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Do you understand how the checks clear in the US banking system? Do you understand that the federal government is the issuer of the currency? Do you understand that the government's deficit is directly equal to the non-government surplus
? Do you understand that the government's deficit floats per the savings demands
of the non-government? Do you understand that US Treasury interest rate payments are a policy variable
? Do you understand that federal taxes regulate demand
, and they don't give the federal government the funds it needs to spend? Do you realize that the federal government must spend the dollar first for us to pay our taxes or buy government securities
? Do you understand that the limits are on the real side of the economy, not the financial side
? Do you understand that a spending cut is like raising taxes
? Do you understand that we have a jobs crisis
, not a deficit crisis? Do you understand that we are the real net-beneficiaries of current trade "imbalances"? Do you understand that banks create deposits with loans
, and government debt is the equity
that supports the private credit structure? Do you understand that oil prices are the main driver of inflation? And that deregulation of oil commodities markets is the main driver of rising costs at the pump? Do you understand that Medicare and SSI are completely sustainable
? And that we should increase and add to those programs? Do you understand that involuntary unemployment is the product of government not spending enough for us to pay our taxes and save what we try to save? Do you understand that President Reagan was the greatest Keynesian president of all time
? Do you understand that in 1981 his economic adviser, ex-Cato chairman, and leading libertarian, William A. Niskanen said a.) "The simple relationship between deficits and inflation is as close to being empty as can be perceived”; b.) “There are no necessary relationships between the deficit and money growth”; and c.) “Evidence doesn’t support” the assertion that deficits crowd out private borrowers.? Do you understand that Reagan closed down and arrested more fraudsters than you have
? Do you understand that attempting to cut the deficit now will likely guarantee another recession and larger budget deficits?
Mr. President, if you go through with your Grand Bargain, you will destroy this economy. You will destroy your party's chances in 2014 and 2016, and your legacy will be our ruin. Mr. President, WE DEMAND AGGREGATE DEMAND
! Now's the time to outflank your Republican adversaries by calling for the largest tax cut in American history, by demanding an end to the REGRESSIVE FICA payroll tax. Right now, even to many of your supporters, you look like the captive prisoner or errand boy of neoliberal special interests.
Either way, that's not what the American people want or need. Right now, they want and need jobs, and for that to happen, we need more net-spending by government. For a given sized government and credit expansion, there's a rate of taxation that corresponds with full employment. That means, depending on your politics, we need more government spending or a demand side tax cut. Deficit reduction measures take us in the wrong direction.
Mr. President, THE DEFICIT IS NOT HIGH ENOUGH!
Break out of the box that precludes our government from doing the right thing. Fight for full FICA payroll tax relief and increasing SSI benefits.
"Too Late, All Gone"-How To Destroy Angels