Mitchell’s laws:
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which 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.
●The penalty for ignorance is slavery.
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Here are a few excerpts from a truly amazing article, spotted by Dan Lynch:
Spanish retail sales slump 10.7% as austerity hurts consumers
Retail figures in Spain have fallen for 30 successive months, the decline accelerating since latest austerity measures applied
It was one of the most miserable Christmases on record for retailers in Spain as sales plunged last month in the midst of one of the worst consumer crises the recession-hit country has ever seen.
Retail sales in Spain have now fallen for 30 successive months, and the decline has quickened since the prime minister, Mariano Rajoy, implemented further austerity measures to bring the budget into line.
Rajoy’s austerity-bound government increased VAT in September in an attempt to fill its coffers. The Christmas sales fall was a further sign that families have fewer euros to spend. Savings are also down, meaning the downturn is not just the result of frightened families trying to build up their savings.
Spain’s civil service union, CSI-F, claimed the Christmas sales slump could be blamed directly on decisions to suppress an extra monthly payment normally handed to public staff in December.
Is it true that if you increase taxes and cut spending, aka “austerity,” this will cause an economy to tank?? Hmmm . . . does that mean if we in America increase FICA taxes on the poor- and middle-income groups and increase income taxes on the rich, and simultaneously cut federal spending, we might have the same result? Has anyone told Congress and the President?
No need. They already know. It’s part of the “widen-the-gap-between-the-rich-and-the-rest” plan, for which Obama and Congress have been paid by the upper 1% to implement. The EU, owned by the upper 1%, follows the same plan.
Car and house sales are falling, suggesting the recession that prompted the economy to shrink by 1.4% last year will continue. Most analysts predict the economy will contract by a similar rate this year as the government seeks to cut the budget deficit further just as borrowing costs shoot up. Unemployment rose above 26% last month and is predicted to climb higher but the government insists the recession will bottom out this year and growth will return by 2014.
Are we supposed to believe that if the government takes money out of the economy, the economy will contract, unemployment will increase and the population will suffer? Is this something new?
On Monday night, Olli Rehn, the EU’s economic and monetary affairs commissioner, hinted that the austerity programme may have to be relaxed: “If there has been a serious deterioration in the economy, we can propose an extension of a country’s adjustment path … That’s what we did last year in the case of Spain.”
An “extension of a country’s adjustment path” is just EU-speak for more loans to nations that cannot pay their current debts. (They are monetarily non-sovereign) But notice the phrase, “If there has been a serious deterioration in the economy . . . “ IF? IF? Unemployment rose above 26%, and he says, “IF”?. I wonder what he calls “serious.”
Spain is understood to have missed the target of cutting its deficit to 6.3% of GDP in 2012, making it much harder to hit the 2013 goal of 4.5%.
Translation: Spain was unable to rip 6.3% of GDP out of its economy, so it will have trouble ripping another 4.5% out of the economy next year. No matter. It doesn’t hurt the rich. They will do just fine.
One of my “laws,” which appears at the top of every post, is: To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
Spain and the EU continue to indoctrinate European citizens with the delusion that EU nations can break this law. But that’s Spain.
What about the U.S., a Monetarily Sovereign nation, with the unlimited ability to create its sovereign currency, but instead which condemns itself to monetary non-sovereignty by passing silly austerity laws (the debt limit), and engaging in deficit reduction?
Again, no problem. No tag days needed for the upper 1%. No unemployment for them. The gap widens and they laugh at the peons, all the way to the bank.
What shall we the people learn from Spain?
Rodger Malcolm Mitchell
Monetary Sovereignty
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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’s 99%
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
#Monetary Sovereignty - Mitchell 