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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 the quality of our Presidential candidates foretells America’s future, we are in terrible trouble. Take, for example, Marco Rubio:
Marco Rubio: No debt limit increase until Congress adopts plan to balance budget in 10 years
By Seth McLaughlin-The Washington Times Thursday, July 11, 2013
Sen. Marco Rubio . . . said that Congress should not agree to raise the nation’s borrowing limit “a single cent” until lawmakers pass and Mr. Obama signs off on a spending plan that shows how the federal budget will be balanced in 10 years.
As Rubio knows, the money already has been spent. His proposal is akin to running up a credit card debt, then refusing to pay the bill. Balancing the federal budget will remove trillions from the economy, guaranteeing a recession if we are lucky and a depression if we are not. It is another notorious “sequester” — on steroids.
(Rubio said,) “They will say, ‘Well you are going to risk default.’ The $17 trillion debt is a risk of default. The lack of any plan to fix it is the risk of default — and not a statutory default, a real default.”
Rubio’s plan is not “a risk of default.” It is an actual default. Meanwhile, the government could eliminate the so-called $17 trillion debt tomorrow, simply by transferring debt owners’ own dollars from their T-security accounts to their checking accounts. Rubio pretends not to understand that and he doesn’t want you to understand it.
Mr. Rubio said the administration has had the wrong priorities. Instead of focusing on reducing the debt, reshaping the tax code and tapping into the nation’s domestic energy industry, Mr. Obama has pushed for tighter gun control laws, same-sex marriage and a climate change agenda.
Mr. Rubio said that the Republicans should move in an opposite direction by pursuing a pro-growth agenda that takes advantage of the nation’s oil, coal and natural gas resources, reforms the tax code and reduces government regulations to encourage more investment and risk in America.
Translation: “Instead of causing a recession by reducing the money supply, making the middle-classes pay more taxes while the rich pay less, and increasing pollution and global warming, Mr. Obama has pushed for reducing gun violence, less bigotry against gays and saving the environment for our children.”
Mr. Rubio said that the Republicans should move in an opposite direction by pursuing a negative-growth agenda that burns more of the nation’s oil, coal and natural gas resources, reforms the tax code to benefit the rich and reduces government regulations to encourage more stealing by crooked bankers in America.
“We have to convince the majority of our fellow Americans that the road we are on today will lead us to decline,” Mr. Rubio said. “That we don’t need a government that picks winners and losers. What we need are leaders that believe we can all be winners.”
Translation: “We have to convince the majority of our fellow Americans that cutting the money supply somehow will grow the economy,” Mr. Rubio said. We don’t need a government that helps the poor and takes from to the criminal rich. What we need are leaders that believe we can fool the people into giving the upper .1% more power.”
Let’s be honest here. Marco Rubio has three “qualifications” for the Presidency:
1. He’s a nice-looking young fellow.
2. He’s Latino, a cynical, conservative attempt at fooling other Latino’s into believing the right wing gives a damn about them.
3. He backs every right wing initiative to crush the poor and middle-classes and to pay off the rich for their support.
Like the almost-but-not-quite namesake cube, he can be twisted and turned every rich way, to come up with any crazy design. He is 100% flexible, according to the wishes of the upper .1% income group.
And this guy wants to be President? Sadly, the right wing hasn’t changed from its Mitt Romney, Ron Paul, Newt Gingrich, Rick Santorum, Rick Perry, Michele Bachmann, Herman Cain blend of incompetence and craziness.
The right wing “solutions” simply do not work, will not work, can not work. It’s time for a new plan.
Rodger Malcolm Mitchell
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually Click here
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.
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.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.
THE RECESSION CLOCK
Recessions begin an average of 2 years after the blue line first dips below zero. A common phenomenon is for the line briefly to dip below zero, then rise above zero, before falling dramatically below zero. There was a brief dip below zero in 2015, followed by another dip – the familiar pre-recession pattern.
Recessions are cured by a rising red line.
Vertical gray bars mark recessions.
As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..
•Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
•The single most important problem in economics is the Gap between rich and the rest..
•Austerity is the government’s method for widening the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..