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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.
The Chicago Tribune, my favorite owned-by-the-rich, to-hell-with-the-rest newspaper, published today an editorial ironically titled, “More of the same — unfortunately.”
For the Tribune, it really was more of the same — unfortunately.
The editorial decried the slow pace of job creation.
The weak recovery is failing to gain momentum. Many Americans are being left behind — sidelined, underemployed or otherwise underutilized — while their skills atrophy.
The (unemployment) rate dropped 0.1 percent in August almost entirely because 312,000 Americans exited the workforce. So even though 115,000 fewer people held jobs in August, the rate went down because many Americans no longer are trying to find work.
The trend reflects an aging population that is retiring, as expected. But the numbers also were up for “discouraged workers,” those who have given up looking for jobs because they don’t think they’ll ever find one.
The Affordable Care Act gives some employers and workers an additional incentive to go part time, so as Obamacare kicks in over the next year, don’t be surprised to see part-timing spike.
It’s a right-wing hint, hint: Getting rid of Obamacare somehow will grow the job market — perhaps by dooming millions more people to the abject poverty associated with ill health.
Never mind that employers hire the number of workers needed to accomplish tasks, and never mind that employers pay what the market forces them to pay. When employers try to employ part timers, they need to hire more part timers to do the same work.
And this doesn’t even consider reduced efficiency, job skills, commitment and loyalty. Having owned several businesses, I can assure you, part timers are no bargain.
Job creation is proceeding at far too slow a pace to make up for what was lost.
Washington, regrettably, has more talking points than good answers. The most aggressive response has come from the U.S. Federal Reserve, which is pumping $85 billion into a bond-buying program designed to stimulate growth.
The so-called “bond buying” program adds nothing to the money supply. It’s sole effects are to reduce long-term interest rates and to reduce the money supply!
Why, reduce? Because with low interest rates and with fewer T-securities outstanding, the federal government pays less interest into the economy. That is not stimulative; it is recessive.
The Fed’s latest program, nicknamed QE3, simply isn’t delivering enough economic growth — enough jobs. It’s past time for the Fed to give it up.
Right. QE3 delivers zero jobs, so yes, give it up. And stop pretending it is stimulative.
And now, here are the Tribune’s big ideas, their “more of the same — unfortunately” grand plan:
To give business confidence and truly get the economy moving again, Washington needs to make progress on three big issues:
First, reform entitlement programs so employers won’t fear future tax hikes to rescue them.
In Tribune, right-wing-speak, “reform” is a euphemism for “slash.” What they really mean, but don’t have the honesty to say is, “Slash the programs that benefit the poor and middle-income groups.
“Slash Social Security. Slash Medicare. Slash Medicaid. Slash food stamps. Slash job creating initiatives like road and bridge building, education, crime prevention and pharmaceutical research. Slash food regulation, drug regulation, stock and commodity market regulation and above all, slash bank regulation.
“Finally, increase FICA, the most regressive tax in U.S. history.”
Second, revamp (and simplify) a federal tax code that, because it chooses winners and losers, discourages muscular hiring and investment.
All taxes “choose winners and losers,” but the real point is: “Revamp (and simplify)” are euphemisms for tax the lower income groups more, and reduce taxes on the rich (the self-proclaimed “job creators.”)
Every tax “simplification” plan ever proposed by the right-wing, increases the tax burden on the middle class.
Third, stop amassing an unaffordable national debt — almost $17 trillion and rising. Repaying that obligation threatens to devour too much of future workers’ incomes.
The usual, right-wing bullsh*t. The national debt is nothing more than the total of privately owned T-security accounts at the Federal Reserve Bank. T-security accounts essentially are bank savings accounts.
The so-called “debt” could be eliminated tomorrow, at a cost of $0 to current or to future workers, simply by transferring the balances in holders’ T-security accounts to their checking accounts.
It would be the same as transferring dollars from your savings account to your checking account. No cost to anyone.
The Tribune has learned that “more of the same — unfortunately” continues to fool the populace and to benefit the Tribune’s rich owners. So why not continue the charade?
If the people keep buying snake oil, keep selling it. If it works, keep doing it. So they do.
When I played “fetch” with my dog, I sometimes would fake a throw. He would run to find the non-existent stick. After I did this a few times, he learned I was faking, and quit being fooled.
The American populace, having not yet learned the media and politicians are faking when claiming the debt is “unaffordable,” still continue to be fooled. In that sense, they are not as smart as my dog.
Rodger Malcolm Mitchell
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D plus long term nursing care — 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. 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
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (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
THE RECESSION CLOCK
As the lines drop, we approach recession, which will be cured only when the lines rise.