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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Double trouble: House GOP eyes default, shutdown
By Jim Vandehel, Mike Allen and Jake Sherman | 1/13/13
House Republicans are seriously entertaining dramatic steps, including default or shutting down the government, to force President Barack Obama to finally cut spending by the end of March.
Translation: “Cut spending” is shorthand for cut spending on Social Security, Medicare, Medicaid and other programs that help the middle- and lower-income classes. The military is one of those “other” programs as it directly employs thousands of lower paid people, and indirectly employs the thousands of workers in the industries that support the military.
Spending cuts (aka austerity) are the proven method by which the government takes money from you and widens the income gap between the rich 1% and the rest.
The idea of allowing the country to default by refusing to increase the debt limit is getting more widespread and serious traction among House Republicans than people realize, though GOP leaders think shutting down the government is the much more likely outcome of the spending fights this winter.
Translation: “If we don’t get our way, we Republicans plan to shut down the government, because that really would screw you of the lower 99%. The only question is when we’ll do it – for the debt limit fight or the spending fight.”
“I think it is possible that we would shut down the government to make sure President Obama understands that we’re serious,” House Republican Conference Chairwoman Cathy McMorris Rodgers of Washington state told us.
Translation: “Attention, middle and lower classes: We’re going to cut your noses to spite your faces. And you’re so stupid, you’ll agree with it.
House Speaker John Boehner “may need a shutdown just to get it out of their system,” said a top GOP leadership adviser. “We might need to do that for member-management purposes — so they have an endgame and can show their constituents they’re fighting.”
Translation: “We’re going to punish the poor to show the rich we’re worth the campaign money they give us. We don’t bite the hand that feeds us.”
The country would eventually default if House Republicans refuse to raise the debt limit. Obama assumes Republicans would never be so foolish as to put the economy at risk to win a spending fight. Conservatives say he’s definitely wrong on that score. They say he’s the foolish and reckless one for piling up $6 trillion in debt on his watch.
Translation: Federal deficits are the government’s method for adding dollars to the economy, which is the way the economy grows. With our large net imports taking billions out of our economy, no federal deficit = recession. Guaranteed.
Economic disaster is good for the 1%. It widens the income gap by impoverishing the 99%.
“No one wants to default, but we are not going to continue to give the president a limitless credit card.”
Translation: “We’ll keep telling the same ‘credit card’ lie, as long as you keep falling for it. You haven’t yet figured out that the federal government never can run short of money. Until you get it, we’ll just keep beating you, your wife and your worthless children down.”
The conventional wisdom is that Obama and Congress will ultimately work out a grand spending compromise that raises the debt limit, keeps funding the government and changes the $1.2 trillion in automatic “sequestration” spending cuts set to kick in on March 1.
Two top GOP officials told us Republicans are not willing to compromise on the $1.2 trillion in cuts. Right now, half the cuts target defense, half other programs. The White House not only wants to use the sequestration debate to resolve all of the spending fights — it wants to replace some cuts with tax increases.
Translation: The Republicans want to keep their promise to the 1% (to widen the gap) by shutting down the government. The Democrats want to keep their promise to the 1% (also to widen the gap) by increasing taxes on the middle and lower classes. Obama already has done his part by increasing FICA.
GOP officials said 90 percent of their members are prepared to allow the cuts to take effect, rather than compromise, based on their preliminary head counts. This seems like the most likely outcome right now.
Translation: “To hell with America. We made promises to the rich, in exchange for campaign contributions, and we intend to keep those promises. We’re honorable people. Anyway, what are you poor people going to do about it, huh?”
Boehner’s own staff has warned conservative lawmakers that deficits will soar, as interest rates rise, the markets will tumble and the economy will face catastrophe if they truly follow through on default.
Translation: “Ah, who cares. The people are sheep. They’ll do anything and believe anything we tell them. A little poverty will teach them a lesson (so long as I’m O.K.)”
Look for (Republican) members to push for an idea, crafted by Sen. Pat Toomey (R-Pa.), to cushion the effect of default by passing legislation beforehand that prioritizes the order that government bills will be paid in the event the debt limit is not increased.
Translation: “Trust us Republicans to come up with an idea that is against the law. The Impoundment Control Act of 1974 forbids the President from not spending (“impoundment”)what the Congress has authorized, without approval of both houses of Congress.
“We plan to blame the Democrats for not spending what we have authorized, because we want to decrease spending. Think about it and tell me if you understand what I just said.”
Chris Chocola, president of the conservative Club for Growth: “What’s more irresponsible: continuing on this path to fiscal ruin, or changing the path?” he said. “There is a high level of frustration, and a willingness to do something dramatic. They think this is the only way to get Obama’s attention.”
Translation: “It goes like this. Sure, we know the federal government is different from you and me. It even is different from state and local governments. How? It alone never can run short of money, so there never can be ‘fiscal ruin.” But “fiscal ruin” is just our phony argument to brainwash you, the public, and so far, you have proven ignorant enough to buy it.
“Our real goal is to keep collecting campaign money from the rich, who want to push you and your family down as far as possible. We don’t care what disasters befall you – in fact we welcome those disasters — so long as our own jobs are safe.”
By now the stock market should have gone into free fall. But sane people have trouble believing politicians claiming to be patriots, and elected to help the economy, intentionally would cause a depression.
We disagree. We now regard Michele Bachmann, Donald Trump, Wayne LaPierre, Herman Cain and Rush Limbaugh as among the less crazed Republican “patriots,” (who, by the way, plan to destroy America.) There actually are Republicans far more damaging.
And, you believe what they tell you.
Back in Chicago, we call you “chump.”
Rodger Malcolm Mitchell
Monetary Sovereignty
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Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports
#MONETARY SOVEREIGNTY
#Monetary Sovereignty - Mitchell 