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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An Email we just received from AARP (the insurance broker that passes itself off as the voice for the upper age groups) contained this:
Now that President Obama has sent his 2014 budget proposal to Congress, three blueprints for the nation’s fiscal future are on the table.
Here are the three (and only three) plans AARP says are “on the table:”
See anything missing?
Right, AARP doesn’t even mention the possibility of debt increases.
Why doesn’t AARP acknowledge that federal debt reduction (aka “austerity”) always is economically destructive, and has been destructive everywhere in the world it has been tried, and is especially destructive of AARP’s membership, the elderly?
Why doesn’t AARP mention that austerity has failed in Greece, failed in Italy, failed in Cyprus, failed all over the eurozone, even failed in Scotland and England, failed everywhere — and is failing in the U.S.?
Why doesn’t AARP discuss the damage caused by removing dollars from the economy? Why do they simply parrot the upper .1%’s mantra that the federal government debt is “unsustainable” and the government must “live within its means.”
Why doesn’t AARP acknowledged the differences between Monetary Sovereignty and monetary non-sovereignty?
Why doesn’t AARP tell its members the truth — that austerity has failed and always must fail, because austerity removes dollars from an economy, which causes recessions and depressions?
Why doesn’t AARP tell its members that the upper .1% income group wants austerity to punish the lower income groups, widening the gap between the rich and the rest.
Why? Because AARP is a big insurance brokerage, owned, controlled and funded by the rich, whose primary goal is to widen that gap, which gives them more power over the middle and lower-classes.
AARP does not represent the elderly. It represents the very rich.
The .1% have bought the Senate, bought the House, bought Obama, bought many so-called “think tanks” and lobbyists. They own much of the media and are buying more. (The Kochs reportedly are trying to buy the Chicago Tribune’s stable of papers).
The rich own AARP, too.
In years to come, when all the “Whys” have been asked and answered, AARP will be remembered for its treachery.
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 
I woke up to the truth about AARP years ago when I learned that AARP opposed single-payer health insurance. Rodger is correct: AARP is a big insurance brokerage. Naturally they want to eliminate Social Security and Medicare, since they want everyone to pay private insurance companies.
“In years to come, when all the ‘Whys’ have been asked and answered, AARP will be remembered for its treachery.”
Yes, and when austerity has caused so much death and destruction that the masses finally begin to question the lies, the same economists who today demand more austerity will say, “I was against austerity all along.”
And everyone will believe them. As the saying goes, the struggle for freedom is the struggle for memory against forgetting.
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AUSTERITY FOR FUN AND PROFIT
The rich want austerity in order to widen the wealth gap. Professors, politicians, and media hacks want austerity in order to serve the rich, and keep their jobs.
And then there are people like Bill Gross, who alternately attack and defend austerity in order to manipulate markets.
Bill Gross manages the world’s largest bond fund (Pimco’s $289 billion Total Return Fund) and is one of the most widely followed and influential voices in the bond market.
Two years ago he sold all the T-securities in his fund, and warned investors that U.S. Treasuries were dangerous. Today a third of his assets are once more invested in T-securities, which Gross calls one of the least worst investments available, or “the cleanest dirty shirt.”
It’s part of his current (and temporary) mode of anti-austerity. He even told the Financial Times that austerity causes depressions.
“The U.K. and almost all of Europe have erred in terms of believing that fiscal austerity in the short term is the way to produce real growth. It is not. You’ve got to spend money.”
http://www.ft.com/intl/cms/s/0/6c023bdc-a93c-11e2-a096-00144feabdc0.html#axzz2REGJ8pIY
Of course, he doesn’t clarify what “spend money” means. (Government spending? Or private spending / lending?) Nor does he clarify what “short term” means. This is intentional, since Mr. Gross is a trader. He says it is a mistake to think that bond markets demand austerity. Bond investors want growth, but austerity causes credit spreads to widen out, “Even if a country can print its own currency and write its own checks.”
But then he supports austerity…
“In the long term it is important to be fiscal and austere. It is important to have a relatively average or low rate of debt to GDP. The question in terms of the long term and the short term is how quickly to do it.”
Waffling and double-speak.
Half of public figures are deficit hawks who serve the rich by demanding austerity. The other half are deficit doves who demand austerity now, but not now. They say we must reduce the deficit, but we need jobs. Now they sit on one side of the fence, and now the other. As a result, the public never fully rejects austerity.
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AUSTERITY BY ANY OTHER NAME
…is still austerity.
This week, European Commission President José Manuel Barroso said the bloc should place a greater emphasis on policies that stimulate growth in the short term, and less on cutting government spending.
Translation: Barroso wants more austerity, but he calls it “structural adjustment” or “pro-growth measures.” He has vowed to stay the course, even though the euro-zone economy has contracted for six straight quarters (or more, depending on which source you read). Barroso says that public spending cuts alone are not the answer. Europe also needs higher taxes and more privatization — i.e. more austerity. Barroso, as part of the Troika, has promised to ease his attack if euro-zone governments reduce their deficits to 3% of GDP. This of course is impossible, since euro-zone nations must run large deficits to pay their debts, which increases their deficits all the more. Translation: more austerity.
Likewise, the IMF has admitted that the answer is not always budget cuts. Sometimes what’s needed is “fiscal consolidation” (i.e. budget cuts).
Fortunately, most people never catch on. Most people still think the US government has a “debt crisis” and “deficit crisis.” They think the federal government is financed by taxes. (Or is it loans? Or bond sales? Or China? Or gold?) They also cling to the belief that the rich and their puppet politicians are simply “misinformed” regarding austerity.
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