by Rodger Malcolm Mitchell, www.nofica.com
THE GAP actually is a series of income/wealth gaps between the very rich, the rich, the not-so-rich and down the line to the very poor.
Every income/wealth group wants the gaps below them to widen and the gaps above them to narrow. For the very rich, all gaps are below them, so general gap widening is the goal.
The GAP is what makes the rich rich, for without the GAP no one would be rich, and the wider the GAP, the richer they are. So it is the GAP, not just income, that is of primary importance to the very rich.
It is the very rich who run this and all nations, by bribing politicians (via campaign contributions and promises of lucrative employment later), “bribing” the media (via ownership) and bribing economists and other thought leaders (via contributions to universities and “think” tanks).
The ever-widening GAP is the single most serious problem in all of economics.
The rich have a simple plan for widening THE GAP: Claim that the central government cannot afford to provide benefits to the lower income groups, so these benefits must be reduced, reduced, reduced. This is known as the BIG LIE.
Here is one example of how Australia puts the BIG LIE into practice.
Australia Considers Cuts to Rein in Second-Smallest Debt
By Benjamin Purvis and Candice Zachariahs May 1, 2014Australia may sell assets and cut welfare spending to rein in a debt burden that is already the second-smallest among developed nations.
Australia is Monetarily Sovereign. It has the unlimited ability to create its own sovereign currency. So there is no debt “burden.”
Nevertheless, this mythical “burden,” despite being the “second smallest among developed nations,” provides sufficient excuse to continue widening THE GAP.
Australia will sell government assets to rich people at low prices. And, of course, Australia will continue to cut spending that benefits the poor — a perfect one-two punch that will reward the rich and punish the rest.
Australian Treasurer Joe Hockey will deliver his first budget on May 13 — Recommending savings of as much as A$70 billion ($65 billion) a year within a decade. The independent body, led by former Business Council of Australia President Tony Shepherd, wants the government to commit to achieving surpluses over the economic cycle.
former Business Council of Australia President Tony Shepherd, wants the government to commit to achieving surpluses over the economic cycle.
Translation: The Australian government not only will take money from the poor, but will take so much money out of the economy that an inevitable recession will cause massive unemployment and hardship. The rich then will be able to pay less to a larger selection of unemployed, desperate servants.
The government should sell off rail and postal assets, cut family welfare payments and make changes to age pensions and unemployment benefits, the report advised.
The Treasurer announced today that the government would raise the eligibility age for the state pension to 70 by 2035. It now stands at 65 and is scheduled to increase to 67 by 2023.
“The age pension expenditure today is currently more than what we spend on defense,” Hockey said at an event in Melbourne. “This is about the long-term sustainability of our system.”
Translation: The rich will buy rail and postal assets at a steep discount, then immediately raise prices. Not-rich families will pay more and receive less.
“Sustainability” is the magic word of the BIG LIE, since it pretends that somehow a Monetarily Sovereign government can run short of its sovereign currency.
Hockey said while he was not planning to implement an austerity budget, the fiscal strategy would be prudent and underpin the productive capacity of the economy.
See, it’s like this. Cutting benefits is not austerity. It is . . . er, uh . . . “prudence.” And by some mathematical magic (don’t ask how), reducing the nation’s money supply (i.e. running a surplus) will “underpin” (?) the economy’s productive capacity.
As everyone knows, to cure anemia you must apply leeches and bleed the patient. Right?
The Treasurer announced today that the government would raise the eligibility age for the state pension to 70 by 2035. It now stands at 65 and is scheduled to increase to 67 by 2023.
Translation: Eventually, the not-rich will be told to work until they drop. The ultimate goal is zero pension and zero welfare spending. That would make for a perfect slave class.
As long as the people are ignorant enough to believe the bribed government’s BIG LIE, the rich will continue to push the people down, down, down.
Until the populace realizes what is being done to them, turns back and cries, “Let there be guillotines.”
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Nine Steps to Prosperity:
- Eliminate FICA (Click here)
- Medicare — parts A, B & D — for everyone
- Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
- Long-term nursing care for everyone
- Free education (including post-grad) for everyone. Click here
- Salary for attending school (Click here)
- Eliminate corporate taxes
- Increase the standard income tax deduction annually
- Increase federal spending on the myriad initiatives that benefit America’s 99%
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10 Steps to Economic Misery: (Click here)
- Maintain or increase the FICA tax.
- Spread the myth Social Security, Medicare and the U.S. government are insolvent.
- Cut federal employment in the military, post office, other federal agencies.
- Broaden the income tax base so more lower income people will pay.
- Cut financial assistance to the states.
- Spread the myth federal taxes pay for federal spending.
- Allow banks to trade for their own accounts; save them when their investments go sour.
- Never prosecute any banker for criminal activity.
- Nominate arch conservatives to the Supreme Court.
- Reduce the federal deficit and debt
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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
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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.
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