–Jimmy Carter unknowingly explains the real problem in Gaza — in one sentence Saturday, May 2 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.

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

In just one sentence, Jimmy Carter articulated the real problem in Gaza. He just didn’t realize it.

Former President Jimmy Carter: Gaza situation ‘intolerable’

JERUSALEM (AP) — Former U.S. President Jimmy Carter said Saturday that eight months after a bloody war in the Gaza Strip the situation there remains “intolerable.”

Carter and his delegation were supposed to visit the isolated territory but earlier this week called it off citing unspecified security concerns.

Speaking to reporters in Jerusalem, Carter said he was still determined to work for a Palestinian state in the West Bank and Gaza.

Those “unspecified security concerns” meant Carter felt he wasn’t safe in the very land he says should be an independent state.

This is the land that vows to destroy Israel, but at the same time, Carter wants Israel to grant it more land for rocket launches.

And here is the definitive Jimmy Carter statement about Gaza and Palestine:

“What we have seen and heard only strengthens our determination to work for peace,” he said. “The situation in Gaza is intolerable.

“Eight months after a devastating war, not one destroyed house has been rebuilt and people cannot live with the respect and dignity they deserve.”

Think about it. In eight months, Hamas has not rebuilt one house. Meanwhile, its work has been going forward furiously to build bigger, stronger, longer attack tunnels.

That is where all that concrete, Israel allow to enter, has gone — concrete Hamas said it would use for house-building, has been diverted for terrorist tunnels.

Is is any wonder the people of Gaza cannot live with respect and dignity? They live under a cruel and aggressive terrorist regime that cares nothing for peace, and cares nothing for the people of Gaza. In fact it uses its own civilians as human shields, when it fires its rockets.

Carter and the political innocents worldwide may wish for a “two-state solution.” They complain Israel does not allow it.

But this is not what Hamas wants. For Hamas, the sole goal is the destruction of Israel, regardless of the pain that effort causes its own people.

Not peace. Not the adorable “two-state solution,” so beloved in the imaginations of the naive left and on college campuses.

No, Hamas wants only the power that comes with telling its people that somehow, their salvation lies with the destruction of Israel, and the death of all Jews.

“Not one destroyed house has been rebuilt.”

Jimmy Carter, the perennial apologist for terrorism and critic of Israel, could not have explained it better.

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

–The two worlds: Yours and theirs. Where would you rather live? 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.

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

There are two worlds. You live in one; they live in another.

And yes, money doesn’t buy happiness, and sometimes money even buys sadness. But to be perfectly honest: I’d rather live in their world.

Plutocrats, By Chrystia Freeland

Let me tell you about the very rich. They are different from you and me.” So says the narrator at the start of F Scott Fitzgerald’s short story “The Rich Boy”. He explains that people who are born rich believe “deep in their hearts that they are better than we are.

The world is now experiencing a boom in personal wealth akin to that of the last years of the 19th century. We are, as Freeland puts it, in the second gilded age.

In almost all walks of life the very top have been getting disproportionate rewards compared with the competent middle-rankers.

Why is this happening, and why are people left behind?

One aspect of the way the very rich are able to twist things to their advantage even in sophisticated democracies is relevant right now: how the American rich are shaping US tax policy.

(In) the US the middle class have barely increased living standards for 30 years.

Why? You not only permit it, but you endorse it — not only endorse it, but you defend it with all your might.

For the uber-wealthy, a new threshold for luxury-priced homes: $100 million and up

Rather than settle for garages of antique cars or a museum’s worth of paintings, billionaires are increasingly willing to pay $100 million for homes that can serve as showcases for their fortunes.

Five homes sold around the world for more than $100 million in 2014, and a record 18 were listed for sale at that level, according to the Christie’s (real estate brokerage) report.

Last year’s purchases include a $146 million French Riviera mansion. Each square foot of the home cost $22,577 — roughly equivalent to a new Honda Accord.

The luxury market contrasts with the still-struggling U.S. real estate market as a whole. Millions of homeowners still owe more on their mortgages than their homes are worth — a vestige of the housing crash that triggered the Great Recession in late 2007.

Buyers remain sensitive to changes in mortgage rates and price swings that could make ownership costlier. At the same time, access to credit remains tight for some. Sales have been running below a pace associated with healthy markets.

Here in America, the politicians, Koch-bribed via campaign contributions (Thank you right wing Supreme Court) and promises of lucrative jobs later, tell you Social Security is running short of money.

So, they say, your benefits must be reduced and your taxes increased.

It’s part of the Big Lie that the federal government is running short of money and deficit spending will lead to a Wiemar/Zimbabwe/Argentina hyper-inflation.

And, of course, the capital gains the rich receive, with no effort, are taxed much less than the salary you receive at great effort. Are the 1%’s capital gains more valuable to America than the 99%’s salaries?

No, but how much will you contribute to your political representative’s election effort? And will you give him an excessively compensated job when he leaves office?

The rich will.

And if I suggest you learn Monetary Sovereignty — if I suggest you contact your political representatives and demand that FICA be eliminated, and demand a fully paid, comprehensive Medicare for every man, woman and child in America, and demand they embark on the Ten Steps to Prosperity — if I suggest you make these demands, will you tell me I’m a communist, a socialist and a fool, without even trying to understand Monetary Sovereignty?

Do you really prefer to live in your world, where you struggle to provide for your family and for yourself, while you also struggle to provide for the rich?

Would you really rather struggle just to accept the status quo, than struggle to change the way everything favors the rich, in our so-called “land of equality”?

Do you really accept the idea that money is speech, so the rich are entitled to buy elections and buy lower taxes and buy the right to make people work harder and longer for less and less?

Do you really buy the notion that the poor are lazy and only the rich work hard?

If not, when was the last time you contacted your politicians? When did you last vote?

And if you voted, did you vote for someone who will defend the poor and the middle — or are they in league with the rich?

What are you doing to help your family and yourself?

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

Welcome to Stossel-world and Ritholtz-world: Where the rich do just fine, thank you. Thursday, Apr 30 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.

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

There is a reason why people who probably know better, pretend to be ignorant about economics. It has to do with widening the Gap between the rich and the rest.

Here are excerpts from an article written by highly paid TV personality, and therefore economics expert, John Stossel.

Government Doesn’t Create Jobs
The real key to job creation is leaving people free to explore, innovate and profit.
John Stossel | April 29, 2015

I took a camera to Times Square this week and asked people, “What creates jobs?” Most had no answer.

One said, “stimulus!” What? Government creates jobs? No!

I suppose it’s natural that people think government creates jobs because politicians always say that.

“We’ve now created more than 10 million,” said President Obama. But that just meant that he took office at the start of the recession, and finally job creation resumed.

He didn’t cause that. In fact, his taxes and complex regulation slowed job creation.

Before we go any further, here’s a spoiler alert. TV expert Stossel is a right-wing libertarian, who claims the federal government just gets in the way of the little guys.

He pretends we all are self-sufficient, no one needs help, and if there were no federal government, we would be better off.

(For some mysterious reason, known only to libertarians, state and local politicians are honest, well-meaning and effective. So all federal functions should be given to the financially troubled states.)

In Stossel-world, when the federal government spends a billion or two building roads and bridges, no jobs are created. The roads and bridges must be built by elves, not people.

And when the federal government saved General Motors from bankruptcy, that saved no jobs (except for the people who work for GM).

And when elderly people receive Social Security and Medicare benefits, so they are able to buy food, clothing and shelter, that creates no jobs in the food, clothing and shelter industries.

And when billions are spent on R&D for drugs and rockets to send probes to the moon, Mars and other planets, that created no jobs in the R&D industries.

And when the federal government helps pay for college educations, that creates no jobs for the educated.

And all those billions paid to soldiers and to military armament manufacturers and for all the logistics of the military — in Stossel-world that creates no jobs.

And when the federal government pays for food inspection and drug inspection, and our federal court system — in Stossel-world that creates no jobs.

And in Stossel-world, when the federal government itself employs more that 2.5 million people, those actually are not jobs for people — just more elves.

Mitt Romney, was a little more free-market-oriented, but he sounded like Obama when he talked about jobs. He had “a plan” to add 12 million. Don’t assume his plan was just to get government out of the way of the private sector—Romney said it’s a bad idea to cut government spending during a recession.

FDR’s New Deal was the dawn of belief that jobs flow from government. FDR didn’t seem to care whether jobs people did were productive or sustainable. He just wanted something done about the “armies” of unemployed. If they weren’t given jobs, they might become a real army and revolt.

Jobs come from government getting out of the way and letting employers produce goods.

In libertarian terms, government “get out of then way” has a magical feeling, like making a rescue boat “get out of the way” and allowing people to swim for their lives.

He wants Medicaid to “get out of the way,” and allow the poor to sicken and die. Or let the military to “get out of the way” and let our enemies invade.

And for certain, let the U.S. Customs and Border Patrol get out of the way and let everyone in. (Oops, strike that. Border Patrol is one bit of government the right wing loves.)

Every new layer of regulations sounds nice — protecting the environment, providing more health care, forbidding discrimination against disabled people — but most rules do more harm than good.

See, these things “sound nice,” but in Stossel-world, protecting the environment, providing more health care and forbidding discrimination against disabled people do more harm than good.

Humans have needs and desires. Entrepreneurs see those needs as opportunity.

They hire people not out of generosity or because government told them to—but because it’s profitable to employ people if they produce valuable goods.

In Stossel-world, entrepreneurs can be relied upon to protect the environment, provide more health care and forbid discrimination. Consider British Petroleum, Wells Fargo and JP Morgan Chase as examples of benevolent providers upon whom we should rely to protect the environment and provide health care.

If it’s not profitable, that means those people would be better employed doing something else. The prices customers are willing to pay and the wages workers accept are the best indication of which jobs can be done profitably and therefore ought to be done.

Yes, in Stossel-world, greed and profitability can be relied upon to protect the environment, provide more health care and forbid discrimination.

But politicians don’t trust business owners to make those decisions.

Gee, I wonder why.

Anyway, the nonsense went on and on and on, with the usual libertarian mantra that private business and its profit motive will take care of us, the same way it has taken care of poverty, slavery, bigotry, civil rights and ignorance, through the years.

Which brings us to the ever-strange Barry Ritholtz, Bloomberg View columnist and founder of Ritholtz Wealth Management. This article appeared in the April 29th Chicago Tribune:

“Higher gas tax needed to restore American highways”

Instantly, you know the article is wrong, simply because in the real world of Monetary Sovereignty, federal taxes do not fund federal spending.”

Unlike state and local governments, the federal government creates dollars, ad hoc, simply by paying bills. It neither needs nor uses tax dollars.

In the U.S., we have allowed a transportation grid that was once the envy of the world to become an embarrassing wreck.

Since 1993, the U.S. federal gasoline tax has been 18.4 cents a gallon. This money finances the Highway Trust Fund.

Ah yes, the mythical Highway Trust Fund, which is like the equally mythical Social Security Trust Fund and Medicare Trust Fund. In the words of the U.S. General Accounting Office:

In contrast to a private trust fund, the federal government does not have a fiduciary responsibility to the trust beneficiaries, and it can raise or lower future trust fund collections and payments or change the purposes for which the collections are used by changing existing laws.

Translation: The federal government can do whatever it damn well pleases with its fake “trust funds.” It can increase or decrease the balances at will and change how the money is used.

The federal government is not helpless in the face of reduced tax collections, as Mr. Ritholtz would have you believe.

As costs for (road) repairs have increased, revenue to pay for ordinary maintenance and repairs has failed to keep pace.

There, in one short phrase, is the full statement of the Big Lie — the lie that the federal government needs federal taxes to pay its bills.

In Ritholtz-world, our “impoverished” federal government (the sole entity that has the unlimited ability to create dollars), somehow has run short of dollars, and now cannot fix our roads unless it takes dollars from us drivers.

Ritholtz-world sees three “problems”:

–The tax never has been adjusted for inflation.
–During the recession, Americans drove less.
–The U.S. fleet of cars is more efficient than ever

And Ritholtz-world has a solution:

The solution is as obvious as it is rational: Raise the gas tax so we can start making the improvements to our infrastructure today — and index it to inflation.

As in Stossel-world, the ravings of Ritholtz-world go on and on, but those two worlds have one thing in common:

They both punish the poor and middle-classes far more than the rich. They widen the Gap between the rich and the rest.

The reason may be that Stossel is paid by the 1% and Ritholtz’s clients are the 1%.

The 1% hates government because one primary purpose of government is to protect the weak from the strong. The billionaires, being strong, want freedom to do anything that enslaves the populace. They want the Gap to be widened.

Reductions in federal deficit spending widen the Gap between the rich and the rest, because most deficit spending helps the 99% more than it helps the 1%.

That is why the rich-favoring libertarians always favor deficit reduction.

And as for the gas tax, who is hurt more — the lower or middle-income salaried worker, struggling to pay his bills, or the billionaire, for whom the gas tax is not even a rounding error on his personal balance sheet?

Yes, welcome to Stossel-world and Ritholtz world, where the rich do just fine, thank you.

And the 99%?

Well, who really cares about them (us)? Seemingly, not Stossel and Ritholtz.

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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