The scam even YOU will fall for

Here is a scam that even those who understand Monetary Sovereignty will fall for:

News article: President Donald Trump says the government might start cutting checks again, but this time, not for COVID-19 relief or tax refunds. Instead, the money could come straight from the tariffs his administration has slapped on foreign imports.

In his words, “We have so much money coming in, we’re thinking about a little rebate.”

And by “little,” he means from a pool of more than $100 billion in tariff revenue already collected this year.

Sounds good, right? Some of the dollars those tariffs are taking out of your pocket will come back in the form of rebates. What could be wrong with that?
Dripping only ONE drop of water into the ocean. Not more than one drop.
This illustration actually exaggerates the impact of tariffs on the federal government’s ability to spend. The ocean doesn’t contain an infinite amount of water, but the government can create an infinite number of dollars.

It’s 100% misleading.

There is no “pool of tariff revenue.” The federal government has infinite dollars.

Every dollar that comes to the government disappears into an infinite pool of funds.

Fed Chairman Alan Greenspan: “A government cannot become insolvent with respect to obligations in its own currency. There is nothing to prevent the federal government from creating as much money as it wants and paying it to somebody. The United States can pay any debt it has because we can always print the money to do that.”

Fed Chairman Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. It’s not tax money… We simply use the computer to mark up the size of the account.

Fed Chairman Jerome Powell stated, “As a central bank, we have the ability to create money digitally.

The St. Louis Fed: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e., unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational.” 

If Trump wanted to send a “rebate” to Americans, he could do it tomorrow, simply by having his acquiescent Congress vote for it.

There, quite literally. is no limit to how much the federal government can send to anyone and everyone, today, tomorrow, or any time.

Then there is this nonsense:

The US government is raising record-high revenue from tariffs, thanks to President Donald Trump’s embrace of new import levies. The White House may exaggerate the potential, but independent budget analysts agree the new tariffs may bring trillions of additional dollars into government coffers over a decade.
The United States government has the potential to collect US$2trn or more in tariff revenue for its coffers in the next decade from President Donald Trump’s new import levies, according to economic and budget researchers.

Since his second presidential term began in January, Trump has ordered a series of new import tariffs on a global, per-country and per-item basis. Among the president’s stated goals is to raise enough money to offset, or even eliminate, federal income taxes.

The independent analyses do not envision any possibility that tariffs, even under the highest plausible outcome, can replace the income tax. The US collects approximately US$2trn in income taxes annually.

There are no “coffers.”

This situation is similar to the ocean boasting about a tiny thimbleful of water being added to it.

However, that analogy isn’t quite accurate because even the ocean doesn’t have an infinite supply of water, while the U.S. government has an unlimited capacity to create dollars.

The government has the power to create a trillion, trillion, trillion dollars today, if it chooses to, simply by pressing a computer key.

Therefore, the government does not need to “raise” money to eliminate federal income taxes; it could eliminate those taxes immediately.

And this:

Howard Lutnick: “The tariff revenues are amazing — $700 BILLION a year. That’s just net new money the government never had before. You take that for ten years, that’s $7 TRILLION.”

An abject lie. The federal government has infinite money. The mythical $7 TRILLION would be taken from the private sector and disappear.

The purpose of federal income taxes is not to supply the federal government with money. Instead, the purposes of federal taxes are:

  1. To control the economy by taxing what the government wishes to discourage (Examples: “Sin taxes on cigarettes, liquor, etc.)  and by giving tax breaks to what the government wishes to reward (Examples: Tax breaks for charitable contributions, and tax loopholes for the rich.)
  2. To assure demand for the U.S. dollar by requiring dollars to be used for tax payments.

Unlike state and local governments, which rely on tax dollars, the federal government does not need or use tax revenue.

Rather than taking tariff dollars from the public, the federal government should simply vote to eliminate poverty by funding comprehensive, no-deductible health care insurance and generous Social Security benefits for every man, woman, and child in America.

No, this wouldn’t cause inflation any more than Trump’s so-called “rebates” would. Inflation is caused by a shortage of essential goods and services, and it can be alleviated through federal spending to address those shortages.

At long last, when will the media, the politicians, and the economists acknowledge the federal government’s infinite supply of dollars?

God, this is so frustrating.

Rodger Malcolm Mitchell

Monetary Sovereignty

Twitter: @rodgermitchell

Search #monetarysovereignty

Facebook: Rodger Malcolm Mitchell;

MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell;

https://www.academia.edu/

……………………………………………………………………..

A Government’s Sole Purpose is to Improve and Protect The People’s Lives.

MONETARY SOVEREIGNTY

An evaluative prediction from 9 years ago, spot on.

Nine years ago, I wrote the following posts: Will our next President be a psychopath?  and A psychopath slipped into the White House . . .

They showed you that Donald Trump was (and still is) a clinical psychopath.

The second post covered the Robert Hare Checklist of Psychopathy Symptoms, which includes 20 symptoms rated on a scale from 0 to 2.

(Spoiler alert: I concluded that Trump exhibits all 20 symptoms.) If you go to the post, you can examine those symptoms and see whether you agree with my analysis.

I just read, “What If We Could Treat Psychopathy in Childhood?” in the July/August edition of Scientific American Magazine (New strategies help to reduce callous and unemotional traits in children, guiding them toward productive lives) By Maia Szalavitz edited by Madhusree Mukerjee

Here are a few excerpts, along with my comments.

Lillyth Quillan knew almost immediately that something was wrong with her baby. At around eight months old with eight sharp new teeth, he began deliberately biting her breast as she fed him, then looking her in the eyes and laughing.

Even though she cried out and pulled him away for significant stretches of time, whenever she returned to nursing, he’d bite again—and then snicker. Within days she had to switch to bottle feeding.

Quillan’s son, Alex (his name has been changed for privacy), was almost expelled from preschool because he repeatedly hurt other children. In middle school he began stealing and selling his parents’ electronics. He would pretend to hug his mom, then headbutt her instead.

“I remember hitting my mom as a kid,” Alex says. “I know I shouldn’t have enjoyed it, but at the time, I did.” He adds, “If you’re looking for a reason, I wish I had it.” By high school he was using a gun to commit armed robberies.

According to Donald Trump’s own accounts and biographies, he was disruptive, aggressive, and hard to control as a child. He reportedly misbehaved frequently, and his parents became concerned about his behavior and lack of discipline.

At age 13, after some behavioral problems, his parents decided to send him to a military boarding school to instill discipline and structure.

The couple tried all types of discipline short of corporal punishment. They saw counselors, psychologists and psychiatrists; wasted thousands of dollars on brain scans; got diagnoses of attention deficit hyperactivity disorder and Asperger’s syndrome; and tried medications, therapies and special education.

Nothing worked.

Finally, when Alex was 14, Quillan told her own therapist that she thought her son was a sociopath. The therapist said such terms weren’t used to describe children—but she diagnosed him with conduct disorder, which can be a precursor to psychopathy in adults.

Conduct disorder is characterized by defiance of rules, aggression toward people or animals, and ongoing cruelty such as bullying.

These three characteristics — defiance of rules, aggression toward people or animals, and ongoing cruelty such as bullying — perfectly define Trump.
The type that Alex turned out to have comes with so-called callous-unemotional (CU) traits and is seen in up to 2 percent of children. CU traits—a lack of empathy and generally low emotional response—can be caused or exacerbated by child abuse or neglect, but genetic predispositions alone can also spur their development.

Separating children from their parents and reveling in the harshness of the “Alligator Auschwitz” (Alcatraz) symbolize Trump’s lack of empathy.

When they appear as early as they did in Alex’s case, they are overwhelmingly driven by genetics and more likely to develop into adult psychopathy. (At least one relative on each side of Alex’s biological family seems to have some of these traits.)

According to reports, Donald’s father, Fred Trump, modeled ruthlessness and dominance, teaching Donald to view kindness as a sign of weakness.

He was hard-driving, ambitious, controlling, authoritarian, and demanding.

Success was measured almost entirely in financial or competitive terms, emotionally cold, practical to the point of ruthlessness, and not nurturing.

Fred promoted a clean image but was involved in questionable practices (e.g., racial discrimination in housing). This duality may have influenced Donald’s flexible morality and image obsession.

Donald’s mother, Mary Anne, reportedly prioritized appearances and social status.

She was emotionally distant. Her fascination with status and pageantry helped shape Donald’s later obsession with fame, wealth, and image.

Psychopathy sits at the uncomfortable intersection of mental illness and morality, with symptoms such as cruel behavior and remorselessness that inherently raise questions about the line between medicine and criminal law.

Television serials may dwell on the sadistic criminal, but research suggests executives and politicians also have high rates of psychopathic traits.

People with psychopathy can carry out cold, calculated crimes and cons that require significant planning, but they may also engage in wildly impulsive aggressive behavior.

They can understand the perspectives of other people well enough to manipulate their emotions but lack the intuitive emotional empathy that would help them care about causing harm.

Most disturbing, unlike people with classic psychiatric illnesses such as schizophrenia, people with CU traits appear socially typical and may even be charismatic.

Trump has become the MAGA cult leader, not because of his intellect but because of his personal charisma.

Most MAGAs, know he is a liar, a cheat, and an incompetent, but they don’t care, because they feel they need him (even when he is hurting them, personally.)

That hypnotic spell is beginning to wear thin, as more people begin to resent looking like fools for supporting Trump.

According to a study published in 2021, among people imprisoned in the U.S., up to one quarter of men and up to 17 percent of women meet the criteria for psychopathy.

The condition is typically diagnosed based on a measure developed by psychologist Robert D. Hare.

Psychologist Christopher Patrick of Florida State University and his colleagues, divides psychopathic traits into three domains: boldness, meanness and disinhibition. The combination of fearlessness, callousness and remorselessness is unique to psychopathy.

Callous and unemotional traits are associated with alterations in the brain that impair the individual’s ability to experience sensations and emotions—especially negative ones—in themselves and in others. People with these characteristics have a reduced ability to feel pain.

Trump's campaign has given no official info about his medical care following assassination attempt | PBS News
The bullet took part of his ear, but he didn’t feel the pain. He doesn’t feel other people’s pain and suffering, either.

In 2012 Jean Decety and his colleagues at the University of Chicago first showed that teens with CU traits have higher thresholds for their own pain and abnormal brain responses to images of other people in pain.

The researchers also measured brain-wave responses using electroencephalography (EEG) as these teens viewed pictures of others in painful situations.

Those with high levels of CU traits perceived others as having less pain than the other participants estimated. 

Alex says that when he was a child, he sometimes saw hitting his mother as being “playful.”

But, he adds, “If you flick my hand, I’m going to say ‘ow,’ but obviously it doesn’t hurt.” He literally did not perceive her pain.

He shows cruelty towards immigrants and political opponents, which does not bother him. He lacks empathy and compassion for others.

Psychopaths, despite their callous and unemotional traits easily make friends and—at least initially—seem charming.

Attention and focus are also aberrant in people with psychopathy.

Once CU children or psychopaths zero in on something they want to obtain or achieve, they tend to have an extremely restricted view of the world—so much so that they lose awareness of the potential for harm to themselves or others.

Trump appears indifferent to the people he hurts; their well-being does not seem to concern him.

“It’s like this ultrafocused attention on reaching a goal,” says neuropsychologist Inti Brazil of Radboud University in the Netherlands.
Trump Visits ‘Alligator Alcatraz’ Migrant Facility in Florida
Ron, Alligator Alcatraz is a mosquito-infested oven of a hell hole. Who cares that these guys haven’t been convicted of a crime. It’s perfect.

Viding, the developmental psychopathologist at University College London, for example, recalls working with a child who ritually killed ducks.

She describes it as a kind of habit for the child, resembling the type of obsessive interest and rigidly patterned behavior seen in some autistic children.

Those with CU traits easily make friends. They tend, however, to see relationships as ways to exert poweror get other things they want, not as reciprocal connections.

Callous-unemotional (CU) children deliberately violate laws and conventions. It is extraordinarily difficult to lovingly parent a child who doesn’t care about harming you or even enjoys it.

Yes, Donald Trump meets all the criteria for psychopathy. He is open about his callous disregard for human life.

However, what do psychologists say about his supporters—the voters, Republicans, and administration officials who lie on his behalf? What kind of individuals are most likely to follow a psychopath?

I posed this question to ChatGPT, and here is the response I received:

Psychologist Bob Altemeyer researched what he called Right-Wing Authoritarianism (RWA) — not necessarily politically right-wing, but referring to people who: Submit to strong leaders, aggressively support those leaders against perceived enemies, and conform rigidly to group norms.

These followers tend to prefer black-and-white thinking, be uncomfortable with ambiguitym feel threatened by outsiders or change, and are especially vulnerable to charismatic, manipulative leaders—including psychopaths.

Translation: Followers look to Trump to save them from “evil” (his favorite epithet) immigrants and Democrats.

Latino children crammed in a box car
We don’t know where our parents are.

They believe the world is a competitive place where some groups should dominate others.

Translation: “My group should dominate all other groups.”

They are more likely to support leaders who show dominance, even cruelty, express contempt for the weak, violate norms to achieve power, and see psychopathic traits (e.g. ruthlessness, lying, manipulation) as signs of strength, not pathology.

Kidnap people ruthlessly from the streets, without trials, tear apart families, separate children, and imprison them in “Alligator Auschwitz” (or Alcatraz), then mock their suffering.

Some voters rationalize obvious lies, cruelty, or incompetencefrom a leader because they have committed their identity to that leader or movement. Admitting the truth would create psychological pain (cognitive dissonance).

They reinterpret facts to preserve self-image (“He’s a strong leader,” “The media is lying”), and this makes them stick with psychopaths even when confronted with overwhelming evidence.

Despite his losing over 60 trials, with no credible evidence found, Trump’s followers continue to repeat the false claim that the election was stolen.

Psychopathic leaders often create closed information loops: “Don’t trust the press.” “Only I tell the truth.” “We’re under attack.”

This isolates followers from alternative viewpoints, fostering cult-like loyalty. Social media algorithms, propaganda outlets, and partisan bubbles all intensify this.

Translation: Their only news comes from echo chambers like Fox News. Any news source that presents facts contradicting the party line is met with anger: “Immigrants (especially black- or brown-skinned) rape your women. They take your jobs. They commit violent crimes. I will Make America Great Again.”

Disempowered or economically anxious people may seek a “savior” figure who promises to punish the elites, break rules, restore lost status or identity.

Psychopathic leaders often position themselves as outsiders who will smash the system. This appeals to the alienated or resentful.

Examples: I will “drain the swamp” (despite him actually being the swamp). “They will not replace us.”
The “dark triad” in culture (Psychopathy, narcissism, and Machiavellianism) can become normalized or valorized, especially when media (i.e. Fox News et al) glamorizes antiheroes and rule-breakers. political culture rewards dominance over cooperation.

Followers mistake pathology for power, and cruelty for competence.

SUMMARY

Psychopathic leaders need willing followers. The psychology of those followers is shaped by fear, group identity, desire for order, emotional manipulation, and greed.

Followers are psychologically primed to respond to authority, charisma, threats, and promises of glory.

Sources: Chat GT; Bob Altemeyer – The Authoritarians; Erich Fromm – Escape from Freedom; Martha Stout – The Sociopath Next Door; Philip Zimbardo – The Lucifer Effect; Karen Stenner – The Authoritarian Dynamic; John Dean – Conservatives Without Conscience
 

Rodger Malcolm Mitchell

Monetary Sovereignty

Twitter: @rodgermitchell

Search #monetarysovereignty

Facebook: Rodger Malcolm Mitchell;

MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell;

https://www.academia.edu/

……………………………………………………………………..

A Government’s Sole Purpose is to Improve and Protect The People’s Lives.

MONETARY SOVEREIGNTY

The “unsustainable” federal debt

If you type “unsustainable federal debt” into your search bar, you will see this: (Try it)

Implications of Unsustainable Debt
1. Economic Growth Risks: Rising debt levels can lead to slower economic growth as more government resources are allocated to interest payments rather than productive investments.

2. Increased Borrowing Costs: As debt accumulates, the government’s borrowing costs may rise, crowding out investments in other critical areas such as infrastructure and education.

3. Potential Default: If corrective actions are not taken, the U.S. could face a situation where it defaults on its debt obligations, either explicitly or through inflationary measures.

Experts suggest that without significant fiscal reforms, the U.S. government may face a fiscal crisis within the next 20 years.

Recommendations for Addressing Federal Debt To mitigate the risks associated with unsustainable federal debt, policymakers are urged to develop strategies that include:
*Reforming Spending: Addressing the key drivers of federal spending, particularly in healthcare and social programs, to align expenditures with revenues. 
*Increasing Revenues: Exploring options to enhance tax revenues, such as eliminating certain tax deductions and increasing corporate and individual income taxes.
*Implementing Fiscal Policies: Establishing a comprehensive fiscal policy framework that prioritizes long-term sustainability over short-term gains. 

Not one sentence in the above is true. Together, they form what is widely known in economics as “The Big Lie.”

It’s a series of lies that may not be the result of malevolence; it may just be ignorance. Either way, it’s wrong and harmful.

Let’s begin at the top:

The Lie: “Rising debt levels can lead to slower economic growth as more government resources are allocated to interest payments rather than productive investments.”

This lie includes two false assumptions: That federal deficit spending slows growth and government resources are limited by interest payments.

The Truth: Government deficit spending adds growth dollars to the economy as this formula illustrates: Gross Domestic Product = Federal Spending + Nonfederal Spending + Net Exports. 

By formula, the more federal spending, the more economic growth.

The lie that federal deficit spending slows growth is disproven by the mathematical definition of economic growth.

The idea that Government resources are limited by interest payments is disputed by the experts from the three Fed Chairmen, the St. Louis Fed Bank, and the Treasury, all acknowledging that the federal government has unlimited resources. It cannot run short of dollars.

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

The Lie:As debt accumulates, the government’s borrowing costs may rise, crowding out investments in other critical areas such as infrastructure and education.”

This Lie makes false assumptions:

False assumption: The federal government borrows U.S. dollars.

The Truth: The federal government never borrows U.S. dollars. Having the infinite ability to create dollars, the assumption makes no sense on its face. The confusion arises because of the words, “bill,” “note,” “bond,” and “debt” all of which have different meanings in federal finance vs. private finance.

In private finance, those words indicate that money is owed. In federal finance, a T-bill, T-note, and T-bond represent deposits (not borrowing) into Treasury security accounts.

The purpose of those accounts is not to acquire spending money but rather to:

*Provide dollar holders with a safe place to store unused dollars — safer than any bank in the world — which is why nations such as China store dollars there, and

*Help the Fed control interest rates by creating a base rate upon which all other rates are calculated.

The total of outstanding T-bills, T-notes, and T-bonds is misnamed “debt,” though nothing is owed. These accounts resemble bank safe-deposit boxes, in which valuables are held by a bank but not owed to the depositor. 

The so-called “debt” is nothing more than a simple exchange of money. You send dollar bills to the government, and the government sends you Treasury bills. They both are U.S. money, with exactly the same backing: the full faith and credit of the United States government.

A dollar bill and a Treasury bill are identical in terms of government liability. They both are U.S. money issued by the U.S. government.

 

United States one-dollar bill - Wikipedia

How Treasury Bills Work | HowStuffWorks

As the St. Louis Fed clearly said, “the government is not dependent on credit markets (i.e., does not borrow) to remain operational.”

 

False assumption: “… the government’s ‘borrowing’ costs may rise, crowding out investments in other critical areas

The Truth: The government’s “borrowing costs” (meaning interest payments) will have no effect on the government’s ability to pay interest. It has infinite ability to pay for anything.

We are not sure what “crowding out” means. If it means the government will run short of dollars, that clearly is impossible.

If it means that private sector borrowers will be unable to borrow, that too is false. Interest rates are arbitrarily controlled by the Fed and are not related to the issuance of Treasury securities. The Fed sets interest rates to control inflation.

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

The Lie: “… the U.S. could face a situation where it defaults on its debt obligations, either explicitly or through inflationary measures. 

The Truth: Again, we see multiple false assumptions:

First false assumption: “… the U.S. could face a situation where it defaults on its debt obligations.”

As every competent economist (including those mentioned above) has said, “The federal government never can become insolvent, i.e., unable to pay its bills.” Having the infinite ability to create dollars confirms this.

Second false assumption: “… through inflationary measures.”

We are not sure if this means that federal spending causes inflation, a claim not in accord with history.” 

Inflation never has been caused by federal spending. Every inflation has been caused by shortages of critical goods and services. The most recent COVID-related inflation was caused by shortages of oil, food, shipping, metals, lumber, labor, computer chips, and other needs. Inflation was being mitigated by federal spending to obtain and distribute scarce items.

See: “At long last, let’s put this inflation question to bed.”

Or does “inflationary measures” mean that the measures to forestall inflation actually cause defaults on debt obligations?  The Fed mistakenly raises interest rates to combat inflation, but a nation with the ability to create its own money can never default.

And in any event, the government pays its misnamed “debt” by the simple act of returning the dollars that reside in T-security accounts. This is not a financial burden on the government. 

Did you know that the federal “debt” has been called “unsustainable” for the past eighty-five years? (See: “A trip down memory lane, or proof ignorance is hard to conquer if the ignorant want to remain that way.”) 

Yes, for eighty-five years, they have been crying wolf, and the people have yet to catch on. Talk about slow learners!

Why the lies?

That is the most important question. The so-called “cures” for the non-existent “problem” of federal debt involve tax increases on the poor and/or reducing social programs that primarily aid those who are not wealthy, such as Social Security, Medicare, Medicaid, and food stamps. 

Thought seldom is given to reducing benefits for the rich, like eliminating tax loopholes.

This was driven home yet again when billionaire President Trump revealed that he had paid virtually no income tax for ten years, a most enviable position — and his political party just passed a “Big, Beautiful” law that saves the rich billions, while the rest receive a pittance while losing some benefits.

This is no accident.

The lies that FICA taxes fund Social Security and Medicare, and that social programs must be cut, are told on behalf of the rich, whose money runs America.

An infinite pile of dollars rising high into space
The federal government has infinite money. It never can run short. It never can default on its obligations for lack of money.

Those of our information sources that promulgate The Big Lie either are ignorant of the facts or are bribed to lie. The rich bribe:

  1. The media, via ownership and advertising dollars
  2. The politicians, via political contributions and promises of lucrative employment later
  3. The economists, via promises of employment with “think tanks” and university endowments.

IN SUMMARY

Even if the federal government did not collect a single penny in taxes, it could fund:

  1. A generous “living-income” Social Security benefit for every man, woman, and child in America.
  2. A livable Social Security benefit for every man, woman, and child in America
  3. Comprehensive, no-deductible Medicare for every man, woman, and child in America
  4. Generous aid for grades K-12.
  5. Free college for all who want it.
  6. Housing assistance
  7. Generous support for the various scientific and medical research projects in America.
  8. Economic growth

And it could do all of that without causing inflation.

America, you have been cheated and lied to, perhaps intentionally, perhaps ignorantly. The federal government has the wherewithal to make America a paradise on Earth. But the rich don’t want that, because if we all were equal, no one would be rich.

The rich want the income/wealth/power gap between the rich and the rest o us to widen. They want the desperation that forces people to accept jobs they don’t like and receive low pay.

So they bribe your sources of information to promulgate The Big Lie, that federal finances are like personal finances, and the government can’t afford to aid the “lazy” poor (who, on average, work harder than the rich).

It doesn’t have to be this way. However, it will remain so if the people reject the facts and choose to believe the lies.

If you don’t protest — if you don’t call, write, and gather groups to demand what if rightfully yours — if you weakly accept The Big Lie and think the truth “is too good to be true– then it always will be that you work hard, receive little, and your children and their children will do the same.

Now that you have heard the facts, the choice is yours. 

Rodger Malcolm Mitchell

Monetary Sovereignty

Twitter: @rodgermitchell

Search #monetarysovereignty

Facebook: Rodger Malcolm Mitchell;

MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell;

https://www.academia.edu/

……………………………………………………………………..

A Government’s Sole Purpose is to Improve and Protect The People’s Lives.

MONETARY SOVEREIGNTY

Now, higher taxes supposedly are good news??

I had hoped that by now, everyone in America knew that the import tariffs America levies are paid for by Americans.

Tariffs are a double whammy:

  1. Sales taxes, that raise the prices of goods and services,
  2. while removing growth dollars from the economy.

Alas, the word has not reached Epoch Times reporter Tom Ozimek, the author of the following article:

Tariff Windfall Drives Surprise $27 Billion US Budget Surplus in June A record-high tariff haul in June fueled a rare budget surplus—and set the stage for even bigger collections ahead.

New data from the Treasury Department show that surging tariff revenues in June helped the U.S. government post an unexpected budget surplus of $27 billion, offering a rare fiscal bright spot amid persistently high federal deficits and suggesting that President Donald Trump’s tariff policies are becoming a significant source of government revenue.

A question for Mr. Ozimek: What if the federal government announced it was doubling the FICA tax and income tax rates while cutting Medicare and Social Security payments to $0? Would you term that a “rare fiscal bright spot”?

Now that would give the government a huge budget surplus. Is that also a “rare fiscal bright spot?”

I know President Trump will claim so, but will you, Mr. Ozemik, be fooled?

And by the way, federal deficits are income for the economy. Deficits provide the growth dollars the American people rely on.
After running a $316 billion deficit in May, the government recorded a surplus of just over $27 billion last month, according to data released on July 11 by the Treasury Department.

The tariff windfall helped narrow the fiscal year-to-date deficit to $1.34 trillion—a slight 1 percent improvement from the same period last year. By contrast, June 2024 saw a $71 billion deficit.

For you benighted souls who are happy when our Monetarily Sovereign government– a government that never can run short of its own sovereign currency — takes dollars from your pockets, the following message should be enlightening:

The federal government does not need your money, does not use your money, and in fact, destroys all the money you send it — and import duties fall into that category.

A key driver of the improved balance was a record-breaking surge in customs duties. The Treasury data released on Friday show that tariff collections soared to $27 billion in June alone, pushing total tariff revenues since October to $108 billion—the highest ever recorded for the first nine months of a fiscal year.

June’s haul marked a significant jump from May’s prior record of $22 billion and was about 93 percent higher than the $56 billion collected during the same nine-month span of the previous year.

Translation: A key driver of the economy’s loss was a record-breaking surge in customs duties extracted from the pockets of the American people.

The Treasury data released on Friday show that tariff collections took $27 billion from the economy in June alone, pushing total tariff dollars lost from the economy since October to $108 billion—the highest ever recorded for the first nine months of a fiscal year.

June’s economic deficit marked a significant jump from May’s prior record loss of $22 billion and was about 93 percent higher than the $56 billion taken out of the economy during the same nine-month span of the previous year.

(Note: Gross Domestic Product, the usual measure of the economy = Federal Spending + Non-federal Spending + Net Exports. When you take billions of dollars from the economy, you literally take those dollars from the American people.

(The Federal government is not the American people. It creates new dollars, and does not use tax dollars) to pay its bills.

If you don’t like the word “deficit'” remember this: Federal surpluses are the economy’s deficits. Federal income is the economy’s dollars destroyed.)
So far in July, customs duties have added another $2.4 billion to federal coffers, according to daily Treasury figures.

Translation: So far in July, customs duties have taken another $2.4 billion from the economy while adding not one penny to the Monetarily Sovereign federal government’s infinite ability to pay its bills, according to daily Treasury figures.

(The Federal government has no “coffers.” It has infinite dollars.) That is why there is no measure of how much money the federal government has. It creates dollars at will by passing laws.

Treasury Secretary Scott Bessent has predicted even higher tariff revenues in the months ahead.

Translation: Treasury Secretary Scott Bessent has predicted even higher economic losses in the months ahead.

Speaking at a July 8 White House Cabinet meeting, he said the United States is on track to collect $300 billion by the end of calendar year 2025, noting that the “major” tariffs imposed under the Trump administration did not start until the second quarter.

Translation: Speaking at a July 8 White House Cabinet meeting, he said the United States is on track to take $300 billion from the economy by the end of calendar year 2025, noting that the “major” economic deficits imposed under the Trump administration did not start until the second quarter.

Since returning to the White House for a second term, Trump has imposed 10 percent universal tariffs on trading partners, along with reciprocal tariffs announced in April on a number of nations, depending on the trade barriers they have with the United States.

Translation: Since returning to the White House for a second term, Trump has imposed 10 percent universal tariffs on trading partners — all of which are paid by American consumers — along with reciprocal tariffs announced in April on a number of nations — also paid by American consumers, depending on the trade barriers they have with the United States.

(Those trade barriers with the United States also are paid by American consumers in the form of higher prices. That’s called “inflation.”

Trump has said the higher duties will substantially boost government revenue.

Translation: Donald Trump, the man who has gone bankrupt six times and needed to ask his daddy to bail him out, doesn’t mention that “higher government revenues” are a net loss for the American public.

They don’t help the government, which has the infinite ability to create its sovereign currency and has no need for, or use of, “revenues.”

(Monetarily non-sovereign state and local governments do need and use revenues. It’s important for economics writers to understand the fundamental differences between a Monetarily Sovereign government and a monetarily non-sovereign government.)

“The big money will start coming in on Aug. 1st. I think it was made clear today by the letters that were sent out yesterday and today,” he said during the Cabinet meeting.

Translation: The big money will start leaving our economy on Aug. 1st. Because Gross Domestic Product growth requires money supply growth, this will likely lead to a significant recession in the last quarter of 2025. Unless these misguided tariffs are revoked, a depression is expected to begin in late 2026 and continue to worsen after that until Trump is removed from office. 

Trump always has made it clear that whatever bad happens is Barack Obama’s, Joe Biden’s, and/or Hillary Clinton’s fault, or that he knew nothing about it — (also, he never met the latest woman to accuse him or Epstein.+
Bessent also cited a June 4 report from the Congressional Budget Office projecting that tariff revenues could total $2.8 trillion over the next decade—a figure he said the administration believes is understated.

Translation: Bessent also cited a June 4 report from the Congressional Budget Office projecting that economic losses could total $2.8 trillion over the next decade—a figure he said the administration believes is understated.

Trump said he won’t extend the Aug. 1 deadline for countries to start paying reciprocal tariffs, signaling a firm stance after earlier suggesting flexibility for nations offering trade concessions.

 Trump noted that the tariffs might be lowered if countries open their markets and reduce non-tariff barriers, emphasizing that persistent trade deficits pose “a major threat” to U.S. economic and national security.

Translation: Trump noted that the tariffs might be lowered if countries open their markets and reduce non-tariff barriers, failing to mention that persistent tariffs pose “a major threat” to U.S. economic and national security.

The president has also announced that Canada will face 35 percent tariffs starting on Aug. 1.

Translation: The president has also announced that American buyers will pay 35 percent more for Canadian imports starting on Aug. 1.

Will someone please contact Tom Ozimek and tell him I would be glad to educate him on economics before he writes another misleading article. Please.

Thank you.

Rodger Malcolm Mitchell

Monetary Sovereignty

Twitter: @rodgermitchell

Search #monetarysovereignty

Facebook: Rodger Malcolm Mitchell;

MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell;

https://www.academia.edu/

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A Government’s Sole Purpose is to Improve and Protect The People’s Lives.

MONETARY SOVEREIGNTY