The U.S. federal government created the very first U.S. laws from thin air, and some of those laws created the very first U.S. dollars, also from thin air.
Ever since then, the government has continued to create laws, and some of those laws allow the government to continue creating more dollars.
Thus, the U.S. government has given itself the power to create an infinite supply of U.S. laws and an infinite supply of U.S. dollars. The power is called “Monetary Sovereignty.”
You do not have this power. Nor does your city, county, state, or business. You all are monetarily non-sovereign.
While the federal government can’t unintentionally run short of dollars, you can, as can even the wealthiest people or businesses on earth.
So would you or anyone elect to send your precious dollars to the federal government?
Of course, you wouldn’t, because you are too wise to throw your money away.
The only reason why you would send money to the federal government is to obey laws requiring you to do so.
Otherwise, you would be a fool to send dollars to an entity that has infinite dollars.
Sadly, thousands, perhaps millions, of well-meaning Americans do just that.
Recently, reader “Mark” mentioned this government website:
Gift Contributions to Reduce Debt Held by the Public
The Bureau of the Fiscal Service may accept gifts donated to the United States Government to reduce debt held by the public. Acting for the Secretary of the Treasury, Fiscal Service may accept a gift of:
Money, only on the condition that it be used to reduce debt held by the public.
An outstanding government obligation, only on the condition that the obligation be cashed and the proceeds used to reduce debt held by the public.
Other intangible personal property only on the condition that the property is sold and the proceeds used to reduce the public debt.
Gifts to reduce debt held by the public may be inter vivos (from a living person) gifts or testamentary bequests (in a person’s will).
The fiscal year to date information includes total gifts received for the months of October through September. Monthly data is not available for the years 1996 and 1997.
Read about how to make a contribution to reduce the debt.
2021 $1,268,950.35 2020 $1,615,198.54 2019 $4,991,215.70 2018 $775,654.63
2017 $2,611,428.24 2016 $2,718,154.76 2015 $3,864,661.38 2014 $5,103,452.84
2013 $1,763,754.56 2012 $7,749,618.27 2011 $3,277,369.23 2010 $2,840,466.75
2009 3,063,057.05 2008 2,189,358.89 2007 2,624,862.42 2006 1,646,209.41
2005 1,455,541.65 2004 664,911.25 2003 1,277,423.40 2002 744,675.06
2001 1,645,082.28 2000 1,868,891.93 1999 1,457,510.59 1998 1,535,541.02
*Gifts to Reduce Debt Held by the Public have been reported in the footnotes of the Monthly Statement of the Public Debt since February 1988. Visit the MSPD to view historical information on the debt including fiscal year to date tables through and including 1987.
If a private citizen had written the above pack of lies to solicit money, a sheriff would be banging on his door. But who will arrest Timothy (Tim) E. Gribben, commissioner of the U.S. Department of the Treasury’s Bureau of the Fiscal Service (Fiscal Service)?
If you go to his department’s website, you will see lies that would shame even Donald Trump. For instance:
. . . gifts donated to the United States Government to reduce debt held by the public.
What a con job. First, there is no reason to reduce the debt held by the public. This so-called “debt” is nothing more than deposits into T-security accounts held by the Federal Reserve Bank.
There is no reason to reduce these deposits, and the federal government has the unlimited ability to increase or constrain them.
Further, the government pays off the deposits every day upon maturity, simply by returning the money in the accounts. This is no burden whatsoever on the government or on taxpayers, as no tax dollars are used.
Second, the dollars you send to the federal government are destroyed upon receipt. The dollars you send come from the M1 money supply measure, but when they are received they immediately become part of no money supply measure.
Because the government has the infinite ability to create infinite dollars, there is no point in trying to measure or add to the government’s money supply. It is worse than hoping to raise an ocean level by pouring a bottle of water into the ocean because even an ocean isn’t infinte.
Infinity plus any number, still is infinity, which is why voluntarily sending dollars to the federal government is infinitely foolish.
∞ + 1 = ∞
“We are guided by our commitment to integrity, collaboration, accountability, learning, and excellence in our dealings with each other and with those we support and serve.”
Oh, puleeze. When someone brags about his integrity, collaboration, accountability, learning, and excellence, you can be sure he has none of those virtues, especially when:
“We . . . conducted 472 auctions to fund critical government operations and activities.”
His auctions do nothing to fund government operations and activities. Like federal tax dollars, auction dollars are destroyed upon receipt. The transition from being part of the M1 money supply to being part of no money supply effectively destroys dollars.
“We collected over $4.91 trillion in federal revenue of which 99.6% was settled electronically.”
Whether settled electronically or with an abacus, it was $4.91 trillion dollars removed from the U.S. private sector (aka “the economy”) or from some other nation’s private sector — and destroyed.
. . . processed nearly 202.2 million transactions valued at over $3.56 trillion in tax revenue.
He destroyed $3.56 trillion that formerly was in the economy.
“We collected $5.04 billion in delinquent debt.”
And gave that $5.04 billion to an entity that already has an unlimited supply of dollars.
Treasury Offset Program collected $271.76 million of delinquent child support collections and $294.8 million of State Unemployment Insurance. The Centralized Receivables Service processed 805,980 cases and collected over $79.1 million.
All of the above-mentioned dollars were taken from the private sector, and destroyed.
“We finance government operations by offering Treasury securities through reliable, accurate, flexible, and electronic systems.”
No, you do not “finance government operations by offering Treasury securities.” The government finances its own operations by creating dollars, ad hoc.
In summary, take pity on the well-meaning but ignorant folks who voluntarily pour their precious dollars into an infinite, unmeasurable ocean.
But take even more pity on those of us who are forced, by law, to do the same, unnecessary thing: Paying FICA.
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.