Tag: monetarily non-sovereign

Perfect example of why the very rich are smarter than us

Both political parties are bribed by the very rich, via campaign contributions. The media are owned by the very rich. And the university economists are controlled by university administrations, bribed by contributions.

Even the Supreme Court justices are subject to that subtle form of bribery known as “freebies”: Free meals, free private airplane rides, free hunting trips, free lodging, free gifts, free tickets, etc.

The Supreme Court justices have legalized the bribery of politicians by claiming money is a form of free speech (Buckley v. Valeo), and because free speech cannot be limited, money to influence elections can’t be limited.

The Court essentially ruled rich people are allowed more protected free speech than the rest of us.

Never mind that many forms of “speech” already are limited, including murder threats, terrorist threats, shouts of “fire” in an assemblage, deceptive sales practices, phone calls, etc.

Further, the Court defines “speech” as expressing an opinion, which logically means that shooting someone with whom you disagree also would be a protected form of free speech.

Logic, however is missing for the Supreme Court justices, who claim that unions and corporations are individuals, with all the same bribing rights as individuals (Citizens United v. Federal Election Commission) and in some cases having rights that exceed those of any individual (Burwell v. Hobby Lobby) in which the corporation’s religious rights are more important than the employee’s religious rights.

With all the bribery by the rich, the following should come as no surprise:

WATCH LIVE: CRFB President Maya MacGuineas Testifies Before House Budget Committee
JUN 15, 2016

The House Budget Committee has focused on budget process reform in recent months, hosting multiple hearings covering topics like . . . why Congress must balance the budget.

Most recently we hosted “Fixing the Budget Process” on Capitol Hill featuring remarks from House Budget Committee Chairman Tom Price (R-GA) and a panel of experts, including MacGuineas, that discussed the importance of fiscal responsibility in the budgetary process.

The House Budget Committee long ago had decided the federal budget must be “balanced.”

You might ask why this committee composed of 36 members (22 Republicans and 14 Democrats) needed to spend hours listening to the president of the CRFB, an organization whose existence is devoted to — yes, that same balanced federal budget.

What could the Committee possibly learn from hearing what they already believe?

You can be sure Ms. MacGuineas did not show them this:

U.S. DEPRESSIONS tend to come on the heels of federal budget surpluses.

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.

Nor did she show them this:

Reductions in federal debt growth lead to inflation

RECESSIONS repeatedly come on the heels of debt growth reductions, and are cured with debt growth increases.

And certainly, she did not show them this:

The graph shows no relationship between federal deficits — even large federal deficits — and inflation. the peaks and valleys of deficit growth do not match the peaks and valleys of inflation growth:

So, if Ms. MacGuineas merely parrots back what the Committee already believes what is the purpose?

The committee members rely upon Ms. MacGuineas to tell them exactly what they want to hear:

–Federal financing is no different from personal financing. (Wrong: The federal government is Monetarily Sovereign; people are monetarily non-sovereign)

–A balanced budget will help the economy grow. (Wrong: Balanced budgets shrink the economy.)

–The federal government can run short of its own dollars to pay its bills. (Wrong: A Monetarily Sovereign government never can run short of its own sovereign currency.)

–The federal debt is “unsustainable.” (Wrong: The federal government could pay off the entire debt tomorrow, if it wished to.)

–Federal deficit spending will cause inflation. (Wrong: Being Monetarily Sovereign means being totally sovereign over the dollar, which includes controlling the dollar’s value.)

Because most of the Committee members probably know Ms. MacGuineas is lying to them, we are left with two questions:

  1. Why do they want a balanced federal budget, knowing it will lead to a recession or a depression?
  2. Why does the Committee want to hear from Ms. MacGuineas if they already know what she will say is a lie?

I. Why do members of the Committee want a balanced budget, knowing it will lead to a recession or a depression?

The push for balanced budget invariably leads to reductions in Social benefits for the 99% and increases in regressive taxes — both of which widen the Gap between the rich and the rest.

By definition, it is the Gap that makes the rich rich. If there were no Gap, no one would be rich, and the wider the Gap the richer the rich are.

II. Why does the Committee want to hear from Ms. MacGuineas if they already know what she will say?

The Committee wishes to lend credibility to their current belief that federal finance is like personal finance. They can say, “We went ot an expert and she confirmed we’re headed in the right direction.

The purpose is to fool you into believing a great deal of thought and independent expertise go into Committee recommendations.

We had a similar situation back in 2010. Right-wing Democrat, Barack Obama appointed The National Commission on Fiscal Responsibility and Reform (co-chairs Alan Simpson and Erskine Bowles) to tell him what he wanted to hear: “Policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run”.

Like the House Budget Committee, the Erskine-Bowles committee was “bipartisan,” which is a code word for “Don’t worry about a thing. It has to be fair and good if all we politicians want it.”

In short, Obama wanted to cut the spending that benefits the 99%.

And surprise, the plan did just that. It cut Social Security and it cut Medicare. Those cuts don’t affect the 1%, but the are disastrous for the 99%, as well as for the economy.

And surprise surprise, the omnipresent Maya MacGuineas said, “the Commission released not only a credible plan, but an excellent plan. Of course, it is filled with things people don’t like—that is the nature of deficit reduction. And yet the plan received bipartisan support from a majority of the Commission at a time where, up until now, fiscal leadership has been in short supply”

Notice the sneering tone about the 99%: “Things that people don’t like,” meaning the lazy, stupid poor and middle classes aren’t smart enough to embrace having the bread taken from their mouths.

And “the nature of deficit reduction,” is to cause recessions and depressions, which always punish the 99% more than the 1%.

And there’s that old “bipartisan” word, as though because all those bribed politicians favor something means we, the public, should favor it, too.

Bottom line. It never changes. In a scenario repeatedly coordinated by the rich, bribed politicians appoint a bipartisan Committee, which holds kangaroo-court style hearings, in which carefully selected, well-paid flacks like Maya MacGuineas are trotted forth to lend credence to nonsense.

Based on the pre-ordained findings, the Committee recommends that the Gap between the rich and the rest be widened.

And we believe — not just believe, but angrily argue against anyone who dares to claim the findings are nonsense and we are being lied to.

As I said, the very rich are smarter than us.

=Rodger Malcolm Mitchell
Monetary Sovereignty
===================================================================================
Ten Steps to Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich afford better health care than the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE AN ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefiting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-tranferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.)
Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be an good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

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

THE RECESSION CLOCK

Recessions begin an average of 2 years after the blue line first dips below zero. A common phenomenon is for the line briefly to dip below zero, then rise above zero, before falling dramatically below zero. There was a brief dip below zero in 2015, followed by another dip – the familiar pre-recession pattern.
 Recessions are cured by a rising red line.

Monetary Sovereignty

Vertical gray bars mark recessions.

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

————————————————————————————————————————————————————————————————————————————————————————————————-

Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..
•No nation can tax itself into prosperity, nor grow without money growth.
•Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
•A growing economy requires a growing supply of money (GDP = Federal Spending + Non-federal Spending + Net Exports)
•Deficit spending grows the supply of money
•The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
•The limit to non-federal deficit spending is the ability to borrow.

•Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between rich and the rest..
•Austerity is the government’s method for widening the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY

Five partial solutions to gun violence

No, there are no 100% solutions to gun violence.

But, yes, we can institute certain partial solutions, greatly diminishing the deaths and woundings that occur every day.

1. Interpret the Constitution properly.  Our founders placed the words, “A well-regulated militia being necessary to the security of a free state . . . ” at the beginning of the 2nd Amendment for a reason.Clearly, they understood that allowing everyone to have all kinds of “arms,” without limitation, was dangerous to the public.

We are a nation of laws. Regulation always has been and always will be, the key to public safety.

Even gun enthusiasts would be first to admit that the public should be prevented, by regulation from “keeping and bearing” certain “arms”: 50 caliber machine guns or bazookas or cannons or poison gas, or surface-to-air missiles, or atomic arms, etc.

So the question is not one of regulation vs. no regulation, but merely what kind of regulation?

And the Constitution tells us the answer to that question: “A well-regulated militia.” That is the kind of regulation needed. Guns should be under the control of well-regulated militias. They can be federal militias or even state militias, for those states more addicted to guns, but guns are too important not to be regulated.

2. Federalize gun manufacture and importation The misrepresentation of the Constitution, the bribing of Congress by the gun manufacturers and the gun importers and the NRA, the propaganda telling us that guns make us safer, despite daily evidence they don’t — these all are funded by one motive: The profit motive.Eliminate the gun manufacturer’s and importer’s profit motive, and the elements that put too many guns into the hands of too many people disappear.

3. Apply the RICO (Racketeer Influenced and Corrupt Organizations)laws to gangs. A great many gun killings are committed by street gang members.Entire neighborhoods, even towns, are held hostage by the fear of turf wars, drive-by shootings, revenge shootings, and robberies.Street gangs are criminal enterprises under RICO.

Under RICO, a person who has committed “at least two acts of racketeering activity” drawn from a list of 35 crimes—27 federal crimes and 8 state crimes—within a 10-year period can be charged with racketeering if such acts are related in one of four specified ways to an “enterprise”.

Those found guilty of racketeering can be fined up to $25,000 and sentenced to 20 years in prison per racketeering count.

In addition, the racketeer must forfeit all ill-gotten gains and interest in any business gained through a pattern of “racketeering activity.

Despite its harsh provisions, a RICO-related charge is considered easy to prove in court, as it focuses on patterns of behavior as opposed to criminal acts.

Some patterns of activity include:

It shall be unlawful for any person who has received any income derived, directly or indirectly, from a pattern of racketeering activity or through collection of an unlawful debt. (Bottom line: Every gang member does this, so merely belonging to a gang is considered a crime.)

. . . to acquire or maintain, directly or indirectly, any interest in or control of any enterprise which is engaged in, or the activities of which affect, interstate or foreign commerce. (For example, if your gang deals in drugs, guns or women, you, as a member of the gang, are liable.)

. . . to conspire to violate any of the provisions [of the law]. (Even talking about breaking the law with your fellow gang members is a felony.)

 

 

Your police know who the gang-bangers are. They have lists. The police could round up many of them,  tomorrow.

But rather than arresting gang-bangers, again and again, only to see them let them loose back on the streets to shoot someone, we can break up the gangs and take the gangsters off the streets permanently.

4. Additional penalties for gun carry during a felony Enact a law that essentially says: If you carry a gun while committing a felony, twenty years automatically will be added to the term of the felony itself.

5. Tax gun ownership.  Governments tax personal property, and the amount of tax is determined by the type of property.Place a heavy, annual tax on guns. Make gun ownership expensive.The ostensible purpose of the tax would be to pay for the widespread death, injury and damage to this nation and to its citizens, caused by guns.Anyone caught with a gun, for which no tax has been paid, would be subject to jail, and have the gun confiscated and destroyed.

Denying that guns are a danger to innocent people, while claiming that guns protect “good guys,” as the greedy gun manufacturers tell us, simply hasn’t worked, cannot work and never will work.

Rather than foolishly continuing to repeat failure, common sense must prevail.

There is no way to identify in advance, the so-called “good guys” who should have guns. A “good guy” can become a “bad guy” in an instant, given some minor provocation or no provocation at all.

Even many mass killers have been seeming “good guys,” by any of the myriad definitions.

The only solution is over time to make guns harder and harder to get and use, by a five-pronged offensive:

  1. Interpret the Constitution properly
  2. Remove the profit motive from gun manufacture and sales
  3. Eliminate gangs via the RICO statutes
  4. More jail time for gun-carry during felonies. Get them off the street.
  5. Make gun ownership expensive

Anyone, sincerely hoping to reduce gun violence will renounce the insatiable gun manufacturer’s profit-motivated propaganda, and recognize that for a safer society we must begin to reduce the number of guns in the hands of the populace.

There are many things we are not allowed, yet we agree to the prohibitions, because we understand we must give up something to gain something. That is what being in a society means.

We must give up the unquestioned attachment to guns to achieve a safer society.
Other nations have done it. We Americans can do it, too.

Rodger Malcolm Mitchell
Monetary Sovereignty
===================================================================================
Ten Steps to Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich afford better health care than the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE AN ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefiting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-tranferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.)
Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be an good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

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

THE RECESSION CLOCK

Recessions begin an average of 2 years after the blue line first dips below zero. A common phenomenon is for the line briefly to dip below zero, then rise above zero, before falling dramatically below zero. There was a brief dip below zero in 2015, followed by another dip – the familiar pre-recession pattern.
 Recessions are cured by a rising red line.

Monetary Sovereignty

Vertical gray bars mark recessions.

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

————————————————————————————————————————————————————————————————————————————————————————————————-

Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..
•No nation can tax itself into prosperity, nor grow without money growth.
•Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
•A growing economy requires a growing supply of money (GDP = Federal Spending + Non-federal Spending + Net Exports)
•Deficit spending grows the supply of money
•The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
•The limit to non-federal deficit spending is the ability to borrow.

•Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between rich and the rest..
•Austerity is the government’s method for widening the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY

Ho hum. Another mass shooting. 50 dead.

Another mass shooting. Another 50 lives lost. Many more wounded. Yawn.

Who benefits from all the misery? The gun manufacturers and their paid flacks, the NRA, who convince a gullible public that allowing every damn fool in the street to carry a gun, makes you safer.

So people die. Every day, innocent men, women and children die.

Meanwhile, the gun manufacturers grow rich. The bribed politicians grow rich. The NRA executives grow rich. On blood money.

Soon, will come the denials:

“We good guys need more guns and more powerful guns to protect ourselves from those bad guys.”

“It’s not a gun problem; it’s a mental health problem. We need more mental health.”

“It was foreign terrorism. The Muslims are to blame. The Mexicans are to blame. We need a bigger wall.”

Our cities are stained with your innocent children’s blood, and you demand more guns, more guns, more guns. Guns for you. Guns for your neighbors. Guns for total strangers.

And the gun manufacturers laugh all the way to the bank.

Sure, you want your guns.  But, has it ever occurred to you that your having guns also allows damn fool, complete strangers also to have guns?

And can’t you figure out that when damn fool, complete strangers are allowed to walk the street with guns, that puts you and your family in greater danger?

Is this too complicated for you?

So long as the rich gun manufacturers and the politicians and the NRA can rely on public stupidity, this tragedy will be repeated again and again and again. Just as it has been.

So how about this.  Why the half-way measures? Let’s  just allow everyone to carry fully automatic, machine guns, even 50 caliber machine guns, anywhere.

No background checks. They don’t work, and anyway, you don’t want the government to know you have a gun. Right?

No restrictions. Any restrictions violate the gun manufacturers’ twisted interpretation of the Constitution that they have brainwashed you to believe. (Forget that “militia” nonsense. The framers of the Constitution had some extra words to throw in.)

And you’re a “good guy,” so even if the bad guys carry machine guns, you always can stop them with your machine guns. You’re a better shot than they are.  Right?

And most importantly, the rich gun manufacturers, bribed politicians, and the NRA need your money.

Give me one reason why this is a bad idea.

=Rodger Malcolm Mitchell
Monetary Sovereignty
===================================================================================
Ten Steps to Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich afford better health care than the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE AN ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefiting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-tranferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.)
Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be an good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

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

THE RECESSION CLOCK

Recessions begin an average of 2 years after the blue line first dips below zero. A common phenomenon is for the line briefly to dip below zero, then rise above zero, before falling dramatically below zero. There was a brief dip below zero in 2015, followed by another dip – the familiar pre-recession pattern.
 Recessions are cured by a rising red line.

Monetary Sovereignty

Vertical gray bars mark recessions.

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

————————————————————————————————————————————————————————————————————————————————————————————————-

Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..
•No nation can tax itself into prosperity, nor grow without money growth.
•Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
•A growing economy requires a growing supply of money (GDP = Federal Spending + Non-federal Spending + Net Exports)
•Deficit spending grows the supply of money
•The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
•The limit to non-federal deficit spending is the ability to borrow.

•Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between rich and the rest..
•Austerity is the government’s method for widening the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY

A humorous day in the lives of the crazies — Daily Bell conspiracy edition

The Daily Bell is a blog, the ostensible purpose of which is to promote libertarianism, though if you read their articles and examine the background of its founder, Anthony Wile, you might get the distinct impression their fundamental purpose has been to sell gold to Wile’s customers.

There was a time when I tried to educate Wile about Monetary Sovereignty, but he banned me from his blog.  No surprise, given that MS explodes the myths about owning gold.

How does one sell gold? One creates scare stories, saying the dollar no longer will be accepted, or the U.S. is going bankrupt or there are Martians landing in Area 52 (one more than Area 51), or that some other calamity lurks just around the bend.

Then, all the innocents jump in and gold hawkers make a fortune — which they hold in “worthless” dollars.

Recently, The Daily Bell published another scare article. This one doesn’t mention gold, but it fits in with the gold bug’s mantra (“A disaster is coming and “paper” dollars will be worthless, so you better buy, buy, buy gold.”)

STAFF NEWS; ANALYSIS
New US Civil War? A Clinton Presidency Will Alienate Tens of Millions, Perhaps Violently
By Daily Bell Staff – June 10, 2016

President Barack Obama’s endorsement of Hillary for president may well mean that Hillary Clinton becomes President of the United States. And given the polarizing nature of the Clintons, Hillary’s ascension might usher in a kind of subdued, domestic civil war.

The resistance would be covert but continual.

First, they scared their readers with a bang: “US Civil War” and “Violently.” The rest of the article involved a whimper: “subdued” and “covert.” Conspiracy theorists love the word, “covert.”

No doubt it would lead to a much harsher federal stance as regards civil liberties and presumptive constitutional rights. The authoritarian and repressive trends now percolating in the US would be considerably aggravated by a Hillary presidency.

Ah,  how the right wing hates authoritarianism and repressiveness — such as the forced deportation of 11 million Mexican men, women, and children (many of whom are citizens). Is that authoritarian and repressive enough?

Or does “authoritarian and repressive” refer to laws against abortion, laws against gay marriage, the infamous bathroom laws, anti-Muslim laws, refusal of the Senate to consider any Supreme Court justice,  voter ID laws to prevent the poor from voting, or states costing taxpayers millions just to avoid expanding Medicaid?

Those kinds of authoritarian and repressive laws?

So, exactly which authoritarian and repressive laws is the Daily Bell talking about? They never say. Nor do they say whether the loss of constitutional rights includes ending birthright for children born in the U.S. to foreign parents.

The ironies just won’t quit.

President Obama huddled with Attorney General Loretta Lynch in an Oval Office meeting closed to the media.

Ooohh . . . A conspiracy.  The President talked with someone in the Oval Office, and it was closed to the media.  And here we thought Presidents always had the media present when they talked with people in the Oval Office.

Do you think the media were present when Cheney told Bush torture of prisoners was the American way ? Or was Trump in on it? (He wants to impose even more extreme torture.)

No doubt Obama emphasized to Loretta Lynch that even if the FBI suggested Hillary’s indictment on charges of espionage and public corruption, Lynch ought not to take action.

“No doubt”? “Even if”? The right wing loves to create, out of vague terms, conspiracies, most of which involve taking your guns. One of my favorites was Jade Helm 15, a conspiracy that drove right-wing governor Greg Abbott so insane he called out the Texas National Guard.

It is said there are elements within the FBI that feel very strongly about a Hillary indictment. Even before the larger, public controversy, a kind of internal, federal civil war may commence.

“It is said there are elements . . .” Who said? Which elements? Daily Bell has no idea. It’s just doing its usual conspiracy-mongering.

Loretta Lynch refused to bring indictments against the Internal Revenue Service for its mistreatment of Tea Party groups. And it is likely Lynch will not issue a criminal indictment of Hillary Clinton.

It’s not that she just didn’t bring indictments; she refused to bring indictments. Whom did she refuse? Anthony Wile?

Anyway, why would an Attorney General not bring an indictment?

This may be a longshot, but . . . Could one reason be lack of evidence? To the utter dismay of the right-wing, there also was no indictment in the ridiculous Benghazi “scandal” (the only scandal being the right-wing’s wasted money and 11-hour grilling of Clinton that produced nothing).

By the way, there also was no indictment of Bush and Chaney for lying about the Weapons of Mass Destruction, and the resultant Iraq war, which claimed so many American lives and led to the absolute chaos in the Middle East. Just sayin’.

Fox commentator Judge Andrew Napolitano said on Thursday that an endorsement by President Obama of Hillary Clinton would be a major conflict of interest. Obama’s endorsement of Hillary sends a message to the FBI that the President of the United States wants Hillary to run and win.

If it comes from Fox, it has to be true.  You see, the FBI is so stupid they had no idea  a Democrat, President Obama, wanted a fellow Democrat and his former cabinet member, to win.  They probably thought Obama wanted Trump to win. Fortunately, Napolitano cleared up that mystery for the FBI. Whew!

Donald Trump has been branded a racist. Business and personal accusations are leveled and repeated every day. The constant drumbeat of accusations – and actions – will keep Trump on the defensive.

Trump has “been branded” a racist? You mean, when a guy says Mexican immigrants are criminals and rapists, and when he says a judge whose parents were Mexican immigrants can’t be impartial, and when he wants to ban all Muslims from America, someone has to “brand” him a racist? Doesn’t he do that bit of branding all by himself?

The whole article is absolute nonsense — typical Daily Bell — but this is my favorite part:

There are even those who suspect Trump entered the campaign to facilitate Hillary’s election in the first place. Trump was friendly with the Clintons; they attended one of his weddings.

Well, that settles it. The Clintons attended one of Trump’s three weddings, ergo Trump wants Hillary Clinton to be President.  Some unnamed people suspect it, so how could we not trust it?

Here at DB, we believed that Hillary was not Obama’s first choice to succeed him. And because of what seemed to be Hillary’s obvious mishandling of classified emails, we believed at some point she might be asked to resign in return for a presidential pardon.

But despite mixed signals, Obama’s decision to endorse Hillary seems to indicate that she is safe.  Obama may have believed this is his best move not just politically but also personally – as it is possible his own involvement in the email mess could generate criminal charges.

Do you see any facts at all in the above?  No?

DB’s beliefs are just a bunch of “seems to indicate,” “may have believed,” “it is possible,” and “could” all in the same sentence — fever dreams by a right-wing conspiracy theorist.

There are larger issues here, of course. Obama is not a popular president at this point. And the Clintons seem actively despised by many millions.  Barring some unforeseen development it now looks as if Hillary might be president.

Get it? He’s not popular and she’s actively despised, so it looks like the people will vote for her. That is what passes for DB (Don’t Believe) logic.

A reprise of the Clinton leadership will surely lead to electoral chaos and fury.But the banking interests running the US should be content with this outcome. Perhaps it is part of the plan.

Conclusion: Their slogan is “out of chaos, order.” They may well have their chaos. And no doubt will take advantage of it to create a new and more globalist “order.”

O.K. maybe this one is my real favorite.

DB unearthed this chestnut from of an obscure conversation in which John Kerry lamented the chaos of ISIS and the Syrian war, and the hundreds of thousands of displaced people flooding Europe, and all the other wars around the world. He said he wanted to make some order out of all this chaos.

Doesn’t that make sense to you?

It does to me, but not to the DB. They twisted his words to say the U.S. wanted to create chaos so that we could impose something the right loves to fear (though they never say what it is): A new world order.

What exactly is the new world order? A Big Mac, perhaps? No one knows, but it’s bad. Real bad.

Or, perhaps it means forcing all of Wile’s customer to buy gold.

Ya’ think?

Rodger Malcolm Mitchell
Monetary Sovereignty
===================================================================================
Ten Steps to Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich afford better health care than the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE AN ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefiting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-tranferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.)
Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be an good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

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

THE RECESSION CLOCK

Recessions begin an average of 2 years after the blue line first dips below zero. A common phenomenon is for the line briefly to dip below zero, then rise above zero, before falling dramatically below zero. There was a brief dip below zero in 2015, followed by another dip – the familiar pre-recession pattern.
 Recessions are cured by a rising red line.

Monetary Sovereignty

Vertical gray bars mark recessions.

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

————————————————————————————————————————————————————————————————————————————————————————————————-

Mitchell’s laws:
•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money.
•The more federal budgets are cut and taxes increased, the weaker an economy becomes..
•No nation can tax itself into prosperity, nor grow without money growth.
•Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
•A growing economy requires a growing supply of money (GDP = Federal Spending + Non-federal Spending + Net Exports)
•Deficit spending grows the supply of money
•The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
•The limit to non-federal deficit spending is the ability to borrow.

•Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between rich and the rest..
•Austerity is the government’s method for widening the Gap between rich and poor.
•Until the 99% understand the need for federal deficits, the upper 1% will rule.
•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY