●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.
“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.” (Rodger Malcolm Mitchell, speech at UMKC, June 5, 2005)
Will beat-down Greece become the leader of Europe? The opportunity is there. They have taken the first step.
Syriza Rides Anti-Austerity Wave to Decisive Victory in Greece
By Eleni Chrepa and Marcus Bensasson Jan 25, 2015
Alexis Tsipras’s Syriza brushed aside Prime Minister Antonis Samaras’s party to record a decisive victory in Greece’s elections, after riding a public backlash against years of budget cuts demanded by international creditors.
Even with a razor-thin majority or in a fragile coalition, the result still hands Tsipras, 40, a clear mandate to confront Greece’s program of austerity imposed in return for pledges of 240 billion euros ($269 billion) in aid since May 2010.
The challenge for him now is to strike a balance between keeping his election pledges including a writedown of Greek debt and avoiding what Samaras repeatedly warned was the risk of an accidental exit from the euro.
No, the risk is staying with the euro, which demands a continuing austerity — an austerity that has not worked and cannot work, simply because national deficit cuts never have, and never will, grow an economy.
Very simply, state deficits increase a nation’s money supply, and a growing economy requires a growing supply of money. Austerity “helps” an economy the same way applying leeches “helps” anemia. (This is a lesson America has yet to learn.)
“The Greek people punished New Democracy for governing in the petty manner of the old regime’s political parties,” Aristides Hatzis, an associate professor of law and economics at the University of Athens, said by phone.
“Most Greeks voting Syriza don’t expect a spectacular change but a marginal one. A marginal one would be significant for them.”
In other words, “We economists screwed up big time. Austerity has been a total disaster. But please don’t make any big changes.” That would be embarrassing for us.
“Overwhelmingly the Greek people voted against austerity policies,” the (Syriza)party said. “This result can be the first step for progressive developments throughout Europe.
The government will implement its political program addressing the humanitarian crisis and begin the real negotiation with our European partners.”
This is Greece’s opportunity to rid itself of the bloodsucking euro, a program that stole Greece’s Monetary Sovereignty and made Greece subject to the whims of Germany and the rest of Europe.
If Greece fails, whether by timidity or ignorance, to take advantage of this opportunity, the nation will continue to slide ever deeper into depression.
Then, their European masters will claim, “See? More and more austerity is necessary,” (i.e. more and more suffering is necessary).
The Greek economy has been through hell over the last few years. Unemployment is an atrocious 27%. And roughly 25% of the economy has been destroyed since the peak in late 2007.
That collapse in economic output puts the Greek recession right up there with the worst depressions in recent memory.
At its trough in the first quarter of 2014—which was revised lower in today’s report—the decline in Greek GDP was roughly 33% from the peak.
That’s actually worse than the US peak-to-trough GDP decline of 27% between 1929 and 1933, during the most acute phase of the Great Depression.
A “marginal” change (whatever that means) is not what this disaster needs. A bit less of the austerity poison will not end the suffering.
A monetarily non-sovereign government can survive long term only if it has a positive balance of payments. Like a business or an individual (which are monetarily non-sovereign), more money must come in than goes out.
Net borrowing is not sustainable for an entity that does not have the unlimited power to create its own currency.
Greece must return to Monetary Sovereignty. It must re-adopt its own sovereign currency. Greece must regain control over its money supply.
Let us pray that Greece’s leaders have the knowledge, the honesty and the courage to throw off its leech creditors, give the finger to those who wish to keep it in bondage, and save the nation.
A prediction: Within two years of re-adopting its own sovereign currency, Greece will have a more viable economy than that of any euro nation.
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.