Trust the private banks? Trust the politicians?

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

Mitchell’s laws:
•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..

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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%?

Step #9 of the 10 Steps to Prosperity (see below) reads: Federal ownership of all banks (Click here and here)

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
Monetary Sovereignty

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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.
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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.

Monetary Sovereignty

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.

#MONETARYSOVEREIGNTY

5 thoughts on “Trust the private banks? Trust the politicians?

  1. Bernie Sanders is winning with the one group his rivals can’t sway: voters

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    Six Responses to Bernie Skeptics

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    Donald Trump tells it like it is:

    Trump called for the cessation of all Muslim immigration, based on a survey he cited which said that 25 percent of those polled agreed that “violence against Americans here in the United States was justified as part of the global jihad,” and that 51 percent agreed that “Muslims in America should have the choice of being governed according to Shariah.”

    Utter hogwash. That “poll” was conducted by a virulently anti-Muslim organization, the Center for Security Policy.

    Beyond that, the poll itself was fatally flawed, being only an opt-in online survey with a small sample size of only 600, using a question format (agree/disagree questions) that statistically people have been shown to answer “agree” to, and targeting a population (U.S. Muslims) many of whom are first-generation with limited English proficiency.

    Moreover, the survey participants were U.S. Muslims, meaning their answers, accurate or not, had no bearing on the Muslims Trump was proposing to bar.

    A study from the non-partisan Center for Media Studies in 2013 came to the conclusion that Republicans lie three times more than Democrats.

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    Republican Governor poisons poor children.

    Calls for the resignation of Michigan Gov. Rick Snyder are intensifying in the face of evidence that he allowed 100,000 residents of the city of Flint to continue cooking, drinking and bathing in water known to be contaminated with lead.

    Democratic presidential candidate Bernie Sanders is among those demanding that Snyder leave office.

    “There are no excuses,” Sanders said in a statement released Saturday. “The governor long ago knew about the lead in Flint’s water. He did nothing. As a result, hundreds of children were poisoned. Thousands may have been exposed to potential brain damage from lead. Gov. Snyder should resign.”

    “[F]amilies will suffer from lead poisoning for the rest of their lives,” Sanders continued. “Children in Flint will be plagued with brain damage and other health problems.”

    The New York Times reports:

    In the last three weeks, a panel appointed by Mr. Snyder reported that state officials had for months wrongly brushed aside complaints about the contamination.

    Documentary filmmaker and Flint native Michael Moore has criticized Snyder’s decision to source water from the Flint River:

    It is now estimated that to repair the damaged water system in Flint, it will cost at least $1.5 billion.

    Someone had suggested to the governor, before he did this, that the river contained many toxins. He ignored that.

    One of his own people said maybe they should add a safe-to-drink “corrosive protector” to the water so that the toxins in said water wouldn’t leach the lead off the aging water pipe infrastructure and into the drinking water.

    “How much will that cost?” asked the governor’s office.

    “Just $100 a day for only 3 months,” the governor was told.

    Oh, $100 a day?! THAT’S TOO MUCH!, came the reply from the governor. Don’t worry about the lead. “Lead is a seasonal thing,” he would later explain to the public.

    “Heck, there’s lead in everything!” Just let them drink the river water.

    The party of the rich exists because the middle and the poor vote for it. So children die.

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    1. The city of Flint Michigan is sending shut-off notices to residents who are behind on paying for poisoned water that caused irreversible brain damage in tens of thousands of kids (plus ten adult deaths from Legionnaire’s disease). The city sent out 1,800 notices in November 2015 alone.

      Yesterday Obama declared a “state of emergency” in Flint, but Obama refused to declare it a “major disaster,” since the major disaster was man-made (and because most of the victims are poor and black).

      This means that the federal government will create only $5 million to help Flint.

      The federal government could create much more money if the major disaster was declared a “major disaster” – but then Obama would (supposedly) have to ask Congress for the money.

      Politicians (especially Republicans) usually say no to disaster relief, claiming that the U.S. government is “broke” — but they demand money when their own district has a disaster, or when Wall Street wants another bailout, or when weapons makers want more trillions.

      Why do politicians do this? Because Congress is a game of horse trading. I will not vote to create a billion dollars for your district, unless you vote to create a billion dollars for my district (all of it out of thin air).

      Until you do, I will falsely claim that the U.S. government is “broke.” (And the peasants will believe me.)

      Anyway, since Flint has a “state of emergency,” FEMA will cover only 75% of the costs for water bottles, filters, filter cartridges and other items for residents, capped at $5 million.

      “Filter cartridges” are useless, since lead dissolves in water like salt or sugar. Filters will not remove it. Reverse osmosis might remove it. (I say MIGHT.)

      Gov. Rick Snyder is a true Republican. In 2014 he ordered his emergency manager for Detroit to cut off water services for thousands of city residents said to be in arrears on their water bills. But Snyder did not cut off water services for Detroit’s largest commercial water consumers, even though they owed millions of dollars in unpaid charges.

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      Speaking of water disasters, here’s the next one waiting to happen…

      Across the Straits of Mackinac at the top of Lake Michigan, two 20-inch-diameter pipelines transport 23 million gallons per day of oil and natural gas liquids from Superior, Wisconsin to refineries in Sarnia, Canada (which is 45 miles from Flint Michigan). The two pipelines are owned by Canadian company Enbridge, Inc. They are 63 years old, and are decrepit. In one section they run across the bottom of the Straits of Mackinac on the lake floor, 270 feet deep. Sooner or later they will rupture from corrosion, caused by acidic secretions from zebra mussels, which invaded the Great Lakes in the 1980s, and now completely cover the underwater pipeline. (Current laws would not allow such a pipeline to be built today.) The resulting disaster will dwarf the Deepwater Horizon oil spill of mid-2010.

      In 1999 that same Enbridge pipeline spilled 220,000 gallons of oil and natural gas liquids in Michigan. In July 2010 a different Enbridge pipeline spilled 843,000 gallons of oil into the Kalamazoo River in Michigan. That was the USA’s largest ever land-based oil spill. Much of that oil is still there today.

      The Great Lakes are home to 20 percent of the fresh surface water on the planet. When Enbridge ruins the lakes, the victims will not be only poor blacks. 30 million people depend on the Great Lakes for their water.

      Gov. Snyder has the legal authority to shut down the Enbridge pipeline, but he refuses to do so, just as Snyder refused to do anything about Flint for almost a year and a half.

      Democrats in the Michigan legislature have aimed bills at the pipeline, but Republicans always kill them.

      BY THE WAY, the Enbridge pipeline (“Line 5”) is 1,098 miles long, but less than 5 miles of it runs along the floor of the Straits of Mackinac. Enbridge could re-route that section for safety, but it refuses to do so. In fact, there are already pipelines on shore that could carry the oil.

      Enbridge Energy of Canada operates the largest crude oil and liquids pipeline system in the world. Enbridge has spilled oil 1,068 times in the USA between 1999 and 2013, totaling 7.4 million gallons.

      Enbridge refuses to disclose its inspection data for the Straits of Mackinac pipelines, which are coated with an obsolete coal tar enamel that has failed elsewhere, including in Saskatchewan in 2009.

      The 90-second video below shows how the oil will spread when (not if) the Enbridge pipeline bursts…

      Like

  2. Saw it and couldn’t help but notice that none of what the film showed has changed, except that now it is student debt being packaged. You know what they say about learning from history …

    Like

    1. Bank executives have learned from history. They have learned that crooked bankers will not be punished by crooked politicians.

      The public, however, has learned nothing, so still will vote to elect the politicians who cut bank regulation under the guise of “less government.”.

      Like

  3. Just can’t wait for this “civilization” to crash. Until it does the vested interests and their patsies in legislatures won’t change. Only a big fright will achieve that! It’s due but overdue.

    Like

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