How the Rich Use the Big Lie to Cheat You: Chapter II: The Debt Friday, Feb 5 2016 

LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

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

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In the previous chapter, “The Dollar,” we saw how the US dollar is not a physical entity, but rather is nothing more than an accounting notation — i.e. numbers in an account. Unlike physical objects, numbers have no limit. The government never can run short of numbers.

We also saw that dollars are debts of the US and that the value of any debt is supported by its collateral. While gold and silver often have been part of the collateral for the US dollar, today (as of August 15, 1971) the collateral for the dollar solely is the full faith and credit of the US government.

The word “debt” has powerful, yet ambiguous emotional connotations. For most people, “owing debt” seems financially dangerous, while “paying off debt” seems financially prudent. Yet, among house mortgages, auto payments and credit cards, the vast majority of us “owe debt,” and this includes even the richest 1% of us.

If you are a lender, you own debt. If you own a bank savings or checking account, or a bank CD, or a T-bill, T-bond or T-note you are a lender.

Your bank owes you the dollars deposited into your savings or checking account or CD. They are debts of your bank. They are the way banks do business.

Though deposits are bank debts, banks boast about the amounts of their deposits. As a rule, the bigger the bank, the greater the deposits, the more debt. You seldom will read or hear any concerns about the amount of debt (i.e. deposits) a bank has, and in fact, the term “debt” seldom is used.

One way to lend to your bank is by making a deposit in your checking, savings or CD account. The total amount deposited in US banks is $12 trillion. This is the amount banks owe to their depositors.

Though these accounts constitute bank “debt,” no one other than an accountant calls it “debt.” Everyone refers to it as “deposits.”

As a depositor, you continue to own the dollars you deposited (Otherwise, they would be a gift, not a debt.) And the bank owns those dollars, too, which it invests for profit. By depositing, i.e. by lending to the bank, you increase the supply of dollars in the economy.

The evidence for your ownership of those dollars might be your passbook or online numbers in your account.

To lend to the US, you can buy a T-bond, T-note or T-bill, that is, you can make a deposit in your T-security account at the Federal Reserve Bank. The total of those deposits is $19 trillion, or said another way, the total US debt is $19 trillion.

In short, the US debt is nothing more than the total of deposits in the FRB.

Buying a T-bond is much like buying a bank CD, and having your T-bond “paid off” is much like having your bank CD paid off. In both cases, a bank (FRB or private bank) debits your bank account and credits your checking account. NO ADDITIONAL DOLLARS NEEDED

Knowing that federal “debt” is simply the total of deposits in T-security accounts at the world’s safest bank, the FRB, what do you make of this web site: fixthedebt

The Era of Declining Deficits is Over
January 27th 2016

The Already Unsustainable Debt Path Is Now Much Worse

The official budget and economic forecast from the nonpartisan Congressional Budget Office shows that the era of declining deficits is over.

–The deficit will stop declining this year and start growing again.
–Trillion-dollar deficits will return by 2022.
–The national debt will grow by more than $10 trillion over the next decade.

Irresponsibility in Washington Is a Chief Culprit in the Worsened Outlook

–Last year, Congress added over $1 trillion to the projected debt in 2026 by passing unpaid-for tax breaks and Medicare spending increases.
–Failure to follow the “pay-as-you-go” law that requires paying for new policies is responsible for roughly half of the deterioration of the country’s fiscal outlook from last year.
–If policymakers continue to act irresponsibly, instead of taking positive action to get the debt under control, the debt projections will be much worse. This could add an additional $1.4 trillion to the debt, making it reach 91 percent of the economy by 2026.

Well, that’s pretty ominous: “Unsustainable, act irresponsibility, deterioration of the country’s fiscal outlook, 91 percent of the economy.”

Before we analyze the validity of these warnings, consider the two luminaries who founded fixthedebt: The notorious Erskine Bowles and Sen. Alan Simpson, Co-Chairs of the National Commission on Fiscal Responsibility and Reform

They suggested balancing the federal budget by taking huge cuts out of Social Security and Medicare, while “broadening the tax base” (i.e. taxing the lower income groups more.) The upper 1% income groups loved it, as did the media, economists and politicians.

The ominous warnings are not new. We published a post showing how, as far back as 1940, and undoubtedly further back than that, the federal debt was referred to as a “Ticking Time Bomb.”

Seventy-five years have passed since that warning. The federal debt has risen from just $42 billion to an astounding $14 trillion — and the “time bomb” still is ticking.

At what point do we begin to understand that the warnings are bogus? Personally, I would be embarrassed to predict disaster for 75 years, only to be proven wrong again and again. Apparently, the fixthedebt folks don’t feel shame.

They use the word “unsustainable” to describe the federal debt and deficit, but they never explain what they mean.

Do they mean the federal government will run short of dollars to service its so-called “debt”? No, I’ve never seen them write that; they know our Monetarily Sovereign, federal government is not like state, county, city and euro nation governments.

Those governments can run short of the currency they use. The federal government cannot run short of its own sovereign currency.

What evidence is provided by “fixthedebt? I found these statements on their website:

The long-term growth in the debt will be largely driven by rising health care costs and an aging population. Nearly half of the projected increase in total spending from 2016 to 2026 is for Social Security and Medicare.

Rising debt will impede economic growth and impair the standard of living for Americans.

Ever-growing levels of debt threaten citizens’ and families’ economic well-being in a number of ways. A large debt:

–Hurts wages and jobs
–Makes borrowing more expensive for important investments
–Harms our children
–Threatens the safety net
–Risks a real crisis
–Prevents us from growing the economy

With the proposed “cure”: Cut Social Security and Medicare benefits, you are supposed to believe this will not “impair the standard of living for Americans.”

Actually, it won’t impair the standard of living for rich Americans.

Here’s a bit more:

As the government continues to issue more and more debt, the debt “crowds out” productive investments in people, machinery, technology, and new ventures.

This is the old, nonsensical, “crowds-out,” mantra. Federal deficit spending adds dollars to the economy. How can adding dollars by purchasing goods and services from the economy and by putting more dollars into people’s pockets “crowd out” investments?

Quite the opposite, federal deficit spending is stimulative. It is the method by which the federal government frees us from recessions and depressions. The Great Depression was cured with the deficit spending of WWII. The recent Great Recession was ended with stimulative deficit spending.

Growing national debt can drive up interest rates throughout the economy, leading to higher interest payments on mortgages, car loans, student loans, and credit card debt. Although rates are currently low—due mainly to the weak economy and temporary efforts by the Federal Reserve to keep them down — they will most certainly rise as the economy recovers, and they will rise much higher if debt continues to grow.

Completely backwards. The national debt has been growing for 75+ years and until recently, interest rates began at zero.

They have gone up a bit now, not because of the debt, but because the Fed increased them. Even fixthedebt admits the Fed, not the debt, controls interest rates.

And note that phrase, “as the economy recovers.” Fixthedebt predicts terrible effects from a rising debt, while simultaneously predicting the economy will recover!

Growing national debt means that the government must pay higher interest payments to service that debt. The nonpartisan Congressional Budget Office projects interest costs will more than triple from about $250 billion in 2016 to more than $800 billion in ten years.

By 2030, 100 percent of the revenue we collect will go toward interest payments and mandatory spending. That leaves little room for important priorities and investments such as national defense, education, infrastructure, low-income support, and basic research.

This is based on the false premise that federal taxes pay for federal spending. If taxes paid for spending, there would be no deficit. So what fixthedebt seems to be saying is, the sale of T-securities (i.e. debt) limits the government’s ability to spend on priority items.

Of course, we know that isn’t true, because the federal government pays its bills by creating dollars ad hoc, and never can run short of dollars. So its ability to spend cannot be limited.

Further, do you remember the Fed’s Quantitative Easing (QE) program? It was a program in which the Fed purchased securities from the private sector.

During QE, the Fed purchased $3.5 TRILLION worth of debt, and now owns close to $4.5 TRILLION in debt.

Where did the Fed get the $4.5 trillion to take that much debt off the market? It’s the government’s bank. As such, it’s ability to create dollars is limited only by its ability to press computer keys. That is the meaning of Monetary Sovereignty.

And those T-securities continued to earn interest; the Fed paid the U.S. Treasury nearly $500 million in interest over the past six years.

Because dollars are infinitely available to the federal government, money freely moves from the left-hand pocket (the Fed) to the right-hand pocket (the Treasury) and back again.

The trustees who oversee Social Security and Medicare estimate both are on a road to insolvency. Social Security’s Disability Insurance trust fund will become exhausted in 2022, and Medicare’s Hospital Insurance trust fund will be exhausted in 2030.

Here again, fixthedebt pretends the US is not Monetarily Sovereign and can run short of its own sovereign currency — the basic element of the Big Lie. Because Social Security and Medicare are federal agencies, they can run short of dollars only if Congress and the President will it.

Failure to get the national debt under control could precipitate a crisis where investors are no longer willing to loan money to the government at affordable rates.

Two lies in one sentence: First, when it comes to the federal government all rates are “affordable.” Second, because the government cannot run short of dollars, it never needs to borrow or rely on investors.

Finally, fixthedebt describes itself as “nonpartisan.” This is a popular ploy, to give legitimacy to a questionable group. Fixthe debt is about as nonpartisan as the Republican National Committee, and about as truthful.

In short, concerns about a non-existent, but never-ending, imaginary debt crisis, constitute a pack of lies and misleading statements, which together form the Big Lie.

We discussed the lies, misstatements and misleading comments found on the fixthedebt website, but there are dozens of such sites, mostly supported the by the richest .1% of us.

Most of them confuse federal deficits (the difference between taxes and spending) with federal debt (the total of T-security accounts at the Federal Reserve Bank). It is possible to have federal deficits without federal debt (Don’t sell T-securities), and it is possible to have federal debt without federal deficits (Sell T-securities even when taxes equal spending).

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Next, we will discuss the question of motive: Why do so many politicians, media and university economists tell the Big Lie.

Rodger Malcolm Mitchell
Monetary Sovereignty

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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 Click here
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 grow the economy, and narrow the income/wealth/power Gap between the rich and you.
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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

Recessions begin an average of 2 years after the blue line first dips below zero. There was a dip below zero in 2015. Recessions are cured by a rising red line.

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.

Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..

Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between rich and the rest..
•Austerity is the government’s method for widening
the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY

How the Rich Use the Big Lie to Cheat You: Chapter I: The Dollar Thursday, Feb 4 2016 

LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

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

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Chapter I: The Dollar

For billions of years in the history of the universe and for thousands of years in the history of the human species, there was no United States and there were no US dollars.

Native Americans first arrived on this continent about 15,000 years ago, but still there was no United States and no US dollars.

By the year 1770, mostly European immigrants had established 13 colonies, and in 1776, delegates from these colonies met in a Continental Congress to create the United States of America.

The nation they created is not a physical entity; it is a legal entity, created from thin air.

Yes, the USA has those spacious skies, amber waves of grain, purple mountain majesties, and fruited plains, but that is not what was created in 1776. Being only a legal entity, and not a physical entity, the “USA” created in 1776, cannot be seen, tasted, smelled, touched or heard.

The sovereign United States of America, like all nations, was created from thin air — by an arbitrary collection of laws — written by men.

Like all nations, the newly created US needed some form of money, so the founders decided to create their own sovereign currency rather than using some other nation’s money (unlike the cities, counties, states and euro nations, which do not use their own sovereign currency). The founders decided to pass laws that made the USA Monetarily Sovereign.

From 1775 to 1779, the Continental Congress created from thin air, and issued, $241,552,780 worth of Continental Currency.

Why $241,552,780? It was just the total of eleven different printings. The Congress had the power to create, from thin air, more Continental dollars or fewer, as it chose, merely by interpreting existing laws and by passing new laws. The Congress was sovereign over its currency.

Because there is no limit to what laws can dictate, there was no limit to the number of Continental dollars the Congress could create.

Congress appointed Robert Morris to be Superintendent of Finance of the United States in 1782. Morris advocated the creation of the first financial institution chartered by the United States, The Bank of North America.

Like the United States itself, the Bank of North America was created from thin air, by the passage of arbitrary laws. It was a legal, not a physical, creation.

On August 8, 1785, the Continental Congress of the United States authorized the issuance of a new currency, the US dollar. The Coinage Act of 1792 established the dollar as the basic unit of account for the United States.

Thus, the US dollar exists, not in any physical form, but only as an accounting term.

The US itself, the Bank of North America, and the US dollar, are not physical entities. They are legal entities, created from thin air by arbitrary laws. While the amount and form of a physical entity are limited by many physical factors — production, supplies, shipping, etc. — a legal entity is limited only by laws.

Like the US, the US dollar cannot be seen, tasted, smelled, touched or heard.

The dollar bill in your wallet is not a dollar. That piece of paper is just the title — evidence of ownership — to a dollar. Just as a car title is not a car and a house title is not a house, a dollar bill is only evidence you own a dollar.

Tear that paper in half, and you do not own two half dollars. Change the appearance — the size, color or words — of that piece of paper and it may continue to represent the same dollar, so long as the laws say so. A dollar bill, a check for one dollar, a wire transfer of a dollar, a savings account passbook showing a balance of one dollar, all are legal representations of that same US dollar.

Not only did arbitrary laws create the dollar, but arbitrary laws created the value of the dollar.

Not understood by the public is the fact that every form of money is a form of debt. And the value of any debt is based on its collateral, so every form of debt/money is backed by collateral.

The collateral for today’s dollar is the full faith and credit of the US government.

“Full faith and credit” may sound nebulous to some, but it actually involves certain, specific and valuable guarantees, among which are:

A. –The government will accept only U.S. currency in payment of debts to the government
B. –It unfailingly will pay all it’s dollar debts with U.S. dollars and will not default
C. –It will force all your domestic creditors to accept U.S. dollars, if you offer them, to satisfy your debt.
D. –It will not require domestic creditors to accept any other money
E. –It will take action to protect the value of the dollar.
F. –It will maintain a market for U.S. currency
G. –It will continue to use U.S. currency and will not change to another currency.
H. –All forms of U.S. currency will be reciprocal, that is five $1 bills always will equal one $5 bill.

The full faith and credit of the fledgling US was insufficient to give the early dollar enough value, so additionally the dollar was collateralized by gold and silver:

In the early 19th century, gold rose in relation to silver, resulting in the removal from commerce of nearly all gold coins, and their subsequent melting. Therefore, in the Coinage Act of 1834, the 15:1 ratio of silver to gold was changed to a 16:1 ratio by reducing the weight of the nation’s gold coinage.

This created a new U.S. dollar that was backed by 1.50 g (23.22 grains) of gold. However, the previous dollar had been represented by 1.60 g (24.75 grains) of gold. The result of this revaluation, which was the first devaluation of the U.S. dollar, was that the value in gold of the dollar was reduced by 6%.

More recently, (in the Bretton Woods Agreement negotiated after World War II) the dollar was arbitrarily collateralized by 0.888671 grams of gold (plus the full faith and credit of the US government).

Then, on August 15, 1971, the laws were changed yet again, and the value of the debt known as “the US dollar,” no longer was partly collateralized by gold, but only by the US government’s faith and credit.

In summary: We repeatedly have used the phrase, “from thin air,” to emphasize the non-physical status of the US dollar. Being non-physical, and existing only because of non-physical laws, the US dollar is under the total control of the US government.

The existence of the US, and the existence of the dollar, and the total of outstanding dollars, and the value of each individual US dollar was and is controlled by our laws, which the federal government arbitrarily can change at any time, without limit.

So long as the federal government does not run short of laws, it cannot unintentionally run short of US dollars, nor have its dollar forced into an unintentional loss of value (aka “inflation”).

Next, Chapter II will discuss why America’s absolute sovereignty over the US dollar (Monetary Sovereignty) is important to you.

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Help us teach this to America
LOOK FOR US ON GOFUNDME.COM: 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 Click here
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 grow the economy, and narrow the income/wealth/power Gap between the rich and you.
——————————————————————————————————————————————

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

Recessions begin an average of 2 years after the blue line first dips below zero. There was a dip below zero in 2015. Recessions are cured by a rising red line.

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.

Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..

Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between rich and the rest..
•Austerity is the government’s method for widening
the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY

Football, Tobacco, Guns and Taxes: What Do They Have in Common? Sunday, Jan 31 2016 

LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL
Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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Football, Tobacco, Guns and Taxes: What Do They Have in Common?

I. FOOTBALL:

I just saw an excellent movie, “Concussion.” It tells the story of Dr. Bennet Omalu who discloses the facts about serious brain damage, madness and early death in football players who suffer repeated concussions. The disease is called “chronic traumatic encephalopathy (CTE)”

According to the film, the National Football League long had known about the problem, but it and attempted to squelch any revelation, to the point of bribing the FBI to threaten Dr. Omalu with deportation.

Not only were the wealthy football owners angry at the doctor, but the fans and the football players themselves were in a state of angry denial. They wanted to accept the NFL’s lies, even while people were suffering and dying.

Today, the NFL has been dragged, kicking and screaming, into its “concussion protocol.” Any player who seems to be hit hard enough to sustain a possible concussion, is examined by a doctor, who determines whether the player is fit to return to the game.

If the player is deemed unfit, he is sidelined until the doctor determines fitness.

The protocol is a sop to the public, which apparently is satisfied that “something is being done.” But it is a sad joke for several reasons:

1. CTE may be impossible to detect via a sideline or locker room examination. CTE even may be impossible to detect at any time in a living person, until very severe damage becomes obvious (aka “punch drunk”), at which time the devastation is permanent and life threatening.

2. The damage is cumulative, and can be invisible until irrevocable and terminal damage occurs. Months after concussion symptoms such as dizziness, headaches, anger and memory loss fade, the brain continues to show signs of injury.

3. The “concussion protocol” doctors are hired by the NFL, which already has demonstrated its willingness to lie and to sacrifice players in the name of money. It was the NFL’s doctors who sent young men back in to play, shortly after being “dinged” or “having their bell rung” (favorite flippancies for severe brain damage).

If you like your sport to be filled with action, the safer alternatives are rugby or flag football, neither of which involve as many head impacts as does American football.

But, the players won’t demand change. The government won’t demand it. The fans won’t demand change. The NFL won’t change. The reason: Money.

The only thing that can stop this disease is the acknowledgment of the facts, by the mothers and fathers of the children who play football, beginning at a young age, and who receive thousands of head impacts before they are finished with the game.
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II. TOBACCO:

The movie made apt comparisons of the NFL with the tobacco companies that denied tobacco causes health problems, and only recently was dragged, kicking and screaming, into labeling their products with warnings. The public wanted to believe the tobacco companies’ lies.

The labeling is a sop to a public that apparently is satisfied that “something is being done.”

Tobacco causes disease and death. But smokers won’t demand change. The government won’t demand it. The tobacco companies won’t change. The reason: Money.

The only thing that can stop this disease is the acknowledgment of the facts, by the mothers and fathers of the children who take up smoking, beginning at a young age.
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III. GUNS:

Every year, more people are killed by guns in the hands of the public than are saved by guns in the hands of the public. But the public believes the nonsensical lie that “if unregulated guns are outlawed only outlaws will have unregulated guns.”

It’s nonsense, because the same could be said about every law in existence. (If tax cheating is outlawed, only outlaws will cheat. If speeding is outlawed only outlaws will speed. If stealing is outlawed only outlaws will steal.)

Not to have a law because outlaws will ignore it, is silly at best and tragic at worst.

The National Rifle Association, the well-paid mouthpiece for the gun and ammunition manufacturers, claims guns save lives. The NRA provides “gun safety” education. This “education” is a sop to the public, which apparently is satisfied that “something is being done.” The public wishes to believe the NRA’s lies.

Guns maim and cause death. But, the gun owners won’t demand change. The government won’t demand it. The gun manufacturers companies won’t change. The reason: Money.
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IV. TAXES

Here we are talking about federal taxes, which like football concussions, tobacco, and guns, are unnecessary and are responsible for millions of deaths.

Taxes cause death by limiting the ability of the public to receive the optimum medical care. The notion that Medicare for All is “unaffordable” and that Social Security and Medicare are “unsustainable,” has been responsible for untold misery.

Contrary to what the rich, the media they own, and the university economists they bribe, tell you federal taxes do not support federal spending. When the federal government pays a bill, it creates the dollars, ad hoc, to pay that bill.

Unlike states, counties, cities, businesses, you, and me, the federal government uniquely is Monetarily Sovereign. It is sovereign over the dollar. It never can run short of dollars, and its debts never can be “unsustainable.”

The federal government could eliminate all federal taxes, and continue spending as before, and still the government would not run short of dollars.

The rich tell you otherwise. Since 1940, they’ve been telling you the federal “debt” is a “ticking time bomb.”

Now, 75 years later, the “debt” has continued to grow, while the paid “experts” of the rich continue to cast worries about the growing “debt.” The mythical “time bomb” continues to tick.

At what point will the people realize they’ve heard this false story again and again, and all the invented worries are groundless?

The motive of the rich is 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.

Federal deficit spending benefits the non-rich far more than it benefits the rich. It narrows the Gap. So the rich tell you deficits and federal “debt” are bad for the economy, when the reverse is true.

The public believes the lie, despite obvious clues showing deficit spending to be not just harmless, but beneficial — not just beneficial, but mandatory for a healthy, growing economy.

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What is the commonality among playing football, using tobacco, carrying guns and paying taxes?

1. They all are harmful to the American people

2. The rich say the public needs them, and the rich pay experts to tell the public it needs them

3. The public chooses to ignore the obvious:

–Obviously, repeated head trauma will have a negative effect on your brain. Think about it. Could any honest, intelligent person ever have doubted it?

–Obviously, inhaling smoke is going to affect your lungs and other organs. Think about it. Could any honest, intelligent person ever have doubted it?

–Obviously, more people are killed by guns in the hands of the public than are saved by guns in the hands of the public. Think about it. Could any honest, intelligent person ever have doubted it?

–Obviously, the federal government, which originally created dollars out of thin air, and continues to create dollars, cannot run short of dollars, and just as obviously, adding dollars to the economy, grows the economy, while taking dollars out of the economy shrinks it. Think about it. Could any honest, intelligent person ever have doubted it?

When the public prefers to remain ignorant of the obvious, it suffers for its ignorance.

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 Click here
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 grow the economy, and narrow the income/wealth/power Gap between the rich and you.

THE RECESSION CLOCK

Recessions begin an average of 2 years after the blue line first dips below zero. There was a dip below zero in 2015. Recessions are cured by a rising red line.

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.

Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..

Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between rich and the rest..
•Austerity is the government’s method for widening
the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY

——————————————————————————————————————————————

It’s only right for your healthcare to be rationed. Friday, Jan 29 2016 

LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

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

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If there is one thing the right-wing loves, it’s benefits for the rich: Tax breaks, tax shelters, federal spending on wars, etc.

If there is one thing the right-wing hates, it’s benefits for the middle-class and the poor: Social Security, Medicare, Medicaid, aids to education, poverty aids, etc.

What follows is the uber right-wing Reason.com’s Steve Chapman, and his January 21, 2016 article:

The Fiction Behind Sanders’ Health Plan: You can’t demand more without paying more.

Immediately, you know that the article will be a gigantic misrepresentation, based on the fiction that federal taxes (and federal taxpayers) pay for federal spending.

While state and local government taxes fund state and local spending, the federal government, being Monetarily Sovereign neither needs nor uses tax dollars for spending.

Even if all federal taxes fell to $0, the federal government could continue spending, forever. Even if FICA were eliminated entirely, the federal government could fund “Medicare for All,” with no difficulty, whatsoever.

Denying the difference between Monetary Sovereignty and monetary non-sovereignty is a sure sign either of economic ignorance or of intentional deception.

In short, is Steve Chapman ignorant of economics, or is he a paid liar? You decide.

Bernie Sanders is a democratic socialist who thinks the United States needs a “political revolution.” His plan to replace our health insurance system with “Medicare for All” is in some ways a dramatic break with the status quo.

But it rests on an old and thoroughly conventional formula: Promise voters they will get more and better health care without paying for it.

And so, without further ado, Chapman introduced the favorite, right-wing lie that middle- and low-income people, who want the federal government to pay for their health care, are lazy slackers looking to get “free stuff” from the government, rather than working.

Let me tell you about these “lazy slackers”: Out of Reach found that the average hourly wage needed to rent a $1,006 two-bedroom unit in the United States is $19.35 — or $40,240 per year. That’s more than two and a half times the federal minimum wage, the report noted, and $4 over the estimated average wage of $15.16 that renters earn nationwide.

That means, for instance, that a couple working two minimum wage jobs cannot afford a two-bedroom apartment for themselves and their kids.

How awful for them to want the government to pay for the healthcare they themselves can’t buy.

Sanders’ plan would encompass “the entire continuum of care,” including long-term care and dentistry.

There would be “no more copays, no more deductibles, and no more fighting with insurance companies when they fail to pay for charges.”

In sum: Every person will have everything he or she wants in the way of care and will pay zero at the point of service.

Right. In sum, the poor and middle-classes — the “99%” — would be able to receive nearly the care the 1% easily afford.

Contrast that with Medicare, which doesn’t cover long-term care or dentistry. It also imposes a deductible for hospital stays and a copay on doctor services.

In 2010, the average Medicare recipient spent $4,734 for out-of-pocket costs.

That means millions of people, in the greatest country in the world, must do without long-term care, dentistry, hospital stays and doctor services, because they can’t spare $4,734.

Apparently that is just fine with Chapman and the Republicans.

Such obligations are an inconvenience and a burden to patients, but they serve two useful purposes: reducing what taxpayers have to pay and discouraging care that is only marginally helpful.

This approach serves to contain costs. Sanders’ change would serve to increase them.

Chapman, through ignorance or intent, ignores the fact that federal taxpayers do not pay for federal spending.

According to Chapman and the rest of the right-wing, we don’t want to “inconvenience and burden” the federal government, which has the unlimited ability to pay any bills of any size, and so will not be inconvenienced or burdened at all.

Apparently, it is better to “inconvenience and burden” the people who are struggling to get by.

Why? Because by inconveniencing and burdening the 99%, the Gap between them and the 1% widens, and that is exactly what the rich want. (The Gap is what makes them rich. Without the Gap no one would be rich, and the wider the Gap, the richer they are.)

Then comes the right-wing’s statement that “a lot of private insurers’ costs come from scrutinizing claims.”

It is part of the same notion that our Monetarily Sovereign federal government — the government that 230 years ago first created the dollar out of thin air — now somehow can run short of those same sovereign dollars unless it begs for help from taxpayers:

He argues that his system will be “far cheaper than private insurance” because it will cut down on “overhead, administrative costs, and complexity.” But a lot of private insurers’ costs come from scrutinizing claims to prevent fraud, overtreatment and unnecessary treatment.

Agreeing to pay all charges without review, as Sanders proposes, is an invitation to be fleeced.

First, “a lot of private insurers’ costs come from” the need for profits. Eliminate the profit motive and you not only lower “costs,” but you eliminate the desire to fleece anyone.

Second, Sanders does not propose to “pay all charges without review.” This is 100% bullsham, and Chapman knows it.

Sanders merely recommends covering more people with more services, by extending and broadening our existing Medicare, which itself does not “pay all charges without review.”

Third, there is no financial reason to make health care “far cheaper than private insurance.” The federal government, being Monetarily Sovereign, never will run short of dollars.

In fact, the more dollars the federal government pays for Medicare, the more stimulative dollars are pumped into our economy, helping to grow the economy.

One reason he thinks the single-payer approach will work so well is that countries like Canada and Britain use it and spend far less than we do on health care.

He takes care not to mention one major tool they use to hold down costs: limiting access to procedures that insured Americans take for granted.

“One in four Canadians reported waiting four months or more for elective surgery, similar to the proportion of patients in the United Kingdom (21 percent) but much higher than in Germany (almost 0 percent) and the United States (7 percent),” the Canadian Institute for Health Information found in 2012.

One in five Canadians needing knee or hip replacements has to wait more than six months.

IF (big “IF”) Canadians must wait too long for procedures, this would have nothing to do with single payer (the basis for Medicare). It would have to do with a shortage of doctors and hospitals.

Why would there be a shortage of doctors and hospitals in Canada? The only reason I can imagine is that the Canadian government, subscribing to the right-wing notion of unnecessary money-saving, must not pay doctors and hospitals enough.

In other words, the Canadian government would be doing too much to “scrutinize claims,” just as the right-wing wants.

(Sanders) is hardly unique in pretending we can all get everything we want for a pittance.

George W. Bush did the same thing in pushing a new program of Medicare prescription drug coverage without raising payroll taxes to pay for it.

It cost the government $78 billion in 2014—only 15 percent of which was covered by premiums from seniors.

In Chapman’s right-wing world, it’s far better for seniors to pay the $78 billion than for the Monetarily Sovereign federal government, which can afford anything, to pay it.

Chapman says the federal government can go broke, but seniors can’t.

The (Obama) administration was deceptive in claiming that the economies (of ACA) would be wrung out of private insurers and hospitals, at no inconvenience to patients.

That’s like saying that if you require utilities to take expensive steps to clean up pollution, consumers won’t end up paying more.

Huh? Chapman reveals his right-wing bona-fides. He intimates that utilities should not clean up pollution?? Another Republican meme.

Anyway, Obama was wrong then, and Chapman is wrong now, to pretend that federal finances are like consumer finances.

The federal government can, should, and does add dollars to the economy every day, without taxing. It’s the fundamental purpose of being Monetarily Sovereign. There is zero reason for any government to be Monetarily Sovereign unless it uses that power to add stimulating dollars to the economy.

Now we close with he right-wing’s oft used, but misleading, claim:

The United States has the most expensive healthcare in the world because Americans refuse to take “no” for an answer. Sanders won’t ask them to.

Taking “no for an answer” simply means doing without some health care, and for no reason at all. Is that what you want?

The federal government stands ready with its gigantic, unlimited checkbook, offering to pay for all your healthcare needs and the needs of your children.

But, Chapman and the right-wing 1% want you to say “No, we’d rather be sick.”

While the rich have the ultimate in unlimited healthcare, your healthcare is supposed to be rationed.

It’s only right, right?

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 Click here
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 grow the economy, and narrow the income/wealth/power Gap between the rich and you.
——————————————————————————————————————————————

THE RECESSION CLOCK

Recessions begin an average of 2 years after the blue line first dips below zero. There was a dip below zero in 2015. Recessions are cured by a rising red line.

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.

MONETARY SOVEREIGNTY

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