Astounding similarities: Hitler in America. It’s happening now.

THIS POST WAS PUBLISHED IN SEPT 2016. 

Of whom does the following remind you?

A host of earlier biographers have advanced theories about Hitler’s rise, and the dynamic between the man and his times.

Some have focused on the social and political conditions in post-World War I Germany, which Hitler expertly exploited — a yearning for a return to German greatness; unemployment and economic distress; and longstanding ethnic prejudices and fears of “foreignization.”

Hmmm . . . “Make America great again,” anti-Muslim, build a wall. Now who is that?

Hitler as a politician who rose to power through demagoguery, showmanship and nativist appeals to the masses.

Hitler was often described as an egomaniac who “only loved himself” — a narcissist with a taste for self-dramatization and what Mr. Ullrich calls a “characteristic fondness for superlatives.”

Do demagoguery, showmanship and nativist appeals sound familiar? And which egomaniacal politician describes everything about himself as “incredible.”

What about this:

Image result for trump

A former finance minister wrote that Hitler “was so thoroughly untruthful that he could no longer recognize the difference between lies and truth” and editors of one edition of “Mein Kampf” described it as a “swamp of lies, distortions, innuendoes, half-truths and real facts.”

Which politician not only lies the most of any in recent memory but repeatedly denies the incontrovertible evidence of lies?

And this:

Hitler was an effective orator and actor, adept at assuming various masks and feeding off the energy of his audiences. Although he concealed his anti-Semitism beneath a “mask of moderation” when trying to win the support of the socially liberal middle classes, he specialized in big, theatrical rallies.

Which politician is a professional TV actor? Who boasts about huge rallies with thousands of cheering people?

Which politician breeds hatred of minorities?

And this:

He peppered his speeches with coarse phrases and put-downs of hecklers. Even as he fomented chaos by playing to crowds’ fears and resentments, he offered himself as the visionary leader who could restore law and order.

Which politician yells “Get ’em outa here” when heckled? Which politician promises to enforce “law and order”?

And this:

Hitler increasingly presented himself in messianic terms, promising “to lead Germany to a new era of national greatness,” though he was typically vague about his actual plans.

He often harked back to a golden age for the country, the better “to paint the present day in hues that were all the darker. Everywhere you looked now, there was only decline and decay.

Which politician repeatedly tells us we are losing to the Chinese, losing to the Mexicans, losing to the terrorists — losing, losing, losing — but is vague about plans (sometimes claiming they are “secret.”?)

And this:

Because the understanding of the masses “is feeble,” Hitler said, effective propaganda needed to be boiled down to a few slogans that should be “persistently repeated until the very last individual has come to grasp the idea that has been put forward.”

Seen any political slogans printed on hats and repeated constantly in speeches, to remind the “feeble” masses?

And this:

Hitler’s rise was not inevitable. There were numerous points at which his ascent might have been derailed.

(But) in addition to economic woes and unemployment, there was an “erosion of the political center” and a growing resentment of the elites.

(There was) the belief of Hitler supporters that the country needed “a man of iron” who could shake things up. “Why not give the National Socialists a chance?” a prominent banker said of the Nazis. “They seem pretty gutsy to me.”

Does resentment of elites (aka “the establishment”) ring a bell? What about the need for change, to “shake things up”?

And this:

(Hitler’s) conservative coalition partners believed either that he was not serious or that they could exert a moderating influence on him.

Know of any politicians whose own party continues to try to moderate them? Was there speculation about any politicians not really being serious about running for President?

And this:

Hitler, it became obvious, could not be tamed.

The independent press was banned or suppressed and books deemed “un-German” were burned.

Think. Which American politician  wants to sue the press for unflattering articles?

Germans believed, “It cannot happen here.”  But, as the author asks . . .

What persuaded millions of ordinary Germans to embrace Hitler and his doctrine of hatred?

How did this “most unlikely pretender to high state office” achieve absolute power in a once democratic country and set it on a course of monstrous horror?

It happened in Germany. Actually, it has happened in many countries. People fundamentally are the same, everywhere, and everywhere they can be led like sheep to the slaughter by Hitlerian leaders.

Yes, it can happen here. It, in fact, is happening here, right in front of our noses.

Don’t believe, even for one second, that we are immune.

Rodger Malcolm Mitchell
Monetary Sovereignty

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

The single most important problems in economics involve the excessive income/wealth/power Gaps between the rich and the rest.

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

Implementation of The Ten Steps To Prosperity can narrow the Gaps:

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 ANNUAL 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-transferring 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 a 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

Yet another example of why all banks should be federally owned

Visualize this: You go into a bank with a mask and a gun, and you announce, “This is a holdup. All you tellers empty your cash drawers into this bag.”

Then you walk out of the bank, having stolen $3,000.

Later, you are caught, and your sole punishment is that you must give back $500.

See anything wrong with that?

That question occurred to me when I read the following:

Political Pressure Forces Wells Fargo Executives to Give Back $60 Million As Punishment

Wells Fargo was first exposed three years ago by journalists and it has taken this long to finally see some repercussions.

In a first-of-its kind banking scandal punishment, Wells Fargo CEO John Stumpf and banking unit executive Carrie Tolstedt will have to give back a total of $60 million.

Although Stumpf initially tried to blame the scandal on his low-level employees, recent political pressure is forcing him to take additional steps.

Wells Fargo is facing enormous scrutiny over routinely opening unauthorized accounts for clients in order to make sales goals. The bank  already has been fined $185 million.

Wells Fargo also fired 5,300 employees, all at lower levels.

The executive in charge of the branch that was responsible for pushing for and implementing the fraudulent accounts, Carrie Tolstedt, was set to retire later this year with a payout of $124.6 million.

But now, after pressure from senators such as Elizabeth Warren, Wells Fargo’s board is forcing the top executives to pay up out of their own pocket.

John Stumpf will have to forfeit $41 million in past compensation and Carrie Tolstedt, who has already resigned, will have to give back $19 million of her own.

Get it? For years, the Chief of Fraud earned millions of dollars and left with $124.6 million extra.  Her “punishment”: $19 million.

The boss, Stumpf, who earned massive yearly salaries and bonuses, will give back the comparative pittance, $41 million.

If that’s punishment, I volunteer. Punish me, PLEASE.

Clawbacks are an important concept for banking regulation. Normally banking executives aren’t affected if their company gets caught bending, or breaking, finance rules to help company stock rise.

Actually, clawbacks are an important part of conning you, the public, into believing banksters are being dealt with harshly.

Are you suitably conned?

I can just visualize the Wells Fargo boardroom: “Well, we got caught, but let’s not kill the goose that lays the golden eggs.

“We stole hundreds of millions, so let’s give back a few million and hope this all goes away. Then it’s back to business as usual.”

Stumpf may claim that he “knew nothing, nothing I tell you,” which is obvious BS.

But let’s take him at his word, and assume he did know nothing. If the president of the bank doesn’t know about systematic criminality in his own bank, how could  regulatory agencies do what the president can’t?

Clearly, the bank president, who works full time at the bank, and is paid hundreds  of millions to know what’s going on in his own bank, is in a far better position to uncover wrongdoing than is some underpaid FDIC accountant, who visits the bank once a month, if that.

Bottom line: If the full-time, bank president doesn’t know his own bank, and the little FDIC accountant surely doesn’t, regulation of privately owned banks is impossible, especially with laughable “punishments” for crimes.

Stumpf, Tolstedt et al were motivated by bank profits and personal greed.

A federally owned bank would be run by salaried federal employees. Our Monetarily Sovereign government has no need for profits. So, it won’t pay outrageous bonuses (i.e. crime motivators) to obtain what it doesn’t need.

Wells Fargo is the poster child for Step #9 of the Ten Steps To Prosperity (below): Federal ownership of all banks.

Now if only we could wean Congress off the bribes they receive from the banks.

Is it too late to ask Elizabeth Warren to run for President?

Rodger Malcolm Mitchell
Monetary Sovereignty

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

The single most important problems in economics involve the excessive income/wealth/power Gaps between the rich and the rest.

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

Implementation of The Ten Steps To Prosperity can narrow the Gaps:

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 ANNUAL 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-transferring 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 a 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

Do you really want to reduce street crime? Really?

Though the ostensible purpose of laws is to prevent crime, the effect of all laws is to create crime. If there were no laws, there would be no crime.

Every time a legislature passes, and a president or governor signs a law, a new  crime is created.

Each of us, consciously or not, evaluates five considerations when deciding whether or not to commit a crime:

  1. Our perception of morality and of ourselves.
  2. Our likelihood of being caught
  3. Our likelihood of being punished
  4. Our view of the severity of the punishment
  5. Our life without breaking a law.

This is true for all crime, “white collar” and violent crime.

The real purpose of all laws is not to reduce crime, but rather to control the populace according to legislators’ wishes.

When lawmakers perceive the populace doing something the lawmakers don’t like, the first step is to criminalize, i.e pass a law against, the act.

That notably was true in 1920:

Prohibition in the United States

Prohibition in the United States was a nationwide constitutional ban on the production, importation, transportation and sale of alcoholic beverages that remained in place from 1920 to 1933.

Criticism remains that Prohibition led to unintended consequences such as the growth of urban crime organizations.

Alcohol was legal in neighboring countries. Distilleries and breweries in Canada, Mexico, and the Caribbean flourished as their products were either consumed by visiting Americans or smuggled into the United States.

Journalist H. L. Mencken: “Prohibition worked best when directed at its primary target: the working-class poor.

Historian Lizabeth Cohen writes: “A rich family could have a cellar-full of liquor and get by, it seemed, but if a poor family had one bottle of home-brew, there would be trouble.”

Working-class people were inflamed by the fact that their employers could dip into a private cache while they, the employees, could not.

The varied terrain of valleys, mountains, lakes, and swamps, as well as the extensive seaways, ports, and borders which the United States shared with Canada and Mexico made it exceedingly difficult for Prohibition agents to stop bootleggers.

Prohibition created a black market that competed with the formal economy, which came under pressure when the Great Depression struck in 1929.

State governments urgently needed the tax revenue alcohol sales had generated. Franklin Roosevelt was elected in 1932 based in part on his promise to end prohibition, which influenced his support for ratifying the Twenty-first Amendment to repeal Prohibition

While alcohol is a harmful and addicting drug, and Prohibition did reduce alcohol consumption somewhat, the social cost was far greater than the benefits.

By now, you probably have noticed the incredible similarity between Prohibition and today’s “War on Drugs,” which is, in reality, a war on the poor.

Previously we discussed:

An easy solution to violent crime:

Reduce violent crime by reducing poverty. Reduce poverty by implementing the Ten Steps to Prosperity (See below).

The vast majority of violent crimes are committed by poor people. They feel they have no legal alternatives for obtaining money, so they take it illegally.

And much violent crime is related to the “War on Drugs,” which is even less effective than was the “War on Alcohol.” (Fortunately, we have been wise enough to avoid a “War on Cigarettes,” nicotine being one of the most common addicting drugs in America.)

Many communities, particularly black communities, have been destroyed by the War on Drugs. Once convicted, jailed and released, young men are unable to find jobs, so are encouraged to commit more crime, in a never-ending cycle of violence. 

They also are encouraged to leave school and to join violent gangs as a way to protect themselves in the mean streets.

Not only does the “War on Drugs” create and encourage crime, destroy communities, discourage school attendance, and cost millions of lives and billions of dollars, but it doesn’t reduce the availability of drugs — and never will.

Any K-16, child who wants illegal drugs, has no difficulty finding sources.  Drugs exist in elementary schools, high schools, colleges and on the street.  They are everywhere.

The American public has been misled into believing that violent crime can be stopped via additional punishments and police brutality.

But is that the America we want — an America where even innocent citizens are victims of police savagery and long incarcerations — especially when the “solution” doesn’t work, and especially when two productive solutions are available.  

We cannot continue doing the same things, hoping to get a different result.

We greatly can reduce the need for street crime by reducing poverty (via the Ten Steps to Prosperity). And we greatly can reduce the reward for street crime by eliminating one of the most important causes: The laws against drugs.

For it is not drugs that are the problem, but rather the problem is the laws against drugs  — the laws that create crime.

Street drugs, like other drugs (alcohol, nicotine, marijuana in some states) all should be treated similarly: Production and usage should be legal. Producers should be regulated, licensed and taxed.  Importation should be regulated. Users should not be prosecuted.

Are you among those who think America can’t afford the Ten Steps to Prosperity?  Do you think reducing poverty is unfair and only makes the poor lazy? Do you prefer to continue doing what doesn’t work?

Or, do you really want to reduce street crime? Really?

It comes down to this: The Ten Steps plus legalization of drugs, or more of the same?

Take your choice.

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.

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

MONETARY SOVEREIGNTY

Is Moody’s a criminal enterprise or just plain ignorant?

I’ve written about Moody’s before. You may know Moody’s as one of the “Big Three” credit rating agencies that gave high grades to worthless securities, and helped start the Great Recession.

You also may know standard practice for rating agencies is to be paid by the businesses they rate, a clear conflict of interest and an open invitation to criminality.

And, if you are a regular reader of this site, you know that unlike cities, counties, states, euro nations, businesses, you, and me (all of which are monetarily NON-sovereign), a Monetarily Sovereign (MS) nation never can be forced into bankruptcy. Never.

A Monetarily Sovereign nation can pay any bill of any size at any time, simply by creating its money. For MS governments, ability to pay never is an issue. The only issue is willingness to pay. 

Thus, an MS credit rating cannot legitimately be based on the amount of indebtedness. If the MS nation is willing, it can pay any bill.

An MS nation, even with minimal debt, could be given a low credit rating, if it has a history of refusing to pay its bills.  But, an MS nation, even one with huge debt, should receive a high credit rating if it always pays its bills.

To summarize, the “Big Three” credit agencies have a history of mis-rating securities, being paid by the subjects of their ratings and, as you will see, probably not recognizing the fundamental differences between Monetary Sovereignty and monetary non-sovereignty.

Reader “elizabethharris001” brought to our attention, an article in the Jerusalem Post titled, “Moody’s warns Israel new budget could downgrade credit rating.” The article said, in part:

Credit rating agency Moody’s on Thursday warned that the 2017- 2018 state budget proposal could be a step toward undermining Israel’s solid A1 credit rating.

Israel has a “solid A1 credit rating,” because it always pays its bills, in full and on time.

Finance Minister Moshe Kahlon swept aside legal limits on spending increases and the deficit target in his budget proposal, which accommodated the many, expensive promises made in coalition deals.

The plan is expected to raise Israel’s debt-to-Gross Domestic Product (GDP) ratio, which fell below 65 percent in the past year.

This will have no effect on Israel’s ability or willingness to continue paying its bills, in full and on time.

“The rating or outlook could come under downward pressure if the commitment to fiscal discipline over the medium term was to wane,” the agency wrote in its annual Credit Analysis of Israel’s government.

“With the improvement in debt-to-GDP having already slowed compared to the mid-2000s, renewed fiscal easing puts at risk Israel’s credibility for budget discipline,” the report said.

When Moody’s mentions “budget discipline,” it is talking about austerity, the same process that has destroyed the economies of the euro nations — the same process that is responsible for every depression in U.S. history, as well as most recessions.

The Moody’s report was not all gloomy, however. It also praised Israel’s dynamic economy and its relatively strong performance when compared to many other advanced countries, still struggling in the aftermath of the 2008 global financial crisis.

Israel has a “strong performance,” but its debt above 65% of GDP warrants a reduction in credit rating? Think about the “logic” of that.

By confusing (intentionally??) MS nation finances with business finances (where large debt can impact ability to pay) Moody’s claims Israel’s debt requires a reduced credit rating.

Utterly false and misleading — demonstrating an ignorance bordering on criminal.  Is Moody’s even consistent in its false evaluations?

From Trading Economics:
Government Debt to GDP in Japan averaged 123.60 percent from 1980 until 2015, reaching an all time high of 229.20 percent in 2015.

Moody’s credit rating for Japan was last set at A1 with stable outlook.

Before we continue, Moody’s credit ratings, from top to bottom are: Aaa, Aa1, Aa2, Aa3, A1, A2, A3, Baa1, Baa2, Baa3, and lower.

Japan’s 229 and Israel’s 65 apparently warrant the same rating, and neither Japan nor Israel has been given Moody’s highest rating, despite the fact that both are Monetarily Sovereign and can and do pay all their bills on time.

Let’s look at a few other countries, courtesy of Trading Economics:

Canada: Debt to GDP of 91.50; Moody’s credit rating: Aaa

Canada, an MS nation with a much higher Debt/GDP ratio than Israel’s, and no better record of paying its bills, has an Aaa rating, four levels higher than Isreal’s current rating (which is about to be lowered).

As if that weren’t strange enough, let’s look at really crazy:

“Austria’s public debt reached a new peak of 86.2 percent of GDP in 2015 compared to 84.3 percent in 2014.”  Moody’s credit rating: Aaa, the highest rating.

So Austria, with a “worse” Debt-to-GDP ratio that Israel’s, and no better record of paying its bills, has a higher credit rating — and Austria, unlike Israel, is monetarily NON-sovereign.

Austria is part of the eurozone; it uses the euro, not it own sovereign currency. Austria does not have the unlimited ability to pay its bills. Unlike Israel, Austria could go bankrupt. But it has Moody’s highest rating.

And then here’s another eurozone nation, Germany:

“Germany recorded a Government Debt to GDP of 71.20 percent in 2015.” Moody’s credit rating: Aaa.

Germany too, is monetarily non-sovereign, and could be unable to pay its bills, but has Moody’s highest rating.

Finally, we come to the United States:

The United States recorded a Government Debt to GDP of 104.17 percent in 2015. Government Debt to GDP.  The United States averaged 61.94 percent from 1940 until 2015, reaching an all time high of 121.70 percent in 1946 and a record low of 31.70 percent in 1974.

Moody’s rating: Aaa

I call your attention to that 31.70 lowest Debt/GDP ratio. It comes right before a recession.

Monetary Sovereignty

In fact, there is an uncanny relationship between debt reduction and recessions. Most recessions follow a period of federal debt reduction.

And then there’s this inconvenient fact:

U.S. depressions tend to come on the heels of federal 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.

Finally, while Gross Domestic Product is a measure comprising 12 months, Federal Debt is a historical measure comprising the entire life of the United States. In short is the classic apples/oranges, meaningless ratio.

Bottom line: Moody’s (as well as the other two major rating agencies, S&P and Fitch) either do not understand how Monetary Sovereignty works or are paid not to understand.

They evaluate nations as though the nations were monetarily non-sovereign businesses. The rating agencies don’t reveal the basic fact that an MS nation cannot be forced into bankruptcy. It can pay its bills forever, despite its Debt/GDP ratio.

Any credit rating is based on just two factors: Ability and willingness to pay bills.

Because an MS nation has the unlimited ability to pay, Debt/GDP has no meaning when evaluating credit. No matter what its Debt/GDP ratio, any nation may or may not be willing to pay its bills.

The Big Lie states: “Federal taxes fund federal spending.” But for an MS nation, spending is funded by money creation, not by taxes nor by borrowing.

The Big Lie is a carefully crafted story. It is designed by the very rich to convince everyone there isn’t enough money available to narrow the Gap between the rich and the rest.

The Big Lie forces countries to cut the spending that would benefit the lower and middle classes. It caused our too-slow growth following the “Great Recession.” It is the method by which the very rich retain power over the world.

The credit agencies are willing, and well-paid, accomplices to the Big Lie.

Is it ignorance or paid criminality? You decide.

Rodger Malcolm Mitchell
Monetary Sovereignty

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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