–The debt ceiling, the ultimate expression of Congressional ignorance

The debt hawks are to economics as the creationists are to biology. Those, who do not understand Monetary Sovereignty, do not understand economics. Cutting the federal deficit is the most ignorant and damaging step the federal government could take. It ranks ahead of the Hawley-Smoot Tariff.

We all are ignorant of many things, but Congress has managed to demonstrate an inhuman, almost surreal level of ignorance in its wrestling with the debt ceiling. Each day, we read statements from otherwise intelligent people, that somehow manage to exceed in ignorance, the statements from the previous day.

The debt ceiling is Congress’s wooly-brained attempt to limit the spending which it itself authorizes. It’s like a person who goes shopping, and intentionally takes less money than they want to spend, because they know that once in the store, they won’t be able to control themselves. What an admission! Congress tells the world, “The majority of us is so foolish, so imprudent, so clueless, we need an artificial control to prevent our running amok — and we are the foolish, imprudent, clueless people guiding America.” As the kids say, OMG!

Those understanding Monetary Sovereignty know, since 1971 the federal government has had the unlimited ability to create dollars. It cannot “go broke” as House Speaker John A. Boehner often claims. Its debt is not “unsustainable,” as the media like to declare. The government could end all taxes and end all borrowing, while tripling its deficit spending, all with no difficulty. It could redeem every T-security (i.e. pay all debt) tomorrow, without breaking a sweat. So what does “going broke” and “unsustainable” mean?

The sole constraint on federal deficit spending is inflation.

So, the sole “purpose” for the purposeless debt ceiling must be to prevent inflation — and we are nowhere near that. Today, millions do not have health care insurance, and millions more have inadequate health care insurance. Millions of children go to poor schools, live in poor housing or on the street. Roads and bridges are falling apart. States are not paying their bills. Small businesses are failing for lack of payment by government agencies. Research and development has been reduced. And we labor with unemployment and the human suffering it causes, which suffering is exacerbated by a debt ceiling, and could be alleviated with federal support.

Here is a question you may wish to put to your Congressperson: “How, on balance, does having a debt ceiling benefit America more than it harms America?” I’ll be glad to publish their answers, here.

Rodger Malcolm Mitchell

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

–Economic disaster: Congress in agreement

The debt hawks are to economics as the creationists are to biology.

By Z. BYRON WOLF ABC News; July 27, 2010; “Debt Commission: Dealing With Federal Debt Likely To Require Tax Hikes, Spending Cuts. On both sides of the aisle, lawmakers are coming to terms with hard political fact: services are going to have to be cut and taxes are going to have to go up to keep the $13 trillion-plus national debt from skyrocketing into infinity and beyond.”

Our leaders have no idea what they are talking about. Cutting services and raising taxes is not a “hard political fact.” These are the absolute worst steps we could take, not just unnecessary, but massively harmful to our economy. The infamous DEBT COMMISSION, whose assignment it is to reduce the economy’s money supply, is akin to a “blood commission,” whose job it is to reduce the blood supply. Money is the lifeblood of an economy.

The same people who complain there are not enough jobs, also want to reduce money creation, the very thing that creates jobs. Our leaders act like doctors, who apply leeches to cure anemia. The country needs lower taxes, not higher. The country needs more federal spending, not less. These politicians, totally ignorant about economics, make economic decisions with the expected result.

And don’t be fooled by statements that taxes only will be increased on the rich. That simply is not true. All taxes destroy money. Period. Destroying any money, whether currently owned by rich or poor, decreases the total money supply, which hurts the entire American economy. You cannot drain water from only one end of a bathtub. A tax on Bill Gates hurts us all. It benefits no one.

And what are the “unnecessary” services that will be cut? See: SERVICES, and decide what we should eliminate — remembering that eliminating any federal spending reduces the money supply.

I cannot express in stronger terms how outrageously harmful this all will be. I urge you to contact your Senators, your Representatives and your media, and tell them to learn economics before making these terrible economic decisions that absolutely, positively will injure us all.

If Congress were employed by Al-Qaeda, they could not hurt America more than they now wish to do. If someone told you, “I have a plan to destroy billions or even trillions of American dollars,” you rightfully would brand him a traitor. More countries die from enemies within than from enemies without.

Rodger Malcolm Mitchell

No nation can tax itself into prosperity