What becomes of a nation when lies and ignorance rule? Thursday, Jul 27 2017 

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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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What becomes of a nation when lies and ignorance rule?Image result for america will destroy ignorance

It’s a question quite appropriate to the times. Let me provide some examples.

Ben Carson: The World Was Created in 6 Days. Literally

During a 2011 lecture that was part of a “Celebration of Creation,” Carson decried the Big Bang theory and asserted that Darwin’s theory of evolution was “encouraged” by Satan.

In that talk, Carson did take slight issue with those creationists who claim the Earth came into existence just several thousand years ago. He noted, “I am not a hard-and-fast person who says the Earth is only 6,000 years old.”

Yet Carson quickly added, “I do believe in the six-day creation.” And he meant literally six days, not metaphorical days—that is, not days that might have lasted millions of years.

He explained:

It says in the beginning God created the heaven and Earth. It doesn’t say when he created them, except for in the beginning. So the Earth could have been here for a long time before he started creating things on it.

But when he did start doing that, he made it very specifically clear to us the evening and the morning were the next day because he knew that people would come along and try to say that, “Oh, it was millions and millions of years.”

And then what else did he say in the very first chapter? That each thing brought forth after its own kind. Because he knew that people would come along and say, you know, this changed into that and this changed into that and this changed into that.

So at the very beginning of the Bible, he puts that to rest.

Ben Carson is President Trump’s selection to head the Department of Housing and Urban Development.

Carson has no experience, education, or knowledge in this area. Total ignorance. Would any company hire a manager who has no experience, education, or knowledge about the area he is supposed to manage?

Then we have the words of Anthony Scaramucci, the new Trump communications director:

Trump’s new communications director once compared the consensus on climate change to the belief that the world was flat.

“I know that (President Obama) believes that the human beings are affecting the climate. There are scientists that believe that that’s not happening,” Scaramucci said.

When CNN anchor Chris Cuomo pointed that the “overwhelming consensus in the scientific community” is that humans are driving climate change, Scaramucci said people also once accepted the idea that the Earth was flat.

“Chris, there was an overwhelming science that the Earth was flat and there was an overwhelming science that we were the center of the world. One hundred percent. We get a lot of things wrong in the scientific community,” Scaramucci said.

Cuomo talked over him: It’s called ignorance,” he said. “You learn over time.”

Scaramucci responded: “I’m not suggesting we’re not affecting the change, I honestly don’t know. I’m not a scientist. If you’re asking for my opinion.”

“I’m not,” Cuomo said.

Scaramucci also brought up another controversial idea: how old the Earth is.

“You’re saying the scientific community knows, and I’m saying people have gotten things wrong throughout the 5,500-year history of our planet,” he said, then later corrected himself to clarify that he meant human history, not Earth’s entire history.

Modern humans have actually been around for roughly 200,000 years, however.

Scaramucci uses the old “If scientists were wrong once, you can’t believe anything science tells you” lie. It’s a false proposition designed to deny any facts in any argument.

No matter what scientific evidence you provide for anything, the other person merely says, “Scientists were wrong once so they could be wrong again,” thereby destroying all facts. It is intentional ignorance.

Then comes Donald Trump, possibly the most ignorant man ever to occupy the oval office. His ignorance comes from his ego and mental laziness.

He hates reading and because he believes he already knows everything, he refuses to expend the effort learning requires. He tweets because his attention span is to short for more thorough writing.

Trump urges Senate to pass health care bill, says he has ‘pen in hand‘ 

President Trump said Wednesday he is anxious for Senate Republicans to come together to pass legislation to repeal and replace ObamaCare, a day before Senate Majority Leader Mitch McConnell is expected to release a draft of a new bill.

“I am sitting in the Oval Office with a pen in hand, waiting for our senators to give it to me,” Trump said.

On Wednesday, Trump expressed frustration that Republicans are struggling to pass the legislation — especially since they now have a president willing to sign it.

“Obama wasn’t going to sign it. … Now we have a president that’s waiting to sign it,” he said. “I have pen in hand so now it means something.”

Image result for signing blindfoldedNotice that Trump had no idea what might be in the latest bill. Not only has Trump demonstrated abject ignorance about health care insurance, but the new plan hadn’t even been released.

He had no idea what was in it.

Yet, he was sitting, “pen in hand,” ready to sign whatever was put in front of him, just so he could eliminate something with Barack Obama’s name on it.

This is the ultimate of dangerous ignorance for a President of the United States — neither knowing nor caring what he was signing, so long as it was anti- his predecessor.

What becomes of a nation when lies and ignorance rule?

We are well on our way to learning.

Rodger Malcolm Mitchell
Monetary Sovereignty

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

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

You have no idea what the Department of Energy does. The imminent threats facing America. Wednesday, Jul 26 2017 

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

Rick Perry famously campaigned to eliminate the Department of Energy.  So predictably, Donald Trump chose him to run the place.Image result for department of energy

Rick Perry still has no idea what the D.O.E does, and neither does Donald Trump — and neither do you.

Does it matter? Yes, actually, because the D.O.E may be more important to your safety, and to the safety and the future of America, than is the military.

In this vein, I urge you, I beg you, to read this article about the DOE that appeared in Vanity Fair. You will thank me, afterward.

A few excerpts:

On the morning after the election, the people who ran the U.S. Department of Energy had cleared 30 desks and freed up 30 parking spaces.

Whoever won the election would surely be sending a small army into the Department of Energy, and every other federal agency. The morning after he was elected president, eight years earlier, Obama had sent between 30 and 40 people into the Department of Energy.

By afternoon the silence was deafening. “Day 1, we’re ready to go,” says a former senior White House official. “Day 2 it was ‘Maybe they’ll call us?’ ”

“The election happened,” remembers Elizabeth Sherwood-Randall, then deputy secretary of the D.O.E. “And he won. And then there was radio silence.

Across the federal government, the Trump people weren’t anywhere to be found. Allegedly, between the election and the inauguration not a single Trump representative set foot inside the Department of Agriculture, for example.

The Department of Agriculture has employees or contractors in every county in the United States, and the Trump people seemed simply to be ignoring the place. Where they did turn up inside the federal government, they appeared confused and unprepared.

A small group attended a briefing at the State Department, for instance, only to learn that the briefings they needed to hear were classified. None of the Trump people had security clearance—or, for that matter, any experience in foreign policy—and so they weren’t allowed to receive an education.

On his visits to the White House soon after the election, Trump’s son-in-law, Jared Kushner, expressed surprise that so much of its staff seemed to be leaving. “It was like he thought it was a corporate acquisition or something,” says an Obama White House staffer. “He thought everyone just stayed.”

This was symptomatic of two problems:

  1. Trump thinks the world runs on negotiation. He does not plan or focus. He believes he can walk into any situation, with no preparation, and because of his greatness, he can bluff his way through. He does not deal with complexity.
  2. Trump also believes the government is composed of idle, ignorant bureaucrats, sitting around doing nothing. He thinks he can slash away at departments, ignore or fire thousands “useless” people, and there will be no repercussions.

This is your introduction to one agency, the D.O.E. I promise, you will be amazed — and frightened.

The D.O.E., though created in the late 1970s, largely in response to the Arab-oil embargo, had very little to do with oil.

About half its budget (in 2016 approximately $30 billion) went to maintaining the nuclear arsenal and protecting Americans from nuclear threats.

It sent teams with equipment to big public events—the Super Bowl, for instance—to measure the radiation levels, in hopes of detecting a dirty bomb before it exploded.

“They really were doing things to, like, keep New York safe. These are not hypothetical things. These are actual risks.”

A quarter of the budget went to cleaning up all the unholy world-historic mess left behind by the manufacture of nuclear weapons.

The last quarter of the budget went into programs aimed at shaping Americans’ access to, and use of, energy.

Maintaining our nuclear arsenal, protecting Americans from nuclear threats, cleaning up dangerously radioactive sites, increasing our access to energy — these would seem to be rather vital missions for an agency about which Trump and Perry know so little they continue to talk about cutting it back.

This would be as disastrous for America as dissolving the Navy, yet few Americans, Trump and Perry included, understand why.

(A) $70 billion loan program had been authorized by Congress in 2005 to lend money, at very low interest rates, to businesses so that they might develop game-changing energy technologies.

The idea that the private sector under-invests in energy innovation is part of the origin story of the D.O.E.

The basic problem is that there is no constituency for an energy program. There are many constituencies opposed. Existing energy businesses—oil companies, utilities—are obviously hostile to government-sponsored competition.

At the same time they are essentially commodity businesses, without a lot of fat in them. The stock market does not reward even big oil companies for research and development that will take decades to pay off. And the sort of research that might lead to huge changes in energy production often doesn’t pay off for decades.

Plus it requires a lot of expensive science: discovering a new kind of battery or a new way of capturing solar energy is not like creating a new app.

Fracking—to take one example—was not the brainchild of private-sector research but the fruit of research paid for 20 years ago by the D.O.E. Yet fracking has collapsed the price of oil and gas and led to American energy independence.

Solar and wind technologies are another example. The Obama administration set a goal in 2009 of getting the cost of utility-scale solar energy down by 2020 from 27 cents a kilowatt-hour to 6 cents. It’s now at seven cents, and competitive with natural gas because of loans made by the D.O.E.

“The private sector only steps in once D.O.E. shows it can work,” said Franklin Orr, a Stanford professor of engineering.

The whole idea is for the federal government to invest in research, much of which might never pay out. The private sector cannot afford those failures, but if a dozen failures lead to one success, America profits.

Politically, the loan program had been nothing but downside. No one had paid any attention to its successes, and its one failure—Solyndra—had allowed the right-wing friends of Big Oil to bang on relentlessly about government waste and fraud and stupidity. A single bad loan had turned a valuable program into a political liability.

Yet, even that political liability was an economic success. The money the government poured into Solyndra was an economic stimulus that, because federal spending is not funded by taxes, did not cost American taxpayers one cent.

The article also tells you an interesting and scary story about Hanford, WA.

In early 1943, the United States Army was evicting everyone from an area in Eastern Washington nearly half the size of Rhode Island and setting out to create plutonium in order to build a nuclear bomb: Hanford WA.Image result for nuclear waste

The place created two-thirds of the plutonium in the United States’ arsenal—a total of 70,000 nuclear weapons since 1945. You’d like to think that if anyone had known the environmental consequences of plutonium, or if anyone could have been certain that the uranium bomb would work, they’d never have done here what they did.

Plutonium is hard to produce and hard to get rid of.

The United States promised to return Hanford to a condition where “kids can eat the dirt.” (The estimated) cost to return Hanford to the standards now legally required: “A century and a hundred billion dollars.” And that was a conservative estimate.

The Department of Energy wires 10 percent of its annual budget, or $3 billion a year, into this tiny place and intends to do so until the radioactive mess is cleaned up.

The worst thing that could happen is that the federal government loses interest in it and slashes the D.O.E.’s budget—as President Trump has proposed to do.

This post does not do justice to the Vanity Fair article, which again, I urge you to read it in its entirety.

It will give you an understanding you do not currently have, not just of the D.O.E., but of the imminent threats facing America.

Rodger Malcolm Mitchell
Monetary Sovereignty

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

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

 

Focus on the non-problems; lose the election Monday, Jul 24 2017 

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

Imagine your car is stuck on a dark, lonely road because you have run out of gas. So you go into the trunk, pull out the jack, lift your car, and change out the tires.

Is that a good solution to your gas problem?

I mention this because the Democrats have a problem. They can’t win elections. The reason is, they don’t address the voters’ real and perceived problems.

Consider these data:

The View From the Top

The financial Gap between the rich and the rest is wide and widening. Here are some slightly newer data — the GINI Index. Not much has changed:

The higher the GINI Index the greater the distance between the rich and the rest.

The graph shows the GINI Index, the measure of financial inequality, has remained stubbornly high, partly because the rich are growing richer while the rest are standing still.

In 1998, the real median household income in the United States was $56,510. In 2015 it was $56,516. Allowing for inflation, Americans have made no progress since 1998.

Recently, a reader (ejhr2015) called my attention to a speech by Professor Stephanie Kelton, who formerly was an economic advisor to Bernie Sanders and to the Democratic Senate. She is a brilliant economist, Associate Professor of Economics at the University of Missouri-Kansas City.

She understands that Federal taxes don’t fund federal spending, the federal government never can run short of dollars, and deficit spending is necessary to grow the economy.

Prof. Kelton also is the Director of Graduate Student Research at the Center for Full Employment and Price Stability. And therein lies the problem.

Professor Kelton, the one person who truly understands the implications of Monetary Sovereignty, and who also has an influence on Democratic Party policy, is a leader of an organization devoted to full employment and price stability at a time when unemployment and inflation are low.

Unemployment (red) and Inflation (blue) are near historic lows.

In short, the Democrats and MMT are busy changing tires, when the car has run out of gas.

What is the single biggest problem in America, today? There are many, of course. Drugs, health care, student debt, Social Security, crime, politicians, and immigration are a few. But, I say our worst, real and perceived problem is the widening Gap between the rich and the rest.

U.S. Jobs Growth Picks Up, but Wage Gains Lag Behind, By Jeffrey Sparshott
Updated July 7, 2017 6:57 p.m. ET

“Employers added 222,000 positions in June and unemployment rate ticked up to 4.4% as more people joined the workforce

U.S. employers are churning out jobs unabated as the economic expansion enters its ninth year, but the inability to generate more robust wage growth represents a missing piece in a largely complete labor recovery.

U.S. employers added a seasonally adjusted 222,000 jobs in June, the Labor Department said Friday, and the unemployment rate rose slightly to 4.4% with more people actively looking for work.

The U.S. has now added jobs for 81 consecutive months.

The good news is that even though economists suggest that the U.S. is nearing “full employment,” people are continuing to join the workforce.

The bad news is that most workers are still waiting to see meaningful pay raises.

So what is the focus of MMT and the Democrats? The non-problems of full employment and inflation.

And what does MMT suggest for the Democrats’ platform? AJobs Guarantee” of minimum wage jobs — the very last thing the voting public wants or needs.

And that is how to lose elections.

(The Ten Steps to Prosperity (below) are recommended to narrow the financial inequality Gap, the real problem facing Americans.)

Rodger Malcolm Mitchell
Monetary Sovereignty

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

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

What the “Big Lie” costs you every day of your life. Saturday, Jul 22 2017 

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders..
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You, who understand Monetary Sovereignty, know that:

Image result for first us dollar coin

Value and quantity determined by laws.

 

  1. Before there was the United States of America, there were no U.S. dollars and so could be no taxes in dollars.
  2. Our Monetarily Sovereign federal government created an arbitrary number of original U.S. dollars from thin air, simply by writing laws. Initially, the government spent dollars without collecting taxes.
  3. By those laws, our federal government continues to create U.S. dollars from nothing. So long as the government does not run short of laws, it will not run short of dollars, whether or not taxes are collected.
  4. Thus, unlike state and local (monetarily non-sovereign) governments, the federal government neither needs nor uses tax dollars to pay its bills. It simply creates dollars, ad hoc, as it always has done from the very first day. That is the fundamental difference between federal finances and state/local government finances. (State/local governments do use taxes.)
  5. Whenever you hear that the federal government, or any agency of the federal government (Social Security, Medicare, the Supreme Court, et al), can become insolvent, know that any such insolvency would be intended by the government. Otherwise, no federal agency ever can be insolvent, even if zero taxes are collected.

Because federal financing is so unlike state and local government financing, and unlike business financing and unlike personal financing, many people can be confused by the differences.

People know they need income in order to pay their bills, so they wrongly assume the federal government also needs income. It doesn’t.

People see the government collecting taxes, so they wrongly assume these taxes are needed for the federal government to pay its bills.

(“Why else would they collect taxes?” I’ll answer this question later in the paper.)

But because it is Monetarily Sovereign, the federal government has no need for taxes or for borrowing or for any other form of income.

This confusion between personal finances and federal finances is supported by such articles as the following, from The Atlantic and the U.S. News & World Report, reprinted in today’s Chicago Tribune:

What Others Are Saying

Jonathan Kay, The Atlantic: The United States is falling apart because — unlike Canada and other wealthy countries — the American public sector simply doesn’t have the funds required to keep the nation stitched together.

Immediately, the article goes off the tracks, never to return. If by “public sector” does the author refer to the federal government or to state and local governments?

He may be confused himself, for what is true for the latter is false for the former.

A country where impoverished citizens rely on crowdfunding to finance medical operations isn’t a country that can protect the health of its citizens. A country that can’t ensure the daily operation of Penn Station isn’t a country that can prevent transportation gridlock.

The federal government has the financial capability to fund comprehensive, no-deductible Medicare for every man, woman, and child in America.

In contrast, if Penn Station is funded by state and local government agencies, it very well can run short of dollars. The author, either intentionally or unintentionally, fails to differentiate.

The Organization for Economic Co- Operation and Development (OECD), a group of 35 wealthy countries, ranks its members by overall tax burden — that is, total tax revenues at every level of government, added together and then expressed as a percentage of GDP — and in latest year for which data is available, 2014, the United States came in fourth to last.

Its tax burden was 25.9 percent — substantially less than the OECD average, 34.2 percent.

If the United States followed that mean OECD rate, there would be about an extra $1.5 trillion annually for governments to spend on better schools, safer roads, bettertrained police, and more accessible health care.

We aren’t told which of those “wealthy countries” is Monetarily Sovereign and which is monetarily non-sovereign. Canada, Australia, China and Japan, for instance, are Monetarily Sovereign. They never can run short of their own sovereign currencies, so can afford to pay any invoice denominated in their sovereign currencies, without levying taxes.

By contrast, Germany, Italy, France, and Greece, for instance, are monetarily non-sovereign. They do not own a sovereign currency; they use the euro which is the sovereign currency of the European Union, and not under the control of any one nation.

Thus, these countries do need taxes in order to pay their bills.

The author mentions “every level of government.” So, while a Monetarily Sovereign government never can run short of its sovereign money, states, counties, and cities can run short.

Unfortunately, in the world today, not one nation acts as a Monetary Sovereign. Every nation on earth functions as though is monetarily non-sovereign, and so even those who don’t use taxes, still collect them

When Canadian governments need more money, they raise taxes. Canadians are not thrilled when this happens. But as Justice Oliver Wendell Holmes Jr. put it, taxes are the price paid “for civilized society.”

Fact: When the Canadian national government needs more money, it creates the Canadian dollars, ad hoc. When any local Canadian governments need more money, they must raise taxes or borrow. Completely different.

The author repeatedly confuses the two, hinting at a serious lack of knowledge about economics.

Brian Riedl, U.S. News & World Report: After doubling to $20 trillion since 2009, the national debt is now projected to soar to an unfathomable $92 trillion over the next 30 years.

To “lend” to the federal government, you invest in a T-security. You instruct your bank to transfer dollars from your checking account to your T-security account at the FRB. The so-called “national debt,” is not like personal debt. It actually is the total of deposits in T-security accounts at the world’s safest bank, the Federal Reserve Bank.

To pay back the principal on these deposits (which it does every day), the FRB merely transfers existing dollars from the T-security accounts, back to the checking accounts of the T-security owners. This is no burden whatsoever on the federal government or on the FRB. The dollars exist. It’s just a money transfer.

At that point, depending on interest rates, between 60 and 100 percent of all individual income taxes will go toward paying the interest on this debt.

Wrong: No federal taxes “go toward paying the interest on this debt.”

When federal taxes are collected, they disappear from the money supply. (This is different from state and local taxes, which remain in the money supply.)

Thus, federal taxes effectively are destroyed upon receipt.

To pay its bills, including interest, the federal government sends instructions (not dollars) to creditors’ banks. The instructions, in the form of checks or wires, instruct the banks to increase the balances in the creditors’ checking accounts.

At the moment the banks obey those instructions, brand new dollars are created.

What is driving the federal budget into bankruptcy? Health care spending. …

The above is a classic statement of the Big Lie.

As we have seen, the federal government cannot go into bankruptcy. Given its unlimited ability to create the laws that create dollars, it never can run short of dollars.

The author blames health care spending for a non-existent problem.

Critics denounce Republican attempts to “slash health care spending.” In reality, their proposals would slow the growth of health care spending relative to the current baseline projections — projections that are completely unsustainable anyway. …

Federal health care spending is not “unsustainable.” The federal government could spend ten times the projected amount and still, that would not be “unsustainable,” as the federal government has the unlimited ability to pay bills denominated in dollars.

(We also have) a Medicare system that currently collects $140,000 in lifetime taxes from the typical retiring couple and then provides them with $422,000 in benefits (all adjusted into net present values). Multiply this by 77 million retiring baby boomers, and Medicare’s long-term shortfall is measured in the tens of trillions of dollars.

The federal government neither needs nor uses taxes to pay benefits. It destroys tax dollars upon receipt, and it creates brand new dollars, ad hoc, by paying bills.

You may ask,

  1. “Why do Mr. Kay and Mr. Riedl so dramatically misstate the facts about federal financing;
  2. Why do they confuse Monetary Sovereignty with monetary non-sovereignty;
  3. Why does the federal government collect taxes it doesn’t need?

The United States, and indeed the world, are run by the very rich.  The primary motive of the very rich is to widen the income/wealth/power Gap between them and the rest.

There are two ways for the rich to widen the Gap: Lift themselves up, or push the rest of us down.

The Big Lie that federal taxes fund federal spending pushes the rest of us down in two ways: It takes money directly from our pockets (especially such regressive taxes as FICA and sales taxes). And it provides the false “deficits are unsustainable” excuse that keeps us from receiving federal benefits.

The Big Lie takes money out and prevents money from coming in.

To promulgate the Big Lie, the rich bribe the politicians (via campaign contributions and promises of lucrative employment later). The rich bribe the media (via advertising dollars and ownership of media). The rich bribe the economists (via contributions to universities and employment at “think tanks”).

By controlling all sources of economics information — the politicians, the media, and the economists — the rich are able to brainwash the public into believing their taxes must be increased and their benefits must be decreased — in short, the Gap between the rich and the rest must be widened.

I do not know whether Mr. Kay and Mr. Riedl have been told by their respective publications to write the Big Lie, or whether they themselves have been bribed, or whether they simply are ignorant of basic economics.

At least one of these must be true.

But in any event, their articles are just small examples of the ongoing misinformation that has been pumped into the private sector for many years — the Big Lie that costs you so much, every day of your life.

Were it not for the rich sponsoring the Big Lie, the Ten Steps to Prosperity (below) could already be in force, and your life would be far better than you can imagine.

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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