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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.
In a recent post, we asked, Why do we bully the poor?
The discussion had to do with the psychological need of the rich to bully the “not-rich,” and the receptivity of the “not-rich” to join in the bullying.
Each income class tries to distance itself from the income classes below it, and to emulate the income classes above it.
By its very nature, bullying is cruel and cowardly, because it relies on the victim’s inability to defend himself. But ask people why they bully, and you will receive a rationale that denies cruelty or cowardice: “They asked for it.” “They caused it.” “It’s because of the way they act.”
Bullies use lies to blame their victims. And so it is with economic bullying. Here are the two BIG LIES the rich use, to justify their bullying:
The Big Lie #1. We taxpayers pay for federal deficit spending.
The myth: The federal government’s finances are like my household finances. I must balance my budgets so the federal government must balance its budget.
The fact: The federal government is Monetarily Sovereign; I am not. The federal government creates money, so does not need income. I don’t create money, so I do need income.
Even if federal taxes fell to $0 and deficit spending tripled, the federal government, would not run short of dollars to pay its bills.
The Big Lie #2. Federal money “printing” causes inflation.
The myth: That’s what happened to the Weimar Republic and Zimbabwe.
The fact:There is no relationship between federal deficit spending and inflation.
Germany’s economy was destroyed by the Allies; Zimbabwe’s economy was destroyed by Robert Mugabe.
Here is the result of economic bullying by the rich, which is endorsed by much of the “not-rich.”
Feuding House To Vote On Cantor-Led $40 Billion Food Stamp Cuts
September 16th, 2013, Elissa Gomez
The House is expected to vote soon on a Republican-backed bill that would cut $40 billion from the food stamp program, formally known as the Supplemental Nutrition Assistance Program (SNAP).
The nearly $80-billion-a-year program currently provides food aid to an estimated 47 million Americans. The proposed bill would cut the program in half.
“There are 50 million people in the United States of America who are hungry, 17 million are kids. It is something we all should be ashamed of, and the United States House of Representatives is about to make that worse,” said Representative Jim McGovern (D-MA).
Does this meet the standards of cruelty and cowardice? Adults and children who use food stamps are short of money to buy food. And they are the least powerful people in America.
Each day, the Tea Party Republicans demonstrate their incredible cruelty and cowardice, by punishing the poor and sucking up to the rich. Unfortunately, the hungry and powerless receive only half-hearted defense, even from the Democrats.
In June, Democrats pulled support that would have cut $20.5 billion from SNAP, calling the cuts too deep. That original bill also met with opposition from some Republicans who felt the cuts were not harsh enough.
Classic “good cop; bad cop.” Both parties want to cut aid to the poor, the only question being how much.
In usual bully fashion, the politicians provide rationales that deny their cruelty or cowardice:
Republican Iowa representative Steve King described the goal of the bill as a way to “ensure that while you have a safety net you shouldn’t be giving welfare benefits to people who are able-bodied and capable of getting a job who just choose to continue to get food stamps.”
Rep. Stephen Fincher (R-TN) made a religious argument, saying, “The role of citizens, of Christianity, of humanity, is to take care of each other, not for Washington to steal from those in the country and give to others in the country.”
Translation: It’s all the fault of the poor. They could find jobs, but don’t want to. We are very religious and charitable, but we don’t want to give to the lazy, poor adults and their lazy children.
Never mind that taxpayers do not pay for federal spending. Never mind that being poor and hungry seldom is caused by laziness. So long as the rich can provide us with rationales for cruelty and cowardice, we eagerly to use them.
Thank you rich people, for giving me a handy excuse to act just like you, and to distance myself from the poor: It’s all the fault of the poor.
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.