Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●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.
======================================================================================================================================================================================

How are these seeming disparate articles ironically related?

First, this article:

Detroit’s Emergency Manager Shuts Off Water for Thousands of Homes; Is Your City Next?
By Joan Brunwasser

Detroit filed the largest Chapter 9 municipal bankruptcy action in US history in July 2013.

The governance and access to billions of dollars in revenue flowing through the Detroit Water and Sewerage Department (DWSD) has become a major political football and economic prize.

This month, DWSD commenced an unprecedented mass water shutoff program targeting 150,000 accounts more than two months and $150 in arrears. Meanwhile, more than $30 million in commercial and industrial accounts goes uncollected.

The objective is to eliminate bad debt and make DWSD look better for purposes of active ongoing regionalization and privatization negotiations. A triumph of corporate property interests over fundamental human rights.

(The poor are) scrambling for water from family, neighbors, friends, whatever; trying to find new housing with water included, trying to keep the child welfare system from taking away their kids, trying to find a place to shower and use the toilet.

What’s more important: Human rights, social justice and protecting the Great Lakes with a sustainably funded water and sewer system at their geographic heart?

Or setting themselves up with a Wall Street-model smash-and-grab privatization operation to make a quick economic killing for some fast operators? They’re opting for the latter, and the hell with the people of Detroit who are in their way.

DWSD has been privatizing gradually for decades under Federal Court supervision; using major corporations like Infrastructure Management Group (IMG) and EMA Inc. to take over more and more of their core operation all the time. The emergency manager put out bids to privatize, which have been filed in secret.

The powerful suburban county executives, who will take over this incredibly important and lucrative system have said they favor privatization and don’t want the burden of running it in their low-tax jurisdictions.

I urge you to click this link Detroit’s Emergency Manager Shuts Off Water for Thousands of Homes; Is Your City Next? and read the entire article, to get the full flavor of the massive greed and evil that is destroying the people of Detroit.

Then, read this article:

Obama to ask for more than $2 billion in emergency funds to stem immigration influx
David Nakamura

The Obama administration, in a dramatic escalation of its border-control strategy, will seek more than $2 billion in emergency funds to help stem an influx of Central American women and children entering the country illegally, as well as new measures to more quickly deport those already here.

The administration will ask lawmakers to modify existing statutes to make it easier to return unaccompanied children to their home countries.

Escalation of enforcement is likely to be met with skepticism from immigration advocates, who have expressed concerns about the treatment and welfare of the children.

Said Kevin Appleby, migration policy director for the U.S. Conference of Catholic Bishops. “It could result in vulnerable children being sent back to real danger and possible harm or death.”

What these articles have in common is the human catastrophe taking place in America. At our border and in Detroit, poor children suffer, sicken and die, all for lack of compassion by America’s upper- and middle-income groups.

Children from Central America leave their families to escape grinding poverty and danger, to make the long perilous trip to safety and freedom in America, only to be drowned by a selfish America that says it has no room on our gigantic, half vacant raft.

Children in Detroit go dirty, thirsty and hungry, and will be taken from their parents, all for lack of water, because the bribed politicians and the greedy private sector, want a piece of a lucrative pie.

And the irony: That right-winger-in-liberal-clothing, the President who raised FICA and repeatedly has tried to cut Social Security, blithely asks Congress for $2 billion — not to ease the pain of the children, not to help solve the problems in Detroit, but to send children back to their misery and death — essentially to toss them off the raft into the wild ocean.

This President, who has deported more than any previous President, coldly wants to increase deportations.

This President, who at the click of a computer key, could allocate that $2 billion, or $20 billion, or $200 billion, at no cost to anyone, to take giant steps in solving these humanitarian crises. But he doesn’t click that key, because he and Congress have been bribed (via campaign contributions and promises of lucrative employment later) to widen the GAP between the rich and the rest.

When even a Democrat President lacks compassion and human kindness, you know that our once-great nation has lost its moral compass, and has descended into greed, meanness and heartless indifference.

Send the poor foreign children back to starve and die? Let the poor citizen children starve and die right here in America? For God’s sake, what is wrong with you, Mr. President?

To paraphrase Joseph Welch, “Have you no sense of decency, sir? President Obama, at long last, have you left no sense of decency?”

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
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 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.

#MONETARY SOVEREIGNTY

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●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.
======================================================================================================================================================================================

As we all know, private industry does everything smarter, faster, better, more honestly and more efficiently, than does the federal government.

We know this because . . . well . . . because it is what we have been told. Repeatedly.

By whom? Let’s put on our Sherlock Holmes hats and follow the trail.

House Speaker John A. Boehner’s call to sue President Obama for overstepping the bounds of executive authority marks a stunning break for Republicans, who for years have tried to keep the courts out of the big questions of the day.

Analysts said the switch signals the continued ascendance of the libertarian wing of the Republican Party.

O.K., the first clue is that the Republican party, already dominated by the Tea Party, also is becoming more libertarian.

So what?

Annual Privatization Report 2014 Federal Government Privatization
By The Reason Foundation

The Business Coalition for Fair Competition, an alliance of associations, think tanks, corporations and individuals, released a list of its top 10 most egregious examples of unfair government competition with private enterprise for the year.

So, we’re not talking about doing things “smarter, faster, better, more honestly and more efficiently.” We’re talking about fairness.

Even if private industry were to do things dumber, slower, worse, more criminally and less efficiently, it simply wouldn’t be “fair” for those big federal government bullies to do the work.

Who says so? For one, the Reason Foundation.

Who?

Reason Foundation
Who is on Reason’s Board of Trustees?
David H. Koch, Koch Industries, New York, NY

Reason Foundation advances a free society by developing, applying, and promoting libertarian principles, including individual liberty, free markets, and the rule of law.

O.K., that tells us something. The Reason Foundation is a libertarian mouthpiece, partly funded by one of the richest industrialists in the world, David Koch.

And, who else says says private industry is better than government? That above-mentioned Business Coalition for Fair Competition.

Who?:

Business Coalition for Fair Competition

The Business Coalition for Fair Competition (BCFC), (is) a coalition of trade associations, businesses, and organizations dedicated to free enterprise, relief from unfair government sponsored competition, and smaller, more efficient government.

“Smaller government.” Where have we heard that, before? Isn’t that part of the Tea Party’s mantra?

So now, we have the Republican Party, the Tea Party, the Libertarian Party and David Koch, all telling us that private industry work is better than federal government work.

And they are telling us the issue is not “smarter, faster, better, more honest or efficient; it’s fairness.

In 1980, the first White House Conference on Small Business made unfair competition one of its highest-ranked issues.

It said, “The Federal Government shall be required by statute to contract out to small business those supplies and services that the private sector can provide.

The government should not compete with the private sector by accomplishing these efforts with its own or non-profit personnel and facilities.”

In 1986, the second White House Conference made this one of its top three issues. It said, “Government at all levels has failed to protect small business from damaging levels of unfair competition.

And the 1995 White House Conference again made this a priority issue when its plank read, “Congress should enact legislation that would prohibit government agencies and tax exempt and anti-trust exempt organizations from engaging in commercial activities in direct competition with small businesses.”

Notice something interesting, here? While they still fail to talk about doing better work, the fairness focus is on small business.

Think about it. The Republicans and David Koch worried about small business?? Gimme a break!

David Koch and his brother own that “small business,” Koch Industries, which in turn owns such “small businesses” as, Invista, Georgia-Pacific, Flint Hills Resources, Koch Pipeline, Koch Fertilizer, Koch Minerals and Matador Cattle Company.

According the the Koch Industries web site:

“Koch companies have a presence in about 60 countries and employ more than 100,000 people worldwide, with about 60,000 of those in the United States. They have invested approximately $65 billion in acquisitions and other capital expenditures since 2003.

“Koch companies are involved in refining, chemicals and biofuels; forest and consumer products; fertilizers; polymers and fibers; electronic components; process and pollution control equipment and technologies; commodity trading; minerals; energy; ranching; glass; and investments.”

To these guys, “small business” means a political bribe (er, ah, “contribution”) of less than $500,000. Don’t even begin to think these business Goliaths are at all concerned about “Bob’s Plumbing” or “Bill’s Landscaping.”

Here are some examples of “unfair” competition by the federal government, as presented by the Republican, Koch-sponsored, libertarian, Tea Partyesque, Reason Foundation:

The Department of Defense (DoD) operated 178 grocery stores
(domestic commissaries) with a $1.3 billion annual subsidy, as well as
60 movie theaters world-wide, costing $120,000 each.

The commissaries cost taxpayers nothing (because federal taxes do not fund federal initiatives. The two are unrelated.)

The commissaries sell food, clothing and hard goods to military families at below cost prices. If they were privatized, the need for profit would require prices to rise substantially, forcing military families to pay a great deal more for virtually everything.

How this would be an improvement for America, is not revealed.

Local and regional transit authorities, heavily subsidized by the Federal Transit Administration, engaged in competition and duplication with private sector motorcoach operators.

If these “local and regional transit authorities” were not “heavily subsidized,” transportation prices would rise, and less money would come into the local and regional areas. This is good??

Implementation of Obamacare empowered the government to hire Health Care “Navigators” in 2013 to engage in unfair government competition with private sector insurance brokers.

More concern about “unfair competition,” with no concern about prices, efficiency, etc. Nor is any explanation about why it is preferable for private workers, rather than public workers, to have jobs.

Some 850,000 federal employees are engaged in positions that are commercial in nature. Little is being done to privatize those positions, or even subject them and the functions in which they reside to any direct public-private cost comparison or evaluation.

Yes, the government employs those 850,000 people, paying them salaries and providing them with health-care benefits. So?

Most tellingly, the Republican, Koch, libertarian, Reason Foundation take both sides of the argument. They bemoan the lack of a “public-private cost comparison,” but also bemoan the government offering services at less cost to the public, as “unfair competition.”

Gotcha!

To summarize federal privatization:

1. The upper .1% income group always wants privatization, because it puts money into their pockets. Despite the red herring of “competing with small business,” very little privatization goes to small businesses.

Privatization merely transfers business from one large competitor (the federal government) to another large competitor (the company receiving the contract).

2. The federal government is able to provide goods and services at less cost to the populace than can private industry, for two reasons: No profit motive and unlimited, free funding. (The federal government can invest billions into a project, without asking for any tax money).

3. The sole advantage of private industry comes from competitive initiative. Competition breeds effort.

4. However, privatization usually involves the transfer of government operations to one organization, which does not compete. Example:

Selling TVA: Obama budget says state, local stakeholders could buy government utility

In the White House budget plan for fiscal 2015 released Tuesday, the Office of Management and Budget suggests the federal government consider transferring or selling TVA to state and local governments, power cooperatives or energy companies in the Tennessee Valley, to help cut the federal debt associated with the government-owned utility.

“The administration continues to believe that reducing or eliminating the federal government’s role in programs such as TVA, which have achieved their original objectives, can help mitigate risk to taxpayers.”

That last line came from the the administration of Barack Obama, the noted FICA-raising, Social Security-cutting, right-winger-in-left-winger-clothing.

The line is an example of the BIG LIE. The federal government, being Monetarily Sovereign, can invest infinite amounts of money into any project, and take any amount of losses, without charging taxpayers one cent. There is no risk to taxpayers.

But the local governments and private business are monetarily non-sovereign. They cannot absorb losses. So what will they do when given TVA? The local governments will raise taxes and prices, impoverishing taxpayers.

The power cooperatives or energy companies will cut services and raise prices, enriching their owners and impoverishing their customers.

As in almost all cases of federal privatization, the citizens and small businesses will be the losers, while the rich grow richer. And all this is done in the name of “fairness” and helping “small business.”

As one small step in understanding the federal government shell game, keep this immutable formula in mind: Federal sector privatization = private sector scam.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
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 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.

#MONETARY SOVEREIGNTY

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●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.
======================================================================================================================================================================================

Considering how inept and indeed, criminal, Congress is, to call something the “worst” law really says a lot. But that is my opinion, and I’ll let you be the judge.

If you haven’t already, you soon will hear a great deal of garbage about a truly garbage law: H.R 2847, aka “Hiring Incentives to Restore Employment Act” aka HIRE.

Summarized in Wikipedia, one purpose of the law is:

. . . to provide payroll tax breaks and incentives for businesses to hire unemployed workers.

The law includes the usual complicated, convoluted formula, which is Congress’s method for obscuring the real negative effects of its legislation:

Employers are eligible for a payroll tax credit when the employer hires certain new employees.

The employee must have either been unemployed for at least 60 days prior to hire or worked fewer than 40 hours for another employer during the previous 60 days.

Employers do not pay the employer portion of social security tax, which is 6.2 percent, on wages paid to eligible new hires.

In addition, employers receive a general business income tax break if the employer continues to employ the new hire for at least 52 weeks.

The tax break is the lesser of $1,000 or 6.2 percent of wages paid to the new employee during the 52-week period.

Ineligible are employees who earn more than $106,000 per year and employees who displace a current employee, unless the first employee resigned or was terminated for cause.

If that unintelligible law isn’t twisted enough. Congress claims the need to “pay for it” by adding another more sinister law: Foreign Account Tax Compliance Act of 2010 (FATCA). According to Money News

FATCA deals with U.S. taxpayers that hold foreign accounts overseas.

It requires them to report their foreign accounts and offshore assets to the government and foreign financial institutions (banks, stock brokers, hedge funds, pension funds, insurance companies, trusts, etc.) are also required to report information about the ownership of overseas assets.

These institutions will have to send annual reports to the IRS on the name and address of each U.S. client as well as their largest account balance in the year and their total debits and credits within the accounts.

If an institution does not comply, the United States will impose a 30 percent withholding tax.

There are other features of this monster set of laws, which I won’t describe. First I’m not tax-law competent enough, and second, the details aren’t the point, which is that the law is based on three myths.”

Myth 1. In exchange for a payroll tax credit, an employer will hire someone he doesn’t need. As a businessman, who over the years has employed thousands of people, I can assure you of this: I never hired someone I didn’t believe I needed.

The cost of employees is so great, that a small reduction in taxes would not entice me. In fact, my thought always was to do everything possible not to hire people.

As business grew, I would create efficiencies, add equipment, farm out certain functions, and only as a last resort, would I hire people.

And I certainly would be reluctant to hire someone I had to keep for 52 weeks.

Myth 2. It’s better for the economy, i.e. reduces unemployment, to hire someone who currently is unemployed than to hire someone who is employed. Only in the world of Congress, could this make any sense at all.

As mentioned in Myth #1, businesses only employ the people they feel they need. Whether a company hires an unemployed person or an employed person, makes no difference in total employment.

Yes, hiring an unemployed person can reduce unemployment. But hiring an employed person, causes him to leave his previous job, which creates a need there. So they hire someone, which also reduces unemployment.

The key to reducing unemployment is not a naive, complex law to reward employers for hiring the unemployed, as opposed to hiring the employed. The key to reducing unemployment is to increase the need for hiring.

How? By strengthening the ability of the middle- and lower-income groups to purchase.

If the people are stronger financially, they will buy more goods and services, which will stimulate businesses to take on more employees. The “Ten Steps to Prosperity” (below) would do just that.

Except in rare circumstances, companies don’t hire first, then hope business will improve. Companies wait until business improves, then hire to meet the need. Business precedes hiring. The government seems to think hiring precedes business.

Finally, even reducing unemployment is not a worthwhile goal. The goal should be to increase the standard of living of all Americans and to help us achieve happiness we all pursue. That is accomplished, not by making more of us work more. Quite the contrary.

The goal should be for more of us to work less, but receive more. That is what increased efficiency was supposed to accomplish. Instead, we have more of us working less and receiving far less.

The cure: Increased federal social spending. More people receiving more, would spend more, thus encouraging more production,leading to more hiring, which in turn would encourage even more spending, in a rising helix of prosperity.

It all begins with money flowing to the middle- and lower-income groups. It begins with a narrowing of the GAP between the rich and the rest.

Myth 3. The federal government needs additional taxes to pay for H.R. 2847. By now, you have learned this is called the BIG LIE, and is utter nonsense. The U.S. federal government is Monetarily Sovereign. It has the unlimited ability to create its sovereign currency, the dollar.

Even if all federal taxes fell to $0, the federal government could continue paying all its bills, forever.

Bottom line: For the false need (the BIG LIE) to “pay for” a complicated and completely useless employment bill, Congress has established a NASA-style, international information-sharing program, the goal of which is to ensnare the entire world in a gigantic, financial database, allowing all governments to know everything about everyone.

H.R. 2847 in nothing more than the stalking horse for FATCA. Even after H.R. 2847 is shown to be useless, and disappears, FATCA will remain, and yet another step will be taken toward overall and absolute government rule over, and intrusion into, our lives.

Knowledge is power, and in America, the powerful continue to increase their intimate knowledge of us.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
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 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.

#MONETARY SOVEREIGNTY

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●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 rich tell tell you that they are the job creators, while you middle and the poor merely are “takers.” Here is the best 6-minute explanation, I ever have seen.

Who are the job creators?
Yves Smith

This is a short talk by venture capitalist Nick Hanauer, who among other things, was the first non-family investor in Amazon. Hanauer in very simple and effective terms debunks the “rich are job creators” myth.

Take just 6 minutes. Listen to this man. You’ll be glad you did.

The meaning of Hanauer’s short talk is this:

No business hires unless forced to hire by customers. The rich aren’t doing anyone a favor by hiring.

When sales increase, businesses do everything they can to avoid hiring people, because people are expensive.

Only, when there are no other alternatives, will businesses take on the added cost of more people, and even then, they pay as little as they feel they can, to get the quality they need.

Consider the egomanaical phony, Donald Trump. He portrays himself as a “maker.” Nonsense.

This pompous guy is the ultimate taker. He gets all the tax breaks — super low rates on investments — while you salaried slobs pay high rates on your salaries, plus sales taxes, plus regressive FICA taxes.

And as Trump struts around under his comb-over, the middle and lower-income people who vote Republican, invite Trump to ride on their backs.

But Nick Hanauer, who has more money than Trump even can dream of, tells the facts. He reveals that it is the middle income people who create the jobs by spending relatively more on goods and services.

Yes, the middle-income people support the economy and create jobs by spending, while the rich spend a relative pittance.

If you are in the middle-income group, you earn 1/1,000th what an upper .1%er earns. You may buy a car, but the rich guy doesn’t buy a thousand cars. He doesn’t even buy a hundred cars.

You pay relatively more sales taxes, relatively more income taxes and relatively more FICA than does the rich guy. Your cost of food, housing and health care all are a bigger percentage of your income. Compared to you, the upper .1% guy is the ultimate cheapskate.

And yet, some of you don’t even begin to understand why the rich have brainwashed you into committing economic suicide:

Conservatives say “Poor have it easy.”

Pew Research Center sampled a massive 10,013 adults nationwide, sorting Americans into eight political typologies: steadfast conservatives, business conservatives, solid liberals, young outsiders, hard-pressed skeptics, the next-generation left, the faith-and- family left, and bystanders (you can see where you fit into Pew’s map of the electorate here).

When asked if they agree more with the statement that “poor people have hard lives because government benefits don’t go far enough to help them live decently” or “poor people have it easy because they can get government benefits without doing anything,” conservatives overwhelmingly side with the latter.

There’s a reason that Republican politicians insist that unemployment benefits hurt the unemployed, or that food stamps must be cut to prevent the poor from becoming complacent, or coalesce behind budgets that actively attempt to eradicate the social safety net: It’s what the Republican base believes.

Remember this: The Donald Trumps of the world don’t give a damn about you. They want only to widen the gap between them and you. That is their goal: To push you down and widen the GAP.

But to do it, they need your acquiescence. They need you to vote to cut your own benefits. They need you to believe the middle and the poor are “takers.” They need you to believe that somehow, in some magical way, cutting benefits to yourself and to the poor, will help you.

They need you to believe the BIG LIE that the federal government’s finances are like your finances. They need you to believe the federal government can’t afford to pay for social programs, and will run short of dollars. They need you to believe the BIG LIE that federal spending leads to Weimar-style hyper-inflation, and that “small government” is good for you.

In short, they need to you vote for your own suicide.

Middle-income Republicans: When you need Social Security, Medicare, Medicaide, unemployment compensation or even food stamps, and you discover your social benefits have been cut, cut, cut — who is to blame?

The rich? The politicians? The poor? The immigrants? The blacks, browns, gays and family planners? No. You are to blame. You believe the BIG LIE.

Here is a message to all you gullible folks, who vote to cut federal spending, because you don’t like the poor: What will you say to Nick Hanauer, a genuine rich guy, who unlike Trump, really does “tell you like it is”?

Oh wait, I know what you’ll say, “But Obama will take away my guns.”

That really is the most important consideration, isn’t it?

Suckers.

Rodger Malcolm Mitchell
Monetary Sovereignty

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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 higher, progressive tax rates on all forms of income. (Click here)

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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.

#MONETARY SOVEREIGNTY