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.
Britain, like the U.S., is ruled by those who wish to widen the gap between the rich and the rest. Here are excerpts from a New York Times article:
UK Needs 25 Billion Pounds of Spending Cuts After 2015 Vote, Osborne Says
By REUTERS, Published: January 6, 2014 at 4:20 AM ET
Chancellor George Osborne said on Monday, “We need to find a further 25 billion pounds of cuts after the election. We have to make decisions about where those cuts are to be found.“
“After the election” is better than “before the election.” That way, the voters will not realize how screwed they are.
“This enormous welfare budget, that ultimately is where you can find substantial savings.”
He already has made “decisions about where those cuts are to be found”: Payments to the poor — of course.
You see, in the world of the rich, the poor have too much money, so the poor and middle classes continually must be beaten down, lest they gain any power at all. To a bribed politician, there is no greater danger than an informed and powerful middle- and lower class.
The UK uses its own currency, the pound. So it is Monetarily Sovereign. Unlike the euro nations, which have no sovereign currency, the UK never can run short of its sovereign currency.
The fundamental formula for Gross Domestic Product is: GDP = Federal Spending + Non-federal Spending + Net Exports. So, do the math:
1. How will a 25 billion pound reduction in Federal Spending affect Britain’s GDP?
2. How will a 25 billion pound reduction in the welfare budget affect the already-too-wide gap between the rich and the rest?
Sadly, the British education system must not have taught its people simple mathematics, else the people long ago would have tossed toadies-to-the-rich Osborne and Prime Minister David Cameron out of office.
Which brings me to the politicians in the US, which are doing much the same thing as the British . . .
Rodger Malcolm Mitchell
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded 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) Or institute a reverse income tax.
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.