–The debt snakes slither in again. Don’t listen. Tuesday, Jul 21 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.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•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.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

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

Adam and Eve learned that snakes are sneaky liars. They not only lie outright, but they twist the truth into lies. And so it is with the debt snakes, as during election time, they once again try to deceive the populace.

Way, way back in 2009, we published, “Federal Debt: A ‘ticking time bomb’.” Here is how the article began:

Popular faith holds that the federal debt is a ticking “time bomb,” ready to explode into inflation and high interest rates, and destroy our economy.

Here are a few references, beginning 70 years ago.

Even with the end of the gold standard in 1971, arguably the most significant economic event since the Great Depression, the language never changes — as though 1971 were a non-event.

Sept 26, 1940, New York Times: “. . . unless an end is put to deficit financing, to profligate spending and to indifference as to the nature and extent of governmental borrowing, the nation will surely take the road to dictatorship, Robert M. Hanes, president of the American Bankers Association asserted today. He said, “insolvency is the time-bomb which can eventually destroy the American system . . . the Federal debt . . . threatens the solvency of the entire economy.”

The post goes on to quote articles from 1960, 1983, 1984, 1985, 1987, 1989, 1992, 1985, 2003, 2004, 2005, 2006 and 2007 (subsequently added, articles dated 2010 and 2011), all referring to the federal debt as a “time bomb.”

Just last year, Forbes ran an article titled:

“Defusing Washington’s Debt Bomb” written by Sen. Rob Portman.

Under the Constitution, only Congress can authorize the United States to borrow money to pay its bills. And since World War I, Congress, recognizing the danger of runaway borrowing, has placed a ceiling on the amount of debt Washington can accumulate.

Going over the debt limit is not the right solution. But neither is simply raising the debt limit without doing anything to address the underlying problem, especially at a time of record debt.

The American people understand this. Think about it as parents: when one of our kids goes over the limit on the credit card, we don’t just pay the bill and ask the bank to raise the limit. We take steps to address the overspending problem and make sure it doesn’t happen again.

And the beat goes on. In May, 2015,The National interest published:

Why America’s Debt Bomb Won’t Explode… Yet

Here we are, 75 (!) years after that 1940 article, still frightened, waiting for that ticking time bomb to explode.

Never mind that the U.S. federal government, being Monetarily Sovereign, never can run short of dollars to pay its bills.

Never mind that even if all federal tax collections fell to $0, the U.S. federal government could continue spending forever.

Never mind, that being Monetarily Sovereign, the federal government creates dollars ad hoc, by paying bills and does not need to borrow — ever.

And never mind that despite massive federal spending, inflation actually is below the federal goal of 2.5%, and easily is controlled by the Fed via interest rates.

monetary sovereignty

Never mind that federal deficits are surpluses for the economy and necessary for economic growth, and that federal surpluses lead to recessions and depressions:

1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819.
1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837.
1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857.
1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873.
1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893.
1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929.

NEVER MIND THAT THERE IS NO “DEBT BOMB.” It’s a myth.

Never mind all these facts, because the debt snakes pay no attention to facts.

And here comes another one:

Kasich to push balanced budget amendment in 6-state tour
By JAMES NORD – Associated Press – Wednesday, January 21, 2015

Ohio Gov. John Kasich has kicked off a six-state tour pushing a balanced budget amendment to the U.S. Constitution with a meeting in South Dakota in which he called on state lawmakers to get behind the proposal.

“Who the heck thinks we should keep spending without any regard to the consequences?” Kasich, a Republican, asked the South Dakota gathering. “I don’t care … if you’re a Republican, a Democrat or a Martian. This is not what we should be doing as a nation. It’s irresponsible.”

Exactly why is it “irresponsible,” Governor Kasich? Will the federal government be like Greece and the other euro nations, unable to pay their debts?

No, Greece and the other euro nations are monetarily NON-sovereign. They have no sovereign currency.

Like our cities, counties, states, businesses and people, all of whom also are monetarily NON-sovereign, Greece can run short of the currency it uses.

The U.S. federal government, being Monetarily Sovereign, has the unlimited ability to create its sovereign currency, to pay its bills.

Well Governor Kasich, is it “irresponsible” (and a “ticking time bomb”) because our children will have to pay the federal debt?

No, federal taxes do not pay for federal spending. The federal government creates dollars every time it pays a bill. The federal debt has no effect on the federal taxes our children will pay.

Or is the debt “irresponsible” and a “ticking time bomb” because it will cause inflation?

No, inflation is caused by a multitude of factors, primarily oil prices and low interest rates.

Here is what Kasich’s nonprofit advocacy group, Balanced Budget Forever says:

In just over a year, five states have passed resolutions in support of a convention to set a balanced budget process in motion. Today, there are now 27 states committed to a convention.

Just 7 more states are needed to trigger change.

While a member of Congress, Kasich supported a federal balanced budget amendment and, as chair of the House Budget Committee, successfully led efforts to balance the federal budget in fiscal years 1998, 1999, 2000 and 2001, the first balanced budgets since 1969.

Yes, and those balanced budgets (actually surpluses) led directly to the recession of 2000. (Almost every recession in recent history has been introduced with reductions in federal deficit growth.)

monetary sovereignty

And we’re coming closer and closer to passing a disastrous “balanced budget” amendment, that will push America into the same horrifying austerity problem Greece suffers from.

Knowing that federal deficit spending adds dollars to the economy, and so is stimulative, and the lack of deficit spending leads to recessions and depressions, why do Kasich and his group insist that the U.S. commit financial suicide by eliminating deficit spending?

I believe there are two reasons:

1. He wishes to become President, and in the crowded Republican field, “balanced budget” gives him a talking point. He relies on the public not understanding the difference between the Monetarily Sovereign government vs. you and me (and states, counties and cities) which are monetarily NON-sovereign.

To the economically ignorant populace, debt is bad and surpluses are good. The people don’t realize that federal debt is the economy’s surplus. So Kasich can position himself as a prudent politician, when in fact, his balanced budget would lead to a recession far worse than what we had in 2008 (a severe recession cured by federal deficit spending.)

2. Recessions generally affect the populace more than the super rich. Recessions cause unemployment among the lower paid, which leads to reduced pay, which in turn, leads to higher profits for corporations and wealthy shareholders. (Note how the stock markets rose dramatically after the most recent recession, while employment lagged.)

All of this widens the Gap between the rich and the rest, and it is the Gap that makes the rich rich. (Without the Gap, no one would be rich, and the wider the Gap, the richer they are.)

So it is the super rich, who bribe the politicians (via campaign contributions and promises of lucrative employment later) to widen the Gap. The super rich also bribe the media (via ownership) and the economists (via contributions to universities and “think tanks”) to support a balanced budget — all to widen the Gap.

Now, with the Presidential campaign in full swing, we again see the debt snakes slithering in, to steal our livelihood and our children’s futures, while pretending to be oh, so frugal.

Yes, they are frugal, if being frugal means taking from the poor and giving to the rich.

While both political parties are guilty, the Tea/Republicans especially, work against anything that helps the middle and the poor — Social Security, Medicare, Medicaid, food stamps, aids to housing, aids to education. Even the abortion issue has a money twist, for the rich always are able to obtain abortions, while the poor are forced to give birth to unaffordable children.

The next time you read or hear a politician, economist or media writer promote a federal balanced budget know this: Either he/she is ignorant of economics or has been paid by the rich to impoverish you and yours.

The debt snakes are slithering in again. Adam and Eve were punished severely for listening to a snake. Don’t let it happen to you.

Don’t listen to debt snakes.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

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

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

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
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

–Has the IMF admitted the obvious? Close, but no cigar. Thursday, Jul 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.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•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.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

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

In a speech ten years ago, I said, “Because of the Euro, no euro nation can control its own money supply. The Euro is the worst economic idea since the recession-era, Smoot-Hawley Tariff. The economies of European nations are doomed by the euro.”

Since that date, this blog repeatedly has said, in various ways, “For the euro nations, long term survival requires one of two, and only two, events:”

“1. Adopt some form of a sovereign currency, and become Monetarily Sovereign
or
2. The EU give (not lend) euros to its member nations as needed (i.e. political merger).

And now late, to the party, comes the International Monetary Fund:

The I.M.F. Is Telling Europe the Euro Doesn’t Work

The International Monetary Fund’s memo on Greek debt sustainability, explain(s) why the I.M.F. cannot participate in a new bailout program unless other European countries agree to huge debt relief for Greece, has provided the “Emperor Has No Clothes” moment of the Greek crisis, one that may finally force eurozone members to either move closer to fiscal union or break up.

The I.M.F. memo amounts to an admission that the eurozone cannot work in its current form.

It took them all these years to admit the obvious — that monetarily non-sovereign nations (nations that cannot control their money supply) must have income — money coming from outside their borders — in order to survive long term.

You are monetarily non-sovereign. You must have income in order to pay your bills, long term. You can drain your savings for a while, but eventually your savings will run out.

Businesses are monetarily non-sovereign. Long term, they must have income. They too, can drain their savings, but only for a while.

Cities, counties and states are monetarily non-sovereign. Long term, they must have income, too. Taxes won’t suffice, for taxes are not income. They are a drain on citizens’ savings.

For cities, counties and states, income can take three forms:
1. Net exports of goods and services
2. Tourism
3. Payments from a higher government (Cities receive from counties and states; states receive from a Monetarily Sovereign federal government)

When a nation takes on the euro, it surrends the single most valuable asset any nation can have: Its Monetary Sovereignty.

More valuable than natural resources, population or education, Monetary Sovereignty allows a nation to buy anything and to pay any bill.

One might have hoped that at long last, the IMF finally will have admitted this most basic of all economics facts.

It lays out three options for achieving Greek debt sustainability, all of which are tantamount to a fiscal union . . .

Yes, a fiscal union, like a United States of Europe.

But just as we hoped to believe the IMF has begun to say the obvious, it disappoints us:

. . . an arrangement through which wealthier countries would make payments to support the Greek economy.

Not coincidentally, this is the solution many economists have been telling European officials is the only way to save the euro — and which northern European countries have been resisting because it is so costly.

The three options laid out by the I.M.F. would have different operations, but they share an important feature: They involve other European countries giving Greece money without expecting to get it back.

No, no, no.

Where would the “other European countries” obtain the euros they would be expected to give to Greece and the other impoverished euro nations? Answer: They would have to give less to their own citizens.

To save the euro, a failed concept, the IMF has proposed a sure-to-fail concept: Monetarily non-sovereign nations supporting other monetarily non-sovereign nations, requiring austerity for all.

The rich people who run Europe are not satisfied with enslaving some of Europe’s citizens. They have hatched a plan to enslave all of Europe’s citizens, even those in nations that, to date, have avoided recession and depression.

The troika [European Commission (EC), the European Central Bank (ECB)and the International Monetary Fund (IMF)] together are Monetarily Sovereign. They have the unlimited ability to create euros.

They have the unlimited power to give (not lend) euros to member nations, thus growing the economies of those nations.

Already having impoverished much of the eurozone, the IMF proposes enslaving the entire eurozone.

One of the debt relief options proposed by the I.M.F. is “explicit annual transfers to the Greek budget,” that is, direct payments from other governments to Greece, which it could use to make its debt payments.

A second option is extending the grace period, during which Greece would be relieved of the obligation to make interest or principal payments on its debt to European countries, through the year 2053 — at the expense of Greece’s creditors, most of which now are other European governments.

The third option floated by the I.M.F., (is) a cancellation of a portion of Greece’s debts (to other nations).

The memo makes clear what the real cost to Europe of continued eurozone membership for Greece is: If European governments want to keep Greece in, they’re going to have to put up a lot of money in one non-loan form or another, money they will give Greece that they never get back.

The entire concept is ludicrous. Greece is deeply in debt. Its money supply has been drained.

Greece cannot pay its debt out of income, because it has no net source of income, and being monetarily non-sovereign, it cannot create euros.

The IMF “solution”: Force other monetarily non-sovereign nations to drain their own money supplies.

In short, rather than trying to make all euro nations rich, the IMF proposes to make all euro nations poor.

It is a concept that even the uneducated would realize is stupid . . . except for one thing: The troika is not stupid. They know exactly what they are doing.

The goal is power. By impoverishing more euro nations, the troika (the only entity with the unlimited power to create euros) increases its own relative power.

Why settle for just the Greek people crawling and begging for food, clothing and housing, when one can have all Europeans on their knees, at your mercy?

It is a cruel plan devised by cruel people, who have seized on the opportunity to conquer Europe, not by force of arms, but by force of money — a bloodless coup that will dominate a continent.

Is it any wonder that the thought of Greece, freeing itself from the chains of euro-austerity, had the troika in such a panic.

Unfortunately, the government of Greece seems to have failed its own people, and sold them into slavery.

The Greek people voted to free themselves. They voted against austerity. They tried.

Close. But no cigar.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

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

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

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
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

–Why the right wing is like my Toffee. Wednesday, Jul 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.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•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.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

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

Years ago, a Shetland Sheep dog (Sheltie) named Toffee lived in my house. Those of you familiar with Shelties know they are small dogs, and unlike most small dogs, they are of very mild temperament.

I never have heard of a Sheltie biting anyone, and even a bark or a growl would me most unSheltie-like.

Shelties are shepherding dogs, and as with most shepherd dogs, they are known to be intelligent. In fact, the Border Collie, a close relative, may be the smartest dog of all.

Despite his mild manner, Toffee barked, in his laughable, high-pitched little yips, but only when the doorbell rang. Though most dogs bark at the door, we wondered wondered why Toffee did.

He was so tuned to the family, and so understanding of what we wanted, he generally he did only as he was trained to do, and simply didn’t bother to do what we didn’t train him to do — he was that obedient and sensitive to our desires (and perhaps lazy, too).

He never barked at anyone. And we never had trained him to bark at the door. After all, his yips wouldn’t have scared a mouse, let alone a burglar.

We finally realized he actually had been trained. Whenever we were away from home, and someone came to the door, he must have barked. And when no one answered, the person went away.

Toffee was mildly protective of the people who fed him, and of his territory, so he must have come to believe it was his barking that sent the stranger away.

And that is exactly how paranoid right-wingers (redundancy?) are being trained:

Texas Finally Chooses The Brave Souls Who Will Monitor The Military Takeover

Gov. Greg Abbott (R) had responded the most forcefully out of all the governors presiding over states where the training exercise, dubbed “Jade Helm 15,” was scheduled to take place by requesting that the State Guard monitor the exercise.

He made the request in April, just a day after more than 200 concerned residents of Bastrop, Texas peppered a U.S. Army spokesman with questions about whether “Jade Helm 15″ was really a cover for the implementation of martial law.

Note to the 200 “concerned residents of Bastrop, Texas et al: Come on, folks. Get real. Even a cowboy with half a brain must realize that the federal government is not planning to impose martial law on your town, your county, your state or your nation.

The State Guard is expected to brief the governor’s office once a day, offering a review of the past 24 hours’ activity as well as a rundown of what’s scheduled to happen in the next 72 hours.

In his letter ordering the agency to monitor the exercise, Abbott called on the State Guard to ensure that Texans’ civil liberties were protected.

Oooohh, Texans’ civil liberties are in mortal danger, but thank heavens we have Governor Greg Abbott, along with the Texas State Guard, ready to battle the military of the United States.

And who is this organization, the State Guard, that will protect Texas from the U.S. Military?

As the Washington Post has pointed out, state-sponsored militias like the Texas State Guard (as opposed to the Texas Army National Guard) cannot be activated for federal missions and are generally called upon in emergency situations or for ceremonial activities..

State Guard volunteers train once a month without pay but do receive a free concealed handgun license and a daily stipend when activated for emergencies.

Get it, right-wingers? These are the guys who march in parades, lay sandbags in case of floods or help people out of houses crushed by tornadoes.

They train once a month, for no pay, and they get a free concealed handgun license. Wow! That sounds like a group who could defeat the military of the United States in a battle, doesn’t it?

Feel safer, now?

“It is important that Texans know their safety, constitutional rights, private property rights and civil liberties will not be infringed,” Abbott wrote.

“By monitoring the Operation on a continual basis, the State Guard will facilitate communications between my office and the commanders of the Operation to ensure that adequate measures are in place to protect Texans.”

“If a team member sees two Humvees full of soldiers driving through town, they’re going to follow them,” Eric Johnston, a Texas surveillance team leader, told The Houston Chronicle. “And they’re going to radio back their ultimate location.”

Eventually, the U.S. Military will finish its exercise and go away, which will allow the Texas State Guard to stop playing soldier and go home.

In all probability, brave Governor Abbott will tell his followers that it was the presence of the mighty Texas State Guard that prevented a takeover by the federal government.

Clearly, the U.S. Military must have realized it was overmatched and decided to retreat. What else could it be?

So like Toffee, my Sheltie, who never bit anyone, barked at anyone or even growled, but who was trained to believe his soft barking chased away dangerous strangers, so too will Texans believe their Governor and State Guard prevented the U.S. military from imposing martial law.

Whew! That was a close one.

After seeing how right wingers fear not only the U.S. Military, but black people, Mexicans, gay people, immigrants, poor people, Northerners and anyone not Christian (but not guns in the home), one wonders whether silly paranoia is a requirement for being a conservative.

Even Toffee had more common sense than that.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

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

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

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
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

–Of whom does Donald Trump remind you? Saturday, Jul 11 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 between the rich and the rest..

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

Of whom does Donald Trump remind you?

In his comments, blaming undocumented immigrants for crime and hurting the economy, Trump is walking a well-traveled path, a path you will recognize:

Fact Checker
Donald Trump’s false comments connecting Mexican immigrants and crime

“When Mexico sends its people, they’re not sending their best. They’re not sending you. They’re not sending you. They’re sending people that have lots of problems, and they’re bringing those problems with us. They’re bringing drugs. They’re bringing crime. They’re rapists. And some, I assume, are good people.”

“What can be simpler or more accurately stated? The Mexican Government is forcing their most unwanted people into the United States. They are, in many cases, criminals, drug dealers, rapists, etc.”

“I will be the greatest jobs president that God has ever created. I’ll bring back our jobs from China, from Mexico, from Japan, from so many places . . . and I’ll bring back our money.”

Data on immigrants and crime are incomplete, but a range of studies show there is no evidence immigrants commit more crimes than native-born Americans. In fact, first-generation immigrants are predisposed to lower crime rates than native-born Americans.

Immigration and crime levels have had inverse trajectories since the 1990s: immigration has increased, while crime has decreased. Some experts say the influx of immigrants contributed to the decrease in crime rates, by increasing the denominator while not adding significantly to the numerator.

When asked how the data are indicative of the Mexican government sending criminals to the United States, or that there is a crime wave coming across the border, a Trump campaign adviser said: “The data speaks for itself.”

The Congressional Research Service found that the vast majority of unauthorized immigrants do not fit in the category that fits Trump’s description: aggravated felons, whose crimes include murder, drug trafficking or illegal trafficking of firearms.

An analysis of 2010 Census data in a report from the American Immigration Council, a pro-immigration group, shows that 1.6 percent of immigrant males 18 to 39 years old were incarcerated, compared to 3.3 percent of native-born males.

That disparity in incarceration rates has been consistent in the decennial Census since 1980, the report says.

In short, Trump has lied to make undocumented Mexican immigrants scapegoats.

He falsely claims Mexicans are responsible for “lots of problems.” He falsely claims they are criminals and rapists, responsible for illegal drugs.

He claims the solution for these “problems” is to deport undocumented Mexicans.

Did Trump invent hatred of undocumented Mexicans? No, he built on and used anti-immigrant ideas that already existed.

The gasbag also said he will “be the greatest jobs president” and will grow the American economy, though he gives no clue about how he would do this, other than by deporting 12 million scapegoats.

Anne Frank House: An important term to mention here is ‘scapegoat’.

Hitler and the Nazis said the Jews were responsible for huge events like losing World War One and the economic crisis. This was totally untrue.

But by giving the Jews the blame Hitler created an enemy. Hitler said that all Germany’s problems had been caused by the Jews. Many people believed him.

The solution to all these problems was to banish the Jews from society. With this political message and the promise to make Germany a large and economically powerful country Hitler’s party won the 1932 election.

In 1933 he and his party came to power.

Did Hitler invent hatred of Jews? No, Hitler built on and used antisemitic ideas that already existed. He was Austrian and grew up in Vienna where the mayor was extremely antisemitic and where hatred of Jews was widespread. His hatred of Jews cannot be tied down to a specific event in his life.

Just as Hitler did, Trump appeals to the lowest instincts of humanity. He appeals to hatred and xenophobia.

His unapologetic “birther” campaign against President Obama, was a disguised appeal to haters of blacks.

Trump is our modern-day Hitler, and you will see that haters will be his core constituency, just as the haters were Hitler’s.

Most dictators have gained power via hatred of some group. It happened in Hitler’s Germany. It happened in Stalin’s Russia (Jews and Bolsheviks). It happened in Mao’s China (the rich, the educated, the clergy).

Always, there was some group at which hatred was directed — some group falsely blamed.

And the result always has been disaster, for that is where hatred always leads.

As Trump’s popularity rises, it is happening here.

He is forcing us onto a well-traveled path.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

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

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

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
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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