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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.
If you enjoy irony, this article is written for you. It contains not just irony, but multi-level irony.
Republicans, those of the party of Abraham Lincoln, have sunk into an endless cycle of self mutilation. The story begins with the “Southern strategy.”
The “Southern strategy” refers to the Republican Party’s strategy of gaining political support in the Southern U.S.by appealing to racism against African Americans.
Many white Southern Democrats stopped supporting the party following the civil rights plank of the Democratic campaign in 1948 (triggering the Dixiecrats), the African-American Civil Rights Movement, the passage of the Civil Rights Act of 1964 and Voting Rights Act of 1965, and desegregation.
Richard Nixon’s political strategist Kevin Phillips, said:
“The Republicans are never going to get more than 10 to 20 percent of the Negro vote [Does this remind anyone of Mitt Romney?] …but Republicans would be shortsighted if they weakened enforcement of the Voting Rights Act.” [Nobody told the Supreme Court’s right wing.].
The more Negroes who register as Democrats in the South, the sooner the Negrophobe whites will quit the Democrats and become Republicans. That’s where the votes are. Without that prodding from the blacks, the whites will backslide into their old comfortable arrangement with the local Democrats.”
The South is home to “the Bible belt” — the God-fearing, God-loving, religious right-wing. Politically, these people are as easily manipulated as children. All you need do is tell them the blacks or the poor or the Latinos or the gays are “taking over,” and they will march zombie-like to the polls and pull that bigot lever.
It’s: “Rather than lift ourselves up, let’s just push them down.”.
One of my readers, Bruce Patrick, sent me an article from ABC News. Here are a few excerpts:
NC Becomes 1st State to Drop Federal Jobless Funds
By EMERY P. DALESIO AP Business Writer
With changes to its unemployment law taking effect this weekend, North Carolina not only is cutting benefits for those who file new claims, it will become the first state disqualified from a federal compensation program for the long-term jobless.
North Carolina has the country’s fifth-worst jobless rate. The benefit cuts will disqualify the state from receiving federally funded Emergency Unemployment Compensation. The EUC program is available to long-term jobless in all states. But keeping the money flowing includes a requirement that states can’t cut average weekly benefits.
Because North Carolina leaders cut average weekly benefits for new claims, about 170,000 workers whose state benefits expire this year will lose more than $700 million in EUC payments, the U.S. Labor Department said.
I’m not sure which bible North Carolina’s religious right read. It could not be the one in which Jesus says, “I was hungry and you gave me food, I was thirsty and you gave me something to drink, I was a stranger and you welcomed me, I was naked and you gave me clothing, I was sick and you took care of me.”
Nor could it be the bible containing this passage: “He who oppresses the poor shows contempt for their Maker, but whoever is kind to the needy honors God.” -Proverbs 14:31.
Rep. Julia Howard, Republican -Davie said, “The cuts also will push people to find work faster, then move to a better job as the economy improves”.
To assuage guilt, right-wing leaders spread the myth that the poor are lazy and would rather accept handouts than work. It’s the all-purpose excuse for cruelty.
But this is not just a state right-wing problem. Economically, it goes far beyond that.
State officials adopted the package of benefit cuts and increased taxes for businesses in February, a plan designed to accelerate repayment of a $2.5 billion federal debt. Like many states, North Carolina had racked up the debt by borrowing from Washington after its unemployment fund was drained by jobless benefits during the Great Recession.
Like every state, NC is monetarily non-sovereign. It cannot create dollars at will. It can run out of dollars.
The U.S. government, being Monetarily Sovereign, can create dollars at will. The U.S. government is the creator of dollars. It is sovereign over dollars. It can create as many or as few dollars as it wishes, and can give them any value it wishes. It never can run short.
With the touch of a computer key, the U.S. government could end North Carolina’s indebtedness.
So why does the U.S. government lend (rather than give) dollars to the states? Why does the U.S. government lend, rather than give, dollars to anyone?
The problem is not just cynical cruelty by the religious right, though that is part of it. The larger problem is the cruelty by the upper .1% income group, which has bribed the politicians and the media to rationalize cutting the federal deficit.
The rich plan to widen the gap between them and the despised poor and middle-classes, and they have found the perfect group, happy to carry out their evil plan: The bible-reading, religious right, most of whom themselves are poor or middle-class.
As for the people of North Carolina, they will suffer, unnecessarily. They will lose $700 million in federal payments.
The rich sit back and direct the bible-belt people to do their dirty work, which will punish – yes, the bible belt people.
You just can’t beat this for irony.
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