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●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
●Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●Austerity is the government’s method for widening the gap between rich and poor.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Everything in economics devolves to motive, and the motive is the Gap.
The Ebenezer Scrooge Party of guns, God and money is at it again. This time, the Tea/Republican Party wants trying to take benefits from the disabled.
But it’s only part of the plan for you, which I will describe at the end of this post. First, let’s list a few targets for Scrooge Party’s malice:
–The poor and middle income
–Blacks, browns, yellows, reds
In short, aside from guns, God and money, the Scrooge party sows hatred for pretty much everything. And now we can add the disabled to the list of shame:
Conservatives have long searched for an effective message against Social Security.
Remember that this is the party that wanted to enrich Wall Street and impoverish the retired, by forcing Social Security to invest in private securities.
Now, they seem to have found a new one to try as they set up a fight over the 80-year-old program in the coming Congress: The disabled are robbing the retired.
Social Security advocates describe it almost invariably as the “divide-and-conquer” strategy: Pit the program’s two funds — the retirement and disability programs — against each other.
The disability fund won’t be able to pay its full benefits starting in late 2016, and House Republicans passed a rule earlier this month stating that they won’t allow a transfer of tax revenue from the retirement fund to cover the shortfall, as has been done multiple times on a bipartisan basis, most recently in 1994, unless Social Security’s overall solvency is improved.
Remember also that the entire “Social Security solvency” concept is phony. The U.S. government uniquely is Monetarily Sovereign. It never can run short of its own sovereign currency, the dollar.
Thus, no federal agency can be insolvent unless Congress and the President wish it. If all federal tax collections fell to $0 today, the federal government could continue to pay all its bills, forever.
There is no “transfer of tax revenue,” and never has been. Tax revenue ceases to exist once it is received by the Treasury. There is no SS insolvency, and never has been. The past reductions in SS benefits were unnecessary.
Republicans intend to use the need for reallocation as leverage to force a debate about the disability program — and perhaps, some conservatives hope and Democrats warn, Social Security as a whole.
See how the false “need for reallocation” is accepted as a given. This moves the argument to: “How to reallocate,” rather than, “Why does a Monetarily Sovereign government need reallocation?”
It’s like ocean sailors arguing about the best way to ration salt water.
“Social Security retirement funds have been raided far too many times for far too many years,” Rep. Tom Reed (R-NY), who co-sponsored the House rule, said in a statement.
“My intention by doing this is to force us to look for a long term solution for SSDI rather than raiding Social Security to bail out a failing federal program.
Retired taxpayers who have paid into the system for years deserve no less.”
How many cynical lies can one paragraph hold? Let us count them.
1. Social Security retirement funds are an accounting fiction; they do not exist before they are paid. If you receive benefits, the Treasury sends instructions (not dollars) to your bank, telling your bank to increase the balance in your checking account. At the moment your bank follows those instructions, dollars are created — not before. The dollars did not exist before your checking account was increased.
2. Non-existent funds cannot be “raided.” Even if FICA were eliminated (which it should be), the Treasury could continue paying benefits ad hoc — even double or triple benefits — forever.
3. The “long-term solution for SSDI” does not require cutting benefits, as Reed wishes, but rather the recognition that the United States federal government has the unlimited ability to pay any dollar-denominated debt.
4. No federal program ever “raids” or is “bailed out” by another federal program. Congress and the President merely decide how much each program will spend. Period. The Treasury cannot run short of dollars. If the White House (a federal agency) runs short of money, it doesn’t “raid” the Supreme Court (another federal agency) for dollars. Congress simply makes the allocation.
5. Retired taxpayers unnecessarily have “paid into the system” based on the Big Lie that in some mysterious way, the federal government, which created the dollar out of thin air, somehow can run out of dollars.
6. “. . . deserve no less.” What retired taxpayers deserve is honesty and morality. Pitting old people against disabled people is the most rotten, lowest, filthiest gambit imaginable. One would hope even the Scrooge Party would be repulsed.
It’s easy to demonize the DI program,” Nancy Altman, co-director of Social Security Works, told TPM recently.
She referenced the conservative attempts in the ’80s and ’90s to push for changes to Social Security by playing the young and still working against the old and retired. But Republicans at the time quickly learned that the elderly are difficult to attack.
It’s simple math: 48 million people receive retirement benefits versus 11 million receiving disability. People are less likely to balk if the disability fund is the hostage being taken.
THE PLAN FOR YOU:
It is the old “divide-and-conquer” game. Create hatreds by:
–Playing the middle class against the poor by talking about “food stamp mamas,” and claiming the poor are cheating the system.
–Playing the young against the old, by claiming the old are rich, lazy takers, being supported by the hard-working young.
–Playing the old against the disabled, by claiming the disabled are cheating the system and taking money from the old.
–Playing the workers against the immigrants, by claiming the immigrants are criminals who are cheating the system and “taking your jobs.
–Playing the whites against the blacks, by claiming the blacks are criminals, and a danger to the white community.
Who plays this game? The rich. Being a tiny minority (1%?), the rich need to make the poor and middle classes fight among themselves. That is the plan for you; that is how the 1% controls the 99%.
See the pattern? Someone always is accused of criminality and of taking your money, so you will have reason to hate them. Then you will forget it is the rich who really are cheating the system and taking money from you.
The rich, repeatedly try to demonize some smaller groups, so the majority will fight that group, and do the rich’s dirty work.
It’s rotten. It’s disgusting. It’s the lowest form of politics. It worked for Hitler. It worked for Stalin. It worked for Mao. It’s the plan every despot has used to control a populace.
If you fall for it, your punishment will be of your own making, for one day, you will find yourself in the minority being demonized.
Meanwhile, make sure you or any of your loved ones don’t have an accident and become disabled.
Rodger Malcolm Mitchell
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually. (Refer to this.)
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.
THE RECESSION CLOCK
Vertical gray bars mark recessions.
As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.