How the Rich Use the Big Lie to Cheat You: Chapter IV: Bank Fraud Friday, Feb 12 2016 

LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

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

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

The notorious bank robber, Willie Sutton, was (probably falsely) reported to have answered the question, “Why do you rob banks?” with: “Because that’s where the money is.”

And whether he said it or not (He denied it), the answer is correct. Banks indeed are where the money is, and wherever there is money, there will be fraud. And wherever there is big money, there will be big fraud.

Big money and big fraud go together like a man and woman dancing, with the big money leading and the big fraud closely following.

Not only does big money create big temptation, but big money gives big bribes to crooked politicians and a crooked legal system to look the other way. Examples: President Barack Obama and his Department of Justice (DOJ), who to date, have not prosecuted, let alone convicted, even one CEO of a bank criminal enterprise.

In Obama-world, a shoplifter of $25 may go to jail; the CEO of a major bank criminal enterprise, who has stolen billions of dollars, and personally received hundreds of millions, keeps his job, receives bonus money and otherwise is punished not at all.

Bank criminals have well-bribed friends in the White House.

Bill Black, the author of The Best Way to Rob a Bank is to Own One and an associate professor of economics and law at the nation’s best economics department — The University of Missouri-Kansas City — may be the most informed economist when describing bank fraud.

In addition to his book, he has written many articles on the subject. I recommend you read him whenever you can. To give you just a taste of his writing, here are a few excerpts:

The Inaugural Financial Fraud Lemons of the Week Award Goes to DOJ

This first column in a series we will do on DOJ’s refusal to prosecute the scores of senior bankers that led Morgan Stanley’s criminal enterprise will focus on DOJ’s press release.

Morgan Stanley was one of the largest criminal enterprises in the world and committed tens of thousands of acts of fraud that cost the American people billions of dollars in losses.

DOJ refused to make clear statements about Morgan Stanley’s massive fraud schemes. This column focuses on only four, spectacularly dishonest aspects of DOJ’s press release (regarding Morgan Stanley’s “punishment” of a $3.2 billion fine):

“Today’s settlement holds Morgan Stanley appropriately accountable for misleading investors about the subprime mortgage loans underlying the securities it sold,” said Acting Associate Attorney General Stuart F. Delery.

“The Department of Justice will not tolerate those who seek financial gain through deceptive or unfair means, and we will take appropriately aggressive action against financial institutions that knowingly engage in improper investment practices.”

How can a bank be held “appropriately accountable” for tens of billions of dollars in fraudulent mortgage sales? We can’t imprison a bank or shame it.

The bank is inherently incapable of being held “appropriately accountable” because that is a moral concept and a bank has no soul to damn.

“Those who contributed to the financial crisis of 2008 cannot evade responsibility for their misconduct,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.

“This resolution demonstrates once again that the Financial Institutions Reform, Recovery and Enforcement Act is a powerful weapon for combatting financial fraud and that the department will not hesitate to use it to hold accountable those who violate the law.”

DOJ held no Morgan Stanley official “appropriately accountable” while claiming that its settlement did the opposite.

Delery claims that DOJ “will not tolerate those who seek financial gain through deceptive or unfair means.”

The settlement proves the opposite, for DOJ “tolerated” Morgan Stanley’s senior officers being made wealthy through leading a massive fraud scheme – with zero accountability imposed on those officers.

Delery claims DOJ “will take appropriately aggressive action against financial institutions that knowingly engage” in fraud.

A “financial institution,” cannot “knowingly engage” in fraud except through vicarious liability for the actions of its officers.

Delery is admitting that Morgan Stanley’s officers “knowingly engage[d]” in fraud and became wealthy by doing so, but DOJ took no “action against” those officers, much less “aggressive” prosecutions.

Mizer’s claim that DOJ’s settlement with Morgan Stanley proves that “those who contributed to the financial crisis of 2008 cannot evade responsibility for their misconduct.”

DOJ, once more, refused to prosecute these elite frauds, did not require that they be fired, did not require them to give back their bonuses and other compensation that they received due to fraud, did not sue them, and did not even name them.

Mizer then extended his lie by claiming that “the department will not hesitate to use [the law] to hold accountable those who violate the law.”

Today’s settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group, which has recovered billions of dollars arising from misconduct related to the financial crisis.

The RMBS Working Group is a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis.

We have agreement from DOJ, collectively through its pathetic settlements, that Bernie Sanders’ charge is correct. Agencies of the United States, after investigation, have confirmed at virtually every enormous bank that the business plan was fraud.

Moreover, DOJ admits that the fraud epidemics by the world’s largest banks were leading causes of the financial crisis and the Great Recession.

All of Professor Black’s articles, and his book, say essentially the same things: The major banks are criminal enterprises, perhaps the biggest the world ever has known, making Bernie Madoff look like a piker.

They have stolen billions from the public.

The gangsters, who run these criminal enterprises, reaped billions, but having bribed our political leaders, they received rewards rather than punishment.

And the public neither knows nor cares what has been done to them.

You’ll notice that during the political debates, neither party and no candidate (perhaps with the exception of Bernie Sanders) has made an issue of these crimes. The reason: Both parties and all candidates have been bribed.

Consider the Clintons:

$153 million in Bill and Hillary Clinton speaking fees, documented

Hillary Clinton and her husband, former President Bill Clinton, combined to earn more than $153 million in paid speeches from 2001 until Hillary Clinton launched her presidential campaign last spring, a CNN analysis shows.

In total, the two gave 729 speeches from February 2001 until May, receiving an average payday of $210,795 for each address.

The two also reported at least $7.7 million for at least 39 speeches to big banks, including Goldman Sachs and UBS, with Hillary Clinton, the Democratic 2016 front-runner, collecting at least $1.8 million for at least eight speeches to big banks.

The analysis was made at a time when Hillary Clinton has been under scrutiny for her ties to Wall Street, which has been a major focus of Vermont Sen. Bernie Sanders on the campaign trail.

If you believe the banks gave Hillary $1.8 million just to hear her talk eight times, then I have some costume jewelry I’d like to sell you.

The banksters use money stolen from the public, to bribe the politicians. Do the Democrat or Republican candidates for President of the United States care about your losses? Not that you would notice.

What the politicians do care about is your vote, and they think your vote depends on such issues as gay couples marrying, and Mexican children coming here, and poor mothers receiving food stamps.

Your politicians believe you are oblivious to the billions being stolen from you, and that you are more concerned with cutting the (necessary) federal deficit and the (meaningless) federal debt.

Now, eight years after having caused one of the greatest recessions in American history, the unpunished banksters have learned not to fear the DOJ or the public.</b.

As you read this article, they repeat their crimes, while bribing politicians to weaken any remaining laws that might prevent such criminality.

The Ten Steps to Prosperity, listed at the bottom of every post on this blog, include as #9. “Federal ownership of all banks” Here are some excerpts from the various posts on this subject:

The end of private banking: Why the federal government should own all banks.

Global Economic Intersection:
Dallas Fed: Break Up the TBTF
March 30th, 2012

The Federal Reserve Bank of Dallas and its president Richard Fisher are generally known as conservative, hard money proponents. Often conservative economic thinkers are strong laissez-faire proponents.

That is why the 2011 annual report of the Dallas Fed, released this month, has been such a surprise.

A focal point of the report is very interventionist, calling for direct government action to force the break-up of the nation’s largest banks, the so-called TBTF (Too Big To Fail) institutions.

The focus of the report is an essay by Harvey Rosenblum, Executive Vice President and Director of Research. Key points by Rosenblum include:

[Dodd-Frank] may not prevent the biggest financial institutions from taking excessive risk or growing ever bigger.

TBTF institutions were at the center of the financial crisis and the sluggish recovery that followed. If allowed to remain unchecked, these entities will continue posing a clear and present danger to the U.S. economy.

Here, the FRB Dallas attributes bank problems to bank size. But even dividing the monstrous banks into mere big banks is unlikely to solve the basic problem: Greed, the profit motive and the access to punishment-free stealing.

TBTF undermines equal treatment, reinforcing the perception of a system tilted in favor of the rich and powerful.

… virtually nobody has been punished or held accountable for their roles in the financial crisis.

… zero interest rates are taxing savers to pay for the recapitalization of the TBTF banks whose dire problems brought about the calamity that created the original need for the zero interest rate policy.

The final paragraph makes an interesting point. With zero interest rates, savers receive nothing so virtually are taxed.

But the more important point is that privately held banks control vast sums of money, and the profit motive provides vast temptations to steal.

Federal bank ownership would all but eliminate this problem. (I’ve not heard of the Federal Reserve Banking system, which also controls vast sums of money, engaging in criminal practices.)

While federal employees are fundamentally no more honest than private employees, the opportunities and desire for theft decrease markedly with a federally owned bank that has little-to-no profit motive.

Some people believe the banking problem can be solved with effective and strictly enforced laws and supervision. That may partially be true, but the ultimate in effective and strictly enforced laws and supervision is federal ownership and management.

Some people believe banks should be public utilities. I suggest that solves few problems. “Public” utilities actually are private enterprises. Making banks public utilities merely would move banks from their current set of government regulators to a different set of government regulators.

There is no public purpose being served by private banking. None. All banks should be federally owned.

For more thorough discussions, I recommend you read the various posts listed http://mythfighter.com/, with the word “Bank” in their title.

Rodger Malcolm Mitchell
Monetary Sovereignty

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

PLEASE HELP US GET THE WORD OUT
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. A common phenomenon is for the line briefly to dip below zero, then rise above zero, before falling dramatically below zero. There was a brief dip below zero in 2015, followed by another dip – the familiar pre-recession pattern.
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 III: Motivation Wednesday, Feb 10 2016 

LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

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

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

Economics is a social science, desperately trying to be a physical or natural science.

Economists attempt to prove their science chops by using mathematics. Open any economics text and you will see it filled with false mathematic equations. We say “false,” because equations imply a level of precision seldom found in the social sciences.

Consider Supply and Demand, the very bedrock of economics theory. You’ve seen the basic formula: Demand / Supply = Price (or Value).

Mathematically, it indicates that if you know two of the variables, you can determine the third variable.

Utter nonsense, and we all know it.

While Supply sometimes can (but often, not) be physical, and measured directly, Demand most often is non-physical, psychological and a derivative of the formula. Two, completely different entities in the same formula.

And then there is the third variable, Price or Value. Often they are quite different. While Price can be specific, Value, like beauty, can be in the eyes of the beholder.

At best — at the very best — the formula can give you a hint about what might be a direction. And yet, this is one of the most fundamental formulas in all of economics.

One unpredictable quantity is what makes the social sciences social: People.

Economics essentially is about money, and everything in economics devolves to motive.

What is your motive? Why do you want money?

Well actually, you don’t want money; you want what you believe it can buy: Goods and services, yes, and far more: Power, pride, admiration, security, the feelings of accomplishment.

Other than mere ignorance, what then is the motivation for telling the Big Lie?

We have discussed this in earlier posts, and we’ll borrow freely from those posts while compiling this chapter.

LEADERS & FOLLOWERS
We humans, being social animals, form societies. Most societies have Leaders and Followers. In human societies, the role of Leaders is protect, educate and guide us, so they are given special powers and privileges.

Evolution has taught Followers they benefit when their Leaders are strong, wise effective and possibly care about the well-being of Followers. So Followers are motivated to believe their Leaders have those traits.

We root for teams, often home-town teams or teams having other features with which we identifyh. Generally, we gain nothing from their victories and lose nothing from their defeats, and they care little about us. Yet we passionately care what happens to them. They are our Leaders. Their victories and losses are ours.

This makes evolutionary sense. Social animals cannot survive alone. We need the pack. When any member of the pack, especially the Leader, is attacked, our own safety is compromised, unless the attacker can be defeated.

Followers are motivated to close the physical and/or psychological distance between them and their Leaders.

Followers feel more comfortable when they figuratively can “touch” their leaders.

Just as Followers need Leaders, Leaders need Followers. Leaders too, do not survive alone.

Evolution has taught Leaders to strive to widen the psychological distance between them and their Followers, lest the Followers disrespect the Leader’s superiority, or even challenge the Leader for power. To be a Leader, one must have Followers who respect and agree to the Leader’s leadership.

To establish their superiority, Leaders create protocols. In Japan, the Follower bows lowest, while the Leader may barely nod. Popes and kings wear crowns and special robes. They live in castles, and they demand special forms of address, all to separate themselves from their Followers.

Leaders address Followers by first names, while Followers respond with “Mr.” or “Sir” or “Dr.” or “Senator” or “Excellency.” Thus, superiority is maintained.

American leaders may be rich, famous and/or have a powerful position in society. Your boss is a Leader and you are a Follower, except when you are a Leader and your assistant is a Follower.

You may not have to think about the protocols that separate you from your boss and separate your assistant from you. Followers follow protocols to strengthen the ties, and to gain favor with (i.e. come closer to), their Leaders. Followers obey commands and demonstrate appreciation for their Leaders. (No one ever was fired for giving the boss a gift or for laughing at the boss’s jokes.)

Leaders follow protocols to strengthen the fealty of their Followers (i.e. giving small gifts called “social spending”), while widening the psychological distance between them and their Followers.

We see a conflict of Leaders widening the psychological distance from Followers, while maintaining them closely enough for them to act as servants. And we see the Followers trying to close the psychological distance, while maintaining subserviance to please the Leaders.

It is a conflict marked by Followers’ envy and needs vs. Leaders’ contempt and needs. To them all, rank is a zero sum game. Others must be pushed down, for them to rise up.

BULLYING
We learn about bullying at an early age. It is a natural, human process whereby some people attempt to assert themselves as Leaders using the common, dual, distance-widening process: Lift themselves while depressing others.

Either works to provide the needed margin. Those who are not confident in the uplifting ability of their own personal qualities, may especially be tempted to resort to bullying.

Bigotry against race, religion, national background or social class is a form of bullying. By separating “us” from “them,” it makes us “better”.

When Donald Trump stigmatizes immigrants, Mexicans and Muslims, he appeals to the human desire for self-esteem relative to others.

GENERALISTS AND SPECIALISTS
Bears, for instance, are not social animals. The male bear roams alone. He is a generalist. He takes as his sole responsibility, finding his food and shelter, his safety and survival. He must be proficient in every aspect of his life.

By contrast, we humans are specialists. Some of us grow food and some distribute it, some cook it and some serve it.

Each of us has come to accept that other humans have specific knowledge we don’t have. Being neither a farmer, nor a distributor, nor a cook nor a waiter, I accept there are food-related experts who can do what I can’t. If I were a bear, I’d starve.

None of us is a Leader in all things. The wealthy man, who finds himself in legal difficulties, may regard his attorney as his Leader in legal matters, and be most anxious to have the attorney nearby and to follow the attorney’s advice — but not have the attorney as a social friend.

Exclusion from social circles is a way to uplift some by casting down others.

YOUR FRIENDS AND NEIGHBORS
Typically, the majority of your friends and neighbors are in financial circumstances similar to yours.

You probably live in a neighborhood matching your wealth. Poor people may be geographically restricted by finances. But even rich people, who can live anywhere, prefer to live among other rich people and associate with other rich people.

This is no accident. It is a matter of comfort. The rich feel uncomfortable when a poor person comes close, except in the role of servant. Even then, protocols are followed to maintain or widen the Gap between them.

THE RICH AND THE POLITICIANS
America’s political Leaders are first, the rich, and then the politicians, who are controlled by the rich (via campaign contributions and promises of lucrative employment, later.)

Both have similar desires: The rich want an underclass, tame enough to accept hard work for moderate-to-minimal reward, and not to demand more power or proximity.

The politicians, servants of the rich, want an underclass, tame enough to accept lies about the need for minimal reward, and not to demand more power or proximity.

Over time, the rich have developed worldwide, the BIG LIE – the ridiculous-on-the-face-of-it lie that a sovereign nation can run short of its own sovereign currency.

This is the lie that keeps the underclasses in chains.

MONETARY SOVEREIGNTY
Even a few seconds of thought should be sufficient to make one realize, a Monetarily Sovereign nation, which invented the laws that created its currency, always has the power to create more of that currency.

The federal government does it, daily.

Why then do Americans believe President Obama when he lies that “America must live within its means”?

Our nation has no “means,” if “means” is defined as the ability to pay bills.

The U.S. government pays its bills by creating dollars, ad hoc. This is the primary method by which the federal government creates dollars.

Why do Americans believe Congressman Boehner when he lies that, “America is broke”?

It functionally is impossible for America ever to be “broke.” Even were the federal “debt” to be 100 times its current level, the federal government could continue paying all its bills as it always has.

(Actually, the federal “debt” today is almost 50 times what it was in 1970, just 45 years ago, and the federal government continues to pay its bills, with no difficulty whatsoever.)

We are genetically disposed to rely on our Leaders, and part of that reliance is the tendency to accept what they tell us.

Only a few more seconds of thought should be sufficient to show how a sovereign nation can prevent or create inflation by giving its sovereign currency any exchange value it chooses.

Many nations arbitrarily have changed the exchange value of their sovereign currency, more often via devaluation (to increase exports), but occasionally through revaluation.

Why then do Americans believe Fed Chairman Bernanke when he pretends inflation is something that could happen beyond America’s control, and that he heroically is working to control it?

The reason is simple: Our Leaders have brainwashed us into believing only their strong hands separate us from chaos, despite the clear facts that it is our Leaders who, consciously or not, create chaos, in distance-widening efforts.

One is reminded of young girls who stay enslaved by their pimps, because in their innocence, they believe their pimps protect them from a cruel world.

It’s what their pimps tell them. It’s what our pimps tell us.

ANTI-ABORTION
Consider anti-abortion laws, which never seem quite strict enough for some politicians. These actually are distance-widening laws, but with a moral veneer.

It is a way that certain groups exert control over women by claiming God as their moral ally. “I am good; you are bad.” (“You tricked Adam into eating the apple.”)

The rich and powerful pay no attention to such laws. They buy abortions at will. But the poor are trapped, by such laws, into giving birth to unaffordable, unwanted, future uneducated criminals, trapped by the rich in an endless cycle of poverty and powerlessness.

Of what value to humankind is forcing poor women to deliver such children into this world? One can debate about when a zygote becomes a sentient human being, but that debate is a excuse for an underlying motive: To create a larger, more compliant underclass.

Pro-”life” is the cover story into which a great many innocent, well-meaning people have bought. The unfortunate poor, chained to unwanted children, will work hard and cheaply (raising and empowering the rich).

And they will need government support for survival (raising and empowering the politicians).

What better way to enslave the poor than to force unaffordable burdens on them, then to be their only means of survival, so they must beg the rich and the politicians for help.

It’s perfect.

BUYING THE STAIRWAY TO HEAVEN
Humans have been taught to reward those in power, so to raise our status by narrowing the distance above us.

The ultimate power is God, so “He” universally is ewarded via prayer and valuable contributions to a church.

The motive of the rich, for accepting rewards, adoration from contemporaries and envy from those below.

The irony of poor people donating to a wealthy church is: The Leaders gain power, while the poor are told they must continue to ingratiate themselves with the all-powerful God, a God whose needs are infinite.

The poor never may stop giving.

The Leaders tell the poor that support of the religion is the sole path to heaven. The poor are impoverished further, and the Leaders, being the intermediaries between God and the poor, gain power.

In many religions, the Leaders wear costumes and create customs, to widen the distance between themselves and their Followers. The Leaders write and lead the prayers the Followers are compelled to read and recite, repeatedly.

Repetition implants the “truth.”. It is a classic brainwashing technique.

As always, the underclass attempts to close the distance from power, while power wishes to widen the distance between it and the underclass.

To Leaders, the distance is of foremost importance.

THE QUESTION
When anyone in power – any rich person, any business superior, any politician, and cleric – speaks about money or economics in general, the first question you should ask is, “Why?
What is the motivation? How will this widen the distance between him and those with less power?”

“Rich” and “powerful” are not absolutes. They are comparative term. For someone to be rich, someone else must be poor.

If you own $1000, you are not rich if everyone else has $2000. But if you own $1000, you are rich if everyone else owns $10.

Similarly, you are powerful only if there are those having less power.

Power corrupts, and the corrupted tell lies to extend their corruption.

When any President, any Congressperson, any cleric, any person more powerful than you tells lies, they lie for the same reason: To maintain or widen the distance between them and you.

THE BASIS FOR ECONOMICS
Money is not the real goal of the rich, nor even of the middle class. The real goal is to widen the Gap.

No matter where in the wealth rankings people find themselves, their natural desire is to widen the Gap from those having less, and to narrow the Gap with those having more.

The rich, however, have far more power to widen the Gap, which is why the GINI ratio continues to rise.

President Obama tells lies to create and widen the gap. He wants the best Presidential Library. He wants the best legacy. He wants history to separate him from other Presidents. He wants to hobnob in the homes of the rich and famous. He wants his family to have the same.

President Obama will not come to stay at your house, but he very well may stay Bill Gates’s or Queen Elizabeth’s castle. What is his motivation?

Why would he prefer to spend time with Bill and the Queen than with you? Because he doesn’t want to be near you. He wants to be near them. He wants to increase the gap below him and narrow any Gap that may exist above him.

Meanwhile, you too would like to visit Bill and the Queen as a gap narrowing measure, and like the President you don’t want poor people coming to your house.

You too want to widen the gap below you and narrow the Gap above you.

This is the psychological basis for all economics: Motivation and the gap.

It is the reason for the Big Lie, and also is the primary reason so many of your friends are happy to believe the Big Lie.

It accommodates their own desires for growth.

Rodger Malcolm Mitchell
Monetary Sovereignty

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

PLEASE HELP US GET THE WORD OUT
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. A common phenomenon is for the line briefly to dip below zero, then rise above zero, before falling dramatically below zero. There was a brief dip below zero in 2015, followed by another dip – the familiar pre-recession pattern.
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

From “ticking time bomb” to “looming collapse.” Wednesday, Feb 10 2016 

LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

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

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

Are you still here? I am, though one wouldn’t know it by the endless, hysterical headlines regarding the federal budget.

Just by way of reminder:

Back in 1940, the federal budget was a “ticking time-bomb which can eventually destroy the American system,” said Robert M. Hanes, president of the American Bankers Association.

By 1960: the debt was “threatening the country’s fiscal future,” said Secretary of Commerce, Frederick H. Mueller.

By 1983: “The debt “probably will explode in the third quarter of 1984,” said Fred Napolitano, former president of the National Association of Home Builders.

In 1984: AFL-CIO President Lane Kirkland said. “It’s a time bomb ticking away.”

In 1985: “The federal deficit is ‘a ticking time bomb, and it’s about to blow up,’ U.S. Sen. Mitch McConnell.

Later in 1985: Los Angeles Times: “We labeled the deficit a ‘ticking time bomb’ that threatens to permanently undermine the strength and vitality of the American economy.”

In 1987: Richmond Times – Dispatch – Richmond, VA: “100TH CONGRESS FACING U.S. DEFICIT ‘TIME BOMB'”

Later in 1987: The Dallas Morning News: “A fiscal time bomb is slowly ticking that, if not defused, could explode into a financial crisis within the next few years for the federal government.”

In 1989: FORTUNE Magazine: “A TIME BOMB FOR U.S. TAXPAYERS”

In 1992: The Pantagraph – Bloomington, Illinois: “I have seen where politicians in Washington have expressed little or no concern about this ticking time bomb they have helped to create, that being the enormous federal budget deficit, approaching $4 trillion.”

Later in 1992: Ross Perot: “Our great nation is sitting right on top of a ticking time bomb. We have a national debt of $4 trillion.”

In 1995: Kansas City Star: “Concerned citizens. . . regard the national debt as a ticking time bomb poised to explode with devastating consequences at some future date.”

In 2003: Porter Stansberry, for the Daily Reckoning: “Generation debt is a ticking time bomb . . . with about ten years left on the clock.”

In 2004: Bradenton Herald: “A NATION AT RISK: TWIN DEFICIT A TICKING TIME BOMB”

In 2005: Providence Journal: “Some lawmakers see the Medicare drug benefit for what it is: a ticking time bomb.”

In 2006: NewsMax.com, “We have to worry about the deficit . . . when we combine it with the trade deficit we have a real ticking time bomb in our economy,” said Mrs. Clinton.

In 2007: USA Today: “Like a ticking time bomb, the national debt is an explosion waiting to happen.”

In 2010: Reason Alert: “. . . the time bomb that’s ticking under the federal budget like a Guy Fawkes’ powder keg.”

In 2011: Washington Post, Lori Montgomery: ” . . . defuse the biggest budgetary time bombs that are set to explode.”

In 2014: CBN News: “The United States of Debt: A Ticking Time Bomb”

After seventy-five years, that ole’ federal debt still is ticking. Meanwhile, it also has been “unsustainable,” “insane,” and “irresponsible.”

I mention all this again, because today, 2/10/16, the Daily Bell added a new fright wig to the wax devil: “Obama’s $4.1 Trillion Budget Is Latest Sign of America’s Looming Collapse”

Well, the time bomb still is ticking, you and I and America still are here, and we still are sustaining and the collapse still is looming. The apocalypse has not arrived, except for the occasional rescession exacerbated by deficit reduction.

To paraphrase something Albert Einstein supposedly said, “Insanity is saying the same thing over and over again and expecting different results.”

Rodger Malcolm Mitchell
Monetary Sovereignty

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

PLEASE HELP US GET THE WORD OUT
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

Save us from our friends: “Social Security Works.org” edition Monday, Feb 8 2016 

LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

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

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

There exists an organization called SOCIAL SECURITY WORKS. They oppose cuts to Social Security. They are our friends.

Heaven help us.

Here are direct quotes from their website:

Social Security belongs to the workers and their families who have worked hard, paid taxes in, and earned its benefits.

Not really. The taxes workers paid did nothing to earn SS benefits. Federal taxes do not fund federal spending. Our Monetarily Sovereign government creates dollars, ad hoc, when it pays bills.

The payment of Social Security benefits creates dollars; the payment of FICA destroys dollars. We could have either one without the other.

Social Security did not cause the federal deficit, and its benefits should not be cut to reduce the deficit.

This depends on how the accounting is viewed. Under some accounting, Social Security and Medicare are viewed separately from other budgeting. But considered as a whole, federal deficits merely are the differences between total tax collections and total spending.

In that view, the Social Security program has reduced the deficit, but is projected to increase the future deficit.

Left unsaid is the fact that federal deficits are economically stimulative and are necessary for a growing economy. It’s federal surpluses that are economically depressive.

The federal government found the money to bail out Wall Street; it must find the money to pay what it owes to Social Security.

The federal government pays all its debts by creating dollars. It doesn’t need to “find the money.” It never has defaulted. So IF it “owed” Social Security anything, it would pay. But any “owing” merely is accounting gimmickry.

Today’s and tomorrow’s beneficiaries – children, people with disabilities, widows, widowers, and retired workers – deserve no less.

In this, Social Security’s 75th Anniversary year, we are united in support of the following principles:

Social Security has a surplus of $2.6 trillion, which it has loaned to the federal government.

To date, the people, in paying FICA, have paid the federal government more than the government has paid to the people. This has subtracted dollars from the economy and so, has been recessive.

The notion of the right pocket “lending” to the left pocket is phony accounting. The federal government, being Monetarily Sovereign, does not borrow dollars. It does not need to. It creates dollars at will.. So called “borrowing” is nothing more than deposits in T-security accounts at the Federal Reserve Bank.

Social Security did not cause the federal deficit. Its benefits should not be cut to reduce the deficit.

Already discussed.

Social Security, which has stood the test of time, should not be privatized in whole or in part.

Not sure what the “test of time” refers to, but SS should not be privatized. Privatization would destroy the fundamental purpose of Social Security: Safe, reliable benefits.

The rich want to privatize Social Security so Wall Street can profit from your money, thereby guaranteeing more for the rich and less for the rest.

Social Security is insurance and should not be means-tested. Because workers pay for it, they should receive it regardless of their income or savings.

Workers don’t pay for it, but that’s not the reason SS shouldn’t be means tested. Means testing opens the door to complications and unfairness similar to the means testing complications and unfairness inherent in the U.S. tax code. Inevitably, there would be exceptions based on changing definitions of “means.”

Social Security is fully funded for more than 25 years; thereafter it has sufficient funds to meet 75 percent of promised benefits. To reassure Americans that Social Security will be there for them, Congress should act in the coming few years outside the context of deficit reduction to close this funding gap by requiring those who are most able to afford it to pay somewhat more.

The above was based on the false premise that FICA funds Social Security. To reassure Americans that Social Security will be there for them, Congress should tell the truth about Monetary Sovereignty, and the government’s unlimited ability to fund Social Security. Collecting FICA does not change that unlimited ability.

Social Security’s retirement age, already scheduled to increase from 65 to 67, should not be raised further. That would be a benefits cut that places the greatest hardship on older Americans who are in physically demanding jobs, or are otherwise unable to find or keep employment.

Social Security Works should not be satisfied to ask that there be no increases in the retirement age. They should ask that the retirement age be reduced.

Social Security, whose average benefit is $13,000 in 2010, provides vital protection against the loss of wages as the result of disability, death, or old age. Those benefits should not be reduced, including by changes to the cost of living adjustment or the benefits formula.

Social Security’s benefits should be increased for those who are most disadvantaged. The benefits, which are very important to virtually all workers and their families, are particularly crucial to those who are disadvantaged.

The benefits should be increased for everyone. For the same reasons “Medicare for All” is a worthwhile goal, so is “Social Security for All.”

Both provide the same function: Putting dollars into the hands of the populace.

Social Security Works has their heart in the right place, but not their head. Because they do not understand Monetary Sovereignty, their arguments easily can be countered by the question, “Where will the money come from”?

It’s a question that relies on a false premise, but unless SSW understands that, they always will be reduced to begging on the basis of morality while being defeated on the basis of affordability.

On balance, the Social Security Works dissemination of the false, financial narrative does more harm than good.

Save us from our friends.

Rodger Malcolm Mitchell
Monetary Sovereignty

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

PLEASE HELP US GET THE WORD OUT
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

Next Page »

Follow

Get every new post delivered to your Inbox.

Join 704 other followers