–Australia, you cannot beat America for the title

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●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.
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Most Americans believe our Monetarily Sovereign government – the world’s only government with the unlimited ability to create U.S. dollars – by some magic can run short of dollars, and therefore should take dollars from the private sector.

We also hold the irrational belief that taking dollars from the private sector strengthens the economy.

We had thought those strange beliefs would assure us of the proud title, “Most Ignorant About Economics.” But, no. As we struggle to pull ourselves from the tar pit of recession and austerity, the Australians try to wrest this bit of exclusivity from us.

Financial Review
Labor reels from $20bn budget hole
Phillip Coorey, Chief political correspondent

The federal government faces a forecast revenue shortfall of more than $20 billion over the next four years, prompting a robust internal debate about whether the budget razor gang should make cuts to offset all the losses or delay the surplus yet again.

Measures under consideration to help plug the revenue hole include increases in tobacco excise, abolishing loss carry-back tax provisions for business, and tightening family tax benefits and so-called middle-class welfare.

So there they go. Australian politicians (undoubtedly bribed by the rich, like American politicians) now wish to make their businesses less able to hire workers and also to take money from poor families.

Will these people stop at nothing in their relentless effort to wrest the “Most Ignorant” title from us and to widen the gap between the rich and the rest?

The Age
Income spread evens out a bit
Tim Colebatch, August 1, 2013

The Bureau of Statistics (says) the Gini coefficient of income inequality has declined by 5 per cent (i.e. less inequality) since the GFC. But between 1997 and 2008, inequality increased by 15 per cent. Two-thirds of that is still there.

The bureau highlights the huge impact of government in reducing inequality by pensions, benefits and free services.

Australia’s politicians, like America’s, are terrified that central government spending on benefits to the middle- and lower-income people will reduce income inequality – the very last thing the rich want.

So, the Australian pols do everything to convince the populace their Monetarily Sovereign government is running short of dollars and needs to take money from the private sector.

And like their American counterparts, the Australian people buy into the myth.

Here’s a bit more from “Labor reels from $20bn budget hole”:

Shadow treasurer Joe Hockey Hockey said Prime -Minister Kevin Rudd was softening the population for a ballooning in debt to be associated with the renewed revenue downgrades.

“The government can’t stop spending, spending like there’s no tomorrow. He is playing down the debt challenge because he wants to increase it. He wants to increase the debt.”

Translation: Mr. Rudd is accused of wanting to increase the money supply in Australia’s private sector (That is what “increase the debt” means.) People would actually have more Australian dollars in their pockets. Oh, horrors!

Financial Review
Bank deposits ‘taxed’ for bailout fund
Phillip Coorey and Matthew Dunckley

The Australian Financial Review has learned that the government’s economic statement will contain a deposit insurance levy, which will raise funds to underwrite any Australian bank should it need assistance in the future.

The proposed levy would be between 0.05 per cent and 0.1 per cent. Presently, the government guarantees deposits up to $250,000 without charging the banks.

The revenue raised by the levy will also be added to the budget bottom line, helping the government offset a forecast plunge in revenues since the May budget and meet its target of returning to surplus in 2016-17.

Translation: The levy will help the government meet its target of returning the private sector to deficit in 2016-17 (A government surplus is a private sector deficit).

Treasurer Chris Brown said “we have no plans to tax banks.’’

Translation: We won’t call it a “tax.” We’ll call it a “service fee” Or perhaps a “sock-it-to-the-public stipend.” By not calling it a “tax,” we won’t hurt the economy.

One big bank has warned the levy would be passed on in the form of reduced interest payments on deposits.

Are they saying if we, the government, take dollars from the banks, the banks will spend fewer dollars? We didn’t know that!

Opposition Leader Tony Abbott said, “This is a government that cannot control its spending, (so) whenever it gets into trouble, it hits you the Australian people with more taxes.

Translation: “The government should not tax you, because taxes take dollars from the private sector, especially from the rich.

“However, the government should reduce its spending, which puts fewer dollars into the private sector, especially the poor. I know. It makes no sense, but it’s what the rich have paid me to say.”

Bottom line, Australia, you may try to take the title, “Most Ignorant About Economics,” but we are Americans. Nobody beats us. When it comes to economics, we can out-ignorant anyone (except maybe the euro nations).

And, we have a unique weapon that assures us of victory.

We have the Tea Party.

Rodger Malcolm Mitchell
Monetary Sovereignty

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Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone (Click here)
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 (Click here)
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

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

#MONETARY SOVEREIGNTY