The lesson Qatar teaches America

Consider these facts:

1. The gulf state of Qatar is one of the wealthiest nations on earth: U.S. GDP per capita: $54,541.70; Qatar GDP per capita: $112,531.50

2. Petroleum and natural gas account for more than 70% of total government revenue.

3. The Qatari riyal is pegged to the US dollar at a fixed exchange rate of $1 USD = 3.64 QllR.

4. Qatar spends massive amounts on . . . well, on whatever it wants, for instance:

Qatar Is Air-Conditioning the Outdoors Because of Climate Change
Qatar can afford the absurd costs of outdoor air-conditioning because it has a $320 billion sovereign wealth fund, which invests the country’s immense wealth derived from oil and natural gas reserves into real estate, infrastructure, and corporations around the world.

And:

5. The inflation rate in Qatar in 2019 is running at about only .10% compared with the U.S inflation rate of 1.7%, seventeen times higher

Qatar’s government spends massively and “prints” enormous amounts of money, yet the nation has an infinitesimal inflation rate — How is this possible?

Contrary to popular wisdom, inflations and their big brothers, hyperinflations, are not caused by government spending or by money “printing.”

Inflations are caused by shortages, usually shortages of food or energy .

In fact, government spending actually can cure an inflation if the spending is directed toward curing the shortage (For instance, if an inflation is caused by a shortage of food, the government could buy food, or supplement farming, and give free food to the populace. That instantly would end the inflation.)

The Qatar government is wealthy because it has vast amounts of oil, which it exchanges for vast amounts of U.S. dollars.

But, the U.S. is even wealthier, because being Monetarily Sovereign, the U.S. government has infinite U.S. dollars.

Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”

Alan Greenspan: “Central banks can issue currency, a non-interest-bearing claim on the government, effectively without limit. A government cannot become insolvent with respect to obligations in its own currency.”

St. Louis Federal Reserve: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e.,unable to pay its bills. In this sense, the government is not dependent on borrowing to remain operational.

Qatar’s government has to drill oil and sell oil, to obtain dollars with which to fund its lavish spending on outdoor air conditioning, artificial islands, and other luxuries.

America’s government needs only to press a computer key to create enough dollars to:

–Eliminate the FICA tax,
–Federally fund free Medicare — parts A, B & D, plus long-term care — for everyone,
–Provide Social Security for all,
–Provide free education (including post-grad) for everyone,
–Pay students a salary for attending school,
–Eliminate federal taxes on business,
–Increase the standard income tax deduction, annually,
–And do whatever else it wishes.

Yes, America has the financial power to do all these things, while funding research to eliminate poverty, cure every disease, and fly to Mars, all without causing inflation. 

All we need is the desire and the understanding of what is possible.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell

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The most important problems in economics involve:

1. Monetary Sovereignty describes money creation and destruction.
2. Gap Psychology describes the common desire to distance oneself from those “below” in any socio-economic ranking, and to come nearer those “above.” The socio-economic distance is referred to as “The Gap.”

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

Implementation of Monetary Sovereignty and The Ten Steps To Prosperity can grow the economy and narrow the Gaps:

Ten Steps To Prosperity:

1. Eliminate FICA

2. Federally funded Medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

The Ten Steps will grow the economy and narrow the income/wealth/power Gap between the rich and the rest.

MONETARY SOVEREIGNTY