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

Mitchell’s laws:
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which ultimately leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive.
=====================================================================

Part of America’s ongoing economic crisis is labeled “student loan debt.”

From Scribd
The Economics Of Student Debt

Stafford Loan Interest Rates Are A Short-Term Problem Reflective of A Long-Term Tension

As Congress returns from its recess, it hopes to address the rising interest rate on federally subsidized Stafford (student) loans, provided interest free until six months after graduation to students with a financial need.

The overall issue of student loan debt has the potential to become a significant drag on the economy, with debt now totaling nearly a trillion dollars and 17 percent of borrowers delinquent in their repayment.

Student loan debt is not just an economic drag, but as is standard procedure for this Congress and this President, the middle and lower income groups are the ones punished.

But here’s a solution proposed by the State of Oregon:

No tuition or loan for college? No problem

(MoneyWatch) Can you imagine attending grade school and high school without paying tuition or taking out a single school loan?

Wait a minute. You probably did have the opportunity to attend grade school and high school without paying tuition or taking out a single school loan. American children already are entitled to a free K-12 education .

Why? Because many years ago, America (and much of the civilized world) realized that a nation’s growth and prosperity depended on an educated populace — including not only an educated rich, but an educated everybody.

Today, every child in America can have a free K-12 education courtesy of their local governments. And this despite the fact that all local governments are monetarily non-sovereign, i.e. they do not have the unlimited ability to create dollars, so must rely on taxpayers to foot the bill.

Now, we have arrived in the 21st century, and universal K-12 education is not sufficient to grow America. College and post-graduate educated students are needed, from the rich and from the middle and lower income groups, too.

Not that everyone should have a college education. Some brains and ambitions are not up to the task, and many jobs don’t require it. But a college education should be available to everyone, rich or poor.

So, O.K., the above-mentioned article actually was talking about college, and really read:

Can you imagine attending college without paying tuition or taking out a single college loan?

For millions of college students in Oregon, this could soon become a reality.

Last week, the Oregon legislature unanimously passed a bill that could lead to students attending one of the state’s seven public universities without incurring any upfront costs.

Students would agree to designate a small percentage of their future income to repay the state for their education.

Former students would contribute about three percent of their income during a 24-year repayment period.

Oregon is trying to solve a serious problem:

Huffington Post
Student Loan Debt Will Exceed Median Annual Income For College Grads By 2023: Analysis
By Caroline Fairchild, Posted: 07/10/2013

The policy and communications consulting firm Hamilton Place Strategies found that while average student debt at graduation has skyrocketed by 200 percent since 1993, income growth has stagnated.

From 1993 to 2010, the typical graduate’s monthly student loan payments grew roughly 300 percent, from $100 to nearly $300. In 2011, two-thirds of college students graduated with debt equivalent to about 60 percent of their annual income.

The Oregon plan is based on the rich paying more than the poor and presumably nobody would incur those massive school loan debts, now plaguing America.

(But, the rich wouldn’t need to participate, since they can afford to pay their college bills. So as usual, the full burden would continue to fall on the middle and lower income groups).

The question is: Why should America’s students be required to pay anything for their education? Why doesn’t the logic of free K-12 extend to 13+?

Since educating our young people will help grow the American economy, and keep us competitive with the rest of the world, why do we make it difficult for our young people to get an education? Why do we impoverish the very people upon whom we depend to lead our nation upward?

Why don’t the local governments simply pay for grades 13+, just as they pay for K-12? And the simple answer is: They can’t afford it. They are monetarily non-sovereign.

Who can afford it? Our Monetarily Sovereign federal government.

The U.S. federal government being sovereign over the dollar, never can run short of dollars. In fact, it actually creates dollars every time it pays a bill.

The federal government can and should pay for educating America’s children, not just in grades 13+, but for all grades, and it wouldn’t cost taxpayers one cent. (A Monetarily Sovereign government does not use taxpayer dollars to pay its bills. See: Monetary Sovereignty: The key to understanding economics)

Our Monetarily Sovereign federal government should remove the education burden from the monetarily non-sovereign state and local governments, most of which are in financial stress.

(The rich will object, and falsely claim the government can’t afford it. The rich want to be America’s only educated group. It gives them power over the middle- and lower-classes.)

The Oregon plan, which because it seems like a solution, actually is a step backwards. It eliminates discussion of federal payment, and cements the liability to the backs of the students.

Complex, convoluted solutions that involve payment by monetarily non-sovereign entities (i.e states, counties, cities and private citizens) only turn eyes away from the real solution: Federal support for American education at all grade levels and all income levels.

For that reason, student loans are needless and harmful, and the Oregon “solution” is a terrible mistake.

Rodger Malcolm Mitchell
Monetary Sovereignty

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

Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone. Click here
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%

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.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

#MONETARY SOVEREIGNTY

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

Mitchell’s laws:
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which ultimately leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive.
=====================================================================

If you never read my blog post: More on (moron) the S&P downgrade of American national credit,

or my blog post: S&P downgrades itself,

you absolutely must read this article: S&P’s Public Relations Nightmare
July 12th, 2013, Jonathan Weil

The gist:

The (court) argument S&P made was that company statements extolling the objectivity, independence and integrity of its ratings are only “puffery” and that a reasonable investor wouldn’t depend on them.

After S&P cut Italy’s sovereign-debt rating this week, the website Zero Hedge posted a copy of the company’s report under the heading “Full ‘Puffery’ Statement.” Another blogger joked that S&P stands for “Snake-oil & Puffery.”

If you are an investor, relying on S&P and other rating agencies to guide you to the safest investments, my question is: Why?

I ask the same question of all stock brokers. (I already have written to my broker, Schwab, asking why they show S&P ratings for their bonds. I’ll let you know if/when they answer. Meanwhile, you should ask your broker the same question.)

And as for you media experts who loudly have bemoaned the rating reductions of U.S. government debt — what do you say now?

[Meanwhile, I have a new business model: If you want a good rating from someone who will charge you less than S&P, contact me. For just a few bucks, I’ll to give you an AAA rating. It will be as accurate as those high ratings S&P gave to worthless mortgage debt.

As for my new business: I give it an AAAA+ rating.]

Rodger Malcolm Mitchell
Monetary Sovereignty

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

Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone. Click here
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%

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.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

#MONETARY SOVEREIGNTY

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

Mitchell’s laws:
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which ultimately leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive.
=====================================================================

You are white.

Your innocent, teen-age son went to the store to buy some candy, and now is walking home, minding his own business. He carries no weapons, just that little candy bar he bought.

Little does your son know these will be the last minutes of his life.

A black, adult, armed man, driving around, looking for trouble, spots your teen son and decides your son “looks suspicious.” We don’t know why the black man thinks your white, teen son looks suspicious. The man will refuse to tell us.

The armed man decides to drive around, following your teen son. We don’t know whether your son realizes a man is following him.

The armed man calls the police and tells them, “This guy looks like he’s up to no good, or he’s on drugs or something. It’s raining and he’s just walking around, looking about, looking at all the houses.”

We do not know why the man thinks your child is up to no good, just by seeing your child walking around. The man refuses to tell us.

The armed man follows your child in his car. The man is angry that “these assholes always get away.” He determines that your teen son is an “asshole” and would not be allowed to get away.

We do not know why the armed man, who doesn’t know your son, thinks your child is an asshole. He refuses to tell us.

The police tell the armed man to stop following your son and not to get out of the car.

The armed man disobeys the police, and decides to take matters in his own hands. He gets out of his car and follows your son, to make sure the “asshole” doesn’t “get away.”

This frightens your son, who turns and says something to the effect, “Why the —- are you following me?” The words may have been angry. We never will know. Your son cannot tell us, and the man refuses to speak.

The armed man responds to your son with angry words.

A fist fight ensues. We never will know who threw the first punch. Again, your son will not have the opportunity to tell us, and again the man refuses to tell us. It probably doesn’t matter. One is an angry and armed adult; the other is a child with a candy bar.

The man shoots and kills your unarmed, teen son. The Florida jury decides the man had a right to “stand his ground,” so declares him innocent of any crime.

Your innocent son is dead, and is no one responsible? If the man didn’t murder your teen son, who did?

Did the Southern state of Florida kill your son? Are Floridians so racially paranoid they passed a law allowing anyone to shoot anyone, so long as the victim is a teenaged “asshole” with a candy bar, who looks suspicious, and the killer claims his own life was at risk?

Was this armed man, who disobeyed police and instigated an encounter with an innocent child, who was minding his own business – was this man entitled to kill your child? One wonders what the religious right wing, so protective of the lives of fetuses, has to say about following, then shooting, an innocent child.

The State of Florida says, “Yes. Kill the assholes, so they won’t get away.”

Or did the NRA murder your son? The NRA, which claims the only solution to assholes is a gun, and the only solution to gun violence is more guns – the NRA which has been responsible for more American murders than al Quada — the NRA, which denies the fact that most gun violence is committed in the neighborhoods having the most gun ownership — is the NRA the real killer?

Or is it the Supreme Court, which tells us the following words have no meaning at all: “A well regulated militia being necessary to the security of a free state.” and that the entire 2nd Amendment to the Constitution reads only: “The right of the people to keep and bear arms shall not be infringed”? One wonders why the founders bothered to put in that first phrase, but is the Supreme Court the real killer?

Or did Americans murder your teen son? Are Americans so emotionally paralyzed by fear, we hide in our bedrooms, clutching our semi-automatic, assault weapons – fearing your asshole son might get away?

Are we bible-spouting, gun toting Americans, having legalized the killing of an innocent child who was doing nothing worse that carrying his candy bar – are we Americans guilty?

I submit that George Zimmerman, the State of Florida, the NRA, the Supreme Court and all Americans share the guilt of murdering an innocent, unarmed teenager, who wanted to live, but made the mistake of going to the store to buy a candy bar – while black.

What lesson have we Americans learned from this tragedy? The lesson is this: When you next feel like shooting an unarmed asshole, whether adult or child, do it in Florida and make sure you kill the asshole.

That way you can claim self-defense, and there will be no one to contradict you.

It’s perfect.

Rodger Malcolm Mitchell
Monetary Sovereignty

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

Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone. Click here
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%

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.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

#MONETARY SOVEREIGNTY

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

Mitchell’s laws:
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which ultimately leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive.
=====================================================================

I always am impressed with how religion teaches people to love their fellow man, and how Christians love to quote Christ and Jews love to quote God. For instance, consider the “religious” right wing in America:

Santorum stands with Texas pro-lifers
By Seth McLaughlin
The Washington Times, Friday, July 12, 2013

Former U.S. senator and 2012 GOP presidential candidate Rick Santorum appeared in Austin, Texas on Thursday in support of Senate Bill 1, the controversial set of abortion restrictions famously filibustered by State Senator Wendy Davis (D-Fort Worth) last month.

“What they’re doing here today is simply human decency. Human decency for the little child in the womb,” said Santorum after visiting the Senate floor to encourage lawmakers to vote for the bill.

Santorum opposes abortions in all cases and once suggested that rape victims who become pregnant should “make the best out of a bad situation.”

He says human decency is what it all is about. Human decency for the microscopic zygote in the womb, that is. Human decency for the invisible blastocyst. Human decency for the 1 inch embroyo.

But, no human decency for the unwanted, unaffordable, malnourished, abused child, who will live in the streets and commit the crimes. The decent upper classes demand to own guns, so they can kill these child criminals if attacked.

And, no human decency available for the woman who has been raped. No human decency for the young, impoverished woman, who became pregnant because the “religious” right denied her sex education in school, and denied her pregnancy prevention devices.

The “religious right” wants her to produce more needy, impoverished, starving children for them to rule and despise.

Washington Post
Food stamps not going anywhere soon, despite dire warnings on House floor

The lack of congressional action on food stamps could keep the $80 billion-a-year program untouched by any cuts.

That headline is supposed to lull us into believing food stamps for the poor will not be cut.

Some Republicans have said there is rampant fraud in the program and benefits are going to some people who aren’t eligible. Newt Gingrich said that people could use food stamps for anything, including trips to Hawaii. In fact, food stamps can only be used for food purchases at retail outlets. And Agriculture Department officials have cracked down on fraud in recent years.

The “religious” right believes Newt’s non-existent poor-people, nickle-and-dime fraud, and feels it’s outrageous. Is real, trillion dollar fraud by rich bankers equally outrageous. Apparently not.

House Republicans have made many different proposals that would radically overhaul food stamps — cracking down on eligibility, increasing work requirements or adding an expiration date to the program.

And after quickly moving the farm-only bill to the floor and rallying most of his caucus to vote for it, House Majority Leader Eric Cantor, R-Va., said Republicans would “act with dispatch” to get a separate food stamp bill to the floor.

The farm-only bill has the backing of the rich agriculture corporations. Not so for food stamps. They are for poor people, so the “religious” right wants to crack down on eligibility, increase work requirements and add an expiration date — just on poor-people benefits, not on rich ag businesses.

There is no consensus on how much the program should be cut or changed, and more moderate Republicans would likely balk at the bigger changes sought by conservatives.

There is no talk about easing eligibility or work requirements. The “religious” is sure that poor people are sloths, lying about in their squalid apartments, living on the dole, so they must be cracked down upon — for their own good. (By contrast, the upper .1% work hard digging ditches, collecting garbage, serving tables and otherwise sweating under cruel taskmasters — so they should be given every benefit.)

The only question is not whether a greater burden will be put on the poor, but only how much greater that burden will become. Consider the “religious” right to be an example of institutionalized cruelty and selfishness — exactly what Jesus Christ preached. Right?

If SNAP is not protected in the farm bill, or if future farm bills don’t pass, Republicans could eventually find other ways to cut SNAP — including in the annual appropriations bills that actually fund the food stamps.

For Rick Santorum and the rest of the “religious” right, it is sufficient to claim to love Jesus, so long as he isn’t required to do anything Jesus preached.

Cruelty to the poor? We religious people do it for their own good.
Poverty? The poor deserve it for being lazy.
Women? They don’t know what’s best for them. We do.
Teen girls? They should not get pregnant, but we refuse to allow them birth control.
Poor children? They have to learn to cope with reality.
Poor crime? It’s their fault for coping with reality.
Rich crime? What rich crime? The rich have earned protection from the law.
Microscopic zygotes? Though you can’t see them with the naked eye, they are far more precious than children, teen girls, women and hungry poor people.

Rep. James McGovern, D-Mass., said on the floor, referring to food stamps in the farm bill. “All of a sudden this has become a partisan issue, and the target, so that you can try to balance the budget, has been placed right on the programs like SNAP.”

Rick Santorum, one of my favorite religious hypocrites, once said, “I thank God that America still has one party that reaches out their hands in love to lift up all of God’s children – born and unborn . . .”

And which party is that, Rick? The one that reaches out its palms to the rich and reaches out its fists to the poor?

It is true that today, we have two right-wing parties. Obama himself is far right of Ronald Reagan, and like all politicians, is owned by the upper .1%. Clearly, he is a traitor to the liberal movement and a traitor to the poor. His determination to cut Social Security and other federal benefit programs, demonstrates a surprising (to many) lack of morals.

But, the “religious right” are positively fascist, the craziest, meanest group of politicians I’ve seen during my long life. Santorum, Cain, Romney, Bachmann, Palin, Paul, Gingrich — have you encountered more nuts in one package? And don’t even ask me about Scalia, Thomas, Alito, not to forget Joe Arpaio .

Given that sad reality, why the heck would anyone having less than say, $10 million in assets, vote Republican? In fact, why would any honestly religious person vote Republican, no matter how much money they have?

It’s one of life’s great mysteries.

Rodger Malcolm Mitchell
Monetary Sovereignty

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

Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone. Click here
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%

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.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

#MONETARY SOVEREIGNTY