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●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
●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.
●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.
●Everything in economics devolves to motive, and the motive is the Gap.
Robert Bostick just published in OpEd News, an article that truly has stunned me: Here are a few excerpts:
In late Dec, 2014 House Speaker John Boehner and the troubled Majority Whip and other House leaders met behind closed doors with a delegation from the U.S. Chamber of Commerce and to lay out what should and should not happen during the upcoming 114 th Congress.
While they provided key talking points to the media for CYA purposes, there was a major discussion on budget, monetary and fiscal policy and only a small portion was released for public consumption; no more budget ceiling games by far right proponents of ideologically foolish obstructionism..
“Our No. 1 focus is to make sure, when it comes to the House and Senate, that we have no loser candidates,” said Scott Reed, the top political strategist for the U.S. Chamber of Commerce, told the Wall Street Journal. “That will be our mantra: No fools on our ticket.”
Now that would be refreshing, but bad news for Louis Gomert, John Boehner, Steve Scalise and the rest of the right wing idiot patrol.
And that doesn’t even get into all the FOX news crazies, the Republican governors who refused the Medicaid upgrade that would have pumped billions into their states, and on and on and on. The party is loaded with fools. (See: This Week In Crazy.)
“The Speaker, and the entire leadership team, urged all House Republicans to support the [budget] agreement, which ignores the deficit and eschews raising taxes,” said Boehner’s spokesman, Michael Steel.
This sharp turnaround is notable, first, because it signals to the rest of Washington that Republicans have spent too much time on ideology instead of legislation. Second, they have something else brewing, since they’ve written off whining about deficits and spending.
That ‘something else’ is contained in a brief prepared by the COC informing the House leadership that continuing to harp on the need for spending cuts during a recession will have serious consequences for campaign strategy leading to the 2016 elections.
Remember that despite its government-sounding name, the U.S. Chamber of Congress is, and has been, the mouthpiece for the rich, right wingers. This is the same COC that published on the COC website the following:
“It is the role of the government to responsibly manage our nation’s finances so that: we have the resources to invest in priorities that are essential to our national security and competitiveness; we can provide a sustainable safety net for the sick, elderly, and poor without depleting all of our other financial resources; and we can ensure that future generations aren’t saddled with debt they didn’t incur.
“In order to meet those obligations, the Chamber is calling for government reforms that will address the looming crisis of unsustainable entitlement programs, keep deficit spending low for the long-term, and rein in our growing debt.”
That was then. This is now. Everything has changed. According to the Bostick article:
The COC, warned that there are elements in the public prepared to totally discredit any candidate who continues to deny the need for Federal Public Sector spending when consumer demand is now marginal and which would alleviate deteriorating economic and social conditions for more than one third of Americans.
WHAT??! Suddenly the people who want to “keep deficit spending low” and “rein in our growing debt,” have become aware of the “need for public sector spending?
And these right wingers, formerly concerned about the phony “problem of “future generations saddle with debt, now are more worried about deteriorating economic and social conditions for more than one third of Americans.”
Can you believe it? Why the change? If you wonder why, it’s because those “elements in the public” finally might learn that all these years, the Republicans have been lying, lying lying — the Big Lie.
COC warns that ” .. soon, Republicans will be challenged to explain why they insist on telling America that it can’t afford to spend when it knows that there are no real constraints when inflation is low and unemployment so high …”
Buried in the document was this, “More and more academics on both sides of the political divide have grudgingly, accepted the fact that the Federal Government can no longer operate as it did under the gold standard. Fiat currency is here to stay and because it can be spent without reference to revenues, Congress will be blamed for not appropriating to serve the needs of all Americans.”
OH MY GOD! The Republican Party suddenly has joined the Monetary Sovereignty school of thought.
Their fear is that economic facts will trump religious, right-wing, economic myth, and the people will find out.
It continued, “Ironically, if Congressional leaders publicly acknowledge this fact, the public will question the need for Federal tax revenue.
Any response will need to be truthful but carefully parsed to avoid outcries of misleading the public and indeed distorting the facts on the need for austerity.
Yes, indeed. The public will question the need for Federal tax revenue — as in: There is no need for Federal tax revenue. Ah, what a revelation.
And here is the best part of all. I hope you’re sitting down before you read this. COC said:
“We advise all members to become familiar with the concept of Monetary Sovereignty, so that they can begin to develop appropriate responses for media and constituents.”
As Victor Hugo said: “Nothing is stronger than an idea whose time has come.”
The time for Monetary Sovereignty has come.
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. (Refer to this.)
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.