“There’s No Such Thing as ‘Free Money.'” Yes, there is, Mr. Greenhut. Friday, Aug 2 2019 

Economics is a unique science.

It is the only science in which people who have no background, no education, no history, and no knowledge, feel absolutely confident in their opinions about it.

I’m sure they don’t feel confident in arguing about quantum mechanics or about relativity, or about rocket science, but when it comes to economics, everyone is an “expert” — often a laughable expert with a way-too-loud megaphone.

I suggest Steven Greenhut is one such “expert.” Here are excerpts from his recent article:

There’s No Such Thing as ‘Free Money’ or Meaningless Deficits
STEVEN GREENHUT, Reason Magazine

Vice President Dick Cheney famously said that “deficits don’t matter.”

Such conservatives weren’t interested in using federal spending to fight poverty and inequality, but they didn’t want growing deficits to curtail their military efforts in Iraq or quash their desire to step up tax cuts.

Greenhut is 100% correct about the motivations of the conservative right.

Cheney’s ideological heirs now argue that deficits are fine as long as interest rates are low and the Gross Domestic Product keeps growing.

Deficits not only are “fine,” but deficits are absolutely necessary for economic growth, and this has nothing to do with low interest rates.

Federal deficits add dollars to the economy. It is functionally impossible for an economy to grow, without the money supply growing.

In fact, the formula for Gross Domestic Product, our most common measure of economic growth, is a money measure.

GDP = Federal and Non-federal spending + Net Exports

When federal deficit spending doesn’t grow, the economy doesn’t grow. Reduced deficits cause recessions, and increased deficits cure recessions, as the following graph demonstrates:

Recessions (vertical gray bars) begin with reduced deficits; they are cured by increased deficits.

Sorry, but deficits and debt do matter.

There’s no short-term crisis, for sure, but debt “will depress economic growth over time and could potentially lead to a fiscal crisis if borrowers lose faith in the country’s ability to pay,” explained Yuval Rosenberg in The Fiscal Times.

Federal “debt” is nothing more than deposits into Treasury security accounts (T-bills et al).  The government pays back the “debt” every day simply by returning the dollars in those accounts.

And what does this phrase mean, “borrowers lose faith in the country’s ability to pay.”? Makes no sense, unless he means “lenders lose faith . . . ”

Even then, the federal government does not borrow. It accepts deposits into T-security accounts and it never touches those dollars.

The federal government, being Monetarily Sovereign, creates all the dollars it needs, ad hoc, each time it pays a creditor. The government never has any difficulty returning those dollars to the account holders.

See: It is 2019, and the phony federal debt “time bomb” still is ticking. Thursday, Jan 24 2019.

Periodically, I remind you about a disaster that was considered to be so imminent, it repeatedly was referred to as a “ticking time bomb.” I have evidence of the warning as early as 1940, and then every year thereafter.

I’m talking about the federal debt that not only was said to be a “ticking time bomb,” but “unsustainable” and “the time bomb of doom“!

Year after year, that time bomb of doom has kept ticking, and here we are, in 2019, with a  healthy economy, and still that bomb hasn’t exploded. Eighty years of warnings, eighty years of being wrong, eighty years, and people still believe the doomsday sayers.

The phony “time bomb” began to “tick” back in 1940, when the total debt was $40 Billion. Today, 80 years later, it has risen 52,500% (!) to $21 Trillion, and still it ticks.

Go to the above reference, and you’ll see that year, after year, after ridiculous year, “experts” like Greenhut repeatedly referred to the federal debt as a “ticking time bomb.”

Wrong for 80 consecutive years.

Continuing with his article:

Furthermore, he (Rosenberg) notes, debt hampers government’s ability to react to real emergencies “such as recessions, wars or natural disasters.

As debt soars, federal payments to service the debt will crowd out the government’s core spending responsibilities.

The above is a perfect example of closing one’s eyes and ignoring the reality standing before one.

Here we are, looking at 80 past years of a dramatically increasing debt (deposits), and the federal government’s continual “ability to react to real emergencies “such as recessions, wars or natural disasters.

Since 1940, America has fought dozens of wars, all over the world, had numerous recessions, and dealt with all manner of natural disasters. And today, the nation is wealthier than ever.

Explain that Messrs. Rosenberg and Greenhut.

In a way, these denials-of-the-obvious remind me of Mohammed Saeed al-Sahhaf  (aka “Baghdad Bob”). He was the Iraqui, who during Desert Storm, kept going on television to deny that American tanks were in Baghdad, while they were visible over his shoulder.

Rosenberg’s and Greenhut’s comments are that ridiculous.

And now for the source of their ignorance: They don’t understand the differences between personal financing and federal financing.

You could borrow an immense amount of money to upgrade the kitchen and take Hawaiian vacations and then claim that it doesn’t matter as long as you can cover the monthly interest payment.

But that’s a road to eventual ruin.

The federal government is Monetarily Sovereign, meaning it is sovereign over the dollar.

At the beginning of this nation’s existence, our new federal government created laws, and those laws gave the government the unlimited ability to create U.S. money.

So the government created millions of U.S. dollars — from thin air.

So long as those laws and others like them, exist, the federal government will continue to have the unlimited ability to create U.S. dollars.

Here’s how they do it:

To pay a creditor, the federal government 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 bank obeys those instructions, brand new dollars are created.

So long as the federal government doesn’t run out of instructions, it won’t run out of dollars.

You and I don’t have this ability. Neither do our cities, counties, and states. And neither do France, Germany, and Italy, all of which don’t have a sovereign currency, but rather use the euro.

All are monetarily non-sovereign.

Ask Messrs. Rosenberg and Greenhut what “Monetary Sovereignty” means, and they won’t have a clue, even though it is the basis for modern economics.

Now we get to what Greenhut thinks is absolutely necessary and what he thinks, isn’t:

Some debts can’t be helped—e.g., capital expenses—but look at the nonsense that our massive federal budget is funding.

Easy debt drives easy spending. It enables our government to do things it shouldn’t do, such as wage unnecessary wars and create boondoggles like the Green New Deal or a space force.

Which capital expense “can’t be helped,” Mr. Greenhut? Building a wall on our southern border? Buiding cages to house children we have taken from their parents?

Which wars are “unnecessary” and which are necessary?

And as for the “Green New Deal,” it describes the various efforts to reduce climate change. To you, that’s a boondoggle?

We’ll end with Greenhut’s final bit of nonsense:

Deficit spending creates constant pressure for tax hikes. We shouldn’t spend what we don’t have.

“Constant pressure for tax hikes”???? You mean the recent tax cuts, that came with the billions in increased deficit spending?

Will someone please contact Messrs. Greenhut and Rosenbert with the facts so that they don’t continue to make fools of themselves.

It would be the charitable thing to do.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereigntyFacebook: Rodger Malcolm Mitchell

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

The most important problems in economics involve the excessive income/wealth/power Gaps between the richer and the poorer.

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

2. Federally funded Medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

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

MONETARY SOVEREIGNTY

 

How we can prevent recessions and depressions Saturday, May 25 2019 

How we can prevent recessions and depressions.

In order to prevent something, it is helpful to know what causes that thing. If we wish to prevent recessions and depressions, we need to know what causes them. Then, if we can prevent the causes, we can prevent the effect.

The word “recession” is defined as two consecutive quarters of reduced economic growth. It’s an arbitrary definition, that could just as easily be “three or more” – or fewer – quarters of reduced growth.

“Depression” has an even less specific definition. Investopedia says, “A depression is a severe and prolonged downturn in economic activity. In economics, a depression is commonly defined as an extreme recession that lasts two or more years.”

Ask any mainstream economist what causes recessions and depressions, and he’ll tell you pretty much what 24/7 Wall Street says in its 2010 article, “The 13 Worst Recessions, Depressions, and Panics In American History”  by Michael B. Sauter, Douglas A. McIntyre, and Charles B. Stockdale.

They list as causes:

” . . . sharp rises in unemployment, disruption of the banking and financial system, steep fall-offs in business and consumer spending, stagflation, rising bankruptcies, and an increase in the number of companies which have to weather periods of financial distress, asset speculation bubbles (rapidly rising values of gold, land, real estate), trade restrictions, bank failures, unchecked lending,” and just about anything else you can imagine.

Thus, to the mainstream economists, preventing recessions and depressions merely requires preventing all of the above — in short, they have no idea what to do.

There is, however, one common denominator for the vast majority of recessions and for virtually all depressions, and if we prevent that one common denominator, we will prevent recessions and depressions.

Here is some data that illustrates the common denominator: Image result for shoveling money

1796-1799: U.S. Federal Debt reduced 6%. Depression began 1797
1804-1812: U. S. Federal Debt reduced 48%. Depression began 1807.
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.

Historical Debt Outstanding  From:  https://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt.htm

1796-1799: U.S. Federal Debt reduced 6%. Depression began 1797.
01/01/1799 78,408,669.77
01/01/1798 79,228,529.12
01/01/1797 82,064,479.33
01/01/1796 83,762,172.07

1804-1812: U. S. Federal Debt reduced 48%. Depression began 1807.
01/01/1812 45,209,737.90
01/01/1811 48,005,587.76
01/01/1810 53,173,217.52
01/01/1809 57,023,192.09
01/01/1808 65,196,317.97
01/01/1807 69,218,398.64
01/01/1806 75,723,270.66
01/01/1805 82,312,150.50
01/01/1804 86,427,120.88

1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819.
01/01/1822 93,546,676.98
01/01/1821 89,987,427.66
01/01/1820 91,015,566.15
01/01/1819 95,529,648.28
01/01/1818 103,466,633.83
01/01/1817 123,491,965.16
01/01/1816 127,334,933.74

1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837.
01/01/1836 37,513.05
01/01/1835 33,733.05
01/01/1834 4,760,082.08
01/01/1833 7,001,698.83
01/01/1832 24,322,235.18
01/01/1831 39,123,191.68
01/01/1830 48,565,406.50
01/01/1829 58,421,413.67
01/01/1828 67,475,043.87
01/01/1827 73,987,357.20
01/01/1826 81,054,059.99
01/01/1825 83,788,432.71
01/01/1824 90,269,777.77
01/01/1823 90,875,877.28

1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857.
07/01/1858 44,911,881.03
07/01/1857 28,699,831.85
07/01/1856 31,972,537.90
07/01/1855 35,586,956.56
07/01/1854 42,242,222.42
07/01/1853 59,803,117.701

1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873.
07/01/1873 2,234,482,993.20
07/01/1872 2,253,251,328.78
07/01/1871 2,353,211,332.32
07/01/1870 2,480,672,427.81
07/01/1869 2,588,452,213.94
07/01/1868 2,611,687,851.19

1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893.
07/01/1893 1,545,985,686.13
07/01/1892 1,588,464,144.63
07/01/1891 1,545,996,591.61
07/01/1890 1,552,140,204.73
07/01/1889 1,619,052,922.23
07/01/1888 1,692,858,984.58
07/01/1887 1,657,602,592.63
07/01/1886 1,775,063,013.78
07/01/1885 1,863,964,873.14
07/01/1884 1,830,528,923.57
07/01/1883 1,884,171,728.07
07/01/1882 1,918,312,994.03
07/01/1881 2,069,013,569.58
07/01/1880 2,120,415,370.63

1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929.
06/30/1930 16,185,309,831.43
06/29/1929 16,931,088,484.10
06/30/1928 17,604,293,201.43
06/30/1927 18,511,906,931.85
06/30/1926 19,643,216,315.19
06/30/1925 20,516,193,887.90
06/30/1924 21,250,812,989.49
06/30/1923 22,349,707,365.36
06/30/1922 22,963,381,708.31
06/30/1921 23,977,450,552.54
07/01/1920 25,952,456,406.16

It’s pretty clear isn’t it. The common denominator among all U.S. depressions is reduced federal deficit spending (reduced debt). A growing economy requires a growing supply of money, and federal deficit spending provides that money.

Ask anyone what caused the “Great Depression of 1929, and they will tell you exactly the same thing as Messrs. Sauter, McIntyre, and Stockdale:

“A period of rampant speculation in the 20’s led to a market crash of epic proportions. Over the course of two days, beginning with the infamous ‘Black Tuesday,’ the stock market lost more than a quarter of its value.”

Utter nonsense: The stock market IS rampant speculation. That’s all it is and all it ever has been. That’s its purpose. What do you think those guys behind computers, and those other guys on the floor waving their arms and screaming are doing: Rampantly speculating.

No, the Great Recession was due to lack of money.

And here is another hint:

Federal debt growth

Recessions (vertical gray bars) tend to begin following a period of reduced federal debt growth, and recessions and depressions are cured by increased federal debt growth.

Reduced growth in the money supply does tend to cause the ” . . . sharp rises in unemployment, disruption of the banking and financial system, steep fall-offs in business and consumer spending, stagflation, rising bankruptcies, and an increase in the number of companies which have to weather periods of financial distress, etc., etc. mentioned above, but they all are results, not the fundamental cause.

Economic growth requires money growth, which should be obvious, because the primary measure of the economy is GDP, which is a money measure. 

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

All three terms — Federal Spending, Non-federal Spending, and Net Exports — are associated with increased supplies of money.

Since the federal government cannot run short of its own sovereign currency, the U.S. dollar, and has the unlimited ability to prevent inflation (which, in any event, is not caused by federal deficit spending, but rather by shortages), what is the reason to reduce federal deficits and debt?

I can think of only one: Ignorance of facts.

The one good thing Donald Trump has done (though he is clueless about what it is) is to run a trillion-dollar deficit. That will grow the economy, further, just as Barack Obama’s deficits did.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereigntyFacebook: Rodger Malcolm Mitchell

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

The most important problems in economics involve the excessive income/wealth/power Gaps between the richer and the poorer.

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

2. Federally funded Medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

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

MONETARY SOVEREIGNTY

 

Why do they want to make you angry at the wrong thing? Tuesday, Apr 16 2019 

I’ll tell you who “they” are and what the “wrong thing” is. But allow me to lead off with some excerpts from the anti-government site, Reason.com.

Fundamentally, Reason.com believes all governments are too large, no matter how large or small they may be.

Of course, making a government smaller does not make it more efficient, more benevolent, or wiser. 

Government is an easy target, because as you repeatedly have been told, government is terrible, except for one little thing: In a world without government, we would be starving, non-human, savage, undisciplined animals. 

Recently, Reason.com published an article titled, GOVERNMENT WASTE, Happy Tax Day! Here Are 6 Infuriating Ways the Government Spends Your Money
Surprised? Yeah, neither are we. By, JOE SETYON | 4.15.2019

The article refers to the federal government (important point). Excerpts:

Happy April 15, everyone! The federal government collects about $3.5 trillion in tax revenue each year, according to the White House Office of Budget and Management. Here, in no particular order, are six of the more infuriating ways that money has gone to waste.

1. $300,000 on 391 coffee mugs
2. $400,000 to promote asset forfeiture…in Paraguay.
3. $13.6 million to hire two border agents
4. More than $325,000 for Mike Pence’s national anthem stunt
5. $333,000 to study bars on the U.S.-Mexico border
6. Nearly $3 million to study dance clubs

If you’re curious, you can click the above link to read the details about each expenditure, but the point is that the federal government spent millions, billions and even trillions on lots of stuff that seems really dumb, and the writer wants you to be angry that these “useless” expenditures are taking dollars from your taxpayer pockets.

And it’s all a lie.

Those payments for coffee mugs, Paraguay, border agents, Pence, bars, and dance clubs didn’t cost you one cent. In fact, those payments put dollars into your pockets.

All federal “wasted” spending puts dollars into your pockets.

Now, if the article had been talking about state government or local government waste, it would have been correct. State and local taxpayers do pay for state and local government spending.

That is because state and local governments are monetarily non-sovereign. (So are you and I).Image result for government money

Those state/local governments do not have the unlimited ability to create their own sovereign currency; they have no sovereign currency; they use the U.S. dollar.

They can, and often do, run short of dollars, and they need tax dollars in order to survive.

By contrast, the federal government is Monetarily Sovereign. It has the unlimited ability to create its own sovereign currency, the U.S. dollar.

The federal government never unintentionally can run short of dollars. Even if all tax collections — income taxes, FICA taxes, luxury taxes, etc. — totaled $0, the federal government could continue spending, forever.

Every time the federal government pays a creditor, it creates new dollars, ad hoc.,

So what about all that “wasted” federal spending? Those are dollars that the federal government created from thin air, and added to the economy.

The “dance club” millions, the coffee mug thousand, the millions for two border agents — all those dollars were created from thin air and were added to the U.S. economy (except for a few that may have gone to overseas suppliers).

The vast majority of those dollars went to U.S. businesses, who used those dollars to pay for employees, who in turn used the dollars to purchase things like food, housing, clothing, cars, education, etc.

In short, the federal government’s “wasted” dollars actually are stimulus dollars, that grow the economy, and eventually wind up in your pockets, my pockets, your kids’ pockets, and even Donald Trump’s pockets.

Again, this is not true of state and local government waste. They do not create dollars from thin air. They use existing tax dollars for their spending. So when they waste money, the dollars come from their taxpayers’ pockets.

Image result for bernanke and greenspan

It’s our little secret. Don’t tell the people we don’t use their tax dollars.

Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”

Alan Greenspan: “Central banks can issue currency, a non-interest-bearing claim on the government, effectively without limit. A government cannot become insolvent with respect to obligations in its own currency.”

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

So, if the government neither needs nor uses tax dollars, why does it collect taxes? I’m glad you asked. There are three reasons: One mostly good, one bad, and one horrible.

The mostly good reason is: To control the economy by levying taxes on things they wish to reduce, and by giving tax breaks to things they wish to encourage. So-called “sin” taxes are examples of the former, and home real estate tax deductions are examples of the latter.

The bad reason is to reward rich political donors by giving them special tax breaks not available to the middle and lower classes.

The horrible reason is to groom you, the public, to believe that federal spending for social benefits (Social Security, Medicare, Medicaid, food stamps, other poverty aids, college tuition aids, etc.) must be limited or taxes must be increased.

Since the people do not want increased taxes, they easily are convinced that social benefits must be reduced. 

Thus, we have the fake claim that the Social Security Trust Fund is running short of dollars. (Like the federal government itself, no federal agency can run short of U.S. dollars, unless Congress and the President want it to run short). The “Trust Fund” is an accounting fiction, designed to give an imprimatur to a false assertion.

And we have the fake claim that “Medicare for All is unaffordable. And we have all the other fake claims about federal spending being unaffordable, and federal deficits costing taxpayers money. All untrue.

The bottom line is, the rich are rich because they have more money and property than you do. The key word is, “more” because “rich” is a comparative word.

That is, if you have a million dollars, and everyone else has a million dollars, you are not rich. You are just the same as everyone else. But, if you have one hundred dollars and everyone else has just one dollar, you are very rich, indeed.

In short, to be richer, you either must obtain more money for yourself, or you must arrange for the other people to have less money.

Either way widens the Gap between you and those below you, and it is the Gap that makes you rich.

That is why the rich bribe:

  • The politicians via campaign contributions and promises of lucrative employment later
  • The media via advertising dollars and ownership
  • The economics professors via university contributions and jobs with think tanks

The primary purpose of these bribes is to induce legislation to widen the Gap and to make you accept the necessity of widening.

In Summary:

The rich control American politics. Their fundamental goal in life is personal enrichment, which requires widening the Gap between the rich and the rest.

This involves not only bribing the politicians to make Gap-widening legal changes, but also bribing the media and economists to convince you, the public, that Gap-widening is necessary and beneficial.

These information sources promulgate the “Big Lie” that federal finances are similar to your finances, and federal taxes are necessary to fund federal spending.

The rich fear that if you knew federal taxes are not necessary to fund spending, you would demand more benefits, thereby narrowing the Gap, and effectively making the rich less rich.

The rich want you to be angry at “unnecessary” federal spending, so you readily will agree to cut your social benefits.

Finally, the rich want you to believe that federal deficit and debt lead to hyperinflations, similar to those in Zimbabwe and Weimar Germany, though inflations actually are caused by shortages, usually shortages of food and/or energy, not by money creation.

(Despite a 50,000% increase in federal money creation over the past 80 years, average inflation has been moderate, within the Fed’s target range.

While federal debt (blue line) has risen dramatically, inflation (red line) has risen moderately and within the Fed’s target rate

Unfortunately, the constant drip, drip, drip of anti-deficit, anti-debt propaganda continues to brainwash the public, and the Gap widens.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereigntyFacebook: Rodger Malcolm Mitchell

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

The most important problems in economics involve the excessive income/wealth/power Gaps between the richer and the poorer.

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

2. Federally funded medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

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

MONETARY SOVEREIGNTY

Translating a letter from a debt nut Monday, Mar 11 2019 

Herewith, for your education and amusement, we translate into correct economics,  the opinions of a certifiable, wrong-headed debt nut:
The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:

President Trump’s budget aims to reverse an unsustainable fiscal situation and put debt on a downward path relative to the economy.
Unfortunately, as in previous years, he relies on far too many accounting gimmicks and fantasy assumptions and puts forward far too few actual solutions.
Translation: The Republican budget that President Trump has not, and cannot, read aims to continue a sustainable (since 1940) fiscal situation and put deposits into T-security accounts on an upward path.
Unfortunately, as in previous years, he relies on far too many accounting gimmicks and fantasy assumptions and puts forward far too few actual solutions.
Even full of accounting gimmicks meant to paper over deficits, the President’s Budget would still borrow $7.8 trillion over the next decade.
Under reasonable economic assumptions, however, we find it would be closer to $10.5 trillion.
Translation: Even full of accounting gimmicks meant to paper over stimulative additions to the economy, the Republican Budget that Trump hasn’t read, would still accept $7.8 trillion in T-security account deposits over the next decade.
Under reasonable economic assumptions, however, we find it would be closer to a $10.5 trillion addition to the economy.
Image result for signing blind

How Trump signs GOP bills.

President Trump has already signed into law debt-financed tax cuts and spending increases that will add $2.3 trillion to the debt over the next decade, despite budgets that proposed revenue-neutral tax reform and spending reductions.
This budget does nothing to address or pay for these expanded deficits – in fact, it assumes the tax cuts are extended without even recognizing the cost.

Translation: President Trump has blindly signed into law tax cuts and spending increases that will add $2.3 trillion to the economy over the next decade, despite recessionary budgets that proposed disastrous tax increases and spending reductions.

This budget does nothing to take advantage of the government’s unlimited ability to pay for these expanded additions to the economy – in fact, it assumes the tax cuts are extended without even recognizing the benefits.
Perhaps most disappointing is the decision to continue
Image result for money pouring into a hand

Deficits –federal tax cuts and spending — add growth dollars to the economy.

And expand recent defense increases by funding almost $100 billion in new spending through an off-book emergency war account.

This Overseas Contingency Operations (OCO) gimmick is not new, but the proposed abuse of this account rises to a new level never before seen and sets a dangerous precedent.
Translation: Perhaps most encouraging is the decision to continue and expand recent defense increases by funding almost $100 billion in new spending.
This Overseas Contingency Operations (OCO) program is not new, but the proposed use of this account rises to a new level never before seen and sets a favorable precedent for stimulating the economy.
Meanwhile, a fantasy assumption of sustained 3 percent economic growth makes a return appearance in the budget.
Every independent forecaster foresees growth to average closer to 2 percent over the next decade.
Assuming an extra point of growth serves no purpose but to mask the high deficits and debt likely to materialize under the President’s budget.
Meanwhile, a typically Trumpist fantasy assumption of sustained 3 percent economic growth makes a return appearance in the budget.
Every independent forecaster foresees growth to average closer to 2 percent over the next decade.
Assuming an extra point of growth serves no purpose but to mask the economy’s surpluses and the deposits into T-security accounts likely to materialize under the Republican’s budget.
Thoughtful Medicare, disability, and other proposals in the budget deserve serious debate, but these policies are overshadowed by inflated economic growth, unrealistic policy assumptions, and a failure to recognize the deep hole that policymakers have dug in recent years.
Translation: Thoughtful Medicare, disability, and other proposals in the budget deserve serious debate, but these policies are overshadowed by inflated economic growth, unrealistic policy assumptions, and a failure to recognize the economic stimuli that policymakers have invested in recent years.
If the past two years are any indication, this budget will be followed by more debt, not debt reduction.
On our current course, Americans will soon face record levels of debt, leading to slower income growth, increased interest payments, and less opportunity.
If the past two years are any indication, this budget will be followed by more economic growth, not growth reduction.
On our current course, Americans will soon face record levels of economic growth, leading to higher income growth, increased interest payments into the private sector, and more opportunity that results from increases in the money supply. 
In Summary:
If you merely substitute:
  • “deposits into T-security accounts”  for “debt,”
  • “investments in the private sector” for “deficits,”
  • “sustainable since 1940” for “unsustainable,”
  • “favorable precedent” for “unfavorable precedent,” and
  • “Republican” for “Trump” (who never reads anything and will sign anything anti-Obama),
you will be able to glean the truths from the lies of Maya MacGuineas, president of the Committee for a Responsible Federal Budget.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereigntyFacebook: Rodger Malcolm Mitchell

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

The most important problems in economics involve the excessive income/wealth/power Gaps between the richer and the poorer.

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

2. Federally funded medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

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

MONETARY SOVEREIGNTY

Next Page »

%d bloggers like this: