The single biggest reason America is in deep trouble.

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America is in trouble. We have way too much poverty, crime, and murder. There is far too large a Gap between the rich and the rest. Our infrastructure is crumbling. Our schools, grades K-12 are shameful. Our healthcare system is inadequate. We no longer lead the world in most measures except perhaps in the number of nuclear weapons we can fire. We are a long, long way from being “the greatest country in the world,” as we love to boast. We face treason on a national scale. And the single biggest reason for our numerous failures is exemplified by the following article:
Manchin draws red line in infrastructure talks Jordain Carney Sen. Joe Manchin (D-W.Va.) warned on Tuesday that he wants both a bipartisan infrastructure bill and a separate Democratic-only bill to be fully paid for.
“I think everything should be paid for. We’ve put enough free money out,” Manchin told reporters.
Actually, the U.S. federal government always has  “paid for” everything it buys. Unlike Donald Trump’s creditors, no federal government creditors ever are cheated. But, of course, that is not what Manchin means. He means that the government should collect as many dollars in taxes as it spends — i.e. a balanced budget — which for the U.S. government, a spectacularly damaging requirement. Either Manchin is just pandering to his right-wing, West Virginia voters, who are clueless about federal finance, or he himself is clueless about federal finance.  Or both.
The federal government is unlike you, me, and all state/local governments. It uniquely is Monetarily Sovereign, meaning it has the unlimited ability to create its sovereign currency, the U.S. dollar. It cannot run short of dollars. Every time the federal government runs a surplus, or a balanced budget, we have recessions and depressions:

U.S. depressions tend to come on the heels of federal surpluses.

1804-1812: U. S. Federal Debt reduced 48%. Depression began 1807. 1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819. 1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837. 1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857. 1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873. 1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893. 1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929. 1997-2001: U. S. Federal Debt reduced 15%. Recession began 2001.

We have recessions, even when we run deficits that are not large enough:
Recessions (vertical gray bars) tend to occur when federal deficit growth (blue line) declines and are cured when deficit growth increases.
Manchin’s demand, if he sticks to it, could create real problems in Democratic negotiations. The party in a matter of weeks is seeking to exercise a complicated legislative goal of winning Senate approval of both a bipartisan infrastructure measure opposed by many progressives and a budget resolution that will tee up a larger Democratic bill filled with spending priorities. The latter bill will not win any GOP support and will need to pass with just Democratic votes, including Manchin’s.
The GOP will not support any bill that will benefit America, because such bills would make President Biden and the Democrats look good. The GOP’s greatest fear is that America will like what Biden does. They hope for a recession or a depression they can point to. These are “patriots”?
A group of 22 senators, including Manchin, agreed to a framework for a bipartisan infrastructure deal that would spend $1.2 trillion over eight years. But there are concerns among Republicans that the bill isn’t fully paid for, threatening GOP support for it. 
It’s a fake concern, for political purposes. Having already spent $25 trillion that “isn’t paid for” (i.e. via taxing) the federal government easily can pay for this bill, too. The 22 senators know this.
Republican negotiators in the group have warned that the Congressional Budget Office (CBO) could lowball the amount of revenue the proposal will raise. “I know there are some things that we’re relying on as pay-fors that will probably not receive a CBO score but nonetheless are real,” Sen. Mitt Romney (R-Utah) told reporters. Meanwhile, Democrats are trying to agree to a price tag for their larger bill.
The two parties are arguing about how many angels can dance on the head of a pin. It’s all political theater for you, a gigantic lie to keep you from receiving federal benefits. The GOP’s purpose is to widen the Gap between you and the very rich, who run the GOP.
Democrats have yet to agree on a top-line figure. Senate Majority Leader Charles Schumer (D-N.Y.) met with Democrats on the Senate Budget Committee on Monday night but didn’t get an agreement. They’ll meet again on Tuesday night. Senate Budget Committee Chairman Bernie Sanders (I-Vt.) has thrown out $6 trillion, paying for roughly half, as where he would like to go on the Democratic-only bill. Sen. Mark Warner (D-Va.), a member of the panel, has suggested he’s closer to roughly $4 trillion.
All federal spending always is fully “paid for.” The liars would like you to forget that last year alone, the government spent more than $4 trillion in stimulus money that supposedly wasn’t “paid for.” And the GOP specifically would like you to forget their Trump tax cut for the rich, that wasn’t “paid for.”
Manchin has acknowledged that a Democratic-only bill is “inevitable” but hasn’t committed to a specific top-line figure. He’s warned, though, that he doesn’t want to go as high as Sanders. “I want to make sure we pay for it. I do not want to add more debt on. So if that’s $1 trillion or $1.5 trillion or $2 trillion, whatever that comes out to be over a 10 year period, that’s what I would be voting for,” Manchin told ABC News last month.
Sadly, Manchin either is lying or doesn’t know what he is talking about. That horrible thing called “debt” isn’t debt at all. It’s deposits in T-security accounts. How can an entity having the unlimited ability to create money, also have a worrying “debt”? It mathematically and logically is impossible. If you owned a legal, money-printing press, would you ever be concerned about your “debt”? It’s all a giant charade to keep you from receiving federal benefits. Next, we’ll hear the lie that Social Security has run out of money, so you’ll receive less in benefits or pay more in FICA taxes. Then will come the lie that Medicare is broke, so it will have to reduce your benefits by increasing the deductible.

Traitor: A person who betrays a friend, country, principle, etc. Treason: The crime of betraying one’s country

I suggest that no traitor in American history has done more damage to America than the current Republican Party, led by Donald Trump. These people care nothing about America and are concerned only with pleasing the rich, collecting bribes, and winning elections. The GOP has abided gangs to attack the Capital, conspiracy theorists like Qanon, and endless liars like Donald Trump, all to gain power for themselves. The GOP has denied global warming, the seriousness of COVID-19, and the need for vaccination and face masks. As a direct result, Americans have died and continue to die. The GOP’s current efforts to restrict voting rights under the subterfuge of eliminating (non-existent) fraud, is yet another step in the GOP’s treason. Think of how the dictatorships around the world began, and you will think of today’s Republicans. Rodger Malcolm Mitchell Monetary Sovereignty Twitter: @rodgermitchell Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell

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THE SOLE PURPOSE OF GOVERNMENT IS TO IMPROVE AND PROTECT THE LIVES OF THE PEOPLE.

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. 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

Published by Rodger Malcolm Mitchell

MBA Northwestern, business turnaround expert, economist

Published

4 thoughts on “The single biggest reason America is in deep trouble.”

  4. Debt is unreal. It doesn’t exist naturally, nor does the legal concept we call money. Nature’s money is electrical/atomic energy transactions that always and only exactly balance mathematically. How do you pound that fact into the rulers before we perish? They most certainly don’t want to hear about monetary theory let alone try to understand scientific principles that have nothing to do with money and everything to do with the real world.

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