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

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

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

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

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

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

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

I agree, with all he said.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

monetary sovereignty

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

“Worked as advertised”?

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

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

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

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

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

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

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

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

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

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

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

It isn’t.

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

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

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

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

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

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

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

Place your bets, folks. The wheel is spinning.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

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

—–

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

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

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

–How the rich are able to brainwash the populace Monday, Jul 21 2014 

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

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

Readers of this blog, who understand Monetary Sovereignty, are puzzled (disgusted? outraged?) by those who reject the federal spending that benefits the poor and middle income groups.

The repeated calls for less spending and reduced federal deficits seem nonsensical at best, and cruel at worst. After all, the U.S. government never can run short of dollars, and federal taxpayers do not pay for federal spending.

So if helping the poor and middle income groups costs no one anything, why not?

Two problems have been discussed repeatedly in these pages:

1. The rich, who control all sources of information via bribery (of politicians and universities, with contributions and promises of lucrative employment) and ownership (of the media), selfishly wish to reduce social spending, so as to widen the gap between the rich and the rest.

Without the gap, no one would be rich, and the wider the gap, the richer they are.

2. The populace, who are indoctrinated by the above sources of information, accept the lies that: Social spending is unaffordable and paid for by tax money, that government debt is “unsustainable” and “money printing” will cause hyperinflation.

So while this blog disseminates the facts of Monetary Sovereignty and bribery and ownership of information sources, there is in the populace, a deep psychological antipathy to accepting these facts.

One of the most powerful motivations in the psychology of humans (and of many animals, too) is the concept of fairness, which is made complex by three different ideas:

A. Equal: It’s fair when everyone receives the same rewards and the same punishment.

B. Merit: It’s fair when each receives what each deserves, based on some measure, like input or power. (Those who do more should receive more, and those higher up the power structure deserve more.)

C. Need/has: It’s fair when those who have less, receive more, and those who have more, receive less.

Clearly, each description of fairness will result in different outcomes.

In the “Ultimatum Game”, person # “One” determines how to divide a sum of money, and person # “Two” accepts or rejects the division.

Presumably, as a rational person, “Two” would accept any division, even an adverse 99% / 1%, because something is better than nothing.

In actual practice however, the concept of “fairness” is so powerful that person “Two” often rejects divisions more unequal than 66% / 33%, even accepting 0% rather than seeing person “One” receive “too much.” To person “Two”, forcing “One” to receive 0% is more rewarding than receiving an “unfairly” low amount.

This is comparable to person “Two” wanting less unemployment compensation for perceived “slacker, ‘One,’” even though “Two” himself might suffer from the reduced unemployment compensation.

To person “Two,” punishing the “undeserving ‘One’” is more important psychologically than personal reward.

In psychology, however, nothing is simple. If “Two” considers “One” to be deserving in some way, either because of merit (“One” has worked harder; “One” is more important) or because of need (“One” is poor, sick, a child), sympathy and empathy might be even more powerful than fairness, and person “Two” might very well allow an extremely unbalanced division — even 100% – 0%.

This last is the foundation of charity.

Returning to the title of this post, the rich, by owning the sources of information have taught the populace that Monetary Sovereignty does not exist.

But the rich don’t stop with disinformation. They also use the psychology of “fairness.”

Their psychological warfare begins with the fairness notion of “equal” (Idea “A”). They promulgate the belief that everyone should pay the same; the rich should pay no higher a percentage in taxes than do the poor.

This already is true of sales taxes, and the rich want it to be true of income taxes.

They call it “spreading the tax base,” or “tax reform,” and they say the poor should “pay their ‘fair share.’”

Then the rich portray themselves as “makers,” the people who create all the benefits of our economy, while the not-rich are demonized as the “takers,” the people who sit back and accept these benefits, while doing nothing.

The rich propagandize that it isn’t fair for them to produce, while lazy slackers consume. This is the notion of “Merit” (Idea “B”). But it goes further.

They rich convince, even those who are not rich, to resent “takers.” They use the unfairness idea to smear anyone receiving government benefits, so that they deserve no compassion.

Finally, the rich downplay the idea of need (Idea “C”), by saying charity should be personal, and should not be doled out by a powerful, dictatorial “Big Government,” aka the “Leviathan.”

To widen the gap between the rich and the rest, the rich have touched all the bases.

They have combined factual disinformation (taxes pay for federal spending, the federal debt is a danger) with psychological disinformation (“equality,” “makers” vs. “takers” and “Big Government” is a tyrannical Leviathan) to erect a bulletproof fort of deceit.

Yes, to narrow the increased gap between the rich and the rest, requires continual repetition of the economic and financial facts:

–Federal taxes don’t pay for federal spending
–The federal government never will have difficulty paying off its “debts.”
–Deficits are necessary for economic growth

But narrowing the gap also requires continual attention to the psychological facts:

“Equality” is no more applicable to federal taxing and spending than it is to private wealth. If the rich want benefits and taxes to be equal, they should be prepared for wealth and income equality, i.e. a GINI ratio of 0.

The rich, with all their tax breaks and sloth, are the real “takers,” while the poor and middle, who work America’s roads and factories, while struggling to support their families and educate their children — they are the real “makers.”

Federal support for such social benefits as Social Security, Medicare, Medicaid, education and various poverty aids are not indicative of a tyrannical “big government,” but rather of a true friend, who gives freely and requires nothing in return.

To fight the lies, illogic and psychological a warfare of the rich, we must use not only the truth and logic about Monetary Sovereignty and wealthy bribery, but also the psychology of sympathy, empathy and compassion inherent in all of us.

We need to tell the full story.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

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

—–

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

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

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

–The Punishment Party waves the flag and the bible Saturday, Jul 19 2014 

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

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

If a child falls down a well, a liberal would seek help, search for a ladder or lower a rope — find some means to help the child get out.

A conservative would leave him down there as a message to other children to stay away from wells.

Thus we have the two views of dealing with those in difficult situations.

I was reminded of this, because of an editorial in the normally right-wing Chicago Tribune:

Let them eat … nothing
In a cruel move, cities ban feeding the homeless

Los Angeles, Philadelphia, Orlando, Dallas and dozens of other cities have cracked down on their homeless populations by regulating soup kitchens, ticketing panhandlers and imposing bans on sleeping in public areas.

Homeless advocates say the policies reflect a nationwide culture change. “There’s a shift away from feeling compassion for people struggling with their lives to vilifying people struggling with their lives,” says Nonie Brennan, CEO of the Emergency Fund, a nonprofit that helps Chicago-area families in crisis.

In most cities that introduce stringent policies, residents pushed back.

Even the Tribune has come to realize that at our core and in our history, Americans have proved to be empathetic and generous. We were the “open arms” nation.

We not only have felt sorry for the unfortunate, but we actively have helped them, recognizing “There, but for the grace of God, go I.”

But, lately, the so-called “religious” (some religion, huh?) right has reared its ugly head, and preaches punishment is the best tool for dealing with misfortune.

The rich especially, like to believe they are self-made, and luck has had nothing to do with it.

They claim they are rich because they deserve to be rich, and the poor are poor because they deserve to be poor. So punishing the poor is the right approach. They deserve it.

The Punishment Party also has left its dirty fingerprints on this article in the right-wing Washington Post:

Two-thirds of illegal immigrant children approved for asylum: report

Nearly two-thirds of unaccompanied illegal immigrant children requesting asylum this year have had their initial applications approved. Data suggests those kids surging across the border who ask to stay will likely be able to gain admission to the U.S.

That figure doesn’t include the others who never apply for asylum and try to disappear into the shadows, or who spend years in the country awaiting court dates.

President Obama’s refusal to crack down on rampant asylum fraud is one of the many reasons we are witnessing a surge of Central Americans seeking to enter the U.S. illegally at the border,” said Rep. Robert Goodlatte, Virginia Republican and chairman of the Judiciary Committee.

Republicans say if the U.S. could show that illegal immigrants will be turned back at the border or quickly deported, fewer will attempt the journey. But gaining asylum is a legal entry into the U.S., and is likely to reinforce the smugglers’ message.

President Obama’s record-breaking deportations are not sufficient for the conservatives. They call it a “refusal to crack down.” Apparently whipping the poor is not cruel enough if it isn’t done with barbed wire.

According to the Republicans, the best way to deal with the humanitarian crisis of poor children fleeing dangerous lands, to cross dangerous territory, trying to find freedom in America — the best way to deal with that is not to provide the funds and manpower to care for these children.

No, according to the right wing, Punishment Party, the best way to deal with misfortune is to deport those innocent children back to the misery and murder from which they hoped to escape. That’ll teach ‘em!

By the way, did I just see a conservative out there, waving the American flag, while holding a bible, and turning back a bus filled with impoverished children?

He must be very patriotic and very religious.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

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

—–

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

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

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

–Do you know a “war-on” moron? Part II Saturday, Jul 19 2014 

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

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

A few days ago, we published “Do you know a ‘war-on” moron,” in which we criticized the so-called “War on Drugs” as being a harmful, counter-productive, crime-causing initiative against the lower income groups.

While these are exactly the effects our right-wing President and extreme right-wing Congress want, a most amazing thing happened recently:

Vote to Apply Sentencing Change Retroactively Could Let Nearly Half of Federal Drug War Prisoners Go Free Early
Jacob Sullum|Jul. 18, 2014 1:40 pm

Last April the U.S. Sentencing Commission approved a change to the guidelines federal judges use in selecting penalties for drug offenders, reducing prison terms for about 1,300 defendants a year by an average of 11 months.

Today the commission decided to make that change retroactive, which will have a much more dramatic impact. The commission originally estimated that retroactivity would make some 51,000 inmates—more than half of the drug offenders in federal prison—eligible for sentence reductions averaging 23 months.

But because it decided to delay retroactivity by one year, that figure will be reduced to about 46,000, with an average sentence reduction of 25 months. Many prisoners will go home years earlier than expected.

Of course, don’t expect anything to happen quickly. Many right-wing judges will drag their feet.

And, of course, these released prisoners still will have the stain of a narcotics conviction on their record, making it difficult for them to find jobs — our modern version of the medieval badge of shame.

But could it be the beginning of the realization that the “war on drugs” should end?

Maybe, but note, this wasn’t done by the President or Congress. It was done by the United States Sentencing Commission.

Who?

About the United States Sentencing Commission

The United States Sentencing Commission is an independent agency in the judicial branch of government. Its principal purposes are:

(1) to establish sentencing policies and practices for the federal courts, including guidelines to be consulted regarding the appropriate form and severity of punishment for offenders convicted of federal crimes;

(2) to advise and assist Congress and the executive branch in the development of effective and efficient crime policy; and

(3) to collect, analyze, research, and distribute a broad array of information on federal crime and sentencing issues, serving as an information resource for Congress, the executive branch, the courts, criminal justice practitioners, the academic community, and the public.

Presumably, many members of Congress realize the bankruptcy of the the “war on drugs,” but don’t have the courage to speak out, lest they be branded “soft on crime” by the Neanderthalian elements now holding sway.

So is this an end run — or perhaps a trial balloon — by the sane minority, to avoid election consequences, yet to acclimate the populace to larger measures?

Unlike many special purpose “study” commissions within the executive branch, Congress established the U.S. Sentencing Commission as an ongoing, independent agency within the judicial branch.

The seven voting members on the Commission are appointed by the President and confirmed by the Senate, and serve six-year terms. At least three of the commissioners must be federal judges and no more than four may belong to the same political party.

The Attorney General is an ex officio member of the Commission, as is the chair of the U.S. Parole Commission.

It’s a perfect setup. No one is elected and no one can be “un-elected.”

It’s revealing that today, the best way for our federal government to accomplish something, is for it to be done by unelected officials, not subject to the extremes of Congressional and Presidential bias and electioneering criminality.

(Another example: The seven members of the Federal Reserve Board of Governors are nominated by the President and confirmed by the Senate. A full term is fourteen years. Unlike Congress, they make instant decisions that can be implemented instantly.)

If the new sentencing guidelines prove to be a step toward ending the war on drugs, they are most welcome.

If unelected committees also will become the method of choice by which a moribund central government can stir from its coma, there are advantages, but there also are dangers.

Just as such unelected commissions can be forces for good, they also can be forces for evil, as witness our current Supreme Court.

But perhaps we should be grateful for this one step forward, albeit minuscule and fraught with danger.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

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

—–

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

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

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

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