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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 ultimately 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.
News about federal finance often is designed to confuse and mislead you.
This is part of the misinformation / disinformation process funded by the wealthy and enacted by the media and the political establishment. The purpose: To widen the gap between the rich and the rest and to make you assist in your own financial suicide.
Here is an example: The following excerpts describe the federal government’s sale of the General Motors stock it purchased to save the company.
Following each paragraph, we show the true meaning of what is happening.
WASHINGTON (Reuters) – The U.S. Treasury said on Thursday it was selling 30 million shares of General Motors Co (GM.N) at $34.41 each, raising roughly $1.03 billion as part of its ongoing effort to exit from the bailed-out company and reduce losses to taxpayers.
Here is the true meaning of the above paragraph:
The U.S. Treasury said on Thursday it was selling 30 million shares of General Motors Co (GM.N) at $34.41 each, taxing the economy roughly $1.03 billion as part of its ongoing effort to exit from the bailed-out company and increase losses to taxpayers.
The public offering, which coincided with GM’s re-entry to the Standard & Poor’s 500 index, will take the amount recouped for U.S. taxpayers so far to $32.53 billion.
Translation: The public offering, which coincided with GM’s re-entry to the Standard & Poor’s 500 index, will take the amount taken from U.S. taxpayers so far to $32.53 billion.
With the sale, Treasury will still hold 189.2 million shares. It has said that it plans to completely exit the holding by April 2014. It would have to sell the shares at an average price of $89.69 each to spare taxpayers from any loss.
Translation: With the sale, Treasury will still hold 189.2 million shares. It has said that it plans to completely exit the holding by April 2014. It would have to sell the shares at an average price of $89.69 each to assure taxpayers a $17 billion loss.
In summary: Unlike state and local governments (and unlike euro governments) the U.S. government is Monetarily Sovereign. It creates its sovereign currency, the dollar, at will, simply by paying bills.
The U.S. government neither needs nor uses tax dollars to pay its bills.
Dollars sent to the federal government disappear from the economy’s money supply. Rather than benefiting taxpayers, a reduced money supply impoverishes the entire private sector.
When the government sells stock to the private sector, dollars flow from the private sector to the government. This is identical to what happens when you pay taxes.
Dollars flowing from the private sector to the government = private sector loss.
Dollars flowing from the government to the private sector = private sector gain.
The only two activities that benefit taxpayers are federal tax reductions and/or federal spending increases, both of which add dollars to the private sector.
And that is something you won’t learn from your morning newspaper.
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