This is what Republicans claim was not an insurrection urged on by a traitor.

Watch at our nation is attacked.

McCarthy rejects proposed commission to investigate Jan 6. Capitol assault

The Monetary Sovereignty of — babies?

THE SOLE PURPOSE OF GOVERNMENT IS TO IMPROVE AND PROTECT THE LIVES OF THE PEOPLE. The most important problems in economics involve:

Monetary Sovereignty describes money creation and destruction.
Gap Psychology describes the common desire to distance oneself from those “below” in any socio-economic ranking, and to come nearer those “above.” The socio-economic distance is referred to as “The Gap.”

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 Monetary Sovereignty and The Ten Steps To Prosperity can grow the economy and narrow the Gaps: Ten Steps To Prosperity:

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

MONETARY SOVEREIGNTY

Rodger Malcolm Mitchell [ Monetary Sovereignty, Twitter: @rodgermitchell, Search: #monetarysovereignty Facebook: Rodger Malcolm Mitchell ]

THE SOLE PURPOSE OF GOVERNMENT IS TO IMPROVE AND PROTECT THE LIVES OF THE PEOPLE. The most important problems in economics involve:

Monetary Sovereignty describes money creation and destruction.
Gap Psychology describes the common desire to distance oneself from those “below” in any socio-economic ranking, and to come nearer those “above.” The socio-economic distance is referred to as “The Gap.”

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

MONETARY SOVEREIGNTY

Monetary Sovereignty is the foundation of modern economics — but babies?

How The Greenspan And Bernanke Fed Created Bubbles — **Do you think they understand that the U.S. never can run short of dollars?**

Here is a short article that appeared in the May 21, 2021 issue of THE WEEK Magazine:

America’s declining birth rate
The Week (US)21 May 2021
Noah Smith

A “baby bust” points to “a grim economic future” for America, said Noah Smith. U.S. births fell 4 percent in 2020 to their lowest rate since World War II, the federal government reported last week.

“This puts an increasing financial and physical burden on the young,” who must pay the soaring costs of Social Security, Medicare, and caring for their own aging family members.

Contrary to what the media, the politicians, and heaven help us, even the economists have been bribed to claim, there will be no financial burden (i.e. tax burden) on future taxpayers.

The reason: Unlike state and local taxpayers, the federal taxpayers do not fund anything.

The U.S. government is Monetarily Sovereign, meaning it has the unlimited ability to create its own sovereign currency, the U.S. dollar, at the touch of a computer key.

The federal government can pay for anything simply by creating dollars, and never can run short of dollars. Even if all federal tax collections fell to $0, the federal government could continue spending forever.

Think of all those trillions the federal government now is spending for COVID relief. No new taxes were levied. In fact, the most recent tax law changed involved tax cuts.

So, if federal taxes don’t pay for anything, why are they collected? Two reasons:

To tax what Congress and the President wish to discourage, and give tax breaks to what they wish to encourage, and
To fool you into believing that federal money is scarce so you won’t ask for federal benefits.

“In 2010, the number of working-age adults per older adult was 4.8; by 2060, it’s projected to be only half that”—meaning that the tax burden on workers will need to double.

The only “tax burden on workers” is the legal requirement to pay taxes, and those tax dollars are destroyed upon receipt by the Treasury.

To pay for Social Security and Medicare, the federal government uses the same system it uses to pay for Congress and the Supreme Court, the same system it uses to pay for the White House and the FBI, the same system it uses to pay for the military — it presses computer keys and creates dollars ad hoc.

Being Monetarily Sovereign, the federal government never can run short of dollars, never needs to ask anyone for dollars, and never borrows dollars.

The graying of the population will also lead to lower productivity and economic stagnation.

We assume they mean that old people are less productive than young people. While that is a questionable proposition, it is irrelevant.

It advent of smart machines makes each worker of any age far more productive than the previous working populations. There will be no stagnation so long as the federal government continues to pump dollars into the economy.

And it will put the U.S. at a marked disadvantage in our competition with China, which has four times our population. Increased immigration would help, but it’s not enough to keep our population growing.

All the above means is that China has four times as many people to support, a vast number of whom are impoverished by U.S. standards.

“Americans need to have more children,” and surveys show they want to—but are held back by the high costs of housing, education, and child care.

This would not even be an issue for debate, if the federal government would begin to institute the Ten Steps to Prosperity (below).

America has a choice to make: to be a graying nation in decline or a great nation, “confident enough in ourselves to believe that there should be more of us.”

It’s not clear what Noah Smith is suggesting. More sex? Fewer condoms?

The “solution” to the nonproblem of a declining population is simply to stop pretending that federal finances are like state/local government finances.

Yes, future taxpayers will have serious problems. Global warming is one. The proliferation of guns and other killing machines is another. Environmental poisoning and pollution are yet another.

But lack of workers is not one of those problems. In fact, smart automation making human labor obsolete is a far more likely scenario than the low birthrate in America.

…………………………………………………………………………

Rodger Malcolm Mitchell [ Monetary Sovereignty, Twitter: @rodgermitchell, Search: #monetarysovereignty Facebook: Rodger Malcolm Mitchell ]

THE SOLE PURPOSE OF GOVERNMENT IS TO IMPROVE AND PROTECT THE LIVES OF THE PEOPLE. The most important problems in economics involve:

Monetary Sovereignty describes money creation and destruction.
Gap Psychology describes the common desire to distance oneself from those “below” in any socio-economic ranking, and to come nearer those “above.” The socio-economic distance is referred to as “The Gap.”

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

MONETARY SOVEREIGNTY

A good news, bad news, good news, bad news tax story

First, the news, a short article from the May 14, edition of THIS WEEK Magazine: UM-Dearborn College of Business on Twitter: "In April, IRS agents spent the day on campus teaching students. The education and training program, called the Adrian Project, was a daylong simulation of a

President Biden wants to beef up the IRS budget significantly, said Jeff Stein in The Washington Post.

Biden is looking to increase the Internal Revenue Service’s budget by $80 billion over the next 10 years, with the money going toward increasing “the number of agents and giving the IRS new tools and technology to execute collections and crack down on avoidance” by the wealthiest families.

The White House says the extra boost could “raise as much as $700 billion,” helping pay for an expansive child-care and education plan.g

The IRS has lost roughly 18,000 full-time positions since 2010, “with the number of auditors falling to lows unseen since the 1950s.”

The head of the IRS told a Senate committee this month that tax cheats cost the government as much as $1 trillion a year.

In the above news, the good news snippets are: “beef up the IRS budget significantly,” and “increase the Internal Revenue Service’s budget by $80 billion,” That’s $80 billion growth dollars going into the economy, together with more employment (perhaps 18,000 positions?) for agents.

Additional good news: “increasing the number of agents.” That’s 18,000 more employed Americans. More good news: “tax cheats cost the government as much as $1 trillion a year.” That’s $1 trillion a year that is not being taken from the economy.

Yet even more good news: The desire to “crack down on avoidance by the wealthiest families.” That would help narrow the Gap between the rich and the rest, which helps address the biggest problem in economics.

The bad news is: “raise as much as $700 billion.” That means $700 billion growth dollars would be removed from the economy, dramatically cutting into Gross Domestic Product.

The additional bad news is: “ . . . helping pay for an expansive child-care and education plan. Helping pay for child-care and education is good news, but the bad news is that Biden and friends actually believe (or claim to believe) federal taxes pay for those benefits.

In claiming federal taxes pay for federal spending, Biden essentially has set the stage for falsely claiming the government “can’t afford” to pay for benefits to the public. It’s all part of the Big Lie that provides the rich, who run America, with a ready excuse for not supporting such benefits as Medicare for All, Social Security for All, college for all, etc.

The Big Lie is the perfect Gap Psychology tool to widen the Gaps between the have-more and the have-less.

In Summary: Unlike state/local taxes which pay for state/local government spending, federal taxes do not fund federal spending.

The federal government pays for its spending by creating new dollars, ad hoc. It has the unlimited ability to create its own sovereign currency.

Unlike state/local taxes, which immediately are returned to the economy as part of the money supply via deposits into bank checking accounts, federal taxes are destroyed upon receipt.

The sole purpose of federal tax collection is to control the economy by taxing what the government wants to discourage and giving tax breaks to what the government wants to encourage.

Oh, and there is one other purpose: To fool you into believing that certain benefits to you are “unaffordable,” because the federal debt supposedly is “unsustainable.” It’s all a feature of the Big Lie.

…………………………………………………………………………

Rodger Malcolm Mitchell [ Monetary Sovereignty, Twitter: @rodgermitchell, Search: #monetarysovereignty Facebook: Rodger Malcolm Mitchell ]

THE SOLE PURPOSE OF GOVERNMENT IS TO IMPROVE AND PROTECT THE LIVES OF THE PEOPLE. The most important problems in economics involve:

Monetary Sovereignty describes money creation and destruction.
Gap Psychology describes the common desire to distance oneself from those “below” in any socio-economic ranking, and to come nearer those “above.” The socio-economic distance is referred to as “The Gap.”

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

MONETARY SOVEREIGNTY

And still the money supply = inflation myth survives

You see it all the time. Even my friends at Modern Monetary Theory (MMT) believe it: Inflation is caused by too much money in the economy. It must be correct intuitively, because the myth persists. For instance:

Business Insider

Inflation could spike to 20% in the next few years as the US money supply explodes, says Wharton professor Jeremy Siegel 5/15/2021

wdaniel@businessinsider.com (Will Daniel)

Wharton professor Jeremy Siegel said inflation could spike to 20% in the next two or three years due to “unprecedented” fiscal and monetary stimulus and an explosion of the US money supply.

“I’m predicting here that over the next two, three years, we could easily have 20% inflation with this increase in the money supply,” Siegel said in a recent interview with CNBC. Siegel went on to criticize Fed chair Jerome Powell for not acting to quell inflation in the near term. The Wharton professor called Powell the “most dovish chairman” that he’s ever seen and said that the Fed chair’s stance could “be a problem down the road.”

Fiscal stimulus adds growth dollars to the economy via increased government spending and/or lowering of taxes. In short, it’s increased deficit spending. The purpose is to increase economic growth and employment via increases in the money supply.

Fiscal stimulus is done by Congress and the President. It has nothing to do with the Fed. Monetary stimulus is done by the Fed. It also adds growth dollars to the economy, along with reduced interest rates.

Professor Siegel does not criticize the federal government for its fiscal stimulus (deficit spending) that has added much-needed dollars to the economy and has pulled us out of the COVID recession. He criticizes the Fed for adding much-needed dollars to the economy, while keeping interest rates low, which he believes will increase economic growth and employment.

Siegel likes the government putting its foot on the gas, but wants the Fed to undo what the government does by putting its foot on the brakes. Only in the “science” of economics does that make sense.

In the meantime, Siegel said he is bullish on stocks because fiscal and monetary support is going to keep flowing in.

Being “bullish on stocks” means he believes businesses will be more profitable and the economy will grow, because of the increased money supply.

Siegel noted that the total money supply in the US has gone up almost 30% since the start of the year alone.

But at the same time, he equates growth with inflation.

“That money is not going to disappear. That money is going to find its way into spending and higher prices,” Siegel said.

“The unprecedented monetary expansion, the unprecedented fiscal support, you know, I think excessive, was first going to flow into the financial markets, into the stock market, and then once we’re reopening, and we’re right at that cusp, it was going to explode into inflation,” he added.

Though Siegel claims the fiscal support is “excessive,” he doesn’t say what level of support would not be excessive. And he expects the Fed to cure the excessiveness by undoing what Congress and the President are doing. His use of the term “explode” reminds us of the claim that the growth of the federal debt is a “ticking time bomb,” a claim that has been made by thousands of “experts” for more than 80 years.

That bomb has yet to explode.

In Summary Siegel agrees that adding dollars to the economy grows the economy at a time when the economy suffers from recession. But he predicts that growth will come at a cost: Inflation. And though inflation currently is low, Siegel believes the Fed immediately should begin to fight inflation by undoing what the Congress and the President are doing.

He wants the Fed to cut the flow of dollars to the economy and to raise interest rates. Professor Siegel is wrong on all counts. Inflation is not caused by “excessive” money supply.

**While federal debt growth (red line) has been massive, inflation (blue line) has been moderate.**

**There is no relationship between changes in federal debt and changes in inflation.**

Inflation is caused by shortages of key goods, most often food and/or energy. Inflation actually can be cured by increased government spending to acquire the scarce goods and to distribute them to the populace.

…………………………………………………………………………

Rodger Malcolm Mitchell [ Monetary Sovereignty, Twitter: @rodgermitchell, Search: #monetarysovereignty Facebook: Rodger Malcolm Mitchell ]

THE SOLE PURPOSE OF GOVERNMENT IS TO IMPROVE AND PROTECT THE LIVES OF THE PEOPLE. The most important problems in economics involve:

Monetary Sovereignty describes money creation and destruction.
Gap Psychology describes the common desire to distance oneself from those “below” in any socio-economic ranking, and to come nearer those “above.” The socio-economic distance is referred to as “The Gap.”

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

MONETARY SOVEREIGNTY

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