The Republican Balanced Budget Amendment Wednesday, Jul 27 2016 

If you enjoy economic fiction and a restatement of The Big Lie, there may be no better place to begin than the Republican 2016 platform.

On page 23, you will find the following:

Balancing the Budget

The federal fiscal burden threatens the security, liberty, and independence of our nation.

The current Administration’s refusal to work with Republicans took our national debt from $10 trillion to nearly $19 trillion today. Left unchecked, it will hit $30 trillion by 2026.

The term “fiscal burden” is a lie. The federal government, being Monetarily Sovereign, can pay any bill of any size at any time. It never can run short of its sovereign dollars to pay its financial obligations. The notion of “burden” simply does not apply.

Even more, the so-called “national debt” is not really a debt as you may understand the term. The misnamed national “debt” is nothing more than the total of deposits in T-security accounts at the Federal Reserve Bank.

In short, the so-called “debt” is bank account deposits. It entirely could be paid off tomorrow, simply by transferring the dollars that exist in those accounts to the checking accounts of T-security holders. No new dollars and no taxes needed.

Thus, the “debt” poses no “burden” on the government and no “threat to security, liberty, and independence of our nation.”

At the same time, the Administration’s policies systematically crippled economic growth and job creation, driving up government costs and driving down revenues.

Oh, the irony. Deficit spending is what brought the nation out of the worst recession in our history. In fact, federal deficit spending is what has cured every recession.

monetary sovereignty

The blue line is the relative change in federal debt. The vertical bars are recessions.

Declines in the blue line have led to recessions, and increases have cured recessions. The reason: A growing economy, by definition, requires a growing supply of money, and federal deficit spending increases the money supply.

When Congressional Republicans tried to reverse course, the Administration manufactured fiscal crises — phony government shutdowns — to demand excessive spending.

The ironies simply don’t end. It was Republican Ted Cruz who threatened to shut down the government unless federal deficit spending (the one factor that grows the economy) was reduced.

The Administration’s demands have focused on significantly expanding government spending and benefits for its preferred groups, paid for through loans that our children and grandchildren will have to pay. This is the path to bankrupting the next generation.

“It’s preferred groups” are the poor, the middle-classes and the children. The “Administration’s demands” included money for health care, education, and retirement.

Our children and grandchildren do not pay for federal spending. As our readers know, The Big Lie in economics can be stated in just five words: “Federal taxes fund federal spending.”

While state and local taxes do fund state and local spending, the federal government, being uniquely Monetarily Sovereign, creates dollars ad hoc, by paying its bills.

That is the fundamental difference between federal financing and state/local government financing. Even if all federal tax collections fell to $0, the government could continue spending, forever.

The Republican path to fiscal sanity and economic expansion begins with a constitutional requirement for a federal balanced budget.

We will fight for Congress to adopt, and for the states to ratify, a Balanced Budget Amendment which imposes a cap limiting spending to the appropriate historical average percentage of our nation’s gross domestic product while requiring a super-majority for any tax increase, with exceptions only for war or legitimate emergencies.

Only a constitutional safeguard such as this can prevent deficits from mounting to government default.

Through wars, recessions, and depressions — through massive increases in federal deficits and federal “debt” — the U.S. government never has defaulted, and never will. It has the unlimited ability to create the dollars to pay its bills.

While the federal deficits and debt pose no threat whatsoever to the government, a reduction in federal deficit spending would destroy the American economy.

Taxes take dollars from your pocket and therefore, are recessive. Reduced federal spending also takes dollars from your pocket and also is recessive.

Money is the lifeblood of an economy. There is no way that reduced deficit spending, i.e. reducing the lifeblood, can grow the economy.

Cutting federal deficit spending to grow the economy would be like applying leeches to cure anemia.

Why then do the Republicans demand deficit reduction? Because most federal deficit spending benefits the lower income groups, and the Republicans are the party of the very rich.

Republicans hate such social benefits as Medicare, Social Security, Medicaid, and aids to education (unless they can privatize these programs for the benefit of Wall Street investors).

By contrast, they love war spending because it already benefits Wall Street — the military/industrial complex.

The Gap is what separates the rich from the rest of us.

Without the Gap, no one would be rich, and the wider the Gap, the richer they are. So the very rich do everything possible to widen the Gap, and that includes cutting social benefits.

A balanced budget amendment would put America into a permanent depression, in which the very rich would rule and the rest of us would have to beg them for sustenance.

A balanced budget amendment would be heaven for the very rich and hell for the rest of us. And the Republicans know it.

But amazingly, the Republican platform gets even worse:

Preserving Medicare and Medicaid

More than 100 million Americans depend on Medicare or Medicaid for their healthcare; with our population aging, that number will increase. To preserve Medicare and Medicaid, the financing of these important programs must be brought under control before they consume most of the federal budget, including national defense.

The above is a restatement of The Big Lie, that somehow the federal government can run short of its own sovereign currency and be unable to pay its bills. This is fear-mongering at its worst, an outright lie.

Medicare’s long-term debt is in the trillions, and it is funded by a workforce that is shrinking relative to the size of future beneficiaries.

Contrary to popular belief, your FICA payments do not fund Medicare. Taxes do not fund federal spending. Even if FICA were eliminated, the federal government could fund Medicare, not just for the elderly, but for every man, woman, and child in America.

FICA is a regressive tax, affecting the poor and middle classes far more than it affects the rich. It can and should be eliminated, while Social Security and Medicare are expanded.

We propose these reforms: Impose no changes for persons 55 or older.

If the proposal were good, why not give it to those 55 or older? The cynical reason: The proposal is terrible, so to get votes from the older people, they are exempted.

Give others the option of traditional Medicare or transition to a premium-support model designed to strengthen patient choice, promote cost-saving competition among providers, and better guard against the fraud and abuse that now diverts billions of dollars every year away from patient care.

You probably don’t know what this means. The confusion is intentional.

It means you will receive less money to pay for medical care than Medicare now spends. For the government to spend less, you will have to spend more.

The problem is that while the federal government has the unlimited ability to pay its bills, you don’t. So you will be impoverished, which will grow the Gap between the very rich and you.

Also note that the proposal has nothing to do with “patient choice,” “cost-saving competition among providers,” or a “guard against the fraud and abuse.” The proposal strictly is: You spend more so the government can spend less.

And finally, the following:

Set a more realistic age for eligibility in light of today’s longer life span.

Translation: Your Social Security and Medicare benefits will begin later. Who benefits from that?

In summary, the above sections of the Republican 2016 platform are a paeon to the very rich, designed at the behest of the rich to widen the Gap between the rich and the rest.

It is designed to fool you who rely on your leaders to aid and protect you. But these leaders have been bribed via campaign contributions and promises of lucrative employment later.

They care nothing for you, and so they lie and hope you believe them.

Do you?

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich afford better health care than the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE AN ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefiting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-tranferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be an good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

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

MONETARY SOVEREIGNTY

Time Magazine and the Big Lie in economics Sunday, Jul 24 2016 

The Big Lie in economics, very simply, is: “Federal taxes fund federal spending.”

Nearly all the popular misunderstandings in economics devolve from that five-word statement, or rather, misstatement.

While state taxes fund state spending, and city taxes fund city spending and euro-nation taxes fund euro-nation spending, U.S. federal taxes most assuredly do not fund federal spending.

In fact, even if all federal tax collections ceased, and not one tax dollar was sent by the private sector to the federal government, the government still could continue spending, forever.

The reason: The U.S. federal government, unlike the states, cities, and euro nations, uniquely is Monetarily Sovereign.

It has the unlimited ability to create any amount of its own sovereign currency, the U.S. dollar. It never can run short of dollars.

Faced with an invoice of a trillion dollars or even a trillion, trillion, trillion dollars, the U.S. government could pay it today, simply by creating dollars, ad hoc.

Because tax collections have zero effect on the federal government’s ability to pay, we taxpayers are not liable for federal debts.

Even if the government were faced with that above-mentioned, theoretical bill of a trillion, trillion, trillion dollars, we U.S. taxpayers would not owe one cent. Nor would our children and grandchildren have any liability whatsoever.

Yes, you and your kin, and all your neighbors and friends, and everyone in your state, and in the entire country could cease paying federal taxes today, and that would have no effect on the federal government’s ability to pay its bills. (You’d have to keep paying state, county and city taxes, however. They are monetarily non-sovereign.)

Those are the facts, the absolute facts of economics. How then can you explain the persistence of such misleading articles as this one by James Grant and Time Magazine:

The Big Lie Time Magazine

The United States of Insolvency
James Grant, the editor of Grant’s Interest Rate Observer
$13,903,107,629,266. Can the nation afford this much debt? James Grant offers his view

This much I have learned about debt after 40 years of writing and study: It is better not to incur it. Once it is incurred, it is better to pay it off. America, we have a problem.

We owe more than we can easily repay. We spend too much and borrow too much. Worse, we promise too much. We conjure dollar bills by the trillions–pull them right out of thin air. I won’t insist that this can’t go on, because it has. I only say that it will eventually stop.

I don’t know the date, but I believe that I know the reason. It will stop when the world loses confidence in the dollars we owe.

Come that moment of truth, the nation will resemble Chicago, a once prosperous polity now trying to persuade its once trusting creditors that it is actually solvent.

There, in a couple of short paragraphs, you see the commonly promulgated Big Lie about our economy — some half truths leavened with a giant dollop of lies.

Begin with the misleading title of the article: “The United States of Insolvency.” Grant and Time immediately tell you a lie.

The United States never can become insolvent — i.e. unable to pay its bills — unless Congress and the President want it (via the misleading “debt limit” game they play to confuse you).

Grant/Time said, “It is better to pay (the debt) off.” They lied to you.

The debt is nothing more than the total of T-security accounts at the Federal Reserve Bank. In short, bank deposits. There is no reason to pay off these bank deposits, though the federal government could do it tomorrow, if it wished.

The purpose of the so-called “debt,” i.e. T-securities, is to twofold: To help the Fed control interest rates and the money supply, and to provide a safe investment for the private sector.

Grant/Time said, “. . . more than we can easily repay.” They lied to you. We could repay those deposits today, simply by transferring them back to the owners’ checking accounts. No new dollars needed.

Grant/Time said, “We conjure dollar bills by the trillions–pull them right out of thin air,” which is absolutely true. It’s what we always have done, for the past 240 years of our existence. It is what all Monetarily Sovereign nations, like Canada, China, Australia, Japan, the UK, et al do. Creating money from thin air is what grows our economy.

In the past, whenever we stopped “conjuring” dollars, the economy stopped growing and we went into recessions and depressions.

Grant/Time said, “It (growing debt) will stop when the world loses confidence in the dollars we owe.”

This is a more subtle form of the Big Lie. The world simultaneously would have to lose confidence in China’s, Australia’s, Canada’s, the UK’s, and Japan’s money, as well as the euro and the money of all other governments for the U.S., the wealthiest nation on earth, to have difficulty issuing dollars.

Grant/Time said, “. . . the nation will resemble Chicago . . . ” They lied to you.

The U.S. government is Monetarily Sovereign. Chicago’s government is monetarily non-sovereign. The former has the unlimited ability to create dollars. The latter does not.

It’s as though Grant/Time don’t understand the difference between butter and a butterfly. The false comparison between federal financing and personal financing is an often-used lie.

Through wars, recessions, depressions, and inflations the U.S. government never has run short of dollars, and indeed, cannot run short of dollars.

You have been lied to for years and years. President Obama lied to you back in 2011, by making the same false comparison between federal financing and personal financing. He said:

“It comes down to this: We have to prioritize. Both parties agree that we need to reduce the deficit by the same amount — by $4 trillion.

“So what choices are we going to make to reach that goal? Either we ask the wealthiest Americans to pay their fair share in taxes, or we’re going to have to ask seniors to pay more for Medicare. We can’t afford to do both.

“Either we gut education and medical research, or we’ve got to reform the tax code so that the most profitable corporations have to give up tax loopholes that other companies don’t get. We can’t afford to do both.

“This is not class warfare. It’s math. The money is going to have to come from someplace.

He lied to you then, and he continues to lie to you now, boldface, absolute lies.

Yes, the money has to come from someplace. The federal government creates dollars, ad hoc, every time it pays a bill. Obama knows it. His advisors know it. Stephanie Kelton, the chief Democratic economist on the Senate Budget Committee knows it (though she is prevented from revealing it).

Why did Obama lie to you in 2011? Why did Grant and Time Magazine lie to you last April? Why have the media, the politicians and the university economists lied to you for decades?

Because they are paid by and controlled by the very rich, and the very rich want to control you by levying unnecessary taxes, and by restricting your benefits.

Obama is paid by rich contributors who will support him and his family after he leaves office. Grant was paid by Time which is owned and controlled by the very rich.

The rich control America. The Gap between the rich and the rest is what makes them rich (without the Gap, no one would be rich, and the wider the Gap, the richer they are.)

The rich widen the Gap by limiting the amount of healthcare you receive — refusing the free healthcare the government easily could provide.

They widen the Gap by limiting your Social Security — taxing it and by starting it later and later.

They widen the Gap by limiting your educational possibilities (via via the disgraceful student loan program).

They steal your money to impoverish you so you will need to beg them for help, and then you will send them contributions in hopes of getting that help.

You, the people of America are the victims of The Big Lie. You have been so brainwashed by our thought-leaders, that you angrily will defend The Big Lie. Consider the irony of the victims defending the victimizers.

WHAT ABOUT INFLATION?
If you understand Monetary Sovereignty, and try to explain it, eventually you will encounter this retort: “Yes the government always can print money, but that will cause inflation; look at Zimbabwe and the Weimar Republic.”

The people, who tell you that, seldom understand they tacitly have admitted the federal government never can run short of money (“. . . always can print money. . . “), so they have dissolved their entire argument about taxes being necessary, and all they have left is their argument about hyperinflation.

They base their concern on the false belief that Dollar Value = 1/Supply, that is, the greater the Supply of dollars, the less their Value (i.e inflation). That is what the rich want you to believe

However, the real formula is Dollar Value = Demand/Supply. The greater the Demand for dollars, the greater the Value of dollars.

And Demand is based on Reward/Risk. And Reward is interest. That is why, for the past century, the Fed has controlled inflation at close to its target rate of 2%, by controlling interest rates.

And as for the bogeyman of Zimbabwe/Weimar hyperinflation:

  1. The U.S. never has had a hyperinflation, despite two centuries of “debt” growth — even today, while Time publishes scare articles, inflation is quite low, and
  2. Hyperinflations are not caused by money creation. They are caused by specific economic factors. Zimbabwe’s was caused by Robert Mugabe’s stealing of farm land from farmers and giving to people who didn’t know how to farm. The resultant food shortage caused hyperinflation. Weimar’s hyperinflation was caused by onerous repayment requirements put on Germany by the Allies.

Excessive money creation is a common response to hyperinflation. In short, hyperinflations cause excessive money creation and not the other way around.

The Big Lie — Federal taxes fund federal spending — has been used for centuries to control you.

So long as you continue to believe the Big Lie, the very rich and powerful will continue to control every aspect of your and your family’s lives, their health, their education, and their finances — from birth to death.

The rich want you to believe resistance is futile, but it’s not. You merely first must understand you are being lied to by The Big Lie.

Then demand the truth and close the Gap.

Begin with the Ten Steps to Prosperity.

Rodger Malcolm Mitchell
Monetary Sovereignty

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
Ten Steps to Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich afford better health care than the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE AN ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefiting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-tranferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be an good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

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

MONETARY SOVEREIGNTY

Why the cashless society? To track and control your life Thursday, Jul 21 2016 

Here are some excerpts from an interesting article in Bloomberg:

Could India Be the First to Get Rid of Cash?
JULY 20, 2016 By Mihir Sharma

“Black money” — the colloquial name for a vast network of off-the-book cash transactions and unbanked savings — is one of India’s biggest scourges.

Amounting to as much as $460 billion a year, bigger than the GDP of Argentina, all that money lies beyond the reach of the tax authorities, creditors, and anti-corruption investigators.

Half the country’s output comes from the small, informal sector, where cash transactions are the norm.

Meanwhile, taxes are cumbersome to pay and easy to avoid.

To collect revenue, India’s government has to rely on indirect levies such as sales and excise taxes, which are distortionary and regressive, rather than on income tax.

Direct taxes contribute only 35 percent of the take in India.

Tax evasion has been a hot-button political issue in India for at least a decade. The anti-corruption crusader Arvind Kejriwal — now chief minister of the Indian capital Delhi — made headlines when he accused top politicians and businessmen of having illegal offshore accounts.

Belgium, for example, which has the highest proportion of cashless transactions in the world — 93 percent, according to MasterCard — has banned cash payments of over 3,000 euros.

India’s many poor people and migrants still struggle to access its chronically inefficient banking system, despite the government’s efforts at reform.

If presented with an easy and frictionless way of transferring cash, there’s no reason to think consumers wouldn’t embrace it quickly.

As cash gets used for fewer and fewer transactions, it will become easier for authorities to crack down on tax evasion.

The “cashless society” is proposed as an innocent, money-saving convenience, especially for poor people, and as a way to reduce corrupt tax avoidance. Thus, the “cashless society” is described as a morally and economically good program.

But its real purpose, its insidious purpose, is control.

Consider that India is Monetarily Sovereign. Its currency is the rupee (worth about $.15).

Being Monetarily Sovereign, India has the unlimited ability to pay any bill denominated in rupees.

Even if India stopped taxing altogether, it could continue spending forever. It never would run short of rupees.

Monetarily Sovereign entities do not need income so long as their currency is widely accepted for payment and/or exchange. The rupee is such a currency.

The article gave the example of Belgium, as a nation where few bills are paid with cash. But because Belgium uses the euro, it monetarily non-sovereign. It does not have its own sovereign currency, so it does not have the unlimited ability to pay its bills. It needs income.

Similarly, our states, counties and cities are monetarily non-sovereign.  They too, need taxes to fund spending.

By contrast, India (like the U.S., Canada, Australia, China, Japan, and other Monetarily Sovereign nations) does not need to collect taxes for bill payment.

Yet all these nations collect taxes, not because they need the currency (They don’t), but for economic control.

Tax collection, together with harsh laws about tax evasion, provide a means by which a government can track and control the finances of every citizen. Tracking and controlling finances allows governments to track and control the lives of their citizens.

When you use credit cards or checks to pay your bills, you create a “paper” trail, easily followed by the government. Similarly, if you are a business that accepts credit cards or checks in payment, your finances can be tracked.

More importantly, if you fall into either of the above categories, your finances not only can be tracked, but controlled.

Having the power to levy taxes on various forms of income or purchase, allows the government to control much of your life. For instance, a simple gasoline tax can affect such decisions as: Will you drive to work, take a train, or decide to work nearby? Where will you vacation? Where will you live? What kind of vehicle will you own? Import taxes affect what you buy. Luxury taxes affect what you own. Inheritance taxes affect what you leave behind.

The arbitrary tax rates on various forms of income dramatically affect your investing and your saving. Taxes affect your charity giving and your healthcare.

The requirements to declare your income and much of your spending allow the government to trace what you do and where you go.

The operations of any business are controlled in part, by what forms of income are taxed and what expenses are tax-deductible.

Today, computerized “big data” collection, gives the government a permanent record of your life and the lives of every business. Tax laws run the world.

The tracking and control afforded by tax collections is why the federal government does not want you to understand Monetary Sovereignty.

It is why the government wants you to believe the “Big Lie” (i.e. “Federal taxes fund federal spending”). It is why you repeatedly have been told wrongly that federal obligations are taxpayer obligations, and that when the government spends, its spends “taxpayer dollars” — all part of The Big Lie.

In summary, the real effect of the “cashless society” is to ease tax collection. The real purpose of federal tax collection is to track and to control your life.

Rodger Malcolm Mitchell
Monetary Sovereignty

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

Ten Steps to Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich afford better health care than the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE AN ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefiting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-tranferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be an good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

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

MONETARY SOVEREIGNTY

 

The buck stops there —> Wednesday, Jul 20 2016 

The hopeful leader of the free world, the man who through his brilliance and courage, will force Mexico, China and NATO to bend to his will, takes full responsibility.

“Melania is a college graduate. ” (Actually, she isn’t)

“She wrote the speech.”

“She didn’t write the speech.”

“There was no plagiarism.”

“It was only a little plagiarism.”

“They’re just common words.”

“It’s all Hillary’s fault.”

“It was all the writer’s fault.”

The buck stops there. Way, way over there.

 

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