–The weird merry-go-round of Treasury bonds and QE Friday, Oct 17 2014 

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

Mitchell’s laws:
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 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.
==================================================================================================================================================================

In the beginning there was nothing. There were no American laws. There was no America. There were no American dollars.

Nothing American.

Then, in the late 1700’s AD, men created from nothing, American laws. And from nothing, these laws created a nation named “The United States.” And these laws also created the United States dollar.

All from nothing.

The men could have written their laws any way they wished. America could have been a monarchy. It could have been a theocracy. But the men decided to create laws to make America a Presidential Democracy. From nothing.

And these laws, created from nothing, also created the American dollar, also from nothing. And because the men had complete control over these laws, there was no limit to the number of dollars they could create from nothing.

This power is called “Monetary Sovereignty,” the ability to create and to rule, unlimited amounts of your own sovereign currency.

And they continued to create and distribute these American dollars all over the land and all over the world, so that many millions of people owned these dollars, that never had existed and were created from nothing.

Then, for reasons lost to history, men decided the American government should borrow some of the dollars it already could create without limit, from nothing. And thus were laws enacted creating the T-bond, T-note and T-bill.

There is no limit to laws, no limit to T-bonds, no limit to T-notes, no limit to T-bills and no limit to dollars.

All are created from nothing.

Now, over the years, the populace had forgotten how the dollar was created, and came to believe the American government no longer could control its own laws — the laws that allow the unlimited creation of the dollar.

And this belief led to articles like this one:

Bullard Says Fed Should Consider Delay in Ending QE
By Steve Matthews and Craig Torres, Oct 16, 2014

The Federal Reserve should consider delaying the end of its bond-purchase program to halt a decline in inflation expectations, said St. Louis Federal Reserve Bank President James Bullard.

“Inflation expectations are declining in the U.S.,” he said in an interview today with Bloomberg News in Washington. “That’s an important consideration for a central bank. And for that reason I think that a logical policy response at this juncture may be to delay the end of the QE.”

Bullard is the first Fed official to publicly suggest the central bank should extend its asset-purchase program when policy makers meet later this month.

For those who don’t understand “QE” (Quantitative Easing), it refers to one agency of the federal government, the Treasury, creating and issuing bonds, notes and bills to the public, while another agency of the federal government, the Federal Reserve Bank, takes them back and destroys them.

Left pocket to right pocket.

The populace believes something like this: When T-securities are purchased, dollars flow from the public to the Treasury, which uses them for spending. Then when T-securities are purchased by the Federal Reserve Bank, new dollars must be created.

That is completely false. That belief results from not understanding the enormous difference between personal financing and federal financing.

The reality is a weird merry-go-round that goes like this:

A. To acquire these newly created bonds, notes and bills, the public takes dollars from privately-owned checking accounts at private banks, and deposits those dollars into privately-owned T-security accounts at the Federal Reserve Bank.

No dollars are created or destroyed. They merely are transferred from one privately-owned bank account to another — much like transferring dollars from a checking account to a savings account.

B. Then, with QE, the Federal Reserve Bank, transfers the dollars from T-security accounts to checking accounts — and destroys the T-bonds, notes and bills. Again, no dollars are created or destroyed.

If one believes inflation is caused by an increase in the money supply, QE does not fight inflation, as QE does not reduce the money supply. No new dollars are created or destroyed.

Except for one thing: QE, by transferring ownership of T-securities from the public to the Federal Reserve Bank, also transfers interest payments from the public. Fewer dollars are created by QE.

All of the above devolves to three questions:

1. Since the issuance and redemption of T-securities neither increases nor decreases the money supply, what is the purpose of T-securities?

I suspect the only answers are: Some thing T-securities may give the government more control over long-term interest rates. And they do provide a small, hidden, off-budget method for pumping interest — growth dollars — into the economy. Finally, they provide a reasonably safe investment for those who want a low-paying place to park dollars.

In my opinion, these effects are too small to be worth the effort and deception involved.

2. On balance, is an increase in the money supply beneficial to the economy (economic growth) or detrimental to the economy (uncontrollable inflation)?

Evidence indicates an increase in the money supply stimulates the economy (See: Introduction and numerous subsequent posts on this blog) and has not caused inflations (See: Federal deficit spending doesn’t cause inflation

3. Does QE really give the government greater control over interest rates?

The Fed has absolute control over short term rates, merely by fiat. Long-term rates, though heavily influenced by short-term rates, can drift. But QE is a slow, clumsy, imprecise way to adjust them. A simpler option would be for the Fed to issue rules to member banks, controlling rates.

Bottom line, a complex, convoluted, Rube Goldbergian T-security process has evolved over the years — a process that does not accomplish what is claimed and confuses not only the public but also those who implement the process.

The federal government creates dollars from nothing, at will, and has no need to “borrow” dollars from anyone — not you, not me, not China. And to “pay off” this so-called “debt,” the government merely transfers existing dollars from private T-security accounts to private checking accounts.

No dollars created or destroyed.

On balance, we could eliminate T-securities and simplify our money controls.

But then, the Fed could not fool the people into believing it actually is doing something constructive about the economy.

And we all do enjoy riding the Fed merry-go-round.

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
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 add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

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

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.

#MONETARYSOVEREIGNTY

–Rand Paul’s big idea: Make my billionaires happy. Friday, Oct 17 2014 

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

Mitchell’s laws:
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 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.
==================================================================================================================================================================

Hi, I’m Rand Paul. Here is my big idea as stated on my own website:

“The three largest drivers of spending, not including interest payments, are Medicare, Social Security and Medicaid.

“The solution to the government’s fiscal crisis must begin by cutting spending in all areas, particularly in those areas that can be better run at the state or local level.”

Translation: Our Monetarily Sovereign government, never can run out of its own sovereign currency, and which has the unlimited ability to create dollars and to pay its bills, mysteriously cannot afford to pay its bills. (Don’t ask me how.)

So, all federal obligations, including Social Security and Medicare, should be loaded onto our monetarily non-sovereign state and local governments, which do not have the unlimited ability to create dollars and already struggle to pay their bills.

That is part of my big idea.

“Forty six states across the nation have enacted Balanced Budget Amendments (BBA) in their state constitutions. I have long been a proponent of adopting the same principle for the federal government.”

Translation: Federal finances are exactly like state finances. Please forget that the federal government is Monetarily Sovereign and the states are monetarily non-sovereign.

Yes, really forget all about it. I want you to remain ignorant about federal finances, so I can deceive you with non-solutions to non-problems.

That is part of my big idea.

“The unsustainable levels of debt come shortly after four years of deficits of more than $1 trillion.”

That’s one of those non-problems I’ve been talking about. There is no level of spending that is “unsustainable” for the federal government. I’m trying to sucker you with a giant con-job, because that is what I’ve been paid to do.

My wealthy supporters and I love austerity, because most government spending benefits the not-rich. We want spending to be cut, because spending cuts widen the Gap between the rich and the rest. And it’s the gap that makes them rich.

So vote for me so you can pay for my billionaires and me to be very, very happy.

That is my big idea.

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
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 add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

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

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.

#MONETARYSOVEREIGNTY

–Absolute proof the federal government spends too much Thursday, Oct 16 2014 

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

Mitchell’s laws:
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 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.
==================================================================================================================================================================

Politicians, especially the Tea Party, the Republicans and the Libertarians, long have said the federal government spends too much.

At least one Libertarian web site frequently refers to the federal government as “the Leviathan,” painting a picture of a huge monster hovering menacingly over our lives.

Here are some of the reasons why spending by this huge monster should be cut:

THE FEDERAL GOVERNMENT SPENDS TOO MUCH TO SUPPORT HEALTH CARE:

A study earlier this year by the Commonwealth Fund found that of the top 11 developed nations, the United States ranks dead last in health care and health outcomes like infant mortality and life expectancy.

A similar report from the World Health Organization ranks our health care system 30th in the world.

THE FEDERAL GOVERNMENT SPENDS TOO MUCH ON RESEARCH & DEVELOPMENT:

Why Don’t We Have an Ebola Vaccine?

Washington missed its chance to be prepared. Now, politicians are fighting over whom to blame.

On Friday, National Institutes of Health Director Francis Collins told the Huffington Post that we should have been better prepared to handle Ebola. “Frankly, if we had not gone through our 10-year slide in research support, we probably would have had a vaccine in time for this that would’ve gone through clinical trials and would have been ready,” Collins said, noting that federally funded scientists have been working on a vaccine since at least 2001.

He was just highlighting the obvious: The less money the NIH has for research, the less research it can do.

Hillary Clinton and Elizabeth Warren have both suggested that U.S.-led efforts to combat the Ebola outbreak have been hampered by the sequester and the years of budget cuts that preceded it. That attack moved from the implicit to the explicit when a little-known liberal group ginned up Beltway headlines with an attention-grabbing “Republican cuts kill” ad campaign.

THE FEDERAL GOVERNMENT SPENDS TOO MUCH TO SUPPORT K-12 EDUCATION:

Meanwhile, while the US is at the bottom of the health-care barrel, we’re also far behind when it comes to education and educational outcomes.

Last year, the Program for International Student Assessment looked at how 15-year-old students in 65 nations across the globe performed on a variety of tests.

The group found that US students ranked just 17th in reading comprehension and 21st in math.

And similar studies have found that among developed nations, the US also comes in towards the bottom in educational attainment, or the highest degree of education an individual has completed.

THE FEDERAL GOVERNMENT SPENDS TOO MUCH TO SUPPORT COLLEGE EDUCATION:

How College Costs Are Skyrocketing Out Of Middle-Class America’s Reach

Over the past three decades, the inflation-adjusted income of the median American family has basically remained stagnant. The same can’t be said of college costs, which have simultaneously surged to almost unrecognizable heights, according to a new report by the left-leaning Center for American Progress.

Costs at private nonprofit four-year colleges have increased by more than 150 percent since 1982, but the real trouble is at four-year public schools, where inflation-adjusted costs have experienced a startling 250 percent jump.

It’s not so difficult to understand how this puts families in a bind. As of 2011, only half of American households could claim an income of more than $50,000, according to the U.S. Census — a number low enough to make paying for a child’s college education appear more dream than reality.

And by many measures, college is more important than ever. As the CAP report states, “almost two-thirds of jobs in our economy will [soon] require some type of education or training beyond high school.”

monetarily sovereign

THE FEDERAL GOVERNMENT SPENDS TOO MUCH TO SUPPORT COLLEGE STUDENTS:

Mark Cuban Explains the Student Loan Crisis

“It’s inevitable at some point there will be a cap on student loan guarantees. And when that happens you’re going to see a repeat of what we saw in the housing market: when easy credit for buying or flipping a house disappeared we saw a collapse in the price housing, and we’re going to see that same collapse in the price of student tuition, and that’s going to lead to colleges going out of business.”

A majority of young Americans- 57% – view student loan debt as a major problem, and the average college student graduates with $30,000 in debt.

As Cuban and others point out, the failure to address these aspects will lead to diminished economic productivity in the long run, since young Americans have to spend a growing percentage of their income to service student loan debt.

When you factor in a high youth unemployment rate of 13.2%, you have an economic perfect storm that can decimate Millennials before they even get started.

THE FEDERAL GOVERNMENT SPENDS TOO MUCH ON OUR ROADS:

Fueling Road Spending with Federal Stimulus
Sylvain Leduc and Dan Wilson

Highway spending in the United States between 2008 and 2011 was flat, despite the serious need for improvements and the big boost to state highway funds from the Recovery Act of 2009.

The aging U.S. transportation infrastructure has been steadily deteriorating for many years now and needs serious maintenance and repair. The American Society of Civil Engineers gave the nation’s roads a “D” rating in 2013, indicating that they are mostly below standard, with a large portion of the system exhibiting significant deterioration.

Similarly, the World Economic Forum ranked the United States 18th in the world in terms of road quality in 2013. While it’s widely acknowledged that the country’s highways need repairs, policymakers disagree about how to pay for these improvements.

THE FEDERAL GOVERNMENT SPENDS TOO MUCH TO HELP THE AGED:

Currently, the Social Security Board of Trustees projects program cost to rise by 2035 so that taxes will be enough to pay for only 75 percent of scheduled benefits.

THE FEDERAL GOVERNMENT SPENDS TOO MUCH TO HELP THE POOR

September 16, 2014
“Today the U.S. Census Bureau reported that 14.5 percent of the nation’s population – 45 million people – are living in poverty. The report also found that 20 percent of all American children live in poverty.

The list goes on and on. Clearly, the federal government — the “Leviathan” — is far too big, spending needlessly, considering the minimal problems facing the U.S.

The solution: Spend less on Health Care, less on Research & Development, less on Lower Education, less on Higher Education, less to support College Students, less on Roads, less to Help the Aged, less to Help the Poor and less on all the other services that huge Leviathan does to help Americans.

We are exceptional and we are self-sufficient. We don’t need help. As Pink Floyd sang, “We don’t need no education.”

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
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 add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

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

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.

#MONETARYSOVEREIGNTY

–GREAT NEWS! The deficit is down. Uh . . . wait a minute! Wednesday, Oct 15 2014 

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

Mitchell’s laws:
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 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.
==================================================================================================================================================================

Here is some GREAT NEWS!:

U.S. budget deficit lowest since 2008: Treasury
BY DAVID LAWDER

(Reuters) – The U.S. budget deficit fell by nearly a third to $483 billion in fiscal 2014, the lowest level since 2008, as a quickening economic recovery boosted tax collections and spending grew only modestly, the Treasury Department said.

Here’s a graph of that GREAT NEWS:

monetary sovereignty

The vertical gray bars represent recessions. Question: What happens in advance of recessions?

The deficit was the lowest since a $459 billion budget gap in fiscal 2008, which was followed by four straight years of $1 trillion-plus deficits in the wake of the financial crisis.

Question: What happens during recessions that cures recessions and re-grows the economy?

U.S. Treasury Secretary Jack Lew and White House Budget Director Shaun Donovan hailed the data on Wednesday as a “return to fiscal normalcy.”

Lew told a news conference the United States was now in a period of fiscal sustainability that is providing a strong foundation for growth.

Translation: “Fiscal sustainability” means the federal government now will be able to create enough dollars to pay its bills — as opposed to the fact that being Monetarily Sovereign, the government never can run short of its own sovereign currency, the dollar, to pay its bills. See the difference?

“What I don’t think we have is an emergency right now,” Lew said. “The challenge we have is to sustain the economic engine so that we’re seeing the growth now and over these next 10 years.”

The improving fiscal picture has sapped the urgency for a major budget deal between Congress and the White House aimed at slashing deficits by trillions of dollars over the next decade and starting to reduce the $17.8 trillion federal debt.

Translation: The challenge is to sustain the economic engine by reducing the fuel for the economic engine. Yes, it’s a real challenge.

Lew insisted he has not given up on further deficit reduction, but said budget savings could not come at the expense of economic growth.

Translation: He will continue to cut the baby’s formula, but not at the expense of the baby gaining weight. Understand?

Donovan told Reuters on Tuesday he wanted to further reduce those budget cuts next year and would be willing to consider some savings to mandatory spending programs to reach a deal with Republicans, who control the U.S. House of Representatives.

Translation: We’ll have to cut (gut) Social Security and Medicare benefits to please the Republicans and their (and our) rich donors, who want to widen the Gap between the rich and the rest.

Fiscal 2014 revenues grew 9 percent to $3.02 trillion, boosted by a jump in individual and corporate tax receipts and a 31 percent rise in Federal Reserve earnings, mostly from the central bank’s massive bond portfolio.

Translation: The poor and middle class have suffered tax increases and benefit decreases. As everyone knows, this helps grow the economy.

As for those earnings by the Fed, they come from interest that would have gone into the private sector, i.e the economy.

Outlays grew just 1 percent to $3.50 trillion.

Translation: The amount of money we pumped into the economy grew only 1%.

Receipts last month grew 17 percent to $352 billion while outlays were up 9 percent to $246 billion.

Translation: We took more money out of the economy than we put in. That’s how we grow the economy. It’s complicated, so trust me.

“A nearly $500 billion deficit is nothing to celebrate,” said a spokesman for House Budget Committee Chairman Paul Ryan, a Republican who has been touted as a possible 2016 presidential candidate. “And CBO still projects that, in the coming years, the deficit will rise even higher to unsustainable heights.”

As regular readers of this blog know, you are being treated to a government con job, courtesy of the rich. They want deficits to be reduced, then reduced more, then reduced again, because reducing deficits widens the income/wealth/power gap between the rich and the rest.

The politicians are owned by the rich, and will say and do exactly as the rich tell them to say and do.

They count on us not understanding the difference between federal financing and personal financing. They want us to believe that in some unknown way, the U.S. federal government — the creator of U.S. dollars — can run short of U.S. dollars.

Yes, it’s GREAT NEWS — if you’re among the wealthiest .1% of Americans.

If you enjoyed the last recession, you positively will love the next one.

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
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 add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

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

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.

#MONETARYSOVEREIGNTY

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