–The creative guy who sold you the Planned Parenthood scandal myth Thursday, Sep 10 2015 

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

Mitchell’s laws:
•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. .
Liberals 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 rich and poor.
•Austerity is the government’s method for widening
the Gap between rich and poor.
•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..

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

If you are outraged by Planned Parenthood, you should learn this:

James E. O’Keefe III is an American conservative activist.

O’Keefe has produced selectively edited, secretly recorded undercover audio and video encounters with public figures and workers in a variety of organizations, purportedly showing abusive or alleged illegal behavior by representatives of those organizations.

Due to his videos of ACORN workers allegedly aiding a couple in criminal planning, the US Congress voted to freeze funds for the non-profit.

The Association of Community Organizations for Reform Now (ACORN) was a collection of community-based organizations in the United States and internationally that advocated for low- and moderate-income families by working on neighborhood safety, voter registration, health care, affordable housing, and other social issues.

At its peak, ACORN had over 500,000 members and more than 1,200 neighborhood chapters in over 100 cities across the U.S.

ACORN suffered an extremely damaging nationwide controversy after two conservative activists secretly made and released videos of staged interactions with low-level ACORN personnel in several offices, portraying them as encouraging criminal behavior.

Some media publicized the videos without investigation. These videos were later found to have been partially falsified and selectively edited by the activists, James O’Keefe and Hannah Giles.

Four different independent investigations by various state and city Attorneys General and the GAO cleared ACORN, finding its employees had not engaged in the alleged criminal activities and that the organization had appropriately managed its federal funding.

Their reports described the videos as deceptively edited to present the workers in the worst possible light. The national scandal resulted in the non-profit also losing most private funding before investigations were completed.

In March 2010, ACORN (Association of Community Organizations for Reform Now) was close to bankruptcy and had to close most of its offices.

The California State Attorney General’s Office and the US Government Accountability Office found that O’Keefe had misrepresented the actions of ACORN workers.

The loss of funds had been too damaging and by March 2010, ACORN announced it was closing its remaining state chapters and disbanding.

Hmmm . . . Does this sound familiar?
–O’Keefe misrepresented.
–Funds taken away without investigation.
–A valuable organization closed.

O’Keefe seems to be a serial liar:

O’Keefe was arrested in New Orleans in January 2010 during an attempt to illegally make recordings at the office of United States Senator Mary Landrieu, a Democrat.

(He) initially was charged with malicious intent to damage the phone system, a felony. The charges were reduced from a felony to a single misdemeanor count of entering a federal building under false pretenses. O’Keefe pleaded guilty on May 26.

Sadly, and with the cooperation of the media and the gullibility of the populace, the O’Keefe nonsense continues:

This time, O’Keefe claims his latest sting operation found Hillary Clinton’s presidential campaign breaking the law, when in reality all that happened was the purchase of a t-shirt.

O’Keefe’s Project Veritas Action accused the Clinton campaign of allowing a Canadian tourist to launder money, in the form of allowing a t-shirt to be purchased.

In the video, representatives of the Clinton campaign point out to a woman from Montreal that that the campaign can’t take contributions from anyone who isn’t American.

An undercover activist from Project Veritas then makes the purchase on behalf of the Canadian.

As The Washington Post’s Dave Weigel points out: “There are just two catches. One: No one’s ever thrown the book at an American for purchasing merchandise from a campaign, then giving it to a foreigner as a gift.

Two: The person who takes the Canadian’s money and gives it to the Clinton campaign is the Project Veritas Action journalist.”

O’Keefe held a press conference September 1 to promote the video, where journalists reportedly asked him “Is this a joke?”

O’Keefe’s crew has reportedly already made multiple other attempts to sabotage the Clinton campaign.

Project Veritas last month released a video showing their operative undercover with the Clinton campaign, discussing the registration process and whether they can register people who don’t support Clinton.

A Clinton campaign staffer is then shown telling the Project Veritas operative that they will register anyone who asks, regardless of their presidential preference.

As Time reported, “Nothing in the video shows the Clinton campaign violating the law, or the campaign’s own policy.”

This approach to training volunteers is standard operating procedure across field campaigns, according to a Republican field staffer, who requested anonymity.”

Time reports that in addition to the t-shirt scheme, Project Veritas operatives approached the campaign and attempted to pass a cash donation to volunteers and interns while another told the campaign they wanted to illegally funnel donations through a third party.

These failure-laden sting attempts continue O’Keefe’s pattern of using deceptively-edited videos, childish costumes, and sometimes committing crimes, in a futile campaign to attack the left.

Even Fox News hosts have been embarrassed for O’Keefe, telling him to “give it a rest.”

O’Keefe, knowing the media is careless, the public is clueless and the right-wing is shameless, continues his “shoot-edit-release” efforts.

In recent years, conservative activists, under the guise of journalism, have been churning out undercover “sting” videos supposedly capturing reprehensible behavior by their mostly liberal targets.

Those targets have included low-level workers at ACORN, a fundraiser at National Public Radio, and now officials at Planned Parenthood, among others.

The activists release a series of videos in an effort to build a big takedown story, and the press usually plays along.

Meanwhile, activists coordinate with right-wing media players and members of Congress to generate simultaneous outrage over the clips.

The problem for the activists, and the problem for journalists who excitedly treat the clips as news, is that the videos invariably turn out to be doctored, filled with deceptive edits, and missing context in an effort to manufacture scandal.

The whole cycle has become a media cliché, but it’s one that conservative partisans cheer.

And they’re cheering again this month as the “Center for Medical Progress” releases edited clips to claim Planned Parenthood officials have been caught discussing how the organization “sells the body parts of aborted fetuses” and “haggling” over prices for “baby parts.”

Both incendiary videos have been proven to omit crucial context undermining their central claims.

If you hate Planned Parenthood, and are happy to see the right wing shut down the government unless funding for Planned Parenthood is eliminated, perhaps you should know at least a little about what this organization actually does.

Planned Parenthood Federation of America (PPFA) or often just Planned Parenthood is the largest U.S. provider of reproductive health services, with 97% of its clinical interactions focused on breast and cervical cancer screening, HIV screening and counseling, contraception, and 3% on abortion.

Services provided at locations include contraceptives; long-acting reversible contraception; emergency contraception; screening for breast, cervical and testicular cancers; pregnancy testing and pregnancy options counseling; testing and treatment for sexually transmitted diseases; comprehensive sexuality education, menopause treatments; vasectomies and tubal ligations.

They serve over five million clients a year, 26% of which are teenagers under the age of 19. According to PPFA, 75% of their clients have incomes at or below 150 percent of the federal poverty level.

The fact that Planned Parenthood serves the poor makes them a target for the Republicans, whose allegiance is to the rich.

While the abortions are legal, and comprise only a minuscule part of what PP does, the right wing wishes to “throw out the baby with the bathwater” by closing PP. For example:

Louisiana Governor Bobby Jindal has attempted to sever the contract with Planned Parenthood in his state (where no abortions are provided), at a time when there is an epidemic of syphilis in New Orleans, and where Louisiana ranks first among the states in cases of gonorrhea, second in chlamydia, and third in syphilis and H.I.V., according to the Centers for Disease Control and Prevention.

As Republican Jindal is well aware, the rich can afford prevention and treatment for these diseases.

Planned Parenthood clinics in Louisiana last year administered approximately 20,000 tests for these infections, and provided gynecological examinations, contraceptives, screening for cancer, and other services for nearly 10,000 mostly low-income patients, and there is insufficient access to medical care for the people who now can’t be seen at Planned Parenthood clinics.

Without Planned Parenthood, these tests, screenings, contraceptives and other services would not be affordable for the poor.

Aside from repeated attempts to entrap PP employees via selectively edited videos, the “pro-life” right wing has engaged in horrendous, anti-life activities:

In the US, abortion providers have often been threatened with death, and facilities which provide abortions are frequently attacked or vandalized.

Planned Parenthood clinics have been the target of many instances of violence by anti-abortion activists, including bombing, arson, and attacks with chemical weaponry.

In the self-proclaimed, “religious,” right wing world, violence, bombings, shootings, arson and chemical attacks are considered “pro-life.”

And now we await the shutdown of the government by those who wish to shut down women’s health, all in the same “pro-life” name.

If you don’t see the irony in that, you aren’t as creative as James E. O’Keefe III, video editor, convicted criminal and the guy who sold you the Planned Parenthood myth.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK
Monetary Sovereignty

Recessions come after the blue line drops below zero.

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

–The debt snakes slither in again. Don’t listen. Tuesday, Jul 21 2015 

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

Mitchell’s laws:
•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. .
Liberals 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 rich and poor.
•Austerity is the government’s method for widening
the gap between rich and poor.
•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..

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

Adam and Eve learned that snakes are sneaky liars. They not only lie outright, but they twist the truth into lies. And so it is with the debt snakes, as during election time, they once again try to deceive the populace.

Way, way back in 2009, we published, “Federal Debt: A ‘ticking time bomb’.” Here is how the article began:

Popular faith holds that the federal debt is a ticking “time bomb,” ready to explode into inflation and high interest rates, and destroy our economy.

Here are a few references, beginning 70 years ago.

Even with the end of the gold standard in 1971, arguably the most significant economic event since the Great Depression, the language never changes — as though 1971 were a non-event.

Sept 26, 1940, New York Times: “. . . unless an end is put to deficit financing, to profligate spending and to indifference as to the nature and extent of governmental borrowing, the nation will surely take the road to dictatorship, Robert M. Hanes, president of the American Bankers Association asserted today. He said, “insolvency is the time-bomb which can eventually destroy the American system . . . the Federal debt . . . threatens the solvency of the entire economy.”

The post goes on to quote articles from 1960, 1983, 1984, 1985, 1987, 1989, 1992, 1985, 2003, 2004, 2005, 2006 and 2007 (subsequently added, articles dated 2010 and 2011), all referring to the federal debt as a “time bomb.”

Just last year, Forbes ran an article titled:

“Defusing Washington’s Debt Bomb” written by Sen. Rob Portman.

Under the Constitution, only Congress can authorize the United States to borrow money to pay its bills. And since World War I, Congress, recognizing the danger of runaway borrowing, has placed a ceiling on the amount of debt Washington can accumulate.

Going over the debt limit is not the right solution. But neither is simply raising the debt limit without doing anything to address the underlying problem, especially at a time of record debt.

The American people understand this. Think about it as parents: when one of our kids goes over the limit on the credit card, we don’t just pay the bill and ask the bank to raise the limit. We take steps to address the overspending problem and make sure it doesn’t happen again.

And the beat goes on. In May, 2015,The National interest published:

Why America’s Debt Bomb Won’t Explode… Yet

Here we are, 75 (!) years after that 1940 article, still frightened, waiting for that ticking time bomb to explode.

Never mind that the U.S. federal government, being Monetarily Sovereign, never can run short of dollars to pay its bills.

Never mind that even if all federal tax collections fell to $0, the U.S. federal government could continue spending forever.

Never mind, that being Monetarily Sovereign, the federal government creates dollars ad hoc, by paying bills and does not need to borrow — ever.

And never mind that despite massive federal spending, inflation actually is below the federal goal of 2.5%, and easily is controlled by the Fed via interest rates.

monetary sovereignty

Never mind that federal deficits are surpluses for the economy and necessary for economic growth, and that federal surpluses lead to recessions and depressions:

1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819.
1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837.
1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857.
1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873.
1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893.
1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929.

NEVER MIND THAT THERE IS NO “DEBT BOMB.” It’s a myth.

Never mind all these facts, because the debt snakes pay no attention to facts.

And here comes another one:

Kasich to push balanced budget amendment in 6-state tour
By JAMES NORD – Associated Press – Wednesday, January 21, 2015

Ohio Gov. John Kasich has kicked off a six-state tour pushing a balanced budget amendment to the U.S. Constitution with a meeting in South Dakota in which he called on state lawmakers to get behind the proposal.

“Who the heck thinks we should keep spending without any regard to the consequences?” Kasich, a Republican, asked the South Dakota gathering. “I don’t care … if you’re a Republican, a Democrat or a Martian. This is not what we should be doing as a nation. It’s irresponsible.”

Exactly why is it “irresponsible,” Governor Kasich? Will the federal government be like Greece and the other euro nations, unable to pay their debts?

No, Greece and the other euro nations are monetarily NON-sovereign. They have no sovereign currency.

Like our cities, counties, states, businesses and people, all of whom also are monetarily NON-sovereign, Greece can run short of the currency it uses.

The U.S. federal government, being Monetarily Sovereign, has the unlimited ability to create its sovereign currency, to pay its bills.

Well Governor Kasich, is it “irresponsible” (and a “ticking time bomb”) because our children will have to pay the federal debt?

No, federal taxes do not pay for federal spending. The federal government creates dollars every time it pays a bill. The federal debt has no effect on the federal taxes our children will pay.

Or is the debt “irresponsible” and a “ticking time bomb” because it will cause inflation?

No, inflation is caused by a multitude of factors, primarily oil prices and low interest rates.

Here is what Kasich’s nonprofit advocacy group, Balanced Budget Forever says:

In just over a year, five states have passed resolutions in support of a convention to set a balanced budget process in motion. Today, there are now 27 states committed to a convention.

Just 7 more states are needed to trigger change.

While a member of Congress, Kasich supported a federal balanced budget amendment and, as chair of the House Budget Committee, successfully led efforts to balance the federal budget in fiscal years 1998, 1999, 2000 and 2001, the first balanced budgets since 1969.

Yes, and those balanced budgets (actually surpluses) led directly to the recession of 2000. (Almost every recession in recent history has been introduced with reductions in federal deficit growth.)

monetary sovereignty

And we’re coming closer and closer to passing a disastrous “balanced budget” amendment, that will push America into the same horrifying austerity problem Greece suffers from.

Knowing that federal deficit spending adds dollars to the economy, and so is stimulative, and the lack of deficit spending leads to recessions and depressions, why do Kasich and his group insist that the U.S. commit financial suicide by eliminating deficit spending?

I believe there are two reasons:

1. He wishes to become President, and in the crowded Republican field, “balanced budget” gives him a talking point. He relies on the public not understanding the difference between the Monetarily Sovereign government vs. you and me (and states, counties and cities) which are monetarily NON-sovereign.

To the economically ignorant populace, debt is bad and surpluses are good. The people don’t realize that federal debt is the economy’s surplus. So Kasich can position himself as a prudent politician, when in fact, his balanced budget would lead to a recession far worse than what we had in 2008 (a severe recession cured by federal deficit spending.)

2. Recessions generally affect the populace more than the super rich. Recessions cause unemployment among the lower paid, which leads to reduced pay, which in turn, leads to higher profits for corporations and wealthy shareholders. (Note how the stock markets rose dramatically after the most recent recession, while employment lagged.)

All of this widens the Gap between the rich and the rest, and it is the Gap that makes the rich rich. (Without the Gap, no one would be rich, and the wider the Gap, the richer they are.)

So it is the super rich, who bribe the politicians (via campaign contributions and promises of lucrative employment later) to widen the Gap. The super rich also bribe the media (via ownership) and the economists (via contributions to universities and “think tanks”) to support a balanced budget — all to widen the Gap.

Now, with the Presidential campaign in full swing, we again see the debt snakes slithering in, to steal our livelihood and our children’s futures, while pretending to be oh, so frugal.

Yes, they are frugal, if being frugal means taking from the poor and giving to the rich.

While both political parties are guilty, the Tea/Republicans especially, work against anything that helps the middle and the poor — Social Security, Medicare, Medicaid, food stamps, aids to housing, aids to education. Even the abortion issue has a money twist, for the rich always are able to obtain abortions, while the poor are forced to give birth to unaffordable children.

The next time you read or hear a politician, economist or media writer promote a federal balanced budget know this: Either he/she is ignorant of economics or has been paid by the rich to impoverish you and yours.

The debt snakes are slithering in again. Adam and Eve were punished severely for listening to a snake. Don’t let it happen to you.

Don’t listen to debt snakes.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

–Peter Schiff: Wrong in 2009; still wrong. Friday, Jul 17 2015 

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

Mitchell’s laws:
•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. .
Liberals 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 rich and poor.
•Austerity is the government’s method for widening
the gap between rich and poor.
•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..

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

Way back in 2009, we published the post, “Peter Schiff and the money-supply myth.” We quoted his comment: “Almost every dictionary defines inflation as an expansion of the money supply, not rising prices.”

Of course, he was dead wrong. While libertarians say the formula is: Inflation = Supply, the vast majority of knowledgeable people (and virtually all dictionaries) say: Inflation = Rising Prices = (Demand/Supply).

By leaving Demand out of the equation, Schiff and the libertarians always are able to fret that we are in a perpetual state of high inflation (so we should buy the gold and other nonsense the libertarians love to push.)

The rest of the rational world says U.S. inflation has been down around 2.5% for the past few years, and now hovers around 1.5%.

monetary sovereignty

Now here comes Peter Schiff, again . . . still selling his “sky-is-falling” pitch, and still wrong.

Peter Schiff on Greece, Puerto Rico, and America’s Looming Economic Crisis

“What’s happening in Greece and what’s happening in Puerto Rico is going to happen in the United States,” says investment guru and radio host Peter Schiff, CEO of Euro Pacific Capital.

“Once the Greek creditors began to question the solvency of Greece they demanded higher interest rates,” Schiff explained during a recent interview with Reason’s Matt Welch.

“The minute our creditors figure out we are in the same position as Greece or Puerto Rico, they’re going to demand higher interest rate from us and we can’t pay either.”

Ah, Peter, Peter, Peter, will you never learn the difference between Monetary Sovereignty (the U.S.) and monetary non-sovereignty (Greece)?

See if you can understand this:

1. The U.S., being Monetarily Sovereign, has the unlimited ability to create dollars. It can pay any bill of any size at any time. The U.S. never can run short of its own sovereign currency, the dollar.

2. By contrast, Greece has no sovereign currency. It uses the euro. It does not have the ability to create euros at will. The Greek government can obtain euros only by:
a. Taxing
b. Selling goods and services
c. Borrowing.

So Greece can, and has, run short of euros.

3. The U.S. creates dollars simply by paying bills. It doesn’t need to tax or to borrow its own sovereign currency. Even if all taxes and all “borrowing” (issuance of T-securities) fell to $0, the U.S. government could continue spending, forever.

4. It is the Fed that determines our interest rates, not creditors. (Apparently, Schiff has no explanation for why U.S. interest rates are so low. He must believe our creditors are too stupid to “figure out we are in the same position as Greece.”)

One day, the Fed will decide to raise interest rates. Note the words: The Fed will decide.” Then, and only then, rates will go up.

Why does Schiff spout such ignorance? I can’t say for sure, but perhaps this is a clue:

Peter Schiff is the President & CEO of Euro Pacific Capital.

Euro Pacific Capital offers a means for American investors to gain exposure to those areas of the global economy that have largely avoided the crushing debt burden that has swamped many developed economies.

Not sure what’s “crushing” about a debt the U.S. government has the unlimited ability to pay.

Based on the irresponsible policies of the Federal Reserve and the continued failure of the United States to put our fiscal house in order, we believe that the U.S. dollar is at risk of falling relative to currencies of more economically vibrant nations.

Changes in currency valuation, often ignored by many investment consultants, could have significant impact on long term results.

In short, Schiff and his team make their money by warning you about the endlessly imminent demise of America. So to protect your money, you should put your investments into their hands.

Heaven forbid I would put even one cent into the hands of someone whose knowledge of economics seems so meager, he doesn’t admit the fundamental differences between a Monetarily Sovereign nation and one that is monetarily non-sovereign.

Peter Schiff: Wrong in 2009; still wrong. But as H. L. Mencken said, “No one ever went broke underestimating the intelligence of the American people,” and lots of people make fortunes.

Right, Peter?

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

–Has the IMF admitted the obvious? Close, but no cigar. Thursday, Jul 16 2015 

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

Mitchell’s laws:
•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. .
Liberals 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 rich and poor.
•Austerity is the government’s method for widening
the gap between rich and poor.
•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..

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In a speech ten years ago, I said, “Because of the Euro, no euro nation can control its own money supply. The Euro is the worst economic idea since the recession-era, Smoot-Hawley Tariff. The economies of European nations are doomed by the euro.”

Since that date, this blog repeatedly has said, in various ways, “For the euro nations, long term survival requires one of two, and only two, events:”

“1. Adopt some form of a sovereign currency, and become Monetarily Sovereign
or
2. The EU give (not lend) euros to its member nations as needed (i.e. political merger).

And now late, to the party, comes the International Monetary Fund:

The I.M.F. Is Telling Europe the Euro Doesn’t Work

The International Monetary Fund’s memo on Greek debt sustainability, explain(s) why the I.M.F. cannot participate in a new bailout program unless other European countries agree to huge debt relief for Greece, has provided the “Emperor Has No Clothes” moment of the Greek crisis, one that may finally force eurozone members to either move closer to fiscal union or break up.

The I.M.F. memo amounts to an admission that the eurozone cannot work in its current form.

It took them all these years to admit the obvious — that monetarily non-sovereign nations (nations that cannot control their money supply) must have income — money coming from outside their borders — in order to survive long term.

You are monetarily non-sovereign. You must have income in order to pay your bills, long term. You can drain your savings for a while, but eventually your savings will run out.

Businesses are monetarily non-sovereign. Long term, they must have income. They too, can drain their savings, but only for a while.

Cities, counties and states are monetarily non-sovereign. Long term, they must have income, too. Taxes won’t suffice, for taxes are not income. They are a drain on citizens’ savings.

For cities, counties and states, income can take three forms:
1. Net exports of goods and services
2. Tourism
3. Payments from a higher government (Cities receive from counties and states; states receive from a Monetarily Sovereign federal government)

When a nation takes on the euro, it surrends the single most valuable asset any nation can have: Its Monetary Sovereignty.

More valuable than natural resources, population or education, Monetary Sovereignty allows a nation to buy anything and to pay any bill.

One might have hoped that at long last, the IMF finally will have admitted this most basic of all economics facts.

It lays out three options for achieving Greek debt sustainability, all of which are tantamount to a fiscal union . . .

Yes, a fiscal union, like a United States of Europe.

But just as we hoped to believe the IMF has begun to say the obvious, it disappoints us:

. . . an arrangement through which wealthier countries would make payments to support the Greek economy.

Not coincidentally, this is the solution many economists have been telling European officials is the only way to save the euro — and which northern European countries have been resisting because it is so costly.

The three options laid out by the I.M.F. would have different operations, but they share an important feature: They involve other European countries giving Greece money without expecting to get it back.

No, no, no.

Where would the “other European countries” obtain the euros they would be expected to give to Greece and the other impoverished euro nations? Answer: They would have to give less to their own citizens.

To save the euro, a failed concept, the IMF has proposed a sure-to-fail concept: Monetarily non-sovereign nations supporting other monetarily non-sovereign nations, requiring austerity for all.

The rich people who run Europe are not satisfied with enslaving some of Europe’s citizens. They have hatched a plan to enslave all of Europe’s citizens, even those in nations that, to date, have avoided recession and depression.

The troika [European Commission (EC), the European Central Bank (ECB)and the International Monetary Fund (IMF)] together are Monetarily Sovereign. They have the unlimited ability to create euros.

They have the unlimited power to give (not lend) euros to member nations, thus growing the economies of those nations.

Already having impoverished much of the eurozone, the IMF proposes enslaving the entire eurozone.

One of the debt relief options proposed by the I.M.F. is “explicit annual transfers to the Greek budget,” that is, direct payments from other governments to Greece, which it could use to make its debt payments.

A second option is extending the grace period, during which Greece would be relieved of the obligation to make interest or principal payments on its debt to European countries, through the year 2053 — at the expense of Greece’s creditors, most of which now are other European governments.

The third option floated by the I.M.F., (is) a cancellation of a portion of Greece’s debts (to other nations).

The memo makes clear what the real cost to Europe of continued eurozone membership for Greece is: If European governments want to keep Greece in, they’re going to have to put up a lot of money in one non-loan form or another, money they will give Greece that they never get back.

The entire concept is ludicrous. Greece is deeply in debt. Its money supply has been drained.

Greece cannot pay its debt out of income, because it has no net source of income, and being monetarily non-sovereign, it cannot create euros.

The IMF “solution”: Force other monetarily non-sovereign nations to drain their own money supplies.

In short, rather than trying to make all euro nations rich, the IMF proposes to make all euro nations poor.

It is a concept that even the uneducated would realize is stupid . . . except for one thing: The troika is not stupid. They know exactly what they are doing.

The goal is power. By impoverishing more euro nations, the troika (the only entity with the unlimited power to create euros) increases its own relative power.

Why settle for just the Greek people crawling and begging for food, clothing and housing, when one can have all Europeans on their knees, at your mercy?

It is a cruel plan devised by cruel people, who have seized on the opportunity to conquer Europe, not by force of arms, but by force of money — a bloodless coup that will dominate a continent.

Is it any wonder that the thought of Greece, freeing itself from the chains of euro-austerity, had the troika in such a panic.

Unfortunately, the government of Greece seems to have failed its own people, and sold them into slavery.

The Greek people voted to free themselves. They voted against austerity. They tried.

Close. But no cigar.

Rodger Malcolm Mitchell
Monetary Sovereignty

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Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
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10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK
Monetary Sovereignty

Monetary Sovereignty

Vertical gray bars mark recessions.

As the federal deficit growth lines drop, we approach recession, which will be cured only when the growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.

#MONETARYSOVEREIGNTY

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