–Why I love the National Security Agency

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.

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

House Speaker John Boehner (R-Ohio) said of NSA whistleblower Edward Snowden, “He’s a traitor. The disclosure of this information puts Americans at risk. It shows our adversaries what our capabilities are.”

Sen. Bill Nelson (D-Fla.) told reporters, “I think it directly is (an act of treason).” Sen. Dianne Feinstein (D-Calif.), chairwoman of the Senate Intelligence Committee, also said that Snowden had committed an “act of treason.”

So we know Edward Snowden is a traitor, because he revealed secret information about our favorite government and its protection agency, the NSA — information the revelation of which compromised U.S. defenses. For instance, according to the President of the United States of America:

“We know that the intelligence services of other countries — including some who feign surprise over the Snowden disclosures — are constantly probing our government and private-sector networks and accelerating programs to listen to our conversations and intercept our emails and compromise our systems. We know that.”

Hey, wait a minute. “Other countries . . . who feign surprise?” What’s that word “feign” doing there? Are you saying, Mr. President, that “other countries” were aware of what Snowden disclosed to the American people? Are you saying that of the people on earth, the American people knew less about the NSA’s activities than did the people in other countries?

Are you saying, Mr. President, that quite likely the bad guys already know what we’re doing, and that Mr. Snowden didn’t reveal anything to them they didn’t already know?

Hmmm . . .

Well anyway, the NSA’s gathering of metadata has provided a powerful defensive shield against terrorist activities. It prevented the Oklahoma City and Boston Marathon bombings and . . . uh . . . you say it didn’t?

Well, what about the twin towers. Metadata could have prevented that. According to President Obama:

“The program grew out of a desire to address a gap identified after 9/11. One of the 9/11 hijackers—Khalid al-Mihdhar—made a phone call from San Diego to a known al Qaeda safe-house in Yemen. NSA saw that call, but could not see that it was coming from an individual already in the United States.

“The telephone metadata program under Section 215 was designed to map the communications of terrorists, so we can see who they may be in contact with as quickly as possible.”

So there it is. If NSA had been collecting data on everyone’s phone calls, it would have been able to connect the dots, seen that terrorists were planning terror, and stopped 9/11. Case closed, right?

Well, not exactly. According to Reason.com’s January 17th article titled, Obama Suddenly Realizes Mass Surveillance Threatens Privacy, by Jacob Sullum:

As ProPublica’s Justin Elliott pointed out last June, “U.S. intelligence agencies knew the identity of the hijacker in question, Saudi national Khalid al Mihdhar, long before 9/11 and had the ability find him, but they failed to do so.”

Furthermore, it is not clear why the NSA, having eavesdropped on seven calls between al-Mihdhar and the Al Qaeda safe house in Yemen, needed a database containing everyone’s phone records to identify the source of those calls.

The Justice Department “could have asked the FISA Court for a warrant to all phone companies to show all calls from the U.S. which went to the Yemen number,” former counterterrorism official Richard Clarke told ProPublica.

“Since they had one end of the calls (the Yemen number), all they had to do was ask for any call connecting to it.”

NSA, this giant, information-gathering monster, had all the information it needed and failed to act on it. So what possible purpose could be served by gathering even more information?

As ProPublica’s Kara Brandeisky notes, “Obama’s own review group concluded that the sweeping phone records collection program has not prevented any terrorist attacks.”

The NSA’s record: Billions spent. No terrorist attacks prevented. None. Zero. Nada.

O.K., so the NSA has stopped no terrorist attacks, but still Snowden is, if not a traitor, at least a criminal. Here’s why:

Geoffrey R. StoneEdward H. Levi Distinguished Service Professor of Law, University of Chicago, doesn’t think Snowden is a traiter. Instead, “He is most certainly a criminal who deserves serious punishment” (because he revealed classified information). Probably, he should have presented his concerns to senior, responsible members of Congress.”

I assume among those senior, responsible members of Congress would be John Boehner, Bill Nelson and Dianne Feinstein, who clearly are outraged, not by the spying on innocent Americans or the lying to Congress, but rather by the revelation to innocent Americans that they are being spied on and lied to.

But if Snowden is a criminal, because he violated his oath not to reveal classified information, who else acted criminally?

Federal Judge John D. Bates, a judge on the FISC, wrote “(This was) the third instance in less than three years in which the government has disclosed a substantial misrepresentation regarding the scope of a major collection program.”

Let’s sum it up. NSA had information that could have prevented 9/11, but did nothing. Three times in three years, this federal agency that spends billions to prevent terrorism, but cannot point to a single instance of having prevented terrorism, has broken the law, and gone unpunished. (James Clapper Jr, the director of national intelligence, lied to Congress when he testified that the NSA was not collecting data on millions of Americans.)

Meanwhile, Edward Snowden, who objected to the NSA’s criminality and revealed the NSA’s unlawful and useless activities to the American public — activities known to foreign nations, but not to Americans — Edward Snowden is a traitor or a criminal or both, and should be prosecuted, while no criminals in the government did anything that should be prosecuted.

Does that about cover it?

But wait. What about the title of this post, “Why I love the National Security Agency”? Why do I love an agency run by lying criminals, that spies on innocent Americans?

The answer can be found above, in this phrase: ” . . . a government agency that spends billions . . .”

While Congress has been increasing taxes on the middle class (FICA) and cutting benefits to the middle and poor (Social Security, Medicaid, government employment, the sequester, etc., etc., it has not hesitated to spend billions on NSA.

And where do those billions go? Into the American economy — into the pockets of NSA workers and NSA suppliers, who in turn spend those billions on food, clothing, school, cars and all sorts of stuff.

And it doesn’t cost you or me or any other taxpayer a dime. Those billions are free economic stimulus, which we so desperately need.

So, Mr. President. Go ahead and spend billions of stimulus dollars on an agency that has accomplished very little. Just keep the guard dogs under control and prosecute its lawbreakers.

And please don’t hassle the one guy to whom we all owe a debt of gratitude, the guy who spilled the beans on malfeasance. I know you’re embarrassed and you should be. But don’t shoot the messenger.

Give him a medal.

And keep on spending.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine 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. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (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. 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. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY

–How long before the Supreme Court makes it legal for you to carry these?

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.

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

How long before our right wing, “originalist” Supreme Court approves this new rifle for gun nuts to carry in the streets, bars and schools for “self-protection” and “stand your ground”?

U.S. super-snipers: ‘Smart’ rifles tested by military could be game-changer
By Douglas Ernst -The Washington Times

The U.S. military has acquired and is now testing “smart” rifles with the potential to be a game-changer on the modern battlefield.

While at the nation’s largest gun show in Las Vegas, Nev., the SHOT Show, the U.S. Army is said to have purchased six “smart” rifles after witnessing the product’s performance in the hands of novice shooters.

A correspondent working for Military.com hit a target from roughly 1,000 yards away on his first shot. He reported that of 70 or so reporters and novice shooters who tried the rifle, only “one or two” missed from the extended range.

When Military.com asked TrackingPoint Inc. Chief Executive Officer Jason Schaubie what the sniper community thinks of the smart rifle, he replied: “This is not necessarily for them. This is for guys who don’t have that training who need to perform in greater capabilities.

Right. This is for average guys. And really, who doesn’t need to kill a robber at 1000 yards?

Remember, guns don’t kill people. Gun nuts kill people.

So Supreme Court, go ahead. Do what you’ve been bought to do.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine 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. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (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. 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. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY

–Steven Hansen asked me to post this

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.

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

According Seeking Alpha:

Steven Hansen is an international business and industrial consultant specializing in turning around troubled business units; consults to governments to optimize process flows; and provides economic indicator analysis based on unadjusted data and process limitations.

I understand “turning around troubled business units,” because that is what I did for more than 30 years. But I must confess to total ignorance about the rest. Perhaps someone can enlighten me.

Anyway, I sent Mr. Hansen a copy of the “Nine Steps to Prosperity” which you can read at the bottom of every recent post on this blog. This is what he sent back:

good evening Rodger,

please post this as a comment. privately, i agree with many (most) of the ideas.

steven

1) i would eliminate taxing income on the middle class – which includes fica. taxes remain on income above a certain level (say $100,000 [*or 250,000 or whatever] per family unit). tax all expenditures (including investments) – with the taxes refunded for people whose earnings were under $100,000*.

I assume he means eliminate taxing on the middle and lower classes, with which I agree. I disagree with taxing investments for four reasons:
*It would impact middle income people who have investments, especially the elderly, who live on investments
*It would make U.S. investments less attractive here and abroad.
*It would reduce the money supply and therefore be recessionary
*The federal government, being Monetarily Sovereign has no need for tax money

2) free medical for everyone. doctors would be educated for free and must work the first 10 years in a government run clinic or hospital. a private system remains for those who want it. the form this takes is not important as long as it is NOT done in the way they did obamacare where middle men (insurance industry) scrapes profits, and tort laws are not suppressed.

I agree with free, full coverage Medicare, Parts A, B and D for every man, woman, and child, plus free education for all (not just doctors). I have serious doubts about making all doctors work 10 years in a government-run clinic. A bit too much government control for my taste.

3) a reverse income tax is a problem for me as i picture how it it is a disincentive for some people (i have relatives …).

The “disincentive” myth — the complaint right wingers use to disparage all social funding — unemployment insurance, free food, free housing, etc. He knows his relatives better than I do, but most people would rather work for $100 than not work for $50.

4) i believe education should be free – but the system is currently failing to properly educate. the system must be changed first. we do not need people graduating without the skills they need in the marketplace to find a job. we are not graduating enough people with technical ability (like electricians, mechanics, carpenters …)

We agree on free education, but waiting for the system to change “first,” is the perfect way never to change the system. The future of America does not focus on electricians, mechanics and carpenters. I think we need more scientific researchers and practitioners.

5) salary to go to school – not sure this is necessary generally.

It’s necessary in families where bright kids can’t go to college because their family needs them to work and bring in money — of which there may be millions. Who knows how many Einsteins, Watsons, Cricks, and Paulings never fulfilled their potential, because their families needed their income? Who knows what advances in our lives would have been possible?

6) eliminate corporate income tax – and replace it with a vat. you cannot have free trade agreements, tax your industry – and expect your domestic corporations to survive or to be as profitable as they could be.

I agree with eliminating the corporate tax. There is no economic benefit for America by taxing corporations. But the VAT is one of the most regressive taxes ever invented — and totally unnecessary. The federal government neither needs nor uses tax dollars. Those dollars are destroyed upon receipt, and no longer exist in the money supply.

7) repeat – no income tax for the middle class.

Agreed. Or for the lower class, either.

8) in general i agree with the concept that the government must invest – and has been failing miserably. i think the nations power grid would have been a good place to start. however, i am beginning to fear the government because our system have become corrupted by the inability to change the constitution, having no sunset laws – and a court system which has hijacked the constitution with rose colored glasses which they change daily.

We all fear the government. I especially fear the U.S. Supreme Court, as corrupt a group as exists anywhere in the government. But we need government investment in order to grow.

9) this is the 21st century. bank deposits should not be allowed to remain in the bank – but are swept into the central bank. this eliminates the fdic, and the need to privatize banks (as they have no depositors money anyway). banks become middle men who sell their loans off to investors.

I think he agrees with my #9.

In total, I’d like to thank Mr. Hansen for his well-considered comments. It’s been a pleasure “talking” with him, and I hope we can continue the “conversation.”

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine 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. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (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. 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. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY

–Rick Newman and mental anorexia

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.

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

Who is Rick Newman? I’ll let him tell you about him:

I’m an award-winning journalist and author covering many of the most pressing issues of our time. As a columnist for Yahoo! Finance, I explain how the momentous changes sweeping through the economy affect ordinary people–and what you can do about it.

I was Chief Business Correspondent for U.S. News & World Report, where I worked as a writer for more than 20 years. I’m also a frequent commenter on networks such as CNN, MSNBC, and Fox, plus a lot of local radio stations.

I’ve ridden on submarines, flown on Air Force jets and tromped through mud with soldiers while covering the Pentagon. I’ve walked the halls on Capitol Hill and interviewed many of America’s top political and business leaders.

I won the Gerald R. Ford Prize for Distinguished Reporting on National Defense. I’ve also won awards from the National Press Club, the Society of Professional Journalists and the International Association of Firefighters. And I’ve been a finalist for the Livingston Award for Young Journalists and the National Magazine Award.

With (my book) Rebounders, I shifted to socioeconomic issues that directly affect millions of Americans.

Wow! Rick Newman is an Expert — which is why I’ve decided to show you excerpts from a column he just wrote for Yahoo Finance:

The Exchange
How China helps pay for Medicare, U.S. aircraft carriers

Chinese holdings of U.S. federal debt hit a new record high toward the end of 2013. We should probably be grateful.

China has been the largest foreign holder of U.S. debt since 2008, when it overtook Japan, which is now No. 2.

Chinese holdings of U.S. debt strike some people as a national-security vulnerability, but that’s largely a myth fed by fear-mongering xenophobes.

Exactly right. This guy really seems to know his stuff.

Chinese holdings of U.S. debt (T-securities) are nothing more than deposits in China’s T-security accounts at the Federal Reserve Bank — essentially identical with deposits in bank savings accounts.

Pay back is no problem for banks or for the U.S. government. To pay back, they just transfer dollars from savings accounts to checking accounts. Simple.

For one thing, the debt held by China only amounts to about 7.6% of the entire $17.2 trillion in U.S. debt. Overall, Uncle Sam’s portfolio of creditors is pretty well diversified.

Borrowing from all sources, including China, also helps Washington pay for more programs than Americans finance on their own through taxes.

Uh oh! Newman says dollars deposited in China’s T-security accounts pay for federal spending. He doesn’t recognize Monetary Sovereignty.

Those dollars in China’s T-security accounts don’t belong to us. They belong to China. Does a (legitimate) bank use depositors’ money to pay its bills?

A trenchant irony of China’s lending to the United States is it helps pay for aircraft carriers, fighter jets, missiles and other military hardware that would menace China if there were ever a standoff between the two nations.

Sure, Mr. Newman. The Chinese are so stupid, they are funding our military, which one day will be used against them. Too bad they don’t have economists as smart as you.

Funds from China also help pay for Medicare, highways, education grants, prisons, food stamps and most other things the federal government spends money on.

He doesn’t “seem to” understand the difference between monetary non-sovereignty (states, counties, cities and him) vs. Monetary Sovereignty.

He acts as though federal financing is just like his own personal financing!

A few programs — most notably, Social Security — have a dedicated source of funding. Medicare is partly funded that way, but money for some parts of the popular healthcare program for seniors comes from the Treasury Department’s general fund.

For the most part, money from taxes and borrowing goes into the same pool at the Treasury, with no distinctions on how dollars from different sources are spent. “Whether the payments are derived from debt or taxes, it’s all one big pot of cash,” says Deborah Lucas, a finance professor at MIT’s Sloan School of Management.

OMG! Now an MIT finance professor spreads The Big Lie?

Rick and Deborah, please listen closely. The Federal government does not maintain “a big pot of cash.” The U.S. money supply does not include such a pot. There is no pot.

If the pot existed, where would it be? The Treasury? If the entire Treasury building, and all those sheets of freshly printed dollar bills, burned to the ground, would the government be unable to pay its bills? No, that would have no effect on federal bill paying.

The government pays its bills by sending instructions (NOT dollars. Instructions.) to creditors’ banks to increase the balances in creditors’ checking accounts. When banks follow these instructions, which they always do, dollars come into existence.

The federal government neither has nor needs a big pot of instructions. It cannot run short of instructions.

Federal financing is different from your personal “kitchen-table” financing.

“When people ask ‘how bad would it be for the United States if China withdrew its money,’ the answer is, ‘how bad would it be for China if the United States went bankrupt?’” says Richard Kogan of the Center for Budget and Policy Priorities. “China has a big stake in the solvency of the United States. They want us to pay all their principal and interest and keep buying the stuff they make.”

And now Richard Kogan joins the ignorance parade. If China wished to withdraw its money, the U.S. government simply would transfer dollars from China’s T-security account at the Federal Reserve Bank, to China’s checking account, also at the FRB. No new dollars needed.

To pay the interest, the U.S. would instruct the FRB to increase the balance in China’s checking account.

As for the “solvency of the United States,” puleeze! The U.S. creates unlimited dollars ad hoc, simply by sending instructions. It is 100%, absolutely, positively impossible for the U.S. to become insolvent.

[By another definition, the U.S. is, and always has been “insolvent,” in that it has no dollars, but that’s just a semantic game.]

And as for “buying the stuff they make,” so long as China’s banks, here and abroad, are glad to accept U.S. Treasury instructions, we’ll be able to keep buying that stuff.

The vast scale of borrowing by the U.S. government is a different story altogether and a legitimate worry.

Why is the size of deposits in T-security accounts at the Federal Reserve Bank a “legitimate worry”?

Washington has made halting progress on its debt recently, with the annual deficit dropping from $1.1 trillion in 2012 to $680 billion in 2013.

There’s still no plan, however, for addressing federal budget gaps that are expected to explode starting around 2020. With luck, China will still have a lot of money to invest by then — and remain in an accommodating mood.

Or, if our luck is “bad,” China will transfer the balances in its T-security accounts to its checking accounts, at which time we will “owe” China zero.

And that will have zero effect on the U.S. government’s ability to pay its bills by sending instructions to creditors’ banks.

Rick Newman’s latest book is Rebounders: How Winners Pivot From Setback to Success

If, like the U.S. Federal Government, you have the unlimited ability to pay bills, by all means buy his book. Make him rich. Otherwise . . . maybe not.

I can’t say whether Rick, Deborah and Richard are owned by rich employers or truly are ignorant of Monetary Sovereignty. But their comments demonstrate why the American-in-the-street remains aggressively ignorant about our economy, and why the money/power gap between the ultra-rich and the rest widens.

It’s hard to blame the public for mental anorexia, when the people are being fed garbage.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine 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. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (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. 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. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY