The great lie in the 1st Amendment Wednesday, Aug 16 2017 

Governments don’t just happen. They laboriously are created. So, what is the purpose of a government?

The Declaration of Independence offers one opinion:

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men.”

The purpose of government, according to our founders, is to protect our rights. Many of these rights are enumerated in the Constitution, and specifically in the Amendments.

The very first Amendment reads in part:

“Congress shall make no law . . . abridging the freedom of speech, or of the press; or of the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”

The 1st Amendment exists because Americans fear government dictatorship. We abhor the thought police of China, Russia, North Korea, Cuba, et al. We feel the “slippery slope” of government intervention in our precious freedoms.

And yet, it simply is not true, and logically cannot ever be true. Congress makes all sorts of laws that break those Constitutional promises of freedom.

Begin with secrecy laws. Classified information is that which a government or agency deems sensitive enough to national security that access to it must be controlled and restricted.

The words, “a government or agency” immediately tell you that a great many people have the power to restrict your, or the press’s, freedom of speech. Want to know who all these people are? Go to Executive Order 13526 of December 29, 2009, Section 1.3.

Ask Chelsea Manning, Julian Assange, et al what happened to their “free speech” when they “leaked” classified information. I would tell you to ask Julius and Ethel Rosenberg, but they are dead, having been executed for exercising mythical “free speech” rights.

There literally are thousands of people in the federal government who can deprive you of your free-speech, free-press rights, at will, just by deeming something “classified.”

And, it’s not just classified information. Oliver Wendell Holmes’s analogy about shouting fire in a theater has been the psychological background for dozens, if not hundreds, of court decisions limiting speech that a judge felt was harmful.

For example, if one were to write, or even publicly say, the President should be assassinated, the Secret Service is likely to come down on him like a sledgehammer on a pat of butter. Your free-speech rights will not protect you if you encourage any sort of illegal violence.

Current law says that speech also can be prohibited if it “is directed to inciting or producing imminent lawless action and is likely to incite or produce such action.”

And that brings us to the Nazi/White Supremacy/alt right march on the University of Virginia campus in Charlottesville.Image result for nazi march in university of virginia

Does a combination of: Marching at night by hundreds of people, carrying torches and waving Nazi flags, while chanting such slogans as “Sieg heil” and “blood and soil,” and “Jew will not replace us,” and giving the Nazi salute — is that likely to incite or produce lawless action?

Is the existence of a statue glorifying the enslavement of black Americans likely to incite lawless action? What about a statue designed to insult and belittle Jesus? Does that qualify?

Then, there is the much misunderstood (by the public and by the Supreme Court itself) “fighting words” exception to free speech. The Court has effectively limited the exception to include only abusive language, exchanged face to face, which would likely provoke a violent reaction.

If hundreds of angry men carrying swastikas, chanting “Jew will not replace us,” pass in front of a group of Jews, while as background noise, Nazi websites encouraged the burning of synagogs and the killing of Jews — is that totality likely to “provoke a violent reaction”?

If you merely touch someone with your fist, you won’t be jailed, but if you hit someone with your fist, you can be jailed for the hurt you have caused. It is the hurt that is punishable.

Does shouting Nazi slogans at someone who has lost relatives to a Nazi furnace also cause deep, unrelenting hurt?

In the recent past, Germany allowed millions of immigrants, yet even this liberal and accepting nation has set limits.

Soon after the end of World War II, the Germans banned swastikas and other Nazi emblems, and the German people, not to mention the police, do not tend to react well when the symbols of that era are put on display.

Hours before the clashing demonstrations started in Charlottesville on Saturday, an American tourist in the German city of Dresden got punched in the face by a local for drunkenly throwing the Hitler salute.

Less than two weeks earlier, two Chinese tourists in Berlin made the same gesture while taking a photo in front of the Reichstag; they were promptly arrested and could face a fine or up to three years in prison.

In law, there always is a line between lawful and unlawful and that line generally is arbitrary and narrow. If the speed limit arbitrarily has been set at 30mph, only a judge having a bad day will punish you for going 32mph.

What is the “real” law? 35mph? 40mph? The judge probably will consider several factors: Your driving record. The weather and road conditions. Whether you were driving in a “reckless” manner (weaving, tailgating, etc.) Even whether you were cooperative and respectful to the police officer and to the judge.

He will consider the entire background of the incident.

What then is the “entire background” of hundreds of angry torch bearers, shouting threats to Jews and blacks? Does a history of slavery and lynchings count as part of the background? Does the Holocaust count?

Consider these articles:

CROFTON, Md. – Two men who were arrested in connection to a noose found hanging at Crofton Middle School have been charged with a hate crime.

and

Seattle Times: Cases of hangman’s noose are a part of uptick in hate crimes

and

KKK warns of more ‘commie’ deaths after Charlottesville
Heather Heyer was killed when James Fields allegedly rammed car into crowd protesting “Unite the Right” rally.

If simply hanging a noose, the purpose of which is to cause fear and hurt, can be considered a hate crime, what is the Nazi/White Supremacy march in Charlottesville, if not a hate crime?

A terrorist organization is defined as one that promotes the calculated use of violence (or the threat of violence) against civilians in order to attain goals that are political or religious or ideological in nature; this is done through intimidation or coercion or instilling fear.

Image result for nazis at university of virginia

White Nationalists surround and intimidate Students Against White Supremacy

President Trump, terrorism fighter, has been so concerned about terrorism, he even has banned Muslims who have no history of terrorism. Yet, don’t the Nazis and the White Supremacy groups fit the definition of terrorist groups?

Haven’t domestic terrorists done far more damage to America than have foreign terrorists?

After being indoctrinated online into the world of white supremacy and inspired by a racist hate group, Dylann Roof told friends he wanted to start a “race war.” Someone had to take “drastic action” to take back America from “stupid and violent” African Americans, he wrote.

Then, on June 17, 2015, he attended a Bible study meeting at the historic Emanuel A.M.E. Church in Charleston and murdered nine people, all of them black.

Finally, President Trump said, “What about the ‘alt-left’ that came charging at the, as you say, the ‘alt-right’? Do they have any semblance of guilt?”

The “alt-right” is a racist, far right movement based on an ideology of white nationalism and anti-Semitism. Many news organizations do not use the term, preferring terms like “white nationalism” and “far right.”

Researchers who study extremist groups in the United States say there is no such thing as the “alt-left.” Mark Pitcavage, an analyst at the Anti-Defamation League, said the word had been made up to create a false equivalence between the far right and “anything vaguely left-seeming that they didn’t like.”

To summarize: In law, there always is a “slippery slope” of government intervention. Yet, we create laws based on our best understanding of reality.

Naziism and white nationalism are not political parties like the GOP, the Democrats, and the Libertarians. These are hate-mongering organizations devoted to demeaning and injuring people whose color, religion, sexual orientation, citizenship, etc. they don’t like.

Naziism and white nationalism have no place in America. They are anti-America. They hurt Americans.It simply is illogical to provide such organizations with freedom-of-speech, freedom-of-assembly protections, while denying the same protections to a whistleblower who discloses a classified document.

It simply is illogical to provide such organizations with freedom-of-speech, freedom-of-assembly protections, while denying the same protections to a whistleblower who discloses a classified document.

We never have blindly followed the words “no law . . . abridging the freedom of speech.” We always have made exceptions when our citizens’ welfare was at risk.

There is a difference between right and wrong. It’s not a mystery in this case. Naziism and white nationalism are wrong. They do not incorporate sufficient redeeming qualities to entitle them to 1st Amendment protections.  They are terrorist organizations.

We should take a lesson from Germany, and use common sense. Ban these terrorist organizations, ban their symbols, and ban their marches, just as we have outlawed other terror.

Rodger Malcolm Mitchell

What controls inflation? What stimulates the economy? Wednesday, Aug 16 2017 

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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One simple definition of inflation is the loss in Value of Dollars (Inflation  = 1/Value of Dollars).

Increasing the Supply of dollars is inflationary; increasing the Demand for dollars is deflationary. Put the two together and you get:

Value of Dollars = Demand for Dollars/ Supply of Dollars.

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The Demand for dollars is: Demand = Risk/Reward

The Risk of owning dollars is Inflation. The Reward for owning dollars is Interest. Thus, the Fed limits inflation by increasing interest rates, i.e. increasing the Reward for owning dollars.

Although the Fed can increase the inflation-limiting Reward (interest) endlessly, there are serious functional and political consequences for reducing interest rates below zero. In short, the Fed has more power to reduce inflation than to increase it.

But there is more to inflation than just the Demand and Supply of dollars. Also to be considered are the Demand and Supply of Goods and Services (G&S).

When goods and services are in high Demand or in low Supply, more dollars are needed to buy them. When the price goes up the Value of the dollar is decreased. (Value of the dollar = 1/Price)

This brings the formula for inflation to:

Value of Dollars = (Demand for Dollars/Supply of Dollars) / (Demand for G&S/Supply of G&S)

In plain English, with interest rates held even, we will have inflation (dollar Value declines) if Demand for G&S exceeds Supply.  That is called a “shortage,” and a shortage of G&S, not an excess of money, is the usual path to inflations and to hyperinflations.

(Weimar hyperinflation was precipitated by a shortage of gold which caused a shortage of Goods & Services. Zimbabwe’s hyperinflation was precipitated by a shortage of food.)

Consider this excerpt from an article that appeared in Bloomberg:

The Fed can switch gears and see if looser monetary policy can boost productivity growth. The persistently weak inflationary environment offers the perfect opportunity for such an experiment.

Low inflation already vexes the Fed. Core inflation tumbled early in the year and remains well below the Fed’s target.

This alone gives the Fed reason to allow a slower path on rate hikes in an experimental effort to boost productivity growth.

Said another way: The Fed wants to raise inflation to its 2% target rate, so it should cut interest rates to boost productivity growth.

This idea is based on an implied and related set of popular myths:

Myth I. An inflation rate above zero is necessary to encourage consumption, today. If inflation falls below zero, or even close to zero, the public will defer consumption, waiting for lower prices.
Myth II. High interest rates inhibit economic growth because they discourage consumer and business borrowing.
Myth III. The Fed can create and control economic growth by carefully managing interest rates and the money supply.

Let’s examine these myths:

Myth I. Inflation is necessary to encourage consumption, today.

No one accurately can measure inflation, which is defined as a “general increase in prices.” Investopedia says, “As a result of inflation, the purchasing power of a unit of currency falls. For example, if the inflation rate is 2%, then a pack of gum that costs $1 in a given year will cost $1.02 the next year.”

Think about it. Is that what really happens? Each commodity goes up 2%? Gum goes up 2 cents?

Realistically, in any given year, some prices go up, some go down, and most don’t change. I buy gum, and I haven’t seen those annual, fractional price increases. Have you?

To attempt any measurement of inflation, the government uses averages as described in Investopedia:

  • (CPI) – A measure of price changes in consumer goods and services such as gasoline, food, clothing, and automobiles. The CPI measures price change from the perspective of the purchaser. 
  • Producer Price Indexes (PPI) – A family of indexes that measure the average change over time in selling prices by domestic producers of goods and services. PPIs measure price change from the perspective of the seller.

But not only do CPI and PPI prices change over time, but products change. How does the government account for the prices of product improvements — a “better” car, TV, clothing, washing machine, smart phone, paint?

For instance, today’s 60″ TVs cost less than yesterday’s 36″ TVs. Would you consider that to be inflation, deflation or “none-of-the-above”?

Further, the rich use different products and services than do the poor. In fact, different products and services are used by each of many economic, geographic, age, and ethnic groups. There are no “average” purchasers or “average” sellers.

And as for the theory that inflation encourages consumption, did fear of inflation encourage you to buy a car today, a TV, clothing, a washing machine, a smart phone, paint today?

Aside from (maybe) a house, the threat of inflation doesn’t encourage you to buy anything today, does it?

The whole notion of inflation encouraging consumption, today, is based on textbook economic hypotheses and on what happens during hyperinflations, but not on human daily reality.

Myth II. High interest rates inhibit economic growth because they discourage consumer and business borrowing.

Yes, the stock market drops every time the Fed indicates it plans to raise rates. But, there is a saying in the market, “Buy the rumor; sell the fact.” It means stock prices are based on predictions about what other investors will do, not on reality.

Higher interest rates force the federal government to pay more interest into the economy, which is stimulative. That is why you see a graph like this:

Blue line = Interest rate; Red line = GDP growth

Over the 25-year period, 1955-1980, interest rates averaged higher and trended upward as GDP growth also trended upward. From 1980-2015, interest rates trended lower and while GDP growth also trended downward.

Historically, low interest rates have paralleled slow economic growth.

Myth III: The Fed can create and control economic growth by carefully managing interest rates.

The Fed can reduce and/or prevent unwanted inflation by increasing interest rates, which increases the Demand for dollars.  The Fed has unlimited power to increase interest rates, which gives it unlimited power to reduce inflation growth.

The Fed has much less power to prevent unwanted deflation because of the functional and political limits to how low it can take interest rates. Because the Value of a dollar =Demand for dollars/Supply of dollars, Congress has far more power than does the Fed to increase inflation by increasing Supply.

With all of the above considered, the current reality is: The initial influence on inflation in America today is oil prices. Oil prices affect, to some degree, the price of every product and every service.

The price of oil is embedded in all levels of manufacture, all levels of shipping, and every level of service.

 

Monetary Sovereignty

Red line = Changes in the Consumer Price Index for Energy; Blue line = Changes in the Consumer Price Index for All Items

 

The Fed uses its interest rate tool in a constant battle with oil prices and with Congressional budgeting, to control what it believes to be the nation’s optimum level of inflation for optimum economic growth.

Speaking of economic growth, a typical formula is:

Gross Domestic Product = Federal Spending + Non-federal Spending + Net Exports

Federal Spending not only is a direct factor, but it also affects Non-federal Spending by providing dollars to businesses.

Federal spending is the primary controllable driver of GDP growth, and this control over Federal Spending primarily is in the hands of Congress and the President, not the Fed.

The Senators and Representatives who claim the Fed is “not doing enough” to grow the economy merely are shifting blame from their own mishandling of the budget. Bottom line:

Congress and the President control economic growth, and the Fed controls inflation.

Contrary to what you repeatedly are told, federal “deficits” (economic surpluses) and federal “debt” (deposits in T-security accounts at the Federal Reserve Bank) are stimulative and infinitely sustainable.

Congress and the President, by pretending that federal deficits and debt are a danger to the economy, are the ones most responsible for low economic growth and a widening Gap between the rich and the rest of us.

In summary, the Federal Reserve has a limited mission: To manage banking and to prevent excessive inflation. Economic growth is the mission of Congress and the President.

Get to it, boys.

Rodger Malcolm Mitchell
Monetary Sovereignty

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The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

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 The Ten Steps To Prosperity can narrow the Gaps:

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 can afford better health care than can 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 A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Economic Bonus)) 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 EVERYONE Five 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 benefitting 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 FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce 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 business taxes would be a 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 are you surprised? The moral abomination. Monday, Aug 14 2017 

Image result for trump

Why are you surprised? White supremacists are my base.  Haven’t you been listening to me?

 

O.K., if I have to . . . . do I really have to?  Really? (Sigh) All right:

Amid pressure, Trump says racism is ‘evil’ and condemns KKK and neo-Nazis as ‘thugs’

Under pressure all weekend, President Donald Trump on Monday named and condemned hate groups as “repugnant” and declared “racism is evil” in an updated, more forceful statement on the deadly, race-fueled clashes in Charlottesville, Virginia.

Trump had been under increasing pressure to call out the groups by name after his previous remarks bemoaning violence on “many sides” prompted criticism from fellow Republicans as well as Democrats.

The president described members of the KKK, neo-Nazis and white supremacists who take part in violence as “criminals and thugs” in a prepared statement from the White House.

O.K., I said it. Are you satisfied?

(Pssst: To my base, I still love you, and I still hate people who aren’t white and all immigrants unless they are rich. I just wanted to be sure you to know I was forced to be politically correct. Actually, I didn’t really say it. They wrote it for me to read. Not how I feel.)

Do you deserve to be a desperate, low-wage worker? Protest. Learn. Vote. Sunday, Aug 13 2017 

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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The pundits continue to mislead the public about Monetary Sovereignty, and that is just what the rich want. If you accept their lies, you will have less and less, while they have more and more — and that will make you desperate enough to slave permanently for low wages.Image result for minimum wage workers

In June, three columnists were quoted by The Week Magazine, Tom Rogan, Michael Tanner, and Jordan Weissmann. What these three men said was outrageously wrong, but it is the norm in today’s “made-to-misinform,” “owned-by-the-rich” media.

First, Rogan:

Why Trump’s budget is smart to propose cuts to healthcare research

The failure to reform entitlements is economic insanity. It will bury the nation in debt, and restrain the opportunities available to future generations.

“The money has run out,” said Rogan in WashingtonExaminer.com. This country is “taking on persistent deficits” and “slowly drowning” in $20 million of national debt.

Translations:

  1. “Reform entitlements” is conservative-speak for “gut Medicare, gut Medicaid, and gut Social Security.” This would widen the Gap between the rich and the rest, exactly what the rich pay the media to do.
  2. The so-called “debt” actually is the total of deposits in T-security accounts at the world’s safest bank, the Federal Reserve Bank. Does Rogan call his local bank’s deposits “debt”? Does he claim that his local bank is “drowning” in deposits? Why does he say it about the world’s safest bank? Paid by the rich.
  3. Federal “deficits” are the net dollars the government spends into the economy. Federal deficits are the economy’s income. Federal deficits are an economic surplus. If the federal government didn’t run deficits (economic surpluses), the economy would have no income other than net exports (which we seldom run), and we would fall into a depression.

Misunderstandings would disappear if we properly called the misnamed debt, “deposits,” and the misnamed deficits, economic “surpluses.”

Here is a bit of history. Debt reductions lead to depressions:
1804-1812: U. S. Federal Debt reduced 48%. Depression began 1807.
1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819.
1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837.
1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857.
1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873.
1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893.
1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929.

U.S recessions follow deficit growth reductions, and are cured by deficit (economic surplus) growth increases.

Monetary Sovereignty

As the federal deficit (economic surplus) growth falls, we approach recession, which is cured by deficit (economic surplus) growth increases. Economic surplus growth is necessary for economic growth.

Then, there’s Michael Tanner in National Review.com:

Trump realizes “he can’t actually balance the budget simply by eliminating ‘waste, fraud, and abuse. The only way to truly reduce federal spending is to . . . cut programs that are popular, supported by powerful, special interests, or both.”

Image result for minimum wage workersTranslation: “Balance the budget” means, “Add zero new dollars to the economy, thereby preventing economic growth.”

You need to balance your budget. Even your city and state need to balance their budgets.

But the federal government never should balance its budget. Never.

And then we come to the craziest comment yet, this one by Jordan Weissmann in Slate.com:

“If you really want to tackle the debt, you have to take on the two giants of federal spending: Social Security and Medicare.

Without entitlement reform, and with massive tax cuts for the wealthy to fund, Trump’s budget is nothing more than a ‘permission slip’ for Paul Ryan and company . . . telling them ‘they are free to go wild butchering the essential pieces of the safety net.”

Get it? Weissmann wants to “take on” (i.e. gut) Social Security and Medicare, but does not want to “butcher . . . the safety net” (i.e. Social Security and Medicare). Huh?

Finally, we are told that deficit spending is not just a fiscal problem, it is a moral problem:

GOP Budget: Deficit Spending ‘a Sin;’ We’ll Do It 9 More Years
By Terence P. Jeffrey | August 2, 2017

The Republicans in Congress today heroically (plan to) balance the budget in fiscal 2027 — after increasing the debt every year from 2017 through 2026.

“For too long, the federal government’s excessive spending has put future generations at risk,” says a statement on the committee’s website. “Failure to take swift and decisive action is not only inexcusable, it is immoral.”

We today, are the “future generations” who were “at risk” back in 1940, when the federal debt was $40 billion and was called a “ticking time bomb.  Today, the federal debt is $14 TRILLION, and that “at risk” time bomb supposedly still is ticking.

Here is the federal debt fear-mongers’ story:

A cult leader told his flock the world was about to end, so they should give him all their worldly goods and go to the top of the mountain to await the end. They believed, but when the end didn’t happen, they came down to destitution, haven given everything away.

The next year the cult leader said the same thing, and they believed him again, and every year after that he warned them, they believed, and gave away their possessions, again and again. They were incapable of learning from experience.

I have just told you the federal debt fear-mongers’ story.

“As Nobel Laureate James M. Buchanan wrote: ‘Politicians prior to World War II would have considered it to be immoral (to be a sin) to spend more than they were willing to generate in tax revenues, except during periods of extreme and temporary emergency,'” said the report.

“‘To spend borrowed sums on ordinary items for public consumption was, quite simply, beyond the pale of acceptable political behavior. There were basic moral constraints in place; there was no need for an explicit fiscal rule in the written constitution.'”

Oh, the immorality of it, spending for ordinary items that you, the public may consume.Image result for minimum wage workers

The rich, “high priests” of America want you to believe that only the rich are entitled to consume.

They want you “not-rich” to work endlessly for scraps. They want you to believe that the worse your life, the more moral you are, and the only way to be moral is to work ’til you drop.

That way, the rich would have a ready supply of slave labor, uncomplaining ignorant, low-wage slaves. It would be “good” for the economy.

Let’s summarize the lies the rich want you to believe.

  1. The federal government is running short of money. (It can’t. It is Monetarily Sovereign.)
  2. The federal “debt” and deficits are unsustainable. (Unsustainable like the phony “time bomb” that has been ticking since 1940.)
  3. The problem is: You receive too much in Social Security, Medicare, Medicaid, and other social benefits. You are not entitled to those benefits. Only the rich should live well. You should work ’til you drop. (Who made that rule?)

The rich want you to accept the lies so you will be a desperate worker. Your defense is to understand the truth and to protest, protest, protest. And learn. And vote.

And that brings us to our last point:

Up to 75.5 percent of those very lowest income families didn’t vote in 2014. Lower-income people tend to vote less than higher-income people.

Voting rates go up with income levels — the highest-income group, people in families making $150,000 or more, also had the highest turnout, at 56.6 percent.

The rich are not better than you. The rich do not deserve more than you. They are just people who think they are better and think they deserve more.

Protest. Learn. Vote.

If you let them con you, and if you accept their lies, well maybe they will be proved right.

Rodger Malcolm Mitchell
Monetary Sovereignty

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The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

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 The Ten Steps To Prosperity can narrow the Gaps:

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 can afford better health care than can 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 A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Economic Bonus)) 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 EVERYONE Five 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 benefitting 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 FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce 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 business taxes would be a 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

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