–The greatest advertising/marketing campaign of all time. Monday, May 18 2015 

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

Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●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 poor.
●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.
To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Everything in economics devolves to motive,
and the motive is the Gap.

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

Try to imagine an advertising/marketing campaign that sold pianists on the notion that suffering in poverty improves their playing.

Can you think of one?

Try to visualize a campaign that convinced hundreds of millions of average people to give their money to very rich people as the way to achieve economic success.

What would such a campaign say?

See if you can create a campaign to persuade poor Americans that they actually are rich, and the U.S. federal government is poor, so it needs more money from them.

Any ideas?

And develop a campaign to brainwash Americans into believing that accepting money from the federal government is a sign of sloth, and those who accept such money are nothing but lazy lowlife “takers” and “socialists,” while the very rich are hard workers and “givers,” who deserve their maids, butlers, private jets, endless vacations, generous tax deductions and being first in every line.

What would be your slogan?

Finally, come up with a campaign to convince the populace that money is speech, corporations are U.S. citizens, adding financial stimulus causes joblessness, hyperinflation is a more immediate threat than recession, and private banks and businesses can be depended upon to protect consumers, without being monitored by the government.

Whew! It would take quite a campaign to sell rational people on such nonsense.

But that is exactly the campaign the Tea/Republicans have run. And it has succeeded.

Anytime I suggest the federal government pay for something — education, infrastructure, R&D, health insurance, Social Security, you name it — I receive mail from people whom I’m sure are not part of the upper 1%, calling me a communist and a socialist, and claiming I am asking for a repeat of the Weimar Republic, Zimbabwe and Argentina.

The Tea/Republicans were voted a Congressional majority, by people who are not rich. Their platform: Take from the poor and give to the rich.

Cut Social Security, cut Medicare, cut Medicaid, cut funding for roads, bridges and dams, cut aids to education, cut poverty aids, cut unemployment compensation, cut regulation of banks, brokers, pharmaceutical companies and food companies. Had you told me, ten years ago, that is a great advertising/marketing strategy, I would have told you you’re nuts.

Yet, here we are.

If you had told me I am so rich is should give more of my money to the federal government, while accepting less help from the federal government — if you had told me the rich pay too much tax, while the poor should be burdened with increased sales taxes like gasoline taxes or a flat tax — I would have laughed at you.

Yet here we are.

If you had told me hyperinflation (something we never have had) and deficits (something that adds growth dollars to the economy), are bigger threats than depressions and recessions (something we have had frequently, recently, and still not out of the last one), I surely would have scoffed.

Yet here we are:

Wall Street is on the verge of saying ‘recession’
Business Insider By Myles Udland

After the initial reading on gross domestic product showed the US economy grew just 0.2% in the first quarter, subsequent data has led Wall Street economists to take their outlooks for future Q1 revisions well into negative territory.

Current estimates from Bloomberg show Wall Street thinks the economy contracted by 0.8% to start 2015.

And now with the Atlanta Fed’s GDPNow tracker — which was spot-on in predicting first-quarter GDP — showing a tepid bounce back in the second quarter, the economy appears to be teetering on the edge of a recession.

A recession is defined as two consecutive quarters of negative growth.

If you look at the graphs below, titled “THE RECESSION CLOCK,” you’ll see that cuts in deficit growth always lead to recessions and that U.S. depressions tend to come on the heels of federal surpluses.

Well, here we are, cutting deficits, heading toward a surplus, and on the cusp of another recession. Will it be a worse recession than the last one?

Probably, since seemingly the populace has learned nothing from that experience, instead buying the Tea/Republican’s advertising.

So a hearty congratulations go to the Tea/Republican party for selling the populace on financial suicide as a way to protect our children and grandchildren.

I spent many years of my life in the advertising business, but I never saw an campaign this effective.

These guys could sell ice to Eskimos, or leeches to the anemic.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
The 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. Federally funded, 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. (Refer to this.)
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)

Initiating The Ten Steps sequentially 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.
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
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

What does the EU really want from Greece? Sunday, May 17 2015 

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

Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●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 poor.
●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.
To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Everything in economics devolves to motive,
and the motive is the Gap.

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

Greece Remains Defiant as It Seeks Creditor Deal This Week

Greece’s government said it won’t back down on election pledges to end austerity.

Nikos Filis, spokesman for the parliamentary group of Prime Minister Alexis Tsipras’s Syriza party said, “Our mandate from the Greek people is to reach an agreement where we stay in the euro area without harsh austerity measures.”

Have the Greek leaders caved from “end austerity” to “end harsh austerity”? Does this mean austerity has become O.K., so long as it isn’t “harsh” austerity (whatever that means)?

Tsipras’s so-called red lines include no further cuts to wages and pensions.

That’s all well and good, but what about taxes? Should the impoverished Greek people suffer even more taxes, to pay the EU bankers?

And what about all the other national needs a government is expected to provide for?

Like Chicago, Cook County and Illinois, Greece is monetarily non-sovereign. It has no sovereign currency. Greece uses a currency, the euro, over which it has no control.

Unlike the U.S., Canada, Australia, China and other Monetarily Sovereign nations, monetarily non-sovereign entities can and do run short of money.

Chicago has. Illinois has. Greece has. Greece is broke — more than broke it is deeply, hopelessly in debt.

There is no way Greece can earn enough euros to pay its debts — not this year, not next decade, not next century.

Like all monetarily non-sovereign governments, Greece has but two sources of money: Taxes and net exports.

But its people are too broke to pay more taxes, and Greece is a net importer. Year after year, billions of net euros flow out of Greece.

monetary sovereignty

So, since it’s people are broke and the world doesn’t want to buy what Greece is selling, how will Greece obtain the money to pay its debts?

The EU solution is for Greece to increase its debts by borrowing more.

If that makes sense to you, congratulations. You are well on your way to being an EU economist.

Of course, the EU cares nothing about Greece or the Greek people. The EU cares about two things only:

First, the EU wants to protect the banks. Rich bankers own and run Europe, and the European politicians are their well-paid puppets.

Second, the EU wants to protect the euro. It is the euro that has given the European politicians their well-bribed jobs at the expense of the taxpayers.

German Vice Chancellor Sigmar Gabriel said, “A “third aid package for Athens is only possible if reforms are also implemented. A Greek exit from the euro would pose a political challenge and not an economic one, but “no one would have trust anymore in Europe if, in the first big crisis,” a currency member quits, he said.

Translation: The word “reforms” means that the Greek people must suffer more, so that wealthy European bankers can be paid and the politicians can keep their cushy jobs.

The sole purpose of any Greek government is to benefit Greek citizens, not to benefit foreign bankers and politicians.

Here is what Greece’s politicians should do:

1. Re-adopt the drachma as Greece’s sovereign currency.
2. Pay all debts in drachmas on a 1-to-1 basis. Any creditors refusing drachmas would receive nothing.
3. Convert all Greek bank accounts containing euros to drachmas, on a 1-to-1 basis.
4. Cut Greek taxes. All remaining taxes would be paid only in drachmas.
5. Increase Greece’s spending (in drachmas) on social programs infrastructure, R&D and jobs programs.
6. Raise interest rates, if necessary to control inflation.
7. Cut borrowing. As a Monetarily Sovereign nation, Greece would have no need to borrow drachmas(Someone should tell this to American politicians). Sell bonds only as an interest rate control.

Whether Greece would stay in the EU as a non-euro member (ala the UK) is a question, though a relatively unimportant question. The EU at best, is a trading and travel convenience.

Considering the negative effects (i.e terrorism) that open borders have facilitated, many European nations may now wish they could control their immigration. (Visualize the U.S. having a no-deportations, open border with Mexico, and you’ll get the idea.)

From my vantage point, it seems that the EU wants more from Greece than Greece needs from the EU.

To the Greek people: Grexit just as fast as you can, and a year or two from now, you can thumb your noses at the foreign bankers.

Think about it: What do you have to lose?

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
The 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. Federally funded, 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. (Refer to this.)
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)

Initiating The Ten Steps sequentially 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.
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
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

–You never will know what you have lost: Part V. Bedbugs and bypass operations Saturday, May 16 2015 

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

Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●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 poor.
●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.
To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Everything in economics devolves to motive,
and the motive is the Gap.

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

This is the fifth in a series of posts titled, “You never will know what you have lost” (Part I, Part II , Part III) and Part: IV

Each post describes the invisible, but real costs of federal deficit reduction, aka “austerity.”

The first of the posts contained these paragraphs:

The list goes on and on: The lame who might have walked. The blind who might have seen. The children who might have given to America. The tornadoes and hurricanes and earthquakes that might have been foreseen.

The money that investors might have saved. The inventions never invented. The recessions and depressions that might have been avoided. The wars that might have been won or prevented. The life-saving drugs that might have been developed. The people who might not have died too soon. The beauty never created. The ideas lost. The better world that might have been.

You never will know.

Day by day, we die the death of a thousand invisible cuts, at the hands of people who know not or care not what they do. Like doctors who would treat anemia by bleeding the patient with leeches, they bleed the economy of its blood, its dollars, in the name of frugality.

In 1972, who would have guessed that 43 years later, we still would have no plans to walk there again, or to explore further there, or to build a station there?

Why did we stop? Because we were told the federal government — which has the unlimited ability to create dollars — somehow could not create sufficient dollars to pay for the trip.

And, we are told, deficit spending causes inflation, though no such relationship exists.

But really, who cares about such exploreation? What possible good is walking on the moon, or any other space exploration?? Or, for that matter, what possible good is any basic research that does not have an easily seen payout?

Of course, if such research isn’t done, you never will know whether anything has been lost.

Recently, in the Rosetta mission, the European Space Agency landed “Philae” on the surface of comet “67P.” Huh? Landing on one of the millions of comets and other bodies circling the solar system? How is that supposed to help me?

Here are excerpts from an article in NewScientist Magazine:

Rosetta’s real revolution is right here on Earth
From heart surgery breakthroughs to robotic sniffers and bedbug detectors, space tech spin-offs from the mission have a real world purpose

BEDBUGS suck our blood while we sleep and evade detection by dint of their nocturnal lifestyle and millimetre-scale bodies. A portable bedbug detector that sniffs out the chemical signals they send to one another is just one of many unusual spin-offs from the Rosetta mission.

“Space stands for low-weight, robust, temperature-resistant technology that has to work,” says Frank Salzgeber, head of technology transfer for the European Space Agency, which launched Rosetta.

Geraint Morgan of the Open University in Milton Keynes, UK, who helped design the Rosetta instrument, is also involved in another sniffer spin-off. This time the aim is to detect Helicobacter pylori, a bacterium that causes stomach ulcers and can raise risk of stomach cancer.

Other putative spin-offs using Rosetta’s gas-sniffing technology range from a system to monitor air quality on the UK’s proposed new fleet of nuclear submarines to a robotic nose that will “detect the complex, changing mixtures of airborne molecules encountered by consumers in everyday situations” – a device that the perfume company Givaudan wants to use in developing new fragrances.

It’s a similar story for Rosetta’s atomic force microscope MIDAS. As a dust speck passes through MIDAS, a finely controlled needle gently scans the grain’s geometry, creating a three-dimensional picture of it. The company that developed the system, Cedrat Technologies, based near Grenoble in France, is now using the needle’s sensitive actuators in a device for fiddly coronary artery bypass operations.

More prosaically, the company is working with skiing equipment manufacturer Rossignol to see whether a similar system could make skis vibrate less at high speeds.

A European Space Agency spin-off, Giaura, based in the Netherlands, is hoping to find terrestrial uses for the porous beads that scrub carbon dioxide from the air aboard the International Space Station. The idea is to capture atmospheric CO2 to boost the growth of greenhouse tomato plants, make carbonated drinks and cement or – in the first prototype – to pump it into aquariums to help keep water plants healthy.

Steel workers struggle with conventional underwear as cotton retains heat, and can easily catch fire from a stray spark. “Thunderwear” – prototype flame-resistant bras and underpants developed in collaboration with ESA – is made from Nomex, a fabric used in spacesuits.

The Vatican Library’s collection of 180,000 manuscripts and 1.6 million books is being digitised using a system developed by ESA and NASA to store data from satellites.

The anti-science ignoranti ask, “How does research for space help us in our terrestrial world?”

Bedbugs, cancer and ulcer treatments, air quality monitoring, perfume manufacture, coronary bypass, skis, tomato plant growth, carbonated drinks, cement, aquariums, steel workers’ underwear, digitized libraries — the list is as extensive as it is varied. And it is but the tip of the iceberg.

In the years to come, thousands of discoveries, inventions and processes will evolve from what our space efforts teach us. If there were no space effort, many of these discoveries and inventions would not exist.

But you never would know what you have lost — all because the government told you the federal deficit was “unsustainable” or will cause hyper-inflation (the two elements of the Big Lie.)

The bigger question is: What are we and our children losing now, every day, because deficit spending is cut?

It’s something important, that we are forced to do without. What is it?

We never will know.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
The 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. Federally funded, 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. (Refer to this.)
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)

Initiating The Ten Steps sequentially 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.
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
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

–Your budget brainwashing goes into overdrive Friday, May 15 2015 

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

Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●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 poor.
●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.
To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Everything in economics devolves to motive,
and the motive is the Gap.

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

As readers of this blog know, the primary goal of the upper 1% income / wealth / power group is to widen the Gap between them and the rest of us.

It is the Gap that makes them rich. Without the Gap no one would be rich. And the wider the Gap, the richer they are.

So the 1% bribes the politicians (via campaign contributions and promises of lucrative employment later), to cut spending that benefits the 99% and to increase taxes on the 99%.

They do this in the name of “fiscal responsibility.” That is the Big Lie in economics.

The media go along with it, because they are owned by the rich. The economists go along with it, because they are employed by the rich.

So, with the election season having already begun, you will see more and more brainwashing articles. Here is one from Investors.com, published by Investors Daily (Guess who their readers are):

Social Security Benefits Will Be Cut In 2017
BY JED GRAHAM, INVESTOR’S BUSINESS DAILY, 05/14/2015

No matter who wins the White House in 2016, there’s no getting around it: Social Security benefits will be cut starting in 2017.

A 1983 pact between President Reagan and the Democrat-led Congress to stave off an imminent Social Security financing crisis included a hike in the official retirement age from 65 to 67 somewhere in the far-off future.

Translation: Because there is a financing “crisis,” a benefit cut is inevitable, so don’t fight it. Just go along with it.

The retirement age rose to 66 in two-month increments between 2000 and 2005. Between 2017 and 2022, the retirement age will rise to 67.

In practical terms, workers claiming benefits at age 62 in 2022 and beyond will face a 30% reduction in the annual benefit that they receive throughout their lives. When the retirement age was 65, those claiming benefits at 62 suffered a 20% cut.

Translation: It’s a long way off, and anyway, it already has been happening, so it’s all just normal stuff. Just sit back and don’t worry about it. We’ll take care of everything.

Yet despite the coming rise in the retirement age, Social Security’s cash deficit is set to explode to $361 billion in 2025 from $74 billion in 2014, the Congressional Budget Office estimates.

The CBO’s estimates point to the $2.8 trillion trust fund being depleted late in 2029, after which program revenues will cover only about 75% of scheduled benefits.

Translation: Yes, we’re stealing money from you and your family, but we aren’t stealing enough.

See, we invented the mythical Social Security “trust fund,” which supposedly pays benefits, but it’s not a real “trust fund.” It’s an accounting fiction.

We could fill that “trust fund” any time we wished, but if we did, we couldn’t cut your benefits, which is our goal.

Something has to be done to put the program on a firmer footing, and potential Republican candidates have begun stepping forward with their ideas.

Chris Christie and Jeb Bush have both put themselves squarely behind a further increase in the retirement age. Christie specifically advocated a hike to age 69, closing a bit more than one-third of the financing shortfall.

Translation: Now that we have you softened up for widening the Gap, we really are going to sock it to you. You won’t get normal benefits unless you work 4 more years, and even then, only 1/3 of the so-called “shortfall” will be covered.

This gives us plenty of room to keep cutting you down. Hey, as long as you’re sucker enough to believe what we’re telling you, we’ll just keep cutting you.

And now we come to the ever-reliable (for cutting benefits to the 99%) Committee for a Responsible Federal Budget (CRFB).

You might recognize a couple of names on its board: Erskine Bowles and Alan Simpson. They are the authors of the notorious “debt reduction plan” (aka the “sequester”) that dramatically slowed our recovery.

Also on the board is the even more notorious Pete Peterson, the multi-billionaire founder of the Concord Coalition, and contributor to many anti-99% causes.

Here is what the CRFB says:

CRFB’S PLAN TO REPAIR THE HIGHWAY TRUST FUND

Yes, it’s another fake federal “trust fund” that isn’t a trust fund, but rather an accounting placeholder. It has no real trust fund functions. Unlike the way a real trust fund works, the federal government can increase or decrease this “trust fund” at will.

With the deadline for extending the surface transportation authorization just a few weeks away and Highway Trust Fund (HTF) bankruptcy approaching this summer, CRFB has released the The Road to Sustainable Highway Spending, a detailed plan to fix the HTF’s finances and bring greater rationality to the process of determining highway spending and revenue.

Translation: We begin our article with two lies:
1. O.K., the “trust fund” can’t go “bankrupt.” Bankruptcy is a legal term describing a legal process. What we really mean is that Congress will not pay for roads, and it’s using the mythical “trust fund” as an excuse.

(Visualize someone with a full refrigerator telling you they are starving because they won’t open the refrigerator door.)

2. And, O.K., our use of the word “sustainable,” never is explained, because there is no explanation. As a Monetarily Sovereign government, the U.S. never can run short of dollars.

In fact, it creates dollars merely by the process of paying bills. So everything is “sustainable” for the U.S. government.

But we don’t want you to know that.

While at least a short-term general revenue transfer is likely needed, it would be irresponsible to enact a transfer without equal-sized spending cuts or revenue increases to offset the cost.

Translation: The federal government easily could “transfer” dollars to the mythical fund (aka arbitrarily increase the balance shown), but that wouldn’t cut deficit spending. So what’s the point if it doesn’t widen the Gap?

Our plan consists of four main parts: a $25 billion general revenue transfer to pay for “legacy costs,” or projects authorized prior to this year that are being paid out of current funding; $100 billion from raising the gas tax by 9 cents per gallon starting in 2016; $50 billion from freezing highway spending for two years, then limiting it to the previous year’s revenue plus interest collections; and creating a “fast lane” for tax reform that allows lawmakers to identify alternative revenue sources to replace an equivalent amount of the other changes.

Translation: See that “raising the gas tax” buried in there? Guess who will pay that tax. You suckers of the 99%.

And see that “freezing highway spending” buried in there? That’s the way we solve the highway funding problem. Just don’t fix ’em. Clever, huh?

And see that “tax reform” and “alternative revenue sources” in there? By now you should have learned that anytime we say “reform,” or “alternative revenue sources” we mean “charge the 99% more.”
…………………………………………………………………………………………………………………………………………………………………………………………….

For the next 1 1/2 years expect to read and hear more and more about how the poor, impoverished federal government needs more and more dollars from us flush-with-cash 99%ers.

You may begin to arouse from the concussion caused by the Big Lie, and complain that while your personal income is stretched and limited, the federal government has the unlimited ability to create dollars.

But, this is what you’ll be told: “We can’t afford it because inflation, inflation, inflation, Wiemar, Wiemar, Wiemar.” That part of the Big Lie has worked for 75 years, so why stop now?

Watch as your budget brainwashing goes into overdrive.

Rodger Malcolm Mitchell
Monetary Sovereignty

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The 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. Federally funded, 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. (Refer to this.)
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)

Initiating The Ten Steps sequentially 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.
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
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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