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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.
Try to imagine an advertising/marketing campaign that sold pianists on the notion that suffering in poverty improves their playing.
Can you think of one?
Try to visualize a campaign that convinced hundreds of millions of average people to give their money to very rich people as the way to achieve economic success.
What would such a campaign say?
See if you can create a campaign to persuade poor Americans that they actually are rich, and the U.S. federal government is poor, so it needs more money from them.
And develop a campaign to brainwash Americans into believing that accepting money from the federal government is a sign of sloth, and those who accept such money are nothing but lazy lowlife “takers” and “socialists,” while the very rich are hard workers and “givers,” who deserve their maids, butlers, private jets, endless vacations, generous tax deductions and being first in every line.
What would be your slogan?
Finally, come up with a campaign to convince the populace that money is speech, corporations are U.S. citizens, adding financial stimulus causes joblessness, hyperinflation is a more immediate threat than recession, and private banks and businesses can be depended upon to protect consumers, without being monitored by the government.
Whew! It would take quite a campaign to sell rational people on such nonsense.
But that is exactly the campaign the Tea/Republicans have run. And it has succeeded.
Anytime I suggest the federal government pay for something — education, infrastructure, R&D, health insurance, Social Security, you name it — I receive mail from people whom I’m sure are not part of the upper 1%, calling me a communist and a socialist, and claiming I am asking for a repeat of the Weimar Republic, Zimbabwe and Argentina.
The Tea/Republicans were voted a Congressional majority, by people who are not rich. Their platform: Take from the poor and give to the rich.
Cut Social Security, cut Medicare, cut Medicaid, cut funding for roads, bridges and dams, cut aids to education, cut poverty aids, cut unemployment compensation, cut regulation of banks, brokers, pharmaceutical companies and food companies. Had you told me, ten years ago, that is a great advertising/marketing strategy, I would have told you you’re nuts.
Yet, here we are.
If you had told me I am so rich is should give more of my money to the federal government, while accepting less help from the federal government — if you had told me the rich pay too much tax, while the poor should be burdened with increased sales taxes like gasoline taxes or a flat tax — I would have laughed at you.
Yet here we are.
If you had told me hyperinflation (something we never have had) and deficits (something that adds growth dollars to the economy), are bigger threats than depressions and recessions (something we have had frequently, recently, and still not out of the last one), I surely would have scoffed.
Yet here we are:
Wall Street is on the verge of saying ‘recession’
Business Insider By Myles Udland
After the initial reading on gross domestic product showed the US economy grew just 0.2% in the first quarter, subsequent data has led Wall Street economists to take their outlooks for future Q1 revisions well into negative territory.
Current estimates from Bloomberg show Wall Street thinks the economy contracted by 0.8% to start 2015.
And now with the Atlanta Fed’s GDPNow tracker — which was spot-on in predicting first-quarter GDP — showing a tepid bounce back in the second quarter, the economy appears to be teetering on the edge of a recession.
A recession is defined as two consecutive quarters of negative growth.
If you look at the graphs below, titled “THE RECESSION CLOCK,” you’ll see that cuts in deficit growth always lead to recessions and that U.S. depressions tend to come on the heels of federal surpluses.
Well, here we are, cutting deficits, heading toward a surplus, and on the cusp of another recession. Will it be a worse recession than the last one?
Probably, since seemingly the populace has learned nothing from that experience, instead buying the Tea/Republican’s advertising.
So a hearty congratulations go to the Tea/Republican party for selling the populace on financial suicide as a way to protect our children and grandchildren.
I spent many years of my life in the advertising business, but I never saw an campaign this effective.
These guys could sell ice to Eskimos, or leeches to the anemic.
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.