–Recession, again. So where is all the money?

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●The single most important problem in economics is
the gap between rich and poor.
●Austerity is the government’s method for widening
the gap between rich and poor.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Everything in economics devolves to motive,
and the motive is the Gap.

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

A good point in this article:

Economy’s biggest issue: People don’t have money to spend
By John Crudele, June 3, 2015 | 10:26pm

Anyone with even a quarter of a brain now understands that the US economy got off to a bad start this year.

There was an economic contraction in the first three months — when the nation’s gross domestic product fell at an annualized rate of 0.7 percent — that some quarter-brainers are still blaming on the cold weather, strikes at ports, the strong dollar, solar flares, Martian landings and (insert your own poor excuse here).

The truth: Most of these excuses are part of the problem.

But the biggest part is that people don’t have enough money to spend.

Interest from savings is down to zero, people don’t liquidate stock gains to make purchases, and job and income growth has been sketchy.

The economy isn’t doing much better in the current quarter either. The Federal Reserve Bank of Atlanta, an independent observer if ever there was one, measures growth so far in the second quarter at an annual rate of just 1.1 percent. That means growth — un-annualized — is a paltry 0.275 percent with less than four weeks left in the quarter.

It’s quite possible that we will eventually be told, after all revisions are made, that the economy met the official definition of a recession in the first half of 2015, which is two straight quarters of contractions.

Right. When people don’t have enough money to spend, we have a recession. Pretty basic.

So where is all the money?

There are two answers, which together encompass the two fundamental problems with our economic leadership

Answer #1. The federal government is not creating enough money.

U.S. dollars come from two sources: Lending and federal deficit spending. Bank (and other lenders’) lending is a large, but temporary source of dollars — temporary because loans must be paid back, which destroys dollars.

Federal deficit spending is a smaller, but permanent, source.

Economic growth requires growth in the money supply. The misguided drive for “smaller government” and lower deficits, translates into a drive for reduced economic growth.

Reduced deficit growth always begets reduced economic growth and recessions. Depressions have resulted from the extreme version of deficit reduction: Federal surpluses:

1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819.
1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837.
1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857.
1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873.
1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893.
1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929.

As you can see from the graphs shown below, we have been in a long period of slower and slower deficit (i.e. money creation) growth, which is exactly why we’ve named the graphs “The Recession Clock.”

The Obama administration proudly predicts the government soon will run a surplus, i.e. the government will take dollars out of the economy. This proud act is causing a recession, and unless reversed, will cause a depression.

(There may not even be enough money to build that opulent Obama Presidential Library to extol the recessionary / depressionary successes of President Obama.)

Answer #2. An increasing percentage of the money has gone to the very rich (the .1%).

The .1% spends proportionately (to their income) less on food, clothing, shelter, education and transportation than you and I do. They invest, which helps account for the “mysterious” increase in stock prices, together with the equally “mysterious” decrease in GDP growth.

In summary, the combination of reduced deficit growth (headed toward federal surplus), and the increased Gap between the rich and the rest, has reduced the ability of consumers to spend.

And that spells: “R E C E S S I O N.”

Here is the cure for the current recession and the prevention of future recessions: Increase federal deficit spending via the Ten Steps to Prosperity (below).

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
The Ten Steps to Prosperity:

1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Federally funded, free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually. (Refer to this.)
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

Initiating The Ten Steps sequentially will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK

Long term view:
Monetary Sovereignty

Recent view:
Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

–Is being stupid a requirement for being elected President?

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●The single most important problem in economics is
the gap between rich and poor.
●Austerity is the government’s method for widening
the gap between rich and poor.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Everything in economics devolves to motive,
and the motive is the Gap.

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

If you search through all the comments made by the dozen (or is it 20?) Republican Presidential wannabe’s, you might begin to think being stupid is a requirement for being elected the most powerful man on earth, the President of the United States in America.

And then, if you look at the likes of Presidents Carter (“I only have to talk to one person and that’s the dictator, because he speaks for all the people.”)

And Reagan (“Why should we subsidize intellectual curiosity?”)

And Clinton (I did not have sexual relations with that woman.”)

And Bush I (“Read my lips. No new taxes.”)

And Bush II (“Brownie, you’re doing a heck of a job”)

. . . You might believe stupidity really is a requirement.

And then we come to President Obama, who affirms the need for stupidity.

First a bit of background:

Islamic State Attacks Israel: ISIS Supporters Threaten Hamas, Take Credit For Launching Rocket From Gaza

Islamic State group supporters in Gaza have given ruling Hamas leaders a 48-hour deadline to stop a crackdown on them.

The militants also claimed responsibility for a rocket fired at Israel from Gaza last week.

Let’s see. Islamic state is a terrorist organization. Hamas is a terrorist organization. Both recently have fired rockets into Israel.

And then there’s Syria:

State Sponsor: Syria

Syria continues to be categorized as a state sponsor of terrorism, since its first designation in 1979. According to the State Department, Syria’s government supports U.S.-listed terrorist groups and allows some of these organizations such as Hamas and Palestinian Islamic Jihad to maintain headquarters in Damascus.

And:

Israel strike kills militants on Golan Heights frontier

An Israeli air strike has killed four militants armed with a bomb along the Israeli-Syrian frontier in the Golan Heights, the Israeli military has said.

And, the terrorist organization, Hezbollah:

Experts fear ‘accidental’ war between Israel, Hezbollah

Hezbollah has long threatened Israel, but sources in the Jewish state fear that if an all-out war happens near the Lebanon border, it will happen not by design, but by accident.

Fighting on so many fronts, especially in chaotic Syria, where Iran has dispatched Hezbollah to help President Bashar al-Assad’s forces, could increase the chances of a rogue element firing rockets into Israel simply to draw the Jewish State into a war, say experts.

And Egypt:

Maged Farag: For 70 years, Palestinian cause has brought Egyptians nothing but harm.

Asked by the interviewer if he was serious about Egypt dropping the Palestinian cause, Farag replied, “Churchill once said that he was ready to cooperate with the Devil in the interest of his country. As a man who knows a little bit about history and about international relations, I believe that it is in our interest to maintain normal relations with Israel,” he said.

So in summary, tiny Israel is surrounded by current and former enemies and terrorist organizations, most of whom have attacked recently and are making plans for more attacks.

But even former enemy Egypt is having a change of heart about supporting the “Palestinian cause.”

And now comes the President of the United States, a putative ally of Israel:

Obama: Netanyahu’s Palestine stance erodes Israel’s credibility

U.S. President Barack Obama said Israeli Prime Minister Benjamin Netanyahu’s terms for diplomacy that might lead to a Palestinian state meant Israel had lost international credibility as a potential peacemaker.

Obama also suggested that continued U.S. diplomatic defense for Israel at the United Nations over the Palestine dispute may be reviewed, while reaffirming U.S. support for Israeli security in a conflict-riven Middle East.

“The question is how do we create some building blocks of trust and progress.”

Atta way, President Obama. Thanks for creating those building blocks of trust and progress.

Too bad Israel has failed to make peace with terrorists actually attacking it, while you, Mr. President, have “succeeded” making peace with Iran, Russia, Syria, Iraq, al Quada and the dozens of other groups listed as terrorist.

“If in fact there is no prospect of an actual peace process, if nobody believes there is a peace process, then it becomes more difficult to argue with those who are concerned about settlement construction.”

Get it? If there is no peace, it’s the fault of our ally and sole Mideast democracy, Israel, not the fault of all those terrorist organizations.

One wonders who Obama would blame if Mexico, Canada, China and North Korea fired rockets into the U.S.

Anyway, the long tradition of stupidity by our Presidents continues. So don’t blame the Republican contenders for past stupidity and stupidity sure to come. It seems to be a requirement.

But wait: In the immortal words of Republican Lindsey Graham, “I’m thinking about running for president. You get a house and a car and a plane. It’s a pretty good gig.”

Hey, maybe not so stupid, after all.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
The Ten Steps to Prosperity:

1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Federally funded, free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually. (Refer to this.)
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

Initiating The Ten Steps sequentially will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK

Long term view:
Monetary Sovereignty

Recent view:
Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

—Are you religious? O.K., break the rules. The misinterpretion of the 1st Amendment

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●The single most important problem in economics is
the gap between rich and poor.
●Austerity is the government’s method for widening
the gap between rich and poor.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Everything in economics devolves to motive,
and the motive is the Gap.

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

All the Constitution says about religion is: “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof.”

Taken at its face, the Constitution says our government is not supposed to be a theocracy. The reason: God never is wrong and so, cannot be criticized. By extension, a theocracy never is wrong and cannot be criticized — the perfect recipe for the enslavement of the masses.

We all have our own religions or no religion at all. And each of our religions has different requirements and different prohibitions and different interpretations of those requirements and prohibitions.

No two of us uses exactly the same religion. And we are not consistent even in that:

“You shall have no other gods before me. You shall not make for yourself a graven image, or any likeness of anything that is in heaven above, or that is in the earth beneath, or that is in the water under the earth;

If you never have drawn a person, a house, a stone, a fish or a god, or if you have none of those drawings or statues (i.e. graven images) in your house or workplace or place of worship, please raise your hand.

Abercrombie Headscarf Case Splits Conservatives
10 JUN 1, 2015 1:57 PM EDT, By Noah Feldman

Striking a blow not only for religious liberty, but also for diverse standards of beauty, the U.S. Supreme Court decided Monday that Abercrombie & Fitch could not deny employment to a young woman because she wears a headscarf for religious reasons.

The court also clarified that the job applicant, Samantha Elauf, didn’t have to tell her interviewer that she needed a religious accommodation.

If the company chose not to hire her because it didn’t want to make an accommodation by allowing her to wear the headscarf, that amounted to prohibited religious discrimination.

The difficulty here is that we are not a nation of religion; we are a nation of religionS, and these religions can have some peculiar requirements.

And sometimes these requirements and prohibitions conflict with civil rules and laws and what others might consider common sense.

Not being intimately familiar with the wide variety of religions in this world, I looked up just a few, and here is what I found:

Islam Question and Answer
Ruling on Muslim women working as nurses and doctors

If a woman (nurse or doctor) works in complete hijaab, without touching a male patient, or being alone with him in any way, and as long as there is no fear that she may be the cause of temptation or be tempted herself . . . and she has the permission of her guardian, then it is permissible for her to work.

In principle, men should be treated by male doctors and nurses, and women by female doctors and nurses. There should be no mixing of the sexes in medical treatment, except when it is necessary and as long as there is no fear of temptation.

As I read it, a female Muslim nurse can’t touch a male patient, except when she deems it necessary.

Can you visualize any life or death situations that could arise? Would a hospital legally be liable for a nurse’s negligence if she refused to administer care to a critically ill man, based on her religious beliefs?

What would the Supreme Court say?

Kaparot is a Jewish religious ritual that is performed by grasping a live chicken by the shoulder blades and moving (it)around one’s head three times. The chicken is then slaughtered.

On the eve of Yom Kippur 2005, more than 200 caged chickens were abandoned in rainy weather as part of a Kaparot operation.

Jacob Kalish, an Orthodox Jew from Williamsburg, was charged with animal cruelty for the drowning deaths of 35 of these chickens.

I am Jewish (for 80+ years), and I never had heard of this one, but hey, if your interpretation of your personal god’s will is to parade around, holding a live chicken by its wings, apparently that bit of cruelty is Constitutionally protected . . . (unless the chicken dies by drowning rather than by head chopping or some other means).

Digambar is one of the two main sects of Jainism. Senior Digambar monks wear no clothes. They do not consider themselves to be nude — they are wearing the environment.

Digambara ascetics have only two possessions: a peacock feather broom and a water gourd.

A naked man, carrying a broom and a gourd, is walking down the street, when the police arrest him for public indecency. Does he have a Constitutional religious defense? What would the Supreme Court say if Abercrombie & Fitch barred a naked Digambara from walking in their store?

A fundamental doctrine of the Jehovah’s Witnesses teaches that the Bible prohibits consumption, storage and transfusion of blood, including in cases of emergency.

This doctrine was introduced in 1945, and has been elaborated upon since then.

Jehovah’s Witnesses doctors and nurses (have been) instructed to withhold blood transfusions from fellow Jehovah’s Witnesses. As to administering transfusions to non-members, The Watchtower stated that such a decision is “left to the Christian doctor’s own conscience.

The accident victim is bleeding out. The paramedic refuses to give him a transfusion that would have saved him, because a religious rule invented by someone 70 years ago, forbids it.

As a result, the victim dies. Constitutionally protected by the Supreme Court?

Peyote has (been) condemned by the Spanish conquerors for its “satanic trickery”, and attacked more recently by local governments and religious groups.

The (hallucinogenic) plant has nevertheless continued to play a major sacramental role among the Indians of Mexico, while its use has spread to the North American tribes in the last hundred years.

In America, hallucinogenic drugs are outlawed. Peyote is legal if its use is based on religion.

If there were a good, public reason why hallucinogenic drugs should be outlawed (doubtful), why does religion faith trump that good, public reason?

Human sacrifice in Aztec culture

The practice of human sacrifice was widespread in the Mesoamerican and in the South American cultures during the Inca Empire.

Like all other known pre-Columbian civilizations of Mesoamerica, the Aztecs practiced human sacrifice. The extant sources describe how the Aztecs sacrificed human victims on each of their eighteen festivities, one festivity for each of their 20-day months.

It’s the time of a festivity, and a group of people who became Aztecs, have selected their victim in an Abercrombie & Fitch store. The store objects.

Attention: U.S. Supreme Court: Is human sacrifice Constitutionally protected?

Supreme Court Keeps the Faith in Hobby Lobby

The U.S. Supreme Court’s Hobby Lobby case, (in) a majority opinion written by Justice Samuel Alito, stated that closely held corporations are exempt from the Affordable Care Act’s contraceptive mandate.

So, closely held corporations are exempt from any law their owners happen to believe violates their individual religious beliefs? Instead, they are free to overrule the religious beliefs of those who disagree?

I strongly advocate the separation of church and state, but I believe the intent of the First Amendment is being misinterpreted and distorted. The basic idea is to prevent any one religion from forcing itself on all others, which many religions have done and do (ala the Inquisition).

The Constitutional idea was not to give license to every claimed “religious” activity that violates civil laws and common sense, including drug dealing, medical negligence, cruelty to animals, and murder.

There are certain points that must be considered:

1) There are thousands of religions and sects around the world, each with different customs, different requirements and different prohibitions, and each claiming to represent the word of a different god or gods.

Thus religions, like laws, are man made, not god made. (Unless you believe that your god, being the only true god, intentionally made all those other gods, to give those thousands of contradictory statements, just to confuse us mortals.)

2) Being man made, not god made, religions, like laws, constantly change their requirements and prohibitions.

Many of the acts religious people consider “traditional,” were invented a relatively short time ago, some in the past century or even the past decade.

3) While religions are exclusionary, federal civil and criminal laws in America are inclusionary, covering everyone in America.

Religious laws exclude non-believers. You are expected to use peyote, carry a chicken, wear a hijaab, or refuse a blood transfusion, if you belong to the particular sect of the particular religion that demands it.

By contrast, every American, must obey, and is protected by, the current interpretations of the U.S. Constitution.

The Constitution is superior to state constitutions, which in turn, are superior to city and village laws. So-called “states rights” are granted by the U.S. Constitution, not forced by state laws.

Clearly, a line must be drawn, and the Supreme Court is having trouble drawing it. So here is my suggestion for the Justices:

U.S. civil and criminal law must take precedence over religious law.

I don’t care how strong your Aztec religious faith may be, murder is a violation of our laws. So is withholding blood from a dying person, or allowing a hospital patient to suffer or die.

So is not vaccinating an innocent child, who is too young to make his own decisions. So is refusing to allow legally mandated insurance to cover legally allowed abortions. So is walking the streets naked, where local law prohibits it, or even torturing a chicken to death.

Yes, there are laws that can be construed as targeting certain religions.

New York Penal Law 240.35
Being masked or in any manner disguised by unusual or unnatural attire or facial alteration, loiters, remains or congregates in a public place with other persons so masked or disguised, or knowingly permits or aids persons so masked or disguised to congregate in a public place; except that such conduct is not unlawful when it occurs in connection with a masquerade party or like entertainment if, when such entertainment is held in a city which has promulgated regulations in connection with such affairs, permission is first obtained from the police or other appropriate authorities.

Yikes! What should a Muslim woman do? What should “the police or other authorities do”? Does this law unnecessarily target Islam?

This kind of question is both complex and simple. It is complex because it falls into what some might consider a “gray” area. But fundamentally, it is simple. The law has but two questions to answer:

1) Do the legitimate needs of society trump the needs of the followers of any particular religion.
Answer: Yes.

2) In this particular case, are the legitimate needs of society important enough to trump the needs of Muslim women?
Answer: In each particular case, society (not any one religion or pious person) must answer that question. (In New York, is the need to prevent masked people from assembling important enough to override the religious needs of some Muslim women to cover their faces?)

Courts of civil and criminal law, not courts of religious law, will decide that question. And that is the whole point the Supreme Court seems to miss.

As we said, in our society, civil and criminal law must, by necessity, take precedence over religious law.

Can this lead to religious persecution? Yes. Every form of law can lead to some sort of persecution.

For instance, police “profiling” can prevent crime or lead to racial persecution.

Reserving the best parking places for those who display handicapped cards, helps the sick but “persecutes” the able-bodied.

In each case, society must weigh the effects of the law.

If the law accomplishes an important civil purpose, any religious accommodations must not burden non-believers.

That is what the Supreme Court should remember.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
The Ten Steps to Prosperity:

1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Federally funded, free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually. (Refer to this.)
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

Initiating The Ten Steps sequentially will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK

Long term view:
Monetary Sovereignty

Recent view:
Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

–Finish this: A federal surplus = a deficit . . .

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●The single most important problem in economics is
the gap between rich and poor.
●Austerity is the government’s method for widening
the gap between rich and poor.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Everything in economics devolves to motive,
and the motive is the Gap.

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

The U.S. dollar is disappearing from the U.S. in massive amounts. The process is called “Net Imports:”

monetary sovereignty

Back in 2011, we published, Which is better for the U.S.: Increased exports or increased federal deficit spending? Thursday, Aug 11 2011″

It quoted from a Time Magazine article by Roya Wolverson, who wrote:

Many economists think that, for the U.S. economy to get back on track, exports have to grow faster.

Virtually every economist, and the public at large, seems to believe that economic growth in enhanced by exports. And I agree.

But why is this so? After all, “exports” means we sweat and strain, using our nation’s assets, to create valuable goods and services, and send them overseas.

Why do we want to do that? Because exports of goods and services actually are imports of dollars. The greater our net exports, the greater are our imports of dollars, and this growth or our dollar supply stimulates our economy.

Very simply, increasing the dollar supply increases purchases from businesses, which grows those businesses, which increases the job supply, all of which grow our economy.

But, in the past 15 years $6 – $7 trillion dollars have left the U.S. economy. That’s close to $20,000 lost to each man, woman and child in America.

Where do we get the dollars, not only to overcome that loss of $500 billion dollars per year, but additional dollars to grow the economy?

Virtually all U.S. dollars are created by U.S. lenders, including banks. It works this way:

1. Every form of lending, for which there is a written repayment obligation, creates dollars. One example: Banks are allowed to lend a percentage (10% – 15%) of their capital. They do this merely by crediting borrowers’ checking accounts, which instantly creates dollars.

(To visualize, contrast a loan with a gift, which transfers, but does not create, dollars)

2. Banks create dollars when they obey federal instructions. When a federal agency pays a bill, it sends instructions (not dollars) to the creditor’s bank, instructing the bank to increase the balance in the creditor’s checking account. At the instant the bank obeys these instructions dollars are created.

(Thus, the federal government itself has no dollars, but being Monetarily Sovereign has the infinite ability to create and send dollar-creating instructions to banks.)

Federal spending creates dollars, and federal taxation destroys dollars. In short, federal NET spending (i.e. deficit spending) creates the dollars that are lost via Net Imports and needed for economic growth.

To finish the title sentence: A federal surplus = a deficit for the private sector.

And here is the big question: Since the private sector’s (yours and mine) ability to create dollars is limited, and the federal government’s ability to instruct banks to create dollars is unlimited, why did President Clinton run a federal surplus, and why does President Obama want to do the same? Why do they want the economy to run a deficit?

Let’s take a closer look:

Uncle Sam runs $114 billion surplus in April

Federal coffers saw a 7% increase in individual income taxes and payroll taxes, a 15% increase in corporate income taxes, and a 37% increase in money paid to Treasury by the Federal Reserve.

Aside from the fact that the federal government has no “coffers,” increases in taxes are bad for the economy.

Areas that saw the biggest drops included unemployment benefits and homeland security (both down 31%), agriculture (down 12%) and defense spending (down 5%).

Reductions in: Unemployment benefits, payments to employees of homeland security, farmers, soldiers and defense manufacturers, also are bad for the economy.

Again, since all deficit reduction steps — increased taxes and reduced spending — are band for the economy, why does President Obama, and indeed, the entire Congress want to run a federal surplus?

Equally important, why have they worked so hard to convince Americans that sending more to the government, while receiving less from the government, benefits the people? And why do the people believe it?

The people believe it because they think federal financing is like personal financing.

For you and me, deficits are bad and surpluses are good. The same is true for state and local governments and for businesses. So, to the economically innocent mind, the same must be true for our federal government.

You and I, and states and counties and cities and businesses can run short of dollars. The federal government, being Monetarily Sovereign, cannot.

And the President and Congress know it.

So why do they tell us, what has become known as the “Big Lie”?

Here’s why:
1. Surpluses weaken the economy and cause recessions and depressions.
2. Recessions and depressions are marked by unemployment.
3. Unemployment leads to lower wages for the 99% (middle and lower income/wealth/power group)
4. Lower wages for the 99% widen the Gap between the 99% and the upper 1%, and widening the Gap is the primary goal of the 1%. (The gap is what makes them rich, and the wider the Gap, the richer they are).
5. The rich are the primary contributors to the politicians, so the politicians do the bidding of the rich.

And it is just that simple.

The next time someone tells you that a federal surplus is “prudent” or good in any way, know that they are parroting the myth promulgated by the rich, to make the rich richer and you poorer.

Meanwhile, $500 billion will leave the economy this year, and as the federal deficit declines, minute by minute, you and I will lose those dollars.

A federal surplus = a deficit for the private sector (and that’s you.)

The recession clock (see below) is Ticking, ticking, tick . . .

Rodger Malcolm Mitchell
Monetary Sovereignty

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The Ten Steps to Prosperity:

1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Federally funded, free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually. (Refer to this.)
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

Initiating The Ten Steps sequentially will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
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10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK

Long term view:
Monetary Sovereignty

Recent view:
Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY