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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.
●The single most important problem in economics is the gap between rich and poor.
●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.
As readers of this blog know, the primary goal of the upper 1% income / wealth / power group is to widen the Gap between them and the rest of us.
So the 1% bribes the politicians (via campaign contributions and promises of lucrative employment later), to cut spending that benefits the 99% and to increase taxes on the 99%.
They do this in the name of “fiscal responsibility.” That is the Big Lie in economics.
The media go along with it, because they are owned by the rich. The economists go along with it, because they are employed by the rich.
So, with the election season having already begun, you will see more and more brainwashing articles. Here is one from Investors.com, published by Investors Daily (Guess who their readers are):
Social Security Benefits Will Be Cut In 2017
BY JED GRAHAM, INVESTOR’S BUSINESS DAILY, 05/14/2015
No matter who wins the White House in 2016, there’s no getting around it: Social Security benefits will be cut starting in 2017.
A 1983 pact between President Reagan and the Democrat-led Congress to stave off an imminent Social Security financing crisis included a hike in the official retirement age from 65 to 67 somewhere in the far-off future.
Translation: Because there is a financing “crisis,” a benefit cut is inevitable, so don’t fight it. Just go along with it.
The retirement age rose to 66 in two-month increments between 2000 and 2005. Between 2017 and 2022, the retirement age will rise to 67.
In practical terms, workers claiming benefits at age 62 in 2022 and beyond will face a 30% reduction in the annual benefit that they receive throughout their lives. When the retirement age was 65, those claiming benefits at 62 suffered a 20% cut.
Translation: It’s a long way off, and anyway, it already has been happening, so it’s all just normal stuff. Just sit back and don’t worry about it. We’ll take care of everything.
Yet despite the coming rise in the retirement age, Social Security’s cash deficit is set to explode to $361 billion in 2025 from $74 billion in 2014, the Congressional Budget Office estimates.
The CBO’s estimates point to the $2.8 trillion trust fund being depleted late in 2029, after which program revenues will cover only about 75% of scheduled benefits.
Translation: Yes, we’re stealing money from you and your family, but we aren’t stealing enough.
See, we invented the mythical Social Security “trust fund,” which supposedly pays benefits, but it’s not a real “trust fund.” It’s an accounting fiction.
We could fill that “trust fund” any time we wished, but if we did, we couldn’t cut your benefits, which is our goal.
Something has to be done to put the program on a firmer footing, and potential Republican candidates have begun stepping forward with their ideas.
Chris Christie and Jeb Bush have both put themselves squarely behind a further increase in the retirement age. Christie specifically advocated a hike to age 69, closing a bit more than one-third of the financing shortfall.
Translation: Now that we have you softened up for widening the Gap, we really are going to sock it to you. You won’t get normal benefits unless you work 4 more years, and even then, only 1/3 of the so-called “shortfall” will be covered.
This gives us plenty of room to keep cutting you down. Hey, as long as you’re sucker enough to believe what we’re telling you, we’ll just keep cutting you.
And now we come to the ever-reliable (for cutting benefits to the 99%) Committee for a Responsible Federal Budget (CRFB).
You might recognize a couple of names on its board: Erskine Bowles and Alan Simpson. They are the authors of the notorious “debt reduction plan” (aka the “sequester”) that dramatically slowed our recovery.
Also on the board is the even more notorious Pete Peterson, the multi-billionaire founder of the Concord Coalition, and contributor to many anti-99% causes.
Here is what the CRFB says:
Yes, it’s another fake federal “trust fund” that isn’t a trust fund, but rather an accounting placeholder. It has no real trust fund functions. Unlike the way a real trust fund works, the federal government can increase or decrease this “trust fund” at will.
With the deadline for extending the surface transportation authorization just a few weeks away and Highway Trust Fund (HTF) bankruptcy approaching this summer, CRFB has released the The Road to Sustainable Highway Spending, a detailed plan to fix the HTF’s finances and bring greater rationality to the process of determining highway spending and revenue.
Translation: We begin our article with two lies:
1. O.K., the “trust fund” can’t go “bankrupt.” Bankruptcy is a legal term describing a legal process. What we really mean is that Congress will not pay for roads, and it’s using the mythical “trust fund” as an excuse.
(Visualize someone with a full refrigerator telling you they are starving because they won’t open the refrigerator door.)
2. And, O.K., our use of the word “sustainable,” never is explained, because there is no explanation. As a Monetarily Sovereign government, the U.S. never can run short of dollars.
In fact, it creates dollars merely by the process of paying bills. So everything is “sustainable” for the U.S. government.
But we don’t want you to know that.
While at least a short-term general revenue transfer is likely needed, it would be irresponsible to enact a transfer without equal-sized spending cuts or revenue increases to offset the cost.
Translation: The federal government easily could “transfer” dollars to the mythical fund (aka arbitrarily increase the balance shown), but that wouldn’t cut deficit spending. So what’s the point if it doesn’t widen the Gap?
Our plan consists of four main parts: a $25 billion general revenue transfer to pay for “legacy costs,” or projects authorized prior to this year that are being paid out of current funding; $100 billion from raising the gas tax by 9 cents per gallon starting in 2016; $50 billion from freezing highway spending for two years, then limiting it to the previous year’s revenue plus interest collections; and creating a “fast lane” for tax reform that allows lawmakers to identify alternative revenue sources to replace an equivalent amount of the other changes.
Translation: See that “raising the gas tax” buried in there? Guess who will pay that tax. You suckers of the 99%.
And see that “freezing highway spending” buried in there? That’s the way we solve the highway funding problem. Just don’t fix ’em. Clever, huh?
And see that “tax reform” and “alternative revenue sources” in there? By now you should have learned that anytime we say “reform,” or “alternative revenue sources” we mean “charge the 99% more.”
For the next 1 1/2 years expect to read and hear more and more about how the poor, impoverished federal government needs more and more dollars from us flush-with-cash 99%ers.
You may begin to arouse from the concussion caused by the Big Lie, and complain that while your personal income is stretched and limited, the federal government has the unlimited ability to create dollars.
But, this is what you’ll be told: “We can’t afford it because inflation, inflation, inflation, Wiemar, Wiemar, Wiemar.” That part of the Big Lie has worked for 75 years, so why stop now?
Watch as your budget brainwashing goes into overdrive.
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.