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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.
One of our readers — tetrahedron720 — wrote:
“The 1% fear loss of control and power over the minions. In the final analysis it may take continued austerity to elevate our problems to such a degree that we induce failure and collapse. Then, faced with no other choice, society will be forced to have to find functional finance as the only solution. Emerge by means of emergency.
The solution MAY be the elevation of the problem.
My response was:
“Look around you at all the bad economies, from North Korea, to Gaza to Haiti to many of the African nations. There, the economies are in shambles, but the rich lead luxurious lives and maintain power, while the rest lead lives of misery.
“It can take generations or even centuries, for the poor to acquire enough willpower to rise up against the rich. Meanwhile the poor suffer. Much better to narrow the Gap via the ’10 Steps to Prosperity.’
“I do not subscribe to the philosophy, ‘Things have to get worse before they get better.’”
And here is a bit of evidence to back that up:
Big Banks Fined Mega-Billions; CEOs Remain Untouched, Above the Law
By Michael Payne
Get arrested for robbing a bank or shoplifting and you will go to prison. Get caught selling cocaine or steal a car and you will do jail time. But if you are a CEO of one of the biggest banks in America and that bank is fined mega-billions for fraudulent practices you need not worry because the U.S. Justice Department will give you a free pass; you are, in effect, above the law.
That is a clear travesty of justice, but it has become commonplace in America. Just look at the following list of U.S. and some foreign banks that have been fined billions of dollars. Not one of their top executives has been prosecuted in connection with the violations of the law that led to these fines:
$25 billion – Wells Fargo, J.P. Morgan Chase, Citigroup, Bank of America, BAC, and Ally Financial – 2012
$13 billion – J.P. Morgan Chase & Co. — 2013:
$9.3 billion – Bank of America, Wells Fargo, J.P. Morgan and 10 others — 2013:
$8.5 billion – Bank of America — June 2011:
$2.6 billion – Credit Suisse AG — May 2014:
$1.9 billion – HSBC Holdings, HSBA – 2012
$1.5 billion — UBS, AGUBSN – 2012
$1.4 billion – 10 Wall Street firms including Goldman Sachs, Morgan Stanley, and J.P. Morgan — 2003
The above criminal enterprises were only too happy to pay fines. To them, these are akin to jaywalking tickets — paid by their employers.
The leaders of these criminal enterprises paid nothing — not money, not jail — nothing. In fact, most of them received bonuses from their companies and from the Obama administration.
That is how crime is discouraged: By rewarding it.
And how big an issue is this for you, the voting public? How many of you are so outraged, you have marched the streets, to protest? How many of your have bothered to write the President or your Congressperson, to express your anger?
How many of you even care that wealthy criminals have been, and continue, raping you and your children, while going unpunished?
Now compare that with how angry you feel about foreign children coming across our border. And how you are incensed that you might not be able to carry a big, loaded gun in public. And you are so-o-o-o-o enraged that the poor receive food stamps. And you are foaming at the mouth that gay people are allowed to marry.
Yes, those are the things you care about and vote about. Those are the things that take bread out of your mouth, and impoverish your children. Right? Oh, sure.
Those are the things you’ll go into the street and protest-march against. But, rampant criminality by the rich? You don’t even notice, much less care.
Like magicians, the rich have misdirected you with phony issues — guns, immigrants, foodstamps, so that you don’t even see their slight-of-hand (in your pocket).
You don’t even see the Gap between the rich and you growing wider and wider, and if you see, you don’t really care enough to protest that.
No, you care that the unemployed might get too much compensation. That’s your big issue, because that is what the rich have told you to care about.
So you go stand in the road holding stupid signs, to stop a bus filled with child immigrants. You go demand to carry your military grade weapons into every store on main street. You’re so angry, you want to shoot an abortion doctor and intimidate a girl who visits one. You demand that the poor be made to starve, because it’s “their own fault.”
But you don’t demand that Congress and the President enforce the law. You don’t demand that rich criminals go to jail. No marches for you. You’ll vote as you’re told.
After all, the rich are entitled to do whatever they want, including bribe Congress and the President..
Your Congressperson doesn’t care about rich criminality. Why should he? You never contacted him. You never marched.
For the same reasons, Obama doesn’t care, either.
Why should you?
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. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (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 growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.