Why do they want to make you angry at the wrong thing? Tuesday, Apr 16 2019 

I’ll tell you who “they” are and what the “wrong thing” is. But allow me to lead off with some excerpts from the anti-government site, Reason.com.

Fundamentally, Reason.com believes all governments are too large, no matter how large or small they may be.

Of course, making a government smaller does not make it more efficient, more benevolent, or wiser. 

Government is an easy target, because as you repeatedly have been told, government is terrible, except for one little thing: In a world without government, we would be starving, non-human, savage, undisciplined animals. 

Recently, Reason.com published an article titled, GOVERNMENT WASTE, Happy Tax Day! Here Are 6 Infuriating Ways the Government Spends Your Money
Surprised? Yeah, neither are we. By, JOE SETYON | 4.15.2019

The article refers to the federal government (important point). Excerpts:

Happy April 15, everyone! The federal government collects about $3.5 trillion in tax revenue each year, according to the White House Office of Budget and Management. Here, in no particular order, are six of the more infuriating ways that money has gone to waste.

1. $300,000 on 391 coffee mugs
2. $400,000 to promote asset forfeiture…in Paraguay.
3. $13.6 million to hire two border agents
4. More than $325,000 for Mike Pence’s national anthem stunt
5. $333,000 to study bars on the U.S.-Mexico border
6. Nearly $3 million to study dance clubs

If you’re curious, you can click the above link to read the details about each expenditure, but the point is that the federal government spent millions, billions and even trillions on lots of stuff that seems really dumb, and the writer wants you to be angry that these “useless” expenditures are taking dollars from your taxpayer pockets.

And it’s all a lie.

Those payments for coffee mugs, Paraguay, border agents, Pence, bars, and dance clubs didn’t cost you one cent. In fact, those payments put dollars into your pockets.

All federal “wasted” spending puts dollars into your pockets.

Now, if the article had been talking about state government or local government waste, it would have been correct. State and local taxpayers do pay for state and local government spending.

That is because state and local governments are monetarily non-sovereign. (So are you and I).Image result for government money

Those state/local governments do not have the unlimited ability to create their own sovereign currency; they have no sovereign currency; they use the U.S. dollar.

They can, and often do, run short of dollars, and they need tax dollars in order to survive.

By contrast, the federal government is Monetarily Sovereign. It has the unlimited ability to create its own sovereign currency, the U.S. dollar.

The federal government never unintentionally can run short of dollars. Even if all tax collections — income taxes, FICA taxes, luxury taxes, etc. — totaled $0, the federal government could continue spending, forever.

Every time the federal government pays a creditor, it creates new dollars, ad hoc.,

So what about all that “wasted” federal spending? Those are dollars that the federal government created from thin air, and added to the economy.

The “dance club” millions, the coffee mug thousand, the millions for two border agents — all those dollars were created from thin air and were added to the U.S. economy (except for a few that may have gone to overseas suppliers).

The vast majority of those dollars went to U.S. businesses, who used those dollars to pay for employees, who in turn used the dollars to purchase things like food, housing, clothing, cars, education, etc.

In short, the federal government’s “wasted” dollars actually are stimulus dollars, that grow the economy, and eventually wind up in your pockets, my pockets, your kids’ pockets, and even Donald Trump’s pockets.

Again, this is not true of state and local government waste. They do not create dollars from thin air. They use existing tax dollars for their spending. So when they waste money, the dollars come from their taxpayers’ pockets.

Image result for bernanke and greenspan

It’s our little secret. Don’t tell the people we don’t use their tax dollars.

Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”

Alan Greenspan: “Central banks can issue currency, a non-interest-bearing claim on the government, effectively without limit. A government cannot become insolvent with respect to obligations in its own currency.”

St. Louis Federal Reserve: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e.,unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational.

So, if the government neither needs nor uses tax dollars, why does it collect taxes? I’m glad you asked. There are three reasons: One mostly good, one bad, and one horrible.

The mostly good reason is: To control the economy by levying taxes on things they wish to reduce, and by giving tax breaks to things they wish to encourage. So-called “sin” taxes are examples of the former, and home real estate tax deductions are examples of the latter.

The bad reason is to reward rich political donors by giving them special tax breaks not available to the middle and lower classes.

The horrible reason is to groom you, the public, to believe that federal spending for social benefits (Social Security, Medicare, Medicaid, food stamps, other poverty aids, college tuition aids, etc.) must be limited or taxes must be increased.

Since the people do not want increased taxes, they easily are convinced that social benefits must be reduced. 

Thus, we have the fake claim that the Social Security Trust Fund is running short of dollars. (Like the federal government itself, no federal agency can run short of U.S. dollars, unless Congress and the President want it to run short). The “Trust Fund” is an accounting fiction, designed to give an imprimatur to a false assertion.

And we have the fake claim that “Medicare for All is unaffordable. And we have all the other fake claims about federal spending being unaffordable, and federal deficits costing taxpayers money. All untrue.

The bottom line is, the rich are rich because they have more money and property than you do. The key word is, “more” because “rich” is a comparative word.

That is, if you have a million dollars, and everyone else has a million dollars, you are not rich. You are just the same as everyone else. But, if you have one hundred dollars and everyone else has just one dollar, you are very rich, indeed.

In short, to be richer, you either must obtain more money for yourself, or you must arrange for the other people to have less money.

Either way widens the Gap between you and those below you, and it is the Gap that makes you rich.

That is why the rich bribe:

  • The politicians via campaign contributions and promises of lucrative employment later
  • The media via advertising dollars and ownership
  • The economics professors via university contributions and jobs with think tanks

The primary purpose of these bribes is to induce legislation to widen the Gap and to make you accept the necessity of widening.

In Summary:

The rich control American politics. Their fundamental goal in life is personal enrichment, which requires widening the Gap between the rich and the rest.

This involves not only bribing the politicians to make Gap-widening legal changes, but also bribing the media and economists to convince you, the public, that Gap-widening is necessary and beneficial.

These information sources promulgate the “Big Lie” that federal finances are similar to your finances, and federal taxes are necessary to fund federal spending.

The rich fear that if you knew federal taxes are not necessary to fund spending, you would demand more benefits, thereby narrowing the Gap, and effectively making the rich less rich.

The rich want you to be angry at “unnecessary” federal spending, so you readily will agree to cut your social benefits.

Finally, the rich want you to believe that federal deficit and debt lead to hyperinflations, similar to those in Zimbabwe and Weimar Germany, though inflations actually are caused by shortages, usually shortages of food and/or energy, not by money creation.

(Despite a 50,000% increase in federal money creation over the past 80 years, average inflation has been moderate, within the Fed’s target range.

While federal debt (blue line) has risen dramatically, inflation (red line) has risen moderately and within the Fed’s target rate

Unfortunately, the constant drip, drip, drip of anti-deficit, anti-debt propaganda continues to brainwash the public, and the Gap widens.

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

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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

Mr. President, is it immigrants or is it drugs? Make up your mind. Saturday, Apr 6 2019 

Mr. President, is it immigrants or is it drugs? Make up your mind.

“We’re going to give them a one-year warning, and if the drugs don’t stop or largely stop, we’re going to put tariffs on Mexico and products, particularly cars.

And if that doesn’t stop the drugs, we close the border.”
Donald J. Trump

O.K., he’s talking about drugs. But the vast majority of illegal drugs come through legal ports that are protected by American guards — via planes, boats and through legal entryways.

The vast majority of illegal drugs comes through legal ports, not via unwalled areas.

Stopping immigrants will do virtually nothing to “stop the drugs.”

“The lawless state of our Southern border is a threat to the safety, security and financial well-being of all Americans.

“We have a moral duty to create an immigration system that protects the lives and jobs of our citizens.

“This includes our obligation to the millions of immigrants living here today, who followed the rules and respected our laws.

“Legal immigrants enrich our nation and strengthen our society in countless ways. I want people to come into our country in the largest numbers ever, but they have to come in legally.

“I want people to come into our country in the largest numbers ever, but they have to come in legally . . . . Our country is full.”
Donald J. Trump

O.K., now he’s talking about people and the law. But, statistics show that undocumented immigrants are far less likely to commit crimes against the “safety, security and financial well-being of all Americans” than are American citizens. Stopping immigrants will do virtually nothing to make America safer.

And does Trump want immigrants, or is our country “full”? As always with Trump, there is no rational answer.

Immigrants also contribute greatly to the American economy in labor value — just as immigrants have done for the past two centuries. That is why Trump historically has hired immigrants to work for him.

In short, Trump:

  • Wrongly conflates undocumented immigration with the drug problem
  • Wrongly blames an incomplete wall for America’s drug problem
  • Wrongly implies that completing his wall will solve America’s drug problem
  • Wrongly blames Mexico for America’s drug problem
  • Wrongly claims that Mexico can solve America’s drug problem
  • Wrongly claims that the undocumented immigrants are mostly Mexicans
  • Wrongly claims America has no more room for immigrants
  • Wrongly claims that punishing Mexico will solve the two real problems:

1. The drug problem is not caused by the easy availability of drugs, which in any event, more miles of wall will not solve.

The drug problem is not a foreign problem; punishing foreigners will not solve it. We must accept the fact that the drug problem is America’s problem. 

Blaming the Mexicans is an excuse invented by a dishonest leader and adopted by weak-minded followers.

The drug problem actually is a symptom of many, more fundamental problems in America: Poverty, bigotry, unpunished corporate greed,  the lack of help for addicts, crooked politicians, judges, and police, and the wide and growing Gap between the richer and the rest.

How is President Trump addressing the fundamental problems? He goes in exactly the wrong direction.

Poverty: Trump cuts, or tries to cut, social programs that benefit the poor and middle-income people: Social Security, Medicare, Medicaid, food stamps, school aids.

Bigotry: Trump does not conceal his loathing for Blacks, browns, Muslims, gays, foreigners from “shit-hole” counties. He defends the KKK and white supremacists as “good people.” He wants nice, white immigrants to come from Norway.

Unpunished corporate greed: Trump takes pride in removing consumer financial protection and environmental protection laws. Banks that steal from poor Americans are protected. Industries that pollute our air, water, and ground are protected. Global warming is denied.

The lack of help for addicts: The drug problem is not solely a supply problem. It is based on supply and mostly on demand.

America’s addicted victims are the buyers of drugs. American buyers create the demand. If there were no demand, the illegal drug trade would dry up.

Many, perhaps most, drug users would like to stop, but they need help. Trump’s approach is strictly about punishment. Yet that has been proven not to work.

Just as Prohibition didn’t work many years ago, the current “war on drugs” doesn’t work. Trump didn’t invent the war on drugs, but he is an enthusiastic supporter of the police-and-punish approach.

Addiction recovery requires money and time. But, the GOP’s anti-healthcare for the poor efforts, assure a steady, even growing, demand for illegal drugs by helpless addicts.

Crooked politicians, judges, and police: Trump sets the tone. He himself is an admitted crook, having had to pay an astounding $25 million dollars as a penalty for his crooked Trump University. His Foundation was fined and closed for crooked dealings.

He is so crooked, American banks refuse to lend to him, forcing him to beg for money from Russians and Saudi Arabians (which gives them leverage over him).

And he has surrounded himself with an astounding number of bad actors: Michael Cohen, Michael Flynn, Richard Gates,  Konstantin Kilimnik, Paul Manafort, George Papadopoulos, Sam Patten, Rob Porter, Richard Pinedo, Rob Porter, Tom Price, Scott Pruitt, Wilbur Ross, Bill Shine, Stephen Moore, and Roger Stone are examples of the type of people with whom Trump associates.

Trump hires people, not for their skills or honesty, but rather, for their love for and loyalty to him, which also may explain his admiration for dictators Vladimir Putin, Kim Jong-un, and Rodrigo Duterte.

There is no effort toward morality or honesty within the Trump world, where lying is considered normal. When a leader is dishonest, his criminality is contagious.

The wide and growing Gap between the rich and the rest. Poverty breeds crime and hopelessness, which in turn, are a large part of the drug-use problem. People with no hope for future happiness often turn to drugs.

Trump and the GOP foster widening the Gap by favoring the rich with unfair tax laws, and punishing the poor with the elimination of protections and social benefits.

In Summary:
Trump appeals to his base by creating a culture of hatred and fear. As with nearly all dictators, the hatred and fear are directed at “others.”

Sometimes the “others” are people following a different religion. Sometimes the others come from a different country. Sometimes they have different customs.

Trump directs his followers to hate all three: Muslims, Mexicans, and gays. Muslims are “terrorists.” Gays are “immoral.” And Mexicans “bring crime and drugs.”

All such claims are lies, but Trump’s lies appeal to people who are psychologically susceptible to hatred and fear.  To them, no matter what the leader’s faults and lies, his promulgation of hatred and fear keeps followers loyal to the Fuehrer (the leader).

America is not “full,” and Mexicans are not responsible for America’s drug crisis. These are pretexts to keep Trump’s followers in line.

The war on drugs can be won, not by a war on supply, which never will succeed, but rather by efforts to reduce the poverty, sickness, and hopelessness that create the demand for drugs.

America, being Monetarily Sovereign, has the unlimited money to create resources that would reduce the demand. We need only the will.

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

 

Trump appointee, Fed Chair Jerome Powell, recommends austerity Wednesday, Mar 27 2019 

It figures.

President Donald J. Trump hired an anti-environment guy to run the Environmental Protection Agency, and an anti-consumer guy to run the Consumer Financial Protection Bureau (followed in that role by an unqualified Peace Corps volunteer), so it figures that he would hire a Fed Chairman who is ignorant about economics.

Here is what Trump’s Fed Chair Jerome Powell told Congress, recently:

The idea that deficits don’t matter for countries that can borrow in their own currency I think is just wrong … U.S. debt is fairly high to the level of GDP — and much more importantly — it’s growing faster than GDP, really significantly faster.

We are going to have to spend less or raise more revenue.

Powell called out “unsustainable” federal debt in his opening remarks. But in response to questions from senators, he emphasized that “decisions about spending and controlling spending and paying for it” are up to Congress, not the Fed.

He didn’t use the word, “austerity,”  but his use of “unsustainable” federal debt, and his comments about, “decisions about spending and controlling spending and paying for it” are right in line with the worst of the austerity sellers.

He apparently is right on board with the Republican “cut-social benefits and raise taxes on the middle-classes” philosophy.

Compare him with previous Chairmen, who though not always stating truth, at least acknowledged it:Image result for greenspan and bernanke

Alan Greenspan: “A government cannot become insolvent with respect to obligations in its own currency.”

Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”

And as has become the rule with debt nuts, Powell never gives any specific reasons why the deficits are “unsustainable,” or why “controlling and paying for deficits” are necessary. Do you think he learned that at Trump University?

And to top it off, get this:

“Defaulting on these debts—as the hetereodox  macroeconomic theory Modern Monetary Theory (MMT) proposes simply unthinkable,” Powell said.

Oh really? Exactly when did MMT propose defaulting on debts? Not only is that a Trumpian-style lie, but it demonstrates that Powell has no idea what MMT is all about. The man’s ignorance is as shocking as Trump’s.

MMT (like Monetary Sovereignty) specifically says the federal government never will need to default, because it has the unlimited ability to create dollars.

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And then we come to yet another debt fear-monger, Randy Schultz, a writer for Boca Magazine:

Remember when Republicans cared about budget deficits?

Last week, the government announced that February’s red ink set a monthly record — $234 billion.

In a growing economy, setting an annual deficit record is like having your house go into foreclosure when the family income is $500,000. Something is wrong.

Huh? How is a federal deficit anything “like having your house go into foreclosure”? It’s a completely senseless analogy?

As recently as 2015, the deficit was $438 billion. Yet Republican policies have the deficit on track to be $1.1 trillion for this year. In a growing economy.

For perspective, the deficit was $1.4 trillion in 2009.

Remember, though, that to hold off a second Depression Congress had to pass the $700 billion financial bailout and the $787 billion fiscal stimulus during that budget cycle.

And revenue tanked with the economy. Republicans can’t use calamity as a defense.

Talk about not seeing what is right in front of his nose, Schultz acknowledges that deficit spending — “the $700 billion financial bailout and the $787 billion fiscal stimulus “– held off a second Depression.

Though he admits that deficit spending saved and grew the economy, he decries deficit spending. Amazing.

In fiscal terms, the GOP sinned most notably by passing the 2017 tax cut on a party-line vote in the Senate and a mostly party-line vote in the House. Thirteen GOP House members honorably defected.

Republicans crafted that legislation to please megadonors and corporations.

The plan offered no structural changes to help the economy over time and thus needlessly increased the deficit.

The sin was not the tax cut itself. That is helping to grow the economy. The sin was to cut taxes on the rich, with widened the Gap between the rich and the rest.

President Trump proclaimed that the tax cut would help the middle class. Of course, he also proclaimed that he would lower the trade deficit, which is at a 10-year high.

The president said companies would use tax savings to boost pay and hire more employees. In fact, many large corporations used the money on stock buybacks, which set a record last year after the tax plan became law.

What a surprise. Trump either lied or spoke out of ignorance. Who could have predicted that?

Amid the current fiscal misfeasance, recall that the country ran budget surpluses from 1998 until 2001.

Will someone please mention to Schultz that those budget surpluses led to the recession of 2001?

How austerity kills: Everything below the horizontal black line is a  federal surplus (money flowing out of the economy, i.e austerity). The recession was cured by eliminating the federal surplus (i.e. adding money to the economy). 

Why would a federal budget surplus lead to a recession? Because a federal surplus occurs when the federal government takes more money out of the private sector than it puts in.

One would hope that a Chairman of the Fed would understand that starving the private sector of money leads to recessions. Sadly, one would be disappointed.

In April 2000, Clinton addressed the American Society of Newspaper Editors and mused about the country paying off its debt, which was about $5 trillion. It’s now $22 trillion.

Had the federal government cut spending and increased taxes to take $5 trillion from the economy, we would have slipped into a monster Depression that would have made 1929 look like heaven.

Of course, Schultz doesn’t understand this, but paying off the federal debt need not require a reduction in deficit spending. The government could pay off the debt simply by returning the dollars that are in T-security accounts.

This would not have required deficit reduction, and it actually would have increased liquidity. But why worry about facts?

Deficit reversal began under President George W. Bush. Seeing those surpluses, he proposed a tax cut to “give the people their money back.”

Democrats were complicit in passing that plan, which did no more good than the 2017 tax cut.

No more good” than to increase GDP growth. Otherwise a failure??

For good measure, Republicans in 2003 passed the Medicare prescription drug benefit.

With no payroll taxes or premiums to finance it, Part D adds roughly $100 billion to the deficit.

Part D adds roughly $100 billion to the deficit,” which means the federal government added $100 billion to the nation’s economy. And this is a bad thing??

Last week, Federal Reserve Chairman Lawrence Powell said, “Deficits matter.” But he sounds like the housemother trying to break up the frat party.

No, he sounds like either a damn fool, who doesn’t understand economics, or like a liar who doesn’t want the public to learn the truth.

A few adults are around. Speaker Nancy Pelosi faced down an attempt by young, ultra-liberal Democrats to reject “PAYGO” – offsetting new spending with tax increases or cuts.

House Democrats have presented a sensible plan to shore up Social Security. Some Senate Republicans have offered ideas to reduce the deficit.

In the above two paragraphs, we are told that the “young, ultra-liberal Democrats” understand economics and want to help the economy grow, while the “House Democrats” would rather promulgate the Big Lie, that federal spending is funded by federal taxes.

Though Republicans once chided Democrats as “tax and spend liberals,” they abdicated on fiscal policy years ago.

Now the chaperones outdrink everyone.

More like the debt scare-mongers want everyone to drink the austerity Koolaid.

Pitiful.

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

 

Translating the absurd. Does having less money make the nation wealthier? Tuesday, Mar 26 2019 

The Mueller /Barr report did not cover: Trump’s secret taxes, excusing Nazis and white supremacists, the fake Trump Foundation, the fake Trump University, paying Stormy Daniels et al, groping women, obstruction of justice, loving dictators Putin and Kim, phony loans from Deutsche Bank, Donald Trump, Jr., Jared Kushner, inauguration committee, emoluments, security clearances, 10,000 lies, Trump’s refusal to testify under oath, nepotism, secret Saudi deals, campaign expenses, Trump Tower Moscow, secret meetings with Putin, and the GOP’s trying to keep the “exonerating” report a secret.

So, now that all those things are forgotten by the press, by the public and especially by the GOP, we can return to the federal budget.

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Image result for ben bernanke

Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”

The following is yet another misleading article, meant to make you think the Monetarily Sovereign federal budget is like your monetarily non-sovereign household budget.

(The idea is to get you to accept reductions in such federal benefits as Medicare, Medicaid, Social Security and other aids important to the non-rich.)

A translation of each section follows immediately after the section.

February’s Budget Deficit Was the Largest in American History
The feds are $234 billion in the red. Looking for hope? Sen. Mike Enzi has some ideas.
Eric Boehm, Mar. 25, 2019

The Treasury announced Friday that the federal government spent $234 billion more than it brought in during February, breaking the record for the largest monthly budget deficit.

Translation: In February, the federal government added more stimulus dollars to the U.S. economy than ever — $234 billion in economic stimulus.

Barack Obama’s Treasury Department set the previous record in February 2012 , with a deficit of $231 billion.

At that time, President Obama anticipated $1 trillion annual deficits for the rest of the decade 

Translation: Barack Obama’s government set the previous record in February 2012, by pumping $231 into the economy, which was necessary grow the economy after the Great Recession of 2008.

At that time, President Obama anticipated $1 trillion annual private sector surpluses for the rest of the decade —almost identical to the projections offered by Donald Trump in his 2019 budget proposal, delivered earlier this month..

That Obama budget was roundly criticized by Republicans in Congress, who railed against the president’s “failure to control spending.”

Obama’s record deficit helped organize Republican policymaking around plans to cap spending growth and balance the budget.

The Republican Congress slowed the growth in government spending and as a recovering economy boosted tax returns.

Image result for alan greenspan

Alan Greenspan: “A government cannot become insolvent with respect to obligations in its own currency.”

Translation: That Obama budget was roundly criticized by Republicans in Congress, who railed against the president’s “failure to impose austerity on the economy.” 

Obama’s record money creation helped organize Republican policymaking around plans to cap economic growth by balancing the budget. 

The Republican Congress slowed money growth, which starved the recovering private sector of dollars.

The current record-high deficit is largely the fault of the same Republicans who once attacked Obama for spending too much.

Translation: The current record-high private sector is largely the success of the same Republicans who once attacked Obama for giving the private sector too much.

According to an analysis from the nonpartisan Committee for a Responsible Federal Budget, about 60 percent of this year’s expected deficit is the result of policies—mostly last year’s huge increase in spending that shattered those Obama-era budget caps—put in place by current legislators and signed by the current president.

Translation: According to an analysis from the extremely partisan Committee for a Responsible Federal Budget, about 60 percent of this year’s expected economic growth is the result of policies—mostly last year’s huge increase in spending that shattered those Obama-era growth caps—put in place by current legislators and signed by the current president.

They can’t blame a recession. They can’t blame Obama. After years of solid if not mind-blowing growth, the budget deficit should be shrinking, not expanding.

Failing to fix the budget now will have consequences for years to come.

Over the next 30 years, Social Security and Medicare are expected to run a combined $100 trillion deficit.

Image result for federal reserve bank

St. Louis Federal Reserve: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e.,unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational.

Translation: They can’t credit the recession. They won’t credit Obama. After years of solid if not mind-blowing growth, the stimulus should be expanding, not shrinking.

Failing to increase the budget now will have consequences for years to come.

Over the next 30 years, Social Security and Medicare are expected to run a combined $100 trillion deficit, that the federal government can and should pay for.

If you’re looking for a glimmer of hope, it might be found in the budget plan recently released by Senate Budget Committee Chairman Mike Enzi (R–Wyo.).

Translation: If you’re looking for a flash of terror, it might be found in the budget plan recently released by Senate Budget Committee Chairman Mike Enzi (R–Wyo.).

Enzi’s budget is supposed to reduce the deficit by $538 billion over five years by cutting spending—and also, alas, by projecting probably unrealistic economic growth in the next half-decade.

Translation: Enzi’s budget is supposed to reduce the economic stimulus by $538 billion over five years by cutting spending—and also, alas, by projecting probably unrealistic economic growth (because of Enzi’s disastrous austerity) in the next half-decade.

His proposal includes cuts to Medicare and Medicaid, which make up more than 60 percent of the federal budget in a single year.

Enzi’s proposal is a serious attempt to bring the deficit back under control, even though it would not balance the budget.

Translation: His proposal includes cuts to Medicare and Medicaid, which make up more than 60 percent of the federal budget in a single year. The rich always look for ways to cut benefits to the middle classes and the poor.

Enzi’s proposal is a serious attempt to widen the Gap between the rich and the rest, even though it might not completely destroy the middle- and poorer classes. 

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In Economics, everything devolves to Monetary Sovereignty and Gap Psychology.

  1. Economics studies the relationships among wealth, money, and human psychology.
  2. Monetary Sovereignty studies a money issuer’s power over the money it issues.
  3. Gap Psychology describes the human desire to widen the Gap below you on any economic or social measure, and to narrow the Gap above you.

The very rich control American politics. They never stop trying to widen the Gap between them and you.

Essential to that effort is convincing you of the lies that federal “debt” (deposits into T-security accounts) and “deficits” (private sector surpluses) are a threat to the U.S. economy and to future taxpayers.

The rich want you to accept the false notion that your federal benefits should be cut.

So long as their misstatements work, they will continue to promulgate those lies, and indeed, your benefits will be cut.

Only when you first understand the facts, and then protest the lies, will you be safe from the rich.

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

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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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