Tag: monetary sovereignty

–How dare he? Obama moves to stop climate change

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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. .
•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 poor.
•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..

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The following post has been edited by the Republican National Committee, Pete Peterson, the Koch Brothers and Judges Roberts, Thomas, Scalia and Alito.

As every educated person Republican knows, climate change is happening right now a fraud, just like evolution, Social Security, Medicare, anything that helps the poor, and any need for gun control.

But President Obama has decided to follow ignore the learned scientific opinions of virtually every climate scientist Jeb Bush, Ted Cruz, Mike Huckabee, Rick Perry, Donald Trump et al, and plow ahead with actions to prevent a climate disaster affecting all of human kind Republicans from enriching the rich while screwing the public.

To keep you ignorant informed, we present excerpts from the right-wing nut-case nonpartisan Washington Times.

Obama admin grants green groups unprecedented power in crafting climate policy: Senate report

As the Environmental Protection Agency crafted rules to limit carbon emissions from power plants, key stakeholders — including the American public — had little to no influence over the debate while powerful environmental activist groups were given unprecedented access to and influence over administration officials, a Senate committee charged Tuesday.

A report from the Senate Environment and Public Works Committee breaks down in detail off-the-books meetings and email conversations, sometimes through private, non-government accounts, between top EPA officials and leaders with the Natural Resources Defense Council (NRDC), the Sierra Club and other environmental organizations.

Those secret, “off-the-books” meetings considered the most up-to-date scientific knowledge failed to consider the Koch brothers’ money needs.

Alleged collusion between the EPA and the environmental movement, along with the fact that a host of former environmental activists have found their way into high-level positions in the Obama administration, is nothing new.

But the Senate study, relying on emails and other records obtained during an ongoing investigation, makes clear that the EPA and top environmental groups see themselves as deeply intertwined in the push to cut carbon pollution and pursue other pieces of President Obama’s broad, controversial climate-change agenda.

It is encouraging outrageous, that those knowledgeable and concerned about the environement selfish activists wish to cut carbon pollution, when Pete Peterson and most Republican candidates understand there is no climate change at all.

Other stakeholders, such as the energy industry, manufacturers, and members of the public, only took part in the rulemaking process through the normal, legally required public comment period that comes between a proposal and finalization of a rule.

Republicans care only what is best for the rich businessmen public good.

The report comes one day after Mr. Obama and EPA Administrator Gina McCarthy formally unveiled the Clean Power Plan, which will require a 32 percent reduction in carbon emissions from power plants by 2030.

The plan has touched off a firestorm across the country, with Republicans in Congress vowing to block the regulations in any way they can, Republican governors promising to ignore the rules entirely and a coalition of 15 attorneys general readying new lawsuits challenging the plan in federal court.

Though the vast majority of the public is deeply concerned about climate change The Tea/Republican Party of the Rich Republican Party is angry, because reducing carbon emissions not only will cut air pollution, but will reduce the disaster of climate change will cost the Kochs money.

The Clean Power Plan regulations follow similar rules limiting emissions from new fossil fuel-fired power plants. Those rules, and others, were heavily influenced by environmental groups

Limiting pollution and global warming is exactly what environmental groups are supposed to do to save our children and the planet completely unnecessary. Unfortunately Fortunately, the Republicans are dedicated to the health and survival of rich businessmen, campaign contributors the human race.

The report lays out numerous examples of environmental activists meeting with top EPA officials at coffee shops or other locations outside agency headquarters, presumably to skirt visitors logs and otherwise shield the frequent contact between the two camps.

The Washington Times tries to imply a clandestine and sinister meaning to fortunately for everyone, learned environmental activists meet with EPA officials in coffee shops.

Here’s a great big “Screw you”“Thank you” to the Washington Times for being such a blatant tool of the very rich watchful guardian of the public good.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK
Monetary Sovereignty

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.

#MONETARYSOVEREIGNTY

–How the “stinking liars” inadvertently disclosed why the debt is necessary

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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. .
•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 poor.
•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..

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

The previous post told you of “stinking liars,” those politicians, media and economists who tell you the federal government’s finances are like your finances, and so the government can run short of dollars and needs to eliminate debt, cut spending and increase taxes, i.e invoke austerity upon us.

The purpose of what we term, the Big Lie is to widen the Gap between the very rich and you, mostly by pushing you down.

Wouldn’t you know it, but shortly after we published that post, the right-wing, Chicago Tribune published an editorial filled with the very Big Lies we had just deplored.

It should have been titled, “The Chicago Tribune’s Big Lies,” but instead it was titled:

The next president’s debts

ct-us-national-debt-20150715-jpg-20150731
Federal Reserve Board Chairwoman Janet Yellen testifies in front of a monitor counting the current U.S. national debt while appearing at the House Financial Services Committee hearing on the state of the economy July 15, 2015, in Washington.<

Instantly, we are treated to the specter of Janet Yellen sitting in front of a misleading scare-sign, designed to make you worry about the so-called “debt,” when in fact, it shows nothing more than the total of T-security accounts at the Federal Reserve Bank.

Every single one of those dollars is safely ensconced in T-security accounts (similar to your bank savings account). You own some of those dollars, if you own any T-bills, T-bonds, etc.

And the bank owes you those dollars, but you don’t fret about bank “debt,” do you? (And you certainly wouldn’t fret if your bank had the unlimited ability to create dollars.)

You may have your dollars back in an instant, merely by having them transferred from your T-security account to your checking account. No problem at all, and no burden on the federal government or future taxpayers or your grandchildren or anyone else the liars claim will destoy America.

So there was the Chicago Tribune’s first Big Lie, shamefully aided and abetted by the Chairman of the Federal Reserve.

On the mid-July day Jeb Bush candidly told Sioux City Republicans he wants to curb federal favors to Iowa’s ethanol industry, he got a lucky pick-me-up from the non-partisan group, First Budget: How, asked a member of this ascendant advocacy group, would he balance federal revenue and spending?

Who is “First Budget” and why would anyone want to “balance federal revenue and spending”?

Well, “First Budget” has a website that proudly states, “First Budget is a joint nonpartisan initiative of The Concord Coalition and the Campaign to Fix the Debt. Those are two nefarious right-wing, austerity front groups, whose purpose in life is to tell you that federal support of economic growth is bad for you and for your descendants.

“Nonpartisan”? “NON PARTISAN”???

To give you an idea of how shameless the lies are, the Campaign to Fix the Debt was founded by the notorious duo of Erskine Bowles and Sen. Alan Simpson. Remember them? Yes, these are the guys who brought you the sequester, the disastrous debt-cutting program that set back our recovery from the Great Recession by many years. We still haven’t recovered.

And Fix the Debt is bankrolled by the even more notorious Pete Peterson: [ The Campaign to Fix the Debt is the latest incarnation of a decades-long effort by former Nixon man turned Wall Street billionaire Pete Peterson to slash earned benefit programs such as Social Security and Medicare under the guise of fixing the nation’s “debt problem.”]

Bush, who favors raising the age at which Americans can draw Social Security, said he also backs a federal hiring freeze and not replacing all retirees.

“You are not going to get it to balance immediately, but with high (economic) growth and a focused approach to limiting spending, including entitlements over the long haul, you can get it in balance,” Bush said.

“Without (the economy) growing, it won’t happen. And if we don’t fix the entitlement system, it won’t happen.”

What gibberish! Can anyone explain how fewer people receiving Social Security payments, fewer people receiving employment from the federal government, and more people paying more taxes (to achieve “balanced revenue”) will achieve “high economic growth”?

It’s utter nonsense, sort of like scoring fewer runs and giving up more runs, will help the Cubs win more games. What Bush, Bowles, Simpson, Peterson et al propose, is designed to reduce economic growth, and more specifically, to widen the Gap between the rich and the rest.

And as for balancing revenue (taxes) with spending, that would mean no new dollars entering the economy. If anyone can explain how an economy can grow if its money supply doesn’t’ grow, I’d love to hear it. That would be a miracle of economics, indeed.

With that frankness, a candidate for president paid his respects to First Budget’s pressure over the existential threat that federal debts and entitlements pose to America as we know it.

There, in one sentence, the owned-by-the-rich Tribune expresses the Big Lie: The statement that America cannot exist with those big T-security bank accounts, and that rather than stimulating the economy, Social Security and Medicare payments slow the economy.

Never mind that the bought-and-paid-for media have been saying the federal debt is a “ticking time bomb” for at least 75 years. And here we still are. Still ticking.

In the Tribune’s “black is white, and up is down” Big Lie, adding money to the economy shrinks the economy, while austerity grows the economy.

Yeah sure, austerity works. Just ask Greece.

Looming over these dangers is a current federal debt — that is, a federal taxpayers’ debt — of $18.3 trillion.

There’s another Big Lie.

In reality, Not one taxpayer owes one cent of the federal debt, though millions of taxpayers OWN billions of dollars of the federal debt. They own T-security accounts at the Federal Reserve Bank.

And the bigger the misnamed “federal debt,” the more money taxpayers own in T-security accounts. The more proper name would be “T-security deposits” rather than “debt.” Isn’t “deposits” what you call the money you have in bank accounts?

The Tribune article ends with this revealing question, in which the “stinking liars” accidentally admit why the so-called federal “debt” is necessary:

As for candidates always prattling that they want to “invest” more in schools, or defense, or a hundred other needs: At their events or in your talks with their surrogates, ask the questions First Budget volunteers are forcing politicians to confront.

As two of the group’s officers wrote in a July 19 op-ed for The Cedar Rapids Gazette, “If they promise tax cuts or more spending, how will they pay for them without increasing the debt?

Exactly right. You cannot pay for all the benefits the world’s wealthiest Monetarily Sovereign government should provide, without increasing the so-called “debt.”

The rich don’t want you to have those benefits, so they create a straw man: The “unsustainable” debt. It’s a stinking lie but, that’s the whole point, isn’t it?

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK
Monetary Sovereignty

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.

#MONETARYSOVEREIGNTY

–Which stinking liars are stealing your children’s Social Security and Medicare?

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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. .
•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 poor.
•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..

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

Virtually all politicians are liars, as are some journalists and economists — but the scummiest low-life liars of all are the people who tell you Social Security and Medicare are running short of money and the “solution” is to cut benefits and/or increase taxes.

These people should be skinned alive, boiled and salted, after which painful things should be done to them.

They are paid by, and do the bidding of, the rich and powerful, to hurt the weak and powerless.

“Rich” is a comparative term. The Gap between the rich and the rest, is what makes the rich rich. Without the Gap, no one would be rich, and the wider the Gap, the richer they are.

So, it is a prime goal of the rich to widen the Gap by impoverishing the rest of us. And virtually all politicians, some writers, and some economists are only too happy to oblige the rich.

Who’s Ready for a 10% Cut to Their Social Security Benefits?
By Sean Williams, August 2, 2015

The Social Security program is designed to replace about 40% of a workers’ income.

In reality, though, nearly half of all unmarried elderly beneficiaries get 90% of more of their income from Social Security. The thought of tinkering with benefits is equally worrisome for baby boomers nearing or just entering retirement. Many were clobbered by the Great Recession, and a good chunk could be entering retirement with an inadequate amount of savings.

The Social Security program, however, isn’t in great shape. The Old-Age, Survivors and Disability Insurance Trust, or collectively the OASDI, is slated to burn through its remaining cash reserves by 2033.

If Congress can’t come to a long-term solution that involves raising additional revenue and/or cutting expenses, benefits for eligible beneficiaries will be cut by 23%.

If Social Security were a privately run program or a local government-run program, the above paragraph could be true. The program could “burn through cash reserves,” and the solution would be to”raise additional revenue or cut expenses and benefits.

But Social Security is a federally-run program, and unlike you and me and local governments, the federal government never can run short of dollars.

The author of the article, Sean Williams, is telling a great, big, fat lie, when he says, “If Congress can’t come to a long-term solution that involves raising additional revenue and/or cutting expenses, benefits for eligible beneficiaries will be cut by 23%.

Not that Congress won’t continue cutting benefits, as it already has been. But the point is, Congress doesn’t need to cut benefits.

In fact, even if FICA, the tax that supposedly funds Social Security, were cut to $0, Social Security could continue paying benefits forever — even increase benefits forever.

According to Republican presidential candidate Chris Christie, we need to make some pretty radical reforms to the entitlement program.

Christie’s recommendation to fix Social Security, like many before it, focuses on the coming generations to receive Social Security benefits and not on current retirees.

Thus, if you’re already receiving benefits, you can breathe a bit easier.

Yes, you can breathe easier, if you don’t give a damn about your children and grandchildren. Just sit back, and watch the politicians cut their benefits and increase their taxes.

Christie would like to see the full retirement age moved from age 67 to 69. He also wants to enact a raise to the minimum age at which retirees can claim benefits from age 62 to age 64.

It’s called the “work-until-you-drop (if you even can find a job at that age)” plan.

Christie’s proposal may coerce pre-retirees and Generation X to work longer, which makes sense given that we’re living longer than ever.

Sure it makes sense to the Party of the Rich. You are not rich, therefore you are a lazy good-for-nothing, who needs to be coerced to work and work and work. Heaven forbid you might enjoy a longer retirement.

In the eyes of the rich, only rich people are not lazy, so they deserve the enjoyment of a longer retirement. Not you.

Instead, you middle-class people, having been granted longer lives, are told you should be delighted to search for jobs and to labor those extra years. Strangely, most not-rich people believe it.

But Christie’s proposal also has adverse effects. It turns out that raising the retirement age could be very bad news for the nation’s poorest citizens who rely on Social Security income in their golden years.

But really, who cares about them, so long as the rich (courtesy of the right wing Supreme Court) legally are able to bribe politicians like Christie, to lie about Social Security?

As The Washington Post reports, lifetime Social Security benefits can often reflect a person’s socioeconomic status. The poorest Americans often lack access to adequate nutrition and healthcare, while the richest Americans have ample access to medical care and can make healthier food choices.

So, cutting Social Security benefits and Medicare benefits, while raising taxes, are exactly what the wealthiest nation on earth should be doing to your children and grandchildren. Right?

According to The Washington Post, which conducted an informal study last year that allowed online respondents to select which of 12 methods they’d support to fix Social Security (respondents could select all that appealed to them), boosting the earnings cap on the payroll tax proved to be by far the most popular fix.

The 12 options are:

Cut benefits across the board today (100%)
Raise the full retirement age (20%)
Freeze the purchasing power of benefits (95%)
Freeze benefits on a sliding scale (55%)
Change the cost-of-living adjustment (20%)
Do nothing (but cut benefits when the Trust Fund reserves are gone) (100%)
Increase the payroll tax on everyone today (100%)
Raise the earnings cap (30%)
Use the estate tax to tax health benefits (35%)
Transfer start-up costs to general revenues (100%)
Raise the return on assets by investing in the stock market (20%)
Do nothing (but raise taxes when the Trust Fund reserves are gone) (100%)

Could a survey be any phonier?

It provides 12 so-called “options,” all of which boil down to “cut benefits and/or increase taxes,” while leaving out the one true option: The federal government should pay for Social Security and Medicare. Period.

Here is what Sean Williams and all the politicians who want to cut benefits and increase taxes don’t tell you: FEDERAL TAXES DO NOT FUND FEDERAL SPENDING FICA doesn’t fund Social Security and Medicare.

President Roosevelt, who originated Social Security knew FICA was not necessary. He created FICA only to prevent politicians from eliminating the program, not to pay for the program.
fre are running out of money?

Why?

The answer: The rich don’t want the White House the Supreme Court and Congress to run out of money, but the rich do want Social Security to run out of money.

By pressing down on middle classes and the poor people’s income, the rich widen the Gap. They make themselves richer by comparison.

Whenever you hear any politician — Christie, Bush, Obama, Boehner et al — or read any article, saying that the Social Security “Trust Fund” is running short of dollars, know this: The speaker or writer is a stinking liar, who has been paid by the rich to take money from your children and grandchildren.

And pay no attention to phony claims that certain increases in FICA also will take money from the rich. The rich aren’t affected by a few dollars taken from salaries.

Many of the rich don’t even earn a salary (Have you ever wondered why FICA only is applied to salaries and not to capital gains?), A few dollars means nothing to the rich — though it can mean quite a lot to the poor and the middle.

Who is stealing your children’s Social Security and Medicare? The scummy, low-life politicians, journalists and economists — and you, if you believe their stinking lies.

Rodger Malcolm Mitchell
Monetary Sovereignty

===================================================================================
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here and here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
——————————————————————————————————————————————

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

THE RECESSION CLOCK
Monetary Sovereignty

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.

#MONETARYSOVEREIGNTY