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●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
●Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●Austerity is the government’s method for widening the gap between rich and poor.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Everything in economics devolves to motive, and the motive is the Gap.
Well, I haven’t yet heard from Stephanie Kelton, who I pray is setting straight the Senate Budget Committee, of which she is Chief Economist.
But, Maya MacGuineas is not so reticent. Here is her latest nonsense:
Debt Limit Returns After $1 Trillion of New Borrowing
March 12, 2015
On Monday morning, the debt limit will return, capping the total amount of federal borrowing. Recent estimates suggest that so-called “extraordinary measures” will sustain continued borrowing into the fall, before the debt ceiling is breached.
The following is a statement by Maya MacGuineas, president of the Committee for a Responsible Federal Budget.
“Politicians complain about raising the debt limit but put far too little effort in working to reduce the debt. Since the last time we suspended the debt limit, no effort has been made to put the debt on a more sustainable path.
“Instead, policymakers have actually increased deficits by enacting new spending and tax breaks to the tune of $100 billion.
“Of course, we must not breach or even threaten to breach the debt limit – doing so could have catastrophic results for the U.S. and world economy.
She must be referring to the “catastrophic results” that NEVER have occurred as a result of all past the “breaches” of the debt limit.
For those who do not understand federal financing: The federal debt is nothing more than the total of T-security accounts held at the Federal Reserve Bank.
These accounts essentially are bank savings accounts.
So why are they misleadingly called “debt.” Because all bank deposits are debts of banks. So strictly speaking, the so-called federal debt is nothing more than debt of the Federal Reserve Bank, not of the federal government.
How do banks “pay off” their savings account deposits (i.e. “debt”)? They simply transfer the dollars in those accounts to holders’ checking accounts.
So when Maya tells you the federal debt is “unsustainable,” she really is saying the Federal Reserve Bank somehow will be unable to transfer dollars from one bank account to another.
No, really. That’s what she’s saying. And that is what has become known as the Big Lie.
We assume that Maya neither is stupid nor ignorant of the facts. We assume she knows the truth, which makes her BS even more appalling. Seemingly, she has so little regard for Americans, that she is willing to devote her life to spreading harmful ideas.
There is a word for someone who intentionally harms their own country. I’ll leave it to you, to fill in the blank.
Meanwhile, the Big Lie. continues:
“On Friday, the Committee for a Responsible Federal Budget will release a number of options to reform the debt limit so to make it a more effective tool to promote fiscal responsibility while reducing the risk of default.
She is trying to make you believe there is a “risk” that the United States federal government or the Federal Reserve Bank will default. Utter nonsense!
The only thing that could make the U.S. government default on its debts is if enough Congress people and the President follow Maya’s recommendations.
And there is nothing that could make the FRB default on its ability to transfer dollars from one bank account to another.
“Our leaders need a plan that will leave this country better off for future generations, not a new, clever trick to avoid making or recognizing the hard choices.”
Oh sure, she’s so-o-o-o-o very concerned about future generations that she wants to increase taxes and cut Social Security, Medicare, aids to education, aids to the poor, Research and Development, while increasing pollution, climate change and the destruction of our environment.
Our future generations surely will suffer bleak lives if “Mayaisms” are followed.
She really should be ashamed.
But right-wing dollars seem to have soothed her conscience.
Rodger Malcolm Mitchell
The Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Federally funded, free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually. (Refer to this.)
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
Initiating The Ten Steps sequentially will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt
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.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.
THE RECESSION CLOCK
Vertical gray bars mark recessions.
As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.