Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•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 the rest..
•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.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..
If you haven’t already, I heartily recommend that you see the movie, “The Big Short.”
It is a fundamentally accurate (though somewhat modified for viewer interest) depiction of what was a principal cause of the 2008 Great Recession: Banker criminality abetted by credit agency criminality, aided by political criminality.
Briefly, the movie showed how the major banks knowingly gave mortgages to people who couldn’t repay, then bundled these worthless mortgages into packages to which compliant credit agencies gave AAA ratings, and sold these worthless packages to the banks’ customers.
Why? The profit motive:
–Profit motive: Bank sales people made millions in commissions with each mortgage they sold.
–Profit motive: The credit agencies like S&P and Fitch were paid millions by the banks to provide AAA ratings for worthless products.
–Profit motive: Banks made billions by packaging and selling the mortgages to their unsuspecting customers, who lost billions.
–Profit motive: No criminal banker ever was prosecuted by the federal government; the banks bribed the politicians with campaign contributions.
–Profit motive: The bribed politicians have made sure no regulatory agency bothered the principals of these criminal banks, exacting only meaningless “fines.”
–Profit motive: Today, even after the disaster of the Great Recession, the bribed politicians, especially the Republicans, refuse to fund or allow regulatory agencies to interfere with ongoing bank criminality, which continues today.
Millions of Americans lost their homes, their jobs and their lives because of bank criminality. It was the worst financial disaster in history. Yet, you hear scant mention of it in the Republican candidate debates.
They yammer about Benghazi and Emails and terrorism and Bill Clinton’s indiscretions — all of which pale in comparison to the Great Recession — but no one wants to talk about bank criminality
The Republicans have been bribed by the banks not to talk about it. The bribed Obama administration doesn’t want to talk about it. Hillary Clinton doesn’t want to talk about it. Apparently, these bought and paid-for politicians want you to believe nothing really happened — except to the 99%.
The rich did just fine.
Only Bernie Sanders has been talking about it. Only he wants to do something about it.
You know Bernie, that wild-haired guy the bribed politicians and their media lackeys don’t want you to take seriously. He’s not as slick as Trump or as mean-spirited as Cruz or as baby-faced clueless as Rubio.
Your know Bernie, that self-proclaimed “socialist” (He really isn’t), who wants to protect the middle and lower classes by expanding Medicare and Social Security — and breaking up the banks.
Isn’t he awful for caring about the 99%?
My wife asked me, “Can the federal government do a better banking job than the private sector?”
My answer: “Absolutely. For one major reason: No profit motive.
The profit motive was the root of all the evil that caused the Great Recession.
So far, only one politician in this entire nation is willing to renounce the profit motive — just one in the whole country: Bernie Sanders.
That’s why, if given the chance I’ll vote for him.
Anyway, see the movie. “The Big Short”. It’s a great action film. You’ll enjoy it and you’ll learn a lot.
Rodger Malcolm Mitchell
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. 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 Click here
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)
The Ten Steps 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
Recessions begin an average of 2 years after the blue line first dips below zero. There was a dip below zero in 2015. Recessions are cured by a rising red line.
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.