Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell
●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.
“The Meteorology of Economics” A talk at UMKC, June 5, 2005: “Because of the Euro, no euro nation can control its own money supply. The Euro is the worst economic idea since the recession-era, Smoot-Hawley Tariff. The economies of European nations are doomed by the euro.”
Germany prepared to let Greece leave euro zone
Jan 4 2015, 05:15 ET | By: Yoel Minkoff, SA News Editor
Both Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble believe the euro zone has implemented enough reforms since the height of the regional crisis in 2012 to make a potential Greece exit manageable, said Der Spiegel magazine on Saturday.
According to the report, the German government considers a Greece exit almost unavoidable if the left-wing, anti-austerity party Syriza led by Alexis Tsipras wins an election set for Jan. 25.
Within two years after Greece leaves the euro, and re-adopts the drachma, its economy will grow, while the other euro nations sink deeper and deeper into austerity.
Why the tragedy plays out:
European officials are taking an increasingly hard line toward Athens, saying they want to keep Greece in the single currency, though not at any cost.
To the evident dismay of European officials, and international markets, the narrow front-runner for the Jan. 25 election appears to be Alexis Tsipras, the head of the leftist Syriza party.
Though Mr. Tsipras has made it clear that he would like to keep Greece in the eurozone, he has also vowed to repudiate parts of the nation’s debt, roll back the austerity measures required by Greece’s international creditors, and renegotiate deals with them that have given Greece access to billions in aid.
Following through on such pledges could cost Greece’s creditors, and European taxpayers, tens of billions of dollars.
What cost are (European leaders) willing to bear to keep Greece in the eurozone? Their answer, for now, has amounted to a tough line, particularly from the austerity-minded Germans.
It is mathematically impossible for austerity ever to grow an economy or benefit the poor and middle-income populace. Removing dollars from an economy, by definition, cannot increase GDP, and taxes + reduced spending punish the lower economic groups most.
It’s not so much the German people who like the austerity that has brought them low wages. It’s the German (and other nations’) rich and powerful, who like the austerity that widens the Gap, and gives them a ready supply of cheap, desperate labor.
The euro is the perfect “austerity forever” device for the rich and powerful. That’s why you repeatedly will read:
Wolfgang Schäuble, the German finance minister, (said): “If Greece takes another path, it will be difficult. Any new government will have to stick to the agreements made by its predecessor.”
Officials in Brussels emphasized that membership in the euro bloc was “irrevocable.”
“The euro is here to stay,” said a European Commission spokeswoman, Annika Breidthardt.
Guy Verhofstadt, who leads the Liberal group in the European Parliament, called the idea of a Greek exit from the eurozone “nonsense,” not only because most Greeks do not want to leave the euro, but also because European taxpayers would wind up losing billions of euros that Greece owes them.
President François Hollande said that though the Greeks were “free to choose their own destiny,” there were “certain engagements that have been made and all those must be of course respected.”
Preventing a Greek exit is also still desirable for Germany and other countries, since billions of euros in European taxpayer money could be wiped out if Greece were to leave the euro.
Of course, Greek taxpayers would have to pay those billions, but that’s the point. So long as the rich and powerful of Europe can continue to bleed the taxpayers of Greece, all is happiness in euroland.
And soon (we hope) the Greek people will wake up to the fact that they are enslaved by the euro — enslaved to a never-ending future of paying the rich and powerful, while they themselves sink deeper into poverty.
And soon (we hope) the Greek people will find a leader who takes them into Monetary Sovereignty by re-adopting their own sovereign currency.
Then the Greek will have the unlimited ability to grow their own economy, unencumbered by tribute being paid daily to foreign and domestic, rich and powerful, lenders.
And they will look back at those poor souls remaining in the euro and laugh and laugh and laugh, all the way to the bank.
Ah, what a blessing it will be.
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.