–The cost of ignorance goes up, again: Social Security version Thursday, Jul 23 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..

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

You regular readers of this blog know that ignorance of economics created the disaster now known as the euro. You know the euro nations voluntarily surrendered the single most valuable asset any nation can have: Its Monetary Sovereignty.

Because of their economics ignorance, the whole of the eurozone either is, or soon will be, suffering from austerity, i.e the loss of income, jobs, health care, education, housing — in short, the loss of a decent lifestyle that government is supposed to help provide.

Greece may be the most extreme example currently, but not the only and not the last.

We may shake our heads at the ignorance of people who would allow their government to surrender its most valuable asset, but we needn’t feel too superior. Despite the fact that the U.S. federal government retains its Monetary Sovereignty, and therefore cannot run short of dollars, we allow it to act as though it were monetarily NON-sovereig

We allow the government to husband its dollars like some penurious miser, straight out of Dickens.

Social Security disability fund to run dry next year.

The 11 million Americans who receive Social Security disability face steep benefit cuts next year, the government said Wednesday, handing lawmakers a fiscal and political crisis in the middle of a presidential campaign.

The trustees who oversee Social Security and Medicare said the disability trust fund will run out of money in late 2016. That would trigger an automatic 19 percent cut in benefits, unless Congress acts.

The average monthly benefit for disabled workers and their families is $1,017.

Think of it. A disabled person, too ill to work, receives a pittance: $1,017, to support his/her family. But that is too much for the politicians.

The typical beneficiary would see a reduction of $193 a month.

“Today’s report shows that we must seek meaningful, in some instances even urgent, changes to ensure the program is on stable ground for future generations,” said Jo Ann Jenkins, chief executive officer of AARP.

AARP, which supposedly helps seniors and other Social Security beneficiaries, spreads the Big Lie, that taxes fund federal spending.

It’s a lie, because even were FICA to be eliminated, the federal government could continue funding Social Security benefits, forever.

Just as the U.S. federal government never can run short of its own sovereign currency, the dollar, agencies of the federal government never can run short of dollars, unless Congress wills it.

In more bad news for beneficiaries, the trustees project there will be no cost-of-living increase in benefits at the end of the year. It would mark only the third year without an increase since automatic adjustments were adopted in 1975.

Separately, about 7 million Medicare beneficiaries could face a monthly premium increase of at least $54 for outpatient coverage. That works out to an increase of more than 50 percent — for outpatient coverege.

Day by day, month by month, the middle- and lower-income groups are squeezed, just as in Greece, and for no good reason.

The annual report card on the financial health of Social Security and Medicare shows that the federal government’s largest benefit programs are feeling the strain of aging baby boomers as they both approach milestone anniversaries.

“The strain” is another way of saying that more people are growing older, and they need the kind of help a 1st rate government is supposed to provide. Why else would we have a government?

There was some good news in the report: The trustees said Social Security’s retirement fund has enough money to pay full benefits until 2035, a year later than they predicted last year. At that point, Social Security will collect enough in payroll taxes to pay about 75 percent of benefits.

Medicare’s giant hospital trust fund is projected to be exhausted in 2030, the same date as last year’s report. At that point, Medicare taxes would be enough to pay 86 percent of benefits.

The Big Lie continues — the pretense that like you and me (who are not Monetarily Sovereign), the government can run short of dollars to pay its bills. It cannot.

Advocates for seniors say that gives policymakers plenty of time to address both programs without cutting benefits. But some in Congress note that the longer lawmakers wait, the harder it gets to address the shortfall without making significant changes.

Nonsense. It’s not hard at all. Simply acknowledge the federal government’s ability to support Social Security at any desired level, and while making that admission, get rid of the worst tax in U.S. history: FICA.

There is an easy fix available for the disability program: Congress could shift tax revenue from Social Security’s much larger retirement fund, as it has done in the past.

President Barack Obama supports the move. And acting Social Security Commissioner Carolyn Colvin said shifting the tax revenue “would have no adverse effect on the solvency of the overall Social Security program.”

There would be no adverse effect, simply because the U.S. government has the unlimited ability to support Social Security.

But why will Congress not admit this simple truth? Here’s the clue:

Republicans say they want changes in the disability program to reduce fraud and to encourage disabled workers to re-enter the workforce.

In January, Sen. Rand Paul, R-Ky., suggested that a lot of slackers are on disability. Paul, who is running for president, joked that half the people getting benefits are either anxious or their back hurts.

And there you have it. The Republican party of the rich, spreads the cruel lie that disabled people are fraudulent fakers and slackers, who need to be “encouraged” to re-enter the workforce.

Note the simpering laughter of Republican Rand Paul, slandering those unfortunate, disabled people. As if life weren’t difficult enought for them, a liar like Paul has to heep on the scorn. This is the kind of cruelty to the afflicted one has come to expect from Republicans. 

Here is Doctor Rand Paul, who grew up in luxury. He received his medical degree from the renowned Duke University School of Medicine. His father also was a doctor, a U.S. Congressman, who ran for President three times. This is the privileged Rand Paul who sneers at the poor, the aged and the disabled, from his lofty perch on high.

If the retirement and disability funds were combined, they would have enough money to pay full benefits until 2034, the trustees said.

Or, the federal government simply could pay the benefits.

The Medicare premium increases would affect Part B, which provides coverage for outpatient services.

For about 70 percent of beneficiaries, premium increases cannot exceed the dollar amount of their Social Security cost-of-living adjustment, or COLA. Because no COLA is currently expected for next year, increased costs of outpatient coverage would have to be spread among the remaining 30 percent.

Translation: The Monetarily Sovereign federal government is running out of money, but the disabled and the poor have plenty of money. So cut federal spending while forcing the people who can afford it least, to pay more.

Why does the government get away with it? Because the electorate is ignorant of economics reality. The people have been brainwashed into believing the federal government can run short of dollars, and/or that any increases in federal spending will cause a Zimbabwe-esque hyperinflation (another part of the Big Lie.)

Just as the Greek people suffer for their economics ignorance, so to do we Americans suffer for ours.
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

Opportunity lost: UK and Greek versions. What do they have in common? Wednesday, Jul 8 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..

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

In the U.S., and perhaps elsewhere, we speak of “snatching victory from the jaws of defeat,” but it is the ironic anagram, “snatching defeat from the jaws of victory” that is most appropriate, here.

Here is the UK version:

Osborne spells out new, post-election spending cuts
LONDON | BY WILLIAM SCHOMBERG AND DAVID MILLIKEN

Chancellor George Osborne, fresh from a decisive election victory, pledged to recast the country’s economy by chopping welfare spending, lowering the tax bill for workers and tackling low productivity that could undermine the recovery.

In the first solely Conservative budget for nearly 20 years, Osborne used the turmoil in Greece to argue that the world’s fifth-largest economy needed less spending and less borrowing.

“Britain still spends too much, borrows too much,” Osborne told parliament.

“You only have to look at the crisis unfolding in Greece as I speak, to realise that if a country’s not in control of its borrowing, the borrowing takes control of the country,” he said.

Osborne pushed the target of achieving a budget surplus into the 2019/20 financial year from the 2018/19 financial year as projected under his previous budget plan.

Osborne, who has previously said he wants to tackle Britain’s hefty bill for tax rebates to low-paid workers, said he would freeze working-age benefits for four years.

“The benefits system should not support lifestyles and rents that are not available to the taxpayers who pay for that system,” he said.

Anyone reading that article would assume the UK is a monetarily NON-sovereign, euro user.

The line, “Britain still spends too much, borrows too much,” is exactly what the leader of a euro nation legitimately might say.

Even Osborne pretends Britain is monetarily non-sovereign like Greece.

But, of course, Britain is not Greece. Far from it. Britain did not surrender its Monetary Sovereignty (MS) to the troika, instead wisely retaining its own sovereign currency.

That was a brilliant move.

As a MS nation Britain retained total control over its money supply. Britain never can run short of its own currency. It creates money ad hoc, by spending.

Contrary to what Osborne claims, British taxpayers do not fund British spending. Even if all tax collections fell to zero, the British government could continue spending, forever.

The only reason — and I mean the ONLY reason — to cut spending, is in response to the threat of inflation. Even then, one should try other means first, i.e. increasing interest rates.

And borrowing cannot “control” a MS nation. First, the nation never needs to borrow; it has the unlimited ability to create its currency.

And second, even if it does borrow, it has the unlimited ability to service any debt of any size.

So Osborne lies — and lies — and lies.

He and his conservative party “chop welfare spending,” the spending that benefits the UK’s poorest citizens.

Why? What kind of morality causes a government to punish its weakest and poorest?

The conservatives cut spending for the poor, because they can. The poor have no power; the rich have the power, and greedily, wish to have even more.

Cruelty to the poor never is punished. It is rewarded.

Finally, the notion of achieving a surplus (taxes greater than spending) is outrageous for a MS nation. Why would a government that can create money at will, want to take more money from its own economy than it gives back?

What does this do to an economy? Shrink it, of course. What else could a reduction in funds possibly do?

Why shrink the economy? Because the rich are less affected than the rest, so the Gap widens. In a shrinking economy, the middle class becomes more desperate for work, thus increasing the power of rich employers.

In summary, the UK might just as well have adopted the euro, become monetarily non-sovereign and lost control over its money supply, because its government acts as though it has done just that.

Given its retention of Monetary Sovereignty, the UK could have been the greatest, most powerful nation in Europe.

Ah, those sad words, “could have been.”

Instead, the UK government has snatched defeat from the jaws of victory. Watch as the UK slowly sinks into recession, then depression.

Opportunity lost.

And now comes Greece:

Greece news live: Athens submits three-year rescue request after Alexis Tsipras is torn apart by euro MPs

Greece applies for a new three-year bail-out program after Tsipras is warned banking collapse and humanitarian crisis are four days away

George Saravelos at Deutsche Bank thinks Athens will have to bow down and accept much harsher bail-out conditions than those they have previously had rejected by creditors.

With banks closed, economic activity stalled, and the prospect of IOUs only days away, Mr Saravelos estimates any new three-year bail-out will come with harsher fiscal measures attached.

Greece has come within inches of pulling away from the slavery of euro-imposed austerity, only to see its leaders “bow down” to the troika, and submit a new bail-out plan.

Greece could have been Monetarily Sovereign. It could have had the unlimited ability to control its money supply, pay all its bills and support its own citizenry.

Instead the Greek leaders have caved to the rich bankers, and Greece will return to even worse poverty and misery.

What do the UK and Greece have in common? They are controlled by the very rich, whose primary goal is to widen the Gap between the rich and the rest.

Remember, it is the Gap that hands power and control to the rich. Without the Gap, no one would be rich, and the wider the Gap, the richer they are, and the more power and control they have.

[If everyone had $1 million, no one would be rich and no one would be in control. But if one man has $1 thousand, while everyone else as only $1, that one man is rich, powerful and has control.]

It is power and control that the rich want, and a widening Gap gives it to them.

So the UK and Greece will continue to do the bidding of the rich, widening the Gap, handing ever more power and control to the rich.

The Greek people voted. They wanted freedom from troika-imposed austerity. They wanted more control over their lives.

But their government will hand it back.

As for the British people, they have a history of bowing to royalty, don’t they?

Weep for the people.

Opportunity lost.

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

–Will the Greek people finally stop being the geese who lay golden eggs for the rich? Tuesday, Jul 7 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..

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

Will the Greek people finally stop being the geese who lay golden eggs for the rich?

Sometimes I feel we’re in an endless, time-loop, “Groundhog Day” movie, when I read articles like the following:

Greece faces last chance to stay in euro as cash runs out
Reuters: By Paul Taylor and Renee Maltezou

Greek Prime Minister Alexis Tsipras had a final chance to present credible reform proposals to an emergency euro zone summit on Tuesday to persuade skeptical creditors to reopen aid talks before his country’s banks run out of money.

With Greek lenders down to their last few days of cash and the European Central Bank tightening the noose on their funding, Tsipras must convince the bloc’s other 18 leaders, many of whom are exasperated with five years of crisis, to authorize negotiations fast on a new loan to rescue Greece.

Apparently, nothing has been learned. Still there remains the belief that Greece should have yet another “loan rescue,” so as to remain with the euro.

Still there remains the belief that Greece should present “credible reform proposals” (i.e more and more punishing austerity), so it can bleed its own people to pay the troika loan sharks.

Those “other leaders” of the block have become “exasperated” with five years of crisis, a crisis they created by inventing a financial union without a political union.

In my personally gratifying “I-told-you-so” mode, I repeatedly remind you of what I first said in a June 5, 2005 talk at the University of Missouri, KC:

“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.”

And now, it is ten years later, and still we read an article about how Greece must convince its rapacious lenders to allow it to burn in the frying pan of economic ignorance and misery.

So deeply in debt you cannot pay? Well, then borrow some more. That is the troika’s self-serving solution.

And now it is four years after I posted: There are two, and only two, long-term solutions for Greece and the other euro nations. (Thursday, Nov 3 2011), which included these lines:

In giving up the drachma, and taking on the euro, Greece voluntarily surrendered the single most valuable asset any nation can have: Its Monetary Sovereignty.

Greece now is monetarily non-sovereign. There is an absolute rule in economics: No monetarily non-sovereign government can survive long term without money coming in from outside its borders. Germany, another nation that gave up its most valuable asset, the mark, and also is monetarily non-sovereign, survives on exports.

Nevada, which also is monetarily non-sovereign, survives mostly on tourism (aka gambling). No monetarily non-sovereign can survive long-term on internal taxes or borrowing.

By contrast, Monetarily Sovereign nations do not need money coming in from outside their borders, because they create unlimited money simply by paying bills.

For Greece and the other 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.

Event #1 requires reversing the ill-fated switch to the euro.

If Greece re-adopts the drachma, and becomes Monetarily Sovereign again, it can free itself of the appropriately despised austerity, and build its economy.

Other euro nations, especially those with a negative balance of payments, soon will follow.

Or, if Europe adopts event #2, and creates a political union, perhaps a form of “United States of Europe,” it could become the most powerful economic force in the world, surpassing even the U.S. and China.

Long term, which path will Europe follow?

Europe will follow the path the bankers and the super-rich feel will be most profitable for them.

Very little consideration will be given to the welfare of the populace, the same lack of consideration for the people that led to the creation of the euro.

Despite you have been told, the purpose of the euro never was to ease trade, nor was it to establish peace in Europe. The purpose was to give the rich bankers, the troika (European Central Bank [ECB], the European Commission [EC], and the International Monetary Fund [IMF]), absolute control over the people.

Remember, Monetary Sovereignty is the most valuable asset any nation can have. With Monetary Sovereignty, a nation can buy anything it wishes. It can buy prosperity. It can buy health, housing, education, food, convenience and pleasure for its citizenry.

By adopting the euro, each member nation handed over its most valuable asset to the small group of politicians. And oh, how the bankers loved it.

They could lend euros to nations already deeply in debt, knowing they had the financial blackjack of the troika on their side. They could suck the life out of the people, via ever-greater taxes and ever-smaller benefits — and it all was in the name of “fiscal prudence.”

If the people complained about austerity, it became a moral issue. They were “lazy takers,” who were part of a “welfare society” and who “expected the government to take care of them.”

It was a no-lose, highly profitable situation for the rich, so long as the populace didn’t get wise to the scam.

Now, that the Greek people have wised up, the rich desperately are trying to hang on to the geese who have been laying those golden eggs.

My prediction: The rich will find a way to continue the racket, just in a different form. The only way this could change is in the rare circumstance where a strong and caring leader emerges.

Do you see any such on Europe’s horizon?

Or will the geese keep on a’layin’?

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

–Hitler in America. Why a bigot can win the Presidency Saturday, Jul 4 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..

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

If you want to know why a bigot can win the Presidency, read what people say.

Republican Donald Trump is an obvious and transparent racist. Made rich by his daddy, he surrounds himself with boot lickers, telling him he’s right — and like many rich fools, he believes what they tell him.

He appeals to the worst and lowest aspects of American society — the haters and those of low morals and intelligence, who leap at the chance to blame someone, anyone, for their own deservedly low self esteem:

Donald Trump doubles down on Mexico ‘rapists’ comments despite outrage

Trump claimed statistics show that undocumented Latino immigrants are more likely to perpetrate rape than the wider population. However, the Fusion article he referred to said 80% of women crossing the Mexican border are raped along the way, often by criminal gangs, traffickers or corrupt officials.

When CNN host Don Lemon pointed out that Trump had misread the article, the former Apprentice host said: “Well, somebody’s doing the raping, Don! I mean somebody’s doing it! Who’s doing the raping? Who’s doing the raping?

“If you look at the statistics of people coming, you look at the statistics on rape, on crime, on everything coming in illegally into this country it’s mind-boggling!”

Trump’s entire statement was: “When Mexico sends it’s people, they’re not sending their best . . .” [Comment: Mexico is not “sending” people. People are fleeing Mexico to come to America for a better life.]

“They’re sending people who have lots of problems. And they’re bringing those problems to us. They’re bringing drugs . . . “ [Comment: The vast majority of arrested undocumented immigrants (actually 95%) are not charged with bringing drugs. They are charged only with . . . that’s right: Being undocumented. That is their crime.]

“They’re bringing crime . . .” [Comment: Does Immigration Increase Crime? The results of the analysis are clear: “There’s essentially no correlation between immigrants and violent crime. Given some media depictions of immigrants as violent, or associated with human trafficking and the drug trade, this finding may come as a surprise to many. There’s a long perception that immigration increases crime, and when you look at neighborhoods where lots of immigrants live. These are typically not the best neighborhoods. These are violent places. So there’s this anecdotal association between immigrants and violent crime that just doesn’t turn out to be true in the data.”]

“They’re rapists. . . ” [There is zero data to support this. Trump twisted a report that said Mexican women are being raped on the way here — a huge jump from Mexican immigrants being rapists.]

Finally, Trump uses the standard bigot’s excuse: “I love the Mexican people; I do business with the Mexican people.”

It’s a take on the old, “Some of my best friends are black,” line.

Any moral person of normal intelligence will see Trump for what he is, a big-mouthed, egomaniacal extremist, as much a danger to America as Hitler was to Germanyand using the same tactics.

Sadly, America has its share of low-morals followers, as witness some of the comments at:

Bush says he takes Trump’s immigration remarks personally

When Trump announced his presidential bid last month, he criticized Mexico and immigrants who come to the U.S. illegally. “They’re bringing drugs,” he said. “They’re bringing crime. They’re rapists.”

COMMENTS BY READERS

–America is sick of the illegal alien problem and Americans are overwhelmingly against any type of amnesty for illegal aliens. Anybody that is anything short of a turnip has figured out by now Jeb Bush isn’t going to do a damn thing about illegal aliens except something that favors and coddles illegal aliens. If elected, Jeb would be a middle of the road push over…a piece of light bread soaked in water. Trump is at least old school tough and not afraid to speak out. We would be way better off with Trump.

–I work at a rural Colorado hospital and am offended every time a fence jumper delivers ANOTHER baby (aka an instant American citizen)…FREE OF CHARGE…on my dime! I am offended that ILLEGALS are allowed to qualify for housing and food assistance…ON MY DIME! These criminals refuse to assimilate and hang their Mexican flags on their porches. I would much rather see our Confederate Flag than a Mexican one. Maybe we should throw a liberal hissy fit and we, the people, ban MEXICAN FLAGS!

–This just shows that Bush has a lot more in common with the Dems than with his own party. Trump, is the only GOP nominee who has come out strongly against immigration and that is what the conservatives want to hear.

–Bush also implied he would be telling conservatives to embrace policies like amnesty and Common Core, which is reminiscent of former Utah Gov. Jon Huntsman’s all-in approach to global warming during his failed 2012 presidential campaign.

–Did anyone ever tell Bush 69% of the american people oppose illegal immigration? About 58% of Americans support deportation of all illegals. Sound pretty mainstream to me.

–How about the many American citizens who have also been killed and murdered, by illegal aliens, including our law enforcement officers; are you taking those murders personally too?

–What about the 25 American citizens who are killed each day by illegal aliens, either by traffic accidents (i.e. drunk driving, hit-and-runs, etc.), during the commission of a crime, and unlawful discharge of firearms; are you taking those personally too?

And, I couldn’t pass up this beauty at: Stupid comments:

He is arrogant and cocky, I can deal with that, at least the jews don’t own him and the jew media, while they try, can’t unsettle and move him off the real points and issues instead of the jew issues of promotiing kweeers and empowering the neegers and illegals like they, all while making iran look bad, while they kill palestinian kids by the thousands..If you doubt me, start looking at the sir name of all the writers and key people in indsutry.. all Jews.. 1% of the population leading the dumb down masses and they are winning the battle, down with the jews and up with trump

Ah, a Trump follower, who isn’t even smart enough to realize that Trump’s daughter married a “jew” (sic) and converted to Judaism.

The hate and bigotry goes on and on. You find this particularly on right-wing web sites.

Why? Because the right wing has been sowing the winds of hatred since Obama became President, and now America is reaping the whirlwind.

No Republican candidate has a chance to be nominated unless he/she spews the anti-science, anti-poor, anti-black, anti-brown, anti-gay, anti-women, pro-rich platform.

Through most of my life, I actually voted Republican, but the current extremist, hateful, religionist bent of the party is too reminiscent of Hitler for my taste. It should be repugnant to every American.

If you are part of any minority in America, you should be very frightened. History is littered with Hitlers, Stalins and Maos. Most dictators have used bigotry and hatred to gain political power.

I pray American will see Trump for what he is. Or the America, of which we are so proud, will be no more. We’ll be Nazi Germany.

And don’t think it couldn’t happen here.

The Germans didn’t think it could happen to them, either.

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

Next Page »

Follow

Get every new post delivered to your Inbox.

Join 646 other followers