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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 between the rich and the rest..
By the time you read this, Greece may already have decided to quit the euro, or the euro may have decided to quit Greece.
Or Greece may have found a way to extend its slavery to the Troika, and further decimate its citizens, for another few years.
Not all EU nations use the euro. In fact some rather happy and successful nations have been clever enough to avoid the euro’s tentacles: Bulgaria, Croatia, Czech Republic, Denmark, Hungary, Poland, Romania, Sweden, and the United Kingdom.
If so many EU nations already do not use the euro, why all the terror about Greece leaving the euro?
Why These European Countries Don’t Use The Euro
By Shobhit Seth | May 05, 2015
EU nations are diverse in culture, climate, population, and economy. Nations have different financial needs and challenges to address.
The common currency imposes a system of central monetary policy applied uniformly. What’s good for the economy of one eurozone nation may be terrible for another.
Most EU nations that have avoided the eurozone do so to maintain economic independence.
Here are a few reasons why many EU nations don’t use the euro:
Independence in Drafting Monetary Policies: The UK, a non-euro county, may have recovered from the 2007-2008 financial crisis by quickly cutting domestic interest rates in October of 2008. In contrast, the European Central Bank waited until 2015 to start its quantitative easing program.
Independence in Handling Country-Specific Challenges: Greece, for example, has high sensitivity to interest rate changes, as most of its mortgages are on variable interest rate rather than fixed. However, being bound by European Central Bank regulations, Greece does not have independence to manage interest rates.
Independent Lender of Last Resort: A country’s economy is highly sensitive to the Treasury bond yields. Non-euro countries have the advantage here. They have their own independent central banks which are able to act as the lender of last resort for the country’s debt.
Independence in Inflation-Controlling Measures: When inflation rises in an economy, an effective response is to increase interest rates. Non-euro countries can do this.
Independence for Currency Devaluation: Devaluing the nation’s currency makes exports cheaper and more competitive and encourages foreign investments. Non-euro countries can devalue their respective currencies as needed.
Exactly. The euro concept is wonderful, so long as there are no problems.
Eurozone nations first thrived under the euro.
The common currency brought with it the elimination of exchange rate volatility (and associated costs), easy access to a large and monetarily unified European market, and price transparency.
But as soon as each nation began to experience individual problems, different from its neighbors’ problems, the euro concept fell apart.
Why were the great economists of Europe unable to see that? Why did they not understand that Germany is different from France, which is different from Greece . . . etc?
Why did they not foresee that the solutions to one nation’s problems might be inappropriate to the problems of another nation? Surely, this was obvious, from the start.
Why did I, from far across the ocean, see the problems way back in 2005, when in a speech, I said, “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.”
This did not require any great insight on my part. It should have been clear even to the most casual observer. In adopting the euro, a nation surrenders the single, most valuable asset it has: It’s Monetary Sovereignty.
Nothing — not its natural resources, not its military, not its science and education, not even its population — is as valuable to a nation as its Monetary Sovereignty.
Given Monetary Sovereignty, a nation has the power to buy anything, sell anything, control inflations, prevent recessions, reduce poverty and make its citizenry wealthy.
Yet, the euro nations voluntarily surrendered their Monetary Sovereignty in exchange for easy trade. And now the euro, with its “easy trade,” predictably has turned into a mouthful of ashes
Was it stupidity, or was it something else?
As Sherlock Holmes said, “When you have eliminated the impossible, whatever remains, however improbable, must be the truth?”
I submit that it is impossible for so many economists to have been so stupid as not to see the obvious shortcomings of the monetary non-sovereignty the euro requires.
And I submit further that it remains impossible for so many economists to remain stupid, despite those shortcomings being played out, right in front of their eyes.
So if it is not stupidity, what remains is intent.
The leaders of the Troika, together with the leaders of the euro nations, actively want the citizens of Europe brought to their knees.
Who are the leaders? They are the same in every nation. They even are the same here in America.
The leaders are the very rich (the .1%), who want the Gap between the rich and the rest widened.
The Gap is what makes the rich rich, and the wider the Gap, the richer they are.
The rich are the ones who prevent America from using its own Monetary Sovereignty to grow the economy and to benefit the populace.
The rich bribe the politicians, the media and the economists to spread the Big Lie that the U.S. government is too big, can run short of dollars, and should cut its deficits.
By pretending that the finances of our Monetarily Sovereign government are the same as the finances of us monetarily non-sovereign folk, the rich brainwash the populace into accepting the bitter “medicine” of austerity.
To cure an anemic economy, the rich always prescribe economic leeches — reduced deficit spending, reduced Social Security, reduced Medicare, reduced aid to the poor, etc. — to drain us of our financial blood.
Making slaves of the monetarily non-sovereign Greeks, the French, the Spanish — even the Monetarily Sovereign British and Americans — et al is good for the rich. The more slaves the better, and their poverty makes the very rich even richer.
The greatest fear of the rich is that Greece will leave the euro, become prosperous, and demonstrate the utter bankruptcy of the euro. Then other nations will be tempted to follow, and the gravy train ride will end for the very rich.
Whenever you see something economically bad happening, always ask yourself, “Who benefits?” The answer inevitably will be: “The very rich.”
And who is hurt? The answer will be, “The rest of us.”
Rodger Malcolm Mitchell
The Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded free 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 (the “.1%”) more, with higher, progressive tax rates on all their 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
Long term view:
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.