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●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.
Yes, that’s right. The federal government soon will run out of its own sovereign currency, the dollar.
How do I know? I read it in the Washington Times:
Obamacare may not have enough enrollees to stay solvent
Fewer than 10 million projected; 13 million needed to stay solvent
The administration on Monday said fewer than 10 million Americans will enroll in Obamacare’s health exchanges this go-around, well short of the 13 million target congressional scorekeepers deemed critical to its economics.
The number of enrollees is key, because if too few take part in the exchanges, the pool of customers is too small, and it could skew the economics of Obamacare, forcing insurers to raise premiums and pushing even more people to forgo coverage, choosing to pay the tax penalty instead.
So there you have it. The U.S. Department of Health and Human Services, of which the Affordable Care Act is a part, soon will be insolvent.
And because the U.S. Department of Health and Human Services is an agency of, and embedded in, the United States federal government, its insolvency means the federal government itself will be insolvent.
In short, the federal government, which invented the dollar, soon will run of the dollars it invented — if Congress wants that to happen.
The new projection comes as Republicans prepare to take full control of Congress and redouble their efforts to repeal the law.
Repealing ACA would be a good idea — it’s a crappy law — if Congress and the President had a better idea.
For instance, a better idea would be to create a simple: Comprehensive, federally funded Medicare, Parts A, B and D, with no deductibles, for every man, woman and child in America.
The federal government, being Monetarily Sovereign and so having the unlimited ability to pay its bills, easily could fund such a Medicare.
But there is a problem.
It would benefit the lower- and middle-income groups, thus narrowing the Gap between the rich and the rest. And Congress and the President are not paid to narrow the Gap.
No, they are paid by the rich (via campaign contributions and promises of lucrative employment later), to widen the Gap.
You know about the Gap. It is what makes the rich rich, for if there were no Gap, no one would be rich, and the wider the Gap, the richer they are.
More than dollars, more than expensive toys, widening the Gap is what the rich crave most.
So Congress and the President will claim the government “can’t afford” to support Medicare, can’t afford to support Social Security, and surely cannot afford the ACA.
And when facts show that to be a lie (actually, part of the Big Lie), Congress and the President will warn us about hyperinflation.
And by the time facts show that also to be a lie, the people will be so confused, they will accept whatever their leaders tell them.
Yes, we will run short of the dollars the government easily could provide, and as usual, the lower 99.9% will be punished.
Meanwhile, the right wing Supreme Court will say money is nothing more than free speech. The rich will continue to “speak more freely”– right into the pockets of the politicians — than you and I.
And the politicians will use that “free speech” to buy elections and an opulent lifestyle — including blue ribbon, gold-standard health care — for themselves and their families.
And you will impoverish yourself trying to pay for your health care insurance, and health care itself — all because the federal government told you it has “run out of dollars.”
Seems impossible, but that’s how that works.
Rodger Malcolm Mitchell
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
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.