–Our biggest economic threat? Putting a fork into an electric outlet. Wednesday, Nov 19 2014 

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.
==================================================================================================================================================================

Last week, Suze Orman of CNBC, wrote an article for USA Today, titled: Biggest economic threat? Student loan debt

I believe the biggest economic threat is the public’s stubborn ignorance about Monetary Sovereignty, and it is that stubborn ignorance which allows the rich and powerful to impose truly horrible laws and initiatives like FICA (the most regressive tax in America).

But, I do agree the student loan debt is a huge economic threat, which directly is attributable to the above-mentioned public’s stubborn ignorance.

Here is what Suze Orman says about it.

We have more than $1.2 trillion of student loan debt. About 10 million federal students loans are taken out annually, and then there are the insanely dangerous private student loans on top of that staggering number.

More than $1.2 trillion! Way more. Let that roll around in your brain.

And while 6.7 million borrowers in repayment mode are delinquent, the sad fact is that many lenders aren’t exactly incentivized to work with borrowers.

Unlike all other forms of debt, student loans can’t be discharged in bankruptcy.

Moreover, lenders can garnish wages and even Social Security benefits to get repaid. A new report by the Consumer Finance Protection Bureau details just how bad the situation is for private loan borrowers.

(From Oct. 1, 2013, through Sept. 30, the agency handled about 5,300 private student loan complaints, an increase of nearly 38% from the previous year.)

And private student loans aren’t the only problem. Do you know that from 2007 to 2012, the government made $66 billion in profit on federal student loans?

Our Monetarily Sovereign government, which has the unlimited ability to pay any bills of any size, instead deliberately chooses to impoverish the middle- and lower-economic groups and to discourage higher learning for Americans.

We can all debate how our government should generate revenue to support federal spending programs, but doing it on the backs of young adults who need an education to compete in the increasingly competitive global workforce is just appalling.

What’s even more appalling is that Suze Orman is completely clueless about Monetary Sovereignty. She believes the federal government’s finances are like state and local government finances, wherein revenue must be “generated” (aka. “tax”) to pay for things.

Wrong, Ms. Orman. The federal government does not need to tax to pay for federal spending programs. Even were all federal taxes to drop to $0, the federal government could continue to support all federal spending programs, forever.

Anyway, to demonstrate the abject ignorance of the American public, here are some verbatim comments about Orman’s article:

[Ignorance #1] I have medical school debt, but if I can’t pay back my student loans it’s my own fault. Even if I’m going to be paying them off for 30 years they will be paid off. I may not have an Audi or Mercedes but I have a job that I love and enough coin to drive a used Toyota, insure it for cheap and take care of my family. I’m sorry that I’m not sorry that the average American can’t have a luxury vehicle.

[Ignorance #2] With exceedingly rare exception children do not attend college, adults do. They may be your offspring but they are not children. When you agree to a contract it should be binding. Raise your offspring to use their heads. Teach them to read and understand agreements before signing. Teach them to honor their word. Teach them that the college bound are NOT necessarily the most intelligent. The above article should be evidence enough of that.

[Ignorance #3] College is a privilege, not a right. There are many good, affordable schools in this world (online as well) so the debt you take on is your choice. If you look at average incomes of college graduates vs. high school graduates, you’ll realize that the college grads have ample additional income to pay off their loans over time. Look at the data. Avg. college grad debt in 2013 is $32k. Avg. starting income $60k. High school grad? $30k avg. income, no debt. You choose. I think we all know the correct answer.

[Ignorance #4] Other than the massive 18 trillion dollar Federal debt the next worse threat is from the 5 trillion dollar state debt due to state public employee pensions and post-employment benefits.

[Ignorance #5] my plan is to treat student loans as an asset. and if you default you have to return it, just like a foreclosure or a repo or a bankruptcy..

cancel your degree in exchange for cancelling the debt, which means you have to give up on your career choice. If the job requires a VALID 4 year or post grad degree and you dont have one you cant sue for discrimination

although a lot of jobs one step below doesn’t require the degree such as give up your JD and be a paralegal, or give up your dentist degree and be a highly qualified dental assistant. you lose the ability to open your own business but then no debt over your head.

I am fully against writing off the loan in BK without some serious penalties, i paid mine off and so should you.

[Ignorance #6] The greatest threat to our economy are people who demand everything be risk-free like this pathetic author.

[Ignorance #7] What a strange article…what do you propose, forgiving their debt like we did in housing crisis, creating even more of a deficit? They got their degree, they will now be earning more than otherwise, they have a marketable resume..yes they will need to buckle down and budget and live within their means for a while…that is the price they pay for securing their degree in short order and without breaking their parents retirement savings!

[Ignorance #8] Suze takes shots at the government for making a profit on the money it lends out, conveniently forgetting that from 2017 onward there will be a huge number of people having all debt discharged by the government under the ten year public service loan forgiveness program. They are gonna need a lot more money than what they’ve been bringing in to offset that.

[Ignorance #9] Americans have this mindset that they don’t have to save for college. They just expect to get a loan and then complain about how they will repay it. Student loans should be limited to less than 50% of college costs to force students/parents to plan for college and save. If a student graduates and gets a job then the interest rate should be lowered since there would be less risk of default.

[Ignorance #10] If you reduce the burden of student loans, the price of college will go up just enough so that the burden returns to the same level. There already is scant restraint on the price that can be charged, debt forgiveness will make this explode.

It goes on and depressingly, on. Hundreds of comments and not one commenter understands that the federal government neither needs nor uses tax dollars.

Nor do they even ask, “If state and local governments pay for grades K-12, why can’t the federal government afford to pay for advanced education?”

K-12 was O.K for an agrarian economy. The U.S. no longer is an agrarian economy. We compete worldwide with sophisticated economies. We need our young people to be educated beyond grade 12. (See Steps #4 and #5 in the “10 Steps to Prosperity,” below.)

But if you try to explain it, you will be met with hostility.

Yes, the biggest threat to our economy is the public’s stubborn, aggressive ignorance.

Sometimes, this feels like trying to tell an obstinate child, “Don’t stick the fork into that electric outlet, ” knowing he will refuse to listen, and so, get burned.

Should we just accept that it serves him right? Or should we keep trying?

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. (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)

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

–Who is the “leviathan”? Wednesday, Nov 19 2014 

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.
==================================================================================================================================================================

It has become an article of faith among the right wing, that the federal government is “too big,” and that decisions are best left to state and local governments.

In fact, some on the far right have taken to calling the federal government “leviathan,” so to paint a picture of an evil monster hovering above us.

Perhaps it is because of my experience as a resident of Chicago, Illinois, that I dispute this claim, but it seems to me that state and local governments can be, if anything, far more crooked, unfeeling and downright malevolent than the federal government.

Though one event does not a generality make, you might find this article interesting:

Citing Deference to ‘Broad’ Government Power, Judge Says Atlantic City May Bulldoze Home to Benefit Casino
Damon Root|Nov. 18, 2014

According to the New Jersey Constitution, state officials may only condemn private property for redevelopment purposes when that property is “blighted.”

Yet in a ruling issued on Monday, Judge Julio L. Mendez of the New Jersey Superior Court allowed Atlantic City to seize one man’s non-blighted family home. Why? Because the state enjoys “broad” powers, the judge said, and the courts have no business standing in the way.

Atlantic City officials announced a project designed to “complement the new Revel Casino and assist with the demands created by the resort.”

Although the specifics of the plan were never announced and the Revel Casino recently declared bankruptcy, state officials have persisted in their efforts to snatch up various parcels of land on behalf of this shadowy real estate scheme.

Among the properties targeted for condemnation is the well-tended family home of Charles Birnbaum.

Birnbaum’s home is neither blighted nor in need of any urban renewal. And as the New Jersey Supreme Court has plainly stated, “the New Jersey Constitution authorizes government redevelopment of only ‘blighted areas.’”

Judge Mendez went ahead and rubber stamped the land grab anyway.

I don’t know the specifics, but I suspect the honorable Judge Mendez owes his job to some local rich guys. And rather than risk the pain and embarrassment of actually having to work for a living, the good judge will go along with whatever they say.

He may be a pipsqueak in the legal world, but his ruling has the same force of law as would a ruling coming down from the United States Supreme Court or the United States Congress.

Bottom line: It’s not size that makes a government bad or good. It’s quality. Remember the old saying, “You can’t fight CITY hall.”

Want more examples? Click here.

Read a few, then determine for yourself: Who is the leviathan?

Given the choice of trusting the federal government vs. trusting the Chicago or Illinois governments, I for one, would go with the feds.

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. (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)

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

–A tale of two nations: Japan and Greece Tuesday, Nov 18 2014 

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 short tale of two nations: Japan and Greece have similar symptoms, different problems, the same cause, and different solutions.

Japan is Monetarily Sovereign but refuses to acknowledge it. Greece is monetarily non-sovereign, and refuses to acknowledge it.

Japan is sovereign over the currency it uses, the yen.

Greece is not sovereign over the currency it uses, the euro.

Here is Japan’s tale:

Japan’s Warning to the World
Bloomberg View Editors

Japan’s renewed descent into recession — its sixth in the past two decades — comes with an urgent if obvious warning to the U.S., Europe and the rest of the developed world: Don’t let this happen to you.

Prime Minister Shinzo Abe was right to postpone a planned sales-tax increase, but there’s only so much that fiscal policy can do in a country with a giant government-debt burden.

It’s not really debt and it’s not a burden. It’s the total of deposits in bond accounts at Bank of Japan (Japan’s central bank).

The so-called “debt” could be paid off tomorrow, simply by transferring yen from bondholders’ bond accounts at the central bank to bondholders’ checking accounts at private banks. No new yen needed. (And even if new yen were needed, Japan could create them at will. It is sovereign over the yen.)

And as for a sales-tax increase to help grow an economy . . . does anyone really accept the Big Lie that tax increases are stimulative or even neutral?

Japan’s ill-timed effort to balance its budget with a consumption-tax increase in 1997 sent the economy into recession . . .

The only people surprised by this are the middle- and lower-income groups, who have bought into the GDP/Debt “problem” being spread by the rich (whose goal it is to widen the gap between the rich and the rest.)

Government spending programs in the U.S. and Europe have fallen short of what the International Monetary Fund says is needed to reinvigorate growth.

Absolutely true, but consider the source. This is the same IMF that preaches reduced deficits (aka “austerity”) as a prevention/cure for recessions.

And now we come to monetarily non-sovereign Greece:

Greek Strike: Thousands Protest Austerity Cuts As Services Shut Down
AP | By ELENA BECATOROS

Services across Greece shut down Wednesday as unions staged a 24-hour general strike and held peaceful demonstrations to protest further austerity cuts in the cash-strapped country.

Greece has been surviving on international rescue loans from the International Monetary Fund and other European countries that use the euro since 2010, after a combination of dismal financial stewardship, loss of investor confidence and the global recession brought it to the brink of bankruptcy.

Successive governments have passed repeated rounds of deep spending cuts and tax hikes to secure 240 billion euros ($324 billion dollars) in bailout loans.

Being monetarily non-sovereign, Greece is just like you and me. It cannot spend more than it has, borrows or earns via trade surpluses. The Greek government cannot create euros.

Like Greece, you are monetarily non-sovereign. If your spending exceeds your earnings, what is your solution? More and more and more borrowing? Any normal person would say that is ridiculous. But the EU and the euro nations are not normal.

Their solution to recession is: Borrow more; tax more; spend less — in short, impoverish the economy.

The strike is taking place as the government holds talks with debt inspectors from the IMF, European Central Bank and European Commission, known collectively as the troika, over what measures are needed to plug a budget gap next year.

At stake is Greece’s next bailout installment of 1 billion euros.

Got it? They need to reduce their debt (by taking euros from the public), so they can borrow more.

Visualize owing a loan-shark $1,000. You can’t afford to pay him and pay your other bills too, so he talks you into borrowing an additional $1,000. Now, you owe him $2,000, which you can’t afford to pay.

That is how the EU and Greece operate.

Japan and Greece have similar symptoms, different problems, the same cause, and different solutions.

Symptoms: The symptoms for both are sick economies.

Problems: The problem for Japan is: Denying its Monetary Sovereignty
The problem for Greece is: Not having Monetary Sovereignty

The cause: The cause for both is the Big Lie told by the rich, to widen the Gap between the rich and the rest.

Solutions: The solution for Japan is to cut taxes, increase spending and ignore the debt.
The solution for Greece is to become Monetarily Sovereign by re-adopting their own sovereign currency, or become part of a financial union like a United States of Euro.

So long as the people of Japan and Greece (and all other nations) are ruled by economic ignorance, they also will be ruled by the rich.

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. (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)

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

–Is the U.S. truly Monetarily Sovereign? Sunday, Nov 16 2014 

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.
==================================================================================================================================================================

Is the U.S. government truly Monetarily Sovereign?

In one sense this may seem to be a question of semantics, but it goes deeper than that.

The citizens of a Monetarily Sovereign government primarily use for their money, the sovereign currency of that government. So U.S. citizens use the dollar, the sovereign currency of the U.S. And UK citizens use the pound, the sovereign currency of the UK.

By contrast, Illinois citizens use the dollar, which is not the sovereign currency of Illinois (Illinois has no sovereign currency). And citizens of France use the euro, which is not the sovereign currency of France.

So we say the U.S. is MS and France is monetarily non-sovereign.

That is not to say, however, that the U.S. always acts as though it were MS. We have the nonsensical debt limit laws, which can prevent the U.S. from paying its bills — just like a monetarily non-sovereign government.

And we have the nonsensical Congress and President, who continually try to cut federal deficits and debts, as though the U.S. were monetarily non-sovereign.

But there is even more monetary non-sovereignty buried in our MS government, and that has to do with banks. Dollars are created primarily in two ways: Private bank lending and the federal payment of bills.

Under any dollar definitions (M1, M2, M3, L, Credit Market Instruments), private bank lending creates the vast majority of dollars, about 80% (again, depending on definitions). So immediately, one could say the U.S. government is not sovereign of the dollar if private banks create most of the dollars.

But it gets even “worse.” When the federal government pays a bill, it sends instructions (not dollars) to the creditor’s private bank, telling the private bank to increase the balance in the creditor’s checking account.

At the moment the private bank follows those instructions (and not before), dollars are created. In fact, the federal government doesn’t send dollars anywhere. It sends instructions (checks or wires) and it sends receipts (paper dollar bills).

So in that case, who actually “creates” those dollars, the federal government through its instructions or the private banks by following those instructions?

Scott Baker wrote an article titled, “Is this the end of debt-money at last?”, that discussed money creation in general, but contained one sentence I found especially interesting: “No nation can be truly sovereign if it cannot create its own money.”

[Incidentally, there is a good explanation of money creation at this video: Money in a Modern Economy]

By that measure, the only way the U.S. could become truly (or more) sovereign over the dollar is if all banks were federally owned, which just happens to be Step 9 in the “10 Steps to Prosperity.”

There is no public purpose served by private banking. See: The end of private banking and How should America decide “who-gets-money”?

In summary, Monetary Sovereignty is a comparative, not an absolute. The U.S. is Monetarily Sovereign when compared with state and local governments, euro governments, businesses, you and me. But it could and should be more MS. That would require, for instance, federal ownership of all banking functions.

Equally important, it would require the President, Congress, the media and the mainstream economists to stop telling the Big Lie: the lie that federal deficits and debt are “unsustainable, and the lie that the federal governments spends “taxpayers’ money.”

The economy requires federal deficits. The debt is meaningless. And the government does not spend taxpayers’ money.

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. (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)

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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