Was that headline too subtle? Was I able to conceal my true feelings?
Let’s be clear: The people who claim that the federal government is running short of dollars fall into just two categories:
- Those who are ignorant about federal finances, or
- The abovementioned dirty, rotten, stinking liars, who are trying to steal your money.
For instance, take my favorite nomination for the title, “dirty rotten, stinking liars,” whom I simply cannot believe are ignorant about federal finances, so it must be deliberate, the Committee for a Responsible Federal Budget (CRFB):
Today, the Social Security and Medicare Trustees released their annual reports on the state of the trust funds.
The Trustees find that Medicare’s Hospital Insurance trust fund will be insolvent by 2026, Social Security’s Old-Age and Survivors Insurance trust fund will run out of reserves by 2033, Social Security’s Disability Insurance trust fund will be depleted by 2057, and the theoretically combined Social Security trust funds will be insolvent by 2034.
Upon insolvency, Social Security will be reduced across-the-board by 22 percent under current law.
There, you just have read the Big Lie, that dirty, rotten, stinking Big Lie. If you remember just one thing from this post, or indeed, from this entire blog, remember this:
It is impossible for the Monetarily Sovereign U.S. government unintentionally to run short of its own sovereign currency, the U.S. dollar.
Why? Because the federal government has the infinite ability to create its own sovereign currency, at will. No limits.
What if the federal government stopped collecting taxes? It still would be impossible for the government unintentionally to run short of dollars.
What if China cashed in all its T-bills, T-bonds, and T-notes? Still impossible.
What if no one on earth wanted to buy T-securities? Still impossible.
What if the federal deficit increased 500% in one month? Still impossible.
What if the cost of Social Security payments tripled next year? Still impossible.
What if the cost of Medicare quintupled next year? Still impossible.
The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:
13 years – that’s how long seniors have before Social Security and Medicare run out of reserves. We can’t promise full benefits to today’s retirees, let alone our kids and grandkids.
Not only is this year’s outlook than in last year’s report, but we’ve lost yet another year from inaction. As the Trustees explain, we should act sooner rather than later to restore solvency to these vital programs.
Acting today, we could fix Social Security with a 27 percent tax increase or 21 percent benefit reduction. If we wait until 2034, those adjustments will have to be about a quarter larger.
And there would be little opportunity to phase in changes or give workers the warning they deserve.
Either Maya is ignorant about federal financing or she is lying, and by now, I suspect it is the latter. I suspect that she is one of the many dirty, rotten, stinking liars promulgating the Big Lie.
Maya, plus the so-called “trustees” of the non-existent, phony “trust funds,” are ignorant or lying through their teeth.
Because the U.S. federal government cannot run short of dollars and become insolvent, it is 100% impossible for any agency of the federal government to run short of dollars unless that is what Congress and the President intend.
That’s right folks. No matter what the dirty, rotten, stinking liars may tell you, Social Security and Medicare, being agencies of the federal government, cannot run short of dollars unless that is what Congress and the President want.
Even if the FICA, which counter to common belief, does not fund Social Security or Medicare — even if the FICA tax were completely eliminated (which it should be), Social Security and Medicare could continue paying benefits — even double or triple benefits — forever.
And, that blanket truth includes not only Social Security and Medicare. We’re talking about every federal agency, from the (alphabetically) AbilityOne Commission to the Woodrow Wilson International Center for Scholars. Not one of them can run short of dollars unless that becomes the intent of Congress and the President.
I cannot believe that after all these years, the CRFB and the “trustees” of the non-existent “trust funds” aren’t aware of this. So, they all must be dirty, rotten, stinking liars. I can’t think of any, other alternatives. Can you?
Why would they lie? Because the very rich, who run America, bribe the information sources to lie. They bribe the media via ownership and advertising dollars. They bribe the university economists via contributions to universities and promises of lucrative “think tank” employment. And they bribe the politicians via political contributions and promises of “no-work” but lucrative lobbying employment.
Why do the rich-who-run-America want to promulgate the Big Lie and federal agencies can become insolvent? Because they want to widen the Gap between the rich and the rest, and the agencies the rich talk about are the very ones that most help us non-rich folks.
It is the Gap that makes the rich rich. Without the Gap, no one would be rich; we all would be the same. And the wider the Gap, the richer are the rich.
It’s not just the CRFB and the “trustees” of the non-existent “trusts” that promulgate the “Big Lie.”
From Axios Debates over tax increases, which lurked behind the scenes for most of the year, will burst into public this fall as President Biden’s $3.5 trillion infrastructure plan moves toward final passage.
Why it matters: Biden promised new revenue to pay for historic spending increases in his second, “soft” infrastructure package. He needs tax increases to pick up votes from Joe Manchin (D-W.Va.) in the Senate and a handful of House centrists, who are concerned about adding even more to the national debt.
One solution currently under discussion would be to raise the capital gains rate from 20% to 28% for high-income earners. A 3.8% Medicare surtax applies to both figures, raising the effective tax rate from 23.8% to 31.8%.
But wait. Clearly, if the federal government can create dollars at will, then federal taxes don’t “pay for” federal spending. The federal government creates dollars to pay for spending.
Thus, the so-called (misnamed) federal “debt” is meaningless, is the debt/GDP (Gross Domestic Product), that mathematically meaningless, but oft-mentioned fraction. It measures nothing, predicts nothing, and provides zero economic guidance.
Evidence that the so-called “debt” is meaningless is provided by the fact, that the federal government destroys all your tax dollars, the instant they are received by the Treasury. It creates brand new dollars, at will, to pay for spending.
Your dollars start out in your checking account as part of the M1 money measure and end up as part of no money measure. They simply disappear.
Why? Because there is no way to measure the amount of money the federal government has, when it has the infinite ability to create money at the touch of a computer key.
The purpose of all those professed concerns about federal “debt” is just to fool the voting rubes. Neither you, nor your grandchildren, ever will pay for the federal debt, partly because it isn’t federal “debt” and partly because your taxes don’t fund federal government spending.
The “debt” is just the total of deposits into T-security accounts, which are paid off, upon maturity, simply by returning the dollars already deposited into those accounts. The whole process is nothing like would you probably think of when you think of debt. It is more like a bank returning the dollars that are stashed in a safe deposit box.
But wait, again. Biden is talking about raising tax rates on the rich. How does that fit with the idea that the rich pay bribes to promulgate the Big Lie.?
Answer: It’s all fake. It’s political theater. The government can raise all the rates it wants, but rates are not dollars. The rich pay politicians to insert key loopholes into the law — loopholes that allow the rich to pay minimal or zero taxes, no matter what the rates are.
And then there is this dirty, rotten, stinking lie from the Chicago Tribune:
9/1/21 Chicago Tribune
Virus adds to Social Security, Medicare woes
The financial impact of the pandemic is straining Social Security and Medicare.
By Ricardo Alonso-Zaldivar and Martin Crutsinger Associated Press
WASHINGTON — Social Security and Medicare, the government’s two biggest benefit programs, remain under intense financial pressure with the retirement of millions of baby boomers and a devastating pandemic putting increased pressures on the two programs’ finances.
A report from the programs’ trustees released Tuesday moved up by one year the date for the depletion of Social Security’s reserves, now projecting that Social Security will be unable to pay full benefits starting in 2034 instead of 2035.
Total BS. Being federal agencies, Social Security and Medicare have as much in “reserve” as Congress and the President want them to have. There is no financial “pressure,” simply because the federal government has infinite ability to create dollars.
Similarly, they have the infinite ability to pay full benefits, if that is what Congress and the President want.
This is just a ploy to squeeze the not-rich and to widen the Gap between the rich and the rest.
Medicare is expected to exhaust its reserves in 2026, the same date as estimated last year.
The report noted that employment, earnings, interest rates and economic growth plummeted in the second quarter of 2020 after the pandemic hit the country.
Ah, the cruelty of the rich. At the very time when the common people are losing their income (and the rich are making fortunes in the rising stock market), the rich are trying to cut the safety nets of Social Security and Medicare. Does it get any more disgusting than that?
When the Social Security trust fund is depleted the government will be able to pay 78% of scheduled benefits, the report said.
Because a reduction in benefits of that magnitude would cause a political uproar, it is likely that Congress would find ways to recover the lost benefits, either by hiking the payroll taxes paid by current workers or by increasing government borrowing to cover the shortfall.
More dirty, rotten, stinking lies. The non-existent “trust fund” cannot be depleted. But Congress’s solution to the non-problem is to raise taxes on the people who least can afford it.
The government simply can create more dollars and misleadingly call it “borrowing” though the issuance of T-securities is nothing at all like borrowing.
T-security accounts merely provide safe depositories for unused dollars, the sole purposes of which are to stabilize the dollar and to control interest rates, not to provide spending dollars for the federal government.
Bottom Line You have been fed a continual stream of dirty rotten, stinking lies, all at the behest of the very rich.
The truth is: The U.S. federal government, being Monetarily Sovereign, has the infinite ability to create its own sovereign currency, the U.S. dollar. The government never, unintentionally, can run short of dollars.
And no, this does not cause inflation, which never is caused by federal deficit spending. All inflations and hyperinflations are caused by the scarcity of one or more key products, most often food and energy. Today’s inflation is caused by a scarcity of oil, computer chips, food, and labor.
Inflation can be cured by additional federal spending to obtain and distribute the scarce items.
No agency of the federal government can run short of dollars, unless that is what Congress and the President want.
The rich, bribe all your sources of information to promulgate the Big Lie, so that federal agencies can tax you more and pay you less, while the politicians wring their hands in fake concern, and pretend they are helpless to prevent it.
They all are a bunch of dirty, rotten, stinking liars, who are conning you out of your money, to benefit the very rich.
If that doesn’t get you angry enough to contact your federal Senators and Representative, nothing will.
Rodger Malcolm Mitchell Monetary Sovereignty Twitter: @rodgermitchell Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell
THE SOLE PURPOSE OF GOVERNMENT IS TO IMPROVE AND PROTECT THE LIVES OF THE PEOPLE.
The most important problems in economics involve:
- Monetary Sovereignty describes money creation and destruction.
- 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:
- Eliminate FICA
- Federally funded Medicare — parts A, B & D, plus long-term care — for everyone
- Social Security for all
- Free education (including post-grad) for everyone
- Salary for attending school
- Eliminate federal taxes on business
- Increase the standard income tax deduction, annually.
- Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.
- Federal ownership of all banks
- 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.