●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.
We long have argued that the gap between the rich and the rest is too large, and growing. There are two ways to narrow that gap: Bring down the rich or lift the rest.
A human being of normal intelligence, would opt to lift the lower- and middle-income groups, so that every citizen could have a happier, more fulfilling life. But these are not normal times, as the world, brainwashed by the rich, has turned austerian.
We also have argued that the rich have fostered warfare between the middle- and lower-classes as a “divide and conquer” method for increasing power. Here is a successful example in Scotland:
Call for pensioners to ‘share the pain’ of cuts
Gerry Braiden, Senior reporter, Monday 22 April 2013
Pensioners should share the pain of austerity cuts and pay more tax to promote fairness between the generations in the housing market, a think-tank has warned.
The Fabian Society claims high levels of home ownership among older people threatens fairness, as the wages of middle-income workers stagnate and they cannot afford to buy a home.
It argues pensioners’ taxes should increase, their benefits should be cut, and a tax on property wealth should be introduced.
The Fabian Society is a socialist group, which reminds me of the old line: Capitalists want everyone to be equally rich. Socialists want everyone to be equally poor.
The “logic” of the Fabian Scociety, and of all austerians is: If many people are poor, don’t help them. Instead make those in the middle class poor – “for fairness.”
How such idiocy can survive, demonstrates the power of envy over the power of reason.
It also demonstrates the cleverness of the .1%, for re-directing the envy, normally reserved for the rich, instead to be aimed at the elderly. Thus is the power of money to sway minds.
The report follows previous warnings that the range of universal benefits for pensioners in Scotland such as free care and bus travel may lead to conflict between the generations.
According to the Fabian Society, more than three-quarters (76%) of pensioners now own homes, compared with just over half (58%) 20 years ago, while in the past decade there has been a “dramatic fall” in home ownership among under-45s.
How awful! More elderly own homes, while home ownership of the younger has fallen. Is the cure to help young people afford homes? No, the cure is to make sure the elderly can’t afford their homes. And this will prevent “conflict between the generations.”
The Scottish upper .1% surely must be laughing.
In 1979, the year Margaret Thatcher came to power, middle-income working-age households enjoyed an income 93% above that of middle-income retired households. That figure is now 37%, the study showed.
The society said this had profound implications and there should be a presumption of equality as “old age is no longer a proxy for poverty”. It says the key policy should be to raise £7.2 billion by hiking taxes on pensioners so the 27% they pay as a portion of their gross income would rise to 33%.
Yes, indeed. Let us impoverish our elderly, as that somehow will help our younger people, who then will be saddled with the responsibility to house and feed their newly poor parents. That’s what we call “fairness” in Scotland
These Scottish folks must have received their ideas from President Obama and the U.S. Congress.
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