–The George Will legacy: Will-onomics, the balanced budget plan to create an American depression.

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.
●Cutting the deficit is the government’s method for taking dollars from the middle class and giving them to the rich.
●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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George Will appears to know as much about economics as I know about quantum chromodynamics. The difference is, George Will writes about economics. Frequently. Way too frequently.

And what he writes is humorous nonsense, but some people believe his humorous nonsense, and other people pay him to write his humorous nonsense, so I guess he has the last laugh.

Here are a few passages:

Time for a balanced-budget amendment
By George F. Will, Published: January 9, 2013

Democrats not allergic to arithmetic must know the cost of their “fiscal cliff” victory. When they flinched from allowing all of George W. Bush’s tax rates, especially those on middle-class incomes, to expire, liberalism lost its nerve and began what will be a long slide into ludicrousness.

Translation: “I said, ‘Democrats not allergic to arithmetic,’ (implying some are allergic to arithmetic.) I, George Will, however, am allergic to algebra, so I pretend not to believe that the equation, GDP = Federal Spending + Non-federal Spending – Net Imports means when we cut deficits we cut GDP. I know arithmetic. Don’t make me learn algebra.

“And ‘Lost its nerve’ means not increasing taxes on the middle class, so as to increase the gap between the very rich and the rest. Brave people like me would increase taxes on the middle- and lower-income classes, because (trust me on this), tax increases grow the economy. You do believe that, right?”

”Liberals could have had a revenue increase of $3.7 trillion over 10 years. Instead, they surrendered nearly $3.1 trillion of that. “

Translation: “Liberals could have pulled $3.7 trillion out of the economy, thereby assuring ten years worth of recession and a massive increase in the income gap. Isn’t that what we all want?”

They cannot now increase government revenue as a share of gross domestic product through tax reform because Republicans insist that the Taxpayer Relief Act closed the revenue question. And because tax reform is dead for the foreseeable future, so are hopes for a revenue surge produced by vigorous economic growth.

Translation: “I believe the more money the government pulls out of the economy, the more vigorous will be economic growth. If the government simply could take all the dollars out of the economy, we would grow even faster. I call it ‘Will-onomics’

No numerate person thinks that today’s entitlement state, let alone the steady expansion of it that is liberalism’s aspiration, can be funded by taxing the income of the 0.7 percent of taxpayers whose rates were just raised. Because 82 percent of American earners pay more in payroll taxes than income taxes, no politically conceivable or economically feasible middle-class tax rate can fund the entitlement state.

Translation: “I know income taxes don’t fund Social Security or Medicare, but I’m hoping you’re too ignorant to understand that. So I’m going to mix comments about payroll taxes and income taxes, and assume you won’t notice.”

By rescuing almost everyone from the restoration of Clinton-era rates, liberals abandoned any pretense of paying for their program of ever- expanding entitlements. Instead, they made trillion-dollar deficits their program.

Translation: “I also assume you don’t know that in a Monetarily Sovereign nation, deficits grow the economy. In Will-onomics, deficits (adding dollars to the economy) are bad and taxes (pulling dollars out of the economy) are good. Don’t think about it. Just trust me.

Republicans should rally ’round one of several well-refined constitutional amendments requiring balanced budgets. Such an amendment would be popular everywhere, but especially in six states important in 22 months.

Sixty-seven Senate votes are needed to send a proposed amendment to the states for ratification. There are 45 Republican senators. There are nowhere near 22 Democrats who would vote for an amendment Republicans could support. Still, Republicans, whose divisions cause Democratic gloating, could use a balanced-budget amendment to divide Democrats who threw the remnants of their fiscal self-respect off the cliff.

Translation: “You may think I’m stupid for suggesting a balanced budget amendment which would put America in exactly the same position as Greece and Italy. But I’m not stupid.

“O.k, I admit it. I do know that GDP = Federal Spending + Non-federal Spending – Net Imports. So the only way the economy could grow with a balanced budget is for us to have gigantic Net Exports, which we cannot do unless we impoverish the rest of the world – which also would cause a depression.

“So why do I argue for something I know full well will throw America into a depression greater than the Great Depression? Because I am paid by very rich people to confuse you, so you will demand my Will-onomics.

“You see, the gap between the very rich and all the rest increases when federal spending for social programs decreases, and it is the gap that makes the rich rich and the rest poor. Without the gap, no one would be rich.

“But I don’t care about my legacy. Sure, I’ll be remembered as a boob or even a traitor, but meanwhile I’ll laugh, all the way to the bank.”

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

–When are you going to get angry?

Background: Readers of this blog know of my belief that economic ignorance is not the reason why the President, the Secretary of the Treasury, the Chairman of the Fed, Congress and the hundreds of PhD economists they employ, do not seem to understand Monetary Sovereignty. Not one of them.

They do not seem to understand that the U.S. government, unlike the governments of the states, counties and cities, and unlike you and me, has the unlimited ability to create its sovereign currency, the dollar. So it never can be “broke,” as the Speaker of the House famously lied, nor should the U.S. handle its finances like a family does, as the President frequently lies.

On rare occasion, one of these people lets slip the fact that he does indeed understand, as when Chairman Greenspan said, “The United States can pay any debt it has, because we always can print more money.”

Given that fact, which is well known to the politicians and the media, the only reason I can imagine, for all the lying by our leaders is this: They are paid to lie by the top ,1% income group. The politicians are paid via campaign contributions and the media are paid via ownership and advertising.

The .1%’s reason for the lies: Austerity widens the gap between the .1% and the 99.9%, and it is the gap, not absolute dollars, that makes rich people rich and powerful, and allows them to rule.

Last night, I was telling my wife about my belief that President Obama wants to increase the gap between the rich and the middle class because he owes his soul to the rich. Her response: “Why does he care any more? He’s finished running for office.”

I responded: “He’s a politician, accustomed to taking his marching orders from the political bosses. That, not accomplishment, is how he rose through the ranks. Here is a man who never did anything noteworthy, yet became President of the United States – twice – by sucking up to the moneyed powers.

“Later, when he’s out of office, he still will want support from these people. They’ll set him up for speeches and books and various advisories, all well paying. It’s the way he always has lived, and always will.”

Then, this morning, I saw this:

$1 million donations wanted for Obama inauguration
By Jack Gillum, Nedra Pickler and Stephen Braun, Associated Press

WASHINGTON (AP) — Planners of President Barack Obama’s second inauguration are soliciting high-dollar contributions up to an unprecedented $1 million to help pay for the celebration in exchange for special access.

The changes are part of a continuing erosion of Obama’s pledge to keep donors and special interests at arm’s length of his presidency. He has abandoned the policy from his first inauguration to accept donations up to only $50,000 from individuals, announcing last month that he would take unlimited contributions from individuals and corporations.

A fundraising appeal obtained by The Associated Press shows the Presidential Inaugural Committee is going far beyond Obama’s previous self-imposed limits and is looking to blow away modern American presidential inauguration fundraising records by offering donors four VIP packages named after the country’s founding fathers.

Event organizers are hoping the packages will pay for expensive events surrounding Obama’s inaugural on Jan. 21. Obama raised $53 million in private money for his first inauguration, when a record 1.8 million people packed the National Mall to see the nation’s first black president take the oath of office. The celebration has been scaled down this year, with less than half the crowd expected and a cut from 10 inauguration-night balls to two.

But the pressure is high to pay for the festivities after donors already contributed to the most expensive political race in U.S. history, a campaign that exceeded $2 billion. So far, health care executives and major Democratic Party donors — including those who’ve taken private meetings with Obama or his senior staff — are among those paying for the party.

The shifts underscore Obama’s evolving stance on changing how business is conducted in Washington. He criticized pay-for-access privileges during his first campaign, and after coming into office he pledged to have the most transparent administration in history. The president once shunned lobbyists but later gave some waivers to work for his administration. Once a vocal opponent of super political action committees — which can spend as much money as they can raise to help candidates — Obama later embraced them when faced with the mountain of cash spent by allies of his Republican campaign challengers.

Donors at the “Washington” level are offered “premium partner access” for a minimum donation of $250,000 from individuals and $1 million from corporations.

The “Adams” package also promises premium partner access for $150,000 from individuals and $500,000 from corporations.

Donors are offered “special partner access” that still includes ball tickets and the Candle Light Celebration at the National Building Museum for donations of $75,000 for individuals and $250,000 for corporations at the “Jefferson” level and $10,000 and $100,000 at the “Madison” level.

So it never ends. Even a politician who will not again will run for office, continues to suck up to the .1%, and of course, all the politicians who will continue to seek office and/or political jobs, suck even harder.

Those people who will contribute hundreds of thousands, have their reasons. They didn’t become .1%ers by tossing money carelessly. And what they want is power, and power comes from the gap. No gap, no power, and the bigger the gap, the more the power. It’s that straightforward.

So, the next time you hear that Social Security and Medicare must be “strengthened” (i.e. weakened) or “fixed,” (i.e. cut), or that social spending “breeds laziness” (i.e. “I’ve got mine; screw them.”), or that the Platinum Coin Solution is an “illegal gimmick” (i.e. “OMG, it will work”) you’ll understand the reason.

It has absolutely nothing to do with a fear the U.S. government could run out of money (it never can), nor with the phony Weimar Republic bogeyman, inflation (which we are nowhere near and easily can prevent.)

It has to do only with pushing down the 99.9% so the .1% can increase its power over them.

The question is: When are you going to get angry at what is being done to you?

Rodger Malcolm Mitchell
Monetary Sovereignty

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#MONETARY SOVEREIGNTY

–The question that frightens Barack Obama most

There is one question that frightens President Obama most, and no, it isn’t, “Where is your birth certificate?”

Background: There has been a groundswell of dialog about the Platinum Coin Solution. Briefly, if you not yet heard, there is a law that allows the Secretary of the Treasury to mint a coin made of platinum (must be platinum), in any denomination he chooses.

The groundswell has become so great, the politicians no longer can pretend to ignore it. In fact, one Republican already is trying to pass a law against it.

The Secretary of the Treasury could, if he wished, mint a $100 trillion coin (at a cost of a few dollars), deposit the coin with the Federal Reserve Bank, and offset the phony federal debt for many years, or really, forever. No more debt ceiling. No more silly debt clocks.

And because this coin would not enter the economy, but merely be deposited with the FRB, in of itself, it would not cause inflation. It would end the “debt-must-be-reduced” craziness, and reveal the fact that the federal government has the unlimited power to pay any bills, any time.

The government could fund Medicare for every man, woman and child in America. It could pay living Social Security benefits. It could end the suicidal drive for austerity, that has destroyed economies all over the world — including ours.

So, here is the question Obama fears:

“Mr President, why the hell am I paying taxes when you can mint a $100 trillion dollar coin, pay all our bills and not cause inflation?”

Then, of course, that question would be followed with other questions:

Why did you increase my FICA payments?
Why did the government increase the qualifying age for Social Security?
Why the concern about Medicare “sustainability”?
Why does my state need to go broke paying for Medicaid?
Why not Medicare for everyone?
Why the limit on federal employees’ paychecks?
Why do you keep talking about the need for spending cuts?
Why do we need austerity, when it has failed everywhere in the world?

So why, Mr. President?

Why?

Rodger Malcolm Mitchell
Monetary Sovereignty

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#MONETARY SOVEREIGNTY

Have you demanded to join the suicide pact? Are your children and grandchildren in it?

The previous post, “Guns are here to stay,” received a comment by Mark Robertson, who said in effect, “Poverty worsens gun violence.”

I agree, and in fact, poverty may be the primary (though not only) driver of gun violence.

Since deficit reduction is a certain path to recession and increased poverty, it might be interesting to survey the population, to see how many favor deficit reduction. Oh, who am I kidding? No research is necessary.

We already know that virtually all of the population demands to participate in the suicide pact known as “austerity” — which brings me to a tiny article, tucked at the very bottom of page 3A in the January 7th Sun Sentinel:

McConnell says issue of new taxes is “behind us”

With looming deadlines on the nation’s federal borrowing limit and delayed across-the-board budget cuts, Senate Minority Leader Mich McConnell, R-Ky, told ABC on Sunday that discussions about new taxes are off the table in the upcoming fiscal debate, and that reining in government spending must be the focal point.

“The tax issue is behind us . . . Now it’s time to pivot and turn to the real issue, which is our spending addiction,” he said.

Translation: “We Republicans, with the compliance of the Democrats, now are finished with the tax deal, the most egregious part of which was that gigantic FICA increase on the middle and lower income class salaried people.

“And while all taxes reduce GDP, which hurts the lower 99% income group, that FICA increase really slams these people, which is exactly what the upper 1% pays us to do.

“But we’re not through. Now we get into spending, where we really can punish the .99%. We will cut Social Security benefits by raising the qualifying age and changing the way inflation is measured. We also will cut Medicare and Medicaid benefits.

“Then we’ll reduce the military budget. The military employs all those middle- and lower income soldiers. And the military purchases billions of dollars worth of supplies and equipment from private business, which now will have to fire people. Think how we’ll send millions more Americans into unemployment, which further will widen the gap between the 1% and the 99%.

“After that, we’ll cut other agencies that benefit the public (investment and bank regulation, food and drug regulation, environmental protections, infrastructure repairs, research and development, education, etc.), while we close a few tiny tax loopholes, to make the public think we’re being evenhanded (But don’t worry rich folks; we’ll open up more loopholes, just for you.)

“You may ask, ‘How can we get away with repeatedly punishing the 99% — repeatedly widening the gap between the rich and the rest’? — and the answer is, we have brainwashed the 99% into believing this not only is good but necessary.

“Although that 2% FICA increase alone will be sufficient to drop the nation back into a deep recession, exacerbate unemployment, put marginal earners out on the street and dramatically widen the income gap, we aren’t finished stepping on the people’s necks. We want them to know who their masters are, so they never even think about poking their noses up for air.

“GINI shows the gap between the rich and the rest. See how the gap has grown:
Monetary Sovereignty

“But, look at the slope of the line beginning 2010. Now, the gap really is widening:
Monetary Sovereignty

“This will be remembered as the most dramatic widening of the income gap in American history — the time when the the 1%, the President and both political parties successfully conspired to rule the underclasses via impoverishment.

“And by the way, who needs gun control? Let the masses have their guns. When they shoot each other, it just keeps them down.

“This will be historic, and the people demand it — for themselves and for their families.

Rodger Malcolm Mitchell
Monetary Sovereignty

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#MONETARY SOVEREIGNTY

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