How you can help protect Medicare and Social Security Friday, Jun 22 2018 

.

It takes only two things to keep people in chains:

The ignorance of the oppressed
And the treachery of their leaders

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

You endlessly have been told that Medicare and Social Security Trust funds will, in the near future, run short of money unless benefits are decreased or taxes are increased.

In the post, Fake federal trust funds and fake concerns we debunk this false idea. Today, I’ll suggest what you can do to help protect your Medicare and Social Security.

First, as a quick refresher, here are excerpts from a very short article in THE WEEK Magazine, June 22, 2018:t

Nolan Finley: The annual report from the trustees of Social Security and Medicare shows that both programs “have accelerated their race toward the brick wall of insolvency.”

Social Security will spend more money this year than it takes in for the first time since 1983.

Finley and the trustees are wrong.

Social Security and Medicare are departments of the U.S. federal government. As such, they cannot become insolvent unless the U.S. becomes insolvent and/or Congress and the President want them to become insolvent.

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

It can pay any debt denominated in dollars. Because the federal government’s financial obligations are denominated in U.S. dollars, the U.S. government always can pay them. It even can pay any obligation denominated in a foreign currency, simply by exchanging dollars for that currency.

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

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

In short, the United States government cannot become insolvent. 

The notion that a department of the U.S. government can become insolvent is like saying the mail room of a large, infinitely wealthy corporation can become insolvent — an obvious impossibility unless the corporation were arbitrarily to decide not to pay the mail room’s expenses.

Further, Social Security does not “take in” money. Those FICA dollars extracted from your paycheck do not pay for Social Security. Upon receipt by the Treasury, they disappear from any measure of the U.S. money supply — M0, M1, M2, M3, L — or any other code.

Your tax dollars effectively are destroyed upon receipt.

If you ask, “How much money does the federal government have,” you will not find the answer. What the federal government does have is the unlimited ability to create dollars. It “has” infinite dollars.

(If your business owned an infinite dollar-creating machine, how many dollars would your business have?  And would any department of your business be in danger of insolvency?)

Nolan Finley continues: “Without drastic changes, the Social Security Trust Fund is now expected to be depleted within 16 years, going bust by 2034.

Things are even grimmer when it comes to Medicare’s Hospital Insurance Trust Fund — Medicare Part A — which is projected to run out of money by 2016.

At 63, I’ll probably still collect my benefits but, ‘I feel for the generations behind me. There seems no chance they’ll ever collect anything.'”

These latter three paragraphs voice ideas promulgated by the rich to make the rest of us accept unnecessary reductions in our benefits.

You’ll notice that Finley did not mention Medicare Part B (mostly doctors)  and Part D (prescriptions). Why? Because these two benefits are run through the bookkeeping ledgers of the Supplementary Medical Insurance (SMI) Trust Funds.

These mythical “trust funds” receive their bookkeeping credits from the federal government’s General Fund which never unintentionally can run short of its sovereign currency.

That is why no one ever talks about Medicare Part B and Part D becoming insolvent. They have access to an infinite number of dollars.

So, you might ask, why not fund Medicare Part A and Social Security the same way Parts B and D are funded — from the limitless General Fund?

The answer: The politicians, the media, and the economists are paid by the rich to keep you ignorant of the fact that Social Security and Medicare, Parts B & D have infinite access to money.

If you knew this, you might ask for increases in benefits, thereby narrowing the financial Gap between you and the rich — the very last thing the rich want.

In fact, there is a very good chance you didn’t know it until this very moment, and now you are sitting there thinking, “Is this really possible? They’ve been telling me Medicare can ‘go bust,’ but they only are talking about Part A, and they are lying about that, too.”

Yes, that is exactly what is happening. You are being lied to. And the cure for lies is the fresh air of truth.

I suggest you contact your Senators and your Representative, and rather than go through the entire argument about Monetary Sovereignty, simply say this:

“We repeatedly are told that Medicare will become insolvent unless there is a decrease in benefits or a tax increase.

“Were you aware that this applies only to Medicare Part A? Medicare Part B and Part D are paid out of the federal General Fund, which means they cannot become insolvent.

“So the question is: Why doesn’t Congress merely specify that Medicare Part A benefits be paid the same way as Medicare Part B and Part D?

“That would completely eliminate all the concerns about insolvency.

“(The same would be true for Social Security. It too should be paid from the General Fund.)”

A letter would be good. A phone call would be better. A letter + a phone call would be better yet. Repeated phone calls and letters would be the best.

If enough people do this, maybe, just maybe . . .

Anything is possible if enough people want it.

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

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

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 (Guaranteed Income)) 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

Sessions defends it but Trump says it’s Democrats’ fault. Wednesday, Jun 20 2018 

Image result for Charles Coughlin

Father Coughlin

.

It takes only two things to keep people in chains:

The ignorance of the oppressed
And the treachery of their leaders

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

Separating immigrant children from parents: Sessions defends it, but Trump blames Democrats.

Huh?

That’s like the child who denies involvement, “I didn’t do it and I never will do it again.”

In classic Charles Coughlin style, Atty. General Jeff Sessions used quotes from the bible to justify his bigotry:

Sessions says the Bible justifies separating immigrant families.

“Let everyone be subject to the governing authorities, for there is no authority except that which God has established. The authorities that exist have been established by God” — has been read as an unequivocal order for Christians to obey state authority, a reading that not only justified Southern slavery but also authoritarian rule in Nazi Germany and South African apartheid.

When Southern preachers blasted Northern abolitionists for defying the Fugitive Slave Act in the decade leading to the Civil War, they cited the same lines.

In 1744, clergyman Elisha Williams remarked that the text was “often wrecked and tortured by such wits as were disposed to serve the designs of arbitrary power.” Sessions’s comments yesterday kicked up a similarly intense response.

The same Bible verse was also cited by South Africa’s white Afrikaner minority as the country was locked down under a series of racist laws after World War II.

When you’re a bible thumper, and you use the bible to justify your actions, but your own church says you’re immoral, you know you have a problem.

Attorney General Jeff Sessions pointed to the Bible to defend the separation of children from their parents at the U.S.-Mexico border, but in a letter dated June 18, Methodists accused Sessions of child abuse, immorality, racial discrimination and “dissemination of doctrines contrary to the standards of doctrine of the United Methodist Church.”

The charges each relate to Sessions’s “zero-tolerance” border crackdown that has evoked bipartisan outrage, while the last is specifically linked to his use of the Bible to defend the policy.

Sessions’s support and advocacy for “holding thousands of young children in mass incarceration facilities with little to no structured educational or socio-emotional support” and for “directing employees and staff members to kidnap children from their parents” falls in violation of the Methodists’ Book of Discipline, the Methodists contend in the letter.

“While other individuals and areas of the federal government are implicated in each of these examples, Mr. Sessions — a long-term United Methodaist in a tremendously powerful, public position — is particularly accountable to us, his church. He is ours, and we are his. As his denomination, we have an ethical obligation to speak boldly when one of our members is engaged in causing significant harm in matters contrary to the Discipline on the global stage.”

And now that Sessions has taken credit for separating children from their parents, and even has used the bible as his basis, President Trump says it’s all the fault of the Democrats:

“Immigration is the fault, and all the problems that we’re having because we cannot get them (the Democrats) to sign legislation, we cannot get them even to the negotiating table, and I say it’s very strongly the Democrats’ fault.

What’s happening is so sad. It’s so sad,” he said.

Sessions takes “credit,” but it’s all the Democrats’ fault, and it’s “sad, so sad,”  but the bible says it’s good.

And the GOP dominated Congress must come up with legislation, and though Trump has no idea what that legislation will be, he wants you to believe the Democrats should sign it.

It gets worse. President Trump, the Thomas Edison of facts (i.e. he invents more of them than anyone) has new facts to back Session’s “zero tolerance” act, (the act that is the Democrats’ fault):

Trump falsely claims Germany has migrant-driven crime wave

President Trump, on Tuesday, insisted that Germany’s crime rate has spiked due to its open-door policy toward migrants, a false claim he has used to bolster his “zero tolerance” stance on illegal immigration.

“Crime in Germany is up 10% plus (officials do not want to report these crimes) since migrants were accepted. Others countries are even worse. Be smart America!” Trump tweeted.

German government statistics for 2017 showed the country had its lowest level of crime in 25 years.

Trump on Tuesday also reiterated his support for the zero-tolerance policy, which has resulted in roughly 2,000 children separated from their families who illegally crossed the United States’ southern border.

Why does Trump support separating children from their parents, though it’s “sad, so sad”?

Politics. He’s pandering to his hard-line, immigrant-hating, brown-skin-hating base.

Majority of Republicans support family separation policy

A Quinnipiac University poll found: Republican voters support the policy 55 to 35 percent. They are the only listed party, gender, education, age or racial group to support the policy, according to Quinnipiac.

Sixty-six percent of American voters oppose the policy, according to the poll.

And then we have excerpts from the following article:

This is what tyranny looks like

Tyrannical rule often begins this way, as something that looks like a mistake–perhaps over-excited law enforcement people or confused bureaucrats. 

That’s the way it was in Argentina in the 1970s, when young people began mysteriously disappearing in night-time arrests by paramilitary and secret police.

In Turkey, following a 2016 coup attempt, as the months went by, and the detentions and arrests expanded to more than 100,000 this year–including university professors, journalists, and judges–it became clear that something much more than a response to a coup attempt was occurring.

Unfortunately, America’s sudden fixation on separating migrant children from their parents bears similar hallmarks of tyranny.

Key among these qualities are lots of seeming confusion and double talk by government officials, and finger-pointing about the origination and rationale for the heavy-handed policies.

A major goal of the confusion is to promote secrecy. Reporters don’t know such basics as how many centers there are to house children separated from their parents.

Even prominent politicians seem unable to extract significant amounts of information. Reporters and politicians were allowed a short tour of (presumably) the most attractive facility. Some reporters characterized this model center housing young children as a bunch of “cages.”

NPR: “According to the Texas Civil Rights Project, which has been able to speak with detained adults, multiple parents reported that they were separated from their children and not given any information about where their children would go.

 The organization also says that in some cases, the children were taken away under the pretense that they would be getting a bath.”

The secrecy also makes it difficult for Americans to fully appreciate the horror being visited on migrant families.

There is the mother who was separated from her five-year-old son six weeks ago. They still haven’t seen each other, and she’s frantic she’ll be deported without him: “On the afternoon of their second day in detention, two male agents entered the cell. They didn’t say anything. They just walked over and grabbed Jairo. He clung to me, cried and screamed. They had to pull him away.’

She pleaded with the agents to tell her what was going on. In the next few hours, the agents started taking other children, too.”

The contradictory and confusing explanations offered by officials overseeing the entire child-separation horror are also designed to suggest that no one is responsible for the outrage.

That helps communicate that the events are somehow blips, exceptions, not part of any larger goal.

The President has been the master of the double talk going on, seeming to change his tune by the day and hour.

He has blamed Democrats for somehow having made family separations mandatory. Except it is the policy of his own attorney general, which Trump presumably approved.

Then the White House followed yet another path: “The harshest family separation policy is that too many Americans have been permanently separated from loved ones because of crime spilling across our border.”

The larger message inherent in the immigration tyranny is that it could be more widely applied to American citizens regarded as enemies–journalists, university professors, opposition politicians”..the list is endless.

This message becomes clearer by the refusal of the administration to back down in the face of widespread condemnation.

Certainly putting law enforcement people through the repeated heartbreaking exercise of breaking up families and imprisoning children will serve to harden them for the real work that could be coming up before long.

To summarize the Trump/ hard-line, GOP position:

  1. In April, Sessions announced a zero-tolerance policy on illegal border crossings
  2. White House budget director Mick Mulvaney defended the “zero tolerance” policy, saying the Trump administration was merely enforcing existing laws (laws that do not mention separating children from their parents).
  3. Session’s zero-tolerance position is good.
  4. The bible justifies it, though Session’s Methodists and other religions do not.
  5. And it’s “sad, so sad”
  6. But it’s all the Democrats’ fault for not signing the legislation.
  7. Though Trump has no idea what that legislation says or even exists.
  8. And though the GOP has a voting majority in both houses of Congress, the lack of legislation is the Democrats’ fault.
  9. Germany’s crime rate is up, because they let so many immigrants in (though Germany’s crime rate actually is down.)
  10. Enemies (foreigners we don’t like), even infant children of enemies, are to be treated harshly. Nothing is too cruel. Nothing is too horrifying. We can do whatever we want to those people, because . . . .
  11. The precedent has been set. If you voice your disapproval, you are an enemy, so you are next, and there is nothing I, the President, can do about it. And remember, it’s all the Democrats’ fault.

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

How false economic ideas are disseminated: Terry Savage edition Monday, Jun 18 2018 


It takes only two things to keep people in chains:

The ignorance of the oppressed
And the treachery of their leaders

.

 

All over the country — actually, all over the world — politicians, media commentators, and economists disseminate completely false economic ideas to an innocent public.

Then, having received these false ideas, the public facilitates the dissemination process by telling friends, relatives, students, and strangers.

It happens every day. Do you remember when you thought stomach ulcers primarily were caused by emotional stress? Do you remember when you thought margarine was more healthful than butter? Do you remember when you tried the latest fad diet?

Why did you believe? Because you heard it or read it, so you repeated it.

Each day I am reminded of this phenomenon and today, once again, I was reminded, this time by Terry Savage’s article in the Chicago Tribune.

Terry Savage’s own website says:

“Terry Savage is a nationally recognized expert on personal finance, the economy and the markets. She writes a weekly personal finance column syndicated in major newspapers by Tribune Content Agency.

“She is the author of four best-selling books on personal finance. The Savage Truth on Money was named one of the top ten money books of the year by Amazon.com in its first edition. Her other recent book is: The Savage Number: How Much Money do You Really Need to Retire?

“Terry appears frequently on national television and radio programs, commenting on the financial markets and current economic events. She is featured on WGN Radio and WGN-TV in Chicago, with a weekly personal finance segment. And in days past you saw her often as a money expert on Oprah!”

Yes, Terry is an “expert,” one of a multitude of “experts,” who repeatedly feed you false information, and who when challenged, defend their false positions with false claims and fake statistics.

Today, being in the mood to butt my head against a wall, I wrote to Terry, the following letter concerning her today’s column:

Hi Terry,

It’s been a long time since we last corresponded, and I see you still have not learned the differences between a Monetarily Sovereign government and a monetarily non-sovereign entity.

Here are some excerpts from your Social Security article, with a few comments:

“We can’t repay our debt. Everyone knows it, and no one is willing to say it. But the United States is awash in debt that can’t possibly be repaid.”

If you’re talking about the federal debt, this is 100% false. The so-called federal debt is the total of deposits in T-security accounts. The government could pay off the entire “debt” if it chose to, simply by returning the dollars that exist in those accounts, back to the account holders.

“Perhaps a spurt of economic growth could put a dent in our massive debt, but at this stage, we are piling on new debt at rates far higher than reasonable expectations of growth.”

Reducing the “debt” (i.e. running a federal surplus) would cause a depression, or at best, a recession.

U.S. depressions tend to come on the heels of federal surpluses.
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.
1997-2001: U. S. Federal Debt reduced 15%. Recession began 2001.

“And the burden has grown, despite record low interest rates. As rates start rising, or as tax revenues fall during the next recession, the problem will overwhelm us and we will be forced to face the truth. We have made promises we cannot keep.”

This would be true of state and local governments, which are monetarily non-sovereign, but it is not true of a Monetarily Sovereign government, which cannot run short of dollars. It can keep any promise denominated in dollars.

“And we can’t just print money to pay the bills, as that will only result in devaluing our currency. Who would want dollars as they flood the market?”

In 1940, the federal “debt” was $40 Billion. Today the “debt” is $15 Trillion – a 37,500% increase.  The government has “printed” all those trillions of dollars, yet everyone still wants them, and inflation has been low, averaging close to the Fed’s target rate of 2.5%.

Federal debt = blue line. Inflation = red line. Massive debt growth has yielded low inflation.

“The government would have to pay higher interest rates as a bribe to get the world to lend to us to finance our deficits.”

The federal government, unlike state and local governments, does not borrow. Having the unlimited ability to create dollars, why would it need to borrow? The purpose of T-securities is not to obtain spending funds but rather to:
1. Provide a safe, interest-paying “parking place” for dollars, to help stabilize the dollar, and to
2. Help control interest rates.

“And those higher rates would only add to our debt burden. The Congressional Budget Office estimates that a one percentage point increase in interest rates adds $1.6 trillion to our 10-year budget deficit. Higher rates just dig a deeper hole.”

The interest on T-securities is not a burden – not on the government and not on taxpayers. The federal government pays interest by creating dollars, ad hoc. It never can run short of dollars to pay its bills.

“According to the ticking debt clock at http://www.TruthinAccounting.org., the U.S. national debt now stands at slightly more than $21 trillion. And we are in the process of adding another half a trillion dollars to it through the budget deficit predicted for 2018.”

Every year, since 1940, the federal debt has been called a “ticking time bomb” (see: From ticking time bomb to looming collapse), and still no explosion. That’s 78 years of false claims, but the debt Henny Pennys still have learned nothing.

“But the real issue is all the promises we’ve made to pay future benefits like Social Security and military retirement benefits. According to TruthinAccounting,org, adding those promises over the coming 30 years bring the total U.S debt to more than $104 trillion. The mind boggles at the thought.”

Unboggle your mind, Terry. That fearsome $104 Trillion is 7 times the current level. But, thirty years ago, the “debt” was $2 Trillion. Now it is 7.5 times that level, and the economy looks pretty good. What does that tell you?

“That brings us to the Social Security trustees report that was recently released. It hardly made a splash in the headlines. The trustees report says the Social Security trust fund will be exhausted in 2034. It will happen at the height of the baby boomer longevity spurt.”

Total nonsense. There is no “trust fund.” (See: Fake federal trust funds). As even the Peter G. Peterson Foundation admits:

“Although many believe that the existence of trust funds guarantees the sustainability of programs in the future, trust funds are simply accounting mechanisms that are part of the way the federal government keeps its books.

“The actual cash inflows and outflows of the programs are combined with all other federal programs and therefore contribute to federal surpluses and deficits.

“If a program is in surplus, the federal government’s overall deficit balance improves because it uses the additional receipts from the program to fund costs of other programs.

“In effect, the government is conducting transactions with itself but keeping track of inflows and outflows of funds through trust funds.

“Ultimately, trust fund income and outlays are not separate from the rest of the federal budget, and the sustainability of trust fund programs, like Social Security, depends on the overall sustainability of the federal government.”

Terry, everything you wrote about the federal government finances is true of state and local government finances. And it is true of business finances. And it is true of your finances and my finances. We all are monetarily non-sovereign.

But it is not true of the Monetarily Sovereign federal government’s finances.

If you wish to learn the difference, I’ll be glad to teach you.

Rodger Malcolm Mitchell

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

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

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 (Guaranteed Income)) 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

The final solution to the immigration problem. Torture the Children. Sunday, Jun 17 2018 

Image result for concentration camp

“Deutschland Uber Alles”

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“Make America Great, Again”

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Here is the final solution to the immigration problem: Torture the children.

Separate the terrified, innocent children from their mothers, load them into boxcars, and ship them off to concentration camps.

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Mommy!

Don’t allow them to know where their parents are, keep them in windowless buildings, preferably in cages, or house them in tents in hot, dusty, southern Texas. And above all, don’t let them play.

To be a child is to play and to know joy, to create happy memories. But not these children.  No, you must increase the misery in their already miserable lives.

Isn’t that what America stands for?Image result for nazi boxcars

Oh, what is it you say? America already is doing that?

And it’s not a new idea? Other nations have shown this cruelty?

It all has had been done before?

Atty. General Jeff Sessions blamed the parents for bringing their children in the first place, seemingly ignoring that many of them are fleeing violence in their home countries.

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It’s not my fault. It’s the fault of their parents. I’m protecting children.

They are the ones who endangered their own children on their trek,” Sessions said. “The United States, on the other hand, goes to extraordinary lengths to protect them while the parents go through a short detention period.”

Rev. Jennifer Butler, the CEO of Faith in Public Life, told the Daily News. “Ripping children from their mothers is not doing good to these families, or to any of us. It is cruel, wrong and sinful.”

The U.S. Conference of Catholic Bishops, one of the country’s most influential Christian organizations, also blasted the Trump administration policy.

“Our government has the discretion in our laws to ensure that young children are not separated from their parents and exposed to irreparable harm and trauma,” the group said in a statement. “Families are the foundational element of our society and they must be able to stay together.”

“(Sessions) should study the Apostle Paul more closely. In Galatians 6, Paul instructs Christians: ‘So then, as we have the opportunity, let us do good to everyone, and especially to those who are of the household of faith,’”

Image result for children separated at border

“It’s very biblical to enforce the law.”

The White House, on the other hand, sided with Sessions’ biblical interpretation.

“I can say that it’s very biblical to enforce the law,” press secretary Sarah Huckabee Sanders said after she was asked about Sessions’ Thursday comments. “It’s repeated many times throughout the Bible.”

Sessions blamed the parents. Sanders blamed the bible. Trump blamed the Democrats.  Hitler blamed the Jews.

They all knew evil, but still they defended the indefensible.

Note to Donald Trump’s religious followers: Trump is not your man.
He has no moral base; he has no ethics. There is no truth in the man.  He has committed almost every sin, and does not even attempt to make amends.

He bends the law to enrich himself and to oppress the poor. He repeatedly commits adultery. He steals. He bears false witness. He covets his neighbors’ wife and belongings.

He is unrepentant.

Trump does not “make America great.” He is turning America into the world’s most despised nation.

Once, other nations looked to America for moral leadership. Now, they see what we do to immigrants — what we do to children — and they turn away from us in revulsion.

This is what Trump has brought. This is what you encourage by not speaking out against him. Your silence emboldens him. Your support inspires him.

He has sold his soul to the devil, and as he sinks ever lower, he pulls you down with him.

To torture children for political purposes — Children! What sin could be more terrible?

No church attendance, no amount of pious prayer, no amount of coins in the tray, no flag waving, can exonerate you in your God’s eyes. God will not shed his grace on thee.

What will you tell your children when they ask you what you did, and whom you supported? Will you excuse the sinner? Will you explain the torture of children because they were foreigners, whose crime was to seek refuge?

Will you pass the bigotry and hatred down to yet another generation?

To support the sinner is to be the sinner. You aided and abetted. His sins are yours.

Your God will not forget; you will not be forgiven.

When you ask, “Why?” remember the Children.

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

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