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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.
Repeatedly, you’ve been told about The Big Lie — how the ultra-rich want you to believe the federal government is running short of dollars, the purpose being to reduce benefits to the not-ultra-rich. Well here’s an example:
New York Times
Older Pool of Health Care Enrollees Stirs Fears on Costs
By MICHAEL D. SHEAR and ROBERT PEAR, JAN. 13, 2014
WASHINGTON — People signing up for health insurance through the Affordable Care Act’s federal and state marketplaces tend to be older and potentially less healthy, a demographic mix that could threaten the law’s economic underpinnings and cause premiums to rise in the future if the pattern persists.
Questions about the law’s financial viability are likely to become the next line of attack from Republicans (who) quickly seized on the government’s progress report as evidence that the health insurance law would not work.
But administration officials expressed optimism that more young people would sign up in the months ahead, calling the latest enrollment numbers “solid, solid news” for the health care law.
If the ACA was being underwritten by a private (monetarily non-sovereign) company, the above paragraphs would make sense. After all, private insurance depends on those most likely to need payments being supported by those less likely to need payments.
That’s how insurance companies make money. They avoid what’s called “adverse selection.”
And that is why, for instance, life insurance is cheaper for young people than it is for old people.
But ACA is not underwritten by private, for-profit companies. It is underwritten by the federal government — the Monetarily Sovereign federal government — which never, never, ever can run short of dollars.
So the New York Times article is 100% choreographed bullshit.
It is choreographed by the rich to make the rest believe the government can be unable to afford ACA as it stands, so benefits must be reduced and/or taxes on the middle must be increased. That is The Big Lie.
It’s exactly the same Big Lie that claims Social Security will run out of money, so benefits must be reduced and/or taxes increased. It is the same Big Lie that claims the federal deficit and debt must be reduced, because they are “unsustainable.”
Brendan Buck, a spokesman for the House speaker, John A. Boehner, predicted that the White House would fail to meet its goals and said that insurance premiums would rise.
This is the same Republican John Boehner, who famously lied, “Let’s be hones. We’re broke.”
Oh, sure. Boehner wanting to be honest. That’s a howler. The U.S. federal government, which has the unlimited ability to create dollars, somehow is “broke.” What a load of malarkey.
But insurance premiums probably will rise, at the behest of the ultra-rich, even though premiums could be, and should be, zero.
Of people choosing plans so far, 60 percent selected silver plans and 20 percent signed up for bronze plans. Thirteen percent chose gold plans, and 7 percent platinum coverage.
Translation: Because the federal government unnecessarily charges for ACA, the average person cannot afford the best coverage. That is reserved for Congress, the President, and other powerful liars.
Meanwhile, the innocent public, which does not understand the difference between Monetary Sovereignty (has the unlimited ability to create its sovereign currency) and monetary non-sovereignty (has no sovereign currency), will buy into the Big Lie, and accept paying higher, ever higher, premiums for reduced benefits.
And the gap, between the rich and the not-rich, continues to grow, while Obama and both parties shed crocodile tears about the disappearing middle class.
Time to wake up, suckers!
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. Federal deficit growth is absolutely, positively necessary for economic growth. Period.