Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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 ultimately 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.
●Everything in economics devolves to motive.
======================================================================================================================================================================================

Here is what immigration will look like if the right wing has control.

House GOP wants legal status but no citizenship for illegal immigrants
Calls granting them full citizenship unfair and contrary to the rule of law
By Stephen Dinan-The Washington Times

House Republican leaders have ruled out a special pathway to citizenship but do support granting some form of legal status and work permits to most illegal immigrants, according to the broad set of principles GOP leaders released Thursday.

House Speaker John A. Boehner, Ohio Republican, told reporters that his party’s leaders thought they had to make a good-faith offer.

Here are some of the details of Boehner’s “good faith” offer:

Secure the borders and verify that they are secure, including zero tolerance for those crossing the border illegally or overstaying their visas.

First, let’s not mealy-mouth. It’s not “borders,” it’s border, i.e. the Mexican border. You can imagine why.

Second, no one knows how to judge when borders are “secure.” Does that mean zero undocumented immigrants for the next 50 years? If not, what exactly does “secure border” mean?

And what form does “zero tolerance” take? Deportation of all 11 million undocumented immigrants. Or hang or shoot them? And what of their children?

Fully implement an entry-exist tracking system using biometric identification technology

Exactly what “biometric” technology are they talking about. Fingerprints? Iris recognition? Face recognition? Or how about that good, old standby: “Looking Mexican.” That seems to work pretty well in Arizona.

And what is meant by “tracking.” Will the police follow people around? Stop people in the street? Set up road blocks on highways?

Fully implement a “workable electronic employment-verification system.”

What’s the purpose? Will immigrants be deported if they lose their jobs? If so, might unscrupulous employers use that as leverage to force slave-labor conditions on helpless workers? But of course, that’s the point, isn’t it?

Institute an “employment-based immigration” system, with visa and green card allocations that “reflect the needs of employers and the desire for . . . exceptional individuals to help grow the economy.

How will politicians know the “needs of employers”? Will there be a central clearing house to which all employers will submit all their employment needs before hiring anyone? Who are “exceptional individuals”? What qualifies as exceptional?

Develop a temporary worker program that addresses the country’s economic needs and strengthens the nations security with particular concern for the needs of the agricultural industry.

What does “addresses the country’s economic needs” mean? If people work and are productive, doesn’t that address economic needs?

And how does it strengthen our security? Have there been many Mexican terrorists running around? Indeed, in a nation this size, have there been many foreign terrorists of any nationality?

But as for the agricultural industry, by all means let in all those “exceptional individuals” to do stoop labor picking crops in the field. Hey, farmers vote and contribute, don’t they?

Provide an opportunity for legal residence and citizenship for those who were brought to this country as children through no fault of their own, rewarding those who serve in the military or obtain college degrees.

They’ve made it very difficult for immigrants to get jobs and to earn enough money to send their kids to college, but that’s the plan. Right wingers tell poor people to do the impossible, then toss them out before they can do it. It’s genius.

No special path to citizenship, but adult illegal immigrants can live legally and without fear in the United States if they admit their culpability, pass rigorous background checks, pay significant fines and back taxes, develop proficiency in English and American civics, and support themselves and their families without access to public benefits.

God forbid these Mexicans are allowed to be citizens. First, they have to admit their culpability (why, we don’t know, but it makes right wingers feel strong to bully helpless people.).

Then they have to pass tests very few politicians could pass. And of course, pay unaffordable fines and taxes, all while becoming proficient in English, learning American civics and supporting themselves. And do not, I repeat DO NOT, ask for any benefits.

Of course, the minute you “admit your culpability, the police will toss you out of the country.

Who says Republicans are a bunch of mean, cowardly bullies, so unsure of our own abilities, they fear those inferior Mexicans will overthrow our government? Who says?

No legalization program will be implemented before there are specific enforcement triggers to ensure that our immigration laws will indeed be enforced.

We’re not sure what “triggers” we mean, but anything to make life difficult for poor, hard-working people trying to make a better life for themselves, is good for Republicans.

Maybe, they’re talking about the triggers on AK-47s that they love so much.

Bottom line question: Are there any people meaner, more cowardly and Un-American than “religious” conservatives?

They are so afraid of Mexicans, they do everything possible to make life miserable for good people who risk their lives to come here, even people who have lived here many years — even babies, for heaven’s sake.

They are so afraid of “terrorists” and criminals (especially black or brown criminals), they never can have enough guns, the more powerful the better.

They are so afraid of competition from the poor, they want to reduce any spending that benefits the poor — things like federally supported housing, food, retirement, unemployment compensation.

Yes, the conservatives are mean, as all cowards are, but what are they really afraid of?

An analysis from the Eagle Forum, a group run by conservative icon Phyllis Schlafly, argues that adding immigrants will doom the Republican Party.

The analysis looked at immigrants’ ideologies and found that they were likely to be liberal on social issues.

“The key conclusion of the report is this: For conservatives, there is no issue more important than reducing the number of immigrants allowed into the country each year,” the analysis says.

And there it is. The conservatives don’t car about “security,” “the rule of law,” “fairness,” “employment,” “college degrees,” “the military,” “farmers,” “citizenship,” “learning English,” “learning civics,” admissions of culpability,” “college degrees” or any of the other hoops the conservatives demand immigrants jump through.

No, they’re just frightened — frightened to death — frightened that immigrants will vote for Democrats. Period.

But here’s a thought. How about letting those oh, so religious, right wingers pass the same tests they put forth for immigrants — you know the English, civics, college or army, background check, support your family and above all, no federal benefits requirement.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine 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 and 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. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

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

THE RECESSION CLOCK

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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 ultimately 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.
●Everything in economics devolves to motive.
======================================================================================================================================================================================

We’ve discussed l’affaire Snowden before at:

Police state: Which vital secret did Edward Snowden reveal? Wednesday, Jun 12 2013

Police state: Which vital secret did Edward Snowden reveal? PART II Monday, Jun 17 2013

Obama: Edward Snowden is a stinkin’ traitor and should be hung . . . er . . . ah . . . I said what? Friday, Aug 9 2013

Why I love the National Security Agency Monday, Jan 20 2014

And now we have:

Edward Snowden Nominated For Nobel Peace Prize by Bill Chappell

You can read the article by clicking the above link, but I thought the key paragraphs were these:

Saying Edward Snowden has “contributed to a more stable and peaceful world order” by exposing U.S. surveillance practices and forcing a new debate over security and privacy, two Norwegian politicians nominated the former intelligence contractor for the Nobel Peace Prize on Wednesday.

Days before Clapper spoke on Capitol Hill, Snowden discussed the (U.S.) spy chief in an interview with German TV, as The New York Times reports:

“Mr. Snowden cited previous testimony from Mr. Clapper, in March of last year, as a prime factor in his decision to leak information to the public about the agency’s work. ‘I would say sort of the breaking point was seeing the director of national intelligence, James Clapper, directly lie under oath to Congress,’ Mr. Snowden said.

‘There’s no saving an intelligence community that believes it can lie to the public and the legislators who need to be able to trust it and regulate its actions. Seeing that really meant for me there was no going back.’“

That’s right, Mr. Snowden. The proven liar still has his job, while the one who exposed the lie is hounded by his government.

When criminal government employees, criminal bankers and criminal companies are rewarded for their lies, you know the nation has lost its moral leadership.

And that is the legacy of the Obama administration.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine 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 and 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. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

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

THE RECESSION CLOCK

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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 ultimately 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.
●Everything in economics devolves to motive.
======================================================================================================================================================================================

I previously have written about Modern Monetary Theory’s JG (Jobs Guarantee)

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012

MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012

Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012

“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

I won’t repeat the many, many reasons why I believe JG to be a bad idea — or bad ideas, as every time I discuss JG with an adherent, I am treated to a different version, beginning with the fundamental question, “Who is the employer, the government or the private sector?” — and that is but one of my complaints.

I also feel that lack of money, not lack of jobs, is the key problem. There are millions of jobs available. Look in your local newspaper or at such sites as Monster.com, and you’ll see thousands upon thousands of jobs being advertised. Private industry spends millions to find people to fill those jobs.

But they are the wrong jobs from the standpoint of pay, geography, skills needed, time, etc., etc. — and those are exactly the kinds of jobs JG would provide.

No, I don’t think having the government compete with private employment agencies, newspapers and online job searches will benefit the economy.

Given the choice of JG vs GI (Guaranteed Income), I’d lean toward GI. It’s simpler, accomplishes the primary goal of providing money to people who need money, and we already do something in the same genre: Social Security.

Yet GI also has a fundamental problem. If, for instance, everyone were guaranteed an annual income of, say, $10K, who would accept a full-time job paying $12K (assuming GI is a net income guarantee)? In essence, that employee would be working full time for $2K.

So the minimum wage functionally (though not legally) would be at least $20K annually, which would punish many employers, while not adding much to the economy’s money supply.

I suggest the problem(s) facing our economy are two-fold:
1. The economy has too little money.
2. The “not-rich People” (the 99%) have too little money.

So I propose we simply give a monthly Economic Bonus (EB) to every man, woman and child in America, regardless of any other income or wealth they may have. You would receive the same EB as I receive and as Bill Gates receives.

No need to go through the convoluted steps our gigantic tax code demands, to determine what is income, and what kind of income it is, and when you received it and how you received it, etc., etc. If you live in America, and you’re alive, you receive your monthly EB.

The economy benefits by receiving dollars and the 99% also benefit by receiving dollars. The rich benefit, too, but that’s good. It’s just more dollars for the economy, and it costs no one anything.

How much should the EB be? My early thought is $1K per month for everyone above the age of 21, and $500 per month for everyone below that age. You may have a different amount in mind.

The government already has done something similar, though it unnecessarily took into consideration income. In a weak attempt to moderate the Great Recession, the government mailed every taxpayer a check for as much as $500. (Had they sent $5,000 instead, the recession would have ended, but that’s another issue.)

I know that sending money to “lazy” people who don’t work, goes against our Puritan grain, but we should get over that notion. There are many reasons people don’t have enough money, and laziness isn’t anywhere near the top of the list.

Bottom line: Send every man, woman and child in America an Economic Bonus, and we will have solved the vast majority of economic problems facing America.

Or is that solution too easy for those who believe the medicine must be bitter, to be effective?

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

Implementation of The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich can afford better health care than can the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Economic Bonus)) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONE Five reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefitting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and business taxes would be a good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.
====================================================================================

THE RECESSION CLOCK

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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 ultimately 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.
●Everything in economics devolves to motive.
======================================================================================================================================================================================

The U.S. is Monetarily Sovereign. It has the unlimited ability to create its sovereign currency, the dollar.

Given this unlimited ability, it can pay any debt denominated in dollars. If you sent a legitimate $100 trillion invoice to the U.S. government, it could pay that invoice instantly, with no difficulty.

Contrary to the debt hysteria you may read in the newspapers or hear on TV, debt absolutely is not a burden to a Monetarily Sovereign nation.

By contrast, Spain is monetarily non-sovereign. It does not have the unlimited ability to create its sovereign currency, for one simple reason. It has no sovereign currency. It uses the euro, the supply over which it has no control.

And that is Spain’s big problem. No matter how it twists and turns, its supply of euros is limited and deficient. It’s short of euros. And, it owes more euros than it can pay.

So how can Spain find enough euros to pay its bills? Their amazing solution: It simply borrows more euros. That way, it can satisfy today’s creditors, while assuring the problem will continue to grow.

If you are deeply in debt, and have no adequate source of income, the solution is not further borrowing. You know that. I know that. Spain does not.

Here are excerpts from the Los Angeles Times:

Spain exits bailout program
By Lauren Frayer, January 23, 2014

Spain exited its international bailout program Thursday, amid a tentative economic recovery marred by persistently high unemployment.

The Spanish government heralded the bailout exit as a milestone, but acknowledged more progress was needed in a country with a jobless rate of 26%.

“I look not only at the future but also the present with hope,” Prime Minister Mariano Rajoy told parliament. “Although the unemployment figures in Europe, and in particular some member countries such as Spain, are still unacceptably high, I believe we can say that the worst is over and that we are now on the path to recovery.”

Yes, the worst is over. I am out of a job and owe a million dollars. But I just borrowed two million from gangsters, and I won’t have to pay it back until later. Problem solved.

Europe offered a credit line of up to $137 billion; Spanish banks ended up tapping $56.6 billion of that over the past 18 months.

Thursday’s exit means that Spanish banks will no longer have access to bailout loans. And they must still pay back what they’ve borrowed, with interest, over the next 15 years.

Because Spain’s banks have not solved their underlying economic problems, they will need more help in the future. But they are precluded from getting any more loans. So who is going to back them up? The Spanish government? Puleeeze!

Spain still faces serious problems. Economists say it could be years before jobs return. And there are fears that Spanish banks, buoyed by the bailout loans and improving confidence, are not writing down their bad real-estate debt as swiftly as prescribed.

Does this surprise anyone — except maybe the Spanish people?

“The big game that politicians and bank CEOs are playing is ‘extend and pretend.’ If we pretend that our banks are really healthy, then eventually all the assets underlying things on our balance sheets will regain value, and we won’t actually have to take such big losses,” said Megan Greene, chief economist at Maverick Intelligence in London. “That’s the game everyone in Europe has been trying to play.”

I like that phrase: “Extend and pretend.” It describes the entire eurozone “strategy.” Keep borrowing far into the future, and keep pretending the euro is a viable currency.

Greene said she believed that Spain would eventually need additional aid, if the reality of its banks’ balance sheets came to light.

Of course. Borrowing to cure debt really doesn’t have a proven record of success.

Spain was the cheapest (euro nation) to rescue. Its bailout was unique in that loans were earmarked for financial institutions, not government coffers. However, the rescue money is officially on the Spanish government’s tab, which has helped push up the level of public debt.

And how will that debt be paid? How, indeed.

From El Pais
CLAUDI PÉREZ

Foreign investor confidence in the country has been restored, albeit with the jobless rate still unacceptably high at 26 percent.

Foreign investors are happy. They are being paid with borrowed money. Meanwhile, the average people suffer.

The quality of the banks’ assets continues to deteriorate with the non-performing loan ratio moving above 13 percent in November for the first time on record, while the slump in the property market after a decade-long boom that ended around the start of 2008 has yet to fully run its course.

So, again the banks will fail, more austerity will be needed, pressing down on the backs of the poor.

“The government has no plans to increase the VAT rate,” Finance Minister Cristóbal Montoro said. “We already did so in this legislature and what we are hoping for is increased collections as consumption picks up.”

Austerity always demands that ever more money be pulled from the private sector — especially from the poor and what remains of the middle — to feed the insatiable money-hunger of the government and the rich.

The people don’t mean anything; it’s the government and the rich that matter.

The gap between the rich and the rest will continue to widen, as per the plan. It’s all part of the EU and Spain “Extend and Pretend” austerity Magic Show.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine 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. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (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. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

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

THE RECESSION CLOCK

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY