Tag: Economics

–Israel, return Arab/Muslim lands!

Mitchell’s laws:
●The more budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity starves the economy to feed the government, and leads to civil disorder.
●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.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
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monetary Sovereignty

Israel, return Arab/Muslim lands!

Eight million Israelis, on a sliver of land, crowd 500 million Arabs/Muslims out of their land.

Disgraceful.

Rodger Malcolm Mitchell
Monetary Sovereignty

Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America


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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. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

#MONETARY SOVEREIGNTY

–Taxing banks to pay for bailouts

An alternative to popular faith

“By MARTIN CRUTSINGER, AP Economics Writer Martin Crutsinger, WASHINGTON – Treasury Secretary Timothy Geithner says the world’s major economies disagree over taxing banks to pay for future bailouts.”

Thank goodness this “one-size-fits-all” idea isn’t flying. The EU nations, which are not monetarily sovereign, use tax money to pay for bail outs. The monetarily sovereign nations — U.S., Canada, Australia, Japan, China, South Korea et al — do not use tax money, but rather pay for bailouts by creating money ad hoc.

A tax, specifically to pay for bailouts, may make sense for the EU, but not for the others. Of course, this all begs the question of whether banks should be bailed out, or whether bank creditors should be saved, while the banks are allowed to fail.

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

No nation can tax itself into prosperity

–Get rid of big government

An alternative to popular faith

Ever since Ronald Reagan said, “In this present crisis, government is not the solution to our problem. Government is the problem,” (then proceeded to run the largest federal deficits in history), the chic thing has been to criticize big government as an affront to our self reliant, can-do, cowboy heritage. The media pundits, both major political parties and the Tea Party repeatedly call for less government.

On March 24, 2009, Bobby Jindal, governor of Louisiana said, “There has never been a challenge that the American people, with as little interference as possible by the federal government, cannot handle.” Oh, really? Today, May 31, 2010, the Chicago Tribune published a wonderful article written by Leonard Pitts, all government haters should read. I’ll quote a few passages:

“. . . Bobby Jindal . . . is singing a new song . . . Now, he’s BEGGING for federal ‘interference.’ He wants federal money, federal supplies, wants the feds to help create a barrier island to protect Louisiana wetlands from oil.
[…]
“One hears pointed questions about President Barack Obama’s engagement or lack thereof in the unfolding crisis. One hears accusations that the government was lax in its oversight duties and too cozy with the oil industry it was supposed to be regulating. One hears nothing about deregulation, about leaving the free market alone to do its magic […] the sudden silence of the apostles of small government and free markets is telling.

“Yes, government is not perfect […] Any bureaucracy serving 309 million people . . . is likely to have flaws. […] But . . . people like Jindal rail against the very concept of government itself, selling the delusional notion that taxation and regulation represent the evisceration of some essential American principle. They wax eloquent about what great things the free market and the free American could do if government would just get off their backs.

“One thinks of one’s meat oozing with salmonella, one’s paint filled with lead, one’s car getting 12 miles to the gallon, one’s self being breezily denied a job for reasons of race, creed, gender or sexual orientation and yes, one’s ocean covered from horizon to horizon with a sheen of oil. And one shudders.

“[…]there are no small government disciples in massive oil spills. No, . . . Bobby Jindal turned righteously to that big, sometimes bloated, often intrusive federal government and asked for help. He said, Send money, send resources. You will notice he never once said, send less.”

Yes, it is so terribly chic, so wonderfully clever to criticize big government, as though each of us were ready to shoulder the responsibilities of the army, Social Security, Medicare, roads, bridges, education, policing and the thousands of other tasks we happily delegate to the bureaucracy.

I have spoken about this on many occasions, for instance YOUR CHILDREN WON’T PAY FOR DEFICITS and EUROPEAN WELFARE STATE and TEA PARTY CONFUSION, but Leonard Pitts said it better.

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

No nation can tax itself into prosperity

–French bread French fried

An alternative to popular faith

Sun May 30, 10:20 am ET, PARIS (Reuters) – “France’s Budget Minister Francois Baroin said on Sunday the objective of keeping the country’s AAA rating was ‘a stretch’ and had an impact on economic policy decisions related to cutting the deficit.

“[…] talks are taking place on pension reform — a key part of the plan to cut the deficit — and France has frozen central government spending barring pensions and interest payments between 2011 and 2013. . . Talks are taking place on — a key part of the plan to cut the deficit — and France has frozen central government spending barring pensions and interest payments between 2011 and 2013. . . France is also considering introducing a constitutional amendment that would set binding budget deficit limits.

“Baroin added: ‘We must maintain our AAA rating, reduce our debt to avoid being too dependent on the markets, and we must do this for the long-term.’

“Fitch Ratings said on Friday the recently stepped-up dialogue in France was an important first step in addressing France’s fiscal deficit. France has forecast its deficit will come in at 8 percent of GDP this year, and aims to bring it down to within the European Union’s 3 percent limit by 2013.”

To summarize:
1. Since economic growth requires money growth, France’s economy will continue to be limited by EU rules, which restrict French money creation.
2. Worse yet, France’s economy will be sent into recession by a constitutional amendment further restricting money creation. This is quite serious. The EU has the ability to change its rules quickly, but constitutional amendments are slow to pass and slow to undo.
3. Thousands of people who depend on pensions, interest payments and other government cash will receive less spending money, a situation that not only will punish them, but will punish then entire French economy, leading to an economic disaster.

And this is the damage the debt hawk mythology can wreak.

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

No nation can tax itself into prosperity