half of the total population will be guarding the other half in prison.
It’s part of the mass privatization wave.
Private prison owners bribe politicians to make it happen.
2.) “The adverse consequences of austerity can degrade the human species for many generations, possibly affecting human evolution forever. That is the bleak future we now may create for our descendants.”
Indeed. Nuclear waste, non-degradable trash, and now genetic damage on a mass scale. Collectively, man is dooming himself to extinction. And when we are gone forever, what difference will it make that some of us had billions in our digital bank accounts?
The late philosopher / astronomer Carl Sagan opined that man gained dominance by developing a large brain in a short time. However, he said, that same large brain made the human species quite insane, collectively speaking.
The “Agent Smith” character in the first “Matrix” movie said humans aren’t insane. Humans are simply viruses. We move to an area and we multiply until we consume all natural resources. Then the only way we can survive is to infect another area. And when we have infected all areas, we eat each other.
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Here’s an interesting observation:
Obama goes on and on about how important it is to enact gun control legislation because it’s the right thing to do for the sake of our children
But then he doesn’t seem to care at all what effect comes to austerity measures (aka deficit reduction) will have on those same children. (In fact, austerity will likely have a much more serious and deleterious effect on a far greater number of children than all the shootings in the nation combined!).
Why is that? (rhetorical question, btw)
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another insightful post, rodger!!
incidently, your fellow mmt’er bill mitchell down in australia has occasionally made statements along these lines, though not from the “epigenetic” angle.
one way i like to look at it is from a technological standpoint. look at how fast technology has advanced since the late 1800s (though it certainly could (and should) have been faster), and then compare that to the preceding 3 or 4 millenia.
one could argue that, for most of human history, in most of the world, “deficit spending” has been too low. so, one could argue that the human race as a whole has been suffering from some sort of mass epigenetic “illness” (for lack of a better word) for quite some time now.
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