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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.
Those of you who HAVE read “What President Obama’s ‘grand bargain’ means to your wallet Friday, Nov 2 2012, know that it is a “bargain” only to the rich and a punishment for the middle- and lower-income groups.
The Grand Bargain is a lie, akin to “I’ll be working late at the office, dear,” for Obama is the nation’s political philanderer.
Because he is a Democrat, Obama is “married” to the middle- and lower-income groups, but he cheats on his “wife” every day. His true love is the rich.
His spouse, the middle class, is abused at home with lies, and with threats of Social Security cuts, and with actual cuts to federal spending that would feed, clothe and house her, and further cuts to federal employment — all engineered by her faithless husband, the President.
Meanwhile, Obama will do anything for his rich mistress, who seduces him with campaign contributions and promises of lucrative jobs and a big Obama Library later, and who asks only that he widen the gap between a beautiful rich mistress and the plain, overworked rest of us.
(The Obama model is Bill Clinton who, courtesy of the rich, has become fabulously wealthy, as a “thank you” for cutting the federal deficit. That single act enriched the rich, impoverished the not-rich, widened the gap and led to the recession inherited by President Bush — and Clinton’s mistress has rewarded him ever since.)
Yesterday, as Obama’s latest gift to his mistress, he offered her yet another “grand bargain.”
Obama proposes ‘grand bargain’ on corporate tax rate, infrastructure
By Steve Holland | Reuters
In exchange for his support for a corporate tax reduction, Obama wants the money generated by a tax overhaul to be used to fund such projects as repairing roads and bridges, improving education at community colleges and promoting manufacturing, senior administration officials said.
Think about it. A tax “overhaul” cannot fund anything. The taxes of a Monetarily Sovereign government do not pay for that government’s spending.
If federal taxes were reduced to $0 or increased to $100 trillion, neither event would affect our Monetarily Sovereign government’s ability to spend. Not even by a penny.
So that is one part of the lie.
Then, there is the “tax overhaul” itself. What does that euphemism mean? No one knows for sure, but we have a pretty good idea it means another euphemism: “Broadening the tax base.”
And what does that mean? Generally, it means tax the poor more and tax the rich less. It means pawn your wife’s engagement ring to buy your mistress a fur coat — then tell your wife this is a good thing, because you’ve cut your family insurance costs.
Of course, the broadening might include elimination of so-called “loopholes,” also a mystery term. Here is how “loophole” is defined:
1. All money earned by the private sector — all your money and all business money — is owned by the federal government. All of it.
2. Any of your money you are allowed to keep is a “loophole.”
Because Obama harps on his proposals being “revenue neutral,” any tax deductions will be matched by tax increases. Money left in the private sector’s left pocket, will be taken from the private sector’s right pocket — and by some magic of mathematics, Obama considers that stimulative.
The most common measure of the economy is GDP, for which the formula is:
GDP = Federal Spending + Non-federal Spending – Net Imports.
So, for instance, if you were to add $100 to Federal Spending and subtract $100 from Non-Federal Spending, would you add to GDP?
The correct answer, of course, is “No,” but counter to all logic and mathematics, President Obama has been telling you, “Yes.”
Bottom line: To cheat on his spouse, Obama relies on one fundamental lie. It is the basis of all of Obama’s “grand bargains.” The BIG LIE is: Federal taxes pay for federal spending.
Eliminate that single lie — six little words — and you eliminate all the misstatements about our economy, the need for austerity, federal deficits, federal debt, Social Security being unsustainable, Medicare being unsustainable, unemployment, the need for spending cuts and broadening the tax base, etc. etc.
Forget the latest grand bargain or grander bargain or grandest bargain. All these “bargains” are based on the BIG LIE, the purpose of which is to widen the income gap. That’s is all Obama’s mistress asks of him.
Instead remember these two simple truths:
Your spouse may not really be working late at the office, and
FEDERAL TAXES ABSOLUTELY DO NOT PAY FOR FEDERAL SPENDING. Remember these words, and the politicians never will be able to fool you, again.
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
One thought on “–Beware of Obama bearing “Grand Bargains.” The big lie that destroys America.”
Facts about the tax proposal are scarce in that article, except for the rate reduction. Probably what he means by “overhaul” is that highly profitable companies like GE that now pay $0 corporate income tax will have to pay some. That is the “base broadening” part, and it has been an ongoing political issue for many years. If the profitable multinationals like GE that pay $0 today would be paying something, then the rate can be lowered for everyone, and the revenue could stay about the same. Except that the article also says the increased revenue from the overhaul is “one-time”, and the Republicans object that the spending would be ongoing. If that’s true, then this plan would be stimulative: rate cuts for most corporations, and increased spending, with the rate cuts only partially offset by a one-time tax increase on the GE’s that are not paying anything now.
There is no mention of any personal income tax changes, only corporate.
Not that any of it makes any difference to a monetary sovereign like the US.