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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.
This is a study in contrasts.
The U.S. government invented its sovereign currency, the dollar. It authored from thin air, all the laws that made the dollar possible and continue to make the dollar what it is, today.
With its unlimited ability to change those laws at will, the government has 100% control over the dollar.
The government creates as many dollars as it wishes, simply by paying bills. It destroys as many dollars as it wishes, simply by taxing. It can change its laws to give the dollar any value it wishes, thereby preventing or causing inflation or deflation.
Having given itself these legal powers, the U.S. government does not need to ask anyone for dollars — not you, not me, not China, not Europe, not any banks.
The U.S. government does not need to tax or to borrow dollars. The government is the absolute sovereign over the dollar. There is nothing the U.S. government cannot afford. By its own lawmaking powers, it is Monetarily Sovereign.
In contrast, the dollar is not the State of Vermont’s sovereign currency. Vermont needs to tax and borrow dollars or it could run short of dollars. Vermont has no more control over the dollar than it has over the euro, the yen or the renminbi. All are “alien” currencies for Vermont.
Like you and me and like every busines and every state, county and village in America, Vermont is monetarily non-sovereign.
Which is why the following is both amazing and discouraging:
The Washington Times
Vermont plans launch of ‘universal’ health care system: It’s a ‘right and not a privilege’
By Associated Press
(Vermont) has a planned 2017 launch of the nation’s first universal health care system, a sort of modified Medicare-for-all that has long been a dream for many liberals.
The plan is especially ambitious in the current atmosphere surrounding health care in the United States. Republicans in Congress balk at the federal health overhaul years after it was signed into law. States are still negotiating their terms for implementing it.
(The plan) combines universal coverage with new cost controls in an effort to move away from a system in which the more procedures doctors and hospitals perform, the more they get paid, to one in which providers have a set budget to care for a set number of patients.
The result will be health care that’s “a right and not a privilege,” Gov. Peter Shumlin said.
He said he expects a payroll tax to be a main source of funding, giving for the first time a look at how he expects the plan to be paid for.
Think about it. The United States government, having the legal ability to create unlimited dollars and the further ability to give those dollars any value it wishes, does not provide its citizens with universal health care.
But little Vermont, with limited resources, amazingly will try to do just that.
Several times in recent years, hundreds of people have rallied in Montpelier for a campaign advocating that health care is a human right.
Vermont’s small size also is often credited with helping preserve its communitarian spirit. People in its towns know one another and are willing to help in times of need.
Compare that with America at large, where one party leadership, sneers at the poor and sick and uninsured as “leeches” and “sloths” who “always are looking for a handout,” while the other party leadership claims this Monetarily Sovereign nation “cannot afford” to provide health care for its people.
Will Vermont succeed? The problem it faces is money, a huge problem indeed. Universal health care is expensive, and a monetarily non-sovereign’s ability to pay is limited. But the Governor and the people of Vermont are trying, because they recognize their human duty, to care for their fellow citizens.
By contrast, that convoluted, complex, tangled labyrinth known as the Affordable Care Act (nee Heritagecare, nee Romneycare, now Obamacare), covers some people more and some people less, with deductions for all sorts of contingencies — that plan — not Medicare for All — is the best the President of the United States, given unlimited resources, can propose.
Why are the Americans in Vermont different from Americans as a whole? They aren’t. The difference is in their leadership.
Vermont is led by a group of courageous, compassionate giants, whose primary concern is the well-being of their fellow human beings. America is led by a group of frightened, means-spirited, little people, whose primary concern is their wealthy contributors, their own future incomes and a future Presidential Library.
Would that Governor Peter Shumlin were President, and not that other guy. How great this nation could become.
It’s a study in contrasts.
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.