–Surprise! Every American really does understand the basics of Monetary Sovereignty Tuesday, Apr 8 2014 

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

Mitchell’s laws:
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor,
which ultimately leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive,
and the motive is the gap.
======================================================================================================================================================================================

Among the groups of people who cannot be taught, there are those who know the facts but do not want to acknowledge the facts

That is why it is impossible to teach Monetary Sovereignty to mainstream economists, the media and politicians. They know the facts but have been paid not to acknowledge the facts.

So, we have been left with trying to educate the public, the only people in America who seemingly don’t know the facts. Or do they?

How do we teach people that the government never can run short of money, the federal debt is meaningless and that the federal deficit is necessary for economic growth? Perhaps an new analogy?
Until recently, I’ve been a shareholder in Google. A couple weeks ago, Google had a stock split. Those who owned Google stock received one additional share for every share they owned. At the press of a computer key, Google doubled the number of Google shares in the world.

And that gave me a thought.

Have you ever bought one or more shares of stock? If so, what does one share look like? What do 100 shares look like? How much do they weigh? How do they feel? How do they smell and taste?

Actually, you never have seen a share of stock. No, it doesn’t look like this:
monetary sovereignty

This is just a certificate saying you own a share of stock. This piece of paper was pre-printed by the thousands. Until it was issued, that is, until a secretary typed in a name a number to show how many shares it represented, it had no value.

Very few shareholders possess even one of these certificates. I personally have been trading stocks for more than 60 years and so far as I recall, I have seen but a half dozen of these certificates.

If you’ve been reading about High Frequency Trading (HFT) lately, you know that computers make millions of trades each second, and no one ever sees a stock certificate.

The shares themselves are just numbers in accounting balance sheets. They have no physical existence. No one can see, hear, taste, feel or smell shares of stock.

Google, the issuer of the above pictured certificate, never can run short of shares. It is sovereign over Google shares. It can create as many shares as it wishes. If Google wished, it could offer a 10-for-one stock split or a million-for-one.

Having the unlimited ability to create Google shares, Google never needs to borrow shares, and if it issues more Google shares than it receives (i.e runs a deficit in Google shares), that’s just normal. That stock split I mentioned was Google running a deficit in its shares.

Not only do you know all the above, but virtually everyone knows all the above. So, I find it surprising that we find it difficult to think of money as an invisible concept rather than as a physical thing.

Google is sovereign over Google stock; Google can create infinite amounts at will, never needs to borrow any, and can run a “deficit” (issues more than it takes in) in Google stock forever. If Google has a debt denominated in Google stock (i.e. owes stock), there is no burden on Google. It could issue a trillion shares tomorrow, at the touch of a computer key.

So too does the federal government have the ability to create infinite amounts of dollars, just as Google can issue infinite numbers of shares. The federal government never needs to borrow dollars, and can run deficits in dollars forever.

Google is “God” of Google stock; the federal government is “God” of the dollar.

And just as a stock certificate is not a share of stock, neither is a dollar bill a dollar.

monetary sovereignty
THIS ISN’T A DOLLAR. IT’S A CERTIFICATE SHOWING THE BEARER OWNS A DOLLAR

In summary, America understands the basic concepts of Monetary Sovereignty — that the government has the unlimited ability to create dollars, so never needs to borrow dollars, never relies upon or uses taxes, and easily can pay any debts denominated in dollars.

All the concerns about federal deficits and debts are as silly as worrying about whether Google will run short of shares of its own stock.

Americans know this. They just don’t know they know it.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine 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
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

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.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK
Monetary Sovereignty Monetary Sovereignty

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY

–What makes the American voter so ignorant? Perfect examples Friday, Apr 4 2014 

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

Mitchell’s laws:
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor,
which ultimately leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive,
and the motive is the gap.
======================================================================================================================================================================================

First, read what the rich want to do. Then see what the American voter says about it:

Yahoo News
GOP budget slashes spending, aid to poor
Associated Press By ANDREW TAYLOR, April 2, 2014 11:11 PM

Rep. Paul Ryan’s (R-Wis) plan would wrestle the government’s chronic deficits under control after a decade, relying on deep cuts to Medicaid, highway construction, federal employee pension benefits, food and heating aid to the poor, and Pell Grants for college students from low-income families.

It would eliminate health care coverage under the Affordable Care Act while assuming the government keeps $1 trillion worth of Obamacare’s tax increases, and retains a 10-year, $700 billion cut to Medicare that Democrats drove through in 2010 when passing the health care law.

The plan cuts deeply into the middle and lower classes, while not laying a glove on the upper .1%.

Republicans say such tough cuts are required to take on chronic deficits that threaten to sap the economy of its strength in coming years as government borrowing squeezes out savings and investment and spiraling costs of federal retirement and health care programs promise to swamp taxpayers.

You have just read perfect examples of the BIG LIE. The facts are:

1. Deficits do not “sap the economy of its strength.” By adding dollars, deficits strengthen the economy. Austerity(i.e. deficit reduction) saps the economy, as European euro nations prove every day.

2. Our Monetarily Sovereign government has the unlimited ability to create it sovereign currency, the dollar, so never needs to borrow. Further, federal “borrowing” (a misleading word meaning “issuing T-securities,” is a form of savings and investment, so cannot “squeeze out” savings and investment.

3. “Spiraling costs of retirement and health care programs (Social Security and Medicare) cannot “swamp taxpayers” for the simple reason that unlike state and local taxes, federal taxes do not pay for anything. The federal government creates dollars ad hoc, by spending.

The rich want you to believe that federal finances are like personal finances, so you will accept austerity, which widens the gap between the rich and the rest.

But there’s more:

“Just as a weak economy can drag the budget into the red, a responsible budget can help propel the economy forward,” Ryan said. “If Washington is serious about helping working families — or serious about getting families out of work back to work — then it needs to get serious about the national debt.”

When Ryan says “budget,” he actually is talking about the federal deficit, not the national debt — two completely different measures, but he intentionally wishes to confuse the public.

The formula for Gross Domestic Product, the most common measure of our economy is:

GDP = Federal Spending + Non-federal Spending – Net Imports

Because deficit reduction reduces Federal Spending AND reduces Non-federal Spending, mathematically there is no way that deficit reduction can increase Gross Domestic Product, help working families or get families out of work, back to work.

Quite the opposite. Ryan knows this, but he wants you to participate in widening the gap between the rich and the rest.

More than $700 billion in cuts to Medicaid over 10 years would force hundreds of thousands of seniors from nursing home care, for instance, while $135 billion cut from food stamps and other nutrition aid would increase hunger.

Eliminating a mandatory funding stream for Pell Grants would mean fewer poor kids could dream of college, they said, while cuts to education, scientific research and NASA would harm U.S. competitiveness.

Obviously. Only an extremely ignorant person could fail to understand the truth in the above two paragraphs. And Ryan is not ignorant. He has been bribed by the rich to put forth the BIG LIE.

And speaking of ignorant, here are some verbatim comments by readers of the above article.

G
When I called to turn in my niece for welfare fraud I was told they don’t have enough people to investigate her. She had two kids, two baby daddies and gets food stamps, medicaid, housing, wic, and cash while living with the second baby daddy. He works while she sits home and collects off the taxpayer. I don’t understand why our government doesn’t throw these people off the system. Sick of hearing I got babies and you have to support us. These are the people who need to be cut off. Medicare cuts to the deserving are just offensive! If you don’t love your babies enough to work for them I certainly don’t. Cut them off immediately and we will save billions.

RPM
I believe in helping people but its out of control in this country .its time to say NO. If you want to eat get off your #$%$ and get a job get off the couch. my neighbors are 25 and 34 years old both live with their mom get welfare and food stamps (which they trade for drugs ) and have no intention of ever working stay up all night watching t v and sleep all day we have become a welfare society its time to tell the abled body to go to work heres the plan you have 10 days to go see a state doctor and mental health specialist if they say you are physically and mentally able to work your benifits are cut immediately.take that money being spent on welfare and food stamps create a low interst or no interst fund to create or expand business interst free you would be shocked at the outcome in 2 years but for some reason the liberal media and the democrats aren’t smart enough to see this but then again look what the #$%$ did with obamcare people have to start being accountable.

Dennis M
Didn’t read the article, gave up on mainstream media and lying leftists years ago. If real facts and news were reported, they would tell you we are on an unsustainable path. If we had truth tellers and not a permanent political class, they would tell you they cut, CUT….700 billion from medicare, and not over 20 years, but immediately, and gave it to Obama care. They would tell you they have no idea how they will pay the 100 trillion in unfunded entitlements such as social security and the rest. They would tell you your standard of living and wealth has dropped, unless you are the super rich, such as they are. They would tell you your kids and grand kids face a very uncertain , troubled, economic future. They would tell you they have taken care of themselves and their families financially. They would tell you a crash is inevitable, because they cannot, and will not stop themselves. They would tell you the facts, but that means admitting truth and truth is an enemy of corruption.

So there you have it. The BIG LIE swallowed completely by an ignorant, compliant middle- and lower-class, determined to vote for their own financial suicide.

In a democracy, the least intelligent have the same vote as the most able. Democracy is not what has made America great. Surviving democracy is what has made America great.

Will we continue to be so fortunate?

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine 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
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

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.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK
Monetary Sovereignty Monetary Sovereignty

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY

–Great news! Court says it’s O.K. for you to give a billion dollars to elect and bribe politicians Wednesday, Apr 2 2014 

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

Mitchell’s laws:
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor,
which ultimately leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive,
and the motive is the gap.
======================================================================================================================================================================================

Great news! In its McCutcheon decision, the dominating right wing of the U.S. Supreme Court says it is O.K. for you to give a billion dollars to elect and bribe politicians. So get your checkbook out.

What? You don’t have a billion dollars? You’re saying that due to austerity, you’d be lucky to have $10 to elect and bribe politicians, and they won’t listen to you anyway??

But what about free speech?

Republican Speaker John A. Boehner: “What I think this means is that freedom of speech is being upheld. You all have the freedom to write what you want to write. Donors ought to have the freedom to give what they want to give. I’m all for freedom.”

See, according to the right wing, writing and talking are the same as money. (Remember this the next time you go to the grocery store and talk your way into a loaf of bread. Or better yet, talk your way into a mansion and a Rolls Royce.)

So long as speech is “free” (meaning, “There are no restrictions on giving it), campaign contributions also should be “free” (meaning, “There should be no restrictions on giving it).

Of course, this means the rich have much more free speech than you and I have, which is only right, because the rich are smarter and more valuable to America than you and I are. Agreed?

But wait, here is a voice of sanity — the usual voice of sanity:

Justice Clarence Thomas said he agreed with the decision, but wrote separately to say that he would have gone further and wiped away all contribution limits.

Thanks for that illuminating thought, Justice Thomas.

Let’s put this as delicately as possible: If Clarence Thomas agrees with it, that is proof positive the decision was senseless. He long has been a reliable measure of senselessness in the Court.

But wait again. Here comes Chief Justice Roberts:

Roberts wrote: “Money in politics may at times seem repugnant to some, but so too does much of what the First Amendment vigorously protects.

If the First Amendment protects flag burning, funeral protests and Nazi parades – despite the profound offense such spectacles cause – it surely protects political campaign speech despite popular opinion.”

So there you have it. If the Constitution protects Nazis, funeral protests, and anything else you don’t like, then clearly it protects the right of the rich to elect and bribe politicians, because those all are totally the same things.

According to Roberts, if you don’t like it, the Constitution protects it — especially if it benefits the rich and increases the gap between the rich and the poor. That will be the Roberts Court legacy.

And by the way, Justice Roberts, don’t use weasel words like “campaign speech.” It’s not campaign speech; it’s “campaign money”.

But wait, yet again. We have the usual voice for the poor and middle classes, the Cato institute, which despite its claims, is and has been, controlled by the notorious Koch brothers:

“In a truly free society, people should be able to give whatever they want to whomever they choose, including candidates for public office. The Supreme Court today correctly struck down the biennial campaign contribution limits and gave those who contribute money to candidates and parties as much freedom as those who spend independently to promote campaigns and causes. But it should have gone further.

Cato/Koch thinks rich people should be able to bribe politicians as much as they want, because as you know, politicians are honest, and their votes cannot be bought.

Also, voters, being well-informed, are not influenced by TV, radio, billboard, and phone marketing (It is surprising that rich people foolishly would waste their billions buying TV, radio, billboard and phone marketing, since these things have no effect.)

Bottom line, if you are among the lower 99.9%, you have three alternatives. You can:

1. Demand a Constitutional amendment that will set campaign contributions limits. (That shouldn’t take much more than 20 years at best and will be fought every step of the way by the Republicans.)
or
2. Demand a law in which every citizen is given a “free speech voucher,” good for $10,000, which he can divide among as many or as few political candidates as he wishes, with no other contributions allowed. (The right wing Supreme Court will rule it unconstitutional, because you want it and the rich don’t.)
or
3. Stop electing right wingers, especially Republican Presidents and Senators. (You voted for the guys who nominated the Supreme Court, and now you’ll live with pro-rich, anti-you policies for many, many years.

Unless your net worth is at least $100 million, you are naive to vote for a Republican President. (But if your net worth is more than $100 million, you are naive not to vote Republican, or you sincerely care about America.)

So which are you?

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine 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
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

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.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK
Monetary Sovereignty Monetary Sovereignty

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY

–Is this the end, or just the beginning, of money? Monday, Mar 31 2014 

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

Mitchell’s laws:
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor,
which ultimately leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive,
and the motive is the gap.
======================================================================================================================================================================================

What is money? Simple answer: Money is a medium of exchange. After that, things get a bit complex.

Some say money is a store of value, but in the event of inflation, money’s not a very good store. Similarly, money is a comparative measure of value, at any one moment in time, but again, not a very good measure over time.

Historically, money has been whatever a government said it was, because money is backed by the full faith and credit of the issuer, and historically, governments have been the issuers.

But, the times, they are a’changin’.

Modern money has no physical existence. Money is numbers in an account. Think of that seemingly universal explanatory example, the game of Monopoly. It has variously denominated bills that players exchange for properties, rents, fines and rewards. Those bills are not money. They are evidence of money; they are titles to money.

Monopoly easily could be played with a scorekeeper and scorecards instead of bills. Players simply could have their balances increased or decreased, according to the rules of the game. The notations on the scorecards would be money – and not the physical notations, but the “meanings” of the notation symbols. In fact, there is a computer version of Monopoly, in which everything is composed of symbols; nothing is physical.

Money then, is a score. It is wholly symbolic and not at all physical. But who decides what those symbols mean and who keeps score? The answer: Anyone whose full faith and credit is trusted enough. Players of Monopoly trust the game’s rules.

The U.S. government can create dollars, because Americans and foreigners trust the full faith and credit of the U.S. government enough to accept dollars (in accounting notations) in exchange for goods and services.

Banks too, create dollars, because Americans and foreigners trust the full faith and credit of the banks and the banking system, sufficiently to trust the accounting notations telling them how much money (accounting notation) exists in their bank accounts.

So let us change our definition of money: Money is a trusted score that is used as medium of exchange. Without trust, there cannot be money.

And we are not talking about absolute, unconditional trust. That doesn’t exist in this world. We mean the level of trust you have for the central government, for big businesses, for small businesses, for relatives, etc.

Read Understanding Federal Debt. Full faith and credit, where we describe the elements that go into trust, i.e. into full faith and credit.

Central governments and banks are not the only entities that are trusted to keep accurate scores. You trust the electric company. You trust the gas company, the phone company – at least at the level necessary to be the collateral for money.

For instance, many people have trusted the process behind the bitcoin, together with the currency exchange markets such as Mt. Gox. While this trust remained intact, bigcoin functioned as money. Recent problems with Mt. Gox have weakened bitcoin as a trusted currency.

Which brings us to: M-Pesa, a form of money based on the full faith and credit of mobile-phone companies Safaricom, Ltd and Vodacom.

M-Pesa allows mobile-phone users to deposit, withdraw, and transfer money, paybills and purchase airtime. Like all forms of money, M-Pesa is not physical. It is nothing more than an accounting service.

I urge you to read the Wikipedia description:

M-Pesa

In 2002, Researchers at Gamos and the Commonwealth Telecommunications Organisation, funded by Department for International Development UK, documented that in Uganda, Botswana and Ghana, people were spontaneously using airtime as a proxy for money transfer. Africans were transferring airtime to their relatives or friends who were then using it or reselling it.

M-Pesa (M for mobile, pesa is Swahili for money) is a mobile-phone based money transfer and microfinancing service for Safaricom and Vodacom, the largest mobile network operators in Kenya and Tanzania

The service allows users to deposit money into an account stored on their cell phones, to send balances using SMS technology to other users (including sellers of goods and services), and to redeem deposits for regular money.

Users are charged a small fee for sending and withdrawing money using the service. M-Pesa has spread quickly, and has become the most successful mobile phone based financial service in the developing world.

One rightly could argue that M-Pesa is not money, but rather a money-transfer service, but the line blurs. The airtime that users of M-Pesa purchase, is itself used as an exchange medium, i.e. as money.

The existence of M-Pesa, a corporate-based money service, evidences two features of Monetary Sovereignty truths:

1. Money is not physical. Money is an agreed-upon record. Those who claim gold or dollar bills or any other physical element to be money, simply are wrong. Vodaphone and Safaricom do not supply anything of a physical nature.

2. Sovereign money is unlimited. It never can run short. Vodaphone will not run short of credits for airtime minutes. Whether or not those minutes ever are used is irrelevant.Some may never be; some not. They simply are exchange units.

Vodaphone neither needs to borrow credits nor to tax users for credits. The terms “deficit” and “debt,” so often wrongly applied to the U.S. dollar, are meaningless when discussing M-Pesa airtime. Vodaphone does not need to borrow credits nor tax users to obtain credits.

Those who believe the federal government can run short of dollars, or have burdensome debts, or need to borrow dollars from another country, simply are wrong. The value of M-Pesa is based on the full faith and credit of the issuers.

But the real value of M-Pesa is the demonstration that money can be the child of any entity having sufficient credit. If you are trusted (and laws permit), you could issue money and have your money accepted.

I for instance could create “mitchells,” and create them out of thin air (just as the federal government does), by sending instructions to your bank, tell the bank to increase the balance in your checking account by an amount equivalent to a certain amount of mitchells.

My money would be of my own design, and would have no physical presence. If the banks trusted my full faith and credit, they would do as they are told, which would create more mitchells.

I never would need to borrow mitchells. I never would need to tax anyone to obtain mitchells. I simply would create it by sending instructions. If anyone paid me in mitchells, I would note the payment, but the mitchells themselves would be destroyed, as they are unneeded and so, have no value to me.

And none of the above has anything to do with gold or anything else that is physical.

Today, many nations supply their sovereign currency, Bitcoin and M-Pesa may be just the forerunners of many moneys provided by many non-government sources. While this may seem to exacerbate an exchange problem, in fact, the problem is trivial for computers, which instantly can make appropriate conversions.

The real problem is the one that exists today: The relative value of each issuer’s full faith and credit.

So what do you think? Are bitcoin and M-Pesa signs of the end of money or the beginning?

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine 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
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

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.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK
Monetary Sovereignty Monetary Sovereignty

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY

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