Has it ever occurred to you . . . ?

Has it ever occurred to you . . .?The Thinker | Musée Rodin

The people who claim the USA isn’t racist are the worst racists?

When one member of a group fails, the bigots will hate the entire group for this failure? If a group succeeds, the bigots will despise it for its success.

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.

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

Hatred and fear are evil twins. It is impossible to hate someone without fearing them.

The brainless are too brainless to understand how little they know. The intelligent are smart enough to understand how little they know.

Dictators always claim that patriotism is obedience to them. Their disciples agree. Fake, hyperpatriots “love America,” but hate the Americans who disagree with them.

Loyalty, like obedience, usually is a one-way street. Divorce and dog leashes are proof.

The more federal budgets are cut and federal taxes increased, the weaker an economy becomes. No economy can tax itself into prosperity, nor grow without money growth. Cutting federal deficits to grow the economy is like applying leeches to cure anemia.

Many people expect the Federal Reserve to control inflation. But inflation is not a financial problem. Inflation is a scarcity problem that only Congress can fix.

It is easier to have sympathy than empathy. Actually, no one has empathy. “I feel your pain” is a lie.

We wish to distance ourselves from those below us on any social scale, while coming closer to those above. This is Gap Psychology.

Austerity is the government’s method for widening the gap between rich and poor.

Everything in economics devolves to motive, and the motive always involves the Gap between the richer and the poorer.

The Gap is what makes the rich, rich. To widen the Gap, the rich can obtain more for themselves, or make sure the poor have less.

Everyone lies. Most of our lies are to ourselves.

No life form in the universe is less knowlegable than a voter.

Until the 99% understand the need for federal deficits, the upper 1% will rule.

To survive long-term, a monetarily non-sovereign entity must have a positive balance of payments.

Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.

Where reality differs from belief, those who question least choose belief.

The more we learn,
the more we begin to see,
if we were tasked with building a universe,
this is the only way it could be.

In politics, people tend to support those who most resemble them. Women tend to support women. Blacks tend to support blacks; Jews tend to support Jews; Evangelicals tend to support Evangelicals; New Yorkers tend to support New Yorkers, Latinos tend to support Latinos; and stupid, immoral, close-minded, bigoted liars tend to support stupid, close-minded, immoral, bigoted liars. Know yourself by whom you follow.

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. 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

Percentages of people who failed to throw their dollars into the IRS bonfire

Those who understand Monetary Sovereignty are familiar with these basics:

  1. The federal government, being Monetarily Sovereign, has the unlimited ability to create its sovereign currency, the U.S. dollar.

    Chapter 4: Costs of Iran's nuclear programme and the potential for renewable energy sources « Naame Shaam – نامه شام
    When we pay federal taxes, this is exactly what we are doing.
  2. Thus, unlike state and local governments, which are monetarily non-sovereign, the federal government cannot unintentionally run short of U.S. dollars.
  3. The federal government pays for all its spending by creating new dollars, ad hoc.
  4. It creates dollars by sending instructions, (“Pay to the order of”) to each creditor’s bank, instructing the bank to increase the balance in the creditor’s checking account.
  5. The instant the bank obeys those instructions, new dollars are created and added to the M1 money-supply measure.
  6. So, even if all federal tax collections ceased, the federal government could continue spending, forever.
  7. In fact, no form of income, whether taxing or borrowing, provides spending dollars to the federal government.
  8. Tax dollars sent to the federal government leave the economy. They leave the M1 money-supply measure and effectively are destroyed upon receipt.
  9. The purpose of federal taxes is to control the economy, by taxing what the government wishes to discourage, and by giving tax breaks to what the government wishes to encourage. That is why the very rich, who own Congress and the President, are given such generous tax breaks that the richest pay little or no taxes at all.

In essence, you might as well throw your tax dollars into a bonfire, for all the good they do to prevent federal government insolvency.

In return for your obeying the law, the Treasury does you the service of throwing your dollars into that federal bonfire, so you don’t have to bother.

The Committee for a Responsible Federal Budget (CRFB), in bemoaning the lack of tax-payment compliance in America, has published the following graph.

Presumably, the graph is meant to make you feel outrage about so many people having refused or neglected to throw their dollars into the IRS bonfire.

PERCENT OF PEOPLE WHO HAVE FAILED TO THROW
THEIR DOLLARS INTO THE FEDERAL BONFIRE

In reality, the outrage you feel should be directed at the politicians and groups like the CRFB.

They are the ones who claim that the federal government either can’t afford to, or must raise taxes to, provide free Medicare for All, Social Security for All, College for All, reduced carbon emissions, improved infrastructure, air, water, and land, narrowed Gap between the rich and the rest, etc.

The U.S. Congress, having unlimited disposable dollars, could and should be doing so much more to improve your life.

Instead, they argue about whether spending by the federal government has exceeded the government’s “means” (It has no “means” to exceed), or whether federal spending is “socialism” (It isn’t), or whether the poor will refuse to work if given financial aid (They won’t refuse if the aid is on top of, rather than instead of salaries).

President Richard Nixon, a Republican, gave us Monetary Sovereignty by eliminating the last gold standard, so it is a special disgrace that the current Republican Party now refuses to use the most valuable asset any nation can have: Unlimited money.

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. 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

 

 

Rick Scott shovels the myth

Senator Rick Scott is a Floridian. He is a Republican. And he is a Trumper.

Official Portrait of Senator Rick Scott (R-FL).jpg
Would this face lie to you?

He sent me a form letter telling me how he is going to improve my life:

(Republican) Senator Rick Scott led his colleagues in introducing the Federal Debt Emergency Control Act to rein in Washington’s out-of-control spending and provide a concrete path forward to tackle the nation’s nearly $30 trillion debt.

“Out-of-control” is a synonym for “Gosh, that’s a lot of money to waste on the poor.”

In fact, the “Out-of-control” spending is controlled by Congress, of which Republican Senator Rick Scott is a part.

This is the same Republican Congress that gave the rich a vast, over-budget tax reduction, without a whimper from Senator Rick Scott.

Suddenly, with a Democratic majority Congress and Presidency, the Republicans have re-discovered federal deficits. And they are “shocked, shocked I tell you.”

“Out of control” also is a synonym for “ticking time bomb,” about which we have written several times. It’s the bomb that for 80+ years, debt haters have been telling you is ready to explode.

Yet, here we are. No explosion. Economic growth. Decades of low inflation.

The Federal Debt Emergency Control Act requires the Office of Management and Budget to declare a “Federal Debt Emergency” in any fiscal year where the federal debt exceeds 100% of that year’s Gross Domestic Product (GDP).

Why the 100% figure? There’s no reason for it other than ignorance. The ratio of federal debt to GDP has absolutely no significance regarding the health of the U.S. economy.

It’s a useless, meaningless ratio that gets fire-breathed with alarm by those who either know nothing about economics, or worse, want you to know nothing about economics.

If (Republican) Senator Rick Scott is right, you would expect the sickest, weakest economies to have the highest Debt/GDP ratios, while the healthiest, weakest economics have the lowest Debt/GDP ratios.

But what do we find? Here are some examples:

Sample Nations: DEBT / GDP Ratios

Based on the above ratios, which nations would you say have the strongest, healthiest economies, and which have the weakest, sickest economies?

Right. The Debt/GDP ratio tells you exactly nothing about the health or strength of a nation’s economy.

But Republican Senator Rick Scott wants to cut federal spending as soon as our ratio hits the arbitrary and meaningless number: 100% (which it already did way back in the 4th qtr of 2012 — blue line).

And by the way, inflation (red line), the current Republican excuse for cutting benefits for the poor, has averaged below the Fed’s 2% target.


This emergency designation would trigger several provisions to help control and reduce the federal debt to levels below 100% of GDP, including:
Terminating any unobligated funding from the American Rescue Plan Act, and any previous stimulus bills, and sending it back to the Treasury General Fund immediately for deficit reduction.

He’s not specific about what should be cut. He just wants to cut “any unobligated funds,” no matter how vital to the economy and the people they may be.

Exactly what is supposed to happen in the Treasury General Fund for deficit reduction? What is the “it” he wants to send back? Which dollars are not to be spent?

The whole thing is financially senseless, but it is a classic right-wing approach.

The American Rescue Plan Act and the previous stimulus bills rescued America from the severe recession that was exacerbated by Donald Trump’s incompetent and deadly COVID denial along with his economically damaging trade duty war against China. Scott is silent about that.

Scott never says.

Why?

Because, being a Republican, he would cut all the spending that benefits the poor and middle classes, while falsely claiming that the rich are “job makers” who should be rewarded even more than they already are.

Requiring all legislation that increases the federal deficit, as determined by the Congressional Budget Office, to carry its own offsets.

This means running a balanced budget, perhaps the least intelligent idea ever to come out of any Congressperson’s mouth because:

A balanced federal budget is absolutely, positively guaranteed to cause a deep recession if we are lucky, or a deep depression if we are not lucky.

If you can find anyone on this planet who can demonstrate how running a balanced federal budget would allow for economic growth and/or prevent a depression, I would love to see the evidence.

Perhaps the same person also can prove that global warming is a Chinese myth, and that Donald Trump actually won the election — two equally nutsy claims coming from the GOP.

If it does not, the legislation shall be considered out of order and will require at least two-thirds of all Senators to vote to increase federal debt before even being able to consider the bill.

Wait! What if two-thirds of all Senators were, by some miracle, to vote to increase the federal debt, would that mean it then becomes OK? Suddenly it would be within the government’s “means”?

And, don’t we already have the ridiculous federal “debt limit,” that not only does the same thing, but is raised every time it’s reached?

And why is the debt limit always raised?

Because, Congress is well aware that limiting federal debt would destroy the U.S. economy.

Fast-tracking any legislation that would reduce the federal deficit by at least 5 percent over ten years.

Where did that 5% number come from? It surely wasn’t derived by any scientific method. Scott apparently thinks it’s a nice number, so he uses it.

It reminds one of dearly departed Herman Cain’s meaningless “9-9-9” tax plan. Just numbers with no real reason.

And where is the math that says reducing the federal deficit would benefit the economy in some way? Non-existent.

Senator Rick Scott said, “America is in a debt crisis. Our nation is barreling toward $30 trillion in debt – an unimaginable $233,000 in debt for every family in America.

It’s not that families owe that debt. The government does. But Scott tries to imply, falsely, that your family will have to pay for that debt.

It’s a crisis caused by decades of wasteful and reckless spending by Washington politicians.

Now, President Biden is continuing this way of governing by pushing for trillions in wasteful spending, raising the U.S. federal debt by 60% to $39 trillion and the debt-to-GDP ratio to 117% in 2030, the highest level ever recorded in American history.

And what has been the result of all this “wasteful and reckless spending? Taxes are down and GDP is up.

But Scott wants to fix that, by raising taxes and/or reducing GDP.

Spending beyond our means has consequences.

The federal government, being Monetarily Sovereign, has no “means.”

We’re already seeing rising inflation, which disproportionately hurts the poorest families, like mine growing up.

The “rising inflation,” which for decades has been below Federal goals, is the result of the pandemic, not the result of federal spending. It was the pandemic, and Trump’s atrocious handling of it, that led to the shortages of goods and services, that resulted in a thoroughly predictable inflation.

Someone, please ask Sen. Scott, “Where was the inflation last year and the year before, and the decades before, when deficit spending was massive?”

And yes, we caught that “I grew up poor” disgusting attempt at ingratiating yourself with the people you are trying to screw.

But hey, as long as you’re talking about your history, let’s get into where your calculations might have come from:

In 1987, after serving in the United States Navy and becoming a law firm partner, Scott co-founded Columbia Hospital Corporation.

Columbia later merged with another corporation to form Columbia/HCA, which eventually became the nation’s largest private for-profit health care company.

Scott was pressured to resign as chief executive of Columbia/HCA in 1997.

During his tenure as chief executive, the company defrauded Medicare, Medicaid and other federal programs.

The Department of Justice ultimately fined the company $1.7 billion in what was at the time the largest health care fraud settlement in U.S. history.

And this fraudster is the guy who suddenly has become so concerned about the federal government’s “means” and its ability to pay its bills.

No wonder this criminal is a Trumper. “Birds of a feather,” as they say. He must have envied Trump University.

I look forward to every fiscally responsible Republican and Democrat working with me to quickly pass the Federal Debt Emergency Control Act.”

Yes, do vote for good old “fiscally responsible” Rick Scott, who can hardly wait to cut benefits to the poor, while driving the economy into a depression, thus allowing his rich backers to buy up property and businesses at discount prices, while paying workers depression-era wages.

And, there are people who actually believe this guy! Strange.

Fortunately, with a currently Democratic Congress and President, this idiotic ploy has no chance to pass, and least not in the near future.

And it wasn’t meant to pass.

There isn’t a new idea in the entire proposal. It’s a rehash of all the discredited nonsense that has been floated by populists for decades.  It was assembled in a half-hour as a political stunt to show how fiscally sound is the do-nothing, historically crooked Senator from Columbia/HCA.

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. 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