The rich-poor Gap widens in ways you may not realize Monday, Feb 24 2020 

If you are not rich, but you still support Donald Trump and the GOP, congratulations. You now are ready to send your remaining money to a Nigerian prince, who clearly will do more for you than Trump will.

You undoubtedly know Trump and his subservient GOP have tried everything they can to end ACA (Obamacare), primarily because Trump doesn’t want Obama’s name on anything. And you undoubtedly know that though Trump claims to have a better plan in mind, he really has nothing, after all these years.

And by now, you have learned that Trump’s much-bragged-about tax cuts benefited the rich and did nothing for the rest of us. You learned that when you discovered your charitable contributions are too small to be deducted from your taxes.

And you surely have heard of the phony need to cut Social Security benefits and/or raise FICA taxes to “pay for it,” because Social Security, Medicare, and the U.S. government supposedly are “broke.”

And of course, there are the growing salary differences between the top executives and the underlings — you know about those too,

And then there’s the gigantic and growing student debt that funnels money from the middle and lower-income groups to the government and the rich lenders.

Wolf Richter: Subprime Credit Card Delinquencies Spike to Record High, Past Financial-Crisis Peak, as Other Consumers Relish the Good Times. Why?
By Wolf Richter, editor of Wolf Street. 

The rate of credit card balances that are 30 days or more delinquent at the 4,500 or so commercial banks that are smaller than the top 100 banks spiked to 7.05% in the fourth quarter, the highest delinquency rate in the data going back to the 1980s (red line).

But at the largest 100 banks, the credit card delinquency rate was 2.48%, which kept the overall credit-card delinquency rate at all commercial banks at 2.7% (blue line), though it was the highest since 2012, according to the Federal Reserve.

What’s going on here, with this bifurcation of the delinquency rates and what does that tell us about consumers?

The above-mentioned “bifurcation” (aka the Gap between the rich and the rest) has to do with the fact that the largest banks serve the rich, and the smaller banks serve the not-rich. It really is that simple.

A similarly disturbing trend is going on with auto loans. Seriously delinquent auto loans jumped to 4.94% of total auto loans and leases outstanding.

This is higher than the delinquency rate in Q3 2010 amid the worst unemployment crisis since the Great Depression.

On closer inspection, there was that bifurcation again; prime-rated loans had historically low delinquency rates; but a shocking 23% of all subprime loans were 90+ days delinquent.

During the Financial Crisis, delinquencies on credit cards and auto loans were soaring because over 10 million people had lost their jobs and they couldn’t make their payments.

But these are the good times – with the unemployment rate near historic lows. And yet, there are these skyrocketing delinquency rates in the subprime subset of credit cards and auto loans.

It means these people are working, and they’re falling behind their debts.

Contrary to the right-wing’s repeated assertions that the poor are simply lazy and unwilling to work, the poorer on average work harder and longer hours than do the richer, but are paid skimpy wages.

Consumers with subprime credit scores (below 620) can still get credit cards, but under subprime terms – namely interest rates of 25% or 30% or more.

These rates comes at a time when, according to the FDIC, banks’ average cost of funding was around 1.0%.

The difference between a bank’s average cost of funding and the interest it charges is its net interest margin. For banks, subprime credit-card balances, with interest rates of 30%, are the most profitable assets out there.

Borrowing $5,000 at 30% means you pay $1,500 annual interest, a double-whammy for someone who barely can afford food and rent, let alone frivolous things like warm clothing, decent transportation, good schools, and a safe neighborhood in which to live.

The largest 100 banks have a delinquency rate of just 2.48%, which is low by historical standards.

They go aggressively after consumers with high credit scores and high incomes, and to get them, the big banks offer big benefits, and so a bidding war has broken out for these high-credit-score consumers, with “2% cash back on every purchase” and other benefits that small banks cannot offer.

The rich receive the best money-back cards. The not-rich don’t even learn about them.

The rich don’t have to borrow on credit cards, which charge those enormous percentages.

When the rich borrow, they go to a lender who might charge 3-5% or even less, where that same $5,000 loan would cost under $250 a year.

So why are these delinquencies spiking now? We haven’t seen millions of people getting laid off. These are the good times.

It’s a sign of the sharp bifurcation of the economy for consumers. One group of consumers is doing well.

They have rising incomes, and they can afford the surging home prices, the surging healthcare costs, and the surging new-vehicle prices.

Those price increases are not reflected in the inflation measures. For example, the price of a Ford F-150 XLT has skyrocketed 163% since 1990 while the official CPI for all new vehicles, allowing for hedonic quality adjustments over the same period has increased only 22%.

Hedonic quality adjustment: The practice of examining an item by its characteristics, estimating the value of the utility derived from each characteristic, and using those value estimates to adjust prices when the quality of a good changes.

Consider two TVs, one new and one made in 2015. The features of the new one, that were not available in 2015 are evaluated, and their value is added to the 2015 price.

For instance, if a new set has verbal command and the old one didn’t, the government estimates the value of the verbal command and adds that to the price of the old set.

Say the old set cost $1,000 and the new set, with verbal command costs $2,000. That would seem to be a 100% price increase.

But if the government estimates the value of verbal command to be $500, the official price of the old set would be increased to $1,500, which means the CPI has increased only 33% ($1,500 vs. $2,000) rather than 100%.

Same with used cars. The official CPI for used cars has declined by 11% since 1995, an amazing feat of hedonic quality adjustments, as actual used-car prices have soared since 1995.

There are other consumers whose incomes have not budged much – maybe it went up in line with CPI, but CPI doesn’t reflect actual price increases of cars and homes and other items.

Everything big they’re trying to buy or rent or use has soared in price – new and used vehicles, housing, healthcare, education, etc.

And those consumers, though they’re working hard, are getting squeezed.

That’s the bifurcation.

The rich receive tax breaks from the right-wing, while the not-rich receive criticism and cuts to safety nets like Medicare, Social Security, food stamps, housing aids, education, etc.

And this can happen from one day to the next, for example when the landlord raises the rent by 15%, or when the car turns into a hopeless heap and has to be replaced, or when the insurance premium jumps 25%, or when the kid ends up in the emergency room. Or a combination.

And suddenly, there is no money left to make the minimum payment on the credit card.

And this is happening while people are working.

This subgroup of consumers that are getting squeezed is growing, and their problems are growing, and their credit-card delinquencies and auto-loan delinquencies are spiking into the stratosphere like never before.

And that’s the bifurcation that we’re seeing.

But when Bernie Sanders wants to provide Medicare-for-All, the rich say, “No, it’s Socialism,” and the not-rich are suckered into going along with the “socialism” lie.Image result for dollar bills denominations

The “bifurcation” repeatedly mentioned by Mr. Richter is the Gap we often have discussed. The Gap or bifurcation exists because the rich, who run America, want it to exist.

“Rich” is a comparative word. If you have $100 and everyone else has $1, you are rich. But if you have $100 and everyone else has $1,000 you are poor.

So to be rich, you must widen the Gap, which can be accomplished in two ways: Accumulate more for yourself or prevent the others from accumulating more.

This post has given examples of the latter: Prevent others from accumulating more. The credit card scam is one of those.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell

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THE SOLE PURPOSE OF GOVERNMENT IS TO IMPROVE AND PROTECT THE LIVES OF THE PEOPLE.

The most important problems in economics involve:

  1. Monetary Sovereignty describes money creation and destruction.
  2. Gap Psychology describes the common desire to distance oneself from those “below” in any socio-economic ranking, and to come nearer those “above.” The socio-economic distance is referred to as “The Gap.”

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 Monetary Sovereignty and The Ten Steps To Prosperity can grow the economy and narrow the Gaps:

Ten Steps To Prosperity:

1. Eliminate FICA

2. Federally funded Medicare — parts A, B & D, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

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

MONETARY SOVEREIGNTY

Why Congress does nothing to solve the student loan problem Monday, Oct 28 2019 

Student loan debt is a huge problem, not only for the students themselves, but for all; of America.

Congress has several alternatives available to it, that would remove this huge albatross from the necks of America’s best and brightest, and even from the rest of us.

  1. Congress simply could pay off all existing and future loans. Unlike students, the U.S. government never can run short of U.S. dollars.
  2. Congress could provide Free education for everyone (Step #4 of the Ten Steps to Prosperity), and
  3. Congress could provide a Salary for attending school (Step #5.)

But Congress has not lifted a finger to solve this national problem. In fact, Congress caused the problem.

The reasons can be found in the following excerpts from an article that ran in the “naked capitalism” web site:

Wall Street Has Been Gambling With Student Loan Debt For Decades
Posted on October 27, 2019 by Lambert Strether

Student loan debt burdens 44 million people in the United States.

However for CEOs of student loan companies, or investors on Wall Street, student debt is a lucrative commodity to be bought and sold for profit.

There, in two words, “lucrative commodity,” you see the fundamental reason why Congress, and especially this right-wing administration, like things just as they are, thank you.

Congress and the President are run by money.

Corporations such as Navient, Nelnet, and PHEAA service outstanding student debt on behalf of the Department of Education.

These companies also issue Student Loan Asset-Backed Securities (SLABS) in collaboration with major financial institutions like Wells Fargo, JP Morgan, and Goldman Sachs.

For these firms and their creditors, debt isn’t just an asset, it’s their bottom line.

You might wonder why the U.S. federal government, which handles trillions of dollars worth of Treasury certificates (T-bills, T-notes, T-bonds) needs to farm out the servicing of student loan debt and SLABS.

And, you might wonder why the government helps to create the indebtedness of America’s potential leaders.

MONEY is the answer.

Congress loves privatization, not because it is “more economical” than the federal bureaucracy (It isn’t), and not because the private sector can do the job better and more safely (It can’t, as the recession of 2008 demonstrated.)

Congress loves privatization because big donors love it. If somehow big donors wanted the federal government to do 1, 2, and 3 (above), that would be the way Congress and the President would vote.

Investors holding SLABS are entitled to coupon payments at regular intervals until the security reaches final maturity, or they can trade the assets in speculative secondary markets.

There is even a forum where SLABS investors can anonymously discuss their assets and transactions, free from unwanted public scrutiny.

Yet the financialization of student debt is almost never reported on in the media.

There is little public awareness that when student borrowers sign their Master Promissory Notes (affirming that they will repay their loans and “reasonable collection costs”), their debts may be securitized and sold to investors.

The rich speculators do not want you to know how valuable student debt is to them. You might want to eliminate student debt, heaven forbid.

SLABS resulted from specific federal policy decisions. On November 27, 1992, the Securities and Exchange Commission adopted Rule 3(a)(7) of the Investment Company Act of 1940, which allows companies who issue asset backed securities to be exempt from the legal definition of an “investment company.”

This exemption permits companies to avoid asset registration fees and regulatory oversight – making it profitable for student loan companies to issue securities, which effectively created the market for SLABS.

“Regulation” is a dirty word in the eyes of the rich. They opt for “free enterprise,” meaning “We can get away with anything when everything is legal.

Over the past few decades, student loan companies and Wall Street have amassed record profits.

Meanwhile, $1.6 trillion of student debt is crushing generations of Americans by delaying home ownership, causing generational wealth to decrease, and contributing to widespread depression and even suicide.

Since the ironically-named Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, student debt is virtually impossible to discharge in bankruptcy.

Donald Trump repeatedly was able to discharge his and his companies’ debts via bankruptcy. He has boasted about how smart he was to take advantage of bankruptcy laws.

The rich lenders have made sure that students are not afforded this privilege.

Navient is the largest student loan servicing company and the largest issuer of SLABS. In filings with the SEC, Navient acknowledges the following risk factors: “An economic downturn may cause the market for auction rate notes to cease to exist… Holders of auction rate securities may be unable to sell their securities and may experience a potentially significant loss of market value.”

Due to the “securitization food chain”, if Navient or other SLABS issuers and holders experience a significant loss of revenue, they could default on their obligations – triggering negative consequences for Wall Street firms that market these securities to investors and supply credit to the greater public.

Those of you who remember the painful Great Recession of 2008, will note that massive debt default was the cause. For the rich, this lesson has not been inhibiting.

Greed and power tend to preclude caution.

As economist Michael Hudson has argued, “debts that can’t be paid, won’t be paid”, and the insistence of creditors to collect on those debts can trigger social unrest.

As the rational discontent of younger generations continues to grow, catalyzed by a lower quality of life than older generations, the accelerating climate crisis, and insurmountable student debt – activists may choose to utilize “the power of economic withdrawal.”

Young people could exploit the vulnerabilities of the SLABS market via debt strikes or boycotts, as advocated during the Occupy Wall Street movement in 2011.

Writes David Graeber in his comprehensive 2011 book Debt: The First 5000 Years. “For the last five thousand years, with remarkable regularity, popular insurrections have begun the same way: with the ritual destruction of the debt records-tablets.”

Activists concerned about student debt should ask themselves: what would such a symbolic protest look like in the United States today, and could it become popular enough to pose a significant threat to the status quo?

Historically, most social progress has been initiated by the young and the progressive, and resisted by the older and conservative.

The battles between the two often have been bloody and destructive, leaving the nation in tatters for decades or even generations. We still have not completely recovered from the atrocities of the Civil War, the Great Depression, and Vietnam.

For very good reasons, city, county, and state governments pay for grades K through 12. And these governments are not Monetarily Sovereign, so supporting education is a huge financial strain on them. Yet they do it.

For the same very good reasons, the federal government should fund grades 12+ — and it is Monetarily Sovereign, so such support would be no financial strain at all.

Student debt is an abomination that should not have begun, should not continue, and easily could be solved, if our government leaders had the morals and spine for it. 

Perhaps, by rising up, marching, engaging in civil disobedience, and especially voting, young people may help our Congresspeople develop some decency, integrity, and vertebrae.

Congress should initiate Steps #4 and #5, now.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

The most important problems in economics involve:

  1. Monetary Sovereignty describes money creation and destruction.
  2. Gap Psychology describes the common desire to distance oneself from those “below” in any socio-economic ranking, and to come nearer those “above.” The socio-economic distance is referred to as “The Gap.”

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 Monetary Sovereignty and The Ten Steps To Prosperity can grow the economy and narrow the Gaps:

Ten Steps To Prosperity:

1. Eliminate FICA

2. Federally funded Medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

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

MONETARY SOVEREIGNTY 

Sanders and Warren: Still great ideas; still afraid speak the truth. Saturday, Sep 14 2019 

Image result for cowardly lion“Ignorance is the parent of fear.” Herman Melville
“Instead of worrying about what people say of you, why not spend time trying to accomplish something they will admire.” Dale Carnegie
“The only thing we have to fear is fear itself.” Franklin D. Roosevelt
“Avoiding danger is no safer in the long run than outright exposure. The fearful are caught as often as the bold.” Helen Keller
“Fear is the lengthened shadow of ignorance.” Arnold Glasow
“Fear defeats more people than any other one thing in the world.” Ralph Waldo Emerson
“The cave you fear to enter holds the treasure you seek.” Joseph Campbell
“Everything you want is on the other side of fear.” Jack Canfield
“Don’t fear failure so much that you refuse to try new things. The saddest summary of a life contains three descriptions: could have, might have, and should have.” Louis E. Boone

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The U.S. government is Monetarily Sovereign. It never can run short of its own sovereign currency, the U.S. dollar.

Even if all federal tax collections totaled $0, the federal government could spend unlimited amounts, forever, and without causing inflation.

Elizabeth Warren and Bernie Sanders and the rest of the Democrats know this. They have had expert advice.

Yet they are afraid to say it. They cower at the notion that voters will not believe them. They fear even to hint at the truth.

So despite offering great ideas, they won’t tell you exactly how these ideas will be paid for. And that, more than any other thing, will destroy what they propose.

Majority in US Back Free College Tuition and Student Debt Cancellation, New Poll Finds
Posted on September 14, 2019 by Yves Smith,  [By Judy Conley, staff writer at Common Dreams. Originally published at Common Dreams]

A majority of voters support the bold proposals for free college tuition and the wiping out of student debt put forward by Sens. Bernie Sanders and Elizabeth Warren, according to a new Hill-HarrisX poll out Friday.

The survey found that out of more than 1,000 respondents, 58 percent of people said they support government-funded public college tuition and the cancellation of student debt for the more than 44 million Americans who currently hold it.

“We will make public colleges and universities and HBCUs debt-free. And what we will always also do, because this is an incredible burden on millions and millions of young people who did nothing wrong except try to get the education they need, we are going to cancel all student debt in this country.” —Sen. Bernie Sanders (I-Vt.)

The student debt crisis has left young Americans as a group owing more than 1.5 trillion for their college and graduate educations, and is largely blamed for keeping millennials from being able to buy homes and start families.

“What we will also do is not only have universal pre-K, we will make public colleges and universities and HBCUs debt-free,” the Vermont independent senator said. “And what we will always also do, because this is an incredible burden on millions and millions of young people who did nothing wrong except try to get the education they need, we are going to cancel all student debt in this country.”

According to the Hill-HarrisX poll, 72 percent of Democrats and 58 percent of independent voters support free college tuition and student debt cancellation, while 40 percent of Republicans back the plans.

Free college. Eliminate student debt. They are excellent ideas.  But . . .Related image

While both Sanders and Warren have proposed offering free public college to all Americans, Warren’s debt cancellation program would only be offered to families who earn under $250,000 per year—the bottom 95 percent of earners. Sanders has proposed wiping out student debt for all those who carry it.

Sanders would fund his plan by imposing a speculation tax on stock trades, raising an estimated $2.4 trillion over 10 years, while Warren’s Ultra-Millionaires Tax would fund her proposal.

Question: Why $250K? Why not offer it to everyone?

Answer: It’s an unnecessary attempt to reduce the cost.

More importantly, why propose a “speculation tax” and why propose an “Ultra-Millionaires tax”? Elizabeth, Bernie, and the rest of the Democrats (and the Republicans, too) know full well that:

Federal taxes do not fund federal spending.

There is plenty of evidence that this is true. The U.S. government never has failed to pay its debts.  It creates all the dollars it needs, when it needs them.

A politician who offers brave ideas, should not fear to tell how these ideas will be paid for.

At the Democratic debate, Sen. Amy Klobuchar (D-Minn.) suggested progressive candidates are “extreme” and have made “promises [they] can’t keep,” while South Bend, Indiana Mayor Pete Buttigieg said in an earlier debate only that he supports “reducing” student debt and addressing college “affordability.”

Promises they can’t keep”? Oh, the trepidation. Why can’t those promises be kept? Only fear stands in the way.

On MSNBC Thursday, Sanders campaign co-chair Nina Turner said that while poll numbers have fluctuated slightly for the top candidates in recent weeks, surveys have consistently shown that Americans support free college tuition and student debt forgiveness.

The ideas are good. The voters are in favor. Why the fear by the politicians?

Turner told Katy Tur, Sanders “understands the cries, the fears, the needs, and the dreams of the American people in this country. Hello Green New Deal, hello college for all, canceling student debt, standing up for the working people of this country.”

Image result for warren and sanders

We don’t dare tell them the truth about paying for our ideas.

Yes, he understands the needs full well. He also understands how the proposed solutions easily could be funded.

Finally, he knows how to explain Monetary Sovereignty.

If only he and Warren and the rest of the Democrats had the courage.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

The most important problems in economics involve the excessive income/wealth/power Gaps between the richer and the poorer.

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

2. Federally funded Medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

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

MONETARY SOVEREIGNTY

The latest dumb, political idea Thursday, Jul 4 2019 

It’s that time of the election process, when politicians, desperate to be remembered by the voters, come up with silly ideas.

Today’s SI (silly idea) award goes to a guy whom I believe to be one of the more intelligent of the candidates, Pete Buttigieg.

This only goes to show that even smart people can be silly when under pressure.

Pete Buttigieg wants Americans to expect a year of ‘national service’ after college, 10:44 a.m., Politico,  Kathryn Krawczyk

Pete Buttigieg is serving up a brand new plan.

The South Bend, Indiana mayor and 2020 Democrat has proposed “A New Call to Service” that would push the number of people participating in national service to 1 million by 2026.

He’d like to expand the ranks of 7,300 Peace Corp volunteers and trainees and 75,000 AmeriCorps members to a total of 250,000, (then) grow that total to 1 million by 2026, with an estimated cost of $20 billion over the next decade.

Buttigieg hopes to fill all these programs by promising a credit toward workers’ student debts under the already existent Public Service Loan Forgiveness Program.

That looks similar to debt forgiveness service programs mentioned by fellow candidates Sen. Elizabeth Warren (D-Mass.), Sen. Kirsten Gillibrand (D-N.Y.), and former Rep. John Delaney.

I can almost visualize Pete and his handlers, crouched together in a locked room, sweating and mumbling:

“Bernie has Medicare, and Liz has corporate fraud. We need something. Something!
“How about student debt?
“It’s being done. We need something else. Something really unique and patriotic.
“Like military service?
“You mean college kids tramping around in the infantry?
“No. OK, wait. I’ve got it: Student debt combined with the Peace Corps.  That’s unique, liberal and patriotic, all rolled into one.”

What a wonderful idea.

To compete economically and scientifically, America needs educated people — not just high school graduates, but college grads and advanced degree people: Medical doctors, engineers, scientists — all those people that really advance our nation.

So here’s what we do. First, we already have discouraged kids from going to college, and punished them if they do go to college, by putting them deeply into debt.

Now, rather than simply relieving them of this debt, we have them to waste a couple of the most productive years in their lives by forcing them to take a low pay job they don’t want — a job that has nothing to do with their college education and expertise.

I can see it now. All those PhDs planting crops in Batswana, building huts in Burkina Faso, carrying water jugs in Eswatini.

Our indebted college grads and future leaders will flock to the idea, and it will greatly benefit American competitiveness, especially in Comoros and Lesotho (where I’m told the volunteers learn to speak Sesotho).

Of course, the alternative would be to encourage advanced education by making college free, for the same reason we already make grade school and high school free.

But then we wouldn’t be able to send our best and brightest young people to Benin (where “volunteers learn to speak local languages, including Bariba, Ditamari, Dendi, Fon, French, Mahi, and Nagot.”)

O.K., seriously, I admire the young people who volunteer to go to 3rd world countries and help. But the key word is “volunteer.”

The notion of basing the payoffs of those outrageous college loans, on a couple years of forced labor in Myanmar not only is repugnant but is counter to the best interests of America.

Pete, we should do everything possible to encourage advanced education, instead of discouraging it.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell
Search #monetarysovereigntyFacebook: Rodger Malcolm Mitchell

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

The most important problems in economics involve the excessive income/wealth/power Gaps between the richer and the poorer.

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

2. Federally funded Medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

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

MONETARY SOVEREIGNTY

 

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