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.
======================================================================================================================================================================================

Have you wondered why the so-called “religious” right has turned into a forum for mean-spirited, cold-hearted, selfish people, who are as far from religion as one could stray?

Have you wondered where all these negative generalizations about the poor, the immigrant, the black, the Jewish, the gay and virtually everyone other than a white, adult, has-a-good-job and American-born-to-American-citizens, came from?

We are not born bigots. We are not born haters. Those traits must be learned. Consider, for instance, the Cato Institute:

The Cato Institute was founded as the Charles Koch Foundation in 1974 by Ed Crane, Murray Rothbard, and Charles Koch.

Cato Policy Analysis No. 224 April 27, 1995
SSI: The Black Hole of the Welfare State
by Christopher M. Wright, Southern lawyer (Alexandria, Virginia), and publisher of The Deficit Letter and Activists Online.

Executive Summary
Congress is finally reforming the Supplemental Security Income (SSI) program. Unfortunately, the reforms currently under consideration fall far short of the dramatic overhaul that open-ended entitlement program needs.

In Cato-speak, “reform” means cutting any program that primarily benefits the lower income groups.

SSI is one of the fastest growing welfare programs in the federal budget, and its costs are projected to accelerate by another 60 percent by 2000.

Translation: “’Welfare’ is our little code word for money given to lazy, low-income people (All low-income people are lazy). SSI pumps dollars into the pockets of low income Americans and into the economy, which stimulates the economy.

“This narrows the income gap between the very rich and the rest of you – a bad thing for us very rich people.”

SSI was originally designed to provide a safety net for low-income senior citizens, but it is now experiencing spectacular growth in recently eligible population groups, including drug addicts, the mentally ill, immigrants, and children.

Government projections indicate that between 1990 and 2000 the number of immigrants on SSI will have grown fivefold and the number of drug addicts and alcoholics eightfold.

Translation: “Addicts, the mentally ill and children are at fault for their own misery. As a lesson, they should be made to starve in the streets. Or let them commit crimes to support themselves. Then, the government can support them in jail.”

Many of the House Republican proposals, such as ending SSI for immigrants, are sensible, but they are insufficient to cap SSI’s skyrocketing costs.

In Cato-speak, “sensible” (and the aforementioned “reform”), means cutting any program that benefits the lower income groups. Sure, we’re cutting benefits to immigrants, but we have to keep cutting, cutting, cutting — to drive these people into the ground.

Some of the SSI reforms recommended in this study include the following: (1) terminating automatic cost-of-living increases for SSI . . .

Translation: “Reduce real (inflation adjusted) benefits to the poor.”

(2). . . eliminating lump-sum payments to SSI recipients . . .

Translation: “The lump sums are generated because the claims process and resulting appeals drag on for months and even years, and benefits are paid retroactively to the date of application. The solution is not to speed up the claims process, but to punish the needy for government inefficiency.”

(3). . . ending all childhood disability benefits . . .

Translation: “There is no need to pay childhood disability benefits. Kids don’t work, and it doesn’t cost anything to care for a disabled kid, does it?”.

, (4). . . creating an enrollment cap . . .

Translation: “We should help only a certain (diminishing) number of poor people. Any additional people can simply starve.”

(5). . . scaling back mental impairment benefits . . .

Translation: “We don’t believe the psychiatrists’ definitions of ‘mental impairment,’ and anyway, if you’re nuts, you don’t deserve to get any help. You should wander the streets, get a job, commit a crime or go to jail to feed yourself. We’ll be glad to pay for your jail time, but not for anything else.”

“Hitler was right. These people are lazy slugs, who are a drag on the economy and a blot on the gene pool.”

. . . and (6) ultimately privatizing disability insurance.

Translation. “We are the Koch brothers. We own Koch industries. Forbes called it the second largest privately held company in the United States, with an annual revenue of about $98 billion. We like rich people. Rich people are our friends.

“Some of our friends own insurance companies and other investment companies. Can you imagine how much richer we and our friends will become if SSI is privatized. Wow! We can smell the meat a’cookin.’”

Over the past several years, the Supplemental Security Income program (SSI) has been plagued by exploding costs for taxpayers.

Translation: “O.K., so SSI is paid for by our Monetarily Sovereign government. It doesn’t cost taxpayers a dime. But let’s not quibble over details.”

The combined federal expenditures of SSI and its sister program, Disability Insurance (DI), are now $55.3 billion. Disability has become the fourth largest area of federal entitlement spending after Social Security retirement, Medicare, and Medicaid.

SSI is a troubling case study in how federal entitlements continually expand beyond their original mission. Today, SSI is one of Washington’s primary fiscal black holes.

In Cato-speak, a “fiscal black hole” is a program that pays increasing amounts of money to the poor and to the economy. It is NOT a program that gives wonderful tax breaks to us rich people.

Possible reform measures include terminating the SSI program at the federal level and returning to the states the responsibility for providing assistance to low-income aged, blind, and disabled persons.

Translation: “The federal government, which has the unlimited power to pay any bill of any size, without collecting taxes (i.e. it’s Monetarily Sovereign), should not have to pay for SSI.

Instead, let the states, which already teeter on the brink of insolvency (i.e. they’re monetarily non-sovereign) should be burdened. This will assure that SSI benefits to the poor cease to exist, which is what we really want.”

If SSI continues at the federal level, enrollment should be capped and expenditures limited. And children and substance abusers should no longer receive cash assistance.

Other federal programs already address the needs of children, and substance abusers should be forced to compete for new drug treatment slots.

Translation: “The federal government is broke, but poor people are getting rich on SSI payments. Drug addicts and children are perfectly able to compete for treatment. Why should we have to care about them, anyway?”

The Senate Finance Committee report at the time of SSI’s inception declared that federal assistance would “provide a positive assurance that the Nation’s aged, blind, and disabled people would no longer have to subsist on below-poverty-level incomes.”

Despite the focus on adult assistance, disabled children were included in SSI, apparently without much discussion or examination of what the costs might be.

Translation: “O.K., so a bunch of bleeding-heart liberals wanted to help the Nation’s aged, blind and disabled. And I know it doesn’t cost me a cent, but why do we also have to help kids?”

Why SSI Keeps Growing and Growing
No one knows precisely why SSI has grown so rapidly and unexpectedly in the past six years. Many factors are probably responsible for the cascade.

Translation: “We have no idea what we are talking about, but if anything helps the aged, the poor or the disabled, and above all, if it helps disabled children, we are firmly against it.”

A sharp increase in disability claims followed the 1990 recession. Similar correlations have been observed in other nations between a poorly performing economy and spikes in the number of disability claims.

Translation: “We can’t understand why, during recessions, people actually lose their jobs and their health insurance.

“And, we can’t understand why, being in desperate straits, they claim disability, rather than simply firing a few of their maids and gardeners, like we do.

“This makes me so mad, I hardly can enjoy sailing my yacht.

Several states, including Illinois, California, and Michigan (which has terminated general assistance), have taken steps to switch disabled residents from state relief programs to SSI.

Translation: “The states (which are going broke, because they must rely on taxes) want the federal government (which never can go broke, because it does not rely on taxes) to pay for relief programs.

“This makes me so mad I hardly can enjoy flying in my private jet.”

Should their claims be denied, claimants can pursue several layers of appeal; 80 percent of appeals are now ultimately successful.

Lawyers in Pennsylvania run ads declaring, “Social Security is well known for denying meritorious claims that later are approved. . . . Don’t let a bureaucrat determine your future. Keep appealing.”

Translation: “The government denies meritorious claims, so for some reason, the greedy people appeal again. Outrageous.

“This makes me so mad, I no longer enjoy my hourly compliments from my butler.”

So that’s Cato, founded by Koch, Rothbard and Crane. Yes, we know about billionaire Koch. What about Rothbard?

To promote his economic and political ideas, Rothbard joined Llewellyn H. Rockwell, Jr. and Burton Blumert in 1982 to establish the Ludwig von Mises Institute in Alabama.

Are you conservative, libertarian, anarchist, socialist, or what? We are Misesians! The media will typically describe all non-socialists as conservatives, so we are usually lumped in among them, though the actual orientation of the Institute is libertarian.

This designation can encompass a wide range of thought from Jeffersonian classical liberalism to the modern anarcho-capitalism of Murray N. Rothbard.

The core conviction is what matters: peaceful exchange makes everyone better off; private property is the first principle of liberty; intervention destroys wealth; society and economy need no central management to achieve orderliness.

Anarcho-capitalism (also referred to as free-market anarchism, market anarchism, private-property anarchism is a political philosophy which advocates the elimination of the state in favor of individual sovereignty in a free market.

Translation: “Private property is most important, and those who have the most private property should rule. Intervention (i.e government aid to the poor) destroys the wealth (i.e. the income gap) of the rich.

“Big government is unnecessary, because it can prevent the orderliness of the rich ruling the poor.”

And finally, we come to Edward Crane:

Edward Harrison Crane is a co-founder of the Cato Institute and served as its President until October 1, 2012.

In the 1970s, he was one of the most active leaders of the Libertarian Party. In 1980, Crane served as Communications Director to the Libertarian Party presidential ticket of Clark and Vice Presidential candidate David Koch.

Crane sits on the boards of various political organizations, including Americans for Limited Government.

Translation: “I, Edward Harrison Crane, think David Koch should be Vice President of the United States of America. He may be a billionaire, who wants to cut federal aid to the poor, but really, in his heart, he loves you little people.”

Americans for Limited Government (ALG) is committed to advancing free-market reforms, private property rights and core American liberties. For these liberties to be achieved, it is essential to reduce the role of government and put citizens back in charge of their own lives.

Translation: “Free market reforms” means allow the rich to do whatever they please.

“Reduce the role of government” means cut spending on anything that benefits the middle class and the poor.

“Put citizens back in charge of their own lives” means let the poor swim or drown.

Bottom line: The Kochs and their wealthy cronies not only have bribed the politicians (via campaign contributions and promises of lucrative employment), the media (via ownership) and the university economists (via contributions to universities), but also have been very effective in brainwashing the middle class and the poor to believe what the rich want them to believe.

The notion that the poor are at fault for their own misery, is fundamental to the religious right’s “core American liberties.”

Ironically, the vast majority of the religious right is part of the very group who will be most punished by conservatism.

Brainwashed, they use the words the rich have put in their mouths.

They have dedicated themselves to destroying the lives of the poor — and they get mad as hell if anyone tries to warn them that by helping the rich, they are destroying their own lives.

Conservatives are the trained suicide bombers of American society.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. 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)
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.

#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.
======================================================================================================================================================================================

A new Fed chairman, a new myth is born.

Fed Chairman Ben Bernanke gave us the myth of quantitative easing (QE) as an economic stimulus. QE, very simply, is the Federal Reserve’s purchasing of Treasury bonds, which supposedly stimulates the economy by adding dollars to the economy and reducing long term interest rates.

It is true that adding dollars to the economy does stimulate, but the purchase of Treasury bonds doesn’t do it. In fact, these monthly, $85 billion purchases subtract dollars from the economy.

The myth is based on the wrong-headed belief that when the Fed buys T-bonds, it creates dollars, which then go into the private sector. In actual fact, no dollars are created, and although the process does increase liquidity somewhat (cash is more liquid than bonds), QE has been reducing the total dollar supply.

Here is how that works:

When you, or China or anyone else buys a T-bond, you instruct your bank to debit your checking account and to credit your T-bond account at the Federal Reserve Bank (FRB).

So you, China and anyone still own the dollars. You simply have transferred them from one of your bank accounts to another of your bank accounts. Since a T-bond account essentially is a bank savings account, visualize that you have transferred dollars from your checking account to your savings account.

Now, visualize that the Fed decides to buy your savings account. What will happen? Your savings account will be debited and your checking account will be credited. Will this stimulate the economy? Of course not.

In the case of T-bonds, however, there actually will be a negative effect. With the Fed owning more T-bonds, the Treasury will pay less interest into the private sector – which is recessive. On balance, QE is a stimulative myth.

And now comes Janet Yellen. No QE for her. She has a new idea. It’s called “Optimal Control (OC). Here is how Business Insider explains it:

Everyone On Wall Street Is Buzzing About ‘Optimal Control’ — The Janet Yellen Approach To Monetary Policy
Matthew Boesler, Nov. 4, 2013,

Michael Feroli, chief U.S. economist at JPMorgan: “This approach starts with a forecast for the economy, and then solves a large-scale macroeconomic model to find the path of the funds rate that minimizes the deviation of inflation and unemployment from their respective targets.”

The Federal Open Market Committee (FOMC) targets an annual inflation rate of 2% over the long run and an unemployment rate of 6% (the latter number an estimate of the economy’s “natural” unemployment rate).

Under the optimal control approach, the central bank would then use a model to calculate the optimal path of short-term interest rates in order to hit these targets. As long as unemployment is further away from the target level than inflation, then monetary policymakers would keep interest rates low in an attempt to correct this, even if it means inflation runs slightly above target for a while.

The upshot of a Yellen Fed employing an optimal control strategy is simply the notion that the central bank would take a more aggressive stance toward fighting above-target unemployment, implying lower short-term rates for longer.

The Yellen Optimal Control approach requires four beliefs to be correct:

1. Raising interest rates fights inflation
2. Lowering interest rates fights unemployment
3. Excessive inflation and excessive unemployment do not occur simulatiously.
4. Interest rate control is a more powerful inflation and unemployment fighter than other economic factors, so that the Fed actually has significant control.

1. RAISING INTEREST RATES FIGHTS INFLATION
This is correct, and in fact, is the method the Fed successfully has used to fight inflation.

Inflation is the loss in value of the dollar. But the dollar is a commodity, the value of which is determined by Supply and Demand. And Demand is determined by Risk and Reward. All other factors held constant, increasing the Reward for owning a dollar, increases the value of the dollar, thereby fighting inflation.

Interest is the Reward for owning a dollar.

There are two counter effects: Higher interest rates increase business costs (inflationary), but for most businesses, interest is a very small part of their costs, so the effect is slight. And higher interest rates require the Treasury to pay more interest into the private sector, which adds dollars, which in turn increases Supply – also inflationary.

So there are opposing Supply and Demand forces, but the Demand force is stronger, which is why raising interest rates has fought inflation:

The following graph shows how the Fed anticipates and fights inflation by raising interest rates, after which inflation falls.

The relationship would be clearer, but for one important factor: The prime cause of inflation for the past 40 years has been oil prices, not low interest rates. (This is one example of the falsity of belief #4, above).

Count #1 as True.

2. LOWERING INTEREST RATES FIGHTS UNEMPLOYMENT
High interest rates fight inflation (i.e. high rates are deflationary), so low rates must be inflationary. But for low rates to fight unemployment, inflation also must correspond with unemployment. This is nonsensical on its face.

The belief is based on the myth that low rates stimulate the economy by encouraging business borrowing. But as described in more detail in the post, The low interest rate/GDP growth fallacy, there is no positive relationship between low interest rates and economic growth.

An excerpt from the post:

What seems to be ignored is the lending side of the equation. When interest rates are low, lenders receive less money. And who are the lenders? Businesses and consumers.

You are a lender when you buy a CD or a bond, or put money into your savings account. When interest rates are low, you receive less money, which means you have less money to spend on goods and service — which means less stimulus for the economy.

Also, when rates are low, the Treasury sends less interest money into the private sector, and banks are less encouraged to lend.

Count #2. as False.

3. EXCESSIVE INFLATION AND EXCESSIVE UNEMPLOYMENT DO NOT OCCUR SIMULTANEOUSLY
The problem with having one tool (interest rates) for solving two different problems is, what does one do when both problems are in opposition. If your only available food is sugar, and you are suffering from both diabetes and starvation, what do you do?

In fact, excessive inflation and excessive unemployment do occur together, and this is known as “stagflation.”

Count #3 as False.

4. INTEREST RATE CONTROL IS A MORE POWERFUL INFLATION AND UNEMPLOYMENT FIGHTER THAN OTHER ECONOMIC FACTORS, SO THAT THE FED ACTUALLY HAS SIGNIFICANT CONTROL.
We already have seen that low interest rates do not stimulate the economy, so do not fight unemployment. On that basis alone, #4 is False.

The most powerful unemployment fighter in America is Congress, which through its spending, creates demand for goods and services. Additionally, the federal government directly employs a great many civilian and military personnel – and none of this is under the Fed’s control.

In summary, the Fed has some control over inflation but has very little effect on unemployment. Janet Yellen’s OC is as big a myth as Ben Bernanke’s QE.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. 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)
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.

#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.
======================================================================================================================================================================================

As “austerity,” also known as “deficit reduction,” eats America from the inside, we can look to the euro nations to see our future.

Once Europe was wealthy. Then came the euro, which required each nation to surrender its single, most valuable asset: Their Monetary Sovereignty.

SPAIN faces staggering losses as it accepts the reality of the housing bust
By Matt Phillips

The size of Spain’s banking crisis required a bigger, politically unpalatable bailout from the European policy makers writing the checks.

It’s a recipe for decades of terrible economic conditions. But that seems to be what Europe is cooking up.

The “unpalatable bailout” includes more loans to a nation unable to pay even its current debts, plus austerity: The American Tea/Republican Party’s guaranteed formula for economic disaster.

FRANCE’s ‘AA’ Hollande pays price for kowtowing to EMU deflation madness
By Ambrose Evans-Pritchard

France’s heroic fiscal squeeze of 1.8pc of GDP last year – in order to comply with EMU demands – was at best self-defeating, and arguably destructive. All France got was a double-dip recession. Some 370,000 people have lost their jobs.

There is a near religious belief in Berlin – evangelised by Brussels, and the EMU gang of five – that any let up in austerity, any recourse to stimulus, let alone a new deal, is a gift to shirkers who want to dodge reform.

The EMU gang of five claims that applying leeches is the way to cure anemia — the same believe the U.S. Congress and the President foist on America.

GREECE‘s debt inspectors back amid austerity anger

Inspectors from Greece’s bailout creditors have restarted talks on spending reforms that the government is resisting, with Greek officials ruling out any further blanket wage and pension cuts.

The sides are at odds over the size of a 2014 budget gap and whether a plan to cover it will require more austerity measures.

Greek officials insist no additional austerity measures can be implemented, arguing they would be unproductive in an economy that is contracting for a sixth year and with unemployment near 28 percent.

Conservative Prime Minister Antonis Samaras late Monday said Greece was fulfilling its bailout commitments and would cover budget gaps without new blanket pay cuts for wage earners and pensioners.

Austerity = pay cuts for the populace. It’s inevitable, because deficit reduction reduces the economy’s money supply. Less money = less business = fewer jobs = less pay = more poverty.

ITALY signals end of eurozone recession
By Mark Thompson

Italy provided further evidence Tuesday that the eurozone’s prolonged recession may already be over, after data showed its economy shrank by (only) 0.2% quarter-over-quarter, confirming the eurozone’s third-biggest economy has now been stuck in recession for two full years — a post-war record.

An easing of the austerity agenda by Italy’s coalition government, including the cancellation of a planned VAT hike and removal of a property tax on first homes, may already be contributing to a recovery in household spending.

For the Eurozone, success is when the economy shrinks less than expected. And while reducing austerity “may contribute to a recovery,” austerity has been implemented as the cure for recession.

While recognizing that reducing austerity “contributes to a recovery,” the leaders maintain that deficit reduction is beneficial.

But, of course, the euro nations, being monetarily non-sovereign,
cannot create money at will, and so are stuck with austerity. By contrast, the U.S. is Monetarily Sovereign, can create dollars at will, and never needs to cut deficits.

Yet we cut deficits, inflicting grievous harm on ourselves, for no good reason.

IRELAND’s economy forecast to grow 1.7 per cent in 2014
Olli Rehn says the European economy has reach a “turning point”, but it is too early to declare victory.

Gross public debt as a percentage of GDP is expected to decrease from 124.4 per cent in 2013, to 120.8 per cent in 2014 and to 119.1 per cent in 2015.

Olli Rehn, Commission Vice-President for Economic and Monetary Affairs and the Euro said “There are increasing signs that the European economy has reached a turning point.

(Unemployment is expected to decrease to 12.3 per cent in 2014 and to 11.7 per cent in 2015.)

That 12.3% unemployment is well above the level the U.S. economy reached during the darkest days of the Great Recession. For the euro nations, 12.3% unemployment is a happy “turning point.”

This “turning point” will be short lived, as a money shortage will make economic growth impossible.

CYPRUS reeling 6 months after EU rescue
By Alanna Petroff, September 26, 2013

25% pay cuts. 40% increase in unemployment.

Six months after Cyprus became the fourth eurozone country to need a bailout, the Mediterranean island’s economy is shrinking rapidly as austerity measures bite, sending unemployment through the roof.

Austerity measures have also been introduced to satisfy bailout conditions, with lawmakers implementing tax hikes and steep salary cuts in the public sector.

“There’s no bright future. Day by day, things get worse.”

The beat goes on. While “austerity,” which is just a synonym for deficit reduction, has ravaged Europe, we in America are subject to — that’s right — austerity.

The question has not been whether to inflict austerity on ourselves, but how much. The Democrats want a little deficit cutting, the Tea/Repulicans want a lot.

Both parties administer repeated doses of the proven-to-be-deadly, deficit-cut poison, while assuring us this will cure our ills.

By definition, a large economy has more money than does a small economy. Therefore, a growing economy requires a growing money supply. QED

The euro nations, being monetarily non-sovereign, do not have a sovereign currency. They cannot create euros at will, so debts are a heavy burden. To survive, long term, they need to acquire euros from beyond their borders.

The only successful euro nations are those with a positive balance of payments. But mathematically, all nations cannot have a positive balance of payments.

The haves take euros from the have-nots. Half of Europe is destined to starve now; the other half destined to starve later.

By contrast, the U.S. is Monetarily Sovereign, so has the unlimited ability to create its sovereign currency, the dollar. Debt never can be a burden.

Because the U.S. cannot run short of dollars, it never needs to ask anyone else for dollars — not you, not me, not China. But, U.S. politicians, media and mainstream professors pretend the U.S. is like the euro nations.

They brainwash the public into believing the U.S. can run short of its sovereign currency. The Tea/Republicans speak of small government, as though the government that provides thousands of benefits to America, actually is a burden on us.

But it is not the government that is a burden. Rather, it is unnecessary taxes — unnecessary because the government can create unlimited dollars — that are the burden.

The Tea/Republicans opt for lower benefits and higher taxes on the middle classes and the poor, so to reduce the deficit (i.e reduce money creation).

It would be easy to ascribe effort to ignorance, and for the American public, that would be true. The public is economically ignorant, relying on its leaders for guidance.

But for the political, media and academic leaders, ignorance is not the problem. They know exactly what they are doing.

The politicians have been bribed by the rich, via political contributions and promises of lucrative employment, later.

The media are owned by the rich.

The universities, and their employees, respond to what their rich donors want.

Because most federal spending benefits the poor more than the rich, it narrows the gap between the rich and the rest. But the rich want the gap widened. It is what makes them rich.

So the rich push America toward the euro disaster, and claim this is prudent.

While the European people drown because of deficit reduction, the American people willingly adopt the same destructive, deficit reduction.

And get angry when you warn them they are marching over a cliff.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. 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)
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.

#MONETARY SOVEREIGNTY