–The voices of evil continue to speak. Are you deceived?

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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Erskine Bowles and Alan Simpson are Co-Chairs of what ironically is named, “The Moment of Truth Project.” If ever there was a moment when these two spoke the truth, that time is well past and long forgotten. A more appropriate name would be, “The Years of Deceit Project.”

On April 19, 2013, they published an Email addressed to “Dear Colleagues and Friends.” The entire letter is reprinted in the Comments section of this post, but I’ll discuss a few passages:

This morning, the two of us are releasing a detailed plan to control our mounting debt and grow the economy.

When you read their letter, you’ll see not one proposal for growing the economy. All their proposals are for deficit cutting, i.e. austerity, which has been an economic disaster everywhere in the world it has been tried.

Our plan, the Bipartisan Path Forward to Securing America’s Future, fleshes out the framework we released this February, which built on the negotiations between Speaker Boehner and President Obama in December. Our plan would save an additional $2.5 trillion over the next ten years, address all areas of the budget, and would put the debt on a downward path over the long-term.

Calling something “bipartisan” is supposed to give it credentials. The reality: “Bipartisan means: The right wing demanded it, the President always wanted it and the left wing acceded to those demands.

No discussion ever is made of how removing $2.5 trillion from the economy can possibly benefit America.

The failure to get our debt under control, reform our tax code, and put our entitlement programs on a fiscally sustainable course is robbing us of the ability to invest in our future and will leave us without the resources we need to meet other challenges facing our nation.

Translation: The failure to reduce the money supply, tax the middle class more and gut Social Security and Medicare, is robbing the upper .1% of the ability to widen the gap between the rich and the rest.

Focus on the incredible notion that increasing taxes and reducing federal benefits somehow would help us invest in the future. It’s like saying, “We need to lighten up by chopping off our legs, so we can run faster.”

That is what passes for a “Moment of Truth” to Bowles and Simpson and the rest of those bought-and-paid-for by the upper .1% wealth group.

It is critical that leaders in both parties come together to put our fiscal house in order if they have any hope of addressing the other challenges and opportunities that we face as a nation.

Translation: “Fiscal house in order” means cut social programs and increase middle-class taxes.

. . . despite multiple efforts from Speaker Boehner and President Obama to reach a “grand bargain,” the country has still done nothing to make our entitlement programs sustainable for future generations, make our tax code more competitive and pro-growth, or put our debt on a downward path.

Translation: The “grand bargain” is President Obama’s long time dream of destroying the New Deal social programs. “Entitlement programs sustainable” means gut Social Security, Medicare, Medicaid and aids to the poor, in order to save them.

This entire program is based on the theory that the United States federal government is short of money, but you poor and middle classes have too much money. So you must give more of your money to the government.

Last December, the negotiating parties were as close as they’ve ever been on a plan to put our fiscal house in order.

When you read the full text, you’ll see repeated use of such vague, meaningless euphemisms as, “fiscal house in order,’ “grand bargain,” “sustainable for future generations, “moment of truth,” “more competitive and pro-growth,” “addressing our challenges, “principled compromise,” “better future for our grandchildren.”

These phrases are the Simpson/Bowles equivalent of Orwell’s: “War is peace. Freedom is slavery. Ignorance is strength.”

Taken together, these policies would put our debt on a clear downward path as a share of the economy while protecting the recovery, promoting long-term economic growth, protecting the most vulnerable in society, and ensuring our entitlement programs remain fully available to future generations.

What you will not see is any evidence that tax increases and spending decreases “protect the recovery, promote long-term economic growth,” blah, blah, blah. No, you will not see even one ounce of data showing how this plan would grow the economy, reduce unemployment or in any way at all, better the lives of the poor and the middle classes. The reason: Such data do not exist.

At the end of their letter is a table showing their recommended deficit cuts. Here are just a few. As you read them, ask yourself, “Whom they will impact most, the rich or the rest?”

Health Care: $585 billion
Military health and retirement: $100 billion
Higher education: $35 billion
Increase User Fees: $50 billion
Chained CPI: $280 billion

In summary, here is your “Moment of Truth”: Simpson/Bowles is a lie — a prescription for economic disaster, a destruction of the lives of Americans living and yet to be born, and a spectacular widening of the gap between the rich and the rest.

The names of these men will live in infamy. The program they propose is a disgrace, exceeded only by the disgraceful ignorance of those who believe it.

Monetary Sovereignty

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

7 thoughts on “–The voices of evil continue to speak. Are you deceived?

  1. Full text of the Simpson/Bowles letter:

    April 19, 2013
    Dear Colleagues and Friends,

    This morning, the two of us are releasing a detailed plan to control our mounting debt and grow the economy. Our plan, the Bipartisan Path Forward to Securing America’s Future, fleshes out the framework we released this February, which built on the negotiations between Speaker Boehner and President Obama in December. Our plan would save an additional $2.5 trillion over the next ten years, address all areas of the budget, and would put the debt on a downward path over the long-term.

    After serving as co-chairs of the National Commission on Fiscal Responsibility and Reform (Fiscal Commission) two years ago, we have travelled the country speaking to hundreds of thousands of Americans about our debt challenge. We’ve met American men and women of all different ages, incomes, backgrounds, and ideologies – and with many different ideas of how to fix our economy. Yet all shared two things in common – a thirst for the truth and a willingness to be part of the solution if everyone is in it together.

    The failure to get our debt under control, reform our tax code, and put our entitlement programs on a fiscally sustainable course is robbing us of the ability to invest in our future and will leave us without the resources we need to meet other challenges facing our nation. And moving forward will be out of our reach as long as we continue to “pass the buck” on the debt crisis. It is critical that leaders in both parties come together to put our fiscal house in order if they have any hope of addressing the other challenges and opportunities that we face as a nation.

    To be sure, some progress has been made. Yet despite multiple efforts from Speaker Boehner and President Obama to reach a “grand bargain,” the country has still done nothing to make our entitlement programs sustainable for future generations, make our tax code more competitive and pro-growth, or put our debt on a downward path. Instead, we have allowed a “sequestration” to mindlessly cut spending across-the-board in all areas except those contributing to spending growth

    We believe there is a better way, and we believe that getting there is politically achievable. Last December, the negotiating parties were as close as they’ve ever been on a plan to put our fiscal house in order. Although they were not able to reach agreement at that time, we continue to believe that agreement is possible.

    The plan we are putting forward is not our ideal plan, it is not the perfect plan, and it is certainly not the only plan. It is an effort to show both sides that a deal is possible; a deal where neither side compromises their principles but instead relies on principled compromise. Such a deal would invigorate our economy and demonstrate to the public that Washington can solve problems, and leave a better future for our grandchildren.

    A summary of our plan can be read here.

    In our plan, we propose roughly $2.5 trillion of specific new deficit reduction measures to add to the $2.7 trillion already enacted. Looking both at the total deficit reduction and the additional deficit reduction in this plan, more than 70 percent of the savings would come from lower spending, with less than 30 percent from revenue. Our plan has five major elements. They include:
    Tighten and Strengthen Discretionary Caps to demand additional efficiency from Washington in place of abrupt across-the-board cuts by restoring 70 percent of the sequestration cuts in 2013 and limiting the defense and non-defense spending growth to inflation through 2025.
    Reform Federal Health Spending to reduce subsidies for better-off beneficiaries, reform and reduce provider payments, reduce fraud, abuse, and overpayments at all levels of the health care system, modernize cost-sharing rules with new cost protections, gradually increase the Medicare age with a buy-in at age 65, and re-orient incentives for doctors, hospitals, lawyers, and beneficiaries to improve the delivery of health care and truly “bend the cost curve.”
    Identify Additional Spending Cuts to reduce various government subsidies, modernize the military and civilian health and retirement systems, improve the financial state of the PBGC, postal service, and Pell Grant program, cut low-priority spending, and impose various user fees.
    Enact Comprehensive Tax Reform which uses a “zero plan” model as a starting point to dramatically reduce the size and number of tax expenditures in the code, sharply reduce rates, improve overall simplicity and move toward a territorial system to promote growth and generate revenue. Tax Reform should be written by the Committees but enforced with an across-the-board tax expenditure limitation.
    Implement Government-Wide Reforms to reduce waste, fraud, and abuse and more accurately measure inflation within the budget and tax code while providing new protections for low-income individuals and the oldest beneficiaries.
    In addition, we call for further long-term changes to make Social Security and transportation trust funds sustainably solvent and limit per capita growth of the total net federal commitment to health care to the growth of the economy over the long-term.

    Taken together, these policies would put our debt on a clear downward path as a share of the economy while protecting the recovery, promoting long-term economic growth, protecting the most vulnerable in society, and ensuring our entitlement programs remain fully available to future generations.

    Thank you for your continued support.

    Sincerely,

    Erskine Bowles and Alan Simpson
    Co-Chairs, The Moment of Truth Project

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  2. Hey Roger,
    this is a great line….
    “No discussion ever is made of how removing $2.5 trillion from the economy can possibly benefit America.”
    I’ve seen you also put deficit reduction into the GDP context. I’ve always been a firm believer that macroeconomics is not really that complicated at all. For example, if GDP is a simple algebraic formula that is the sum of its integer components…..shouldn’t the burden of proof always be on the people who would claim that subtracting from one of the variables will somehow increase the result of the equation? This is the most basic arithmetic imaginable and yet somehow nobody ever questions the conventional wisdom (re: lunacy). Economic thinking should start under the assumption that increasing any of the net spending components of GDP is good for GDP growth and decreasing any of them is bad for GDP growth…..from this simple starting point, its completely illogical that cutting the deficit actually helps the economy….. keep up the good work

    Like

  3. It is necessary to break away from the dictatorship of the banking system. Through a radical shift in policies, it would be possible to protect the deposits of ordinary people, to finance socially useful production, provide safety nets, free education and medical care, and guarantee employment and respectable working conditions. These changes would require a public service for savings, loans and investment. Banking (the service that protects savings and supplies loans for social uses such as productive development) is too important to be left in the hands of a small number of private bankers (the 1%), who, by definition seek only to maximise their profits. Speculation and all activities that support it must be prohibited, and so must all transactions related to tax havens. Since banks use our money, enjoy state guarantees, and must provide the fundamental services society needs they must be socialised (nationalized) and placed under citizen’s control.

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  4. “Social Security is a milk cow with 310 million tits!”
    ~ Alan K. Simpson

    “He means well, but he doesn’t understand economics.”
    ~ MMT Moron

    Simpson calls Social Security recipients “greedy geezers,” even though SS helps to keep millions of disabled children alive, and even though the average “greedy geezer” receives only $13,900 a year (and must give some of it back in taxes).

    Fortunately for Simpson, most people insist that the US government has a “deficit crisis.” (Or is it a “debt crisis”? Most people use the words interchangeably.)

    Indeed, most people are like Simpson. They want austerity for you and me, but not for themselves. The more that austerity causes poverty, the more the 99% envy and resent others, and demand that more austerity for you and me, only to fall into worse poverty themselves. It’s called austerity mania.

    On a different note, in Washington DC the House Chaplain is paid $170,000 a year to open sessions of Congress with a prayer, give spiritual guidance to corrupt politicians like Simpson, and give visiting religious leaders a tour of the Capitol building. The chaplain has a Chief-of-Staff, plus a Director of Communications, and an Executive Assistant, each of which collects $87k per year. The US Senate also has a chaplain, who has his own staff.

    If these parasites were truly “patriots” and “men of God,” they would all fire themselves, and go live in a cardboard box.

    Indeed all Congress critters should do that.

    In this “crisis,” everyone must do his part.

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