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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.
●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.
●Everything in economics devolves to motive, and the motive is the Gap.
The wealthy mother shows a benevolent face to the public, while secretly starving her children.
She herself is well-fed, but she doles out minimal sustenance to her children, so that all slowly waste away, dying a bit each day. If any one child manages to starve a bit less than the others, that child is required to give part of its meager ration back to mother, who will mete it out to the sickest.
In this way, no child will dies and none ever will achieve health, for even the slightest departure from slow starvation will be punished.
That is the EU.
Britain has been told to pay an extra €2.1bn to the EU budget within weeks on account of its relative prosperity. To compensate for its economy performing better than other EU countries since 1995, the UK will have to make a top-up payment on December 1 representing almost a fifth of the country’s net contribution last year.
The EU itself, that governing body, is Monetarily Sovereign. It is sovereign over the euro. It has the unlimited ability to create euros, never can run short of euros, never can be starved of euros.
By contrast, all euro nations, being monetarily non-sovereign are, as predicted, doing poorly.
The UK, which though a member of the EU, wisely retained its Monetary Sovereignty (though it often acts as though it had not). It survives somewhat better than its euro nation cousins, because it never can run short of pounds.
This infuriates the EU, which being owned by the upper .1% income/wealth/power leaders, wants all nations to starve equally.
(The goal, the only goal, the eternal goal of the rich is to widen the Gap between the rich and the rest.)
A Downing Street source said: “It’s not acceptable to just change the fees for previous years and demand them back at a moment’s notice.”
The source added: “The European Commission was not expecting this money and does not need this money and we will work with other countries similarly affected to do all we can to challenge this.”
The surcharge comes on top of the net UK contribution to the EU budget, which was £8.6bn in 2013.
Don’t be fooled. The British outrage is a charade, and the so-called “Downing Street source” is in on it.
Yes, the whole notion of the UK being punished for being less unsuccessful than the rest of the EU, is so laughable as to make one cry. And the joke continues with the fact that the EU, being Monetarily Sovereign, has no need for financial help, but demands it.
And the real joke is that the UK easily could afford to give the EU €2.1bn or €21bn or €2,100bn, without pain.
So what is going on here?
We begin with the ultra rich, the .01% income group that controls the EU. It is the Gap that makes them rich, and the wider the Gap, the richer the are.
So they concoct a scheme in which they control the money supplies of all member nations, so that in the unlikely event any nation shows even subtle signs of success, that nation eventually will be punished for such audacity.
And of course, it isn’t the nations that are punished; it’s the people, the 99.9%. Nations don’t starve, go homeless or go without proper clothing. People do.
And it serves no purpose for the 99.9% to die. That doesn’t increase the Gap. No, the people must live scant, miserable, cringing lives, so that the rich can look down at them. That is the purpose of the Gap.
When necessary, the EU will dole out just enough hope, to make the people continue crawling, but not enough to allow them to walk.
Spanish and Italian Bond Yields Drop on E.C.B. Buying
By RAPHAEL MINDER
Published: August 9, 2011
MADRID — Spanish and Italian government bond prices rose and their yields fell Tuesday for a third consecutive session after the European Central Bank stepped in to purchase their sovereign debt, part of efforts to prevent the euro zone debt crisis from deepening in two of the largest economies that share the currency.
ECB introduces unlimited bond-buying in boldest attempt yet to end euro crisis
The Guardian, Thursday 6 September 2012
The European Central Bank (ECB) unveiled its boldest attempt yet to stabilise the battered single currency on Thursday when its president, Mario Draghi, announced a new programme of open-ended, unlimited buying of distressed government bonds.
The scheme is aimed at depressing the costs of borrowing for Spain and Italy and countering the risks of a fragmentation of the eurozone and the unravelling of the single currency.
Now, it’s 2014:
ECB Said to Buy Italian Bonds in Second Day of Purchases
By Alastair Marsh Oct 21, 2014
The ECB bought short-dated French notes from Societe Generale SA and BNP Paribas SA as well as Spanish securities from other lenders yesterday.
The ECB entered the 2.6 trillion-euro ($3.3 trillion) covered bond market after President Mario Draghi unveiled plans last month to bolster companies’ and households’ access to financing. Draghi, who also included asset-backed securities in the program, intends to expand the bank’s balance sheet by as much as 1 trillion euros to stave off deflation in the euro area.
“Covered bond purchases are a good means to apply quantitative easing in Europe and to increase the balance sheet of the ECB,” said Richard Schmidt, who helps oversee 220 billion euros of assets, including 55 billion euros of covered bonds, as a senior money manager at MEAG Munich Ergo Asset Management GmbH.
The beat goes on. Each year or so, the EU doles out crumbs of hope to the citizenry, so they will accept their poverty in return for a vague promise of future survival.
And the sad part of all this (aside from the fact that an asset management company, which looks to reap a fortune in trading fees, is all for it): Lending money to people who can’t pay back doesn’t improve their lives. It merely enslaves them.
Think of the loan shark, who keeps urging his victim to borrow more and more, with which to pay back previous loans.
The rich reap; the children suffer; and the cruelty of the rich does not end.
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.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.
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.