–Praying for your neighbor’s pain Friday, Jul 25 2014 

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

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

As readers of this blog know, I believe the ACA (aka “Obamacare”) is a horrible law, as it is based on the “BIG LIE”:

– the lie that federal finances are the same as personal finances
— The lie that federal taxes pay for federal spending
— The lie that the Monetarily Sovereign U.S. government can run short of its own sovereign currency
— The lie that federal deficits inhibit economic growth and will cause hyperinflation

Rather than the convoluted Rube Goldberesque, inadequate ACA, that covers a few million additional people, while costing others more, Congress and the President should have voted to provide free, comprehensive Medicare for every man, woman and child in America (aka “single payer).

That said, ACA is a slight improvement over the previous system, in which millions of the poor had no health care insurance.

The right wing hates ACA, because:

– they want to defeat anything Obama and the Democrats have proposed
— the law benefits the poor and middle classes
— they didn’t think of it first (Oops, actually they did. It was called “Romneycare.”)

So in one of the nuttiest exhibitions of an increasingly nutty party, the Republicans in the House of Representatives voted 54 times (!) to defund ACA, all without any hope of success and without a viable alternative.

Surely, the right wing deserves a mention in the Guinness Book of Records — Insanity Section.

Today, continuing the madness, conservatives are giddy over the Halbig v. Burwell decision, which ruled that insurance subsidies could be provided only on state exchanges, not on federal exchanges. This would mean those states that did not create their own exchanges, but rather allowed the federal government to provide the exchanges, will not receive the subsidies.

The Surprise Obamacare Ruling That Wasn’t

Jonathan Gruber, an economics professor at the Massachusetts Institute of Technology, is widely known as one of the architects of both Romneycare and Obamacare. His models of the economic effects of the bill were frequently cited by journalists and the administration.

(Last year), Gruber made the following observation:

“What’s important to remember politically about this is if you’re a state and you don’t set up an exchange, that means your citizens don’t get their tax credits — but your citizens still pay the taxes that support this bill.

“So you’re essentially saying [to] your citizens you’re going to pay all the taxes to help all the other states in the country. I hope that that’s a blatant enough political reality that states will get their act together and realize there are billions of dollars at stake here in setting up these exchanges.

“But, you know, once again the politics can get ugly around this.”

In short, Gruber felt it was highly unlikely that a state governor could be so cruel and stupid as intentionally to fail setting up an exchange. But, Gruber didn’t count on depravity of the red state governors, for in fact, many of them have done just that.

In the event this decision is allowed to stand, it merely will focus a spotlight on the crass politics of the ultra right-wing. It will demonstrate the moral and financial bankruptcy of conservative politicians, who deprive their own state and their own citizens of federal financing and of health care insurance, just to prevent Democrats from having a success.

If the conservatives “win,” millions of Americans will be go without affordable health care, and dozens of states will lose billions of dollars. That will be their pyrrhic “victory,” and no amount of flag-waving and quasi-religious bible thumping will erase the stain.

The Republicans remind me of Hamas, whose plan has been to have their own Gaza citizens starved, maimed and killed, so they somehow can “win” the war and maintain power. To conservatives, punishing their own people is worthwhile, if it helps defeat anything Obama.

Right-wingers should pray the decision is overturned (another court already has rendered a counter-decision), lest the entire nation, at long last, clearly see shameful conservatism in action.

All that remains for the right-wing is to nominate Michele Bachmann and Sarah Palin as Presidential running mates.

Perfect.

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

10. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)

—–

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

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

–Do we owe China too much if China owes us too much? Wednesday, Jul 23 2014 

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

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

I enjoy reading a website called “The Daily Bell,” because it is entertaining — laugh-out-loud entertaining.

It is written by a man named Anthony Wile, “Chief Investment Advisor of High Alert Investment Management Ltd.” So far as I can tell, he seems to: Believe everyone should buy gold, love Ron Paul, love Peter Schiff, hate Keynes, hate “fiat” money and be ignorant of Monetary Sovereignty. And oh yes: Buy gold.

Recently, his site published an article titled, Another Chinese Economic Problem: Sky-High Debt Ratios:

China’s boom is to a large extent self-funded. The US can fund its enormous deficit because the dollar is the world’s reserve currency. Countries around the world hold dollars.

Wrong. Being the world’s reserve currency merely means that as a trade convenience, banks around the world hold dollars in reserve.

It has nothing to do with the federal government’s ability to “fund” its deficit, whatever that means.

The deficit is no burden, because our Monetarily Sovereign government has the unlimited ability to create dollars and to determine both the exchange value of the dollar and national inflation rates. That is what being “sovereign” entails.

Those Monetarily Sovereign nations (Canada, UK, Japan, Australia, China et al) whose currencies are not the world’s reserve, have the same powers.

China’s huge size and population and initial backwardness has allowed Chinese banking officials to treat China as a kind of miniature global system. The yuan may not be the world’s reserve currency but it’s China’s, and that’s been enough.

Wrong. Monetary Sovereignty, not size, are the keys to China’s ability to create its sovereign currency at will.

Then we come to the shockers:

The debt level] is up 20 percentage points of GDP since late 2013. The ratio has risen by 100 percentage points of GDP over the last five years. It has pushed debt to $26 trillion, more than the entire commercial banking systems of the US and Japan combined.

That should have been the clue. China is supporting a debt that is greater than “the entire commercial banking systems of the US and Japan combined.”

It sounds huge, but China seems to have had no problem supporting it. So, could the entire “debt-is-too-high” scenario simply be wrong?

The FT’s Jamil Anderlini points out here that the figure is very high for an emerging economy. Mature economies can handle a higher debt ratio for all kinds of reasons, not least because they have large assets to offset their liabilities.

Readers of this blog know that for a Monetarily Sovereign nation, the debt/GDP ratio is meaningless. Why? GDP does not pay for debt.

In the U.S., debt is the total of T-security deposits at the Federal Reserve Bank. To “pay off” this debt, the Fed transfers dollars from T-security accounts to holders’ checking account. No problem at all and no new dollars needed.

The federal government does not sell assets to pay its debts. Yellowstone Park and the Lincoln Memorial are safe.

Meanwhile, according to CNBC, China’s debt soars to 250% of GDP I sure hope China doesn’t have to sell the Yellow River.

This does not mean that China is about to crash. It has a state-controlled banking system. Therefore any bust scenario will play out in a different way, probably through much lower growth and two decades of Japanese-style extend and pretend …

We can inflate some of it away, or we can deflate into defaults and creditor haircuts. Pick your poison.

Forget the “bust scenario” whatever that imprecise term may mean. And forget about creditor haircuts, which are the famous province of the euro (monetarily NON-sovereign) nations.

Instead, think about “inflate some of it away.” This often misunderstood concept supposedly means: Inflation benefits debtors, because cheaper money can be used to pay debts.

Debts however, are not paid with purchasing value, but with face value. If China owes one trillion renminbi, it will have to pay one trillion renminbi, regardless of the purchasing power of those renminbi. Inflation has no effect on that.

But what if China owes one trillion dollars. It will have to exchange renminbi for dollars, and if the renminbi has lost value, China might have to spend more renminbi to buy the necessary dollars.

So what? China is Monetarily Sovereign. It can create unlimited renminbi to exchange for dollars, to pay its dollar debts.

Could this cause more inflation? Possibly. But remember, China has the same or even more, inflation-stopping tools at it disposal, as we do. China not only is sovereign over its sovereign currency, but as the author said, China has “a state-controlled banking system.”

The US in particular urged first the Japanese central bank and then the Chinese central bank to print additional currency that was used in one way or another to purchase US debt.

The currency was then redistributed in the US and recycled as consumer spending. The spending went back to first Japan and then China, thus fueling two “Asian miracles.”

Wrong, yet again. US debt cannot be purchased with foreign currency. To buy a T-bill, one must use dollars.

Further, dollars used to purchase T-securities are not “redistributed in the US.” That’s the “federal-taxes-pay-for-federal-spending” myth. Dollars in T-security accounts have but one place to go: To China’s checking accounts.

The only way American consumers can get their hands on those dollars is if China spends them here: i.e. China imports American goods and services. How has that been going?

In fact, it is U.S. dollar creation, not China’s borrowing, that funds American imports from China, the so-called “Asian miracles.”

This article provides us with further insights into the precipice on which China is now perched. We’ve usually commented on the eventual immanence of yuan price inflation; in fact, price inflation is already significant in Japan.

Only in the past year has Japan successfully and intentionally created inflation to fight its crippling deflation. Look at the trends:

monetary sovereignty
monetary sovereignty

The author would like you to believe that a large debt/gdp ratio (which has been the norm in Japan for many years) suddenly has caused the inflation Japan worked so hard to achieve.

The end result will no doubt be chaotic and ruinous. We will see then if those who have organized this deliberate, rolling insolvency shall have the wherewithal and credibility to create a kind of global Bretton Woods system that will reconfigure what is yet available.

And there it is: A gold standard will save us. Never mind that every time a nation has fallen into financial difficulties, it has dumped gold in an attempt to avoid a depression.

“The Daily Bell” is committed to selling gold to Anthony Wile’s clients.

And isn’t it ironic that for many years, debt hawks have decried the U.S. federal debt held by China. How often we have been told our debt to China is unsustainable and will break us.

Now suddenly, China’s debt to us has become unsustainable and will break China.

So we owe them too much and they owe us too much. Think about it. Does that make any sense, whatsoever?

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

10. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)

—–

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

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

–Fortress America. Have these people no souls? Wednesday, Jul 23 2014 

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

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

The “religious” right never stops warring against something or someone: Drugs, gays, women, blacks, browns, the poor, the sick, the homeless, the unemployed — these compassionate folks love fighting wars, especially against underdogs.

Currently, the war is against undocumented children.

House task force to recommend National Guard on border, faster deportations

House Republicans will call Wednesday for decisive action to end the border crisis, proposing a deployment of National Guard troops and accelerated deportation hearings for unaccompanied children inundating the U.S., said a Capitol Hill aide familiar with the plan.

Last I heard, there were about 50,000 undocumented children entering our nation of more than 300,000,000 — an average of 1,000 children per state. That’s an “inundation” of less than .00002 (two hundreths of one percent) of our population.

Looked at another way, last year 4 million children were born in the U.S. The undocumented children would add about 1 percent to that total.

Some indundation.

Is our Monetarily Sovereign nation, with our huge population and our unlimited ability to pay any bill of any size — at no cost to anyone — unable to care for these children?

Several of the recommendations focus on expediting the immigration hearing process for the unaccompanied alien children. Otherwise, most of them could stay in the U.S. for months or years before facing immigration judges

Oh, horrors! The children might stay here for months or years! They might even grow up here!! They might even become (ugh) neighbors.

So, indeed, send in the National Guard to prevent this dangerous situation, because . . . uh, well, . . . they’re mostly brown, aren’t they?

Republicans close to the task force said they were bracing for criticism from Democrats and immigration rights advocates who would accuse them of “militarizing” the border.

It’s like this. We don’t want to militarize the border. We just want to send in the National Guard to arrest children. See the difference?

Conservatives . . . have demanded that the administration seal the border before addressing other immigration issues.

The Obama administration is looking for facilities to shelter the children, while officials attempt to reunite them with relatives in the United States.

“Republicans have made clear that we support efforts to take care of these children, return them safely to families in their home countries and secure the border,” Mr. Boehner said.

Now fortress America must seal our border, a geographic and military impossibility and a national disgrace. Our right-wing President already has set records for deportations. What more do they want?

Future generations will remember with shame, that a paranoid political party wanted our population of 3 hundred million to crouch fearfully behind a giant, impenetrable wall (with guard towers and a “death strip,” perhaps?), lest we be “inundated” with children.

Is this the “home of the brave” described in our national anthem?

Rep. Boehner wants to “take care” of the children by deporting them to the horrors they risked their lives to escape. That’s known as “compassionate conservatism.”

Have these people no souls?

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

10. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)

—–

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

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 is the purpose of a gold standard? Tuesday, Jul 22 2014 

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

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

I just read a 2011 article in Forbes Magazine, titled, “What is the purpose of a gold standard?” (O.K., so I’m a bit late.)

Although the author, Nathan Lewis, has an axe to grind (he wrote the book: “Gold: the Once and Future Money”), he makes some interesting points:

If you ask the typical academic Keynesian economist this question, he would probably say that there was no purpose at all.

If you ask the typical gold standard advocate this question, he would probably respond with some vague platitudes like “gold is honest money,” or perhaps would argue that a gold standard prevents government debt issuance, or some such thing. They have, I would say, only an imprecise grasp of the purpose of a gold standard system.

I agree, with all he said.

The purpose of a gold standard system is to produce a currency of stable value.

Agreed. That is the stated purpose. Of course, a gold standard does not fulfill that purpose. And it begs the questions: What is a stable value and what is its purpose?

Now we can say what a gold standard does not do: It does not prevent panics, crashes, depressions and so forth, caused by various factors unrelated to currency value. It does not prevent government debt issuance – although it does prevent printing-press finance of government expenditures.

A gold standard doesn’t prevent, panics, crashes and depressions, but it produces a currency of stable value???

I’m not sure how that is possible, and not sure why anyone would want a currency of “stable value” during a depression, panic or crash, even if it were possible.

A gold standard system does not put some sort of artificial limit on the supply of money. You can have as much currency as your economy needs, within the constraint that the currency must be stable in value. In other words, you cannot over-issue money to the point that it loses value.

What does stable in value really mean? Does “stable value” mean no inflation? Or does “stable value” mean stable exchange rate? Two very different goals, neither of which can be accomplished with gold.

The Fed already controls inflation to it’s annual goal of 2.5% -3%, without gold.

Is there another, even better method of creating a currency of stable value? No, there is not.

Yes there is. Interest rates. Raising rates “strengthens” the dollar. It increases the demand for dollars, which increases their value.

That is why, when people desire a stable currency, they have used gold again and again over hundreds of years.

And they have gone off gold standards, “again and again.” The author doesn’t explain why. (It’s because limiting your nation’s money supply, by the accident of gold discovery and inventories, causes national insolvency — that “instability” the author preaches about.)

Is there some deficiency in the gold standard, such that we would be motivated to find another, better system? In other words, did gold’s value ever change so much that it caused some sort of significant economic problem? Did it fail in its role as a benchmark of stable value?

It is quite difficult to find evidence of any example, in the last three hundred years, of a major gold-instability event. It pretty much worked as advertised.

Yes, those gold-instability events are so-o-o-o-o hard to find — except right under our noses:

monetary sovereignty

And we have had many, many recessions, as well as the Great Depression, while we were on gold standards. (See graph)

“Worked as advertised”?

(Today’s) currency manipulation leads only to economic stagnation and decline. A capitalist economy simply works better with a stable currency than with an unstable one.

Again, he gives no definition of “a stable currency.” Is he talking about inflation or is he talking about foreign exchange. A currency can be stable in one and not stable in the other.

And what does he mean by “works better”? Is there some measure of this criterion?

The article demonstrates the usual gold-bug, vague generalities.

We are now on the path of currency decline, which will eventually end in hyperinflation if it is not arrested at some point.

Ah, the old hyperinflation myth, which always includes the words, “eventually” and “at some point.”

Of course “eventually” and “some point” may be centuries away. After all, we already have gone more than two centuries, through wars, depressions, recessions and yes, inflations, without hyperinflation — sometimes on a gold standard, sometimes not.

The U.S. federal government is being funded in large part with printed money, a red flag if there ever was one.

Dollars are not printed. The U.S. government is Monetarily Sovereign. The dollar (not the printed dollar bill) is its sovereign currency.

The U.S government not only can create as many or as few dollars as it wishes, but it can change the dollar/gold exchange ratio any time it wishes.

So, how is this freedom to change the dollar/gold ratio at will, any more or less “stable” than the ability to create dollars at will?

It isn’t.

We don’t have to put up with the endless chaos, punctuated by disasters and crises, characteristic of the floating currency arrangement.

When people are ready to return to a system of stable currencies, they will look for a way to do so, and discover once again that a gold standard system remains the best path to this goal.

Let’s get this straight. A Monetarily Sovereign nation is sovereign over its currency. It can do whatever it wishes with that currency.

It can run larger or smaller deficits. It can spend more or less. It can peg to another currency or to a precious metal, like gold or silver. It can “unpeg” at any time. It can set and revise its currency’s exchange rate with any other currency, a basket of currencies or with any element in nature.

A gold standard does not force a Monetarily Sovereign nation to do anything it can’t do when not on a gold standard. When a nation on a gold standard runs short of gold, it merely changes the money/gold ratio, as Nixon did on August 15, 1971.

So how can a gold standard be a path to a system of stable currencies?

It’s a path to one thing, and one thing only: Big profits for the brokers who hawk gold to the suckers who guess future prices.

Place your bets, folks. The wheel is spinning.

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

10. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)

—–

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

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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