The bullies and cowards go insane Friday, Jul 15 2016 

Bullies are cowards in tough-guy clothing.

The Republican party, and its leader, Donald Trump, have a well-deserved reputation for bullying and  cowardice.

Example: Being so frightened of unknown “bad guys,” the right-wingers all want to have guns, and not just have guns, but carry guns everywhere. And not just any guns, but high-powered, semi-automatic guns with large magazines, capable of killing as many people as possible in seconds.

Example: Being so frightened of Mexican “criminals, drug dealers and rapists,” the right wing wants to build a gigantic wall across the entirety of America’s long southern border (based on fear-mongering lies about Mexican immigrants).

Example: Being so frightened of non-citizens, Trump and his fellow xenophobes want to deport all aliens and even to deport their American-born children (who by law are citizens).

Example: Being so frightened of Muslim terrorists,  Trump and his right-wingers want to prevent any Muslims (except rich Muslims) from coming to America (a violation of the U.S. Constitution).

So the reactions of the bullies and the cowards to the terrorism in France should come as no surprise:

Trump Calls For Limits On Immigration In Response To Nice Attacks

Donald Trump responded to the attack in Nice, France, by calling for a crack down on immigration into the United States from “terrorist areas” and saying that if he would declare war against the Islamic State if he were president.

Then, in typical Trump fashion, the leader of the Republicans began to babble generalities:

“Obama is allowing a lot of people to come in. We have no idea who they are. They’re from Syria, maybe, but they have no paperwork many times. They don’t have proper documentation. I would make it – I would not allow people to come in from terrorist nations. I would do extreme vetting,” he said.

“A lot of”? “From Syria, maybe”?  “No paperwork many times”? Do we really have “no idea” who they are?  And exactly which nations are “terrorist nations.”

His panic is palpable. This is the man who, if President, should be the calm, controlled leader of the free world, instead maintaining his persona as frightened bully.

When told that the recent shooting in Orlando was carried out by an American, Trump responded with yet another fear-mongering generalization: “The second generation turns out to be very bad for whatever reason.”

Really? The second generation is “very bad”? Based on how many “very bad” people? In the fearful imagination of a cowardly bully, a tiny number becomes an entire second generation of people.

When asked if he would ask Congress to declare war on the Islamic State as president, Trump said, “I would. I would. This is war.”

That was the response of the cowardly draft-dodger, who criticized a real war hero (John McCain), but who himself wriggled out of the military by getting a medical deferment for “bone spurs in his feet” (which appeared suddenly and mysteriously just two years after he received a 1A physical evaluation).  Ever the frightened bully who would be President.

Ever the frightened, fear-mongering bully who would be the leader of America.

And lest you think Trump is an aberration, there’s this:

Gingrich: We Should ‘Test’ Every US Muslim, Deport Them If Believe in Sharia

“Let me be as blunt and direct as I can be,” the former House speaker said. “Western civilization is in a war.

We should frankly test every person here who is of a Muslim background, and if they believe in Sharia, they should be deported. Sharia is incompatible with western civilization.”

Gingrich did not expand on what this test would involve, how it would be applied to the 3.3 million Muslims living in the United States or where the U.S. could deport American Muslims who are citizens.

The proposal would likely violate Constitutional protections of the free exercise of religion and of due process.

“The first step is you have to ask them the questions. The second step is you have to monitor what they’re doing on the Internet. The third step is, let me be very clear, you have to monitor the mosques.”

If ever you have wondered how the entire nation of Germany went insane when it blindly followed Hitler into the Holocaust, you now have your answer.

Then, it was the Jews who were persecuted. Now, the right wing wants to persecute Muslims and non-citizens. It always is the same reason: A crazed, power-hungry, megalomaniacal leader, preys on the fears of the people, and leads them into hatred, immorality, deportation, and eventually, murder.

In all the world, the only thing more dangerous than a coward with power is the maddened mob who follows the coward with power.

We only can pray America will not become that nation. America should not need to suffer the nightmares of Nazism and McCarthyism only to face Trumpism.

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.

MONETARY SOVEREIGNTY

The myths of “Crowding out” Friday, Jul 1 2016 

Reader “CharlesD” bemoaned the difficulty he has had explaining Monetary Sovereignty to Congresspeople. (I feel your pain, Charles.)

He mentioned the “non-partisan” Congressional Budget Offices use of “crowding out” hypothesis,as one of the arguments against the increased federal deficit spending that is inherent in Monetary Sovereignty and the Ten Steps to Prosperity (below).

So far as the CBO being “non-partisan,” the Speaker of the House of Representatives and the president pro tempore of the Senate jointly appoint the CBO Director. The rest of CBO’s staff, including the Deputy Director, are appointed by the Director.

Is it possible to be more partisan than that?

Anyway, partisanship makes little difference, because both political parties and all political directions — right, center, and left — subscribe to the same “crowding out” myths, of which there are several:

Myth I. Federal debt supposedly “crowds out” private debt

From Investopedia: “Because large governments have the power to borrow large sums of money, doing so can actually have a substantial impact on the real interest rate, raising it by a significant degree.

This has the effect of absorbing the economy’s lending capacity and of discouraging businesses from engaging in capital projects.

A. The U.S. government does not borrow, nor does it need to.  What erroneously is termed “federal borrowing” actually is the issuance of T-securities.  Federal “debt” is the total of T-security accounts at the Federal Reserve Bank — similar to bank savings accounts.

In essence, “crowding out” hypothesis proposes that these bank account deposits crowd out lending, a strange idea, indeed.

B. The federal government pays its bills by creating new dollars, ad hoc.  To pay a creditor, each federal agency sends instructions (not dollars) to the creditor’s bank, instructing the bank to increase the balance in the creditor’s checking account.  When the bank does as instructed, dollars are created and added to the economy.

C. Interest rates are determined by the Fed, and evolve from the federal funds target rate, which the Fed arbitrarily sets.

D. Issuing T-securities does not “absorb the economy’s lending capacity.” The federal government does not borrow from banks. The federal government issues T-securities, having no effect on any bank’s lending capacity (which is determined by bank capital).

Myth II. Social welfare programs supposedly “crowd out” private spending.

From Investopedia: Crowding out may also take place because of social welfare, unlikely as this may seem, though indirectly.

This happens when governments raise taxes in order to fund the introduction of new welfare programs or the expansion of existing ones.

With higher taxes, individuals and businesses are left with less discretionary income to spend, specifically on charitable donations toward social welfare or other causes that the government is also funding.

A. Federal spending adds dollars to the economy, thereby increasing the private sector’s discretionary income.

B. A Monetarily Sovereign government’s taxes do not fund the government’s spending. Even if all U.S. federal tax collections fell to $0, the federal government could continue spending, forever.

C. For monetarily non-sovereign (state and local) governments, taxes do fund spending, but that spending goes back into the economy. Local taxing does not create a net change in individuals’ and businesses’ discretionary income.

Ironically, the “crowding out” false claim is that federal spending on social programs crowds out private spending — on social programs.

Myth III. Government-funded infrastructure development projects can discourage privately funded infrastructure programs.

From Investopedia: Another form of crowding out can occur because of government-funded infrastructure development projects, which can discourage private enterprise from taking place in the same area of the market by making it undesirable or even unprofitable.

This often occurs with bridges and other roads, as government-funded development discourages companies from building toll roads or from engaging in other similar projects.

For example, if Build-It Infrastructure Corp. is thinking about building a bridge across the San Francisco Bay and has structured the project’s profit model around charging tolls for cars crossing the bridge, the announcement of a government-funded bridge project in the area will likely prevent Build-It’s project from taking place, as their toll bridge will likely not be able to compete with a free, publicly funded one.

A. Whatever the government does, it can “crowd out” a private company from doing the same thing. Instead, the government may hire a different private company to do the work.

In the “Build-It” example given above, the government usually will hire Build-It or one of its competitors to build the bridge. The government itself does very little of its own work, but generally finances private industry to do the work.

For example, the entire defense industry is built on federal financing. No “crowding out” there.

B. When the government does the work, it usually is because of control and risk. A classic example is NASA, which was funded and controlled by the government, for important political reasons.

Even here, however, the majority of NASA’s work is done by private contractors, who were relieved of the risk inherent in rocketry. Now, many years after the moon missions, private industry has learned enough from NASA’s experiences, the current risk seems acceptable.

Rather than “crowding out” private industry, NASA supported private industry and created an information base which private industry now is using.

Further, NASA pays the private sector (i.e. individual employees) to do the work, and these employees spend their money with private industry.

We have quoted the myths from Investopedia, but in all fairness, Investopedia does mention (at the end of its article) the other side of the story:

On the other hand, macroeconoic theories like Chartalism​ and Post-Keynesianism hold that in a modern economy operating significantly below capacity, government borrowing can actually increase demand by improving employment, thereby stimulating private spending as well.

This process is often referred to as “crowding in,” (which) has gained some currency among economists in recent years after it was noted that during the Great Recession of 2008 enormous spending on the part of the United States federal government on bonds and other securities actually had the effect of reducing interest rates.

Almost, but not quite.

Enormous spending by the federal government on products and services pumped dollars into the economy, which stimulated the economy.

Simultaneously, the Fed lower interest rates, by fiat, which in fact, did not stimulate the economy, and may have had a recessive effect. (See: The Low Interest Rate / GDP Growth Fallacy.)

Low rates cause the Federal Government to pay less interest on T-securities. Thus fewer dollars are pumped into the economy, an economic recessive.

Summary: The “crowding out” hypothesis demonstrates ignorance of economic reality and particularly of Monetary Sovereignty.

Save this article for the next time someone mentions the “crowding out” myth.

=Rodger Malcolm Mitchell
Monetary Sovereignty

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

PLEASE HELP US GET THE WORD OUT
LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

===================================================================================
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.
=================================================================================================================================================================================================================================

Perfect example of why the very rich are smarter than us Thursday, Jun 16 2016 

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.”

In fact, here is the Committee’s own logo:

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? It’s on their logo, for heaven’s sake!

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

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

PLEASE HELP US GET THE WORD OUT
LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

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

Who are the good guys? Who are the bad guys? Friday, May 20 2016 

Who are the good guys? Who are the bad guys?

ASSAILANTS KILL 14 NEAR LOS ANGELES IN WORST MASS SHOOTING SINCE SANDY HOOK

Syed Rizwan Farook, 28, and Tashfeen Malik, 27, entered the Inland Regional Center in San Bernardino and opened fire using assault weapons and handguns, the police said.

Farook, a county employee, attended the holiday party before the shooting, according to the police. He then left in an “angry” manner and returned to open fire

“The only thing that stops a bad guy with a gun is a good guy with a gun,”  NRA’s Executive Vice President Wayne LaPierre

Monetary sovereignty

Who are the good guys? Who are the bad guys?

Were Farook and Malik “good” guys and gals, or were they “bad” guys and gals?

The 2016 Gun-Violence Statistics Out of Chicago Are Horrific

Almost 3,000 Chicagoans were shot in 2015. In the first ten days of 2016, three times as many people were shot in Chicago as in the beginning of 2015, the Chicago Tribune reports.

Donald Trump: “We love the Second Amendment, folks. Nobody loves it more than us, so just remember that.”

Often, Trump shifts the conversation about gun control to mental health, which he says is an issue politicians have ignored for too long. A day after two journalists were killed on live TV in Virginia, he rejected calls to strengthen gun laws.

“This isn’t a gun problem, this is a mental problem,” he said.

monetary sovereignty

Who are the sane guys? Who are the insane guys?

Everything You Need to Know About Federal Background Checks

In the United States, anybody who wishes to purchase a gun at a federally licensed firearms dealer (FFL) is subject to a background check.

Of course, if you think you can’t pass a background check, don’t buy your gun from an FFL. Simple.

The most common reason for a gun purchase denial is a criminal conviction. Nearly 150,000 fugitives, 120,729 domestic offenders, and 109,875 unlawful drug users have been denied in the 17 years NICS has been online.

For all the focus on mental health, the bar for denying someone on psychiatric grounds is very high, leading to relatively few rejections: Only 21,000 applicants have been denied because they were declared mentally unfit by a judge.

Somebody tell that to Donald Trump.

State and local police are not required to submit criminal-record data to the FBI. Reporting “varies widely based on the practices of the individual departments. The smaller the town, the worse the records.”

Federal law does not require states to forward mental health records to NICS, and some states are resistant, citing privacy laws.

The FBI has only three days to make a final determination on the buyer.

Why only 3 days? What’s the rush?

If a decision can’t be made in that time frame, the FFL is allowed by law to go ahead and sell the firearm. The dealer is also not required to notify the FBI when a sale has been made after a three-day delay.

Default-proceed sales are eight times more likely to involve a prohibited purchaser than sales with background checks that are resolved within 72 hours.

What could possibly go wrong with a system like that?

monetary sovereignty

Study these people carefully. Take your time.

Some bought their guns at a federally licensed firearms dealer. Some bought their guns from a friend, or a neighbor, or a stranger on the street, or at a gun show, where no background checks at all were necessary.

Look again.  With which of them are you trusting your life?

Who are the good guys? Who are the bad guys?

Rodger Malcolm Mitchell
Monetary Sovereignty

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

PLEASE HELP US GET THE WORD OUT
LOOK FOR US ON GOFUNDME.COM: RODGER MALCOLM MITCHELL

===================================================================================
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.
========================================================================================================================================================================================================================================================================================================

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

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

 

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