The Big Lie is alive and well and living in DC and the Chicago Tribune Monday, Mar 20 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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Readers of this blog know that unlike state and local governments, the U.S. federal government is Monetarily Sovereign.

A key feature of a Monetarily Sovereign government is that taxes do not fund its spending. Unlike state and local governments, the U.S. government creates its sovereign currency, the dollar, ad hoc, by spending.

Paying creditors is how the federal government creates dollars. 

Thus, even if the federal government did not collect a single dollar in Image result for taxpayertaxes, it could continue spending — even dramatically increase spending — forever.

“The Big Lie” is the lie that federal finances are like state and local finances, and like your personal finances. You and your state and local governments need income in order to spend. These governments need to tax and in many cases, need to borrow.

The federal government needs no income. It creates unlimited dollars simply by spending. Here are examples of The Big Lie, from today’s Chicago Tribune:

What Trump’s budget blueprint gets right
A forced reassessment of never-ending programs

We’re grateful to White House budget director Mick Mulvaney for reminding everyone of the ultimate source of every dollar. “We’re trying to focus on both the recipients of the money and the folks who give us the money in the first place,” he said Thursday.

There are no “folks who give” (the federal government money to spend). While you do pay taxes, the government neither needs nor uses those tax dollars.

Upon receipt by the federal government, your taxes disappear from the money supply. Unlike what commonly is believed, and unlike the way state and local governments operate, your federal tax dollars are not saved for future spending.

Your federal tax dollars effectively are destroyed upon arrival.

Among the agencies that would be zeroed out are the Corporation for Public Broadcasting (which got $445 million last year), the Appalachian Regional Commission ($146 million), the National Endowment for the Arts ($148 million) and the National Endowment for the Humanities ($148 million).

The plan would cut the Environmental Protection Agency by $2.6 billion, the Agriculture Department by $4.7 billion and the State Department by nearly $11 billion

One phrase that was not heard much from opponents of the plan was “$20 trillion in federal debt.” But that’s what decades of chronic overspending have created. Just servicing that debt will cost taxpayers $270 billion this year — which is $270 billion that can’t be spent on other functions, such as the ones President Donald Trump proposes to cut.

The misnamed “federal debt” is not what you may think.  This “debt” actually is the total of deposits in T-security (T-bills, T-notes, T-bonds) accounts at the Federal Reserve Bank.  The so-called “debt” is just federal bank account deposits.

When you want to invest in a T-security, you instruct the Federal Reserve Bank to credit your T-security account, and simultaneously to debit your personal checking account at your local bank.  In essence, paying the “debt” involves a transfer of your dollars from your checking account to your T-security account.

The entire federal debt easily could be paid off tomorrow.

Paying off the federal debt is no burden on you, on me or on the federal government. Taxpayers are not involved in any aspect of the federal debt. Paying the “debt” is just a transfer of existing dollars.

What about that $270 billion in interest payments? When the federal government pays any bill, including interest, it creates the necessary dollars, ad hoc. Here’s how: It sends instructions (not dollars) to the creditor’s bank, instructing the bank to increase the balance in the creditor’s checking account.

At the moment the creditor’s bank does as instructed, new dollars are created and added to the money supply. No tax dollars are involved. The federal government has the unlimited power to send such instructions to banks. It never can run short of instructions, and the banks always will obey those instructions.

These new dollars stimulate the economy; they grow Gross Domestic Product (GDP), the formula for which is:

GDP = Federal Spending + Non-federal Spending + Net Exports

As you can see, federal spending for interest payments on the so-called “debt,” stimulate GDP growth. Rather than being a concern, the “debt” (deposits) facilitates economic growth.

When the Tribune refers to interest as “$270 billion that can’t be spent on other functions” that is a perfect expression of The Big Lie.

Not only is the federal government unlimited in what it can spend on other functions, but that $270 billion adds dollars to the private economy, which it spends on other functions.

The $270 billion in interest payments is a benefit to the economy, not a cost.

And as for those millions and billions being cut from agencies, not only are important agencies being hamstrung, but those cuts are dollars the economy never will see. Those cuts will not contribute to economic growth.

Is it really so outrageous to think public broadcasting can support itself in the age of Netflix? Is that $148 million for the NEA indispensable, given that Americans donated $17 billion last year — more than 100 times as much — to support the arts?

If Appalachia still depends on special assistance from Washington, what does that say about the effectiveness of the 52-year-old Appalachian Regional Commission?

If Trump thinks the EPA can function with less money, shouldn’t the agency and its defenders be asked to prove its value?

Utter nonsense. Any agency can “support itself” with less money. No amount of money is “indispensable.” The questions are, however:

  1. What is the economic purpose of the cuts?
  2. What will the cuts do to the effectiveness of the agency?
  3. Why not give the agency more dollars, rather than fewer?

Those questions have not been addressed by the politicians or the media, whose sole goal seems to be to reduce GDP, i.e. reduce economic growth, by cutting federal spending.

Plenty of local and state organizations count on federal funding, and they warn that some states and cities wouldn’t make it up if it went missing. But there are a couple of reasons for that. One is that these programs are not as high a priority to those states and localities as competing ones are.

States are monetarily non-sovereign. They need income, and that comes from taxes, from borrowing, and from the federal government. Federal spending on state projects saves taxpayers money.

Federal spending saves you tax money.

And now (ta da), the Chicago Tribune tacitly admits it has been telling the Big Lie all along:

(The) states, unlike the feds, can’t run enormous deficits every year.

That’s right, folks. State finances are not like federal finances. The federal government CAN run enormous deficits every year — and it can do it forever. Not only that, but federal deficit spending adds dollars to the economy and grows the economy.

So, Chicago Tribune and Mick Mulvaney and President Trump and Congress, what exactly is the problem you wish to solve by cutting federal spending?  

The Trump administration’s proposals will force lawmakers and citizens to reconsider not only the benefits of all the targeted outlays but also the cost of continuing them.

Our leaders have gotten used to operating as though Washington could live beyond its means forever. If this blueprint destroys that illusion, it will have done a great service.

But wait. The Tribune just admitted the feds, unlike the states, can run enormous deficits every year. That being true (and it is), why is there “an illusion” for Washington to live “beyond its means”?

The federal government creates dollars by spending dollars.  It has no “means” to live beyond. There is no “cost” of continuing federal spending.

Finally, you might ask, why do the Tribune and the politicians repeatedly tell The Big Lie (even though occasionally they stumble over themselves as the Tribune just did)?

The reason: That is what the very rich want. Most federal spending benefits the not-rich, the so-called 99%. The rich don’t like that; they want the Gap between the rich and the rest to widen.

So the rich bribe the politicians (via campaign contributions and promises of lucrative employment later); they bribe the media (via ownership and advertising revenue); and they bribe the economists (via university contributions and “think tank” employment) to tell the populace The Big Lie that the federal government would have to raise taxes if it continues to spend.

But, there is absolutely no reason to cut federal spending on important services. The federal government could and should implement the Ten Steps to Prosperity (see below).

The federal government has the power to narrow the Gap between the rich and the rest while enriching and growing the economy if it simply stopped telling The Big Lie.

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

A solution to the climate change controversy. Sunday, Mar 19 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..
………………………………………………………………………………………………………………………………………………………………………………

President Trump says climate change is a Chinese hoax. He doesn’t believe the massive release of CO2 by humans is warming the planet.

The United States military disagrees. Here are some excerpts from an interview aired on NPR:

National Public Radio: LOURDES GARCIA-NAVARRO, HOST:
Climate Change As An Issue Of National Security

ProPublica published excerpts of a testimony by Defense Secretary James Mattis calling climate change a national security threat. Mattis says climate change is, quote, “impacting stability in areas of the world where our troops are operating today.”

Retired Brig. Gen. Gerald Galloway talks about how the Pentagon will manage challenges presented by climate change.

The Trump administration and the President himself have denied its impact.

GARCIA-NAVARRO: What environmental challenges do you see the military facing today?

GENERAL GALLOWAY: The military has a battlefield on which they’re going to fight. That battlefield is in constant change. It is right now, but it will be under considerably more change under climate change.

We already know, for example, that we have more intense rainfall events. We expect to see – the rivers will flow with greater volume, and that will cause problems for river crossings.

We see there are problems in the seas. The storms are more intense. We’ll have more frequent storms – all of the sorts of things that make uncertainty reality on the battlefield.

If you can’t get your aircraft off an airfield because it’s under water, if you can’t land troops in a foreign country because the beach you thought was going to be something you could land on is no longer there, then it’s a national security issue.

If our allies are having problems in their own country as a result of such things as drought – where there’s instability in the country – instability breeds conflict. And conflict is what puts our forces at risk, and we don’t want that to happen.

So we’ve got to be prepared for this, and we’ve got to be prepared to assist at home and abroad.

GARCIA-NAVARRO: So let’s talk about the measures released last week by the Trump administration in the budget – cuts to almost every single climate change initiative in multiple departments and agencies.

I’m going to list a few. The EPA‘s climate programs would be ended, possibly in their entirety. The Department of Energy’s (DoE) programs would be scaled back. NASA‘s Earth monitoring programs also potentially gone. The National Oceanic and Atmospheric Administration, or NOAH, would also be hit.

Are you concerned?

GALLOWAY: I certainly am concerned. You can’t have one part of the government operating one way and another part operating in a different manner. So in this particular case, we have to rely on many things that NASA provides, that NOAH provides, and it’s important that they be continued.

I think it’s urgent that we get a glide path to where we’re going. Certainly, when somebody says in 2080, this is going to be the sea level, or we’re going to have storms of this nature, we’re not going to go tomorrow to start building something for that.

But we know that in 2030, there’s going to be a problem. Or right now at Annapolis, just down the river from us, we have a problem with water rising into the city and into the Naval Academy. We have to deal with that now.

So we need to know what the risk is nationwide. We need to know the risk overseas, what it’s going to take to deal with that on a stage basis over time. We need to be doing the things now that’ll let it be operational for the next 10 years and put into the plan for the following 10 years. So it’s taken a lot of effort.

But I will tell you the Defense Department has been a leader since 2003 in dealing with these issues, identifying what they are, coming to the Congress and saying, we need to work in this direction.

And if we do this, we think we can be prepared for it. Now, if that’s pushed off the plate, that’s a different issue, but I don’t see someone who is told this is a national security issue saying, no, don’t do that.

Donald Trump and the rest of the Republicans wish to cut federal spending and federal regulations regarding climate change.

But Trump et al do believe in spending for the military — and extra $50 billion, in fact.

So there, dear friends, is the solution staring us in the face. Have the military fund the climate change initiatives of the EPA, NASA, NOAH, DoE, and all other agencies concerned with climate change.

Yes, yes. It’s not a real solution.  We don’t want to turn over the whole nation to the military. That’s how military dictatorships are created.

But it demonstrates the priorities of the Trump/Republicans, who say we must cut any spending that would benefit poor and middle-income Americans, but we must increase spending on the military and anti-immigration walls.

Seemingly, our Monetarily Sovereign government can’t afford to help the poor, but we can afford to pay the rich armaments industry billions for more guns and even more billions to pay the rich construction companies for a wall. (Reward the Rich; Punish the Poor. RRPP)

Now, if only the military used their extra $50 billion to fund ACA, perhaps the Trump Republicans wouldn’t have an excuse to deny an additional 24 million Americans their health care.

Rodger Malcolm Mitchell
Monetary Sovereignty

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

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

Gap Psychology and The Big Lie: You are low class, and should be treated badly Saturday, Mar 18 2017 

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

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

Because you are a blue collar worker toiling in a hard job — you have no class. You have no appreciation for the finer things in life.

You don’t care about the arts. You have no feeling for paintings, music, poetry, or fiction. You were born low class; you live a low-class life;  and you will die low class.

That’s just the way you are.  Here’s who says so:

Trump administration justifies cuts to arts programs by arguing they ‘sound great’ but aren’t actually ‘helping anybody’ 

The Trump administration’s budget proposes the elimination of all funding to programs including the National Endowment of the Arts, Meals on Wheels, and the Corporation for Public Broadcasting, a decision Office of Management and Budget Director Mick Mulvaney defended Thursday by citing coal miners and single moms, Politico reports

“When you start looking at places that we reduce spending, one of the questions we asked was can we really continue to ask a coal miner in West Virginia or a single mom in Detroit to pay for these programs?

The answer was no,” Mulvaney told the hosts of Morning Joe on Thursday. “We can ask them to pay for defense, and we will, but we can’t ask them to continue to pay for the Corporation for Public Broadcasting.”

You may have voted for Trump, but this is what he thinks of you: If you are a coal miner from West Virginia, he thinks you are a dirty, swearing, beer-swizzling clod — an oaf who has no appreciation for opera, symphony, painting, sculpture or any other of the finer things. They don’t “help” the likes of you.Image result for symphony

If you are a single mom in Detroit, he thinks you are a drugged, food-stamp mama, who also cares nothing for the arts or for public radio.

All you listen to is rap music to the beat of gunfire.You care about the military, because in your rough, course life, shooting and killing are necessities.

At least, that is the picture Trump’s Budget Director, Mick Mulvaney, tries to paint. It is his way to dehumanize you, so that any benefits you receive from the government can be taken from you without widespread protest.

You neither want nor deserve government support for the arts, for education, for health care, for good housing, for good food or for the safety of your children.

The government can cut those benefits from its budget, without fear of offending you or those above you on the totem pole. You have no worth or self-worth to be offended.

We have discussed “Gap Psychology” previously. It is the popular belief that people below us on the income/wealth/power scale are inferior and to be disrespected, while people above us are superior and to be admired.

“But,” you may ask, “why would the government even want to take benefits away from me?” That is where The Big Lie raises its ugly head.

In asking one simple question, Rick Mulvaney promulgates both sides of the Big Lie. Remember his question was:

“When you start looking at places that we reduce spending, one of the questions we asked was can we really continue to ask a coal miner in West Virginia or a single mom in Detroit to pay for these programs?

In the first part of his question, “When you start looking at places that we reduce spending . . . “ he promulgates this part of The Big Lie:The federal government can’t afford [unwanted program].

He implies the federal government can’t afford to support the arts, education, health care, etc. and at the same time support the military. He tells you the government needs to reduce spending, when in fact, the government needs to increase spending, especially on the social programs that will benefit you.

He wants you to believe it’s “either – or,” either the arts or the military. It’s a lie. The Big Lie.

The U.S. federal government, being Monetarily Sovereign, never can run short of its own sovereign currency, dollars. The federal government’s method for creating new dollars to grow the economy is to deficit spend. That is demonstrated by the formula for the prime measure of economic growth, Gross Domestic Product:

GDP = Federal Spending + Non-federal Spending + Net Exports

By formula, federal spending grows the U.S. economy.When Mulvaney says, ” . . . can we really continue to ask

When Mulvaney says, ” . . . can we really continue to ask a coal miner in West Virginia or a single mom in Detroit to pay for these programs?” he promulgates this part of The Big Lie: Federal taxes pay for federal spending.

Unlike state and local taxes, which do pay for state and local government spending, federal taxes do not fund federal spending. Even if all federal tax collections fell to $0, the federal government could continue spending, forever.

The government creates dollars by spending and destroys dollars by taxing.  Federal spending itself creates new dollars, ad hoc. No need for taxes.

So here is Mulvaney’s Big Lie in its entirety:

The federal government can’t afford [unwanted program], and Federal taxes pay for federal spending.

The Big Lie is supported by Gap Psychology, which is funded by the rich.

It is the rich who want everyone to believe the Gap between the rich and the rest should be widened, the rich are superior, the poorer are inferior, and the government cannot afford to help the inferior poor.

Donald Trump is a rich man.  He has stocked his cabinet with millionaires and billionaires. He doesn’t associate with those you are poorer. He doesn’t know or respect you. But he loves the military, because it gives him a sense of power.

He can strut belligerently on the world stage, because he controls the biggest weapons and the most soldiers. As a bully, he relishes power, and excuses it as “defense,” as though any nation would dare attack us and survive.

If you read his proposed budget, you will see that throughout it Rewards his Rich pals, and it Punishes you Poorer people. RRPP

(It is) “an agenda of tax cuts for the wealthy, deregulation of Wall Street, and gutting families’ health security . . . “

Trump’s method is The Big Lie and Gap Psychology working in unison to convince you that you want less and you deserve less, while he and his family and cronies deserve more.

It is his attempt to brainwash you and an entire nation.

So far he has succeeded.

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

Just two quick “fantastic” questions Friday, Mar 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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You may have noticed that Donald Trump’s all-time favorite word is, “fantastic.”

  • “Mike Pompeo is doing a fantastic job.”
  • “Secret Service did a fantastic job stopping an intruder”
  • “I hope we (Putin and Trump) have a fantastic relationship.”
  • “Pakistan is a fantastic country, fantastic place of fantastic people
  • “(My) health care plan will be fantastic.”
  • Regarding the National Museum of African American History and Culture: “Honestly, it is fantastic
  • “The relationship (with India) is going to be fantastic
  • I think she (Betsy de Vos) is going to be a fantastic Education Secretary.”
  • “(I thought Angela Merkel is) really fantastic.”
  • “I saw Lady Gaga last night and she was fantastic!”
  • “Melania will be a fantastic first lady”

The list goes on and on. He seldom tells a lie without using the word, “fantastic.” I’ll bet you could find a couple hundred examples in short order.

But did you know the word “fantastic” has the original meaning: “existing only in imagination”?

It also comes from the French fantasieus, meaning “weird; insane; make-believe.”

Medieval Latin had fantasticus as a noun, meaning, “a lunatic.”

Old Italian had fantastico, meaning “one who acts ridiculously.”

My questions are, what if Donald Trump suddenly realized he is a weird lunatic who is acting ridiculously, so he apologized to America?

Wouldn’t that be fantastic?

Rodger Malcolm Mitchell
Monetary Sovereignty

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THE RULES

•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

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