–Open letter to Prof. Allen W. Smith, emeritus, Eastern Illinois University Wednesday, Feb 25 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.
●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.
==================================================================================================================================================================

Professor Allen W. Smith is professor of economics, emeritus, from Eastern Illinois University. He wrote an article titled, “Is the government able and willing to repay Social Security debt?”

His article demonstrates the false information being given, not only to the public, but to students of economics, and not only to students at Eastern Illinois University, but to students at universities all across America and the world.

Many of these students will become influential leaders, and so will pass this false information to other students and to the public. This is how the Big Lie has been, and is being, promulgated.

Here is my open letter to Professor Smith:

Dear Professor Smith;

Your article, “Is the government able and willing to repay Social Security debt”? appeared in the February 25th issue of the Sun Sentinel.

I knew immediately, from the title alone, that your article would be filled with inaccuracies, because our Monetarily Sovereign government is able to repay any debt of any size, though it may not always be willing.

The U.S. government, being Monetarily Sovereign, by definition is sovereign over its own currency. It can create as much as it wishes, any time it wishes.

The federal government never can run short of dollars, which it creates ad hoc, every time it pays a bill. The federal government never needs to ask anyone for U.S. dollars — not you, not me, not China.

Here are a few excerpts from your article, and my comments:

“The short-term solvency of Social Security is in the hands of the federal government. Enough payroll taxes have been paid to cover full benefit payments until 2033. But $2.7 trillion of that money was taken by the government and spent for non-Social Security purposes. The spent money was replaced with government IOUs, called Special Issues of the Treasury.”

Social Security is an agency of the U.S. federal government, which can pay any size bill at any time, simply by pressing a computer key. The federal government pays its bills by sending instructions (not dollars) to each creditor’s bank, instructing the bank to increase the balance in the creditor’s checking account.

At the moment the bank complies, and not before, dollars are created.

There is no financial limit to the amount of instructions our Monetarily Sovereign federal government can send to banks. The federal government never can be insolvent, and so, no federal agency can become insolvent, unless Congress wills it.

The White House, Congress, and the Supreme Court are three of the 1,000 federal agencies, for which no federal tax is collected. Yet they cannot become insolvent.

How then could Social Security (which does have a federal tax — FICA — collected on its behalf) become insolvent? Clearly, it cannot.

“The financial condition of the United States government is dire. The national debt, which first reached $1 trillion in 1981, is today more than $18 trillion. The credit of the United States government today is not nearly as good as it was in 1981.”

This statement is based on the popular, though false, belief that federal finances are like personal finances, where debt is a burden. For our Monetarily Sovereign government, debt is no burden whatsoever.

First, as we have said, the federal government has the unlimited ability to pay any bill denominated in its sovereign currency, the dollar. But more importantly, federal debt is considerably different from personal debt (and different from city, county and stated debt).

To “lend” to the federal government, you buy a T-security (T-bill, T-note, T-bond, etc.). You instruct your bank to transfer dollars from your personal checking account to a T-security account at the Federal Reserve Bank. You become a depositor at the FRB.

To repay your “loan,” the FRB does what any bank does when it pays a depositor: It transfers existing dollars from your T-security account to your personal checking account.

It’s a simple asset transfer. No new dollars are needed, except for interest, which our Monetarily Sovereign government creates ad hoc.

What most people do not understand, though I’m sure you do, is that all bank deposits are considered bank debt. So when you put money into your bank savings account, your bank’s debt increases by that amount.

Yet your bank boasts about the size of its deposits, while the public wrings its hands about the size of federal “debt” — which is nothing more than the total of deposits in T-security accounts at the FRB. Federal “debt” = deposits in T-security accounts at the FRB. Debt is bank deposits.

If you and your colleagues would more properly refer to federal “deposits,” rather than federal “debt,” all the concerns about federal “debt” would disappear.

“The statement, ‘Social Security has enough money to pay full benefits until 2033,’ is made over and over as proof of Social Security’s short-term solvency. It has been repeated so many times that almost nobody questions its validity. But it is not true.

“Social Security does not have the means to pay full benefits, even for the current year. Since 2010, the cost of paying full Social Security benefits has exceeded tax revenue, and the gap is widening at an increasing rate.”

The U.S. government became Monetarily Sovereign (on August 15, 1971). Federal taxes no longer fund federal spending.

Even if all federal tax collections fell to $0, the federal government could continue spending, forever. It simply would continue to send instructions to banks, telling the banks to increase checking account deposits, thereby creating dollars.

This means, FICA does not fund Social Security benefits. FICA could, and should, be eliminated, and Social Security benefits should be increased.

Again, you confuse federal finances with personal finances.

“Each year, the government has to borrow money to fill the gap. Without the borrowing, full Social Security benefits could not currently be paid.”

Absolutely, 100% false. The federal government never needs to ask anyone for its own sovereign currency. It does not need to borrow money to “fill the gap,” or for any other reason. Nor does it need to levy taxes so to pay its bills.

Taxation and the issuance of T-securities (falsely known as “borrowing”) are relics of the gold standard days, when the federal government was not Monetarily Sovereign.

“On Oct. 3, 2013, President Obama warned that unless the debt ceiling was raised Social Security checks would not go out on time.”

Sadly, the President of the United States, every member of Congress, most media and most mainstream professors tell the Big Lie — the lie that federal spending relies on federal taxing.

Even more sadly, some politicians may simply be ignorant of the facts, but the professors are not. But have been paid to go along with the Big Lie.

The rich — the upper .1% — are rich because of the Gap between them and the rest of America. If there were no Gap, no one would be rich, and the wider the Gap, the richer they are.

So, the primary goal of the rich is not just to make more money, but rather, to widen the Gap, either by lifting themselves or pushing the rest of us down — or both.

The rich bribe those of influence. They bribe the President and Congress via campaign contributions and promises of lucrative employment later.

They bribe the media via ownership. They bribe mainstream economists via contributions to universities. They even fund “independent” think tanks to spread the gospel (i.e. the Big Lie) that benefits to the poor- and middle-income people depend on taxes. And since current taxes are less than benefits, either the benefits “must” be decreased or taxes “must” be increased.

“David Walker, the Comptroller General of the GAO, tried to make it clear that the trust fund did not hold any real bonds. He said, ‘There are no stocks or bonds, or real estate in the trust fund. It has nothing of real value to draw down.'”

Of course. To the public, this may sound shocking, but it always has been true. In fact, the Unites States Federal Government neither has nor needs dollars. It pays its bills, not with dollars, but by sending instructions, ad hoc, to banks, telling the banks to create dollars by increasing the balances in checking accounts.

If you receive a check from the federal government, that check is not money. It is a set of instructions, telling your bank to increase the balance in your checking account.

“President Bill Clinton’s 2000 budget proposal included a statement of just what the IOUs truly were: ‘The Social Security Trust Fund does not consist of real economic assets that can be drawn down in the future to fund benefits.

Instead, they are claims on the Treasury that, when redeemed, will have to be financed by raising taxes, borrowing from the public, or reducing benefits or other expenditures.'”

President Clinton, who like President Obama today, was owned by the rich, so he said what the rich told him to say. His comment is a clever combination of truth and the Big Lie.

It is true that “The Social Security Trust Fund does not consist of real economic assets that can be drawn down in the future to fund benefits. Instead, they are claims on the Treasury . . .” But the rest is the Big Lie.

These claims on the Treasury will not need to be “. . . financed by raising taxes, borrowing from the public, or reducing benefits or other expenditures.” That is what the rich want the populace to believe.

“Raising taxes and reducing benefits” is exactly how the Gap has been widened over the years.

Then professor, you finish your article with your final summation of the Big Lie:

“If the government repaid its debt to Social Security, there would be no short-term Social Security solvency problem.”

The government does not owe a debt to its own agency. Like the federal government as a whole, Social Security neither has nor needs dollars. It pays all its debts by sending instructions to banks.

Similarly, there is no “Social Security solvency problem.” This is an invention by the rich, to justify increase in taxes on the rest of us, of reducing benefits to us.

The politicians, had they any morals, would be ashamed at what they are doing. The media too, which pretend independent news dissemination, should be ashamed.

But, the most ashamed should be the mainstream economics professors, who spend their lives investigating the facts, then turn their backs on the facts and teach eager young minds the Big Lie.

For shame, Professor Smith! For shame, Eastern Illinois University! For shame, America’s academic institutions!

For shame!

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

–Dumb and dumber: Take this three-question, one-minute IQ test. Sunday, Feb 22 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.
●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.
==================================================================================================================================================================

Here is a simple IQ test you can take in just one minute. First, a bit of background:

Rush Limbaugh blames measles outbreak on immigrant children
By Jon Greenberg on Thursday, February 5th, 2015

The children coming across the southern U.S. border “were never examined after they got here and quarantined if they had a disease. They were just sent out across the country. Many of them had measles … We now have an outbreak of it all because of our immigration policy.”

— Rush Limbaugh on Tuesday, February 3rd, 2015 in a broadcast of the “Rush Limbaugh Show”

Other conservative voices have linked measles to illegal immigrants. The conservative website The Blaze wrote about Rep. Mo Brooks, R-Ala., who said the disease was brought into the country by “illegal aliens.”

The common thread in these statements is the idea that these children were never examined, that they had measles, and Washington took no precautions before allowing them to stay.

None of that holds up, however. (And)Limbaugh provided no evidence, probably, because no evidence exists. The children who came in from Central America were examined and vaccinated as part of a standard routine.

The protocol was to provide “vaccinations to all children who do not have documentation of previous valid doses of vaccine.”

Limbaugh also claimed that these children were never quarantined if they had a disease. The reverse is true.

Children receive additional, more thorough medical screening and vaccinations at ORR shelter facilities. If children are found to have certain communicable diseases, they are separated from other children and treated as needed.

And interestingly:

Further undermining Limbaugh’s case (we reached out to his show and did not hear back) are the vaccination rates for the key countries involved in the influx of unaccompanied minors — El Salvador, Guatemala, Honduras and Mexico.

The latest data from the World Health Organization runs through 2013. As this table shows, over the past four years, the vaccination rates among those countries are on par or exceed the rate in the United States.

Country: Measles, mumps, rubella vaccination rate: 4-year average
El Salvador: 92 percent
Guatemala: 90 percent
Honduras: 94 percent
Mexico: 95 percent
United States: 92 percent

As a final point, the information on the measles cases this year reported to health departments fails to suggest a link to immigrant children. The Centers for Disease Control and Prevention said that most of the 102 cases stem from exposures at Disneyland in California.

Past measles outbreaks have not been linked to Central America. Last year, Ohio saw 382 measles cases. According to state health officials, that began when unvaccinated travelers came back from the Philippines and spread the disease within the local Amish community.

The CDC said nearly 80 percent of the cases that year were among people who chose not to be vaccinated due to their religious beliefs.

And now for your three question IQ test: “Yes” or “No”:

1. Do you regularly listen to Rush Limbaugh and believe much of what he says?

2. Do you get your information from Donald Trump, Sean Hannity or other right wing “news” sources?

3. Do you refuse to vaccinate your children?

Scoring:
One “Yes” answer: Dumb
Two “Yes” answers: Dumber
Three “Yes” answers: Hopeless. You need a full-time keeper and should be kept sedated for your own safety.

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

–Thirsty? Dirty? Blame the lying politicians and austerity Friday, Feb 20 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.
●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.
==================================================================================================================================================================

The previous post is titled, “How austerity makes you die too young.”

But austerity does much more then bring on an early death. It also makes you miserable while you’re alive:

California eyes drought rules to curb “galling” waste of water at restaurants

Officials are considering new water restrictions as California’s drought drags on, possibly forcing residents to ask for water at restaurants and for fresh towels and sheets at hotels.

The board last summer imposed emergency regulations prohibiting Californians from washing their cars with hoses that don’t shut off and limiting how often they can water their lawns.

“I find it galling when whole sets of water glasses end up on a (restaurant) table, even in Sacramento,” said Felicia Marcus, chairwoman of the board.

The board has the sweeping power to define when water use is unreasonable, and it could eventually expand the definition to include using drinking water to maintain golf courses and cemeteries. Marcus said the board would likely take smaller steps first, such as prohibiting decorative outdoor water fountains.

Some proposals presented Tuesday targeted businesses, such as telling hotels not to automatically provide guests with fresh towels and sheets every day. A recent analysis from NASA satellite data concluded that the state would need 11 trillion gallons of water to recover from its three-year dry spell.

That’s how bad it has become. Water you leave in restaurant glasses is “galling.” Brown the golf courses and cemeteries, and no more decorative water fountains (most of which probably recycle water, but when things get nutty, the nuts rule).

But let’s get this straight: THERE IS NO SHORTAGE OF WATER. The oceans are filled with water. There is a shortage of potable water.

Israel’s desalination program averts future water crises
Through desalination, Israel has created the possibility of transforming the region in ways that were unthinkable just a few years ago.

Situated in the heart of the Middle East, Israel is in one of the driest regions on earth, traditionally relying on a short, rainy season each winter to replenish its limited supplies. But rainfall only covers about half of Israel’s water needs, and this past winter, that amount was far less.

(But,) after experiencing its driest winter on record, Israel is responding as never before — by doing nothing.

Thanks in large part to an aggressive desalination program this perennially parched land (has been transformed) into perhaps the most well-hydrated country in the region.

“We have all the water we need, even in the year which was the worst year ever regarding precipitation,” said Avraham Tenne, head of the desalination division of Israel’s Water Authority.

Since 2005, Israel has opened four desalination plants, with a fifth set to go online later this year. Roughly 35 percent of Israel’s drinking-quality water now comes from desalination. That number is expected to exceed 40 percent by next year and hit 70 percent in 2050.

The Sorek desalination plant, located roughly 15 kilometers (10 miles) south of Tel Aviv, provides a glimpse of that future.

Avshalom Felber, chief executive of IDE Technologies, the Sorek desalination plant’s operator, said Sorek is the “largest and most advanced” of its kind in the world, producing 624,000 cubic meters of potable water each day.

He said the production cost is among the world’s lowest, meaning it could provide a typical family’s water needs for about $300 to $500 a year.

Israel has already taken some small steps in that direction. Last year, it signed an agreement to construct a shared desalination plant in Jordan and sell additional water to the Palestinians.

Little Israel, surrounded by desert and enemies, can afford to desalinate enough water for its citizens, and even sell water to the people who have sworn to destroy it.

Big America, built with oceans on both sides, many huge rivers and with lots of local rainfall, cannot afford to quench our thirst.

Why? Simple. According to Republican leader John Boenher, “We’re broke.” And according to Democrat President Barach Obama, “We have to live within our means.”

Both statements are examples of the Big Lie. We are not broke, never can be broke and never will be broke.

Also, being Monetarily Sovereign, we have no “means” to live within. The federal government creates unlimited dollars ad hoc, by the act of paying bills.

Contrary to what the media and the politicians tell you, federal financing is nothing like private financing.

But wait! Help is on the way:

Israeli company building America’s largest desalination plant in California
Israel is a technological leader in the field and a model that points the way for drought-stricken California.

An Israeli company is involved in building what is expected to be the largest seawater desalination plant in the Western Hemisphere, the Orange County Register reports.

“This is the one supply that San Diego County is investing in that is truly drought-proof,” said Poseidon senior VP Peter MacLaggan.

Not everyone is happy with the project, due primarily to the high energy consumption and environmental impact of desalination. Katalyn Voss, a water policy fellow at the University of California Center for Hydrologic Modeling in Irvine, says that desalination should be considered in California only after other measures are exhausted.

Let’s put these three articles together:
1. California is so low on water, that emergency water-saving regulations are in place and more will be implemented.
2. Little desert-nation Israel produces all the water it needs, and even sells water to its enemies.
3. A professor at the U of California says desalination should be considered only after other measures are exhausted.
4. The U.S. is “broke,” so monetarily NON-sovereign San Diego County will have to buy a plant from Israel.

Apparently, potable water is not important enough for the U.S. to produce it. Remember: The U.S. could pay for all the desalination plants it needs, at the press of a computer key.

But the rich want the rest of us to suffer a million little and not-so-little hardships, so as to widen the Gap between them and us. They pay the politicians, the media and the mainstream economists to tell the public that federal dollars are limited.

As farmers’ crops desiccate and grandma’s cemetery plot browns, think of the lies you have been told and the lies you believe.

Thirsty?

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

Thursday, Feb 19 2015 

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