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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.
●The single most important problem in economics is the gap between rich and poor.
●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.
Because the entire Republican platform is shaped by, and skewed for, the rich (the 1%), those middle- and lower-income folk (the “99%”) who vote Tea/Libertarian/Republican are #1 on the “I-know-nothing-about-economics” list in America.
But a close #2 on that list are those people who wish to return to a gold standard. They believe, based on zero evidence, that somehow gold prevents recessions, depressions, inflations, stagflations and even tribulations.
Sadly, gold standards have given the world all of the above-mentioned maladies.
Though gold is pretty in the eyes of some, and has been used as money collateral for centuries, it also is heavy, has little use, varies wildly in price, is expensive to store, ship and insure, and pays no interest or dividend. And no power guarantees its acceptance.
The great majority of “gold bugs” are not exactly disinterested parties. They are people and companies whose income relies on the buying and selling of gold to the suck . . . er, uh . . . investors who believe the “safety” myth of gold vs. the “danger” of so-called “fiat” money, i.e. “paper” money.
Actually, all money is “fiat” in that it is based on some organization’s fiat, and no money is paper. The printed paper only represents ownership of money, just as a printed car title only represents ownership of a car. A dollar bill is just a title to a dollar.
All the above factors lead me to recommend that we return to a cowry standard.
In my opinion, cowries are much more beautiful than gold. They also have a smooth, delightful surface, much more pleasant to handle than gold.
The “Map” Cowry
Per Wikipedia” (Like gold),the shells of cowries (especially Monetaria moneta — the “money” cowry) were used for centuries as a currency in Africa. Huge amounts of Maldivian cowries were introduced into Africa by western nations during the period of slave trade.
The Ghanaian unit of currency known as the Ghanaian cedi was named after cowry shells. Starting over three thousand years ago, cowry shells, or copies of the shells, were used as Chinese currency.
They were also used as means of exchange in India.
The Ojibway aboriginal people in North America use cowry shells, which are called sacred Miigis Shells or whiteshells in Midewiwin ceremonies, and the Whiteshell Provincial Park in Manitoba, Canada is named after this type of shell.
Finding the cowry shells so far inland could indicate the previous use of them by an earlier tribe or group in the area, who may have obtained them through an extensive trade network in the ancient past. Petroforms in the Whiteshell Provincial Park may be as old as 8,000 years.
Cowries have a long and honored history. They have been used for centuries, require shipping and storage, do not pay interest or dividends and essentially are useless — just like gold.
Currently, there are no crooked cowry dealers to sell cowries to unsuspecting rubes, who can be counted upon to believe stories of cowry safety. But dealers will come. Depend on it.
Finally, if you so love the color, you simply cannot bring yourself to divorce from useless gold, may I suggest the equally useless “golden cowrie” (Lyncina aurantium).
The golden cowry gives you the best of both worlds: The color of gold plus the beauty and handling pleasure of a cowry.
If we return to a cowry standard, I will be happy to sell some to you — plus my exorbitant commission, of course.
As with gold, commerce will require that all nations print “cowry bills,” which cowry bugs will denounce as “fiat money,” not understanding what the word “fiat” means. (Some people are impossible to please.)
Anyway, my cowry sales motto: If you like gold, you’ll love the cowry.
And then you may like that bridge in Brooklyn.
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.