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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.
Please remind me again: Why do they want the Keystone oil pipeline?
The US Congress on Monday edged closer to approving the Keystone XL oil pipeline. The legislation easily passed the House last week. It cleared its first major hurdle in the Republican-controlled Senate.
Monday’s vote officially kicked off debate on the long-delayed project, which if constructed by builder TransCanada would transport crude from Alberta’s oil sands south to refineries on the US Gulf Coast.
Republicans, who see Keystone as a top economic priority, argue that the project would create 42,000 construction jobs.
But Democratic opponents like Senator Barbara Boxer insist those are merely temporary jobs, and that just 35 permanent jobs would be created for the 1,179-mile pipeline, according to the State Department.
Republicans say moving oil by pipeline releases far fewer emissions than transporting it by rail or road.
Apparently, hiring 42,000 (!) people to build a pipeline (that would be maintained by 35 people) indicates we have a shortage of oil. So we have to make importing oil from Canada, easier.
OPEC nations can withstand a drop in crude prices to the lowest in more than five years, while shale drillers will probably be the first to curb production amid the collapse, the United Arab Emirates’ energy minister said.
The Organization of Petroleum Exporting Countries is battling a U.S. shale boom by resisting production cuts and signaling its readiness to let prices fall to a level that slows American output.
The U.A.E., OPEC’s fifth-largest member, pumped 2.7 million barrels a day last month and has a capacity of 3 million, according to data compiled by Bloomberg. The Persian Gulf nation will stick with its plan to boost capacity to 3.5 million barrels a day in 2017, in spite of the global glut.
Suhail Al Mazrouei, the U.A.E. minister, told reporters today in Abu Dhabi. “If the price is right for them to produce, then fine, let them produce. If the price is not right, then they will reduce.“
So let’s get this straight. U.S, oil independence relies on shale oil, which is more expensive to produce than well oil. OPEC is ramping up well oil production in order to force U.S. shale oil producers to cut back.
From the Saudi perspective, the primary benefit of high oil prices has accrued to non-OPEC members. A cut in Saudi or OPEC production to support prices would only further benefit these oil producers.
Low oil prices can be seen through a Saudi prism as reprisals against the U.S.
It is designed to undermine American attempts at greater energy self-sufficiency through aggressive exploitation of its shale gas and liquid resources.
It is revenge for America’s strategic rebalancing away from the region to a greater Asian focus.
In the short run, producers may continue to produce and sell at below breakeven prices. If oil prices stay low for a sustained period, then producers will cut production, with marginal- or higher-cost firms forced to close or declare bankruptcy.
In summary, the Keystone pipeline is unnecessary, with oil prices already low (and falling) and oil stocks already high (and rising).
It is environmentally harmful and will reduce U.S. oil independence, exactly what our enemies in OPEC want. It will create just 35 jobs, and help put some U.S. oil drillers into bankruptcy. Increasing the supply of oil constitutes revenge against America.
The Republicans, (especially), want anything the rich pay them to want, and despite compulsive flag waving, are not concerned about U.S. oil independence, and are no strangers to revenge against America (remember those government shutdowns).
(As of Novemeber, 2014) a 56 percent majority of Americans support building the pipeline to transport oil from Canada through the United States to oil refineries in Texas. Eighty-three percent of Republicans, 53 percent of independents and 40 percent of Democrats are in favor of it.
Proponents of the project feel more strongly than opponents: 31 percent support the pipeline strongly, while just 12 percent strongly oppose it.
This, the re-election of Bush/Cheney, and the recent Republican victories in Congress, tell you all you need to know about the American voting public.
But, please remind me again: Why do they want the Keystone oil pipeline?
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.