The secret Michael Bloomberg doesn’t want you to know. Monday, Feb 17 2020 

It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders.

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You might think that a guy who is a businessman, a multi-billionaire, a guy who provides massive financial information to the world, a guy who has been both a Republican and a Democrat — you would think that guy would understand money.

Mike Bloomberg Headshot.jpg

I’m Michael Bloomberg and I (should)  know money.

Sadly, no. Or at least he doesn’t understand federal money.

It’s so disappointing, so disheartening, to read the same-old, same-old ignorance coming from this new guy on the Presidential block.

How Mike Bloomberg’s new retirement plans stack up vs. other Democrats
Dhara Singhand, Ben Werschkul, Yahoo Finance•February 16, 2020
Mike Bloomberg unveiled on Sunday his presidential campaign’s plans for retirement and Social Security, tackling the subject for the first time as a contender for the Democratic nomination.

In laying out his retirement security plan, the former Republican and New York City mayor’s plan echoed most of his fellow Democrats by promising an increase in Social Security payouts.

Yet he also drew distinctions between their proposals and President Donald Trump’s, by introducing a new minimum benefit to ensure that all recipients are at least above the poverty line.

O.K., so far, so good, depending on how big the increase will be and what form it will take.

I’m not a fan of trying to determine whether a person is above the poverty line; it’s too difficult because of the many different forms of “income” (free food, free education, free housing, etc.), but the sentiment is good.

That said, it all falls apart:

With Social Security projected to run out of funds in the coming years, Bloomberg’s proposal also made mention of “consider [ing] options for preserving and strengthening Social Security’s long-term finances, while maintaining and enhancing benefits for the neediest recipients.”

Social Security is an agency of the U.S. federal government. Social Security’s long term finances are identical with the long-term finances of the U.S. government, i.e. infinite.

The U.S. government cannot run short of dollars. Who says so?

Well, Alan Greenspan says so:

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Greenspan

Alan Greenspan: “A government cannot become insolvent with respect to obligations in its own currency.”

Who else says so?

Well, Ben Bernanke says so:

Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”

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Bernanke

Who else says so?

A representative from the St. Louis Federal Reserve Bank says so:

St. Louis Federal Reserve: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e.,unable to pay its bills. In this sense, the government is not dependent on (borrowing) to remain operational.”

So, if it is impossible for the U.S. government to run short of dollars, it makes no sense to say that an agency of the federal government, the Social Security Administration, can run short of dollars. It is just plain wrong.

Yes, it impossible for Social Security, an agency of the government, to run short of dollars, unless that is what the government wantsor wants you to believe.

So, Mr. Bloomberg, please spare us your “considering of options.” There’s nothing to consider. Simply fund Social Security with federal spending. Period.

Get rid of the phony and regressive and useless FICA tax. It pays for nothing.

Get rid of the phony and useless Social Security Trust Fund. It pays for nothing. It’s a mirage, the sole purpose of which is to fool the peons into accepting limitations and reductions in benefits and increases in taxes, while the rich, like you, Mr. Bloomberg, receive endless tax benefits. 

The article continues:

It also lays out a plan to “supplement” lower-income retirement options by creating a public savings option with automatic contributions for all income earners — similar to what South Bend Mayor Pete Buttigieg and Minnesota Senator Amy Klobuchar have also proposed.

“Americans who have worked for decades deserve the opportunity to retire without facing constant financial pressure,” Bloomberg said in a statement.

“As president, I will strengthen Social Security to allow seniors to do just that.”

Sounds good on the surface, except for that “automatic contributions for all income earners” part. Is this one of those “work-’til-you-drop” plans, where you get nothing unless you have a job?

The rich love those kinds of plans because the rich always think of the poor as lazy slackers who will take unfair advantage of handouts from the government. (Of course, the rich sweat from their hourly labors, and receive no breaks from the government. Right?)

However, the candidate was vague about how he’d pay for his ideas, especially with some estimates showing the retirement trust fund could become insolventsometime within the next 20 years.

Bloomberg’s rivals have released much greater detail on how they’d fund big-ticket changes, which include taxes on higher salaries and capital gains.

And there you have it. The false premise that federal taxes are necessary to fund federal spending.

But if federal taxes were necessary to fund federal spending, how did net deficit spending total well over $20 Trillion (with a big “T”) in the past 80 years? That’s $20 Trillion of spending that was done without taxes.

Apparently, Bloomberg is like the rest of the pols, afraid to say the truth, that the U.S. government, being Monetarily Sovereign, neither uses nor needs tax revenue, as it creates new dollars, ad hoc, every time it pays a creditor.

Or, Bloomberg is like the rest of the pols, unwilling to say the truth, because he wants to prevent the poor from coming any closer to the rich — an example of Gap Psychology (the desire of those higher in any social hierarchy to separate themselves from those lower).

I had great hopes for Bloomberg, because much of his thinking is good, and he has the money to kick Trump’s butt.

I just wish, at long last, someone would tell the truth about Monetary Sovereignty, and cut the “How will you pay for it”? nonsense.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell

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THE SOLE PURPOSE OF GOVERNMENT IS TO IMPROVE AND PROTECT THE LIVES OF THE PEOPLE.

The most important problems in economics involve:

  1. Monetary Sovereignty describes money creation and destruction.
  2. Gap Psychology describes the common desire to distance oneself from those “below” in any socio-economic ranking, and to come nearer those “above.” The socio-economic distance is referred to as “The Gap.”

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

Implementation of Monetary Sovereignty and The Ten Steps To Prosperity can grow the economy and narrow the Gaps:

Ten Steps To Prosperity:

1. Eliminate FICA

2. Federally funded Medicare — parts A, B & D, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

The Ten Steps will grow the economy and narrow the income/wealth/power Gap between the rich and the rest.

MONETARY SOVEREIGNTY

The Full Story Of America’s President Sunday, Feb 16 2020 

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How far we have come; how close we are. Saturday, Feb 15 2020 

KING DONALD I

Image result for king trump

I am above the law. I am the law.
I own the Attorney General.
I own the Justice Department.
I own the U.S. Senate and the Majority Leader.
I own the Republican Party.
I own the Supreme Court.
I own the Appellate Courts.
I own the Military.
I own the prisons.
I own the favorable media, and I will destroy the rest.
I will pervert the criminal justice system in any way I wish.
I will pardon all criminals who are loyal to me.
I will continue to lie, cheat, and steal, but I will not be punished.
I will ignore the Constitution.
I will exact revenge against my political enemies.
I will punish whistleblowers who reveal my secrets.
I will punish any who displeases me.
I will enable my political loyalists to break the law, free from punishment.
I will continue to put my friends and family into positions of financial and political power.
I will continue to hire political hacks who do as I say, not what is best for America.
I will make billions of dollars from my position.
I will reverse all judicial decisions that displease me.
I will reverse all Congressional decisions that displease me.
I will fire the Federal Reserve chairman if he doesn’t make me richer.
I will divorce another wife and cheat on the next one.
I alone will send America into war.
I alone will decide who enters America and who must leave.
I will do whatever I want, whenever I want.
There is nothing you can do about it.
King George III was America’s last old king.
I am America’s first new king, King Donald I.
The religions will support me, just as they always support kings.
You will obey me.
Or you will be punished.

Buy stocks. There is no end in sight to America’s economic boom. Thursday, Feb 13 2020 

Buy stocks. If the following Chicago Tribune/ Associated Press article proves to be correct, America’s economic boom will continue for at least another decade.

Here are some excerpts and translations:

Image result for pouring water out of a bucket

This is how the GOP, the Dems, and Reason.com fill a bucket.

US on track for first $1T budget deficit since 2012
By Martin Crutsinger Associated Press

WASHINGTON — The U.S. budget deficit through the first four months of this budget year is up 19% from the same period a year ago, putting the country on track to record its first $1 trillion deficit since 2012.

Translation:  . . . putting the economy on track to receive 1 trillion growth dollars from the government this year.

The Treasury Department said Wednesday in its monthly budget report that the deficit from October through January was $389.2 billion, up $78.9 billion from the same period last year.

Translation: The Treasury Department said Wednesday in its monthly budget report that it sent 389.2 billion growth dollars into the economy from October through January, up $78.9 billion from the same period last year.

The deficit reflected government spending that has grown 10.3% this budget year while revenue was up only 6.1%.

For January, the deficit totaled $32.6 billion, compared to a surplus a year ago of $8.68 billion.

Translation: The deficit reflected government stimulus to the economy has grown 10.3% this budget year while taking dollars out of the economy was up only 6.1%.

For January, 32.6 billion growth dollars were added to the economy, compared to a year ago when $8.68 billion were removed from the economy.

Image result for leeches on the back

Cutting deficits to grow the economy is like applying leeches to cure anemia.

President Donald Trump sent Congress a new budget blueprint Monday that projects the deficit will top $1 trillion this year but then will decline over the next decade.

But the Congressional Budget Office is projecting that the deficit will top $1 trillion this year and remain above $1 trillion over the next decade.

Translation: President Donald Trump sent Congress a new budget blueprint Monday that projects sending more than 1 trillion growth dollars into the economy this year, but then would send less over the next decade.

However, the Congressional Budget Office is projecting that 1 trillion growth dollars will be sent into the economy this year and more than 1 trillion growth dollars will be sent in every year over the next decade.

The deficit for the 2019 budget year, which ended Sept. 30, was $984.4 billion, up 26% from the 2018 imbalance.

Translation: Growth dollars added to the economy for the 2019 budget year, which ended Sept. 30, totaled $984.4 billion, up 26% from the 2018 lesser surplus.

The rising deficits reflect the effect of the $1.5 trillion tax cut Trump pushed through Congress in 2017 and increased spending for military and domestic programs that the president has accepted as part of a budget deal with Democrats.

Translation: The rising economic stimuli reflect the effect of the $1.5 trillion tax cut for the rich Trump pushed through Congress in 2017 and increased spending for military and domestic programs that the president has accepted as part of a budget deal with Democrats.

In his new budget plan for the 2021 fiscal year that starts Oct. 1, Trump is proposing spending $4.8 trillion, but would seek to hold down deficits by cutting domestic programs like food stamps and Medicaid.

In his new budget plan for the 2021 fiscal year that starts Oct. 1, Trump is proposing adding 4.8 trillion growth dollars to the economy, but would seek to punish the poor and the economy, by unnecessarily cutting domestic programs like food stamps and Medicaid.

Trump’s plan projects that if Congress goes along with his spending cuts, which is unlikely, the budget would return to balance in 15 years.

Translation: Trump’s plan projects that if Congress goes along with his spending cuts, which is unlikely, the government will take more than a trillion dollars out of the economy, and destroy those dollars, preventing any hope for economic growth, and assuring a depression that would make the 1929 depression look like a garden party.

Through the first four months of this budget year, government spending has totaled a record $1.57 trillion, up 10.3% from the same period last year.

Revenue also set a record for the first four months of a budget year, increasing by 6.1% to $1.18 trillion.

The government first ran $1 trillion deficits from 2009 through 2012 as revenue fell during the worst recession since the 1930s.

Translation: Through the first four months of this budget year, government growth dollars added to the economy have totaled a record $1.57 trillion, up 10.3% from the same period last year.

Unfortunately, the growth dollars removed from the economy also set a record for the first four months of a budget year, increasing by 6.1% to $1.18 trillion.

The government pumped $1 trillion into the economy annually from 2009 through 2012, which helped the economy recover from the worst recession since the 1930s.

We can end this post by showing you excerpts from a truly ignorant article that appeared in Reason.com:

To Revive the Economy, Cut Federal Spending
Obama and Boehner are both big spenders. That’s the problem.
NICK GILLESPIE AND VERONIQUE DE RUGY, 1.1.2013

The Republican opposition, led by House Speaker John Boehner of Ohio, has signaled that the Republicans could stomach generating as much as $800 billion in new revenue over the next decade.

Such a large difference obscures a more fundamental agreement: Neither side is interested in addressing the central role federal spending plays in creating persistent deficits and, more important, damping economic growth.

The deficit for fiscal 2012, which ended on Sept. 30, came in at about $1.1 trillion, marking the fourth consecutive year that the nation has posted a trillion-dollar-plus spending gap.

It’s fun to look back in time to see what people, who are completely ignorant of Monetary Sovereignty, said.

We’ve done that when we repeatedly published those “The Deficit is a Ticking Time Bomb” articles since 1940. (The bomb still is ticking).

And now we have the Reason.com’s daily serving of abject ignorance. You’ll note that the article makes dire predictions about the economy unless the government stops adding dollars to the economy.

(Thankfully, it didn’t stop; the dollar additions cured the Great Recession, and after the article was published, the economy continued to grow because of more dollar additions.)

Yet even today, if you go to Reason.com, you’ll find those folks have learned nothing. They still publish the same blather about the danger of deficits.

And here’s the real knee-slapper:

The article quotes economists Carmen M. Reinhart, Vincent R. Reinhart, and Kenneth Rogoff who famously were discredited, partly because they didn’t take into account the differences between a Monetarily Sovereign nation and a monetarily non-sovereign nation. And these are “economists.”

They said that periods of “debt overhang” – when accumulated gross debt exceeds 90 percent of a country’s total economic activity for five or more consecutive years—reduce annual economic growth by more than one percentage point for decades.

Oh REALLY? Look at this graph:

United States Gross Federal Debt to GDP

GDP/Federal Debt Ratio

Every year since 2010 (lots more than ten years), the federal debt has exceeded that magic 90% number, and the economy . . . oops . . . well, look for yourself:

United States GDP

GDP growth for the U.S.

Is Reason.com chastened by the facts? No, facts be damned. They have the “We know what we know and don’t bother us with facts” attitude.

And that is how the public is kept ignorant.

And that also is why we will not have a recession in the foreseeable future unless some politician can convince his/her peers that taking money out of an economy is a clever way to grow the economy. (Sort of like spilling water out of a bucket is a clever way to fill the bucket.)

So long as we keep running trillion-dollar deficits, and the deficits keep growing, my advice will be to buy stock.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

THE SOLE PURPOSE OF GOVERNMENT IS TO IMPROVE AND PROTECT THE LIVES OF THE PEOPLE.

The most important problems in economics involve:

  1. Monetary Sovereignty describes money creation and destruction.
  2. Gap Psychology describes the common desire to distance oneself from those “below” in any socio-economic ranking, and to come nearer those “above.” The socio-economic distance is referred to as “The Gap.”

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

Implementation of Monetary Sovereignty and The Ten Steps To Prosperity can grow the economy and narrow the Gaps:

Ten Steps To Prosperity:

1. Eliminate FICA

2. Federally funded Medicare — parts A, B & D, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

The Ten Steps will grow the economy and narrow the income/wealth/power Gap between the rich and the rest.

MONETARY SOVEREIGNTY

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