●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.
Last year, Rod Blagojevich, the Chicago boy, who became governor of Illinois, was sent to prison for 14 years. He tried to sell a Senate seat. Selling is the Chicago way.
Also last year, the Chicago Sun Times published an article titled, “Alderman: ‘you almost have to be a priest to be in public service’,” by Fran Spielman, City Hall Reporter, August 9, 2012. The lead read, “It’s hard to imagine anyone comparing Chicago aldermen to priests, considering the steady drumbeat of corruption that has sent 31 present and former aldermen to prison since the 1970’s.”
Wisecracks about priests and prison aside, 31 aldermen selling their influence is just a small example of the Chicago way.
And then, there was the boss crook, Mayor Richard M. Daley, who sold the Chicago Skyway toll road to his pals. Then he sold Chicago’s parking meters to other pals. Needless to say, tolls and parking costs rose hugely — paid by the poor citizens.
Daley was trying to sell Midway Airport when the criticism reached new heights, so he quit office, and accepted lucrative jobs from his pals. Daley, and his father before him, was a master of the Chicago way.
And now comes Chicagoan Barack Obama and Chicagoan Penny Pritzker:
Chicago business executive Penny Pritzker was introduced Thursday as Obama’s nominee to lead the Commerce Department.
Pritzker, a member of Chicago’s wealthiest family, was an early supporter of Obama’s. With a personal fortune estimated at $1.85 billion, Pritzker is listed by Forbes magazine among the 300 wealthiest Americans.
She played an influential role in Obama’s rise from Illinois state senator to the nation’s 44th president, serving as Obama’s national finance chair in his first campaign for the White House and co-chair of his re-election bid.
Her friendship with the president gives her a unique ability as part of the economic team,” said Chicagoan Bill Daley, commerce secretary under Bill Clinton and White House chief of staff to Obama.
There’s that “Daley” name again, this time belonging to Mayor Richard Daley’s brother, another Chicagoan.
The Pritzker family has had multiple disputes with the Internal Revenue Service about its overseas tax shelters. Pritzker is likely to be asked about the 2001 failure of Superior Bank, based in Hinsdale, where Pritzker was chairman from 1991 to 1994.
The bank gave loans to people who couldn’t afford to repay them and then sold portions of the notes to investors — a strategy similar to one that contributed to the near-collapse of the nation’s economy less than a decade later.
Chairman of a failed bank that created worthless mortgages, then bundled them into worthless securities and sold these worthless securities to investors: That, plus giving Obama hundreds of thousands of campaign dollars, makes good Chicago credentials for commerce secretary.
The U.S. Chamber of Commerce, on Thursday welcomed Pritzker, whose personal network, business credentials and family name have served Obama well.
The U.S. Chamber of Commerce is a huge cheerleader for austerity, i.e. for widening the gap between the rich and the rest.
She has few to no allies within organized labor. Hyatt has long battled the Unite Here union in Los Angeles, Chicago and elsewhere. And Pritzker has been harshly criticized by the Chicago Teachers Union. A union official said she “has a long and storied history as an anti-labor and anti-worker kind of boss.”
Anyone know any pro-union rich people?
Mayor Rahm Emanuel called Pritzker a “champion for our students and our city” who has shown “incredible commitment and leadership in her every business, civic and philanthropic endeavor.”
Remember Rahm Emanuel, Obama’s former chief of staff? Yep, he too is a Chicagoan. He went to New Trier High School in Chicago’s most affluent suburban area, called “the North Shore.” (Disclosure: He was my son-in-law’s classmate.)
According to Wikipedia:
Emanuel was named to the Board of Directors of Freddie Mac by President Clinton in 2000. He earned at least $320,000 during his time there, including later stock sales.
During Emmanuel’s time on the board, Freddie Mac was plagued with scandals involving campaign contributions and accounting irregularities. The Obama Administration rejected a request under the Freedom of Information Act to review Freddie Mac board minutes and correspondence during Emanuel’s time as a director.
Put them all together — Blagojevich (Senate seat), Daley (toll road, parking meters), aldermen (selling influence), Pritzker (failed bank, selling worthless securities), Emanuel (money scandals) — and you have a pattern of greed, we in Chicago refer to as the “Chicago way.”
So when I tell my academic friends, “Barack Obama has been bribed by the upper .1% to gut Social Security, gut Medicaid, gut Medicare, gut aid to the poor” — when I say he has been bribed to support austerity, which has destroyed the lives of ordinary people all over the world — when I accuse him of being bribed to widen the gap between the rich and the rest — when I say these things and people tell me “there is no proof,” I only can shake my head in wonderment at their naivety.
Here is my prediction: You can write it down, and if I’m wrong, you can throw it in my face: The insanely wealthy Pritzker family will lead the way in collecting (i.e putting the arm on rich folks) for a giant Barack Obama Library in Chicago.
The Pritzkers also will “encourage” charitable and other groups to book the Obamas for speeches at monstrous fees.
And their daughters will receive high-paying jobs from rich “friends” of the Pritzkers.
Chicago may have a reputation as a rough, tough town, but we know how to say, “Thank you.”
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