–Virtually everything that happens in economics is engineered by the rich: Kansas version Tuesday, Jun 16 2015 

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

Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●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..

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

Would it be too much to speculate that 99% of the literate world is completely clueless about the differences between Monetary Sovereignty and monetary non-sovereignty? Or is 99% an underestimate?

Surely, only a small percentage of the people, even those living the nightmare of the euro, understand what has happened to them. All they seem to understand is they are poor when pre-euro, they were not poor.

And not only don’t they understand that they have surrendered the single most valuable asset they have — their Monetary Sovereignty — but they don’t know why this was done, and who engineered it.

(Hint: The rich, of course.) Virtually everything that happens in economics is engineered by the rich.

And now we look at our brethren in Kansas, a monetarily non-sovereign entity, just like Greece, Italy, France and the other euro nations.

What’s The Matter With Kansas And Its Tax Cuts? It Can’t Do Math
Forbes: Business, JUL 15, 2014 @ 1:31 PM
Howard Gleckman, CONTRIBUTOR

The tax cuts in Kansas have been breathtaking. In 2012, at (Governor Sam) Brownback’s urging, the legislature cut individual tax rates by 25 percent and repealed the tax on sole proprietorships and other “pass-through” businesses.

In 2013, the legislature cut taxes again. It passed a measure to gradually lower rates even more over five years. By 2018, the top rate, which was 6.45 percent in 2012, will fall to 3.9 percent.

Kansas is a Republican state. Although the Democrats love the rich, they do save a bit of affection for the poor. The Republicans, by contrast, worship the rich, to the total exclusion of anyone having fewer than a hundred million in assets.

So when the Republicans cut taxes, they cut the taxes that mostly affect the rich: income taxes. And when they increase taxes, they increase the taxes that mostly affect the not-rich: sales taxes.

Brownback To Sign Historic Sales Tax Hike After Bruising Budget Battle

Kansas Gov. Sam Brownback’s signature personal income tax cuts emerged mostly intact from a grueling legislative fight to close a budget deficit that arose after revenue failed to match the conservative governor’s predictions of an economic boom.

Brownback and his GOP allies managed to avoid backtracking on past reductions on income tax rates.

Instead, they raised the state’s sales tax to one of the highest rates in the nation and smokers will be paying 50 cents more for each pack of cigarettes.

Get it? The rich-owned Republicans cut those pesky income taxes on the rich, and then replaced them with sales taxes that mostly impact the middle and low income people. It’s a direct transfer of dollars from poor to rich.

Two bills approved by Kansas legislators in the waning hours of their session will raise $384 million during the fiscal year beginning July 1, to avert a deficit prohibited by the state constitution.

The sales tax will rise to 6.5 percent from 6.15 percent and the cigarette tax will jump to $1.29.

Republicans who pushed the plan said its tax increases have to be seen in the context of the income tax cuts in 2012 and 2013, which the Legislature’s top tax analyst said could be worth $900 million annually.

Isn’t it beautiful?

The rich saved hundreds of millions of dollars a year, and the poor and middle classes will pay for it — and they have no idea what has been done to them.

So long as it’s positioned as anti-Obama and/or anti-liberal, that’s sufficient for them.

Ah, the bliss of ignorance.

We close this post with a sample of economic ignorance as expressed in the above-referenced Forbes article by Howard Glickman:

One cannot credibly argue that tax cuts increase revenue or even pay for themselves. They didn’t for Ronald Reagan. They don’t for Sam Brownback.

They won’t for the next politician who tries — whether he (or she) is in Washington, D.C. or in some state capital.

As has become the norm, Mr. Glickman and Forbes equate the Monetarily Sovereign federal government (which neither needs nor uses tax dollars) and the monetarily non-sovereign state governments (which both need and used tax dollars).

The rich-owned media help perpetuate that myth of equivalence, because it allows them to fool the public, and to transfer dollars from the 99.9% to the .1%, as requested by the .1%.

What do conservatives conserve? They conserve the riches of the rich.

Now that’s engineering.

Rodger Malcolm Mitchell
Monetary Sovereignty

==========================================================================================================================================================================
The Ten Steps to Prosperity:

1. Eliminate FICA (Click here)
2. Federally funded free 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. Federally funded, 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 (the “.1%”) more, with higher, progressive tax rates on all their 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)

Initiating The Ten Steps sequentially 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

Long term view:
Monetary Sovereignty

Recent view:
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

As you know, the federal government has run out of dollars. How stupid? Very stupid. Friday, May 8 2015 

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.

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

As you know, the federal government has run out of dollars — John Boehner told me — so the government needs to cut spending:

In Congress, Income Inequality Comes With Breakfast, Lunch
AP|By CHARLES BABINGTON and LAURIE KELLMAN, Posted: 05/03/2015

Many of the Capitol’s food servers, who make the meals, bus the tables and run the cash registers in the restaurants and carryouts that serve lawmakers, earn less than $11 an hour.

Some make nothing at all when Congress is in recess.

You see, it’s important that the federal government not spend the dollars it has the unlimited ability to create, and what better place to save money than on poor people’s salaries?

Members of the House and Senate collect their $174,000 annual salaries whether Congress is making laws, taking a break or causing a partial government shutdown.

Well . . . ahem . . . not all salaries need to be cut. After all, our Congress has been so effective, we need to reward them with big money, in addition to campaign “contributions” (aka “bribes) and many other perks.

But, lest you think Congress doesn’t know how to be generous:

Both Bailey and Tesfahun (two Capitol servers mentioned in the article) said they once received a pay raise of 3 cents an hour.

It’s too bad the whole thing isn’t handled by private industry, which as everyone knows, not only is more efficient than the government, but more concerned about its employees:

All (Capitol food workers) work for Restaurant Associates, a major New York-based contractor that handles food services for the House and Senate.

The House privatized its food operations decades ago. The Senate ran its own operations, at heavy losses, until 2008. That’s when the then-Democratic majority said taxpayer subsidies were unsustainable, and Restaurant Associates won the contract to take over. (Senators approved the 2008 switch in a voice vote, which any dissenter could have blocked).

Well, that’s just a teensy little lie, because:

1. Taxpayers do not fund federal spending. Unlike state and local governments, the federal government creates dollars ad hoc, simply by paying bills (i.e. sending dollars into the private sector).
2. Thus no federal spending is unsustainable.
3. You hand over spending to the private sector, because you want them to cut spending, which means sending fewer dollars to employees and suppliers — all in the private sector. And you don’t want to be blamed for the abysmal salaries. (That is known as the Pontius Pilate defense — Matthew 27:24)

Anyway, as Republican John Boehner said, “We’re broke.” He meant the federal government, which mysteriously seems to have lost its ability to create its own sovereign currency.

So, being “broke,” the government needs to increase taxes.

Repeal of Estate Tax Rewards Billionaires, Punishes Working Americans
Posted: 04/15/2015

Recently, the House voted for a budget that would end tax credits for many working families that put $1,000 a year in their pockets, on average.

The Republican budget also would cut $5 trillion in funding for benefits and services that make groceries, health care and college more affordable, pay for road improvements, and invest in scientific research.

Yes, we’re broke, so obviously we have to stop feeding those “takers.”

House conservatives (also) plan to eliminate the estate tax, which is paid only by multi-millionaires and billionaires.

An estate has to be worth at least $5.4 million before a dime in taxes gets paid. If the estate is passed on by a couple, it has to be worth nearly $11 million.

Well . . . we have to reward those “makers,” who give politicians the big political contributions, don’t we?

Abolishing the estate tax — which only affects the wealthiest two-tenths of one percent of families — will cost $269 billion over the next 10 years.

For $269 billion, we could replenish the fund that maintains our highways and transit systems (164 billion), and let every low- to moderate-income 4-year-old attend a good preschool ($75 billion).

Or, for $269 billion we could send 9 million striving Americans to community college tuition-free at a cost of $60 billion; keep college affordable for millions more by reversing proposed budget cuts to Pell Grants ($89 billion), which help pay for tuition for needy kids; and ensure there’s enough food on the table for children, seniors, veterans and their families by restoring $125 billion in cuts to food stamps made in the Republican budget.

Of course, since the government really does not need tax dollars, it simply could (should) reverse those ill-conceived spending cuts, regardless of tax collections.

And here is the important part:

The estate tax (is) the only federal levy that curbs the growth of huge inherited fortunes.

America thinks of itself as a classless society, but the nation’s richest one-tenth of one percent holds as much wealth as the bottom 90 percent combined, according to a recent academic study. Translation: 120,000 households own as much stuff as 110 million families.

We are not a classless society. America actually is closer to India, with its castes ranging from Brahmins to “untouchables,” than to the “all men are created equal” society we claim.

The single biggest financial problem facing America is the widening Gap between the rich and the rest — a Gap purchased the rich via political contributions (bribery) and by promises of lucrative employment later (more bribery).

They call it the “death tax” to imply every family losing a loved one pays it. But, 99.8 percent of American families are untouched by the estate tax.

Opponents claim families are forced to sell farms and small businesses to pay the tax. In fact, no family farm has ever been sold to pay the estate tax. Of the millions of small businesses and small family farms, only 20 paid any estate tax in 2013, according to the Tax Policy Center.

So the need to cut costs is a lie, and the need to cut taxes on the rich is a lie.

And the voting mopes are stupid enough to fall for the same lies, year after year after year.

How stupid? Very stupid.

And sad.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
The 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. Federally funded, 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)

Initiating The Ten Steps sequentially 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

–Do you, or someone you know, have type 1 diabetes? Read about this miracle: Friday, May 1 2015 

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

Word-search the post titles on the left side of this blog, and you will find several posts that include the words, “Never will know.”

They all allude to the same phenomenon: It’s hard to identify when something is missing. For instance, when the federal government unnecessarily “saves” money by cutting funds for Research & Development, there is no way to know what that has cost you.

The politicians love to talk about federal “savings,” but never mention what has been lost — because neither they, nor you, can identify those losses. R&D is done on faith. Some R&D produces value; most doesn’t.

But every scientific advance in human history has resulted from some sort of R&D, for which there were no guaranteed returns.

Case Study: Lilly Jaffe
Lilly Jaffe, of Chicago, was diagnosed with type 1 diabetes more than ten years ago, at the tender age of one month. What has happened to Lilly over the past few years is remarkable….

In 2006, her parents Laurie and Mike had attended the annual meeting of Juvenile Diabetes Research Foundation’s Illinois Chapter, where Dr. Louis Philipson, of the University of Chicago, presented an update in diabetes research.

He mentioned a study out of the U.K. that showed that some children diagnosed with diabetes in their first six months of life actually don’t have type 1 autoimmune diabetes, but instead have diabetes characterized by a rare genetic mutation that in about half the cases can be treated with a common oral medication.

A month after that, Lilly was admitted to the University of Chicago’s Clinical Research Center to begin a week-long program to see if the oral treatment could work for her.

She began a small dose of the medicine and her insulin dose was cut in half. Over the course of the week, her oral medication was increased each day, and her insulin dose was decreased.

After a week, tests began showing that, indeed, Lilly had begun to produce insulin on her own — for the first time in her six and half years of life! Lilly_Jaffe

The Jaffes left the hospital that night — with Lilly still on a pump, but using dramatically less insulin.

About five days later, the pump came off, and Lilly had taken the last insulin shot she’ll ever need; that was four years ago. Since then well over 200 individuals around the world have been diagnosed with very similar mutations, close to 100 in the United States alone.

Here was a child whose parents had to test her blood sugar 10 times a day, waking up in the middle of the night, every night, pricking her with painful needles.

Lilly says, “I used to run away from my Mom. I’d be like, ‘Don’t stick me with the needle.'”

Lilly had a form of the disease generally under the umbrella “monogenic diabetes,” that was cured by a drug called sulfonylurea — a drug already in use to help manage Type 2 diabetes.

Consider all the R&D that preceded this discovery: All the gene research, all the chemical testing. All the millions of hours of expensive education that has led us this far — the more millions that will be needed to go further.

Then think of those who never became researchers, and never made discoveries, because they couldn’t afford school. So those discoveries never were made and lives weren’t saved.

US has been cutting medical research funding since 2004
Meanwhile, the rest of the world is investing more

The US’s investment in medical research between 2004 and 2012 declined significantly. The same can’t be said for the rest of the world, as global investment in biomedical research actually increased during that same period, according to a study published today in the Journal of the American Medical Association.

Between 2004 and 2012, the amount of (US) money for research decreased by 0.8 percent a year — as the US’s global contribution to biomedical research dollars dropped to 44 percent in 2012, from 57 percent in 2004.

And while the US was cutting its medical research investments, Asian countries increased their global investment by 7 percent.

This means that some discoveries never get to move ahead, because there’s no money to make it happen.

And here is where the problem lies:

The reasons for the decline in medical research aren’t straightforward. Part of it has to do with a change in the investment landscape, where industry has taken to funding projects that yield results over short periods of time.

But a bigger part of the reason lies in economic downturns that occurred in the early 2000s. “When the US federal government runs deficits, biomedical research is de-emphasized.”

For all those who accept the Tea Party / libertarian thesis that the federal government is too big, and that the private sector always does things better, the fact is: The private sector is ruled by the profit motive.

So unless the R&D looks like it will pay off (which is very difficult to determine), and pay off in a big hurry, the CEOs of major corporations and institutions will not approve the millions or billions of dollars a research project might require — and lead nowhere.

The investor worldwide has become impatient. As a result, the markets have rewarded short-term performance, and that means that a marketing dollar goes further than a science dollar.

The federal government is under no such limitations. Federal spending is constrained only by Congress and the President, not by any lack of dollars or potential profits.

Federal spending, federal deficits and federal debts never are “unsustainable,” the word used by those who either are ignorant of, or uncaring about, Monetary Sovereignty.

When you see it or hear it, you know you are being treated to the Big Lie.

If the US wants to ensure that the health of its citizens is taken care of in the future, or that research in the country won’t be hindered by non-US patents, the US needs to increase spending in biomedical research, and investment in health services research.

Every day, Research & Development saves the lives of the Lilly Jaffes of the world. And every day, the lack of R&D costs the lives of millions.

Years ago, Senator William Proxmire, mockingly issued the “Golden Fleece award 168 times for what he deemed wasteful spending.

No one knows how many people died unnecessarily, as a result of this exercise in ignorance.

In his book, Creativity Inc, Pixar President Ed Catmull spoke of the “chilling effect on research” The Golden Fleece Award exerts.

He argues that if you fund thousands of research projects, some will have measurable, positive impacts and that others will not.

It is not possible to know in advance what the results of every research project would be or whether the results would have value.

He further argues that failure in research is essential and that fear of failure would distort the way researchers choose projects, which would ultimately impede society’s progress.

Today, the Tea/Republicans, with aid from the libertarians and even compliant Democrats, proudly proclaim that federal deficit spending will decrease to where the government actually runs a surplus.

In other words, not only will federal cash infusions to the economy decrease, but the federal government soon will be taking money from the economy.

Does the federal government need this money? No, it has the unlimited ability to create dollars.

Does the private sector need this money. Absolutely.

The lack of funding will continue to impact R&D, not only medical, but ALL research.

For lack of R&D funding, you and those you know and love, will lead less fulfilling lives, suffer too much and die too soon. That is beyond question.

And you never will know why.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
The 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. Federally funded, 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)

Initiating The Ten Steps sequentially 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

–You probably spend too much money on your Medigap policy. Tuesday, Apr 28 2015 

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

Despite the Republicans’ endless attempts to cripple Medicare, it remains one of our greatest federal programs.

Yes, it’s inadequate. It should cover fully every man, woman and child in America.

And yes, it pays doctors and other providers too little, encouraging some to refuse acceptance, while reducing the incentive to become a doctor.

And yes, there absolutely is no reason for a Monetarily Sovereign government to collect FICA, supposedly to “pay for” Medicare, when FICA does no such thing. All FICA does is widen the gap between the rich and the rest.

But even with those shortcomings, Medicare helps millions of Americans survive potentially bankrupting health problems.

For those who claim everything is better if done by the private sector, Medicare does what no private insurance company does. It accepts even those people having an adverse health history and for patients, it is a no-hassle benefits program. The doctors and the hospitals submit everything.

Single-payer is a great concept.

One problem with Medicare: Parts A and B don’t cover everything. You are left with deductible costs that can be prohibitive, especially for long-term diseases like cancer, congenital problems, Altzheimer’s, etc.

Why doesn’t Medicare pay for everything?

There are two (bad) reasons: One is the false belief that if people pay nothing, they will overuse medical care. Not only is this utter nonsense, but it is a non-problem, even if it occurs.

If the federal government were to pay for unnecessary medical procedures, that simply would stimulate the economy.

Two is the false belief that taxes pay for Medicare, so costs must be held down. As previously mentioned, FICA does not fund Medicare. In fact, contrary to popular belief, federal taxes don’t fund anything. The federal government creates dollars ad hoc, by spending.

Because of the big holes in Medicare coverage, many people invest in Medigap policies, through private insurance companies. These policies pay some or all of what Medicare fails to pay. And here again, the federal government has done what the private sector could not and would not do.

The government has standardized coverages. With a few exceptions, there are ten Medigap plans, “A” through “N” (no “E,” “H,” “I” or “J”) which private insurance companies are allowed to offer and — this is the big idea — each plan is standardized.

Every company’s “A” plan is the same as every other company’s “A” plan. (In some cases, companies my offer additional benefits, but no fewer than the standard). All “B’s” are the same; all “Cs” the same, etc.

Why is this important? Because, all you need do is select the plan and then find the cheapest premium. You don’t have to filter through thousands of pages of benefits, benefit exceptions, fine print and other tricks usually found in private insurance contracts.

Just select the plan and the lowest premium.

Done.

And here is where you probably are doing it wrong:

I. Most people select Plan “F,” when plan “G” is cheaper and offers the same coverage, with one exception: On Plan “G” you have to pay an additional $147 as a Medicare Part B deductible.

But the annual premium savings for Plan “G” generally are far greater than that $147, so most people would come out way ahead by buying Plan “G.”

II. Very few people select the least expensive insurance company.

Remember: Once you have decided on your plan (“A” through “N”), you only need to decide on an insurance company, and that decision is based solely on cost. Simply pick the cheapest one. It’s that easy.

Every state has a different roster of companies. In my state, 21 companies offer Medigap policies; only one can be the cheapest. All the others are more costly.

So who is wasting money buying unnecessarily expensive policies in my state? Virtually everyone.

Our biggest provider is Blue Cross, Blue Shield. It is not the cheapest. In fact, it is among the more expensive. Why does anyone buy a BCBS Medigap policy?

They believe BCBS is “better” somehow. (It isn’t. By law, the BCBS policy is essentially identical with all other policies in the same category.)

Think of all those millions of people who are not buying the cheapest Medigap policy (in each category). Are you one of them?

More importantly, if you are not buying the cheapest policy, will you now do a bit of research to find and purchase the cheapest policy?

Odds are, you won’t. If you are typical, you will continue to believe — despite all facts — your insurance company is “better” than the one with the lowest premiums, and you’ll stay right where you are.

People hate to change their minds and people hate to accept the possibility they have been wrong. I was one of those, who simply was too lazy to investigate, and I thought that in some unknown way, my insurance company was more reliable, safer or easier than a company offering cheaper rates — especially if I never had heard of that cheaper company.

When it comes to Medigap, the best company is the cheapest company. It’s just that simple.

I admit it. I was wrong. (And lazy.) That’s one of the penalties of being human.

It also, by the way, is the fundamental reason why people don’t accept Monetary Sovereignty. It’s too simple.

The notion that the federal government never can run short of its own sovereign currency, and can pay for anything without collecting taxes, and can do so without causing the dreaded Weimar/Zimbabwe hyper-inflation — that notion is just too simple.

It falls afoul of the “too-good-too-be-true” and the “no-such-thing-as-a-free-lunch” rules.

So people who would benefit mightily, if the government eliminated FICA and offered free, comprehensive Medicare for everyone, reject the idea. And they don’t just reject it, but they reject it angrily and with lots of insults directed at anyone who suggests it.

They would much rather hold to their irrational beliefs that federal deficits and debts are too high. So they pay, pay, pay more, more, more and receive less, less, less.

Now my question is: If you purchase a Medigap policy, which insurance company will you use?

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
The 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. Federally funded, 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)

Initiating The Ten Steps sequentially 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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