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, and the motive is the gap.
It seems almost impossible, but I actually do agree with Timothy Geithner about something.
No, I don’t agree with the Geithner, who decided that saving the finances of such luminaries as Jamie Dimon (JPMorgan Chase & Co.) and Lloyd Blankfein (Goldman Sachs) was far more important than saving the economy and the life savings of millions of Americans.
And no, I don’t agree with the Geithner who now has received the usual political bribery. i.e. lucrative employment after leaving office:
As Timothy F. Geithner began making the publicity rounds on Monday to push his newly released memoir, the former Treasury secretary defended his decision to join a top private-equity firm after leaving office last year.
Critics have charged that Geithner was cashing in on his government experience and was another example of the too-cozy relationship between Washington and Wall Street.
And I don’t agree with Geithner’s rewarding fraudmeisters like Richard Fuld (Lehman Brothers), Jimmy Cayne (Bear Stearns), Stanley O’Neal (Merrill Lynch), Chuck Prince (Citigroup) and Ken Lewis (Bank of America), who prospered beyond most people’s imagining.
But, I do agree with this:
Geithner’s new book rips Kirk on U.S. debt and China
May 12, 2014|By Katherine Skiba | Tribune reporter
Geithner takes a shot at Sen. Mark Kirk of Illinois for “delusional” fears when Kirk purportedly warned officials in China not to buy U.S. Treasury securities or other U.S. debt.
Kirk, a Republican, warned the Chinese that U.S. spending “was driving us toward default” and the Federal Reserve Bank was “creating hyperinflation.”
Geithner writes. “Not only were those fears delusional, but he was undermining American interests on foreign soil.”
Kirk’s office issued a brief statement today that neither confirmed nor denied Geithner’s characterization of the Illinois lawmaker’s comments to the Chinese. It said:
“Since traveling to China in 2009, our nation’s debt has grown from $11.9 trillion to $17.5 trillion. What is fact, and not delusional, is that our spending habit cripples our economic recovery and is undeniably unsustainable.”
So, I do agree with Geithner that Kirk was wrong — diametrically wrong — though I don’t think Kirk is delusional. Kirk knew exactly what he was doing.
As a solid member of the “I-trade-votes-for-dollars” club, Kirk was doing the bidding of the upper .1% income/power group, by spreading the fiction that deficit spending “cripples our economic recover” (Actually, deficits stimulate recovery) and is “unsustainable” (Actually, deficits are infinitely sustainable).
The rich do not want the 99.9% to realize that federal spending on benefits to the not-rich narrow the income/power gaps, and are exactly what the economy needs. So Kirk, receiving money and promises from the .1%, does as he is paid to do.
That’s loyalty from an obedient soldier.
Unfortunately, Geithner reverts to form, when he writes:
“I sometimes wondered where this newfound right-wing enthusiasm for fiscal discipline had been during the Bush years, when unfunded wars, tax cuts, and a new Medicare prescription drug benefit had helped turn the Clinton surpluses into deficits.”
Yes, he implies the BIG LIE, the false idea that federal financing is like personal financing, where spending should be balanced by income.
In fact, Clinton’s wonderful surpluses led to a recession immediately after he left office — a recession that was cured with — you guessed it — increased deficit spending.
By why bother with details and facts, when the public will accept the BIG LIE??
Anyway, the supposedly “moderate” Republican Mark Kirk, has proved himself to be no different from the rest of the Republicans, the Democrats and the President himself — all bought and paid for by the 1%.
Now, let’s talk about the $100 million needed for the Obama library. Penny Pritzker, are you listening?
Rodger Malcolm Mitchell
Ten 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. Tax the very rich (.1%) more, with much higher, progressive tax rates on all forms of income. (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
Vertical gray bars mark recessions.
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.