●The more budgets are cut and taxes increased, the weaker an economy becomes.
●Until the 99% understand the need for federal deficits, the 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Austerity = poverty and leads to civil disorder.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
In today’s world, where jobs are based less on strong backs and more on strong minds, our nation benefits when Americans receive a college education, just as it used to benefit when Americans received elementary and high school educations.
To compete, America needs educated people. Period. So it makes sense for the federal government to support education at all levels. Unfortunately, it is the cash-poor, monetarily non-sovereign, local governments that are forced to support grades 1-12, and the equally cash-poor citizens who must support college.
The cash-unlimited, Monetarily Sovereign, federal government — the one entity in America that never can run short of dollars — pays relatively little.
Senate deal would freeze student-loan rates for year
By Rosalind S. Helderman, Published: June 26
More than 7 million college students could be spared higher loan rates under a deal reached Tuesday by Senate leaders. The agreement would freeze the interest rate for a year, preventing it from doubling from 3.4 percent to 6.8 percent on July 1, making college more affordable for students as tuition costs are rising.
Translation: In government-speak, making no change in interest rates, while tuition costs are rising, somehow makes college “more affordable.”
Although leaders in both parties said they favored the rate freeze, they argued about how to cover its $6 billion cost.
Translation: We don’t want the public to realize the federal government has the unlimited ability to create dollars. Next thing you know, these poor fools will demand things like Medicare for all and Social Security that actually provides a living benefit.
So, we put on a fake debate about how to “cover” costs, when we know the government can “cover” any cost.
The House had approved a GOP-backed bill to pay for the rate freeze by eliminating a preventive-care fund created by Obama’s health-care law. That measure did not receive the 60 votes necessary to advance in the Senate. But neither did a competing Democratic proposal to pay for the student loan item by closing a tax loophole that allows some small-business executives to avoid payroll taxes.
Translation: We know this is all slight-of-hand. Eliminating preventive care always costs more in the end, because people get sicker. And whenever people don’t give all their money to the government, we call that a “loophole.”
The extension would be paid for by raising premiums for federal pension insurance, an idea acceptable to businesses because rules on how companies calculate their pension liabilities would be changed. A senior Democratic aide said the pension proposals, which came from Reid, would generate $5.5 billion.
Translation: Here’s the logic: The government pays banks to keep interest rates at 3.7%. However, real rates have dropped so low, banks essentially pay 0% for money. So, banks make more than ever, especially because these loans are risk-free. And by the way, did we mention that some student loans cost as much as 8.5%!! (No one knows why).
To keep interest rates the same, costs many billions more (No one knows why). And, although the federal government can create unlimited dollars, it must increase its income (No one knows why). So we must raise the premiums federal workers pay for pension insurance (No one knows why). There will, however, be no additional cost to Congresspersons (Everyone knows why.)
Meanwhile, students would be limited in how long they could receive a federally subsidized loan to 150 percent of their program length — so, six years for a four-year undergraduate degree — a suggestion from Republicans. The aide said that proposal would raise $1.2 billion.
Translation: As if it already weren’t hard to pay off your loan, your government is going to make it harder. You better get a really good job in a hurry, because “According to figures from the Federal Reserve Bank of New York,(Yahoo News) 37 million Americans hold student loan debt. And:
The total amount of student loan debt in the United States is estimated to be between $867 billion and $1 trillion dollars, and default rates for student loans continue to rise.” And:
The average student loan debt totals between $23 thousand and $27 thousand. Imagine students paying that off (plus interest) in six years or less — in this economy.
Senators said they must decide whether to link the student-loan deal to a two-year measure that would extend highway funding, which also will expire July 1.
Translation: Seems reasonable. Student loans. Highway funding. Same thing, right? Your Congress working for you.
Now I have a couple questions for Congress and the President:
1. Why does our Monetarily Sovereign government need to search for dollars to support college loans? Why the charade about taking dollars from the public, when the government doesn’t need to ask anyone for dollars?
2. Why are monetarily non-sovereign states, counties and cities forced to support grades 1-12? Poor local governments support poor school systems. Why doesn’t the Monetarily Sovereign federal government support all grades 1-12 on a per capita basis, for greater quality and equality among educational opportunities?
3. If it benefits America for elementary and high school education to be free, why isn’t college education also free? See: Government should offer free college education
And at long last, may we please, please stop the lies about our federal government running short of dollars. Please.
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. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption + Net exports