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Astroturf Art V convention in Dallas July 4 to pass a Balanced Budget CON Amendment

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    Sound the alarm.

    This is a well funded corporate astroturf movement trying to pass a Balanced Budget Constitutional Amendment.

    Basically, they want to give the states veto power over the federal government's deficit spending.

    This would add a whole other layer of government (and a Republican dominated one) to the budget process.

    It's moronic considering that the federal government's deficit is endogenous, which would thus require innumberable state legislative resources to manage on a constant basis.

    My allies in Occupy Dallas and other out of state OWS affiliated groups are planning to protest this convention.

    UMKC's Dr. Stephanie Kelton and Warren Mosler have pledged to come to Dallas to help us fight this from a place of reason.

    In the 90s, considerable effort was put towards passing a BBA, and it nearly succeeded.

    But the fact is, the goverment's deficit is the equity of those that use the currency.

    Government deficit=non government surplus

    Please see this net-sectoral financial balance chart: (link).

    Plainly obvious what these people would like to see cut: SSI, Medicare, Medicaid, Obamacare, and all government outside of the military industrial complex and corporate subsidies. And they want regressive tax increases on the lower classes and tax cuts for the rich.

    I don't see these people succeeding, but it would create noise that would hurt the Democrats, especially if Democrats can't answer the fundamental question: how are we going to pay for the government that we want to support the society that we want to live in?

    The answer does not come intuitively.

    1. Federal taxes regulate demand, i.e. our spending. They don't pay for anything.

    2. The Federal government has to spend the dollar first in order for us to acquire it to pay our taxes.

    3. The difference b/n what government spends and taxes is what the users of the currency can save in aggregate.