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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 federal government is supposed to work like this:
The two houses of Congress propose specific bills. By vote, the bills are accepted or rejected. Those accepted are sent to the President for his signature. If he signs, the bills become laws. The Supreme Court may consider the Constitutionality of the laws.
Lately, however, a new variable has been introduced. After a law is passed by Congress, signed into law by the President, and approved as Constitutional by the Supreme Court, it then becomes part of a larger negotiation.
Let’s say that a group, in one of the houses, is unhappy with a law. Knowing they cannot get the law itself overturned by both houses of Congress and by the President, they decide to do an end run, and threaten to shut down the government if the law isn’t overturned.
What a wonderful power play for any extreme group. Punish millions of Americans — punish the whole world — unless you get your way.
Consider the possibilities:
Prevent the teaching of evolution, or we’ll shut down the government.
Approve the Keystone XL pipeline, or we’ll shut down the government.
Eliminate the estate tax, or we’ll shut down the government.
Confiscate all guns, or we’ll shut down the government.
Defund Social Security, or we’ll shut down the government.
Make abortion illegal, or we’ll shut down the government.
Prevent gays from marrying, or we’ll shut down the government.
Return to the gold standard, or we’ll shut down the government.
Eliminate EPA carbon regulations, or we’ll shut down the government.
End food stamps, or we’ll shut down the government.
Increase FICA, or we’ll shut down the government.
Yes, the possibilities are endless.
No need to go through the Congressional/Presidential process. No need to pass any new laws at all. Forget about the President and at least one house in Congress. Merely demand that old laws be changed or cancelled . . . or else, as a patriot, you’ll destroy the country.
We could have national crises every year, based on dissatisfaction with any law, and the threat to shut down the government.
Call it the Godfather system of government:
“My father made him an offer he couldn’t refuse… Luca Brasi held a gun to his head, and my father assured him that either his brains, or his signature would be on the contract”.
– Michael Corleone, “The Godfather”, 1972
Of course, none of this fiscal terrorism would be possible, if our government acknowledged that it is Monetary Sovereign, and cannot run short of dollars.
Meanwhile, we are the ones who put the guns in the terrorists’ hands, so we suffer from our own ignorance.
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 federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise.