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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.
I must confess to being puzzled by articles like this one from Reuters. Here are a couple excerpts:
Investors pile into Greece and Portugal on recovery bet
BY FRANCESCO CANEPA AND MARIUS ZAHARIA
LONDON Mon Mar 24, 2014 9:28am EDT
Yield-hungry investors are flocking back to Greek and Portuguese markets, shunned by international buyers for four years, as the outlook for the bailed-out countries improves.
Portuguese and Greek shares and bonds have been the best performers in Europe in 2014, and funds invested in them are making a killing.
“It’s not so much an interest-rate-driven rally but much more a structural shift and a perception that the euro crisis is behind us,” said Franz Wenzel, chief strategist at AXA Investment Managers.
After nearly crashing out of the euro zone in 2012, the Portuguese economy is already rebounding, while Greece’s recession is easing.
It seems that beauty indeed is in the eye of the beholder, because this is what “easing” and “rebounding” look like:
Last year, Portugal lost 925 million euros; the year before that, 889 million euros flowed away.
Year after year after year, Portugal loses money, and has no way to replace it.
This is what Portugal’s percapita GDP looks like:
And that is what’s meant by “Easing” and “Rebounding”?
Portugal is monetarily non-sovereign. Unlike such Monetarily Sovereign nations as the U.S., Canada, UK, China et al, Portugal has no sovereign currency. So, unlike those Monetarily Sovereign nations, Portugal cannot create money. It relies on Net Exports (which repeatedly are negative) and gifts from the EU. But the EU lends, not gives, and those loans must be repaid.
Visualize a person who is deeply in debt, with no source of income, and lots of expenses. That’s Portugal. In short, Portugal’s bottle of money has a gigantic hole at the bottom, and nothing is coming in from the top. So where will Portugal obtain money to grow its economy? Where, indeed.
And here’s Greece’s “easing.”
Now do you understand “Easing” and “Rebounding”?
Greece too, is monetarily non-sovereign, so it too cannot create euros. Where will its money come from?
The euro is an ongoing, predictable, rolling disaster, that has two, and only two solutions:
1. The euro nations become Monetarily Sovereign by reverting to their own sovereign currency
2. The EU gives, not lends, euros to the euro nations, as needed.
Meanwhile, the pain continues, as plan after plan is put forth to “save the euro.” (Not save the people; save the euro. To hell with the people.)
A Third Weapon to Save the Euro – NYTimes.com
Oct 13, 2012 · The president of the European Council has proposed creating a separate budget for the euro zone, perhaps equipped with a central treasury and borrowing powers.
Three Months to Save the Euro: George Soros
Jun 03, 2012 · Euro-zone governments have around three months to ensure the survival of the single currency, billionaire investor George Soros said in a speech on Saturday.
To Save the Euro, Germany Must Leave It – NYTimes.com
Jun 26, 2012 · AS the European economic crisis continues to intensify, policy makers are faced with the need to take ever more extreme measures to prevent a financial …
Europe’s currency crisis: How to save the euro | The Economist
http://www.economist.com › Financial rescue plans
Sep 17, 2011 · Europe’s currency crisis How to save the euro It requires urgent action on a huge scale. Unless Germany rises to the challenge, disaster looms Sep 17th …
In case you wonder why everyone seems so interested in saving the euro, rather than saving the unemployed, starving people of the euro nations, the reason is quite simple. The euro, by forcing austerity, is one of history’s greatest devices for widening the gap between the rich and the rest, and thus enslaving the European population
Meanwhile, the experts tell everyone, “The euro crisis is behind us,” essentially the same “calming” lie they have foisted on the populace for many years. But where o where will the euros come from?
Amazingly, the European people seem to accept this stuff.
Maybe it’s just me, but I don’t get it.
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.