Save us from our friends: “Social Security Works.org” edition Monday, Feb 8 2016 

LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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There exists an organization called SOCIAL SECURITY WORKS. They oppose cuts to Social Security. They are our friends.

Heaven help us.

Here are direct quotes from their website:

Social Security belongs to the workers and their families who have worked hard, paid taxes in, and earned its benefits.

Not really. The taxes workers paid did nothing to earn SS benefits. Federal taxes do not fund federal spending. Our Monetarily Sovereign government creates dollars, ad hoc, when it pays bills.

The payment of Social Security benefits creates dollars; the payment of FICA destroys dollars. We could have either one without the other.

Social Security did not cause the federal deficit, and its benefits should not be cut to reduce the deficit.

This depends on how the accounting is viewed. Under some accounting, Social Security and Medicare are viewed separately from other budgeting. But considered as a whole, federal deficits merely are the differences between total tax collections and total spending.

In that view, the Social Security program has reduced the deficit, but is projected to increase the future deficit.

Left unsaid is the fact that federal deficits are economically stimulative and are necessary for a growing economy. It’s federal surpluses that are economically depressive.

The federal government found the money to bail out Wall Street; it must find the money to pay what it owes to Social Security.

The federal government pays all its debts by creating dollars. It doesn’t need to “find the money.” It never has defaulted. So IF it “owed” Social Security anything, it would pay. But any “owing” merely is accounting gimmickry.

Today’s and tomorrow’s beneficiaries – children, people with disabilities, widows, widowers, and retired workers – deserve no less.

In this, Social Security’s 75th Anniversary year, we are united in support of the following principles:

Social Security has a surplus of $2.6 trillion, which it has loaned to the federal government.

To date, the people, in paying FICA, have paid the federal government more than the government has paid to the people. This has subtracted dollars from the economy and so, has been recessive.

The notion of the right pocket “lending” to the left pocket is phony accounting. The federal government, being Monetarily Sovereign, does not borrow dollars. It does not need to. It creates dollars at will.. So called “borrowing” is nothing more than deposits in T-security accounts at the Federal Reserve Bank.

Social Security did not cause the federal deficit. Its benefits should not be cut to reduce the deficit.

Already discussed.

Social Security, which has stood the test of time, should not be privatized in whole or in part.

Not sure what the “test of time” refers to, but SS should not be privatized. Privatization would destroy the fundamental purpose of Social Security: Safe, reliable benefits.

The rich want to privatize Social Security so Wall Street can profit from your money, thereby guaranteeing more for the rich and less for the rest.

Social Security is insurance and should not be means-tested. Because workers pay for it, they should receive it regardless of their income or savings.

Workers don’t pay for it, but that’s not the reason SS shouldn’t be means tested. Means testing opens the door to complications and unfairness similar to the means testing complications and unfairness inherent in the U.S. tax code. Inevitably, there would be exceptions based on changing definitions of “means.”

Social Security is fully funded for more than 25 years; thereafter it has sufficient funds to meet 75 percent of promised benefits. To reassure Americans that Social Security will be there for them, Congress should act in the coming few years outside the context of deficit reduction to close this funding gap by requiring those who are most able to afford it to pay somewhat more.

The above was based on the false premise that FICA funds Social Security. To reassure Americans that Social Security will be there for them, Congress should tell the truth about Monetary Sovereignty, and the government’s unlimited ability to fund Social Security. Collecting FICA does not change that unlimited ability.

Social Security’s retirement age, already scheduled to increase from 65 to 67, should not be raised further. That would be a benefits cut that places the greatest hardship on older Americans who are in physically demanding jobs, or are otherwise unable to find or keep employment.

Social Security Works should not be satisfied to ask that there be no increases in the retirement age. They should ask that the retirement age be reduced.

Social Security, whose average benefit is $13,000 in 2010, provides vital protection against the loss of wages as the result of disability, death, or old age. Those benefits should not be reduced, including by changes to the cost of living adjustment or the benefits formula.

Social Security’s benefits should be increased for those who are most disadvantaged. The benefits, which are very important to virtually all workers and their families, are particularly crucial to those who are disadvantaged.

The benefits should be increased for everyone. For the same reasons “Medicare for All” is a worthwhile goal, so is “Social Security for All.”

Both provide the same function: Putting dollars into the hands of the populace.

Social Security Works has their heart in the right place, but not their head. Because they do not understand Monetary Sovereignty, their arguments easily can be countered by the question, “Where will the money come from”?

It’s a question that relies on a false premise, but unless SSW understands that, they always will be reduced to begging on the basis of morality while being defeated on the basis of affordability.

On balance, the Social Security Works dissemination of the false, financial narrative does more harm than good.

Save us from our friends.

Rodger Malcolm Mitchell
Monetary Sovereignty

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PLEASE HELP US GET THE WORD OUT
LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

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Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually Click here
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.
========================================================================================================================================================================================================================================================================================================

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK

Recessions begin an average of 2 years after the blue line first dips below zero. There was a dip below zero in 2015. Recessions are cured by a rising red line.

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..

Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between rich and the rest..
•Austerity is the government’s method for widening
the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY

How the Rich Use the Big Lie to Cheat You: Chapter II: The Debt Friday, Feb 5 2016 

LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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In the previous chapter, “The Dollar,” we saw how the US dollar is not a physical entity, but rather is nothing more than an accounting notation — i.e. numbers in an account. Unlike physical objects, numbers have no limit. The government never can run short of numbers.

We also saw that dollars are debts of the US and that the value of any debt is supported by its collateral. While gold and silver often have been part of the collateral for the US dollar, today (as of August 15, 1971) the collateral for the dollar solely is the full faith and credit of the US government.

The word “debt” has powerful, yet ambiguous emotional connotations. For most people, “owing debt” seems financially dangerous, while “paying off debt” seems financially prudent. Yet, among house mortgages, auto payments and credit cards, the vast majority of us “owe debt,” and this includes even the richest 1% of us.

If you are a lender, you own debt. If you own a bank savings or checking account, or a bank CD, or a T-bill, T-bond or T-note you are a lender.

Your bank owes you the dollars deposited into your savings or checking account or CD. They are debts of your bank. They are the way banks do business.

Though deposits are bank debts, banks boast about the amounts of their deposits. As a rule, the bigger the bank, the greater the deposits, the more debt. You seldom will read or hear any concerns about the amount of debt (i.e. deposits) a bank has, and in fact, the term “debt” seldom is used.

One way to lend to your bank is by making a deposit in your checking, savings or CD account. The total amount deposited in US banks is $12 trillion. This is the amount banks owe to their depositors.

Though these accounts constitute bank “debt,” no one other than an accountant calls it “debt.” Everyone refers to it as “deposits.”

As a depositor, you continue to own the dollars you deposited (Otherwise, they would be a gift, not a debt.) And the bank owns those dollars, too, which it invests for profit. By depositing, i.e. by lending to the bank, you increase the supply of dollars in the economy.

The evidence for your ownership of those dollars might be your passbook or online numbers in your account.

To lend to the US, you can buy a T-bond, T-note or T-bill, that is, you can make a deposit in your T-security account at the Federal Reserve Bank. The total of those deposits is $19 trillion, or said another way, the total US debt is $19 trillion.

In short, the US debt is nothing more than the total of deposits in the FRB.

Buying a T-bond is much like buying a bank CD, and having your T-bond “paid off” is much like having your bank CD paid off. In both cases, a bank (FRB or private bank) debits your bank account and credits your checking account. NO ADDITIONAL DOLLARS NEEDED

Knowing that federal “debt” is simply the total of deposits in T-security accounts at the world’s safest bank, the FRB, what do you make of this web site: fixthedebt

The Era of Declining Deficits is Over
January 27th 2016

The Already Unsustainable Debt Path Is Now Much Worse

The official budget and economic forecast from the nonpartisan Congressional Budget Office shows that the era of declining deficits is over.

–The deficit will stop declining this year and start growing again.
–Trillion-dollar deficits will return by 2022.
–The national debt will grow by more than $10 trillion over the next decade.

Irresponsibility in Washington Is a Chief Culprit in the Worsened Outlook

–Last year, Congress added over $1 trillion to the projected debt in 2026 by passing unpaid-for tax breaks and Medicare spending increases.
–Failure to follow the “pay-as-you-go” law that requires paying for new policies is responsible for roughly half of the deterioration of the country’s fiscal outlook from last year.
–If policymakers continue to act irresponsibly, instead of taking positive action to get the debt under control, the debt projections will be much worse. This could add an additional $1.4 trillion to the debt, making it reach 91 percent of the economy by 2026.

Well, that’s pretty ominous: “Unsustainable, act irresponsibility, deterioration of the country’s fiscal outlook, 91 percent of the economy.”

Before we analyze the validity of these warnings, consider the two luminaries who founded fixthedebt: The notorious Erskine Bowles and Sen. Alan Simpson, Co-Chairs of the National Commission on Fiscal Responsibility and Reform

They suggested balancing the federal budget by taking huge cuts out of Social Security and Medicare, while “broadening the tax base” (i.e. taxing the lower income groups more.) The upper 1% income groups loved it, as did the media, economists and politicians.

The ominous warnings are not new. We published a post showing how, as far back as 1940, and undoubtedly further back than that, the federal debt was referred to as a “Ticking Time Bomb.”

Seventy-five years have passed since that warning. The federal debt has risen from just $42 billion to an astounding $14 trillion — and the “time bomb” still is ticking.

At what point do we begin to understand that the warnings are bogus? Personally, I would be embarrassed to predict disaster for 75 years, only to be proven wrong again and again. Apparently, the fixthedebt folks don’t feel shame.

They use the word “unsustainable” to describe the federal debt and deficit, but they never explain what they mean.

Do they mean the federal government will run short of dollars to service its so-called “debt”? No, I’ve never seen them write that; they know our Monetarily Sovereign, federal government is not like state, county, city and euro nation governments.

Those governments can run short of the currency they use. The federal government cannot run short of its own sovereign currency.

What evidence is provided by “fixthedebt? I found these statements on their website:

The long-term growth in the debt will be largely driven by rising health care costs and an aging population. Nearly half of the projected increase in total spending from 2016 to 2026 is for Social Security and Medicare.

Rising debt will impede economic growth and impair the standard of living for Americans.

Ever-growing levels of debt threaten citizens’ and families’ economic well-being in a number of ways. A large debt:

–Hurts wages and jobs
–Makes borrowing more expensive for important investments
–Harms our children
–Threatens the safety net
–Risks a real crisis
–Prevents us from growing the economy

With the proposed “cure”: Cut Social Security and Medicare benefits, you are supposed to believe this will not “impair the standard of living for Americans.”

Actually, it won’t impair the standard of living for rich Americans.

Here’s a bit more:

As the government continues to issue more and more debt, the debt “crowds out” productive investments in people, machinery, technology, and new ventures.

This is the old, nonsensical, “crowds-out,” mantra. Federal deficit spending adds dollars to the economy. How can adding dollars by purchasing goods and services from the economy and by putting more dollars into people’s pockets “crowd out” investments?

Quite the opposite, federal deficit spending is stimulative. It is the method by which the federal government frees us from recessions and depressions. The Great Depression was cured with the deficit spending of WWII. The recent Great Recession was ended with stimulative deficit spending.

Growing national debt can drive up interest rates throughout the economy, leading to higher interest payments on mortgages, car loans, student loans, and credit card debt. Although rates are currently low—due mainly to the weak economy and temporary efforts by the Federal Reserve to keep them down — they will most certainly rise as the economy recovers, and they will rise much higher if debt continues to grow.

Completely backwards. The national debt has been growing for 75+ years and until recently, interest rates began at zero.

They have gone up a bit now, not because of the debt, but because the Fed increased them. Even fixthedebt admits the Fed, not the debt, controls interest rates.

And note that phrase, “as the economy recovers.” Fixthedebt predicts terrible effects from a rising debt, while simultaneously predicting the economy will recover!

Growing national debt means that the government must pay higher interest payments to service that debt. The nonpartisan Congressional Budget Office projects interest costs will more than triple from about $250 billion in 2016 to more than $800 billion in ten years.

By 2030, 100 percent of the revenue we collect will go toward interest payments and mandatory spending. That leaves little room for important priorities and investments such as national defense, education, infrastructure, low-income support, and basic research.

This is based on the false premise that federal taxes pay for federal spending. If taxes paid for spending, there would be no deficit. So what fixthedebt seems to be saying is, the sale of T-securities (i.e. debt) limits the government’s ability to spend on priority items.

Of course, we know that isn’t true, because the federal government pays its bills by creating dollars ad hoc, and never can run short of dollars. So its ability to spend cannot be limited.

Further, do you remember the Fed’s Quantitative Easing (QE) program? It was a program in which the Fed purchased securities from the private sector.

During QE, the Fed purchased $3.5 TRILLION worth of debt, and now owns close to $4.5 TRILLION in debt.

Where did the Fed get the $4.5 trillion to take that much debt off the market? It’s the government’s bank. As such, it’s ability to create dollars is limited only by its ability to press computer keys. That is the meaning of Monetary Sovereignty.

And those T-securities continued to earn interest; the Fed paid the U.S. Treasury nearly $500 million in interest over the past six years.

Because dollars are infinitely available to the federal government, money freely moves from the left-hand pocket (the Fed) to the right-hand pocket (the Treasury) and back again.

The trustees who oversee Social Security and Medicare estimate both are on a road to insolvency. Social Security’s Disability Insurance trust fund will become exhausted in 2022, and Medicare’s Hospital Insurance trust fund will be exhausted in 2030.

Here again, fixthedebt pretends the US is not Monetarily Sovereign and can run short of its own sovereign currency — the basic element of the Big Lie. Because Social Security and Medicare are federal agencies, they can run short of dollars only if Congress and the President will it.

Failure to get the national debt under control could precipitate a crisis where investors are no longer willing to loan money to the government at affordable rates.

Two lies in one sentence: First, when it comes to the federal government all rates are “affordable.” Second, because the government cannot run short of dollars, it never needs to borrow or rely on investors.

Finally, fixthedebt describes itself as “nonpartisan.” This is a popular ploy, to give legitimacy to a questionable group. Fixthe debt is about as nonpartisan as the Republican National Committee, and about as truthful.

In short, concerns about a non-existent, but never-ending, imaginary debt crisis, constitute a pack of lies and misleading statements, which together form the Big Lie.

We discussed the lies, misstatements and misleading comments found on the fixthedebt website, but there are dozens of such sites, mostly supported the by the richest .1% of us.

Most of them confuse federal deficits (the difference between taxes and spending) with federal debt (the total of T-security accounts at the Federal Reserve Bank). It is possible to have federal deficits without federal debt (Don’t sell T-securities), and it is possible to have federal debt without federal deficits (Sell T-securities even when taxes equal spending).

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Next, we will discuss the question of motive: Why do so many politicians, media and university economists tell the Big Lie.

Rodger Malcolm Mitchell
Monetary Sovereignty

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Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually Click here
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.
——————————————————————————————————————————————

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK

Recessions begin an average of 2 years after the blue line first dips below zero. There was a dip below zero in 2015. Recessions are cured by a rising red line.

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..

Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between rich and the rest..
•Austerity is the government’s method for widening
the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY

How the Rich Use the Big Lie to Cheat You: Chapter I: The Dollar Thursday, Feb 4 2016 

LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

============================================================================================================================================================================================================================================================

Chapter I: The Dollar

For billions of years in the history of the universe and for thousands of years in the history of the human species, there was no United States and there were no US dollars.

Native Americans first arrived on this continent about 15,000 years ago, but still there was no United States and no US dollars.

By the year 1770, mostly European immigrants had established 13 colonies, and in 1776, delegates from these colonies met in a Continental Congress to create the United States of America.

The nation they created is not a physical entity; it is a legal entity, created from thin air.

Yes, the USA has those spacious skies, amber waves of grain, purple mountain majesties, and fruited plains, but that is not what was created in 1776. Being only a legal entity, and not a physical entity, the “USA” created in 1776, cannot be seen, tasted, smelled, touched or heard.

The sovereign United States of America, like all nations, was created from thin air — by an arbitrary collection of laws — written by men.

Like all nations, the newly created US needed some form of money, so the founders decided to create their own sovereign currency rather than using some other nation’s money (unlike the cities, counties, states and euro nations, which do not use their own sovereign currency). The founders decided to pass laws that made the USA Monetarily Sovereign.

From 1775 to 1779, the Continental Congress created from thin air, and issued, $241,552,780 worth of Continental Currency.

Why $241,552,780? It was just the total of eleven different printings. The Congress had the power to create, from thin air, more Continental dollars or fewer, as it chose, merely by interpreting existing laws and by passing new laws. The Congress was sovereign over its currency.

Because there is no limit to what laws can dictate, there was no limit to the number of Continental dollars the Congress could create.

Congress appointed Robert Morris to be Superintendent of Finance of the United States in 1782. Morris advocated the creation of the first financial institution chartered by the United States, The Bank of North America.

Like the United States itself, the Bank of North America was created from thin air, by the passage of arbitrary laws. It was a legal, not a physical, creation.

On August 8, 1785, the Continental Congress of the United States authorized the issuance of a new currency, the US dollar. The Coinage Act of 1792 established the dollar as the basic unit of account for the United States.

Thus, the US dollar exists, not in any physical form, but only as an accounting term.

The US itself, the Bank of North America, and the US dollar, are not physical entities. They are legal entities, created from thin air by arbitrary laws. While the amount and form of a physical entity are limited by many physical factors — production, supplies, shipping, etc. — a legal entity is limited only by laws.

Like the US, the US dollar cannot be seen, tasted, smelled, touched or heard.

The dollar bill in your wallet is not a dollar. That piece of paper is just the title — evidence of ownership — to a dollar. Just as a car title is not a car and a house title is not a house, a dollar bill is only evidence you own a dollar.

Tear that paper in half, and you do not own two half dollars. Change the appearance — the size, color or words — of that piece of paper and it may continue to represent the same dollar, so long as the laws say so. A dollar bill, a check for one dollar, a wire transfer of a dollar, a savings account passbook showing a balance of one dollar, all are legal representations of that same US dollar.

Not only did arbitrary laws create the dollar, but arbitrary laws created the value of the dollar.

Not understood by the public is the fact that every form of money is a form of debt. And the value of any debt is based on its collateral, so every form of debt/money is backed by collateral.

The collateral for today’s dollar is the full faith and credit of the US government.

“Full faith and credit” may sound nebulous to some, but it actually involves certain, specific and valuable guarantees, among which are:

A. –The government will accept only U.S. currency in payment of debts to the government
B. –It unfailingly will pay all it’s dollar debts with U.S. dollars and will not default
C. –It will force all your domestic creditors to accept U.S. dollars, if you offer them, to satisfy your debt.
D. –It will not require domestic creditors to accept any other money
E. –It will take action to protect the value of the dollar.
F. –It will maintain a market for U.S. currency
G. –It will continue to use U.S. currency and will not change to another currency.
H. –All forms of U.S. currency will be reciprocal, that is five $1 bills always will equal one $5 bill.

The full faith and credit of the fledgling US was insufficient to give the early dollar enough value, so additionally the dollar was collateralized by gold and silver:

In the early 19th century, gold rose in relation to silver, resulting in the removal from commerce of nearly all gold coins, and their subsequent melting. Therefore, in the Coinage Act of 1834, the 15:1 ratio of silver to gold was changed to a 16:1 ratio by reducing the weight of the nation’s gold coinage.

This created a new U.S. dollar that was backed by 1.50 g (23.22 grains) of gold. However, the previous dollar had been represented by 1.60 g (24.75 grains) of gold. The result of this revaluation, which was the first devaluation of the U.S. dollar, was that the value in gold of the dollar was reduced by 6%.

More recently, (in the Bretton Woods Agreement negotiated after World War II) the dollar was arbitrarily collateralized by 0.888671 grams of gold (plus the full faith and credit of the US government).

Then, on August 15, 1971, the laws were changed yet again, and the value of the debt known as “the US dollar,” no longer was partly collateralized by gold, but only by the US government’s faith and credit.

In summary: We repeatedly have used the phrase, “from thin air,” to emphasize the non-physical status of the US dollar. Being non-physical, and existing only because of non-physical laws, the US dollar is under the total control of the US government.

The existence of the US, and the existence of the dollar, and the total of outstanding dollars, and the value of each individual US dollar was and is controlled by our laws, which the federal government arbitrarily can change at any time, without limit.

So long as the federal government does not run short of laws, it cannot unintentionally run short of US dollars, nor have its dollar forced into an unintentional loss of value (aka “inflation”).

Next, Chapter II will discuss why America’s absolute sovereignty over the US dollar (Monetary Sovereignty) is important to you.

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Help us teach this to America
LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

=====================================================================================================================================================================================================================================================================================================

Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually Click here
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.
——————————————————————————————————————————————

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK

Recessions begin an average of 2 years after the blue line first dips below zero. There was a dip below zero in 2015. Recessions are cured by a rising red line.

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..

Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between rich and the rest..
•Austerity is the government’s method for widening
the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY

Football, Tobacco, Guns and Taxes: What Do They Have in Common? Sunday, Jan 31 2016 

LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL
Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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Football, Tobacco, Guns and Taxes: What Do They Have in Common?

I. FOOTBALL:

I just saw an excellent movie, “Concussion.” It tells the story of Dr. Bennet Omalu who discloses the facts about serious brain damage, madness and early death in football players who suffer repeated concussions. The disease is called “chronic traumatic encephalopathy (CTE)”

According to the film, the National Football League long had known about the problem, but it and attempted to squelch any revelation, to the point of bribing the FBI to threaten Dr. Omalu with deportation.

Not only were the wealthy football owners angry at the doctor, but the fans and the football players themselves were in a state of angry denial. They wanted to accept the NFL’s lies, even while people were suffering and dying.

Today, the NFL has been dragged, kicking and screaming, into its “concussion protocol.” Any player who seems to be hit hard enough to sustain a possible concussion, is examined by a doctor, who determines whether the player is fit to return to the game.

If the player is deemed unfit, he is sidelined until the doctor determines fitness.

The protocol is a sop to the public, which apparently is satisfied that “something is being done.” But it is a sad joke for several reasons:

1. CTE may be impossible to detect via a sideline or locker room examination. CTE even may be impossible to detect at any time in a living person, until very severe damage becomes obvious (aka “punch drunk”), at which time the devastation is permanent and life threatening.

2. The damage is cumulative, and can be invisible until irrevocable and terminal damage occurs. Months after concussion symptoms such as dizziness, headaches, anger and memory loss fade, the brain continues to show signs of injury.

3. The “concussion protocol” doctors are hired by the NFL, which already has demonstrated its willingness to lie and to sacrifice players in the name of money. It was the NFL’s doctors who sent young men back in to play, shortly after being “dinged” or “having their bell rung” (favorite flippancies for severe brain damage).

If you like your sport to be filled with action, the safer alternatives are rugby or flag football, neither of which involve as many head impacts as does American football.

But, the players won’t demand change. The government won’t demand it. The fans won’t demand change. The NFL won’t change. The reason: Money.

The only thing that can stop this disease is the acknowledgment of the facts, by the mothers and fathers of the children who play football, beginning at a young age, and who receive thousands of head impacts before they are finished with the game.
……………………………………………………………………………………………………………………………………….

II. TOBACCO:

The movie made apt comparisons of the NFL with the tobacco companies that denied tobacco causes health problems, and only recently was dragged, kicking and screaming, into labeling their products with warnings. The public wanted to believe the tobacco companies’ lies.

The labeling is a sop to a public that apparently is satisfied that “something is being done.”

Tobacco causes disease and death. But smokers won’t demand change. The government won’t demand it. The tobacco companies won’t change. The reason: Money.

The only thing that can stop this disease is the acknowledgment of the facts, by the mothers and fathers of the children who take up smoking, beginning at a young age.
…………………………………………………………………………………………………………………………………………….

III. GUNS:

Every year, more people are killed by guns in the hands of the public than are saved by guns in the hands of the public. But the public believes the nonsensical lie that “if unregulated guns are outlawed only outlaws will have unregulated guns.”

It’s nonsense, because the same could be said about every law in existence. (If tax cheating is outlawed, only outlaws will cheat. If speeding is outlawed only outlaws will speed. If stealing is outlawed only outlaws will steal.)

Not to have a law because outlaws will ignore it, is silly at best and tragic at worst.

The National Rifle Association, the well-paid mouthpiece for the gun and ammunition manufacturers, claims guns save lives. The NRA provides “gun safety” education. This “education” is a sop to the public, which apparently is satisfied that “something is being done.” The public wishes to believe the NRA’s lies.

Guns maim and cause death. But, the gun owners won’t demand change. The government won’t demand it. The gun manufacturers companies won’t change. The reason: Money.
…………………………………………………………………………………………………………………………………………………

IV. TAXES

Here we are talking about federal taxes, which like football concussions, tobacco, and guns, are unnecessary and are responsible for millions of deaths.

Taxes cause death by limiting the ability of the public to receive the optimum medical care. The notion that Medicare for All is “unaffordable” and that Social Security and Medicare are “unsustainable,” has been responsible for untold misery.

Contrary to what the rich, the media they own, and the university economists they bribe, tell you federal taxes do not support federal spending. When the federal government pays a bill, it creates the dollars, ad hoc, to pay that bill.

Unlike states, counties, cities, businesses, you, and me, the federal government uniquely is Monetarily Sovereign. It is sovereign over the dollar. It never can run short of dollars, and its debts never can be “unsustainable.”

The federal government could eliminate all federal taxes, and continue spending as before, and still the government would not run short of dollars.

The rich tell you otherwise. Since 1940, they’ve been telling you the federal “debt” is a “ticking time bomb.”

Now, 75 years later, the “debt” has continued to grow, while the paid “experts” of the rich continue to cast worries about the growing “debt.” The mythical “time bomb” continues to tick.

At what point will the people realize they’ve heard this false story again and again, and all the invented worries are groundless?

The motive of the rich is to widen the Gap between the rich and the rest. Without the Gap, no one would be rich, and the wider the Gap, the richer they are.

Federal deficit spending benefits the non-rich far more than it benefits the rich. It narrows the Gap. So the rich tell you deficits and federal “debt” are bad for the economy, when the reverse is true.

The public believes the lie, despite obvious clues showing deficit spending to be not just harmless, but beneficial — not just beneficial, but mandatory for a healthy, growing economy.

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What is the commonality among playing football, using tobacco, carrying guns and paying taxes?

1. They all are harmful to the American people

2. The rich say the public needs them, and the rich pay experts to tell the public it needs them

3. The public chooses to ignore the obvious:

–Obviously, repeated head trauma will have a negative effect on your brain. Think about it. Could any honest, intelligent person ever have doubted it?

–Obviously, inhaling smoke is going to affect your lungs and other organs. Think about it. Could any honest, intelligent person ever have doubted it?

–Obviously, more people are killed by guns in the hands of the public than are saved by guns in the hands of the public. Think about it. Could any honest, intelligent person ever have doubted it?

–Obviously, the federal government, which originally created dollars out of thin air, and continues to create dollars, cannot run short of dollars, and just as obviously, adding dollars to the economy, grows the economy, while taking dollars out of the economy shrinks it. Think about it. Could any honest, intelligent person ever have doubted it?

When the public prefers to remain ignorant of the obvious, it suffers for its ignorance.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually Click here
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

THE RECESSION CLOCK

Recessions begin an average of 2 years after the blue line first dips below zero. There was a dip below zero in 2015. Recessions are cured by a rising red line.

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..

Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between rich and the rest..
•Austerity is the government’s method for widening
the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY

——————————————————————————————————————————————

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