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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.
I am in the upper 1% income/wealth/power group. I plan to vote Republican. I believe I should receive more, while you and the poor should receive less.
If you are not in the upper 1% income/wealth/power group, and you still plan to vote Republican, thank you for all you’re doing for me.
House Republicans Just Let The Cat Out Of The Bag
Since taking control of the House in 2010, Republicans have crafted dozens of bills ostensibly devoted to “streamlining and simplifying” the federal government. They’ve (promised)to cut red tape and create jobs. But on Tuesday, they let the cat out of the bag. These bills are essentially efforts to undermine Wall Street reform and Obamacare while greenlighting pollution.
Amit Narang, regulatory policy advocate for the nonprofit group Public Citizen, (said), “If these measures were to become law, the public could expect… inaction on climate change and another Wall Street meltdown.”
The GOP makes clear what they’re really upset about: Obamacare, the 2010 Dodd-Frank financial reform law and Environmental Protection Agency rules on carbon emissions from burning coal.
No other legislation or regulatory initiative is mentioned.
I don’t want the federal government to help poor people with their health insurance, and I don’t want regulation of Wall Street and I think climate change is a hoax.
Well obviously, poor people are lazy criminals with too many children, Wall Street is honest and deserves to have more than you do, and the world’s scientists are participating in the scam.
House Republicans Propose Budget With Deep Cuts
. . . their budget plan slashes spending by $5.5 trillion over 10 years
Without relying on tax increases, budget writers were forced into contortions to bring the budget into balance while placating defense hawks clamoring for increased military spending.
They added nearly $40 billion in “emergency” war funding to the defense budget for next year, raising military spending without technically breaking strict caps imposed by the 2011 Budget Control Act.
The plan contains more than $1 trillion in savings from unspecified cuts to programs like food stamps and welfare.
The budget demands the full repeal of the Affordable Care Act, including the tax increases that finance the health care law.
But the plan assumes the same level of federal revenue over the next 10 years that the Congressional Budget Office foresees with those tax increases in place — essentially counting $1 trillion of taxes that the same budget swears to forgo.
The Republican plan has no tax increases, because we rich don’t like tax increases. We are the “makers,” flying to foreign banks to hide our incomes from taxes, while you are a “taker,” who pays your taxes, including FICA, because you don’t have my high-powered attorneys to keep you out of jail.
Being rich, I own businesses that pay for my restaurant meals (Do you pay for your own restaurant meals?), pay for my 1st class travel (Do you pay for your own low-class travel?), pay for my homes and servants in exotic locales (Do you have free homes and servants in exotic locales?), I receive the very best, free health care insurance and the very best doctor care (Do you receive the best, free health care insurance and doctors?) and my kids attend the best universities (Do you owe the government a fortune for your kids’ educations or are you too broke to send them to college?)
Obviously, being rich, I deserve these things and you don’t, because we rich people work so hard, and you don’t.
And obviously, you will vote to make these wonderful things happen for me. It only makes sense.
Spending on Medicaid may fall $913 billion over a decade once the health program is turned to block grants to the states, but House Republicans preferred to say, “Our budget realigns the relationship the federal government has with states and local communities by respecting and restoring the principle of federalism.”
Translation: “We rich will toss the whole problem into the laps of the states, and give the states far too little money to solve the problem.
“After all, your state, despite being monetarily non-sovereign, somehow is rich and the federal government somehow became poor. (Yes, I know it makes no sense, but it’s what you believe, isn’t it?)”
The plan would cut billions of dollars from the Supplemental Nutrition Assistance Program, better known as food stamps, but that was not exactly how the budget phrased the reductions.
“This budget converts SNAP to a State Flexibility Fund so state governments have the power to administer the program in ways that best fit the needs of their communities with greater incentives to achieve better results.”
Think of it this way. You tell your wife, “I want to cut my budget, so from now on, you pay for rent, clothing and food.”
Domestic programs would be cut $519 billion below the already restrictive caps set in 2011. White House officials estimated that between the Affordable Care Act repeal and the cuts to Medicaid, 37 million people would lose health insurance, more than doubling the ranks of the uninsured.
Translation: “Federal spending is socialism, which we rich people hate. (O.K., I know it’s not socialism. Socialism is government ownership and control, not government spending. But you didn’t know that and you won’t even remember I told you.)
“The poor should get jobs and work for their health insurance instead of expecting help from the government. And if they and their kids get sick and die too young, it’s their own fault.
“Don’t expect me to help you.
What? You say federal spending doesn’t cost me one cent?
“You mean that even if federal taxes were $0, the federal government could continue spending, forever?
Well, what about inflation?
What? Inflation is low and the Fed controls it by interest rate control?
Well, that’s really bad news, because the one thing I want more than anything, is to be far, far above you. I want that Gap to grow wider every year, just as it has been.
I mean, if you’re going to vote for the federal government to give money to you and to the poor, how will I be able to look down on you from far, far above? It’s what I really want.
Ah, but I’m not worried. As long as I can keep you ignorant of Monetary Sovereignty, and believing our federal government can run short of its own sovereign currency, and that hyperinflation will be the result of federal spending, you’ll keep voting to give me more and to give you less.
So, from the bottom of my heart, I thank you.
And, please don’t pay attention to anyone who says the Republicans created the Budget of Shame. Are you going to believe facts . . . or what I tell you?
Rodger Malcolm Mitchell
The 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. Federally funded, 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)
Initiating The Ten Steps sequentially 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.
10 thoughts on “–Thank you for not calling it the “Budget of Shame,” and thank you for all you do for me.”
GDP = federal spending + non-federal spending + net exports.
1. Cut $5.5t over 10 years from the first coefficient on the right side of the equation.
2. Simply add $5.5t to either the middle or right coefficient on the right side of the equation.
3. Voila! (Problem solved.)
4. Oops. CAB in deficit and will remain in deficit in perpetuity. (No problem, of course.)
5. Ok, maybe private sector deficit spending to offset the federal cuts (just to maintain GDP)?
Will the private sector be able to spend $550B more per year (on average) with today’s already stratospheric private debt levels?
The problem is #2, of course, since it is next to impossible for the non-federal sector to grow spending, when the money supply isn’t growing. (Federal spending creates dollars.)
The question remains: Exactly how does the economy accomplish #2?
Every time I see the definition of GDP I ask myself – how does a number (GDP) help me survive. If the purpose of this equation is to measure current performance with past performance – it is definitely not designed for it.
Aside from the fact that GDP is just a number, the equation is not of much use. All the variables that form part of the equation (federal spending, non-federal spending and net exports) are continuously changing.
What I am trying to say is that an increase in GDP may or may not mean real economic growth – while a decrease may or may not mean economic decline.
For this equation to work – it must have a unique unit of measure – otherwise.
Believe it at your own risk – I sure don’t believe it at all. This equation is probably the most misleading one in history.
Wow, the most misleading equation in history? It’s always good to hear from you, who demands accuracy.
Hypocrisy aside, what is your formula for measuring economic growth?
Feel free to write excuses here: _____________________________
My formula is:
MF = DCBTG + DCBTPS + NE
DCBTG = digits created by the government
DCBTPS = digits created by the private sector
NE = net exports valued in the digits created by the government and the private sector.
When I make it my goal to grow MF, I simply increase DCBTG. The more DCBTG we have….well.. the more DCBTG we have.
When I see this GDP equation, I can’t help myself but think of a pizza. You can slice it 8, or 16, 24, 32 or maybe even 40. If you divide the pizza into 48, how many pizzas do you have Rodger?
MF?? Digits?? Pizzas??
Anyway, not knowing the above, I’m pleased to learn that, “The more DCBTG we have….well.. the more DCBTG we have.”
Quite profound and a great improvement over GDP. Thanks.
“Today we begin the monumental task of confronting our nation’s chronic overspending and exploding debt. Make no mistake, our fiscal outlook is grim and has been ignored too long. But we have a profound moral responsibility to help hard-working taxpayers see the true picture of our country’s finances.”
– Senator Michael B. Enzi (Republican, Wyoming), chairman of the Senate Budget Committee.
Or a liar?
The man is the Chairman of the Senate Budget Committee and neither he nor any of his advisers understands Monetary Sovereignty?? Not possible.
So, I vote for “liar.”
This Week In Crazy
Late Night Roundup: Fox News, Ferguson, And Benghazi
San Francisco Catholic Church Installs Watering System To Ward Off Homeless
The unpopular, non-linear principle of Similitude destroys the linear concept of the federal budget being the same as a non MS local budget. An example of Similitude is dropping a human being out of an airplane (without a parachute) vs. dropping out a worm or grasshopper. The latter won’t be killed. Another example: you can float a needle on water, but not a nail with the exact same 18:1 length to thickness ratio. In the first example you have air resistance and in the second case surface tension acting as protection.
Unlike mom and pop’s LOCAL budget, you can grow the COMPREHENSIVE federal budget out of thin air (digits) to whatever extent needed and the economy won’t break (go broke) into pieces. Like the hidden factors of surface tension or air resistance, the legal availability of multi trillions of invisible electrons provide an income safety net for all those misinformed consumers on the other side of the fence who think local and comprehensive mean the same thing. The principle of similitude says otherwise.