●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’ve preached that some (most?) Congressmen are crooks on the payroll of the upper .1% income group, which is why they keep trying to cut the federal spending that benefits the 99.9%. Austerity widens the gap between the rich and the rest, and the wider the gap, the richer they are.
Yet, surely at least some in Congress merely are ignorant of economics, but it’s difficult to identify which, because essentially the crooks and the ignorant say the same things.
Here is the full text of a press release from Congressman Scott Rigell. You decide whether this guy is a bribed crook or simply ignorant:
FOR IMMEDIATE RELEASE
Rigell Backs Bill to Tie Member Pay to Debt Default
On Washington’s fiscal gamemanship: ‘I’m over it‘
Washington, D.C. – Consistent with his efforts to right our country’s finances, reform Congress, and lead by example, today Congressman Scott Rigell (VA-02) cosponsored H.R. 1884 the ‘Stop Pay for Members’ Act, bipartisan legislation that would stop congressional pay if the United States defaults on the national debt. The bill would also prevent retroactive pay.
At this stage, I would say Rigel is crooked, because his “bet” is safe. There is no way our Monetarily Sovereign, United States government, which created the dollar, is sovereign over the dollar, and can create as many or as few dollars as it wishes, ever could be forced to default on any debt, no matter how large.
Further, the current, so-called “debt” is nothing more than the balance of deposits in T-security accounts at the Federal Reserve Bank. To pay them all off, the government would transfer dollars from these accounts to the holders’ checking accounts.
The only risk in Rigel’s bill is that the right-wing debt nuts could refuse to allow this payout, although logically they should welcome it, as it would eliminate all debt. But of course, logic is not the strong suit for the debt nuts, so maybe Rigel is onto something.
“Our debt threatens the very foundation of our Republic. Washington has been playing too close to the train tracks with our national credit rating, and frankly, I’m over it,” said Rigell, a fiscal conservative who has spent much of his time in Washington trying to put the nation on a sound fiscal path. “It’s time to hold Washington politicians accountable for this fiscal mess.”
Typical, ignorant political ranting, that does not accept the fact that the U.S. government is sovereign over the dollar. The government, having created the dollar from nothing, and having created all the laws and rules governing the dollar, can do anything it wishes with the dollar.
If Congress wished, it could make the dollar equal three euros, two potatoes and one partridge in a pear tree. So how is the “very foundation of our Republic” threatened by a debt the federal government has the power to pay off this afternoon?
And as for the “fiscal mess, that’s just a demonstration of Congressional BS. They are like doctors who falsely tell us we have cancer, then struggle heroically to cure the nonexistent “mess” they invented.
So far, Rigell is mouthing the Peterson, Koch line, which still leaves him in the “crook” category.
Rigell is also a co-sponsor of the ‘No Budget, No Pay’ Act which prevents Members of Congress from receiving pay for each day they fail to pass a Budget and all Appropriations bills after Oct. 1st, and earlier this year introduced the ‘Lead by Example’ Act which prevents Members of Congress from receiving matching contributions to their Thrift Savings Plan (TSP) – a federal employee retirement savings plan – if the deficit is not reduced from the previous year.
This is a little chancier. Though the deficit has fallen the past two years, this bodes ill for the U.S. economy. As soon as deficit reduction (austerity) again causes a recession (see graph below), the government will have to stimulate with more deficit spending, the solution it always must use.
At that time, Congress would not receive their free contributions from the government. Ordinarily, this would move Rigel from the “crook” category to the “ignorant” category, but for one reality: No way would Congress ever pass such a bill, and Rigel knows it.
So he simply could be engaging in some political posturing to appear honest, which would keep him in the “crook” category.
Rigell, widely known as a congressional reformer, also returns 15% of his congressional salary to pay down our debt – donations which will total more than $100,000 by the end of his second term. He also declines all federal health and retirement benefits and has self-imposed a limit of no more than six terms in the House.
Well, that seems to settle it. If this guy is willing to pay our Monetarily Sovereign government — a government with the unlimited power to create dollars — “more than $100,00,” and decline all federal health and retirement benefits, he must be massively ignorant.
Or is this a part of his con? Is $100,000+ a small price for convincing voters he’s honest and should be re-elected? I let you call this one.
Sadly, either crooked or ignorant, Rigel fosters the view that the middle- and lower-income groups have too much money, and should receive less from the government, thereby widening the gap between the rich and the rest.
So either way, he’s a menace, who should be voted out of office.
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:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports