Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell
●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 credit rating agencies Moody’s and Standard & Poor’s estimated that the partial closure of the government from October 1 would slice 0.5-0.6 percentage points from annualized growth in the fourth quarter.
S&P said the shutdown took $24 billion from the economy, as hundreds of thousands of government workers stayed at home unsure of getting paid, government contracts were delayed and national parks that drive crucial tourist industries were closed.
Because of that, several economists cut their forecasts for fourth quarter growth to around 2 percent, barely enough to generate the jobs needed to pull down unemployment.
Gridlock Has Cost U.S. Billions, and the Meter Is Still Running
By Anie Lowrey, Nathaniel Popper and Nelson D. Schwartz
Containers of goods idling at ports. Reduced sales at sandwich shops in downtown Washington. Canceled vacations to national parks and to destinations abroad. Reduced corporate earnings forecasts. Higher interest payments on short-term debt.
The cost of Congress’s gridlock has already run well into the billions, economists estimate. And the total will continue to grow even after the shutdown ends, partly because of uncertainty about whether lawmakers might reach another deadlock early next year.
(It will) take a bite out of fourth-quarter growth, which will affect employment, business earnings and borrowing costs.
This (shutdown) has cut off services to women and children in need, furloughed hundreds of thousands, further shaken the confidence of the public, sent a shudder through the financial world and created new storm clouds over the economy. And once again the world is wondering about our capacity for leadership.
“He’s going to be coming back, rewriting history, saying, ‘We were on the verge of victory back in October, and we could have won if we’d just stayed in there another week.’ And he’s going to have phone calls being made, and he’s going to have town hall meetings. And he’s going to have all those support groups out there, threatening to downgrade people on their scorecards and all that stuff.
John Boehner: “We fought the good fight.”
The agreement to suspend the debt ceiling and fund the federal government will create a bipartisan committee with a target of December 13 for preparing a deficit reduction plan.
The deal sets the stage for future fights. This will give lawmakers the perfect opportunity to stage more grandstanding and theatrics.
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.