The U.S. federal government is Monetarily Sovereign. That means it has the infinite ability to create its own sovereign currency, the U.S. dollar.
In the 1790’s the government created from thin air, a group of laws that in turn, created from thin air, an arbitrary number of U.S. dollars, and gave them an arbitrary value.
Subsequently, it has created trillions of U.S. dollars (arbitrarily), and often has changed their value.
In short, the U.S. government can do whatever it wishes with the U.S. dollar and never unwillingly can run short of them. U.S. dollars.
Further, the U.S. government has absolute control over the value of a dollar, thus having absolute control over inflation.
So why this:
Our COVID test prices vs. the world’s
Why not free tests?
Rodger Malcolm Mitchell
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.
5 thoughts on “The Federal Government Has Infinite $. So why this?”
You can be sure our tax masochist neighbors to the north are “paying” for those tests through federal taxes more burdensome then our own FICA.
A while back I tried explaining monetary sovereignty to someone I know in Ontario and it went right over their head… same insane fear of China somehow crashing the Canadian dollar through dumping bonds that are really nothing more than time deposits at the Bank of Canada in Ottawa. https://thereview.ca/2019/02/01/governments-did-not-always-have-to-pay-interest-when-borrowing-from-bank-of-canada/ Maybe you could send some of your explanatory letters to jornos and politicos up there.
https://www.investopedia.com/ask/answers/102714/what-are-differences-between-canada-pension-plans-cpp-and-social-security-benefits.asp Today USD $1.00 = CAD $1.26
For 2022, the maximum monthly amount you could receive as a new recipient starting the pension at age 65 is $1,253.59 [USD $994.91]. The average monthly amount paid for a new benefits retirement pension (at age 65) in October 2021 is $702.77 [USD $557.75]. https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-benefit/amount.html Seems stingy for a monetary sovereign to hand their people such a pathetic amount at 65.
In the US only employers pay for unemployment. Not so to the North: Canada’s standard Employment Insurance (EI) tax rates are to remain unchanged at 1.58% for employees and 2.212% for employers in 2022, the country’s Employment Insurance Commission said Sept. 14 in a news release. The EI tax rate for employers is 1.4 times the applicable EI tax rate assessed on employees. They derive great tax masochist pleasure by needlessly deleting those dollars from their own economy. https://www.canada.ca/en/employment-social-development/programs/ei/ei-list/ei-employers/2022-maximum-insurable-earnings.html
You should edumacate this guy: http://thetinytax.com/ [read too much Milton Friedman] about Monetary Sovereignty. He is some autopsy pathologist in Houston who is maybe seven or eight years younger then you. https://en.wiktionary.org/wiki/edumacation
His little write up about is an automated tiny tax on all deposits across the board is useful for a thought experiment on how to actually narrow the gap in a equitable manner [but not for the stuff he thinks it is needed for since the federal government has infinite dollars].
Thanks. I decided to drop him a note, though I assume he either will not read it or understand it.
https://wisc.academia.edu/EdgarFeige/Transaction-Tax-and-Tax-Reform I remember reading a write-up on this in the Wisconsin State Journal newspaper about twenty years ago. Anyway the tax evasion and black market transaction specialist of the eighties and nineties at UW-Madison Edgar Feige is the point of origin for that Dr. Hermann’s auto-deposit tax. https://www.c-span.org/video/?c4648938/user-clip-transaction-tax