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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, and the motive is the gap.
First, read what the rich want to do. Then see what the American voter says about it:
GOP budget slashes spending, aid to poor
Associated Press By ANDREW TAYLOR, April 2, 2014 11:11 PM
Rep. Paul Ryan’s (R-Wis) plan would wrestle the government’s chronic deficits under control after a decade, relying on deep cuts to Medicaid, highway construction, federal employee pension benefits, food and heating aid to the poor, and Pell Grants for college students from low-income families.
It would eliminate health care coverage under the Affordable Care Act while assuming the government keeps $1 trillion worth of Obamacare’s tax increases, and retains a 10-year, $700 billion cut to Medicare that Democrats drove through in 2010 when passing the health care law.
The plan cuts deeply into the middle and lower classes, while not laying a glove on the upper .1%.
Republicans say such tough cuts are required to take on chronic deficits that threaten to sap the economy of its strength in coming years as government borrowing squeezes out savings and investment and spiraling costs of federal retirement and health care programs promise to swamp taxpayers.
You have just read perfect examples of the BIG LIE. The facts are:
1. Deficits do not “sap the economy of its strength.” By adding dollars, deficits strengthen the economy. Austerity(i.e. deficit reduction) saps the economy, as European euro nations prove every day.
2. Our Monetarily Sovereign government has the unlimited ability to create it sovereign currency, the dollar, so never needs to borrow. Further, federal “borrowing” (a misleading word meaning “issuing T-securities,” is a form of savings and investment, so cannot “squeeze out” savings and investment.
3. “Spiraling costs of retirement and health care programs (Social Security and Medicare) cannot “swamp taxpayers” for the simple reason that unlike state and local taxes, federal taxes do not pay for anything. The federal government creates dollars ad hoc, by spending.
The rich want you to believe that federal finances are like personal finances, so you will accept austerity, which widens the gap between the rich and the rest.
But there’s more:
“Just as a weak economy can drag the budget into the red, a responsible budget can help propel the economy forward,” Ryan said. “If Washington is serious about helping working families — or serious about getting families out of work back to work — then it needs to get serious about the national debt.”
When Ryan says “budget,” he actually is talking about the federal deficit, not the national debt — two completely different measures, but he intentionally wishes to confuse the public.
The formula for Gross Domestic Product, the most common measure of our economy is:
GDP = Federal Spending + Non-federal Spending – Net Imports
Because deficit reduction reduces Federal Spending AND reduces Non-federal Spending, mathematically there is no way that deficit reduction can increase Gross Domestic Product, help working families or get families out of work, back to work.
Quite the opposite. Ryan knows this, but he wants you to participate in widening the gap between the rich and the rest.
More than $700 billion in cuts to Medicaid over 10 years would force hundreds of thousands of seniors from nursing home care, for instance, while $135 billion cut from food stamps and other nutrition aid would increase hunger.
Eliminating a mandatory funding stream for Pell Grants would mean fewer poor kids could dream of college, they said, while cuts to education, scientific research and NASA would harm U.S. competitiveness.
Obviously. Only an extremely ignorant person could fail to understand the truth in the above two paragraphs. And Ryan is not ignorant. He has been bribed by the rich to put forth the BIG LIE.
And speaking of ignorant, here are some verbatim comments by readers of the above article.
When I called to turn in my niece for welfare fraud I was told they don’t have enough people to investigate her. She had two kids, two baby daddies and gets food stamps, medicaid, housing, wic, and cash while living with the second baby daddy. He works while she sits home and collects off the taxpayer. I don’t understand why our government doesn’t throw these people off the system. Sick of hearing I got babies and you have to support us. These are the people who need to be cut off. Medicare cuts to the deserving are just offensive! If you don’t love your babies enough to work for them I certainly don’t. Cut them off immediately and we will save billions.
I believe in helping people but its out of control in this country .its time to say NO. If you want to eat get off your #$%$ and get a job get off the couch. my neighbors are 25 and 34 years old both live with their mom get welfare and food stamps (which they trade for drugs ) and have no intention of ever working stay up all night watching t v and sleep all day we have become a welfare society its time to tell the abled body to go to work heres the plan you have 10 days to go see a state doctor and mental health specialist if they say you are physically and mentally able to work your benifits are cut immediately.take that money being spent on welfare and food stamps create a low interst or no interst fund to create or expand business interst free you would be shocked at the outcome in 2 years but for some reason the liberal media and the democrats aren’t smart enough to see this but then again look what the #$%$ did with obamcare people have to start being accountable.
Didn’t read the article, gave up on mainstream media and lying leftists years ago. If real facts and news were reported, they would tell you we are on an unsustainable path. If we had truth tellers and not a permanent political class, they would tell you they cut, CUT….700 billion from medicare, and not over 20 years, but immediately, and gave it to Obama care. They would tell you they have no idea how they will pay the 100 trillion in unfunded entitlements such as social security and the rest. They would tell you your standard of living and wealth has dropped, unless you are the super rich, such as they are. They would tell you your kids and grand kids face a very uncertain , troubled, economic future. They would tell you they have taken care of themselves and their families financially. They would tell you a crash is inevitable, because they cannot, and will not stop themselves. They would tell you the facts, but that means admitting truth and truth is an enemy of corruption.
So there you have it. The BIG LIE swallowed completely by an ignorant, compliant middle- and lower-class, determined to vote for their own financial suicide.
In a democracy, the least intelligent have the same vote as the most able. Democracy is not what has made America great. Surviving democracy is what has made America great.
Will we continue to be so fortunate?
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.