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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.
Are you a student of economics? According to one measure, “In 2003, there were 89,000 undergraduate and graduate students enrolled in economics courses in the United States.”
So, when President Barack Obama said:
“It comes down to this: We have to prioritize. Both parties agree that we need to reduce the deficit by the same amount — by $4 trillion.”
Did you write to the President to tell him the U.S. should not reduce the deficit? Did you write to your Senator to say the federal government is Monetarily Sovereign, and that deficit spending is necessary to grow the economy? Did you tell your Congresspersons that deficit cuts unfairly harm the middle-class and the poor, and widen the gap between the rich and the rest.
If not, why not? After all, your 89,000 informed voices could change the world.
Are you a professor of economics? According to data derived from the U.S. Bureau of Labor Statistics, in 2009, junior colleges had 2,270 positions for economics professors. Colleges and universities, including professional schools, had 10,580 positions.
So, when Laurence Kotlikoff, Economist at Boston University, said:
“The US is bankrupt—not in 30 years, not in 10 years, not in 5 years, but today.”
Did you contact him? Did tell him “Lawrence, the U.S., being Monetarily Sovereign, has the unlimited ability to create dollars”?
Did you remind him that the U.S. never can be unable to pay its dollar-denominated bills unless it makes a conscious decision not to?
If not, why not? Consider the powerful effect of 12,000+ economics professors, correcting such obvious and pervasive errors in economics.
And you 89,000+ economics students — when Peter Schiff, author of the new book The Real Crash, said:
“We’re already bankrupt. Better to acknowledge that fact than to pretend we’re not.”
Did you write to him and tell him it functionally is impossible for the U.S. ever to be forced into bankruptcy? Did you tell him he is confusing monetary non-sovereignty with Monetary Sovereignty, and that while such monetary non-sovereign entities as Chicago, Cook County, California, Greece, IBM, you and me, all can be forced into bankruptcy, the U.S. cannot?
If not, why not? Why did you study economics?
And you economics professors, when Rep. John Boehner said:
“Were broke. America’s broke.”
Did you tell your students that John Boehner simply is wrong, and may just be trying to help the rich widen the income/wealth gap?
If not, why not? Why do you teach economics?
And all you students and professors of economics, when:
North Carolina Republican Rep. Sue Myrick said: “The government can’t afford to take care of everybody.”
Ohio Senator Rob Portman said: “Washington has proven time and time again that it does not have the answers to get the record budget deficits and debt under control. That’s why Congress looks to reduce Washington’s out of control spending.”
Did you write to your newspapers and TV stations, and tell them why these statements are ridiculous?
If not, why not? What is the purpose of learning economics, if you close your eyes to obviously wrong statements?
Would geographers ignore, without a whimper, Congress claiming sailing ships could fall off the edge of the world? Would astronomers be satisfied with the newspapers saying the sun revolves around the earth?
Why have you economists allowed nonsense to dominate the discussions of your science? Why have you students not challenged your professors, when they spew nonsense? Do none of you have the energy to learn even the basics of Monetary Sovereignty?
Oh, there are a few. The economics department of the University of Missouri, Kansas City (UMKC) understands the facts and tries to disseminate them. And there are a handful of professors at other schools — a bare handful — who also understand Monetary Sovereignty. But their voices are drowned out in a hurricane of misinformation.
So, is it that the rest of you economists, unlike all other scientists, simply have stopped learning, and are content to parrot the errors of your teachers and predecessors?
Or is it that because your university is supported by rich benefactors, you do not want to say anything that would upset the wealthy and detour your career?
I simply can’t understand it. With so many professors of economics, and so many students of economics, how you have allowed myths, not only to go unchallenged, but to dominate.
Really, where have all the economists gone?
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.