- Unlike state/local governments and euro governments, U.S. federal government uniquely is Monetarily Sovereign.
- It cannot unintentionally run short of its sovereign currency, the U.S. dollar. It has the infinite ability to create dollars simply by pressing computer keys. (Alan Greenspan: “There is nothing to prevent the federal government from creating as much money as it wants and paying it to somebody.”}
- The federal government creates dollars by spending. Each dollar paid to a federal creditor is newly created. (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.”)
- The federal government does not spend tax dollars. Even if the government did not collect a penny in taxes, it could continue spending forever by creating new dollars. (Alan Greenspan: “The United States can pay any debt it has because we can always print the money to do that.” {
- The purpose of federal taxes is not to fund federal spending but to control the economy by taxing what it wishes to discourage and giving tax breaks to what it wishes to encourage.
- Gap Psychology describes the human desire to distance oneself from those below on any social scale and to come closer to those above.
For the federal government, no finances are “unsustainable.” The government can “sustain” (i.e., pay for) any amount of spending. (Statement from the St. Louis Fed: “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 credit markets to remain operational.”Medicare politics are on a crash course with reality, By Caitlin Owens
There’s an inconvenient truth underneath the politics of Medicare — its finances are simply unsustainable.
Medicare is a federal agency. Like the federal government itself, no federal agency ever is unable to pay its obligations unless Congress and the President wish it. (Quote from Ben Bernanke when he was on 60 Minutes: Scott Pelley: Is that tax money that the Fed is spending? Ben Bernanke: It’s not tax money… We simply use the computer to mark up the size of the account.)Why it matters: Medicare is one of the largest line items in the U.S. budget, and as the population ages, it’s expected to only get more expensive.
By the numbers: Medicare spending is expected to more than double by 2033 — climbing to $1.6 trillion, or over 4% of the entire U.S. economy, according to an estimate released yesterday by the Congressional Budget Office.
And the program’s trustees have said the fund that pays for Medicare’s hospital coverage will soon reach a dangerous tipping point — paying out more than it takes in. On that trajectory, it eventually wouldn’t be able to pay for the coverage it’s supposed to provide.
You just read the three bad options the politicians want you to believe. There is a fourth option, the excellent option: The federal government should create the dollars to fund Medicare. And not just fund Medicare, but fund Medicare coverage for every man, woman, and child in America. Financially, there is no reason not to.Reality check: Lawmakers really only have three options to stop that from happening: raise taxes, cut benefits, or cut payments to the healthcare industry.
Right. The government can tax its way into prosperity. Tax increases take dollars out of the pockets of taxpayers and out of the economy, and so, are recessive.Republicans are against tax increases on principle and have gotten a lot of political mileage from attacking them.
Right. Benefit decreases also take dollars out of taxpayers’ pockets, especially poorer taxpayers.Democrats are against benefit cuts on principle and have gotten a lot of political mileage from attacking them.
Right. Reducing payments to doctors, hospitals, and pharma companies will reduce the number and quality of doctors, hospitals, and pharma companies. America’s health will decline as America’s healthcare declines.And although some Republicans are hinting that they might be open to reducing payments to doctors, hospitals, insurers, or pharma companies, the party’s campaign apparatus is currently hammering the Biden administration for proposals to do exactly that.
No, that is not the bottom line. The bottom line is related to Gap Psychology. The bottom line begins with the fact that the rich run America. They bribe the politicians via campaign contributions and promises of lucrative employment. They bribe the media via ownership and advertising revenues. And the rich bribe the economists via university contributions and promises of employment in think tanks. In return, the rich receive favorable tax loopholes not available to the rest of us. And they rarely are audited by the IRS. It is the reason why the GOP does not want to fund additional tax auditors. The rich are rich because of the income/wealth/power Gap. (Were it not for the Gap, we all would be the same. No one would be rich.) The wider the Gap, the richer are the rich. So, the rich do everything in their power to widen the Gap. One way to do this is to damage Medicare by falsely claiming it is “unsustainable” and unaffordable. Here is how the rich widen the Gap and make themselves richer:The bottom line: Without intervention, Medicare’s financial problems will come to a head soon enough. And then it’ll be everyone’s problem.
- They falsely claim the federal debt and deficit are “unsustainable.”
- They falsely claim Medicare is “unsustainable.”
- They falsely claim Social Security is “unsustainable.”
- They falsely claim federal support for the poor and middle classes is “Socialism.” (i.e., governmental ownership and administration of the means of production and distribution of goods, not federal spending.)
- They falsely claim federal spending causes inflations. (Inflations are caused by shortages. Today’s inflation is caused by shortages of oil and other COVID related shortages)
- The purpose of these false claims is to indoctrinate you and to get your compliance with their Gap widening programs.
- Federal spending is unaffordable and unsustainable.
- Federal spending is socialism.
- The minorities are lazy takers who will not work if given financial support.
- The rich are superior beings who deserve the special treatment they receive.
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The Sole Purpose of Government Is to Improve and Protect the Lives of the People.
MONETARY SOVEREIGNTY
And then they died.
But for the whales, nature’s experiment with size ended, to be replaced by the experiment with intelligence, which featured the mammals.
While many dinosaurs were warm blooded, and had large brains, both facilitating intelligence, our hands and upright stature seem to have brought us to the apex of intelligence.
So far, for the experiment continues.
The big news in intelligence is artificial intelligence (AI) as demonstrated in chatbots.
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#Monetary Sovereignty - Mitchell 