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●Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●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.
Here is some GREAT NEWS!:
U.S. budget deficit lowest since 2008: Treasury
BY DAVID LAWDER
(Reuters) – The U.S. budget deficit fell by nearly a third to $483 billion in fiscal 2014, the lowest level since 2008, as a quickening economic recovery boosted tax collections and spending grew only modestly, the Treasury Department said.
Here’s a graph of that GREAT NEWS:
The vertical gray bars represent recessions. Question: What happens in advance of recessions?
The deficit was the lowest since a $459 billion budget gap in fiscal 2008, which was followed by four straight years of $1 trillion-plus deficits in the wake of the financial crisis.
Question: What happens during recessions that cures recessions and re-grows the economy?
U.S. Treasury Secretary Jack Lew and White House Budget Director Shaun Donovan hailed the data on Wednesday as a “return to fiscal normalcy.”
Lew told a news conference the United States was now in a period of fiscal sustainability that is providing a strong foundation for growth.
Translation: “Fiscal sustainability” means the federal government now will be able to create enough dollars to pay its bills — as opposed to the fact that being Monetarily Sovereign, the government never can run short of its own sovereign currency, the dollar, to pay its bills. See the difference?
“What I don’t think we have is an emergency right now,” Lew said. “The challenge we have is to sustain the economic engine so that we’re seeing the growth now and over these next 10 years.”
The improving fiscal picture has sapped the urgency for a major budget deal between Congress and the White House aimed at slashing deficits by trillions of dollars over the next decade and starting to reduce the $17.8 trillion federal debt.
Translation: The challenge is to sustain the economic engine by reducing the fuel for the economic engine. Yes, it’s a real challenge.
Lew insisted he has not given up on further deficit reduction, but said budget savings could not come at the expense of economic growth.
Translation: He will continue to cut the baby’s formula, but not at the expense of the baby gaining weight. Understand?
Donovan told Reuters on Tuesday he wanted to further reduce those budget cuts next year and would be willing to consider some savings to mandatory spending programs to reach a deal with Republicans, who control the U.S. House of Representatives.
Translation: We’ll have to cut (gut) Social Security and Medicare benefits to please the Republicans and their (and our) rich donors, who want to widen the Gap between the rich and the rest.
Fiscal 2014 revenues grew 9 percent to $3.02 trillion, boosted by a jump in individual and corporate tax receipts and a 31 percent rise in Federal Reserve earnings, mostly from the central bank’s massive bond portfolio.
Translation: The poor and middle class have suffered tax increases and benefit decreases. As everyone knows, this helps grow the economy.
As for those earnings by the Fed, they come from interest that would have gone into the private sector, i.e the economy.
Outlays grew just 1 percent to $3.50 trillion.
Translation: The amount of money we pumped into the economy grew only 1%.
Receipts last month grew 17 percent to $352 billion while outlays were up 9 percent to $246 billion.
Translation: We took more money out of the economy than we put in. That’s how we grow the economy. It’s complicated, so trust me.
“A nearly $500 billion deficit is nothing to celebrate,” said a spokesman for House Budget Committee Chairman Paul Ryan, a Republican who has been touted as a possible 2016 presidential candidate. “And CBO still projects that, in the coming years, the deficit will rise even higher to unsustainable heights.”
As regular readers of this blog know, you are being treated to a government con job, courtesy of the rich. They want deficits to be reduced, then reduced more, then reduced again, because reducing deficits widens the income/wealth/power gap between the rich and the rest.
The politicians are owned by the rich, and will say and do exactly as the rich tell them to say and do.
They count on us not understanding the difference between federal financing and personal financing. They want us to believe that in some unknown way, the U.S. federal government — the creator of U.S. dollars — can run short of U.S. dollars.
Yes, it’s GREAT NEWS — if you’re among the wealthiest .1% of Americans.
If you enjoyed the last recession, you positively will love the next one.
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 and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
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.