“How can they believe that?” Inside the minds of the cult.

Most people continually wonder, “How can they believe that.” They hear and read Donald Trump’s 19,000 lies and they shake their heads, “Are these people crazy to believe the things he says?”

Then when Trump does or says something really awful, they say among themselves, “Surely this will lose him followers.” When it doesn’t, they again resort to “How can they believe that?”

I suggest that his followers don’t believe all those nutty things Trump does and says, They didn’t believe or care about Mexico paying for the wall. They didn’t believe he wasn’t trying to threaten Ukraine. They didn’t believe he didn’t grope unwilling women or cheat on his wife with a porn star.

They believe nothing bad ever is his fault, and everything good is his doing.

They just excuse Trump’s lies because the man hates the same people his followers hate.

It’s a cult, and as with all cults, the leader is to be worshipped, and anyone outside the cult is to be reviled. 

And as is common with cults, the leader is a psychopath.

In Trump world, there are no good liberals, no good Democrats, no good anyone who doesn’t worship him. Trump is the GOP version of Jim Jones, and Trump’s followers drink the Kool-Aid every day.

People on the outside of a cult always wonder how the followers can be so “stupid,” “naive,” “ignorant,” and willing to accept any nonsense the cult leader delivers.

Demonstrating this fact, a far-right website called Watchdog News conducted an online “poll” of Americans. The word “poll” is in quotes because the respondents were limited to people who wanted a coin with Donald Trump’s name on it.

Think about that.

Thus, the “poll” doesn’t tell you what America thinks, but it does indicate what Trump’s followers think.

Here are the results, plus some commentary from Watchdog News and from me.

19% of Americans think illegal immigrants SHOULD be able to join a branch of the United States Military.

81% of Americans think illegal immigrants SHOULD NOT be able to join a branch of the United States Military.

For those who think that illegal immigrants should be able to serve in the military, we say that doing the right thing doesn’t change the fact that they are here ILLEGALLY.

There is also something terrifying about arming large groups of illegal immigrants, giving them advanced weapons training, and then releasing them back into the U.S. once they’ve completed their service.

Here we see the results of Trump’s hate-mongering and fear-mongering.

The concept of “arming large groups of illegal immigrants giving them advanced weapons training. . . ” is a result of his false claims that undocumented immigrants are criminals who hate America, and if allowed to be in the military, they will take us over by force.

It’s utter nonsense of course. Immigrants didn’t come here to take over America. They came here to make a better life for themselves and their children.

And by the way, undocumented immigrants are less likely to commit crimes than are the armed white supremacists who Trump excuses.

His message is: “I’m a draft dodger with fake heel spurs, but I respect the military. The guy protesting bigotry against blacks doesn’t respect the military.”

How the method in Donald Trump's madness makes him a political ...
I’m a draft dodger with fake heel spurs. I respect the flag and the military.

96% of Americans think Football Players ARE disrespecting Veterans when protesting during the National Anthem.

4% of Americans think Football Players ARE NOT disrespecting Veterans when protesting during the National Anthem.

The average NFL player makes $2.1 million, according to Forbes.

Active-duty soldiers up to E6 make less than $40K, starting out at less than $20K a year.

Many Americans feel that’s reason enough to resent the methods the NFL players are using to protest. Their actions seem to disrespect the flag as well as the national anthem and by proxy, the military that defends those things and their right to protest.

Pro Football players earn more money than do U.S. soldiers. That irrelevancy is mentioned only to make you biased against football players. It has nothing whatever to do with the question.

And taking a knee has nothing to do with disrespecting soldiers, the flag, or the national anthem.

Similarly, hugging the flag, singing the national anthem, and dodging the draft because of fake “bone spurs,” does not show patriotism or respect for the military.

Some irony there.

What the right does not wish to see is that the protest has to do with the inferior treatment of blacks, particularly by the whites on the right.

Protesting bigotry is far more patriotic than the phony symbolism of flag-hugging. Ironically, the right-wing defends the right to protest, but does not want the protest itself.

White supremacists gather for annual Stormfront summit | Far Right ...
Trump: “Very fine people”

56% of Americans polled think we CAN save America without a civil war.

44% of Americans polled think we CAN NOT save America without a civil war.

We suspect that the majority of people who answer that we CAN NOT avoid a civil war also believe that they are up against an extremely covert and powerful Deep State embedded in every level of media, government, and law enforcement.

The “extremely covert and powerful (and mythical) Deep State” is Trump’s invention of an enemy. Cults always need some sort of enemy to unite against.

But Trump’s so-called “Deep State” is composed entirely of those people who object to lying, science-denying, cruelty to the less fortunate, hate-mongering, replacement of good people with incompetent bootlickers, and abetting criminality.

21% of Americans think that the news media CAN be unbiased in their reporting.

79% of Americans think that the news media CANNOT be unbiased in their reporting.

When most people think of the media, they think of the major media networks. These include ABC, NBC, Fox, and CNN. While we didn’t ask if they trust say, Fox more than NBC, we think that it was important to ask about news media in general.

Speaking of unbiased, Trump tweeted, “Fox News is no longer the same. We miss the great Roger Ailes. You have more anti-Trump people, by far, than ever before. Looking for a new outlet!

“The great Roger Ailes” resigned after allegations of sexual assault were made by 23 women! Sexual assault is not something that bothers Donald Trump.

And it’s interesting to see that Trump believes he owns an “outlet,” while complaining about biased media.

21% of Americans think illegal immigrants and their children SHOULD receive free education.

79% of Americans think illegal immigrants and their children SHOULD NOT receive free education.

Most people believe that the word ‘illegal’ determines how we should treat this matter. If someone is in this country illegally, they should not receive the benefits that legal citizens receive.

The “not legal citizens” is just a convenient excuse. Millions of non-citizens are in this country, receiving a free education, some documented and some not.

America benefits more from educating illegal immigrants, who generally stay in America, than from educating legal temporary card-holders, who eventually will return to their native countries.

Armed conservative protesters rally at the state capitol in Lansing Michigan on April 15 2020.
Those immigrants are dangerous.

4% of Americans think Illegal Immigrants SHOULD Be Eligible to Own Guns in the United States.

96% of Americans think Illegal Immigrants SHOULD NOT Be Eligible to Own Guns in the United States.

Why would anyone agree to give a criminal a gun?

They are ILLEGAL immigrants. They already have shown that they are ready to break any laws necessary to get what they want. Imagine the laws they could break once they have weapons?

No, they have not “shown that they are ready to break any laws.” They have shown that desperate people will risk their lives to make a better life for their families.

Undocumented law-breaking is more related to poverty than to any other factor, and poverty is related to lack of education, which often is denied them.

To Defeat NRA and Curb Gun Violence, Former Supreme Court Justice ...
Meaningless words: “A well regulated Militia, being necessary to the security of a free State. . . “

86% of Americans DO NOT want assault rifles banned.

14% of Americans DO want assault rifles banned.

Like all semi-automatic guns, the AR-15 is no more or less dangerous than any other firearm. With the exception of bolt action or lever-action rifles, most firearms can fire as fast as the user pulls the trigger.

The AR-15 projectile is only a .223 “varmint caliber” and safety depends on who, where, and how it’s being used in the first place.

The 2nd Amendment affords Americans the right to bear arms, period.

It’s not a “varmint caliber,” and it is more dangerous.

The U.S. Army defines assault rifles as a “short, compact, selective-fire weapons that fire a cartridge intermediate in power between submachine gun and rifle cartridges.

Meet The Deadly Tavor Assault Rifle: Israeli’s Upgrade For The U.S. M-4 And M-16. 

In this strict definition, a firearm must have at least the following characteristics to be considered an assault rifle:

  • It must be capable of selective (automatic or semi-automatic) fire.
  • It must have an intermediate-power cartridge: more power than a pistol but less than a standard rifle or battle rifle.
  • Its ammunition must be supplied from a detachable box magazine.
  • It must have an effective range of at least 330 yards.

Those specifications describe a firearm that is far more dangerous than a handgun or a typical “varmint” hunting rifle.

As for the 2nd Amendment, until 2008 it included the “militia” phrase. In 2008, right-wing Supreme Court Justices decided those thirteen words have absolutely no meaning — the only words in the entire Constitution that a Court has decided are meaningless.

Future Courts may be a bit more humble in their translations.

94% of Americans think we ARE more divided than ever.

6% of Americans think we ARE NOT more divided than ever.

Now that we know that the majority of people feel America IS more divided than ever, the real question is what can be done about it.

They dodge the issue of a President who spends virtually all his time on two pursuits: Golf and insulting anyone who disagrees with him.

He is a President whose modus operandi is to divide the world into “me” and the hated “them.”

What can be done about it is simple: Elect a leader who is not so divisive.

5% of Americans think illegal immigrants SHOULD be eligible for unemployment benefits.

95% of Americans think illegal immigrants SHOULD NOT be eligible for unemployment benefits.

Illegal immigration is already costing this country millions of taxpayer dollars each day. Why would anyone want to increase that cost by providing them with citizenship benefits that many Americans who’re down on their luck do not even qualify for?

As readers of this site know, immigrants, legal or otherwise, cost federal taxpayers exactly $0.

Ignorance of how a Monetarily Sovereign tax system works is continually reinforced, knowingly or unknowingly, by some media, politicians, or economists who have an anti-immigrant agenda.

However, a case could be made that they pay fewer local tax dollars than they receive in benefits. But that is true of all poor people. Shall we deny the poor of unemployment benefits?

And what then?. Starve them and their children? Is that how a great nation operates?

Contrary to popular myth, most undocumented immigrants do pay income taxes, and they all pay sales taxes, the principle taxes used by state and local governments.

8% of Americans think illegal immigrants SHOULD receive free college education.

92% of Americans think illegal immigrants SHOULD NOT receive free college education.

The votes coming through so far indicate that the vast majority of people feel that those who are not United States citizens SHOULD NOT receive free college education funded by U.S. taxpayers. And it’s not even close, which is a relief because it seems that common sense is rare these days.

The silent majority of the United States does not even think that college should be free for American students.

They believe that investing in your own future and education are part of the American dream. A dream that is handed to no one, but comes as the result of hard work.

However, there are some on the left that believe in handouts. Particularly, they believe in handouts to illegal immigrants, and a free college education is just one of the many handouts that some believe should be available to all.

What usually happens when an illegal immigrant receives a college education, is they go back to their own country to start a better life. They leave their old life in the U.S. behind, along with all of their college debt. Giving them free education would just encourage more illegal immigration, not less.

The above is so filled with bigoted falsehoods, one scarcely knows where to begin.

Free college is not funded by U.S. taxpayers. Most of it is funded by the parents of paying students via scholarships.

But the question really is, “Should the federal government fund free college?” and the answer is a resounding, “Yes.!”

Federal spending costs federal taxpayers nothing, and the more people who go to college, the more advanced the nation becomes. America’s progress relies largely on college education.

As for the silent majority not believing in free college, does it also not believe in free high school? What about free elementary school? Education benefits America.

The notion that free college is a “handout,” is a perfect example of what The Party Of The Rich (the GOP) preaches.

The GOP wants to reserve college for the rich, so there will be a large supply of uneducated and desperate workers available to wealthy employers.

And the notion that educated undocumented immigrants are more likely to go back to their “own country” than educated documented immigrants do, is ridiculous. It’s just another excuse to hate immigrants.

88% of Americans polled think that people who are in this country illegally should NOT be eligible for Medicare benefits.

12% of Americans polled are OK with illegal immigrants receiving Medicare benefits.

The hardworking American families who’re paying their taxes and struggling to put food on the table are at the same time paying to feed, clothe, and house these illegals and their children.

This is yet another myth promulgated to people who do not understand Monetary Sovereignty. Medicare is funded by the federal government, not by taxpayers.

However, when people don’t have healthcare insurance they use the hospital emergency rooms, which are funded by taxpaying and insurance-paying Americans.

In short, just from the financial standpoint, and forgetting about the moral aspect of denying people healthcare, it is cheaper for American citizens to have the federal government pay for immigrants’ health care.

93% of Americans DO NOT think illegal immigrants should get Social Security benefits.

7% of Americans DO think illegal immigrants should get Social Security benefits.

While Americans are happy to help those who help themselves, poll results show that they would prefer those benefits go to other Americans who have earned them or who suffer from a disability.

Just 7% of Americans are willing to share their Social Security with those who come into America illegally.

Does making that long, hard, difficult, dangerous, life-threatening trek from an impoverished country count as “help themselves”?

“Share their Social Security”? How does an immigrant “share” anyone’s Social Security? The federal government, being Monetarily Sovereign, has the unlimited ability to fund unlimited benefits.

19% of Americans DO Trust Independent Media.

81% of Americans DO NOT trust Mainstream Media.

We asked thousands of people whether they felt they could trust the Mainstream Media and if they trusted Independent Media more than Mainstream Media.

Some confusion here. “Do Trust Independent Media” is not the opposite of “Do Not Trust Mainstream Media.

It would be a miracle if anyone trusted anything, with a President repeatedly talking about “Fake News” and “Lamestream Media,” any time any reported document one of Trump’s lies.

Since there a so many of those lies, Trump is almost continuously blasting the media.

I say, “Thank God for the media.” Imagine what Trump would do with no media to watch him!!

28% of Americans think illegal immigrants SHOULD be eligible for student loan programs.

72% of Americans think illegal immigrants SHOULD NOT be eligible for student loan programs.

What are some reasons illegal immigrants should NOT be given student loans? First of all, if they’re deported, they are likely to default on their loan payments.

This makes an illegal immigrant a higher risk to lenders. Also, without a social security number, it’s difficult to track and ensure that illegal immigrants are paying their loans off or whether they qualify for credit in the first place.

The most likely outcome of an illegal immigrant getting a college education is that they return to their country and abandon their debt, leaving the taxpayers to pay for their education.

Student loans are among the lowest risk loans. They are not dischargeable in bankruptcy. Almost all student loans are guaranteed by the federal government, which costs American taxpayers nothing.

The above simply are nothing but rationalizations for immigrant-hatred, fostered by the cult leader.

Young, disabled and stuck in a nursing home for the elderly | Al ...
Undocumented? No benefits. The U.S. government can’t afford you.

8% of Americans think illegal immigrants SHOULD be eligible to receive Supplemental Security Income benefits.

92% of Americans think illegal immigrants SHOULD NOT eligible to receive Supplemental Security Income benefits.

This program provides extra income for people who have disabilities, are blind, or are over 65. 

Most people don’t believe that illegal immigrants should take more of taxpayer money than they’re already receiving.

Illegal immigration costs millions of taxpayer dollars and the amount keeps growing as the problem of illegal immigration expands with each passing day.

Federal taxpayers do not fund SSI benefits.

This is yet another example of immigrant hatred, with no supporting facts.

The right-wing is so mean-spirited they even want to deny benefits to the blind, disabled, and elderly. They claim to “love America.” They just hate the blind, disabled, and elderly in it.

6% of Americans think illegal immigrants SHOULD be eligible for welfare benefits in the United States.

94% of Americans think illegal immigrants SHOULD NOT be eligible for welfare benefits in the United States.

Many illegal immigrants receive a great deal of taxpayer-funded assistance when they come into this country. It seems like common sense that the government would not pay for this kind of thing, but there seems to be a shortage of common sense these days.Greenspan quote

Like the previous rationales, this one includes the “taxpayer-funded” false excuse.

When you review all the right-wing commentary, you’ll see a consistent thread running through. Today’s right-wing is a cult based on hatred of outsiders, as all cults are.

And as all cults do, this right-wing cult takes its direction from a hate-mongering cult leader, who uses scapegoating to justify everything evil.

And like all cult members, Trump’s followers excuse it.

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:

  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 or a reverse income tax

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. I

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

The states, counties, and cities are becoming insolvent. Do you care?

If you don’t live in a state that now is heading toward insolvency, you are fortunate. You are even more fortunate if your county and/or your city are not on the edge of insolvency.

An insolvent state or local government is not able to provide much-needed local services — education, poverty aids, infrastructure, etc. — without a tax increase. So as a citizen of an insolvent government, you are faced with the unfortunate choice of paying more taxes or doing with less service.

By contrast, the U.S. government never can be insolvent. It has the unlimited ability to create its own sovereign currency, the U.S. dollar.

The federal government never can run short of dollars, and in fact, its method for creating dollars is to pay creditors.

So it is the height of ignorance that the following outrageous situation exists.

11 states pay more in federal taxes than they get back

  • Alabama: Total balance of payments: -$169 million; Per capita balance of payments: -$291
  • California: Total balance of payments: -$13.7 billion; Per capita balance of payments: -$348
  • Connecticut: Total balance of payments: -$4.4 billion; Per capita balance of payments: -$1,242
  • Illinois: Total balance of payments: -$14.8 billion; Per capita balance of payments: -$1,158
  • Massachusetts: Total balance of payments: -$10.5 billion; Per capita balance of payments: -$1,532
  • Minnesota: Total balance of payments: -$6 billion; Per capita balance of payments: -$1,078
  • Nebraska: Total balance of payments: -$267 million; Per capita balance of payments: -$139
  • New Hampshire: Total balance of payments: -$749 million; Per capita balance of payments: -$558
  • New Jersey: Total balance of payments: -$24.7 billion; Per capita balance of payments: -$2,748
  • New York: Total balance of payments: -$24.1 billion; Per capita balance of payments: -$1,216
  • Wyoming: Total balance of payments: -$169 million; Per capita balance of payments: -$291

In summary, a government that has infinite money takes more money from eleven states than it gives to them.

That alone is economically ignorant and outrageous, but it gets worse. Much worse.

Here are a few excerpts from a web article, today:

If the Federal Government Won’t Fund the States’ Emergency Needs, There Is Another Solution
Posted on May 25, 2020 by Yves Smith
Yves here. I’m glad to see Marshall Auerback mention the program that great American socialist Richard Nixon implemented, revenue sharing, which was the Federal government handed out money to local government.

No, Yves doesn’t really believe Nixon was a socialist. She is making a point for the right-wingers who in their ignorance and/or spite, term any federal spending that benefits those in the lower 99% income brackets, as “socialist.”

In the first week of October, 39,000 cities, counties, towns, villages and other communities across the county received checks from the Treasury, some as small as $201. The biggest -$41,957,530 – went to New York City.

With these checks, the program of Federal revenue-sharing came to an end, 14 years and $85 billion after it began.

In that span of time, from before Watergate to the afternoon of the Reagan era, this low-overhead, highly practical, widely popular program brought an extraordinary array of benefits to the people of New York and every state.

Revenue-sharing paid for teachers in Manhattan and streetlights in Buffalo, provided snowplows for Adirondack villages and built the community hall and ice rink in New Hartford.

A so called “revenue-Sharing” plan is defined by the Encyclopedia Britannica as:

A government unit’s apportioning part of its tax income to other units of government. For example, provinces or states may share revenue with local governments, or national governments may share revenue with provinces or states.

The problem with that definition is that it does not consider Monetarily Sovereign governments like the U.S. government, which does not spend revenue, nor does it share revenue with anyone.

A Monetarily Sovereign (MS) government destroys all the revenue it receives, and it creates brand new money when it spends.

Unlike monetarily non-sovereign governments –i.e.  the states and local entities —  for the federal government there is no “flow-through” of income to out-go.

Incoming money is destroyed: outgoing money is created.

There is no link between the two.

The program was misnamed “revenue-sharing” by its creators, economist Walter Heller and President Richard Nixon, to make it more palatable to the public.

Presumably, if it were not called “sharing” it would be called “socialism,” and Nixon’s base didn’t want that.

Nixon believed the Federal government could collect taxes cheaply and more efficiently than could the states and cities, while local governments were closer to the needs of their citizens and could often deploy funds more efficiently and in a more tailored manner than could the Federal government.

The Federal government’s “cheaper and more efficient” ability to collect taxes is irrelevant, and may not even be true., because destroys the taxes it collects.

Many states are now experiencing severe budget deficits as they cope with the combined collapse of tax revenues and corresponding expansion of spending brought about by the coronavirus.

Although the most recent $3 trillion fiscal package of the House Democrats proposes significant funding for the state and local governments, the GOP and the president have already said it’s “DOA.”

It’s “DOA” because the states experiencing the worst budget deficits primarily are “blue” states, and the current President would rather give up cheating on his wife and lying to the public than to do anything to help the “blue” people.

His focus is, and has been, on helping the rich.

Absent assistance from the federal government, many of the country’s states might have to introduce cuts amid a crisis at a time when the economy has already collapsed into a depression.

Today’s dire situation evokes what many states experienced in the wake of the 2008 financial crisis (if not worse).

At that time, many of the same arguments marshaled against revenue sharing for the states were being made (especially by Republicans)—namely, that this kind of a measure represented a bailout for fiscally irresponsible governments that were failing to adequately reform their bloated pension schemes or undertake “meaningful reforms” (which in many cases was code for weakening public-sector unions that espoused political views contrary to the prevailing orthodoxy).

Let’s face it. All states have some degree of “fiscal irresponsibility,” blue being no different from “red.”

But President Donald Trump and his groupies seldom miss a chance to throw hatred and vengeance on the poor, the foreign, blacks, browns, yellows, Muslims, gays, and anyone who doesn’t stroke Trump’s fragile ego.

Calling it a “bailout” rather than “sharing” is just another excuse to kick those who are down.

But the truth is that today we are in the midst of a pandemic. Unlike 2008, it is a federal government-mandated shutdown that is the key precipitating factor behind the states’ respective fiscal crises, not runaway pension funds or uncontrolled government spending.

Washington should therefore supply the funds required to help the states close their budget gaps and to maintain public services at baseline levels, for the duration of the crisis.

That not only is the norm; it is the fundamental purpose of a central government.

Anytime a state is hit with a national emergency, the federal government does not first demand that the state government get its fiscal house in order. (FEMA does not wait for an auditor’s report on state finances.)

It mobilizes national funding immediately to deal with the crisis at hand, whatever the cause.

Except, of course, when it’s Puerto Rico, in which case the President tosses a few rolls of paper towels at the desperate people.

Back in 2009, when faced with a similar fiscal crisis, California’s state controller, John Chiang, began printing IOUs in lieu of cash to pay taxpayers, vendors, and local governments.

These IOUs came with a potentially radical provision, namely allowing them to be used for personal income tax refunds—an action that effectively would have meant that California was de facto entering the currency issuing business.

The tax payment provisions of the IOU program were headed off before they came into use.

These IOUs were a form of money, no different from the money issued by the U.S. Treasury.

Contrary to popular belief, nothing in the U.S Constitution prevents states, counties, cities, businesses, even you or me from printing money.

In fact, businesses do it all the time, when they print coupons.

Walgreens prints money when it offers costumers points, redeemable for merchandise. Those points represent money as do airline miles, credit card points and casino chips.

If you would like to create your own money, feel free. Your only challenge would be public acceptance, which primarily would be based on your full faith and credit.

If you issued “Reader-bucks,” which were accepted by individuals and businesses, you would be a Monetarily Sovereign money issuer, and so long as people and businesses kept accepting them, you could keep issuing them.

In the words of the American economist Abba Lerner, from his essay in the 1947 edition of the American Economic Review: “The modern state can make anything it chooses generally acceptable as money…”

A key insight is that in a world of fiat currencies (i.e., money established via government fiat), both the use of currency and the value of said currency are based on the power of the issuing authority, as opposed to some underlying intrinsic value (as would be the case, say, if a currency was backed by gold).

Though Lerner is correct about the “modern state,” he then drifts into mythology.

All government currencies are “established via government fiat (i.e. decree), and gold has no “underlying intrinsic value.”

In a gold-backed currency, the relationship between the value of the currency and the value of gold is determined by the currency issuer, and subject to change.

The Gold Standard Act of 1900 arbitrarily fixed the value of $100 at 150.46 grams of gold (4.83740133 troy ounces) and subsequently, the government changed the value at will.

Then we come to what I term is the “tax myth” of money:

As I have written before, “The tax (and the corresponding ability to enforce payment) is what gives an otherwise worthless piece of paper with pictures of dead presidents on it its value.

Even though this paper is not ‘backed’ by anything, taxes function to create the notional (i.e. theoretical) demand for said paper dollars.”

The tax provision itself imparts the value or, as the economist A. Mitchell Innes termed it, “A dollar of money is a dollar, not because of the material of which it is made, but because of the dollar of tax which is imposed to redeem it.”

This is widely believed by MMTers, but it is false. First, a very minor point: There are no “paper dollars.” There are paper dollar bills, which represent dollars.

Dollars themselves have no physical existence. They are mere balance sheet numbers, which also have no physical existence.

More importantly, the author confuses acceptance with value. While the need to pay taxes with a certain currency does force some acceptance of that currency, it does not give the currency value.

Inflations and hyperinflations, where the value of currencies declines dramatically — sometimes effectively to zero — are not caused by changes in tax rates.

While money acceptance is related to the full faith and credit of the issuer, money value is far more related to the scarcity of key items, usually food and/or energy.

If California did move in this direction, it would not be historically unique. Economist Rob Parenteau and I have documented five instances of paper currency being used simultaneously and interchangeably in the U.S. in the 1920s:

  • Gold Certificates (redeemable in gold coin until FDR’s prohibition on private citizens holding gold)
  • Silver Certificates (redeemable for coin or bullion)
  • National Bank Notes (issued by U.S. government-chartered banks with equivalent face value of bonds deposited by bank at Treasury)
  • United States Notes (issued directly by Treasury and called Legal Tender Notes, but with no “backing”)
  • Federal Reserve Notes (redeemable in gold on demand at Treasury or in gold or “lawful money” at any Federal Reserve Bank, until FDR’s prohibition, when it was just declared legal tender redeemable in lawful money at the Fed or Treasury)Similarly, in this instance, the proposed IOU would not replace the dollar, but could operate in parallel to extinguish state liabilities.

A good analogy for real money is Monopoly™ game money. The game could be played without any paper “money” at all, but rather just with a scoresheet.

And now we get to the good part:

Per capita distributions to all states to allow them to sustain relief efforts and public health policies designed to mitigate the spread of the coronavirus, similar in model to the range of block grants that the federal government has in the past allocated nationally.

That is exactly what should be done, with the only question being: Per capita distributions to the states, or per capita directly to the people, or both.

There is nothing inherently radical or “un-American” about this proposal. Indeed, it was a Republican president, Richard Nixon, who first introduced the concept.

As I described in an earlier piece:

Nixon viewed the federal bureaucracy as a poor revenue manager and argued that much counter-cyclical spending should go to the states, as they are closer to people’s needs and more directly hurt by falling revenues.

But instead of simply cutting taxes, as later conservatives would, he proposed a new system called revenue sharing, which redirected funds to states and municipalities…

Passed after contentious debate, the State and Local Assistance Act of 1972 initially delivered $4 billion per year in matching funds to states and municipalities.

The program, before it was killed by Ronald Reagan in 1986, proved enormously popular.

Direct, per capita payment to the states plus Social Security for All, would be far superior to tax cuts. The former would benefit the 99% far more, and put the money where it is needed.

The latter would likely be of most benefit to the upper 1% income/wealth/power groups, widening the Gap, when it really needs to be narrowed.

And the mechanics today would likewise be very easy: the Treasury would appropriate the funds and the Federal Reserve would credit the states’ existing bank accounts.

The states in turn could then spend those dollars to sustain vital services.

This is another instance where the GOP’s obliviousness to the ramifications of the states’ respective fiscal crises is likely to make things far worse.

The GOP is not oblivious. It knows exactly what it is doing.

It wishes to widen the Gap (which makes the rich richer) by allowing the lower 99% to be crushed by recession and depression.

The U.S. already operates a fiscal transfer union, so the chaotic issues of distribution and implementation that have characterized many of the newer federal relief programs would be non-factors here.

There would be no bureaucratic obstacles to overcome, as has characterized other programs, such as the government’s Paycheck Protection Program (PPP) nightmare.

Done on a per capita basis, it would be effective at dealing with fiscal crises in a manner less prone to the kind of fascistic crony capitalism that continues to erode the political legitimacy of our existing institutions.

But if per capita revenue distributions fail to pass muster in Washington, then California, as it has done so many times in the past, should be prepared to adopt a more radical policy stance in order to help lead the nation as a whole out of a self-inflicted fiscal crisis.

ADDENDUM

Every form of money is a form of debt backed by the full faith and of the issuer, i.e. the debtor. (https://mythfighter.com/2010/02/23/understanding-federal-debt/)

The notion that money is, or ever was, backed by gold, silver, or some other valuable physical asset is nonsense, since it is the issuer that determines the backing (aka the “collateral“).

Gold is not, and never has been money. It has been, at best, collateral for the issuer’s debt that is implicit in money distribution.

When gold and silver supposedly collateralized the U.S. dollar, the U.S. arbitrarily changed this “backing” on several occasions. Because a money issuer arbitrarily can change the collateral at will, the collateral is of no use.

The U.S. states vis a vis the U.S. government are in exactly the same position as the euro nations vis a vis the EU.

Like the U.S. states, the euro nations cannot control their money supply nor do they have the unlimited ability to create money.

That is why some of the euro nations and some of the U.S. states are in perpetual financial difficulty.

The entire process of one Monetarily Sovereign entity controlling multiple monetarily non-sovereign entities must at least include the MS entity continually providing money to the non-MS entities.

This has nothing to do with frugality or supposed fiscal irresponsibility on the part of the non-MS entities.

The U.S. federal government has the unlimited ability, indeed the duty, to provide the means for making the health and welfare of all its people possible.

Punishing the states for political purposes, is not what makes America great.

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:

  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 or a reverse income tax

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. I

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

Want to be more creative? Try this trick.

Creativity is based on the denial of the obvious.

Much of what seems obvious today will be, or already has been, disproved. For example, these “obvious truths” about economics, though held by much of the public, are wrong:

  1. Money is not a form of debt.
  2. Dollar bills are money.
  3. Federal taxes fund federal spending.
  4. Federal government debt is a burden on the federal government.
  5. Federal debt will be a burden on future generations.
  6. Federal deficits and debt can lead to federal insolvency.
  7. Federal finances are like state/local government and personal finances.
  8. Federal deficit spending can lead to inflation.
  9. A federal balanced budget or surplus is more prudent than a federal deficit.
  10. Low interest rates are stimulative; high rates are recessive.

Not one of the above statements is true, and in fact the denial of #1 (Money really IS a form of debt) provided the starting point for Monetary Sovereignty.

Creativity involves taking a statement thought to be true and asking:

“What if this isn’t true?”

Consider even a statement that you know, absolutely positively is true, for instance: The circumference of a circle = π times the diameter of the circle.

Being a geometry buff, and wanting to be creative, you might ask, “What if this isn’t true?” which could lead you to the fact that the circumference of circle drawn on a sphere is always less than π times the diameter if the diameter must follow the surface of the sphere.

O.K., that was pretty simple, so for you real geometry buffs, there is “The staircase paradox, or why π≠4”

circle with squares
Why doesn’t the perimeter of infinite squares equal the circumference of the circle? 

The point is that creativity begins with the denial of the obvious. “What if this isn’t true?” is the question all scientists ask when searching for a new solution.

What if it isn’t true that:

The sun circles the earth? (Galileo Galilei)
Stomach ulcers are caused by stress? (Barry Marshall and Robin Warren)
Time moves the same for everyone? (Albert Einstein)

What if what I believe isn’t true?

Creative fashion designers ask that question all the time. What if it isn’t true that:

Image number 1 showing, Mid-Rise Distressed Rockstar Super Skinny Jeans for Women
When they get holes, you should throw them away
pants, different color, blue, pink, leggings, purple, pantone ...
Pants legs should be the same color.

Depending on what you are trying to accomplish, you can begin with such statements as:

“What if it’s not true that:”

  • Energy can not be created or destroyed
  • The laws of physics do not change over time
  • The same shoe cannot fit everyone.
  • The universe is expanding
  • A virus doesn’t talk.
  • The entropy of a closed system always increases
  • A child’s toy should be safe.
  • The world still exists when I sleep.
  • What I see (hear, feel) actually exists.
  • A lamp should provide light.
  • A roof should be water-impermeable.
  • The world (the universe, the moon) was created billions of years ago.
  • A song should be musical.
  • Lightening is electric.
  • I (you, they) exist.
  • Nothing could live on the sun.
  • Now lasts an instant.
  • I will not live forever.
  • Time runs in one direction.
  • Life requires water.
  • Ice is cold.
  • You see what I see.
  • Gravity exists.
  • I am one of billions of people.
  • The earth is a sphere.
  • A murder mystery story requires a murder or a mystery.
  • Yesterday happened.
  • For every action there is an equal and opposite reaction.
  • Trees (buildings, people) are not transparent.*

*See The Material Revolutionizing the Construction Industry? Wood

You could go on and on listing “truths” as you know them. As you dig deeply through all the implications of any indisputable “truth” not being true,  you will find the enjoyment of creativity.

It’s a way to move off that notorious “blank sheet.”

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:

  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 or a reverse income tax

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. I

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

Donald Trump’s position on the slow response to the virus: It’s not my fault.

It’s all quite simple:

========================================================================================================================================================

Washington (AFP) – The White House rebuked the top US health agency on Sunday, saying “it let the country down” on providing testing crucial to the battle against the coronavirus outbreak.

The Centers for Disease Control and Prevention has been under intense scrutiny since producing a faulty test for COVID-19 that caused weeks of delays in the US response.

Critics have pointed out that it could simply have accepted kits made by the World Health Organization, (heavily criticized by Trump) which has been producing them since late January, instead of insisting on developing its own test.

“Early on in this crisis, the CDC, which really had the most trusted brand around the world in this space, really let the country down with the testing,” Navarro told NBC’s “Meet the Press.”

“Because not only did they keep the testing within the bureaucracy, they had a bad test. And that did set us back.”

The Food and Drug Administration has also criticized the CDC for not following its own protocols in manufacturing COVID-19 tests. The errors were not corrected until late February.

Trump often blames the administration of his predecessor, Barack Obama, for passing on “broken tests” for the new coronavirus — although Obama left office years before the virus came into existence.

But Navarro’s comments mark the strongest criticism by a named White House official of the CDC’s role in the administration’s slow roll-out of testing.

========================================================================================================================================================

Trump: Coronavirus testing may be ‘overrated’ and reason for high U.S. case count

May 14, 2020

President Donald Trump on Thursday said testing for coronavirus might be “overrated,” revisiting his concern early in the outbreak that testing for the disease would raise the nation’s case count.

After touring the medical supply distributor Owens and Minor in Allentown, Pa., the president — he and White House chief of staff Mark Meadows were the only members of the tour group not wearing masks — talked about his plans for expanding the Strategic National Stockpile and lauded his administration for its coronavirus response, including increased testing.

“America has now conducted its 10 millionth test. That’s as of yesterday afternoon. Ten million tests we gave. Ten million,” Trump said from a stage at the warehouse event, which had the trappings of a campaign-style rally.

“And CVS has just committed to establish up to 1,000 new coronavirus testing sites by the end of this month, and the 10 millionth will go up very, very rapidly.”

“And don’t forget, we have more cases than anybody in the world,” he added. “But why? Because we do more testing. When you test, you have a case. When you test, you find something is wrong with people. If we didn’t do any testing, we would have very few cases.”

Trump said the news media had refused to report his “common sense” explanation for the country’s high case numbers. He repeated the misleading claim that the U.S. has tested more people than other countries, sidestepping the reality that testing as a share of the population is lower than in other countries.

“So we have the best testing in the world,” Trump said. “It could be the testing’s, frankly, overrated? Maybe it is overrated. But whatever they start yelling, we want more, we want more. You know, they always say we want more, we want more because they don’t want to give you credit.”

Trump needs “credit” like a dog needs a meaty bone. Always grabbing it; never giving it.

========================================================================================================================================================

“We inherited a broken test” for COVID-19.

By Jon Greenberg  March 31, 2020

President Donald Trump deflected blame for the slow start of testing for the new coronavirus in the United States.

“We inherited a broken test,” he said on Fox News’ “Fox and Friends,” ignoring the fact that the virus appeared years after the previous administration left office.

“We took over a dead, barren system,” Trump said. “That didn’t work, because when CDC first looked at their test, the biggest problem they had is, the test didn’t work. That wasn’t from us. That’s been there a long time. Now we have the best tests in the world.”

Trump’s assertion that the test “wasn’t from us,” gets things backwards. There could be no test for the virus that causes COVID-19 until the virus emerged. 

Trump’s claim that his administration inherited a broken test “doesn’t make sense,” said infectious disease researcher Christopher Mores at George Washington University’s School of Public Health.

“The (Centers for Disease Control) designed it and validated it and deployed it,” Mores said. “It has since been found to have multiple problems and has been changed to address some of these.”

China officially reported the new disease Dec. 31, 2019. It sent a genetic map of the viral DNA to the world community Jan. 7, 2020.

========================================================================================================================================================

O.K. now I get it, Trump followers: The reason for our slow response to the virus was the “bad test,” which we inherited from the previous administration, for a virus that emerged just last December, and this “set us back.”

We have the best tests in the world, and we’ve tested 3% of our population since the beginning of the year, which is incredible, even though “testing is overrated.”

In short, our response wasn’t slow, but our slow response wasn’t our fault. It was the fault of:

  1. Obama
  2. The Chinese
  3. The Centers for Disease Control and Prevention (CDC)
  4. The World Health Organization (WHO)
  5. Too many bad tests
  6. Too many great tests
  7. Tests which are overrated.

Simple. It’s known as psychopathy. It also its known as “lack of leadership.” And because my followers are so intelligent, they (and FoxNews and Breitbart) are the only ones who understand it.

The rest of you and the fake media ask nasty questions like, “Why does the greatest country in the world have so many deaths by population? Just plain nasty.

Virus case total

By 

Sure, 90,000 Americans have died, but that’s not the important thing.

The important thing is the nasty media don’t want to give me, Donald Trump, credit for a great job.

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:

  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 or a reverse income tax

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. I

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