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●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 look across the ocean, and we see the death of freedom. If I believed the leaders of the eurozone truly wanted to benefit their nations, I would be baffled at the ignorance of their actions.
Eurozone retreats from austerity – but only as far as ‘austerity lite’
Recession, social unrest and political necessity force shift in eurozone, but its economic future remains deeply uncertain
The subway workers were on strike in Lisbon on Thursday. Next month it will be the turn of the teachers. Portugal’s blue-collar trade unions are gearing up to bring almost a million workers out later in the summer as the country’s protest against austerity intensifies.
It is a similar story across large parts of the eurozone. There have been mass protests in Madrid, Dublin and Athens against policies designed to reduce budget deficits.
The European commission has told six countries – France, Spain, Portugal, Poland, the Netherlands and Slovenia – that they will have up to two extra years to put their public finances in order.
Translation: Austerity (deficit reduction) has done what austerity always has done, and always will do: It has destroyed economies. Therefore, the EU will force euro nations to implement further austerity for two more years — another two years of applying leeches to cure anemia.
Economists say the case for austerity was undermined just over a month ago, when it was revealed that basic research errors in an influential paper by two Harvard economists – Carmen Reinhart and Ken Rogoff – invalidated the claim that countries suffered a growth hit when public debt rose above 90% of national income.
Oh really? That’s when it was undermined? How about when I published THE ULTIMATE AMERICA in 1996, in which I wrote:
The “experts” say you can’t have lower taxes and more spending on social issues. They say you can’t have low inflation while you cut taxes and spend more. They say you can’t afford Social Security and Medicare.
Those “experts” tell you that in order to lead good lives, you must suffer. They are wrong.
Or was that phony research undermined when I published FREE MONEY in 1997, in which I wrote:
The federal government can, and should, end its borrowing and taxing, and very simply create the money needed to grow our economy.
Or was that rotten research, which didn’t differentiate between Monetary Sovereignty and monetary non-sovereignty, undermined when in June of 2005, I spoke to Randy Wray’s class at the UMKC, and said:
“Because of the Euro, no euro nation can control its own money supply. The Euro is the worst economic idea since the recession-era, Smoot-Hawley Tariff. The economies of European nations are doomed by the euro.”
Or was that laughable, Harvard research undermined when in 2011, this blog posted: There are two, and only two, long-term solutions for Greece and the other euro nations., which said:
For Greece and the other euro nations, long term survival requires one of two, and only two, events:
1. Adopt some form of a sovereign currency, and become Monetarily Sovereign
2. The EU to give (not lend) euros to its member nations as needed.
There are no other solutions. None. All the running in circles by the European financial geniuses will be to no avail. Each day they come up with some new lending plan, and the next day abandon it in favor of some other lending plan.
I have been awarding one to five dunce caps for economic ignorance, but now the ignorance has grown so pervasive, with the euro nation leaders and our own Tea/Republican, Democrats, and the media and the columnists and the old-line economists –none of whom understand that what happened in August 1971 completely changed economics — I feel even five dunce caps does not do justice to the universal economic ignorance.
So today, I award 1000 dunce caps to all the self-styled experts, who blather on and on, spouting intuitive economics, but know nothing of the facts Monetary Sovereignty exposes.
There is a second reason I award 1000 dunce caps: To demonstrate what sovereignty can do. I can create all I wish. I never will run short. I cannot be forced into dunce cap bankruptcy. I don’t have to “live within my means.” I don’t need a balanced budget. I don’t need to tax or borrow dunce caps. I don’t need to be dunce cap prudent. I am dunce cap sovereign.
In that sense I am identical with the United States government which is dollar sovereign. It too can create all the dollars it wishes, never will run short, cannot be forced into bankruptcy, doesn’t have to “live within its means,” doesn’t need a balanced budget, doesn’t need to tax or borrow and doesn’t need to be dollar prudent.
No, that nonsense research, in which apples, oranges, crickets and toe nails all are mathematically combined to create lying averages — that fake research was not undermined a month ago. It was undermined many years ago. Then, when it was published, it became yet another mindfuzz from professors who seemingly felt that coming from Harvard, they really didn’t need to be accurate or honest.
The disaster of deficit reduction has been obvious to anyone who understood the facts of Monetary Sovereignty for at least 20 years, perhaps more. Yet the disaster continues in Europe, and sadly, continues in the U.S., courtesy of the Republicans, the Democrats, the Tea Party, Congress, the media and the old-line economists.
If I believed anyone in any of these groups truly wanted to benefit their nations, I would be baffled at the ignorance of their actions. Fortunately for my sanity, I don’t have to wonder. I know how it is possible for every single one of those folks to be ignorant of America’s unlimited ability to pay its bills, without borrowing or taxing.
They are paid — bribed, really — by the .1% wealthiest among us, to widen the gap between the rich and the rest, which is exactly what deficit reduction accomplishes.
*The .1% bribes politicians via campaign contributions and promises of lucrative employment when they leave office.
*The media are owned by the .1%, and the media bosses make sure the austerity message dominates.
*The .1% bribes universities via huge contributions that create classrooms, sports arenas and courses. Heaven help the economics professor who departs from the chosen message.
Yes, the eurozone still is doomed, as I repeatedly have said it was, for years and years and years. The euro is a failed concept. The euro nations voluntarily surrendered the single most valuable asset they had: Their Monetary Sovereignty.
Think of France surrendering its language, its left bank and its cuisine, and you still would not come close to the disaster of surrendering Monetary Sovereignty.
Think of Italy surrendering all its art, all its music and all of Rome and Florence, and those loses would not begin to compare to the surrender of its sovereign currency.
Think of Greece surrendering all its history and every one of its islands and that would be nothing compared to the surrender of its financial control.
We look across the ocean and are horrified to see freedom dying. Yet, American soldiers have given their lives around the world, fighting for freedom, while we here at home, blithely hand over our freedom on an austerity platter.
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. Click here
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%
10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt
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