–The single reason for the repeated U.S. financial crises Wednesday, Oct 16 2013 

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.

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

There is one reason for our repeated financial crises. No, it is not the real estate bubble burst, though that contributed, once.

No, it is not our disfunctional Congress. In fact, Congress is functioning exactly as demanded and paid for.

No, it is not the debt limit law, which is a symptom, not a cause.

The single, underlying reason for the debt crisis is summarized in the following article:

The Financial Crisis That Could Bankrupt America & the Millennial Generation
By The Daily Ticker

In the year 2050, experts predict more than 80 million Americans will be over the age of 65, or double current levels. In the same timeframe, the number of “working age” Americans – those between 18 and 64 – will rise just 17%.

In other words, the problem we have today of too few workers trying to support too many retirees is going to get much worse.

The demographic realities of America’s aging population threatens to bankrupt the nation, which is already spending 22% of the federal budget on Social Security.

It’s downright calamitous for the youth of America, which is facing the prospect of sharply higher taxes to pay for entitlement programs.

Stan Druckenmiller, a legendary investor and founder of Duquesne Capital Management, (said): “I am not against seniors. What I am against is current seniors stealing from future seniors.”

And there you have it, all the falsities, misunderstandings, lies and myths, with which the populace has been brainwashed, compressed into in one concise article.

The truth is, federal finances are not like your personal finances:

1. The United States, being Monetarily Sovereign, cannot be forced into bankruptcy.

Our government, having created the laws that created the dollar, has the unlimited ability to create more dollars. The only way the U.S. could go bankrupt is for a corrupt Congress and President to pass laws restricting this money creation.

2. Given the government’s unlimited ability to create dollars, federal taxes do not pay for federal spending. Workers do not support retirees. If there was but one worker in all of America (or even zero workers), the federal government could continue to create the dollars to pay every bill, not only for retirees, but for everything the government wishes to support.

3. Spending 22% of the federal budget (or any other percentage) neither is bad nor good. With unlimited spending ability, there should be no concern about the size of any one budget item.

4. There is no need for the youth of America to pay higher taxes. Literally, there is no need for the youth of America to pay any federal taxes at all (though local taxes remain necessary). Federal taxes do not support federal spending.

In fact, federal tax payments are destroyed upon receipt. As soon as your tax dollars are removed from your checking account, they no longer are part of the U.S. money supply. They have disappeared. Government spending created dollars ad hoc.

5. Druckenmiller is clueless about Monetary Sovereignty. When today’s seniors receive Social Security, they do not steal from future seniors. If if FICA were eliminated (as it should be), this would not affect the government’s ability to pay for Social Security, Medicare or anything else.

In short, the very premise of today’s financial crises — the notion that federal finances are like personal finances — is dead wrong, clearly wrong, diametrically wrong.

Austerity, aka deficit reduction, aka “balanced budget,” impacts the middle and the poor far more than it impacts the rich. Austerity widens the gap between the rich and the rest.

So why do the politicians, the media and even the mainstream economists subscribe to such a damaging idea. Why do they insist on crippling America, especially the middle- and lower-income groups, for no good reason?

They have a “good” reason: They have been bribed by the rich, to widen the gap between the rich and the rest.

Being rich requires that there be a gap. If there were no gap, and everyone had the same amount of money as everyone else, no one would be “rich.” The wider the gap, the richer are the rich.

So the rich pay to have the gap widened:

They bribe the President and Congress via campaign contributions and promises of lucrative employment later.

They bribe the media via their ownership of the largest media outlets. Media writers do not bite the hand that feeds them.

They bribe the mainstream economists via contributions to major universities. Gaining and maintaining tenure requires going along with the university leaders, and with being printed in the media that — you guessed it — are owned by the rich.

So with lies being blared in a continuing fire hose of misinformation, the public has been brainwashed into believing the federal deficit should be cut — brainwashed into believing that what hurts them is a good thing.

Visualize this: When the federal government creates and spends money, where does that money go? Into the economy. Federal deficits are surpluses for the economy.

The federal government is Monetarily Sovereign, and has the unlimited ability to create dollars. But, the economy is monetarily non-sovereign, and can run short of dollars.

Why then, do media writers fret about federal deficits, when they really should worry about the economy’s deficits?

Their readers have been brainwashed, and the richest .1% have paid for the soap. Americans believe federal finances are like personal finances, so they wrongly fear the federal deficit and federal debt.

And that is why the U.S. repeatedly has financial crises.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
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. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

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

THE RECESSION CLOCK
Monetary Sovereignty Monetary Sovereignty

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise.

#MONETARY SOVEREIGNTY

–The new image of the Republican party Sunday, Oct 13 2013 

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.

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

Wise heads in the Republican Party can count. They see the results of the last Presidential election. They realize they have alienated large segments of the voting population — blacks, browns, gays, women, non-Christians, immigrants, young people — just about everyone except older, white males.

Further, under the heading “You’re known by your friends,” having such friends as Glenn Beck, Ben Shapiro, (Editor-at-Large of Breitbart News), Judson Phillips (Tea Party Nation founder) and Rush Limbaugh, is not likely to give the Republicans a new, sane and compassionate image.

Even further, wise Republican heads have come to understand that their selection of crazies and incompetents to be Presidential candidates, made the Party itself look crazy and incompetent. After all, Herman Cain, Michele Bachmann, Rick Santorum, Newt Gingrich, Rick Perry et al, each of whom actually led the right wing polls, are not about to inspire enthusiasm among thoughtful voters.

But, at long last, the Republicans are attempting to shed their mean-spirited, extremist image:

Cruz crushes field in presidential straw poll at Values Voters Summit
By Seth McLaughlin-The Washington Times Saturday, October 12, 2013

Sen. Ted Cruz trounced the competition in the presidential straw poll at the 2013 Values Voters Summit, with Dr. Ben Carson and former Pennsylvania Sen. Rick Santorum

Ted Cruz? Ben Carson? Rick Santorum? These are the candidates who will soften the right wing, extremist image of the Republican Party?

Oops.

Mr. Cruz was one of a handful of conference speakers — including Sens. Rand Paul of Kentucky and Marco Rubio of Florida

Rand Paul? Marco Rubio?

Oops. Oops.

Rep. Michele Bachmann also addressed the summit and has not ruled out another presidential campaign.

Michele Bachmann?

OOPS!

Dr. Carson, Mr. Cruz and Mrs. Bachmann were the top choices for vice president.

Well that nails it. Clearly, lesson learned.

South Carolina House passes bill making ‘Obamacare’ implementation a crime
By Jessica Chasmar-The Washington Times Thursday, May 2, 2013

The South Carolina state House passed a bill Wednesday that declares President Obama’s Patient Protection and Affordable Care Act to be “null and void,” and criminalizes its implementation.

The state’s Freedom of Health Care Protection Act intends to “prohibit certain individuals from enforcing or attempting to enforce such unconstitutional laws; and to establish criminal penalties and civil liability for violating this article.”

Sigh.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
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. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

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

THE RECESSION CLOCK
Monetary Sovereignty Monetary Sovereignty

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise.

#MONETARY SOVEREIGNTY

–Absolute proof the right wing loves blacks, browns and the poor Saturday, Oct 12 2013 

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.

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

Here is absolute proof the right wing does not discriminate against minorities and the poor. In fact the Republicans love those folks.

New York Times
2 States Plan 2-Tier System for Balloting
By FERNANDA SANTOS and JOHN ELIGON

Barred by the Supreme Court from requiring proof of citizenship for federal elections, Arizona is complying — but setting up a separate registration system for local and state elections that will demand such proof.

The state this week joined Kansas in planning for such a two-tiered voting system, which could keep thousands of people from participating in state and local elections, including next year’s critical cycle, when top posts in both states will be on the ballot.

See, the Supreme Court ruled that requiring proof of citizenship was unconstitutional. But aha! They only ruled on federal elections. Let’s require it for local elections. Gotcha!

“If you require evidence of citizenship, it helps prevent people who are not citizens from voting, and I simply don’t see a problem with that,” said Tom Horne, the Arizona attorney general.

O.K., so we have to allow that hoard of non-citizens who have been voting in national elections, but we can stop the flood of illegal voting in local elections.

How much illegal voting has there been,” you ask. Well, uh, we don’t know of any. But by gosh, we’re going to put a stop to it, even if it means disenfranchising a few hundred thousand people.

On Monday, Mr. Horne instructed county election officials to create separate rolls for voters who signed up using the federal form and those who used the state form, the first step to determining eligibility. In Maricopa County, Arizona’s largest, the exercise turned up 900 people who did not show proof of citizenship, a small fraction of the roughly 1.9 million county residents registered.

That’s .0005 of the total, and even that only counts people who didn’t show proof, not people who aren’t citizens, presumably an even tinier number.

Bottom line: If you’re black, brown, poor, on Social Security, on Medicare or need any other help from the government, tell me again why you would vote Republican.

Note to Republicans: At long last, have you left no sense of decency?

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
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. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

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

THE RECESSION CLOCK
Monetary Sovereignty Monetary Sovereignty

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise.

#MONETARY SOVEREIGNTY

–The Recession Clock ticks; the recession draws closer Saturday, Oct 12 2013 

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.

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

In the June 12, 2013 post titled, This graph predicts the future. What does it tell you,” we showed you this graph:

Monetary SovereigntyThe FRED series, Total Credit Market Debt Owed by Domestic Nonfinancial Sectors – Federal Government, is now known as Federal Government; Credit Market Instruments; Liability.

And we asked four questions:

1. What does the federal government do in the years leading up to recessions? (Answer: Cut growth in deficit spending)

2. What does the government do that cures recessions? (Answer: Increase growth in deficit spending)

3. What is the government doing now? (For a clearer picture, the next graph is a closeup of the most recent past)

4. Why is the government cutting deficit spending growth, despite overwhelming evidence this causes recessions? (Because of the false premises that the federal government can run short of dollars, or by creating dollars, could cause inflation.)

monetary sovereignty

——————————————————————————————-

Now another quarter has been posted by the Fed, and the update looks like this:

As growth in federal deficit spending continues to decline, the next recession draws closer.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
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. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

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

THE RECESSION CLOCK
Monetary Sovereignty Monetary Sovereignty

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise.

#MONETARY SOVEREIGNTY

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