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.
Answer: This Congressional joyful, bipartisan smooching.
When the crocodiles smile, you, the public, are being eaten.
An ambitious agreement by Speaker John Boehner and Minority Leader Nancy Pelosi to fix a major funding gap in Medicare and make some separate long-term cuts appears in good shape to pass the House.
REDUCING COVERAGE FOR NO REASON. SEE HOW HAPPY THEY ARE.
“It is all shaping up very well on both sides,” said Kevin Smith, a spokesman for Boehner.
At a cost of roughly $210 billion, the bill replaces the “sustainable growth rate” formula to instead give doctors gradual raises while extending the Children’s Health Insurance Program for two years starting in October.
It includes $70 billion in offsets by making two structural changes to cut Medicare spending: force high-income seniors to kick in more for their care and reduce spending on supplemental Medigap plans, specifically “first dollar” coverage.
These “offsets” are based on three lies:
1. FICA funds Medicare benefits (It doesn’t.)
2. The federal government is too broke to pay for Medicare. (It isn’t.)
3. By contrast, you have too much money so you can afford to pay more. (You don’t.)
Our readers, who understand Monetary Sovereignty, know that FICA does not fund Medicare.
Just to be clear: FEDERAL TAXES DO NOT FUND FEDERAL SPENDING. Period.
Even if all federal taxes fell to $0, the government could continue to pay all its bills — including Medicare for every man, woman and child in America — forever.
So why does the government charge you FICA, and why will the government cut Medicare benefits further? Because FICA is the most regressive tax in America, punishing the middle- and lower-income groups far more than the rich. This helps widen the Gap between the rich and the rest, the single most important goal of the rich.
Why do both parties wish to help the rich increase the Gap? Because both parties are bribed via campaign contributions, plus promises of lucrative employment, later. (Thank you, right-wing Supreme Court.)
The rest of the legislation is not paid for, which could be a deal-breaker for hardline conservatives in the House and Senate.
Translation: Hard line conservatives are not satisfied with just draining your blood. They want to cut out your flesh and bones, too.
Progressives don’t love the Medicare cuts but many Democrats are willing to accept them because they don’t touch core benefits for middle-class Americans.
Translation: We Democrats pretend to be your friends, but all we want is your vote. We plan to go along with the Republicans every year, to slice bits off Medicare, because as they told you, “Medicare is broke.” The Republicans give us cover. Aren’t we clever?
So long as you’re stupid enough to vote for us, we’ll just keep slicing those benefits — increase the age, reduce the payments — soon we’ll tax benefits, like we do with Social Security.
The rich won’t care. Medical costs are a minuscule part of their income, but a big part of yours.
Senate Republicans are eager to get rid of the “doc fix” problem, and the long-term Medicare cuts in the House package are an enticement for them.
Translation: The doctors have a powerful lobby, and they contribute lots of money to us. What’s your lobby? How much do you contribute?
Republicans have been aching to cut your Medicare benefits, so this gives us Democrats an excuse to give them what the rich want.
Sen. Richard Burr (R-NC) said, “I’ve been working on entitlement reform since I got here 21 years ago. This is the first real hope at getting entitlement reform and in the process taking care of the SGR which we’ve always known was a mythical cut.”
Translation: In conservative-speak, the word “reform” always means: “Screw the poor and the middle class.”
Thus entitlement “reform” means cut Social Security benefits, cut Medicare benefits, cut Medicaid benefits, cut unemployment compensation, cut food stamps, and cut all other poverty aids.
Similarly, tax “reform” means charging the poor and the middle more, via regressive programs like a flat tax, increases in FICA and sales taxes, and the sneakiest one of all: Making the monetarily non-sovereign states and cities pay for things the federal government should fund (Example: Education.)
Any time you hear a politician use the word “reform,” grab your wallet and scream, “Liar, liar, pants on fire.”
Predition: Shortly after (like, the next day after) 2016 elections, the politicians will, at the urging of their rich benefactors, “discover” that once again, Social Security, Medicare, Medicaid, all poverty aids and taxes need to be “reformed.”
Once again you will be treated to the Big Lie that the federal government is “broke,” while you are rich, and that federal spending is limited by federal tax collections.
And because you will believe it (and probably become angry at anyone who disagrees), your taxes will rise, your benefits will fall, and the income/wealth/power Gap between you and the rich will grow.
You’re being raped. I hope you enjoy it.
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.