Good news! Student loans as crappy as ever, with even less time to pay them down.

Mitchell’s laws:
●The more budgets are cut and taxes increased, the weaker an economy becomes.

●Until the 99% understand the need for federal deficits, the 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Austerity = poverty and leads to civil disorder.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.


In today’s world, where jobs are based less on strong backs and more on strong minds, our nation benefits when Americans receive a college education, just as it used to benefit when Americans received elementary and high school educations.

To compete, America needs educated people. Period. So it makes sense for the federal government to support education at all levels. Unfortunately, it is the cash-poor, monetarily non-sovereign, local governments that are forced to support grades 1-12, and the equally cash-poor citizens who must support college.

The cash-unlimited, Monetarily Sovereign, federal government — the one entity in America that never can run short of dollars — pays relatively little.

Washington Post

Senate deal would freeze student-loan rates for year
By Rosalind S. Helderman, Published: June 26

More than 7 million college students could be spared higher loan rates under a deal reached Tuesday by Senate leaders. The agreement would freeze the interest rate for a year, preventing it from doubling from 3.4 percent to 6.8 percent on July 1, making college more affordable for students as tuition costs are rising.

Translation: In government-speak, making no change in interest rates, while tuition costs are rising, somehow makes college “more affordable.”

Although leaders in both parties said they favored the rate freeze, they argued about how to cover its $6 billion cost.

Translation: We don’t want the public to realize the federal government has the unlimited ability to create dollars. Next thing you know, these poor fools will demand things like Medicare for all and Social Security that actually provides a living benefit.

So, we put on a fake debate about how to “cover” costs, when we know the government can “cover” any cost.

The House had approved a GOP-backed bill to pay for the rate freeze by eliminating a preventive-care fund created by Obama’s health-care law. That measure did not receive the 60 votes necessary to advance in the Senate. But neither did a competing Democratic proposal to pay for the student loan item by closing a tax loophole that allows some small-business executives to avoid payroll taxes.

Translation: We know this is all slight-of-hand. Eliminating preventive care always costs more in the end, because people get sicker. And whenever people don’t give all their money to the government, we call that a “loophole.”

The extension would be paid for by raising premiums for federal pension insurance, an idea acceptable to businesses because rules on how companies calculate their pension liabilities would be changed. A senior Democratic aide said the pension proposals, which came from Reid, would generate $5.5 billion.

Translation: Here’s the logic: The government pays banks to keep interest rates at 3.7%. However, real rates have dropped so low, banks essentially pay 0% for money. So, banks make more than ever, especially because these loans are risk-free. And by the way, did we mention that some student loans cost as much as 8.5%!! (No one knows why).

To keep interest rates the same, costs many billions more (No one knows why). And, although the federal government can create unlimited dollars, it must increase its income (No one knows why). So we must raise the premiums federal workers pay for pension insurance (No one knows why). There will, however, be no additional cost to Congresspersons (Everyone knows why.)

Meanwhile, students would be limited in how long they could receive a federally subsidized loan to 150 percent of their program length — so, six years for a four-year undergraduate degree — a suggestion from Republicans. The aide said that proposal would raise $1.2 billion.

Translation: As if it already weren’t hard to pay off your loan, your government is going to make it harder. You better get a really good job in a hurry, because “According to figures from the Federal Reserve Bank of New York,(Yahoo News) 37 million Americans hold student loan debt. And:

The total amount of student loan debt in the United States is estimated to be between $867 billion and $1 trillion dollars, and default rates for student loans continue to rise.” And:

The average student loan debt totals between $23 thousand and $27 thousand. Imagine students paying that off (plus interest) in six years or less — in this economy.

Senators said they must decide whether to link the student-loan deal to a two-year measure that would extend highway funding, which also will expire July 1.

Translation: Seems reasonable. Student loans. Highway funding. Same thing, right? Your Congress working for you.
Now I have a couple questions for Congress and the President:

1. Why does our Monetarily Sovereign government need to search for dollars to support college loans? Why the charade about taking dollars from the public, when the government doesn’t need to ask anyone for dollars?

2. Why are monetarily non-sovereign states, counties and cities forced to support grades 1-12? Poor local governments support poor school systems. Why doesn’t the Monetarily Sovereign federal government support all grades 1-12 on a per capita basis, for greater quality and equality among educational opportunities?

3. If it benefits America for elementary and high school education to be free, why isn’t college education also free? See: Government should offer free college education

And at long last, may we please, please stop the lies about our federal government running short of dollars. Please.

Rodger Malcolm Mitchell
Monetary Sovereignty

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption + Net exports


One thought on “Good news! Student loans as crappy as ever, with even less time to pay them down.

  1. [1] Banksters partner with universities to maintain the student loan scam. It works like this…

    Private bankers issue loans that are publicly guaranteed (i.e. federally-backed). Schools grab that loot, and raise their tuition in order to grab still more loot sent them by the bankers. (If you doubt this, consider that tuition increases FAR outpace inflation.) Higher tuition creates a higher demand for loans, which lets banksters raise their interest rates, which have no negative effect on the schools. The more loans issued by the bankers (who cannot lose, even if students default), the more schools raise their tuition. The more schools raise their tuition, the more loans are issued by the bankers.

    It’s a vicious upward spiral, in which the victims are students and the nation at large. If you complain about the banks, they point at the schools. If you complain about the schools, they point at the banks. Both sides are in on it.

    This is why the heads of universities are paid $300-400K per year. They sustain the racket, and they are rewarded for it.

    It is also why Quebec Canada wants to dramatically increase tuition rates. Quebec schools are not hurting for money, but the schools and bankers see how lucrative the American scam is, and they want the same lucrative scam for Quebec.

    With a house mortgage, you lose the house if you cannot make the payments. With a student loan debt, the “house” is your body. You cannot discharge the debt via bankruptcy. You can only escape by dying.

    You could move to a foreign country, but soon this will no longer give you protection, since the too-big-to-fail banks are increasingly linked. It’s like a driver’s license. If your license is suspended in one state, then you probably will not be able to get a new driver’s license in a different state, because of “administrative reciprocity.” Likewise, if you have a student loan default in the USA, then you will increasingly find that no foreign bank will give you a loan. Eventually they will not even let you open an account with them.

    Syria and Iran still have free education. Libya did too before NATO attacked. Thus,
    Syria and Iran must be destroyed, as Libya was. Venezuela has private elitist universities for the rich, plus free university education for the 99%. Thus, Hugo Chavez is an “evil dictator.”

    [2] RODGER WRITES, “We put on a fake debate about how to ‘cover’ costs, when we know the government can ‘cover’ any cost.”

    Yes. For a hundred years, a university education was FREE in California, and CA universities rivaled and often surpassed Chicago and Atlantic universities states. When Reagan became governor in 1967, he eliminated free education, calling his crime a “reform.” Since 1967, CA’s financial problems have worsened every year, and yet, Reagan enriched the 1% so much, and impoverished the masses so much, that in 1980 the 1% installed him as U.S. President.

    [3] RODGER WRITES, “The average student loan debt totals between $23 thousand and $27 thousand. Imagine students paying that off (plus interest) in six years or less — in this economy.”

    Yes. Not just interest, but compound interest. This cannot be paid amid a permanent depression, in which there are no jobs. The more students default, the more the 1% will punish all Americans with austerity.

    This reminds me of economist Michael Hudson, who says that debts which cannot be repaid will not be repaid. Hudson cannot understand why European bankers don’t grasp this, and I cannot understand why Hudson does not grasp that the bankers know exactly what they are doing. They are deliberately impoverishing the 99%.

    [4] RODGER WRITES, “May we please stop the lies about our federal government running short of dollars? Please.”

    Unfortunately the masses cling to the lies that enslave them. The 99% have a vested interest in defeating their own interests. Why? For reasons that Rodger already explained in previous posts.

    Education, for example, can close the gaps between socioeconomic classes. However, equality is unacceptable to the 1%, and to most of the 99%. If I am a fat, white, unemployed, ignorant racist Tea Party moron, then I do not want non-whites to have education. They might get “uppity” and think they are as good as me. They might ask for food, medical care, a roof over their heads, and a minimum of decency. Let them suffer and die, so I can feel “superior” to them, even though I am an impoverished, unemployed, white trailer trash slug myself. Let me vote for whatever policy the 1% issues, so I can be “better” than those “below” me. And when my stupidity causes me to become even worse off, I will blame those “below” me.

    Incidentally, the engine of this stupidity is not just greed, but fear. Greed and fear are two sides of the same coin, and are always found together. For example, the 1% are greedy, but they also live in constant fear that someday their power and privilege might end. They regard the 99% as a hideous, hostile mob that must be continually crushed, lest it overwhelm the 1% like swarming rats. The 1% despises the 99%, not only because the 1% are “better,” but because the 99% are “dangerous.” By increasing the gap between themselves and the 99%, they not only feel “superior”; they also assuage their fear. The 99% do the same thing when they vote to crush whoever is below them. They fear they might fall lower.

    Because the 1% consciously see themselves as eternally at war with “the mob,” they have solidarity and class awareness. They form strong loyalty bonds through religious affiliations and old money networks. They belong to the same clubs, sit on the same boards, and send their kids to the same schools. This situation is as much defensive as elitist. Their strength is cohesion. And when two social classes compete, the winner is always the one with the most cohesion.

    “Progressives” in the 99% have no cohesion, because they will not share power. Each clings to his own pet cause, while attacking other progressives who favor different causes. For Rodger and me, our cause is recognition of the role of monetary sovereignty. (I also want public central banks.) For others, they want to tax and punish the 1%. For still others, we don’t have enough gay rights, or women’s rights, or whatever.

    The 99% bicker about “conservative” versus “liberal,” while pretending there are no socioeconomic classes. By contrast the 1% are acutely aware of class, and they act in concerted ways to advance their class interests at the expense of the 99%. The 1% has an authoritarian worldview that lets them take marching orders, unlike the 99%, whose members pick at each other. And so the 99% remain enslaved.


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