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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.
Britain brilliantly did not give up its Monetary Sovereignty to join the euro nations. It kept its sovereign currency, the pound, and as a result, has the unlimited ability to create its money.
The British government never, and I mean NEVER, can run short of pounds to pay its bills.
Compare their situation with that of Greece, Spain, Italy, France, Ireland and the rest of the euro nations, none of which has a sovereign currency.
They all use the euro, the supply over which, they have no control. They are at the mercy of the EU, which is why they are in trouble. They cannot create the money to pay their debts.
So Britain is safe, right?
Yes, they are safe from the EU, but not safe from their own politicians:
December 4, 2013 9:31 pm
Osborne holds out prospect of surplus
By Chris Giles and George Parker
George Osborne will proclaim on Thursday that a budget surplus is in sight for the first time since the millennium, raising Tory hopes of significant tax cuts in the next parliament after nearly a decade of austerity.
The chancellor will deliver his Autumn Statement against a backdrop of sharply rising growth forecasts, which could pave the way for Britain to be back in the black by 2018-19 – almost two years earlier than seemed likely in March.
What does it mean for a Monetarily Sovereign nation to be “in the black”? For Britain, it means more pounds are sucked out of the private sector than flow in.
And who is the private sector? The citizens of Britain.
A government surplus = a private sector deficit. The British citizens are being impoverished.
Although Mr Osborne will say tax cuts should be introduced when the country can afford them, he will also urge Tory MPs not to get carried away by the recent recovery, with austerity far from over.
However the chancellor may struggle to contain the euphoria of Conservative MPs who believe that new growth forecasts from the Office for Budget Responsibility will confirm their view Mr Osborne’s fiscal Plan A has been fully vindicated.
Ah the euphoria of the conservatives, watching the populace starve in economic misery. How wonderful, that the gap between the rich and the rest, grows wider and wider and wider.
It’s what the rich pay the conservatives to do.
Once the government is running a surplus, David Cameron has made it clear he would seek to reduce taxes.
He will reduce taxes primarily on the rich, because after all, they pay the most taxes. And, the rest of Britain’s population will make so little money, they’ll pay little taxes, anyway.
And now for the funniest line of the entire article:
Speaking from China, he said the country needed “to put some money aside”, but added “it is possible to reduce people’s taxes as your economy recovers”.
“Put some money aside”? The British government already has the unlimited ability to create pounds. So where is “aside”?
This surely is one of the nuttiest statements any politician ever has made, perhaps exceeded only by, “Trust me.”
Ed Balls, shadow chancellor, will insist that the recovery is not feeding into household budgets and that working people are £1,600 a year worse off than when David Cameron entered Downing St.
What a surprise. Working people are suffering because of Britain’s austerity. Not to worry. The rich are doing just fine — better than ever.
To address Labour’s successful “cost of living” attack, Mr Osborne is expected to cancel a planned rise in fuel duty as well as confirming a transferable married couples tax allowance and free school meals for all infants.
To help fund those plans – costing about £2.3bn – the chancellor will announce a further cut of £1bn a year from central government spending, a foretaste of much bigger reductions planned for the next parliament in welfare and other spending.
The usual political magic show. “Focus on my hand putting a tiny bit of money in your hand, but pay no attention to my other hand stealing lots of money from your pockets.”
The rich grow richer; the poor grow poorer. And everyone who matters, is happy.
During the bombings of WWII, Britain learned to live down in the tube. They soon may learn to do it, again. So, stiff upper lip; keep calm and carry on.
Conservative George Osborne is the British government’s version of Jack Kevorkian.
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.