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

Mitchell’s laws:
●Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

●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, and the motive is the gap.
===================================================================================

This post, “How to eliminate college loan debt,” also should be titled, “How America can keep up with the rest of the world.”

In several posts, including “How to build a more educated, more successful America” (Friday, Oct 3 2014), and “Five reasons why we should eliminate school loans” (Thursday, May 16 2013), we have told you the federal government should pay for college education.

The U.S. states and cities pay for grades K-12. Unfortunately, the states and cities, being monetarily non-sovereign, have difficulty funding this cost. So, the quality of K-12 education suffers.

By contrast, the U.S. federal government, being Monetarily Sovereign, can afford anything.

Here is what Europe thinks about the importance of a college education in today’s, highly competitive, technological world:

Germany Makes College Education Free as American Students Drown in Debt (Posted on Oct 4, 2014)

Although German students were paying only the equivalent of $630 a year for higher education, on average, the country’s elected representatives decided any tuition fees perpetuate inequality

German universities only began charging for tuition in 2006, when the German Constitutional Court ruled that limited fees, combined with loans, were not in conflict the country’s commitment to universal education.

The measure proved unpopular, however, and German states that had instituted fees began dropping them one by one. Higher education is now free throughout the country, even for international students.

“We got rid of tuition fees because we do not want higher education which depends on the wealth of the parents,” Gabrielle Heinen-Kjajic, the minister for science and culture in Lower Saxony, said in a statement.

Her words were echoed by many in the German government. “Tuition fees are unjust,” said Hamburg’s senator for science Dorothee Stapelfeldt. “They discourage young people who do not have a traditional academic family background from taking up study.

It is a core task of politics to ensure that young women and men can study with a high quality standard free of charge in Germany.”

The German government, unlike the U.S government, is monetarily non-sovereign. It does not have the unlimited ability to pay its bills. Yet, German politicians believe education to be so important, they vote to fund even advanced education.

American politicians are not as concerned about education.

German young people are not the only ones who find it much easier to be educated, than do American youngsters:

This Country Just Abolished College Tuition Fees
BY Joaquim Moreira Salles, Posted October 1, 2014

Free education is a concept that is embraced in most of Europe with notable exceptions like the U.K., where the government voted to lift the cap on university fees in 2010.

UK students often compare their plight to their American counterparts, but most Americans would be fortunate to pay as little as the British do: a maximum of $14,550 per year.

High tuition fees in the U.S. have caused student loan debt, which stands at $1.2 trillion, to spiral out of control. It is now the second-highest form of consumer debt in the country.

The U.S. as whole could take a note from Germany and make public universities free with relative ease.

As we noted, the U.S. federal government, being Monetarily Sovereign, can afford anything. It can pay any bill of any size at any time.

That said, even people who do not understand Monetary Sovereignty — people who think federal financing is like personal financing — believe the federal government can afford to pay for college:

Here’s Exactly How Much the Government Would Have to Spend to Make Public College Tuition-Free
Jordan Weissmann, January 3, 2014

A mere $62.6 billion dollars!

According to new Department of Education data, that’s how much tuition public colleges collected from undergraduates in 2012 across the entire United States.

The New America Foundation says that the federal government spent a whole $69 billion in 2013 on its hodgepodge of financial aid programs, such as Pell Grants for low-income students, tax breaks, work study funding. And that doesn’t even include loans.

If we were we scrapping our current system and starting from scratch, Washington could make public college tuition free with the money it sets aside its scattershot attempts to make college affordable today.

Note the “with the money” line, indicating Mr. Weissmann falsely believes dollars are limited for our Monetarily Sovereign federal government. Yet even he believes the federal government should pay for college educations.

Bottom line: The current system of state and local support for K-12 may have been fine for the 1700s – 1900s, when we were largely an agrarian society and our cities were low-tech. But in today’s, more complex, more competitive world, K-12 isn’t good enough.

Apparently, Europe understands this.

American politicians don’t, or at least pretend they don’t, for high college tuition is just one more way they widen the Gap between the rich and the rest. This, of course, is at the behest of the rich.

My advice: Contact your Washington representatives and demand that the federal government end the ridiculous, impoverishing local funding of K-12 and the equally impoverishing student loan program. Replace them with 100% federal funding of all education, including advanced education.

And don’t accept the lie about federal debt and deficits being “unsustainable” and the federal government being “broke.” (Thank you Mr. Boehner).

Educationally, we are falling behind. American needs our young people to be educated.

And not just the rich kids.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten 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 an 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. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

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

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

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

Mitchell’s laws:
●Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

●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, and the motive is the gap.
===================================================================================

This is why I’m proud to be an American:

Yes, we have the most powerful military in world history, but that is not what makes me proudest.

And yes, we have the most robust economy, and we went to the moon first, and we are a constitutional democracy, and we have fought for, and given our lives for, freedom, not only for here but for those abroad.

And yes, our politicians sent our beautiful children to die in Korea and Vietnam and Pakistan and Afghanistan and Iraq — all for the wrong reasons.

But though our leaders lied to us, in our hearts we thought we were giving people — people we didn’t even know — freedom, hope and democracy.

It was all lies our leaders told us, and we believed, and we sacrificed, and continue to sacrifice, our children for our belief. We failed, but we had compassion. And of this I am proud. Compassion.

For any individual, compassion is illogical. You sacrifice something to help someone else. Seemingly, it goes against evolution, to give up something for no return.

But of course, there is a return. Compassion strengthens the group, often in undefinable ways, often distant ways. I do for you, and you do for him, and he does for someone else, and somehow, what goes around, comes around, and the group is stronger and I am stronger.

Don’t ask me how. It just works that way. Evil tears at its own dead heart, while goodness returns its blessings a thousandfold.

I am proud to be an American, because we alone among nations, have a Statue of Liberty — LIBERTY — and we really do believe in the words inscribed thereon, “Give me your tired, your poor, your huddled masses yearning to breathe free, the wretched refuse of your teeming shore, send these, the homeless, tempest-tossed to me.”

What nation invites “poor, huddled masses” to live in its land? What nation willingly beckons to the “homeless, tempest-tossed” to come share freedom? Only America. Only America.

That American compassion is what has made us great.

I cannot tell you exactly how “wretched refuse” built, and continue to build, our mighty nation, but they did and they do. What has gone around, has come around. It seems illogical somehow, but it is the foundation of America.

I thought of this when I read an article in the right-wing Washington Times:

Majority of voters oppose free school, lawyers for illegal children

Illegal immigrant children could increase the school-age population in districts, marking a significant influx of students likely to need intense help with English and other remedial education programs.

No longer just a border problem, the surge is now an issue for officials in communities throughout the country, where 126 counties or cities have at least 50 children placed.

According to a new Rasmussen Reports poll released Wednesday, less than a third of voters say they want illegal immigrant children to be housed in their home states, and 53 percent said the children shouldn’t be allowed to attend taxpayer-supported public schools.

The Obama administration announced it would pay $9 million over two years to two nonprofit groups to provide lawyers for 2,600 of the children who have come across the border, traveling without parents.

That’s just a small fraction of the more than 66,000 who were caught between Oct. 1, 2013, and Aug. 31, 2014, but immigrant-rights advocates said it was a step in the right direction to make sure the children — whom they say are fleeing gang violence or domestic abuse in Central America — get a fair shake in U.S. immigration courts.

No American intentionally would doom that child in the orange T-shirt to a life of torture and starvation. No American intentionally would stand aloof as that little girl in the purple shirt was subjected to rape and murder.

No American would throw those children in arms, back to be eaten by poverty and misery. That is not America. It is not what Americans do.

The people who answered the Rasmussen Reports poll may be good people, but they have been misled by their leaders, who tell them the lies that America no longer can afford the compassion that has made us unique among nations.

I doubt the day ever will come when we Americans believe we no longer afford compassion.

When the chips are down, we always travel the high road. And despite the lies from our leaders, we will do the right thing. We will save these “homeless, tempest tossed” children. We will take them in our arms and protect them.

It is what we Americans do. It is what has made us great.

And that is why I am proud to be an American.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten 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 an 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. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

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

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

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

Mitchell’s laws:
●Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

●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, and the motive is the gap.
===================================================================================

Step #4 in the “10 Steps to Prosperity is “Free education (including post grad) for everyone.” This step is discussed at: Five reasons why we should eliminate school loans Thursday, May 16 2013, which I urge you to read as an introduction to today’s post.

Recently, I read a relevant article in Scientific American Magazine. Here are some excerpts:

Why Community Colleges Should Be Free
To bolster the nation’s high-tech labor pool, some higher education should come without a tuition bill Aug 19, 2014
Ross MacDonald

In May, Republican governor Bill Haslam signed a bill that will make Tennessee’s two-year community colleges and technical schools free to any high school graduate starting in 2015.

Community colleges are pillars of STEM (science, technology, engineering and mathematics) education. They train technicians for jobs in leading-edge industries and grant associate’s degrees that let students finish the last half of their higher education at a four-year institution.

While the gap in economic well-being between college graduates and those with only a high school diploma grows ever wider, community colleges serve as gateways for the underrepresented and the working class.

Nationwide, 40 percent of community college students are in the first generation of their families to attend college, more than 55 percent of Hispanics in college are enrolled in community colleges, and 40 percent of community college students hold down full-time jobs.

Tennessee is taking a baby step in the right direction, by funding two-year community colleges. Unfortunately, being monetarily non-sovereign, Tennessee must rely on its taxpayers to support this initiative.

By contrast, the Federal government is Monetarily Sovereign. It never can run short of its sovereign currency, the dollar.

So while the cash-strapped states pay for grades K-12, and Tennessee proposes going even further, the federal government steps back and tells America’s students to support grades 13-16 and beyond.

Well, there are small exceptions: For instance:

The National Science Foundation devotes more than $60 million annually to its Advanced Technological Education program, which develops curricula to immerse students, for instance, in the nuances of cell cultures and standard deviations.

Graduates of these courses go on to careers in the laboratories of Genentech and the command centers of nuclear power plants.

(Actually, according to its own web site, “The National Science Foundation (NSF) is an independent federal agency created by Congress in 1950 ‘to promote the progress of science; to advance the national health, prosperity, and welfare; to secure the national defense…’

“With an annual budget of $7.2 billion (FY 2014), we are the funding source for approximately 24 percent of all federally supported basic research conducted by America’s colleges and universities.”)

O.K., that’s another baby step — supporting research by college and universities. But it’s not enough, not anywhere near enough, as witness the massive student loan problem.

Continuing with the Scientific American article:

The Tennessee law will enable students to attend the state’s 13 community colleges and 27 technical schools tuition-free in hopes of raising the number of college graduates in the state from 32 to 55 percent by 2025. (The national average is now 42 percent.)

The program will be funded largely by lottery money and will also somewhat reduce scholarships at the state’s four-year institutions.

If a trade-off has to be made, this one may be worth it to upgrade a workforce judged in one survey to be of low quality. Other states—and the private sector—are watching closely.

Oregon has plans to make community college free, and Mississippi may try again after the death of a bill this year.

These efforts should be viewed as models for other states to emulate.

No, these efforts should be viewed as models for the federal government — the one institution having the unlimited ability to pay for college — to emulate.

Two-year college students face an obstacle course of personal and academic challenges on the path to a diploma.

Many must hold down a job or two while attending courses.

This speaks to Step #5 in the 10 Steps to Prosperity: Salary for Attending School.

Years ago, America realized that high school education was important for America. So the states and cities took it upon themselves to provide free K-12 to everyone.

Now, to remain competitive in today’s ever more sophisticated world, America needs our youth to be college educated. A high school education simply is not enough.

Yet the federal government helps discourage college education with its student loan program — a program that effectively has impoverished millions of young people.

And, partly because K-12 is funded by monetarily non-sovereign governments, that usually are short of cash, our K-12 education is lacking:

Global grade: How do U.S. students compare?
By Marian Wilde

In a recent (2006) comparison of academic performance in 57 countries, students in the United States performed near the middle of the pack. On average 16 other industrialized countries scored above the United States in science, and 23 scored above us in math.

In summary:
1. Education is the key to success in economic growth and global competition
2. American education needlessly is underfunded. The federal government should not require cities and states to pay for K-12 education, but rather should take on this responsibility.
3. The underfunding results in underpaying teachers at all levels, which in turn, discourages many of our “best and brightest” from becoming teachers.
4. The underfunding also catalyzes aggressiveness by teachers’ unions, which encourage teachers to shift their focus from education to protection and compensation. Thus good teachers can’t be rewarded and bad teachers can’t be fired.
5. The federal government should eliminate the student loan program, and replace it with full payment for college and beyond.
6. The government also should pay students’ salaries for attending school. Many young people do not finish high school, let alone attend college, simply because their families need them in the work force.

Educated young people are necessary for America’s success. We must do everything possible to encourage education.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten 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 an 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. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

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

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

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

Mitchell’s laws:
●Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

●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, and the motive is the gap.
===================================================================================

The euro nations are dying. There is one word to describe the reason: Austerity.

Actually, there are two words to describe the reason: Monetary non-sovereignty.

Here are some data.

The solid maroon line represents quarterly U.S. growth in Gross Domestic Product (GDP). The dotted blue line represents quarterly euro nation GDP growth.

Every single quarter, since the great recession, the euro nations’ GDP growth rate has been lower than the U.S. growth rate.

Here is another way to look at the same basic data:

From the recession, through the 2nd quarter ofn 2014, U.S. GDP is up about 18% while the euro area is up only about 6%.

Unfortunately, despite being Monetarily Sovereign and having total control over its own sovereign currency, the U.S. also has been practicing some form of unnecessary and harmful austerity (though thankfully, less so than the euro nations).

The U.S. limited its federal deficit spending via sequestration (i.e. the “fiscal cliff”), partly through tax increases (especially the notorious FICA tax) and reduced federal spending.

Additionally, the so-called “debt ceiling” (which was not a ceiling on debt, but rather a ceiling on payment for already existing debt), forced unnecessary budget reductions.

(In reality, payment for federal debt requires no additional dollars; it merely requires the transfer of existing dollars from T-security accounts to checking accounts. But this fact is ignored by those who welcome austerity.)

Because deficit cutting (austerity) always impacts GDP negatively, you will not be surprised by this article:

Factory Prices Tumble in Europe as German Manufacturing Shrinks Before ECB
Bloomberg By Alessandro Speciale

Euro-area factories cut prices in September by the most in more than a year and German manufacturing shrank, underlining the mounting challenge facing Mario Draghi.

The European Central Bank president is on a mission to avert deflation as the euro region’s economic landscape deteriorates. Purchasing Managers’ Indexes from Markit Economics showed manufacturing also contracted in France, Austria and Greece, with a gauge for the 18-nation region pointing to near-stagnation.

A separate report showed spillover to the U.K., with factory growth there at a 17-month low.

(Though the UK is Monetarily Sovereign, having retained the British pound, it not only acts as though it were monetarily non-sovereign by adopting austerity, but its economy is affected by the economies of its neighbors.)

The euro not only is a disaster, not only a predictable disaster, but a predicted disaster.

(“Because of the Euro, no euro nation can control its own money supply. The Euro is the worst economic idea since the recession-era, Smoot-Hawley Tariff. The economies of European nations are doomed by the euro.” RMM June, 2005)

As the euro area’s economic weakness spreads to countries in the region’s core, the ECB will face increased scrutiny tomorrow when it unveils details of an asset-purchase plan.

The fresh round of stimulus comes against a backdrop of weak inflation and stuttering growth, with geopolitical uncertainty and high unemployment weighing on confidence and demand.

It will be interesting to see who will purchase assets and which assets they will purchase. The EU itself, being Monetarily Sovereign, has the unlimited ability to supply euros to member nations. And it should do so.

Instead, it has be asking for quid pro quo, either by lending (and demanding repayment) or by asset purchases (i.e. asset takeaways), both of which impoverish the nations that are in need of help.

The EU neither needs, nor should ask for, quid pro quo. It merely should give euros to nations as needed.

It is very hard to put any positive spin” on the data, said Howard Archer, chief European economist at IHS Global Insight in London. “Clutching at straws, the best that can be said is that it indicates that the manufacturing sector is still growing.”

Euro-area manufacturing expanded at the slowest pace in 14 months, according to today’s report. The gauge stood at 50.3 in September, just above the 50 mark that divides expansion from contraction, and below a preliminary estimate of 50.5.

Europe is dying, and it either is a murder by Europe’s leaders or a suicide by Europe’s masses.

Europe’s leaders, being owned by the upper .1% income/wealth/power group murder the euro nations with austerity. Because deficit cuts always affect the poor and middle more than the rich, austerity widens the Gap between the rich and the rest.

The rich wish to widen the Gap, for it is the Gap than makes them rich. (If there were no gap, no one would be rich, and the wider the Gap, the richer they are.)

Europe’s masses, having been brainwashed by the rich-owned media, the rich-owned politicians and the rich-owned university economists, commit suicide by accepting the euro as beneficial.

Meanwhile, the euro nations voluntarily have surrendered the single most valuable any nation can have: Monetary sovereignty. They have lost control over their money. So, the euro, by its very nature, requires austerity.

Europe is dying a slow painful death — painful to the lower 99%, while the rich prosper.

The only question: Is it a murder by the rich or is it a suicide by the rest?

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten 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 an 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. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

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

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY