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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.
As we have said many times, the upper .1% power group has bribed virtually all politicians (with the connivance of the right-wing Supreme Court), via campaign contributions and promises of lucrative employment later. The goal: To continue widening the gap between the rich/powerful and the rest.
Clearly, the extreme right-wingers (the Republicans) are more in the pockets of the rich than are the less-right-wingers (the Democrats). But don’t think Democrats are blameless.
Remember, they do control the Presidency and the Senate. So the widening of the gap couldn’t happen without their participation.
In that vein, I bring you the entire text of a letter I just today received from my Democrat Senator, Dick Durbin:
Dear Mr. Mitchell:
Thank you for contacting me about Congress raising the debt ceiling. I appreciate hearing from you.
Actually, I contacted him about eliminating the debt ceiling, but he changed it for his own convenience.
On October 16, 2013, the Senate passed a bill (H.R. 2775) to extend the debt limit through February 7, 2014.
I am not willing to gamble with the full faith and credit of the United States by not raising the debt ceiling. Forcing the federal government to default on the nation’s debt would be the single most irresponsible act we could do to our economy as it continues to rebound.
Refusing to raise the debt ceiling would force the government to limit or suspend payments to a whole host of federal beneficiaries, from Social Security and Medicare recipients, to military personnel, veterans, federal workers, defense contractors, student loan recipients, state governments, and our bondholders throughout the world.
He is correct, although why would he include student loans in his list. The government, cruelly and needlessly, makes money on those.
The worst economic recession since the Great Depression sent our national debt soaring. Although recent increases in spending were necessary as we worked to jumpstart our economy, we cannot sustain deficits of this magnitude over the long term. We must work toward real solutions that will reduce the deficit in a responsible and balanced way.
This is 100% bullcrap. The politicians have been saying exactly the same thing at least since 1940 (!) and surely well before that. In those days the deficit and debt were called “ticking time bombs,” so as to scare the public.
Those phony time bombs still are ticking, and the public still is scared.
Over the past several years, I have worked with my colleagues to reduce the national debt and to control our federal deficits.
In other words, this bribed Senator, who pretends to be a friend of the middle class, has be conspiring to reduce the amount of money in the economy — a situation that always affects the poor far more than the rich and powerful.
I was honored to have served on President Obama’s Bipartisan Fiscal Commission, spending much of that time learning from experts who explained the risk that our growing debt poses to our national well-being. I also have worked with a bipartisan group of my colleagues in the Senate to craft a balanced plan for controlling our federal deficits.
He wants me to believe that increasing the money supply poses a risk to our “national well-being.” He previously wanted me to believe that deficit spending (i.e. increasing the money supply) helped get us out of the Great Recession.
Hmmm . . . does anyone see anything wrong here?
And yes, “bipartisan” and “balanced.” What could possibly be wrong with something that is “bipartisan” and “balanced” — oh, except for a bipartisan and balanced scheme to widen the gap between the rich and powerful, and the rest of us.
There are only two honest ways to reduce our debt: cut spending and raise revenues. I am committed to pursuing proposals that do both. This is going to require sacrifice from both sides of the aisle.
If those are “honest,” we’d be better off with dishonest. Oops, we already have that. It’s called the Big Lie.
No, it won’t require sacrifice on either side of the aisle. You bribed politicians will not feel any sacrifice. None at all. It will be we citizens who do the sacrificing.
This is not a partisan problem, it is an American problem. I will continue to work to find commonsense solutions to rein in our ballooning debt without risking the economic recovery or breaking promises to senior citizens, working families, and future generations.
What can one say about such Big Lies? Hes’ going to cut the deficit “without risking the economic recovery.” He’s going to cut the deficit without “breaking promises to senior citizens, working families, and future generations.”
Really? What is his next magic trick? Building highways, free? Repairing the infrastructure, free. Fund medical research, free. Inspect food and drugs, free?
And what about the billions spent secretly spying on Americans? Will that now be free, too?
Or will you cut spending on Social Security? On Medicare? On federal employment? On regulating Wall Street? On food stamps? Where exactly are you going to cut spending?
And as for increasing revenues (the euphemism for “taxes), will you “broaden the tax base? Increase FICA — again? What exactly will you do to screw the middle and lower income groups even more? Institute the Obama “grand bargain,” potentially the biggest screwing of all time?
Thank you again for contacting me. Please feel free to stay in touch.
Sincerely, Richard J. Durbin United States Senator
That he should write me such a letter, and expect me to believe even one of his Big Lies, tells me he is confident I am stupid enough to believe them.
But then, most Americans do believe them, so what is my problem?
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. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (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.
6 thoughts on “–In case you thought right-wingers were the only liars . . .”
At least he said he wants you to stay in touch.
Why not elucidate him on how wrong he is on his deficits hysteria?
“Actually, I contacted him about eliminating the debt ceiling, but he changed it for his own convenience.”
It was probably a form letter. All he did was put your name at the top after Dear…
A giant cargo cult was created in the late 90s when the deficit shrank to nothing and the economy, because of the rise of the internet and the dot com bubble, was booming.
Bill Clinton, ever the political opportunist, seized deficit reduction as the CAUSE of the good economy, and it worked.
Deficit reduction has been a thing with the Democrats ever since. Just look at Obama; the guy is obsessed with getting that deficit down.
I thought oil prices were the major cause of inflation?
“The basic reason for this is that they have not addressed the real cause of inflation which is an increase in the money supply over and above the increase in productivity.”
Look at the data and decide for yourself:
The more I read about MMT and MS in understanding economics, the more it makes sense – it’s elegant, and it’s too simple.
There is probably no other field where even the supposed foremost experts or learned academics in the field don’t even understand what they are talking about. It seems like politics and ideology (dislike of any government in particular) cloud their ability to observe and understand the facts and their own reasoning in understanding how it all works.
Why does the twenty dollar bill in my wallet have to be “backed” by anything in order for me to collect it and use it to exchange it at the store for stuff that I want? Why back it with gold? I couldn’t care less, I just use it. Regarding dollars as mere tokens to be used as a means for exchange is brilliant, because it’s the truth. The obsession with fiat paper money by the Austrian School is delusional and illogical in my opinion.
“the German hyperinflation was manmade, it was the result of a deliberate political decision to increase the quantity of money de facto without any limit.”
“fiat paper money won’t work.”
“Unbacked paper money is political money and as such it is a disruptive element in a system of free markets. The representatives of the Austrian School of economics pointed this out a long time ago.”