●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.
Our Monetarily Sovereign government, which has the unlimited ability to create its sovereign currency (the dollar), has been bribed by the upper .1% income group (via campaign contributions and promises of lucrative employment later), to cut the number of dollars in the economy (also known as “austerity”).
The purpose of austerity is to widen the gap between the rich and the rest, as federal deficit spending benefits the 99.9% more than the .1%. The GINI ratio demonstrates this increasing gap.
The average American has been brainwashed by the politicians and the media and major universities (which are owned by the .1%) into agreeing that the number of dollars should be cut.
Here are excerpts from a pertinent article in the National Memo:
The Chilling Reality Of America’s Worsening Jobs Crisis
May 15th, 2013, Jim Hightower
More than a third of working-age Americans are either out of work or have given up on finding a job.
Also, last month’s hiring increase was almost entirely for receptionists, waiters, clerks, temp workers, car-rental agents and other low-wage positions with no benefits or upwardly mobile possibilities.
On the other hand, manufacturing — generally the source of good, middle-class jobs — did not add workers in April and has cut some 10,000 jobs in the last year.
Especially problematic was the continued rise in underemployment — people wanting full-time work, but having to take part-time and temporary jobs. Underemployment is also pounding college graduates. While they’ve been more successful than non-grads at landing jobs, they’re not getting jobs that fit their career goals or even require the degrees they spent money and time to obtain.
In May, another headline shouted: “Stock Market Soars.” It expressed delight that the Dow Jones Average topped 15,000 for the first time in its history.
Yet this index of Wall Street wealth gives a totally false picture of our nation’s true economic health. Yes, the privileged few are doing extremely well. But the workaday many are struggling — and falling further and further behind as the jobs market sinks steadily from mere recession down into depression.
The stock market is doing well because profits are up, and profits are up because employment costs are down.
President Obama hailed the news that unemployment dipped to 7.5 percent in April. This good-news dip was not due to a jump in job offerings, but to a bad-news labor market so weak and discouraging that more and more Americans are dropping out of it or never entering it.
More than a third of our working-age population is no longer even in the job market, and only 58.6 percent of us are employed. Put the opposite way, 41 percent of the potential workforce is not working — about 102 million people.
Our people are trapped in a jobs crisis that is sucking the economic vitality out of our nation, but our leaders refuse even to acknowledge it, much less cope with it.
Our leaders not only do not “cope” with it; they intentionally cause it. They have been bribed to widen the income gap. Destroying the middle- and lower-income groups is the best, fastest, easiest method.
In fact, corporate chieftains are deliberately exacerbating the crisis by hoarding trillions of dollars that ought to be rushed into job-creating expansions, and politicians keep adding to the casualties by gleefully eliminating the middle-class jobs of hundreds of thousands of teachers, firefighters, police and other valuable public employees.
Why would corporations “rush into job-creating expansions,” when they can make more profit by not hiring?
America’s middle class is burning to the ground, while Washington fiddles with nonsense and Wall Street feathers its own nest. It’s disgraceful.
America’s middle class is complicit in its own conflagration. Ask any of your friends whether the federal deficit should be reduced. Ask the unemployed whether the debt is too high. They will shout, “Yes!”
Average Americans have begged Congress and the President to reduce the supply of dollars in the economy, thereby demanding their economic suicide and the economic murders of their children.
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