Crazy rich: The”well-oiled machine.” Saturday, Feb 18 2017 

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

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It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders..

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There is a significant difference between sanity and business acumen. 

I mention this because when the subject of Donald Trump’s sanity is broached, his defenders say, in essence, “He can’t be crazy. Look at what he has accomplished in business and in politics.”

Actually, there have been many instances of mental instability among the financially and politically successful, and the result generally has not been good.

We’ve seen this in the past — as a dictator’s or wealthy man’s power increases, often so does his madness.  His megalomania throws him into a fury if anyone dares disagree with him, no matter how obvious his error.

DONALD TRUMP PRESS CONFERENCE: A “WELL-OILED MACHINE” WHOSE WHEELS HAVE COME OFF
By Alan Ewart.

The Huffington Post: “[His] widely reported symptoms of mental instability — including grandiosity, impulsivity, hypersensitivity to slights or criticism, and an appImage result for rube goldberg machinearent inability to distinguish between fantasy and reality — lead us to question his fitness for the immense responsibilities of the office.”

The New York Times: “[His] speech and actions demonstrate an inability to tolerate views different from his own, leading to rage reactions.

His words and behavior suggest a profound inability to empathize. Individuals with these traits distort reality to suit their psychological state, attacking facts and those who convey them (journalists, scientists).

“In a powerful leader, these attacks are likely to increase, as his personal myth of greatness appears to be confirmed.

We believe that the grave emotional instability indicated by [his] speech and actions makes him incapable of serving safely as president.”

And there’s this:

How Mad was Hitler?
What motivated Adolf Hitler’s destructive behavior?
Stephen A. Diamond Ph.DImage result for confusion

According to Henry A. Murray, former director of the Harvard Psychological Clinic, the adult Hitler was a “counteractive type,” by which he meant a person primarily motivated by resentment and revence in response to prior narcissistic wounding and profound feelings of inferiority.

Pathological narcissism develops as a compensatory defense against painful wounds and inferiority feelings.

There is no question that Hitler’s personality exuded pathological narcissism or what I have called psychopathic narcissism, and may have met modern diagnostic criteria for narcissistic personality disorder.

And this:

Narcissism, disagreeableness, grandiosity—a psychologist investigates how Trump’s extraordinary personality might shape his possible presidency.
By Dan P. McAdams

It is perhaps Image result for germ phobiano psychological accident that Trump displays a phobia of germs, and seems repulsed by bodily fluids, especially women’s.

He famously remarked that Megyn Kelly of Fox News had “blood coming out of her wherever,” and he repeatedly characterized Hillary Clinton’s bathroom break during a Democratic debate as “disgusting.”

And this:

Howard Hughes’s germ phobia revealed in psychological autopsy
American Psychological AssociationImage result for howard hughes madness

Howard Hughes–the billionaire aviator, motion-picture producer and business tycoon–spent most of his life trying to avoid germs. Toward the end of his life, he lay naked in bed in darkened hotel rooms in what he considered a germ-free zone. He wore tissue boxes on his feet to protect them.

And he burned his clothing if someone near him became ill.

Lest you believe that a prosperous businessman or politician cannot be insane, by virtue of their success, check out this web site:

Top 10 Craziest Modern Dictators

Nicolae Ceausescu was the General Secretary of the Romanian Communist Party. He called himself “The Genius Of The Carpathians”.

Image result for Nicolae CeausescuHe demanded that his nearly illiterate wife be made part of the New York Academy of Sciences and the Royal Institute of Chemistry, and all scientists in Romania had to include her name in their research.

He claimed that his son, Nicu, had published several volumes on Nuclear Physics.

Rafael Trujillo was dictator of the Dominican Republic.  He thought he was God. He ordered that all churches put up a sign that read, “ God in Heaven, Trujillo on Earth.” He organized a $30 million event called the “Fair of Peace and Fraternity of the Free World”, where he appointed his daughter as Queen. He appointed his 3-Year old son as a colonel. He campaigned for his wife to be awarded the Nobel Prize for Literature, even though she was illiterate. He made a law requiring that all license plates say “Viva Trujillo”, and finally promoted his son (still very young) to General.

Idi Amin Dada was dictator of Uganda. Amin reportedly ate dissidents to his regime, or fed them to his pet crocodiles. Some of his titles were “Conqueror of the British Empire”, “President for Life”, and others. He banned all Asians from Uganda because the daughter of an important Asian family refused to marry him. He also claimed to be the King of Scotland, and apparently wrote love letters to Queen Elizabeth.

Muammar Qaddafi was the dictator of Libya.  After three years with the title “Prime Minister” he changed it to “Brother Leader and Guide of the Revolution.”

All his bodyguards are female virgins, and he claims that Libya is run through a direct democracy.Image result for crazy dictators

He once claimed that he conquered the
U.S.

He banned all Italians from Libya in revenge for the colonization of Libya during WWII.

He despised Switzerland, and wrote a UN resolution on why Switzerland should be dissolved.

Yahya Jammeh,  dictator of  The Gambia, has claimed to have mystical powers. The Gambia sponsors Witch Doctors, who have abducted about 1,000 Gambians on charges of witchcraft. His official title: “His Excellency Sheikh Professor Alhaji Dr. Yahya Abdul-Azziz Jemus Junkung Jammeh Naasiru Deen.” He claime to have discovered the cure to AIDS/HIV. He claimed that The Gambia was formerly the largest country in Africa.

Francisco Macias Nguema was PresideImage result for Francisco Macias Nguemant of Equatorial Guinea. He closed down hospitals in favor of his Witch Doctor Ancestry.

He banned the word “intellectual” and banned fishing.

He changed the national motto to “There is no other God than Macias Nguema.” He killed the head of the national bank and hid all the money of the National Treasury in his house.

On Christmas, 1975, he ordered 150 opponents executed in a football field to the tune of “Those Were The Days.”

Saparmurat Niyazov was the President for Life of Turkmenistan. He is most famous for naming months after himself, his family and his books. He renamed bread after his mother, and built a huge Ice Castle in the middle of Turkmenistan, a desert country. He banned make-up, gold teeth and lip syncing at concerts. He demanded that his book be given equal status as the Quran in Mosques. All employees must memorize the book to keep their jobs, and you could not get a driver’s license unless you memorized his book.

President For Life Francois “Papa Doc” Duvalier was dictator of Haiti. When Clement Barbot tried to overthrow Duvalier in a coup, Francois issued a massive search for Barbot. When the police couldn’t find him, Duvalier believed he had turned into a black dog.Image result for Francois “Papa Doc” Duvalier

He then ordered the death of all black dogs in Haiti. Eventually, when Barbot was caught and executed, Duvalier kept his head for Voodoo.

He made Haitians recite a prayer every day, which went like this: “Our Doc, who art in the National Palace for life, hallowed by Thy name by present and future generations. They will be done in Port-au-Prince as it is in the provinces. Give us this day our new Haiti and forgive not the trespasses of those anti-patriots who daily spit upon our country…“.

He once said that he controlled Lee Harvey Oswald to shoot JFK with voodoo.

Mobutu Sese Seko was the President of Zaire. He made a law saying that TV in Zaire cannot mention anybody but him by name. He banned all leopard print hats from Zaire, except for his own. He commanded that all evening news begin with a scene of him descending from the heavens. He chose many names for himself, including one that translates in English to “the all-powerful warrior who, because of his endurance and will to win, will go from contest to contest leaving fire in his wake.” He jailed anyone who did not have an African name.

Kim Jong-Il, of North Korea took power in 1998. Kim travels with his “Pleasure Squad”, a group of beautiful women. Kim is praised as the “Creator of the Universe.” Kim is praised as having had a supernatural birth.Image result for kim jong-un

He claims he invented the hamburger, and that he is the greatest golfer in history. He attempted to rid the capital of North Korea, of short people, because he was angry about his height. Schoolchildren are taught that he never defecates.

He had two South Korean directors kidnapped to kick-start North Korea’s film industry by forcing them to make a remake of Godzilla, only Communist. He claims that North Korea is a paradise, where nobody ever experienced poverty, and where everybody leads a happy life.

What is the commonality among all these dictators? They all had met modern diagnostic criteria for narcissistic personality disorder. They are megalomaniacs.

And what is the first act of the dictator?  To destroy the media that oppose him. Here is Donald Trump’s latest tweet:

The FAKE NEWS media (failing @nytimes, @NBCNews, @ABC, @CBS, @CNN) is not my enemy,  it is the enemy of the American People!

Understand? All the “FAKE NEWS” media are not his enemy. All those “FAKE NEWS” media are your enemy.

Draw your own conclusions.

Rodger Malcolm Mitchell
Monetary Sovereignty

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ECONOMICS LAWS

•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.

•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.

•The more federal budgets are cut and taxes increased, the weaker an economy becomes..

•No nation can tax itself into prosperity, nor grow without money growth.

•Cutting federal deficits to grow the economy is like applying leeches to cure anemia.

•A growing economy requires a growing supply of money (GDP = Federal Spending + Non-federal Spending + Net Exports)

•Deficit spending grows the supply of money

•The limit to federal deficit spending is an inflation that cannot be cured with interest rate control. The limit to non-federal deficit spending is the ability to borrow.

•Until the 99% understand the need for federal deficits, the upper 1% will rule.

•Progressives 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 the rich and the rest.

•Austerity is the government’s method for widening the Gap between the rich and the rest.

•Until the 99% understand the need for federal deficits, the upper 1% will rule.

•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY

Ten Steps to Prosperity: Step 8: Tax the very rich more (dictatorship warning) Friday, Feb 17 2017 

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

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It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders..

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There was a time when I argued against increasing anyone’s federal taxes. After all, our Monetarily Sovereign federal government has the unlimited ability to create its own sovereign currency, the dollar, which it does ad hoc, simply by spending.

Thus, the federal government neither needs, nor uses, nor even retains tax dollars. The tax dollars you send to the federal government disappear from the money supply and so, functionally are destroyed.

(This is unlike state and local tax dollars, which remain in the money supply, are retained by the state and governments, and are necessary for state and local government spending.)

Because federal taxes leave the money supply, they reduce Gross Domestic Product, and they negatively affect the entire economy. Every dollar you send to the federal government is a dollar removed from the economy, impoverishing the economy.

Every dollar the federal government deficit spends is added to the money supply, enriching the economy.

Deficit reduction (aka “austerity), depletes our economy. Applying deficit reduction to grow our economy is like applying leeches to cure anemia. 

All but one of the Ten Steps to Prosperity — this one — involve either federal tax reduction or federal spending increases. They all — but this one — increase the money supply, and thereby, grow the economy.

Since all the federal tax dollars paid by anyone, including the rich, disappear from the money supply, and therefore are recessive, why does this step, Step 8., involve increasing taxes on the rich?

The single most important problem facing America and the world — even more important Image result for poor in americathan the suicidal push to reduce the money supply — is the large and growing Gap between the rich and the rest.

That large and growing Gap is a direct threat to Democracy, for it gives the rich excessive power to bribe our politicians, to own our media, and even to influence universities and their economists.

In short, the Gap facilitates the dictatorship of the very rich.

We see it happening again and again in America, with the Supreme Court repeatedly expanding the 1st Amendment’s free speech rights to include greater amounts of money.

Freedom of spending grew from Buckley v. Valeo (limits on election spending are unconstitutional), to First National Bank of Boston v Bellotti (corporations can contribute to ballot initiative campaigns) to Citizens United v FEC (corporations and unions can contribute unlimited funds to political campaigns).

Although some technical spending limits still remain, the true function of these decisions is to give the rich the unlimited power to influence not only elections but the law.

That is the definition of a dictatorship: Complete control over the law.

And we have come dangerously close to crossing that line if we are not already there.

In a dictatorship, the people are powerless. All branches of government answer to one man or one small group.

In a dictatorship, the presidency, the congress, the supreme court and the local governors are dominated by one party, and that party is dominated by one man.

Though supposedly above partisan politics, the courts become political organizations, seldom ruling against the dominant party.

A dictator typically takes action against any news media that disagImage result for dictatorshipree with him, or which publish unflattering stories. This action can include lawsuits, expulsion from meetings, claims that the media provides “fake news,” and other forms of disparagement.

It can graduate to arrests, imprisonment or other reprisals.

As it true with all dictatorships, those close to the dictator are the rich and privileged. Laws don’t apply to them, except when they fall into disfavor, in which case they are summarily dismissed.

Though those appointed to high office are in sympathy with the dictator, they often are incompetent,  or they disagree with the putative purpose of the office.

The assigned head of a veteran’s benefit organization might have no knowledge of veteran’s affairs or organization skills; the head of an ecology department might deny global warming; the head of an education department might oppose educating the poor; the head of a justice department might be a bigot opposed to justice.

In a dictatorship, family members are given high posts, and those close to the dictator reap fortunes from their influence. The dictator becomes massively wealthy from the laws he creates.

Dictators claim there is an emergency — a danger only they can deal with.

One commonality among dictatorship beginnings: The future dictator often is greeted with open arms as the person who will save the people from some nemesis, whether it be poverty, aliens, or a previous dictator.

Dictators facilitate this attitude by creating scapegoats: Foreigners, people of a certain religion, color or belief, or other politicians. Hatred and fear are the dictator’s greatest weapons.

Hatred and fear allow the people to blame the scapegoat for their misery, rather than blaming the dictator — or themselves.

In accepting the dictator, the people do not realize they are creating their own hardship. Later, when it is too late, and they have surrendered their power to the devil, do they and their children begin a seemingly endless period of suffering.

When they lose all ability to extricate themselves from the pit they have dug, the people enter a period of “hopeless justification.” They tell themselves there is nothing they can do about it, and anyway, things could be worse, or were worse in the past.

As their lives deteriorate, they stop trying, stop hoping, stop thinking.

Though dictatorship thrives on an income/wealth/power Gap between the chosen few and the general populace, it begins with any one of the Gaps: Income, or wealth,  or power.

The process is:

  1. A Gap is created
  2. The people feel the negative effects of the Gap
  3. Resentment builds
  4. A savior promises to narrow the Gap
  5. The people give the savior their power
  6. Too late, the people realize the savior has enslaved them.
  7. The dictator demands ever more appeasements from the ever more destitute and powerless people.

Because dictatorships always begin with a Gap, our currently large and growing Gap is the greatest danger to our democracy and our lifestyles.

Narrowing the Gap requires not just lifting the bottom but trimming the top.

It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning more than $10 billion a year.

Pick any acceptable Gap (100 to 1? 1000 to 1?), and the lowest paid American would have to receive an unrealistic boost to narrow the Gap to an acceptable level.

To trim the top, Step 8 proposes that we increase tax rates on the very rich, and not just the rates, but the overall tax system. Their income that is not taxed or lightly taxed, should be fully taxed; their wealth should be taxed; their inheritances should be taxed without exceptions.

Unless we understand and act against the growing Gap, we will continue the way we are going, and slide deeper, ever deeper, into the black hole of dictatorship.

America will cease to be a democratic nation.

Rodger Malcolm Mitchell
Monetary Sovereignty

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The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

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 The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich can afford better health care than can the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Guaranteed Income)) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONE Five reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefitting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and business taxes would be a good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY

Ten Steps to Prosperity: Step 7. Increase the standard income tax deduction, annually. Wednesday, Feb 15 2017 

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

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It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders.
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We begin with four facts:

  1. Unlike state and local governments, which are monetarily non-sovereign, the Monetarily Sovereign U.S. government neither needs nor uses tax dollars. It creates all the dollars it needs and uses, ad hoc, each time it makes a payment.
  2. Tax dollars paid to the federal government disappear from the money supply. They effectively are destroyed.Image result for destroy money
  3. Smaller economies have a smaller money supply than do larger economies, so for an economy to grow, its money supply must grow.
  4. A large and growing Gap between the rich and the rest damages American democracy by allowing a select few to be masters of the vast majority.

The first three statements tell us federal taxes do not fund federal spending, and they inhibit economic growth. The fourth statement tells us the Gap is the single biggest economics problem facing America and the world.

Why does the federal government collect taxes?

History: Monetary Sovereignty is not an absolute. It exists in degrees. Our federal government has not always been as Monetarily Sovereign as it is today. When it put itself on gold or silver standards, it voluntarily limited its own ability to create dollars by the amounts of gold or silver it owned.  With dollar-creation limited, the government had to levy taxes in order to obtain dollars. Federal taxes are a relic of those days.

Economic ignorance: Virtually all governments, even those that are Monetarily Sovereign, levy taxes, because they always have, and so the populace’s understanding of Monetary Sovereignty is limited.

Control: The power to tax is the power to control. Tax laws help governments control the private sector, by favoring certain industries, companies, and individuals. The laws also favor the rich over the rest, for it is the rich who write the laws. Even though Monetarily Sovereign governments do not need to obtain their sovereign currencies from outside, the rich wish to continue taxation so as to retain control over the populace.

Since federal taxes do not fund federal spending, and they inhibit economic growth, do they have any economic value at all?

Some claim that federal taxes create a demand for U.S. dollars, because the federal government (and local governments) require payment of taxes in dollars. While this may have some truth, the real value of U.S. dollars does not come from taxes but rather from the dollar’s worldwide acceptability in the payment of all forms of debt.

This acceptability is based not on taxes but on the full faith and credit of the U.S. government, which includes:

A. –The government will accept only U.S. currency in payment of debts to the government
B. –It unfailingly will pay all it’s dollar debts with U.S. dollars and will not default
C. –It will force all your domestic creditors to accept U.S. dollars, if you offer them, to satisfy your debt.
D. –It will not require domestic creditors to accept any other money
E. –It will take action to protect the value of the dollar.
F. –It will maintain a market for U.S. currency
G. –It will continue to use U.S. currency and will not change to another currency.
H. –All forms of U.S. currency will be reciprocal, that is five $1 bills always will equal one $5 bill and vice versa.

Anyone can create money. You and I could create our own versions of money. The only problem would be our money’s acceptability, because our full faith and credit is limited.

Some also claim that federal taxes defend against inflation by reducing the money supply. However, taxes offer a very poor defense against inflation because taxes are far too slow to react (When will Congress pass a new tax law, when will the new taxes be collected?), far too political (Which taxes will be raised, lowered or newly created?) and not incremental (How much should each tax be changed?)

In contrast, the Federal Reserve controls the demand for dollars by setting interest rates, which it can do instantly and in small increments so as not to overshoot or undershoot its inflation targets.

On balance, federal taxes have very little practical value, and certainly not enough to warrant the massive damage they do to economic growth.

This leads us to the questions: Which federal taxes should be reduced and by how much? Our answer to the first question: Reduce taxes that do the most damage to our economy.

Step #1 of the Ten Steps to Prosperity suggests we eliminate FICA. It is the most regressive tax in America and as such, it widens the Gap between the rich and the rest.

Step #6 suggests we eliminate business taxes, because our economy is measured by business success, and businesses provide the populace with Gap-narrowing dollars.

As the next Step, we suggest #7, Increase the standard income tax deduction, annually.

When paying your income taxes, you can itemize your deductions, or you can claim a standard deduction of $6,350 for single taxpayers and $12,700 for married taxpayers filing joint returns.

The standard deduction reduces the income on which you must pay tax. It has risen slowly in the past 20 years, in response to inflation.  In 1997, it was $4,150 for single taxpayers and $6.900 for married taxpayers filing joint returns.

This brings us to the second question: How much should income taxes be reduced (i.e. How fast should the standard deduction be increased, annually?)

We can debate specific numbers, but some expertise in tax statistics would help. An instant suggestion would be to double the standard deductions every year for 15 years, and then increase them only in line with inflation. That would yield this table:

STANDARD DEDUCTION FOR: SINGLES || MARRIED
After five years: $200,000 || $400,000
After ten years: $6,500,000 || $13,000,000
After fifteen years: $200,000,000 || $400,000,000

At this point, only the very wealthiest few among us would be subject to income tax payments.

Summary: Federal taxes punish taxpayers and harm the economy. The federal government neither needs nor uses those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.

Cutting FICA (Step #1) and business taxes (Step #6) would be good early tax steps.

Annual increases in the standard income tax deduction (Step #7) would further narrow the Gap between the rich and the rest.

Rodger Malcolm Mitchell
Monetary Sovereignty

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The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

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 The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich can afford better health care than can the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Guaranteed Income)) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONE Five reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefitting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and business taxes would be a good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY

Ten Steps to Prosperity: Step 6. Eliminate federal taxes on business Tuesday, Feb 14 2017 

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

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It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders.

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This is the sixth in the series of posts describing each of the Ten Steps to Prosperity, the previously described Steps being:

Eliminate Fica (1)
Federally funded Medicare and long-term care for everyone (2)
Monthly economic bonus for everyone (3)
Free education for everyone (4)
Salary for attending school (5)

Are these the words you would use to describe a “healthy economy”?

  1. Business profits are high
  2. Sales of goods and services are strong
  3. Goods and services are plentiful and easily available
  4. Unemployment is low
  5. Salaries are high
  6. Poverty is low
  7. Homelessness is low
  8. Everyone has access to good health care
  9. The elderly and disabled are well cared for
  10. The gap between the rich and the rest is narrow
  11. Inflation is controlled
  12. The stock market is rising
  13. The infrastructure is well-maintained
  14. Taxes are low
  15. ________________________________

There may be other words you would use. If so, feel free to add them.

Now scroll down the list and tell me which items are positively affected by federal taxes on business.

Do federal business taxes help increase profits, sales, or the availability of goods and services? Of course not.

Do federal business taxes help reduce unemployment, increase salaries, or reduce poverty and homelessness? No way.

Do federal business taxes provide you with health care, protect the elderly, close the gap between the rich and the rest, control inflation or boost the stock market? Not in this world.

Do federal business taxes maintain the infrastructure or reduce other taxes? Certainly not.

So what the heck do federal business taxes accomplish?

The U.S. is Monetarily Sovereign.  It never runs short of its own sovereign currency. It neither needs nor uses tax dollars. Even if all federal tax collections fell to $0, the federal government could continue to spend, forever.

And surely, taking tax dollars from our businesses does not help them to be more competitive against foreign companies.

Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars).

Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce your personal income.

So again, what the heck do federal business taxes accomplish?Image result for ball and chain

Clearly, federal business taxes act as a drag on economic growth.

We discussed the elimination of federal business taxes at New York Times parrots the same old myths about corporate taxes.  If you click the link you will see:

New York Times
Reform and Corporate Taxes

Published: February 22, 2012

The corporate tax system is a mess. The United States has one of the highest corporate tax rates in the world, but too many businesses still don’t contribute their fair share of revenue, in large part because of numerous loopholes, subsidies and other opportunities for tax avoidance.

The Times speaks of a “fair share” of taxes. Does the Times want you to believe that taking more dollars from businesses somehow would be “fair” — that if only businesses had fewer dollars to spend, the economy would thrive?

Or does the Times want you to believe that if you had fewer dollars to spend, that would help the economy to grow? Either point would be ridiculous.

Because federal business taxes pay for nothing and negatively affect the economy, eliminating them should be a no-brainer. But there are two problems:

Problem I. What is a business?

A business is not a “thing.” A business is a system of laws. Businesses already have been given substantial tax benefits, and if taxes on businesses were completely eliminated, most Americans would declare themselves a business as a tax-saving device.

Of course, the federal government could tweak its tax laws to require businesses to have real business purposes, or use other devices to prevent everyone from converting to business status.

But, why?  The federal government has no need for federal tax income. The federal government creates dollars ad hoc, every time it pays a bill. And when you pay your federal taxes, those dollars instantly disappear from the money supply. They effectively are destroyed.

The elimination or dramatic reduction of all federal taxes would be a very good thing for the U.S. economy. You would retain more money to spend and save, and businesses would retain more money to invest and to pay in salaries and dividends to shareholders. It would be a “win, win, win, win, win” for you and for the entire economy.

So why not? Here’s why:

Problem II. The Public Has Been Brainwashed by the Rich

The primary goal of the rich is to widen the Gap between them and the rest of us. The Gap is what makes them rich. Without the Gap, no one would be rich (We all would be the same), and the wider the Gap, the richer they are.

And the rich run America.

Most federal deficit spending benefits the non-rich. It narrows the Gap, so the rich promulgate the myth that federal finances are like personal finances, with income being necessary to pay for spending.

But, the federal government neither needs nor uses income. It is a money machine.

Nevertheless, the rich opt for taxes, but not any taxes. The rich want regressive taxes like income taxes, sales taxes and FICA, all of which punish the non-rich and so, widen the Gap.

One innocently might think that business taxes have more effect on the rich, but in fact, businesses provide the rich with many opportunities for tax deductions. (You can’t deduct for your meals, travel expenses, living expenses, educational expenses, etc., but business owners and executives can.)

Most importantly,  collecting business taxes supports the myth that federal taxes actually pay for something.  

They don’t.

The rich are concerned that if businesses didn’t pay taxes, you would complain that this isn’t “fair,” or worse yet, begin to realize that federal taxes are unnecessary. Then, you might demand that personal taxes be eliminated, too.

That would narrow the Gap, making the rich less rich, and depriving them of their large supply of underpaid servants. (Yes, sorry. That’s you.)

The rich pay propaganda organizations like the Committee for a Responsible Federal Budget (CRFB), pay the politicians, pay the media, and pay the university economists to promulgate such nonsense as “There is no such thing as a free lunch,” and federal deficits are “unsustainable,” and the federal debt is “a ticking time bomb,” and “money printing” will cause a hyperinflation like Zimbabwe” — none of which is true.

The idea is to convince you that federal taxes are necessary, in short, “the Big Lie,” so you will believe there isn’t enough money available for the social spending that benefits you. (That is why you will see fake scare articles telling you that Social Security and Medicare are insolvent.)

The rich want you to struggle day-to-day, worrying about how you will pay for your children and for your own old age, desperate and begging for any handouts from the rich. Meanwhile, the rich who own you, laugh all the way to the bank.

So yes, business taxes should be eliminated, and yes, it would greatly benefit you.

But the rich are afraid that will wake you up to the fact that all federal taxes could be eliminated, which would narrow the Gap — something the rich loathe.

Rodger Malcolm Mitchell
Monetary Sovereignty

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The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

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 The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich can afford better health care than can the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Guaranteed Income)) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONE Five reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefitting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be a good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY

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