Trump, Musk, et al promise to start a depression

Every depression in U.S. history began with a reduction in federal debt.

This is the penalty for ignorance:

No one ever made money betting against the government’s ability to pay its bills.

It’s a head-scratcher, despite all evidence to the contrary, “the Fed’s financial-market contacts” believe the federal debt is a “risk to financial stability.”
US Debt Load Tops Fed’s Survey of Financial Stability Risks Persistent inflation no longer top concern By Craig Torres November 22, 2024 The US government’s debt load is now seen as the biggest risk to financial stability, outweighing persistent inflation in a Federal Reserve survey.
This is an alternative “Ticking Time Bomb” story we have written about for many years: Historical BULLSHIT Claims the Federal Debt Is a “Ticking Time Bomb”: From Sept. 26, 1940 to October 10, 2024 The first example of “ticking time bomb” claims was from 1940, when the federal debt was $40 Billion. The most recent example was from October 2024, when the federal debt was $33 trillion. The federal debt increased by 824,000% from 1940 to October 2024. That’s eighty years of being wrong about the “time bomb” and still the experts persist in idiocy.
One boxer is enormous. One boxer is tiny.
Hey, big guy, you may have KO’d me 80 times in a row, but the experts are worried about you this time.
The federal government, being Monetarily Sovereign, never can run short of dollars.

Former 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.”

Former 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.

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

Press Conference: Mario Draghi, President of the (Monetarily Sovereign) ECB, 9 January 2014. Question: I am wondering: can the ECB ever run out of money? Draghi: Technically, no. We cannot run out of money.

And still, the “experts” claim the so-called “debt” is “unsustainable” and a “ticking time bomb.” Now we are blessed with Trump’s amateur tag team, Musk and Ramaswamy, who promise to “use a chainsaw” on federal spending. They believe that all federal spending is bad, so it doesn’t matter what you cut so long as you cut. This is what happens when you give a machine gun to children and tell them to take it out and play.
“Concerns surrounding US fiscal debt sustainability were atop the list this survey, followed by escalating tensions in the Middle East and policy uncertainty,” the Fed said in its semi-annual financial stability report.
Get that? Concerns about the Middle East were less than concerns about the government’s ability to pay its bills. Ignorance is beyond imagination.
The report includes a survey of the Fed’s financial-market contacts conducted from late August to late October by New York Fed staff members. It also includes the central bank’s assessment of developing risks in four main areas, including asset valuations, borrowing by businesses and households, leverage in the financial sector and funding risks. More than half the respondents — 54% — cited fiscal debt sustainability as a salient risk, up from 40% just a half year ago.
Aha. In its wisdom, did the report lump personal and business debt with federal debt? It’s not clear. Shame on Bloomberg for publishing such tripe.
More debt issuance by the Treasury could start to crowd out private investment or limit policy responsesif there’s an economic slump, the survey found.
And there, again, is the old “crowd out” trope. (See: “The Myths of Crowding Out”) The crowding-out effect claims that when the government borrows more money (increasing federal debt), it can lead to higher interest rates. Higher interest rates make borrowing more expensive for private businesses and individuals, which can reduce private investment and spending. It all sounds very logical until you remember that the Fed controls interest rates. No matter how many T-bills it issues, it sets the rates, and if it doesn’t attract enough investors, it buys them on the open market or even engages in Quantitative Easing. The “limit policy responses” trope assumes the government has a limited ability to spend. Wrong. Its ability to spend is not limited. Even if it didn’t collect a penny in taxes, it could continue spending—double, triple, or more—forever. Remember that 824,000% increase? The government could double or triple that and still pay all its bills on time.
The banking sector remained “sound and resilient overall,” with capital ratios hovering around record levels and high liquidity, the Fed said. But in financial markets, the Fed found valuations remain elevated, liquidity “generally low” and leverage across hedge funds at or near the highest level observed since data became available in 2013. The central bank also singled out life insurers for a steady decline in the liquidity of their assets amid greater use of alternative investments. Taking a look at households, the Fed said credit card and auto loan delinquencies were above average, especially among those with lower credit scores. Overall, they judged vulnerabilities related to household and business debt as “moderate.” “These borrowers hold a relatively small share of aggregate debt, and their high delinquency rates reportedly reflect, in part, more borrowing by some households during and after the pandemic, rather than an abrupt broad-based weakening in households’ ability to repay,” the report said.
In short, “We aren’t worried about the private sector’s finances. We’re worried about the federal government’s finances. Incredible. 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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The Sole Purpose of Government Is to Improve and Protect the Lives of the People.

MONETARY SOVEREIGNTY

A bit of information for my dear friends who voted for Trump.

My dear friends, Gosh, we were having so much fun ruining the lives of immigrants, gays, and those who aren’t Christian; we forgot that cruelty knows no boundaries. If we elect leaders based on how cruel they can be, eventually, that meanness will bounce back to bite us.
Trump handing a boulder to a woman
Here, carry my import duties. Yes, I told you China would carry them, but — SUPRISE!–I lied. You’ll carry them as long as I am President. Thank you for voting for me.
We also seem to have forgotten that the American economy is the world’s largest business, and running a business so big takes level-headed talent and brains. It certainly doesn’t call for a many-times business bankrupt, morally bankrupt, proven con artist. Yet here we are, and here is what it will cost you. I’ll bet you never thought of these when you cast your ballot for the Party of Hatred.
Excerpts from an article that appeared in my daily MSN feed. With slight edits, it describes just a few of the costs you will pay for Trump’s meanness and mismanagement. 1. Homeownership Rising housing prices have already made buying a home difficult for many, but in the coming years, homeownership could become even more elusive. If large-scale deportations of undocumented workers occur, the construction industry will face higher labor costs, driving up the cost of building new homes. Increased tariffs on imported construction materials would also make housing more expensive, putting homeownership even further out of your reach. 2. College Education The cost of higher education has been climbing for decades. While deportation and tariffs don’t directly impact tuition, economic ripple effects could still play a role. Undocumented immigrants are taxpayers too and collectively contribute an estimated $11.74 billion to state and local coffers each year via a combination of sales and excise, personal income, and property taxes. 3. Healthcare Healthcare costs are expected to keep rising. If tariffs are applied to imported medical equipment and supplies, you’ll pay more for your healtcare. 4. Retirement Rising costs from tariffs on goods and services that affect everyday expenses may make it more difficult for you to set aside money for your future. 5. Quality Childcare Deporting undocumented workers, many of whom are employed in childcare roles, could reduce the availability of affordable options. This would increase demand and drive up prices, making quality care a luxury for you. 6. Groceries Food prices could climb even higher. The deportation of undocumented farmworkers, who make up a large part of the agricultural workforce, would lead to reduced food production, especially for labor-intensive crops like fruits and vegetables. Tariffs on imported food products and storage containers would further drive up prices, leaving you with fewer affordable, healthy food choices. 7. Travel and Vacations Travel has become more expensive due to rising fuel costs and accommodation prices. Tariffs on imported goods in the travel industry, like airplane parts and automotive components, could increase these prices. Additionally, labor shortages in the hospitality sector, if exacerbated by deportation, may lead to reduced services and higher costs, making your vacations a rare treat. 8. Cars The cost of new cars, particularly electric vehicles (EVs), rise as tariffs on imported car parts drive up manufacturing expenses, making it harder for you to afford a reliable vehicle. 9. Home Repairs and Maintenance The cost of maintaining your home is already high due to inflation and supply chain issues. Deporting undocumented workers, many of whom are employed in home repair and construction, could worsen labor shortages and drive up the prices you must pay. If tariffs are imposed on building materials, the expense of your necessary repairs would further increase, making home maintenance a serious financial burden on you. 10. Assisted Living and Elder Care The cost of elder care is expected to rise significantly as demand grows. Deporting undocumented caregivers would create labor shortages, driving up wages and the cost of caring for dad, mom, or you.  Tariffs on imported medical supplies and equipment could also make assisted living facilities more expensive, putting quality elder care further out of your reach.
While we’re on the subject of being cruel to all those whose income is less than seven figures, we would be remiss if we didn’t mention Medicaid, the health insurance for people who cannot afford healthcare insurance.
In any contest to name the cruelest and most useless healthcare “reform” favored by Republicans and conservatives, it would be hard to beat the idea of applying work requirements to Medicaid. Yet, it’s back on the table, teed up by congressional Republicans as a deficit-cutting tool. In a rational world, this idea would have been consigned to the dumpster long ago, and forever. It’s billed as a way to reduce joblessness, but doesn’t. It’s billed as an answer to the purported complexity of Medicaid, but makes the system more complicated for enrollees and administrators.
Trump standing on money holding a whip
If they can’t work, they get no healthcare. Let them and their kids suffer and die.
It’s billed as a money-saving reform, but adds to Medicaid’s costs. Democrats view Medicaid as a health insurance program that helps people pay for health care…Republicans view Medicaid as a government welfare program. House Budget Committee Chairman Jodey Arrington (R-Texas) gave the game away last week when he told reporters that a “responsible and reasonable work requirement” for Medicaid would produce about $100 billion in savings over 10 years, or $10 billion a year.
Translation: “We want take $10 billion a year from our poorest Americans.”
That wouldn’t make much to defray the estimated $4-trillion 10-year cost of extending parts of the 2017 Republican tax cut for the rich, which is the ostensible reason for seeking out penny-ante savings in budget categories such as a social safety net. There are only two ways to extract even $10 billion in savings from Medicaid: Strip benefits from the program, or throw enrollees out.
This relies on the false assumption that Medicaid costs must be reduced. But, the U.S. federal government, being Monetarily Sovereign, never can run short of dollars. Even if it didn’t collect a penny in taxes, it could fund 100% of Medicaid, forever. Yes, the states pay a small share, and that too, is unnecessary and costly to taxpayers. While state taxpayers pay for state spending, federal taxpayers pay for nothing. All federal spending is funded by new dollars created by the Treasury. Not a penny of your taxes goes to fund the federal government. My guess: Not one of you Republican voters knew that.
One other thing about imposing work requirements on Medicaid: It’s illegal. That’s the conclusion of federal judges who reviewed the idea the last time it was implemented, during the first Trump term. U.S. District Judge James E. Boasberg and a three-judge panel of the U.S. Court of Appeals for the District of Columbia found that  work requirements didn’t serve the program’s objectives, specifically the goal of bringing health coverage to low-income Americans. Medicaid work requirements remain a beloved hobby horse of conservatives. The idea is a component of Project 2025, the right-wing road map to federal policy changes in a second Trump administration. Conservatives have an historic disdain for Medicaid. This derives, as Drew Altman of the health policy think tank KFF astutely observed, in part from the divergent partisan views of the program: Thinking of Medicaid as welfare serves another aspect of the conservative program, in that it makes Medicaid politically easier to cut, like all “welfare” programs. Ordinary Americans don’t normally see these programs as serving themselves, unlike Social Security and Medicare, which they think of as entitlements (after all, they pay for them with every paycheck).
Franklin D. Roosevelt, the creator of Social Security, also created FICA, not to fund Social Security (or later, Medicare), but to make people feel they are “entitled” to the benefit. That way, as Roosevelt said, “No damn politician could cancel my Social Security.” Sadly, the damn politicians have found ways to cut SS payments by taxing them, and are trying to cut Medicaid. Notice the commonality: The cuts always hurt the poor. Never the rich. The rich reap billions from tax shelters unavailable to you, but those shelters just keep growing.
From the concept of Medicaid as welfare it’s a short step to loading it with eligibility standards and administrative hoops to jump through; Republicans tend to picture Medicaid recipients as members of the undeserving poor, which aligns with their view of poverty as something of a moral failing. Work requirements, then, become both a punitive element and a goad toward “personal responsibility,” a term that appears in Project 2025’s chapter on Medicaid. The idea that work requirements for Medicaid can have a measurable effect on joblessness is the product of another misconception, which is that most Medicaid recipients are the employable unemployed. As is often the case with right-wing tropes, this is completely false. The Trump administration had approved Medicaid work requirements for 13 states and had approvals pending in nine others — all were under the control of Republican governors or legislatures or both — before the waivers ran into the court blockade and ultimately into the accession of the Biden administration. Enrollees who didn’t meet the requirement for three months were summarily excised from Medicaid and couldn’t reenroll until the following year. Evidence compiled by healthcare advocates suggested that administrative snafus largely prevented even employed enrollees from submitting evidence of employment. Work hour reports had to be made online, even though the reporting website was out of order for long stretches and many enrollees didn’t have adequate internet access. The effect of the policy on health coverage in Arkansas was calamitous. Medicaid enrollment fell by a stunning 12 percentage points. The percentage of uninsured respondents in the 30-49 age cohort, which was the first group targeted in a stepwise introduction of the requirement, rose to 14.5% in 2018 from 10.5% in 2016. Project 2025’s Medicaid chapter falsely states that the ACA “mandates that states must expand their Medicaid eligibility standards” to include all individuals with income at or below 138% of the federal poverty level.” The truth is that this was originally part of the ACA, but it was invalidated by the Supreme Court, which ruled that the federal government must give states the choice of whether to accept the expansion. That’s the state of affairs to this day. The Supreme Court decision came down in 2012, so the Project 2025 authors don’t have much of an excuse for their ignorance of the facts. Anyway, 10 states, most of them deep red, still haven’t accepted the expansion.
If you live in Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, or Wyoming, your state has chosen not to expand Medicaid. This has left many low-income individuals in a “coverage gap” where they earn too much to qualify for Medicaid but not enough to afford private insurance. There’s no financial reason for it. The federal government pays 90% of the cost, and those dollars actually would enrich your state. It’s just right wing cruelty. Did you vote Republican in the last election? You get what you voted for.
Don’t be fooled. The Project 2025 folks and their adherents in the coming Trump White House don’t want to make Medicaid more efficient, as they claim. They want to make it less relevant and less effective — and cheaper, the better to preserve those tax cuts for the rich. Those 72 million enrollees? They’ll just be collateral damage. 
The irony is that many of the poor and middle class voted for Trump, blithely assuming that all his cruelty and hatred was directed at “those other people, not at me.” Sorry folks. Cruelty and hatred know no bounds. They seep out from under rocks, and before you realize it, they are drowning you. Approve cruelty against your neighbor, and you will be next. Then you can whine crocodile tears, crying, “It isn’t fair. I’m not one of them. I never thought it could happen to ME.” And this is only the beginning of your tribulations — call them “Trumpulations.”   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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The Sole Purpose of Government Is to Improve and Protect the Lives of the People.

MONETARY SOVEREIGNTY

The “unsolvable” elderly

When my wife died, I decided I didn’t need two homes, so I gave my Illinois home to my children and moved permanently to Florida. Because we don’t have snow and ice, the weather here generally is more accommodating for us elderly than up north, though the occasional hurricane can be stressful. An article in the South Florida Sun Sentinel describes a growing problem- local and national. Here are some excerpts:
As South Florida’s seniors grow older, experts warn of the ‘silver tsunami’ financial crisis By Lisa J. Huriash | lhuriash@sunsentinel.com, November 18, 2024 Aging experts unveiled a grim outlook for aging seniors who increasingly are impoverished and dependent on government help to get by. And in South Florida, they say the numbers are reaching more of a crisis level as the number of seniors grow, often with no pensions and not enough savings — relying instead on Social Security benefits. “If you aren’t being kept up at night by the impending ‘silver tsunami,’ then you aren’t paying attention,” declared Broward County Commissioner Steve Geller, who is also the chair of the South Florida Regional Planning Council.
Also, keep in mind the tsunami of misinformation and disinformation regarding the so-called “impending insolvency” of Social Security and Medicare, the two main federal benefits received by the elderly.
Commonly referred to as the “silver tsunami,” residents age 65 and older are projected to number more than 2.13 million in the seven-county region by 2050, reflecting an increase of 54.5% since 2021, according to the Planning Council.
While the article discusses South Florida, the situation is nationwide. The U.S. population of 65 and older has grown significantly over the past decade. From 2010 to 2020, this age group increased by 38.6%, from 40.3 million to 55.8 million, the fastest growth rate since 1880 to 1890. Over the past decade, the increase of 15.5 million people in this age group is the largest-ever 10-year numeric gain. This rapid growth is largely driven by the aging of the Baby Boomer generation (those born between 1946 and 1964), who began turning 65 in 2011.
Of these residents, 520,000 will be 85 years of age or older, reflecting a projected increase of 133.6% from 2025 to 2050. A conference about “preparing for the silver tsunami” was held Friday at Florida Atlantic University in Boca Raton, presented by the South Florida and Treasure Coast Regional Planning Councils. There, experts shared what the future could look like, using figures from the U.S. Census, and studies by state agencies, the Federal Reserve Bank, and more:

— By 2034, Americans ages 65 and older will outnumber those 18 and younger for the first time.

— Nearly half of elderly unmarried women rely on Social Security for 90% of their income, compared to 22% of all seniors.

— Older Americans are carrying more debt into retirement.

— The age-85-and-older population in southeast Florida will more than double in 25 years, which means the need for more elder care.

— The median income for American adults is $50,290 while their average annual expenses are $57,818.

Social Security
The average monthly Social Security benefit is $1,907, or $22,884 a year. “There is a disconnect of how much people understand they have to save,” said Angela Antonelli, a research professor and executive director of the Georgetown University Center for Retirement Initiatives. One in five Americans rely on Social Security for 90% or more of their income, she said. “Social Security does not keep you out of poverty,” she said.
Social Security could and should keep you out of poverty. There is no excuse for a Monetarily Sovereign nation, with the infinite ability to create dollars, to allow its elderly citizens to fall into poverty. Affordability is not a factor for a Monetarily Sovereign government. Even without collecting a penny in taxes, the federal government could fund a generous version of Social Security, which would keep you out of poverty.  So why not?
On Friday, experts urged policymakers to use the information to try to think of ways to create change when it comes to crucial areas of health care, transportation, housing and finances. Nan Rich, a panelist, said “right now we have a crisis in our community when it comes to seniors,” especially as the condos they purchased in the 1970s now are in need of expensive repairs and maintenance.
New Pallet shelter village opens in Burlington, Washington - Pallet Shelter
Pallet shelters. Are these little boxes the solutions for your Grandma? Is this the best America can do for its elderly? “Pray it doesn’t rain, granny.”
Florida is monetarily non-sovereign. Unlike the U.S. federal government, Florida cannot create infinite money. It would need to levy taxes to fund senior healthcare, transportation, housing, and finances. The federal government, by contrast, could and should do it without taxes.
There is also an expectation that more seniors are facing being homeless, and Rich said she’s trying to make headway there, too: The county is expected to soon make a decision on whether to build Pallet shelters, tiny transitional houses for the homeless. Miami-Dade County has nearly half a million residents age 65 and older. But poverty is the highest for seniors than any other age group, said Tyler Moroles, assistant division director of the Section 8 Housing Choice Voucher Program for Miami-Dade. While housing is expensive for everyone — the median rent is $2,100 which requires a salary of $75,600 to be affordable — it’s nearly impossible for the thousands of seniors in public housing. The average senior income there is $14,691 a year. The county is now redeveloping 1,800 public housing units to create more living spaces. This year, 137,000 applicants have applied for housing vouchers, he said, and only 5,000 of those were chosen. “It’s a national issue, we’re trying to deal with it,”he said. There is no good reason why the states are left to deal with national issues where the fedeal government’s money provides a solution. Among the issues that the experts pondered: What changes does government need to prepare for, such as “granny flats” to allow housing additions so multiple generations can live together “to encourage senior-friendly housing” and allow seniors to age in place.
“Senior friendly” Pallet shelters? Really? Is that where you would like t0 spend your remaining days?
Health care There is a national shortage of 30,000 geriatricians, said Dr. Naushira Pandya, the chair of Geriatrics at NSU. “There will never be enough geriatricians for what we need,” she said. “The need is really great.” It’s an “intellectual challenge” to treat the host of medical issues, but it doesn’t get the same level of enthusiasm as other medical fields, she said.
Becoming a geriatrician requires 12-14 years of college and $200,000 – $350,00 in tuition, including undergraduate and medical school tuition, plus living expenses during residency and fellowship. While the government may be unable to give you back the years, it can undoubtedly underwrite the costs.
That panel conversation sparked an idea to attract more doctors to specialize in geriatrics by state Sen. Gayle Harrell, R-Stuart, who noted how this year’s “Live Healthy” legislation assists in loan repaymentsfor doctors who work in underserved areas.
What a concept! Put them deeply in debt and then force them to work in low-remuneration areas, so paying off the debt will be especially difficult. How about this: No loans. Have the federal government pay their all their expenses, and give them a supplemental salary if they work in “underserved areas.”
Transportation “Most adults will outlive their ability to drive by seven to 10 years,” warned panelist Laura Streed, the senior associate state director of AARP of Florida. Chris Stephenson, the transportation mobility director of the Senior Resource Association in Indian River County, which provides services including Meals on Wheels and adult day care: “Isolation can have profound health consequences. Yet if seniors don’t have adequate transportation they are homebound.} He shared a popular program in Palm Beach County that has adapted “to meet the needs of our senior population.” It uses Uber and other ride-sharing companies “to fill the gaps” to get seniors to public transit stations, which might be too far to reach by walking. Karen Deigl, president and CEO of Senior Resource Association urged policy makers to enhance public transit by creating routes that connect to neighboring counties, make transit accessible with wheelchair lifts and low floors, and a voice that calls out each stop, and allow same-day trip requests. Because “some people just shouldn’t drive,” she said. Lisa J. Huriash can be reached at lhuriash@sunsentinel.com. Follow on X, formerly Twitter, @LisaHuriash
CONCLUSION The population is aging which leads to multiple problems. Many possible solutions have been proposed, almost all of which involve funding. The federal government, being Monetarily Sovereign, has the infinite ability to fund anything without collecting taxes. Strangely, the resistance to “big government” seems not to extend to big state and local government—just big federal government—though the federal government is the one entity that easily can fund all the solutions without burdening taxpayers. Even more strangely, the resistance to” big government” comes primarily from the party that elevated a dictator wanna-be to the Presidency. Go figure. 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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The Sole Purpose of Government Is to Improve and Protect the Lives of the People.

MONETARY SOVEREIGNTY