Reduced money growth cannot increase economic growth. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
Nations die from within, their governments, either from ignorance or corruption, slowly cutting away the factors and institutions that made their nations great.
On August 15, 1971, the United States of America went off the gold standard to become “Monetarily Sovereign.” In that fateful instant, our federal government acquired the unlimited ability to create dollars. It no longer could be forced into bankruptcy, except by Congress. America had gained the ability to pay any bill of any size, instantly. No debt was unsustainable.
There are more than 1,000 federal government agencies. Because they are agencies of the government, they too cannot be forced into bankruptcy. Congress, the White House, the Supreme Court, the branches of the military – all are federal agencies. None can go bankrupt. They have the full support of the U.S. government and its unlimited money-creation power.
For reasons clouded in political history, a tiny handful of the 1,000+ U.S. agencies cannot count on unlimited support from the federal government. Among these are Social Security, Medicare and the United States Post Office.
Ostensibly, the first two are supported by the FICA tax, while the USPO is supported by stamp sales. In economic fact though, the budgets of Social Security and Medicare are limited, not supported, by the FICA tax, and the budget of the USPO is limited, not supported, by stamp sales. In a Monetarily Sovereign nation, no form of income, whether taxes or fees, supports government spending.
The measure of a nation is the well-being of its citizens. All three of the above-named agencies are vital to the health and welfare of the United States. The USPO is so important, it specifically is authorized in the Constitution. Notwithstanding the Internet, fax machines and cell phones, America requires postal service, and any lessening of this service lessens America.
The benefits of Social Security, Medicare and the Post Office all are necessary to America’s greatness. Any reduction in the services provided by these three agencies represents a step backward for America.
Today, a Congress and President, ignoring factual economics, debate how once again, they will snip pieces from Medicare and Social Security, diminishing us. And then there was this article from the 8/12/11 Washington Post:
The Postal Service has reduced its workforce by 212,000 positions in the past 10 years and recently announced it is considering the closing of 3,700 post offices. It also has asked Congress to allow it to deliver mail five days a week instead of six and to change a requirement that it pre-fund retiree health benefits.
The USPS said it needs to reduce its workforce by 120,000 career positions by 2015, from a total of about 563,400, on top of the 100,000 it expects by attrition. Some of the 120,000 could come through buyouts and other programs, but a significant number would probably result from layoffs if Congress allows the agency to circumvent union contracts.
At a time when unemployment is one of our most serious problems, the USPO will lose 212,000 jobs in just the next three years. Even more telling are the phrases,” . . .closing of 3,700 post offices. . . “ and “ . . . deliver mail five days a week instead of six . . .”
In what seems now the distant past, mail was delivered twice a day, six days a week. Later, this service was reduced to once a day (snip) and soon just five days a week (snip). And the availability of local post offices will be reduced by another 3,700 (snip). And all too often, in what essentially is a tax increase, the price of postage rises, becoming less and less affordable (snip).
Today, we have a Congressional committee deciding how to cut Medicare benefits once again (snip) and how to reduce Social Security benefits once again (snip).
Slowly America is being cut away, our greatness being gutted by leaders who have neither the wits to understand what they are doing, nor the patriotism to care.
Is Congress like the apocryphal carpenter who shakes his head in puzzlement, “The more I cut the shorter it gets”? Or perhaps more like populist François Duvalier, who destroyed Haiti with the Tonton Macoutes militia and voodoo?
Whatever the analogy, there is no question America is diminishing at the hands of Congress and the President. That will be their legacy. And it all is so unnecessary. In a great nation, Medicare should be enlarged, not cut. In a great nation, Social Security should be expanded, not reduced. In a great nation, the Post Office should provide more services, not fewer.
Our federal government can and should enable the growth of America, not its dissolution. Instead it forms a committee to reduce our money supply, like using leeches to cure anemia. Right before our eyes, our beloved nation is dying the death of a thousand cuts, disappearing at the hands of those elected to protect us. And we are dying with it.
Rodger Malcolm Mitchell
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