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•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•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.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..
Greece should have stayed out of the eurozone. It should have remained Monetarily Sovereign, keeping full control over its own currency.
Instead, it voluntarily surrendered the single most valuable asset it had — that Monetary Sovereignty — and allowed itself to be sucked into the maw of the euro.
So the lives of the Greek people were left to the tender mercies of the International Monetary Fund, the European Commission and the European Central Bank, aka the “troika,” who represent only the rich, the bankers and the Germans.
Remember: Any monetarily NON-sovereign government — be it city, county, state or nation — that cannot run an ongoing trade surplus, eventually will run out of money.
Since many euro nations cannot run trade surpluses, they are in line to run out of euros.
And so, Greece pays the easily foreseen penalty. It has run out of money.
All this for the Big Lie — the mythical stability of a unified currency. Here now, is where that Lie, that “stability,” has led:
European Leaders Reach Agreement to Resolve Greek Debt Crisis
By JAMES KANTER and ANDREW HIGGINS
Greece and its European creditors announced an agreement here on Monday that aims to resolve the country’s debt crisis and keep it in the eurozone, but that will require further budgetary belt-tightening.
Translation: Rather than the crisis being resolved, it only has just begun. That belt tightening will involve the further pillage of Greece by the troika.
The tough terms, demanded by Germany and others, are meant to balance Greece’s demands for a loan repayment system that will not keep it mired in recession and austerity budgets, against creditors’ insistence that loans worth tens of billions of euros not be money wasted.
Translation: There is no “balance.” The terms WILL keep Greece mired in recession and austerity budgets until there is no more Greece.
An accord would end five months of bitter negotiations that raised concerns that Greece would be the first country to be forced out of the euro currency union — a development that proponents of European unity had sought desperately to avoid.
Translation: The troika, representing the rich, the bankers and Germany, do not want to lose the goose that lays golden eggs until it has drained Greece and the Greek people of everything they have.
Only when the Greek people are completely destitute, and have nothing left to give or sell, will they be released from the troika’s tentacles.
As part of Greece’s commitments, Chancellor Angela Merkel of Germany said, a fund will be created to use the proceeds from selling off assets owned by the Greek government to help pay down the country’s debt. That fund would be “to the tune of” €50 billion.
Translation: All of Greece’s assets will be sold to rich buyers at bargain basement prices. (A crooked politician in Illinois, Paul Powell, who repeatedly demanded bribes, famously said, “I smell the meat a’cooking.” The troika smells the Greek meat a’cooking.)
After all the Greek “meat” is gone, the Greek people will be completely enslaved.
The agreement will call for Greece to raise taxes, pare pension benefits and take various other measures meant to reduce what critics see as too much bureaucracy and too many market protections that keep the Greek economy from operating efficiently.
Translation: The agreement will be for the Greek people to pay more taxes to the troika, receive lower pensions and be fired from their government jobs.
“We gave a tough battle for six months and fought until the end in order to achieve the best we could, a deal that would allow Greece to stand on its feet,” Primes Minister Alexis Tsipras said.
Translation: Rather than standing on their feet, the Greek people will be forced to their knees.
Summary: A financial merger without a political merger is a recipe for disaster — except for the rich and the bankers, whose loans to an unqualified borrower should have been punished, but instead are being rewarded.
(It’s always the same with the bankers. Remember how this exact scenario played out in the United States. Banks made loans to unqualified borrowers. When impoverished borrowers were forced out of their homes into destitution, the banks confiscated those homes. Then the rich and the bankers were rewarded by the Obama administration with huge bonuses.)
Germany, which failed to take Europe by force of arms, now will take Europe by force of finance.
Greece is gone. Its people will be raped, and like many rape victims, they will be blamed by the rapists.
Who’s next? France? Portugal? Line up, folks.
The Germans, the rich and the bankers smell the meat a’cooking.
Rodger Malcolm Mitchell
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. 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
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)
The Ten Steps 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.