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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.
The following comes as a huge surprise to those famous economists from Harvard, University of Chicago, Stanford et al, who have won all those Nobel-related prizes in economics, and to the media and politicians who are paid to indoctrinate you.
GDP Shows Surprise Drop for US in Fourth Quarter
Wednesday, 30 Jan 2013, The Associated Press
The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.
Economists expected the first reading on gross domestic product to show growth of 1 percent.
The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.
The famous economists never knew that cutting federal spending and reducing exports would actually reduce the money supply.
And the famous economists also never knew that a growing economy requires a growing money supply.
This new information comes as a great surprise, not only to the famous economists, but also to the famous economists, politicians and the media writers. No one knew.
The surprise contraction could raise fears about the economy’s ability to handle tax increases that took effect in January and looming spending cuts.
Isn’t it amazing how bleeding a patient is not a good cure for anemia?
The economy may stay weak at the start of the year because Americans are coming to grips with an increase in Social Security taxes that has left them with less take-home pay.
We don’t like “big government.” So we not only keep cutting Social Security, but we take more dollars from the private sector and give them to the federal government (which has no need for them.)
Please don’t ask anyone to explain this. Just trust the famous economists, politicians and the media writers.
And what? — You say increasing the Social Security tax is bad for the economy and completely unnecessary?
Subpar growth has held back hiring.
So federal spending stimulates economic growth and jobs availability? Has anyone told the famous economists, politicians and the media writers?
The (Social Security) tax increase will lower take home pay this year by about 2 percent. That means a household earning $50,000 a year will have about $1,000 less to spend. A household with two high-paid workers will have up to $4,500 less.
Not to worry. The tax increase will have absolutely no effect on the upper .1% income/power group.
This is good, because they are the ones who bribe the politicians (via campaign contributions and promises of lucrative employment), control the media (via ownership), bribe the university economists (via donations and grants), and pay the salaries of economists who work for “think tanks.”
So here is the bottom line, for those of you who have not been hypnotized by the cut-federal-spending, raise-federal-taxes, screw-the-middle-class-and-the-poor lies you have been fed by the bought-and-paid-for economists, politicians and the media writers:
1. GDP = Federal Spending + Non-federal spending + Net Exports. When we reduce any of those three terms to the right of the = sign, we reduce GDP.
2. When we cut GDP, we cut employment and widen the GAP between the very rich and the rest.
3. Increases in federal spending (aka “big government”) primarily benefit the middle- and lower income groups. Cuts in federal spending widen the GAPs between the rich and the rest.
In a few months, Americans obediently will trudge to the polls, and mentally benumbed by economic lies, will vote for the politicians who promise loudest to cut “big government,” broaden the federal tax base and balance the federal budget — each guaranteed to reduce GDP and employment.
All together now: “Pass that cup of hemlock, please.”
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.