Mitchell’s laws: Reduced money growth never stimulates economic growth. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity breeds austerity and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
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Hide your wallet. The idiot patrol (aka The Committee for a Responsible Federal Budget) is on the loose, again.
Committee for a Responsible Federal Budget | 1899 L Street, Suite 400 | Washington | DC | 20036
House and Senate Join Together in “Go Big” Effort November 16, 2011Today, in a rare bipartisan, bicameral showing, Republican and Democratic members of the House and Senate joined together to call for the Super Committee to think big on debt reduction. In recent weeks, 100 members of the House and 45 senators from both sides of the aisle have urged the Super Committee to propose at least $4 trillion in savings over ten years, well above the Committee’s $1.2 trillion mandate.
“If it wasn’t clear before that there’s a serious bipartisan and bicameral effort in support of a $4 trillion savings package, then it is now,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. “What the Super Committee is working on by putting everything on the table in search of a compromise is so important, and those 12 lawmakers should know that they are supported by a large group in the House and Senate on both sides of the aisle.”
Today’s renewed support for a Go Big approach to debt reduction comes as the 12 members of the Super Committee enter the final days of negotiations. The Committee has until November 23 to vote on a final package of reforms.
“It’s up to the Super Committee and leaders in Congress to heed the calls that so many of their colleagues are making and to capitalize on this unique opportunity of a fast-track process and the undivided attention of the American public,” added MacGuineas. “But this group of lawmakers is not alone — there are business leaders, small business owners, everyday Americans, former government officials, economists, policy experts, and many others also supporting this effort to ‘Go Big.’ This is such an important moment, and with the world watching, failure just cannot be an option. Getting a big deal passed may actually prove to be easier from a political perspective, and it has the added benefit of being what we need to do for the fiscal and economic health of the nation.”
Hey, you call $4 trillion “big”? That’s nothing. Why not $10 trillion? Or $20 trillion? Why not really bankrupt the nation?
But, I continue to fret about one small question. I almost hate to mention it, but: How do deficit cuts reduce unemployment or grow the economy? We never see any answers to that question.
As a reminder, here are charter members of the idiot patrol: Bill Frenzel, Jim Nussle, Tim Penny, Charlie Stenholm, Maya MacGuineas, Barry Anderson, Roy Ash, Erskine Bowles , Charles Bowsher, Steve Coll, Dan Crippen, Vic Fazio, Willis Gradison, William Gray, III, William Hoagland, Douglas Holtz-Eakin, Jim Jones, Lou Kerr, Jim Kolbe, James McIntyre, Jr., David Minge, June O’Neill, Paul O’Neill, Marne Obernauer, Jr., Rudolph Penner, Peter Peterson, Robert Reischauer, Alice Rivlin, Chuck Robb, Martin Sabo, Alan Simpson, John Spratt, Gene Steuerle, David Stockman, John Tanner, Laura Tyson, George Voinovich, Paul Volcker, Carol Cox Wait, David M. Walker, Joseph Wright, Jr.
At some point in the future, they all will deny having any association with the idiot patrol, and will admit that cutting the money supply to stimulate economic growth is like applying leeches to cure anemia.
Five dunce caps, not just for failure to understand Monetary Sovereignty, but for ignorantly lending their names to an organization whose efforts could help destroy our nation:
That brings to 1083 the total dunce caps awarded. Soon, I expect members of the idiot patrol to demand I “go big” by reducing my unsustainable dunce cap awards.
Rodger Malcolm Mitchell
http://www.rodgermitchell.com
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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. The key equation in economics: Federal Deficits – Net Imports = Net Private Savings
MONETARY SOVEREIGNTY
Help! I just received yet another Email from the idiot patrol (aka Committee for a Responsible Federal Budget). It said:
Since by definition, federal spending is one part of GDP (GDP = government spending + private consumption + gross investment + net exports), how would a reduction in federal deficits strengthen the economy, while improving business and market certainty and reducing the risk of fiscal crisis?
Let’s be clear: Reducing federal debt reduces the money supply. Period. So how does reducing the money supply help our economy?
Could someone please tell these people to learn Monetary Sovereignty.
Rodger Malcolm Mitchell
“Why not really bankrupt the nation?”
You’ve pinpointed the cruel irony of the situation. They actually think they’re saving us from bankruptcy.
Rodger,
You should think of yourself as doing what Martin Luther (1483 – 1546) did to the Church (reformation). The global banking cartel is just as powerful. Prominent orthodox economists are priests on their payroll or at least too scared to speak up.
This stuff is not that hard to get. Keynesian Economics + MMT + MS are all very clear and consistent. I find it very hard to accept that prominent economists and president’s advisers are that stupid.
http://aquinums-razor.blogspot.com/2011/11/here-is-how-bankers-game-works.html
Mansoor H. Khan
As Einstein may have said: there are only two things that can be infinite, the universe & human stupidity, and I am not sure about the universe.
Most of those people really are just that stupid. They see other monkeys raving insanely & monkey see, monkey do. Arch-terrorist Peterson – pretty sure that he knows he’s lying. Alice Rivlin – been around almost as long -& once understood real economics well – but has either gone insane or senile but probably not lying. The rest – well either they don’t give a damn about what is true or not, but just like inflicting pain on working people – Alan Simpson. But mostly, aptly enough for a committee with a Jim Jones on it, they’ve drunk the Kool-Aid. If a guru told them to, that’s what they’d do. This sort of person is not capable of thought. Outside their Beltway / Wall Street cocoon, if they ever had to work to survive, they would starve.