Here is what economic ignorance causes

Here is what economic ignorance causes.

The Post-Coronavirus Unemployment Crisis Could Last for Years, Economists Say

Economists expect the U.S. to suffer its largest-ever contraction this quarter and the unemployment rate to soar to a post-Depression record, followed by a recovery that will be moderate and drawn out.

All economists? Some economists? A few economists?

The recovery may be “moderate and drawn out” only because the federal response has been moderate and drawn out.

The stock market alone lost $1.4 trillion in just one week. This doesn’t count all the other weeks this year, and it doesn’t count all the business and personal losses.

And Congress and the President think $2 trillion will prevent a depression?? Really?

Gross domestic product will plummet an annualized 25% from April through June after a smaller setback in the first quarter and the jobless rate will hit 12.6%, the highest since the 1940s, according to the median forecasts in Bloomberg’s monthly survey of 69 economists.

Gross Domestic Product (GDP) = Federal Spending +Non-federal Spending +Net Exports.

Therefore, the more the federal government spends, the faster will GDP grow.

Add a trillion dollars in federal spending and GDP will rise by a trillion dollars. Straight algebra.

Federal spending also stimulates non-federal (private sector) spending, which further increases GDP.

Sadly, our federal government does not acknowledge it is a Monetary Sovereign. It has the unlimited ability to create U.S. dollars at no cost.

Greenspan quote.png

Instead, it follows the right-wing, Tea Party / Libertarian formula of spending the least it can, under the circumstances, because of irrational fears about deficits and “big” government.

Then to exacerbate the problem, the politicians continue with petty, political arguments about precisely where each dollar is to go.

The downturn looks likely to be deemed as the first recession since 2007-2009 by U.S. business-cycle arbiter National Bureau of Economic Research. The second half of the year will see a resumption of growth, according to the survey, though economists say the deck is stacked against a snap-back.

The Fed is expected to keep interest rates near zero until the first half of 2022.

The low-interest-rate myth continues. The popular belief is that low interest rates are economically stimulative because they make borrowing cheaper.

But low interest rates have a negative side: They reduce the amount of interest the federal government pays on its Treasury Securities, i.e. the amount of interest money the government pumps into the economy. This reduction directly cuts GDP.

**The blue line is the fed funds (interest) rate. The red line is GDP growth, year-to-year.**

As the above graph demonstrates, high interest rates correlate with high GDP growth and low rates correlate with low GDP growth.

As interest rates trended up, through 1980, the GDP growth trended up. Then, as interest rates trended down, the GDP growth rate trended down.

**The green line is federal interest payments growth, year-to-year.**

The above graph is similar to the previous graph except it shows total interest paid rather than interest rates. The result essentially is the same.

On average, the more interest the federal government pays, the more GDP grows.

“Even if the economy starts to re-open in mid-May, more than 20 million Americans will have lost their job with the economy likely having contracted around 13% peak-to-trough, more than three times deeper than the global financial crisis,” James Knightley, chief international economist at ING Financial Markets, wrote with his forecast submission.

“It will be a gradual re-opening of the economy, so a return to ‘business as usual’ is many months away.

Throw in crippling financial losses and a legacy of defaults and it means we estimate U.S. economic output won’t return” to the late-2019 peak until mid-2022 at the earliest, Knightley said.

People “lose their jobs” because companies cannot afford to maintain payroll. As the companies run short of money, their people run short of money. When consumers run short of money, they buy less, so more companies run short of money, in a self-strengthening helix descending to depression.

To cut the helix, the government must give (not lend) money to businesses and to consumers.

“Crippling financial losses and a legacy of defaults” are symptoms of a lack of money.

See the commonality? The overarching problem facing the economy is a shortage of money — which the federal government could solve with sufficient deficit spending.

Bernanke quote.png

The U.S. federal government has a massive built-in advantage, that if used properly, would eliminate recessions and depressions. Unlike state and local governments and unlike euro-nation governments, the U.S. government is Monetarily Sovereign.

It has the unlimited ability to create U.S. dollars and to give those dollars any value it chooses.

There is no excuse for a company to fire people because it has run short of payroll dollars if the government simply will provide per-employee financial support.

There is no excuse for “crippling financial losses” if the government will pump dollars into the economy.

We are at war with our financial enemies: Recession and depression. The U.S. government has an ultimate weapon to use against these enemies: Monetary Sovereignty.

Instead, it chooses to fight with sticks and stones — little sticks and tiny stones. And it leaves the battle to the monetarily non-sovereign states, counties, and cities. The army has departed the battlefield, leaving the women and children to fight empty-handed.

The government is in a war against the enemies, recession

As a result, we will lose the war, and the American people will suffer.

Needlessly.

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:

Monetary Sovereignty describes money creation and destruction.
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

The secret to making the economy rebound.

The secret to making the economy rebound?

It’s no secret. Or rather it is a secret to those who intentionally close their eyes and stumble about.

The secret is to reverse the problems.

Problem #1. Lack of money.

A strong economic rebound likely depends on people and companies being able to preserve their money, so that it can be spent and invested once the gloom begins to subside.

Not only have 16.8 million Americans lost their jobs in the past three weeks, but workers have seen their hours slashed, have seen sales commissions disappear and have accepted salary cuts, such that incomes have declined for half of U.S. working households, according to a survey from The Associated Press-NORC Center for Public Affairs Research.

Congress has been patting itself on the back for pumping a claimed $2 trillion into the economy. Sadly, it’s not $2 trillion, because much of it has be lent, not given, so as the loans are paid off, money will again disappear.

Second, the money is going out slowly, so the effect will be slow.

And third, and most important, it simply isn’t enough. You can’t stimulate the giant U.S. economy with a mere $2 trillion (or whatever). It would be like you giving a dime to a beggar and assuming that would lift her out of poverty.

giving coin to beggar.png — **“Here’s a dime. Buy yourself some food, clothing, and a house.”**

The solution: Pump BIG money into the economy. Step #1 of the Ten Steps to Prosperity (below) would be a good start.

Eliminating FICA would pump about $1.2 Trillion into the economy and give it to the right people — the American worker — who would spend the money, thereby lifting the economy.

In fact, Steps 1 through 7 would pump dollars into the economy, and Step 10 might, depending on specifics.

Problem #2. Loss of a generation

Children can no longer attend school, reducing the productivity of their parents.

And not just small children. Tomorrow’s leaders are receiving online classes from their schools or attending digital schools like University of Phoenix.

Yes, it’s much better than Trump University, but being honest, it’s much less educational than in-person classes. It simply isn’t, for the many reasons you can imagine yourself.

So this may turn out to be the poorest educated, least productive generation in recent history. I pray I’m wrong on this, but all the signs point in that direction.

Problem #3. Impoverished states, counties, and cities

On a regional basis, many state economies may take time to claw back what has been lost.

The states (and counties and cities) pay for so much already, and unlike the Monetarily Sovereign federal government, they do not have access to unlimited funds.

Think of grades K-12, where there always is a struggle for money. The states and local communities pay for that education, and with lower sales taxes, lower income taxes, and probably lower property taxes, how will these monetarily non-sovereign governments fund education?

Cut teachers? Cut “unnecessary” programs like art, gym, social studies — cut everything but Science, Technology, Engineering, and Mathematics? (STEM), and I’m not confident that even STE will be saved in all circumstances.)

Remember too, that state and local governments are the primary sources of infrastructure and locally needed funds: Roads, flood control, crime control (courts, police, jails, etc.), many hospitals, many universities, garbage collection, water, building codes, business inspection, etc.

What are the options for these non-federal governments. Only two, and neither contributes to economic recovery: Increase taxes or reduce services. Two disasters.

Problem #4. Reduced business and technical growth

“Working from home is creating a collapse in investment. All firms I have spoken to have canceled training, new product introductions and R&D projects, while at U.S. universities and laboratories unless you are working on COVID-19 you have stopped work.

So innovation — the main driver of long-run U.S. growth — has stopped.”

Problem #4 is the invisible one. You can see when people lack money, or when education is lacking, or when your local government can’t take care of your street, or when your house floods, but it’s difficult to tell when new inventions are not forthcoming.

If the Internet had not been created, we would have gone on without it, and none would be the wiser. For all you know, the “next great thing” will not happen, or at least it will be delayed because the potential inventor lost the education and/or the money that would have paved the way.

Problem #5. Fear

President Donald Trump has been telling voters that the U.S. economy will leap back to life “like a rocket,” stronger than ever after its bout with the coronavirus.

But there are emerging signs that any recovery will fail to match the speed and severity of the economic collapse that occurred in just a few weeks.

“Anyone who assumes we’re going to get a sharp snapback in activity isn’t thinking about how consumers are going to feel. They’re going to be very cautious,” said Nariman Behravesh, chief economist at IHS Markit.

“Households and businesses have seen their finances deteriorate. People are buying groceries on their credit cards.”

To understand the consequences of a sudden negative shock on the economy, Behravesh studied how many people returned to flying after the Sept. 11, 2001, terrorist attacks.

“It took 2 1/2 years for airline passenger traffic to go back to previous levels,” he said.

No longer able to campaign on a half-century low unemployment rate, Trump has begun to tell voters that he can quickly rebuild the economy. He said measures like the $2.2 trillion rescue package — with more money likely on the way — can send employment and economic growth to new highs.

Paul Winfree, a former Trump White House official who is now director of economic policy at the conservative Heritage Foundation. said in an email. “Things won’t turn around until a significant majority of people decide that we’ve done enough (privately and publicly) and have to move along.”

If Congress used this crisis as a basis for instituting the Ten Steps to Prosperity (below), we would go a long way toward eliminating the terrible losses of 2020.

But so long as the current incumbents continue to dither and argue about which $250 billion program should be funded, rather than sending at least $7 trillion into the private sector, hope for the future is bleak.r

If nothing else, the current crisis is a strong endorsement for Congressional term limits.

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

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

The most important problems in economics involve:

Monetary Sovereignty describes money creation and destruction.
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.”

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

Intelligence from the other side

This article ran today in the far-right, on-line magazine, Breitbart:

Common Anti-Parasite Drug May Kill Coronavirus in Under 48 Hours, Say Researchers

Researchers in Australia report that Ivermectin, an FDA-approved drug commonly used to treat parasites, appears to be effective in treating the SARS-COV-2 coronavirus (COVID-19). The drug is widely available and can be “repurposed” for this application, doctors said.

The ScienceDirect journal, Antiviral Research, published an article by a group of Australian researchers from Monash University in Melbourne reporting that Ivermectin appears to be effective at inhibiting the coronavirus that causes COVID-19.

The article states:

Ivermectin is an inhibitor of the COVID-19 causative virus (SARS-CoV-2) in vitro.

A single treatment able to effect ∼5000-fold reduction in virus at 48h in cell culture.

Ivermectin is FDA-approved for parasitic infections, and therefore has a potential for repurposing.

Ivermectin is widely available, due to its inclusion on the WHO model list of essential medicines.

“We report here that Ivermectin, an FDA-approved anti-parasitic previously shown to have broad-spectrum antiviral activity in vitro, is an inhibitor of the causative virus (SARS-CoV-2),” the researchers write. “Ivermectin, therefore, warrants further investigation for possible benefits in humans.”

The leader of the research team, Dr. Kylie Wagstaff issued a statement, saying, “Ivermectin is very widely used and seen as a safe drug. We need to figure out now whether the dosage you can use it at in humans will be effective—that’s the next step,” Newsweek magazine reported. “We found that even a single dose could essentially remove all viral RNA by 48 hours and that even at 24 hours there was a really significant reduction in it.”

“Ivermectin’s status as a drug that has already been studied and approved to treat other conditions offers a decided advantage over the development of new drugs, a long process that typically involves many years of studying safety and efficacy before being able to reach human patients,” Newsweek stated.

Dr. Leon Caly, an author of the study and a senior virus identification specialist at the Victorian Infectious Diseases Reference Laboratory, added, “As the virologist who was part of the team who were first to isolate and share SARS-CoV-2 outside of China in January 2020, I am excited about the prospect of Ivermectin being used as a potential drug against COVID-19.”

The World Health Organization approved the use of Ivermectin in humans to treat onchocerciasis in 1987. “Ivermectin is safe and can be used on a wide scale. It is also a very effective treatment and has single-handedly transformed the lives of millions of people suffering from onchocerciasis,” the WHO wrote in an article on its website. The medicine is widely available.

I have no idea how valid this is — whether it is a real breakthrough or another disappointment.

So I looked to Breitbart readers’ for intelligent “guidance.” Here are samples of their comments.

One only can admire the brilliance of those supporting our President:

President Trump has been very effective in getting drugs okayed to fight WUHAN flu. Let’s pray that at least one of them will prove effective against WUHAN flu. Let’s open America for business again soon.
TRUMP 2020!

There are likely many drug cocktails that can treat this virus and the Dems will make sure every single one of them is blocked. Death, mayhem and destroying the economy is their main goal. Helping the American people through a crisis NEVER crosses their minds. They would rather let people d!e than do anything to help Trump!

So far, the DemocRat efforts, have only stalled solutions and that has been part of what’s frustrating ALL of them. You are correct, in regard to the TDS, and the disregard of the devastation on either people or America as result. Their warped minds: they feel it’s okay, if it stops Trump.

I won’t have to worry about this drug’s effect. Our “illustrious” Governor in Michigan will threaten doctors about prescribing it, if it shows any promises of hope.

Suddenly she is now begging for the hydroxychloroquine.

And now we find out that the governor of Nevada who forbid the use of hydroxychloroquine is hoarding it. Despicable Democrat governors!

Don’t you just know it? Whaddah bunch of 5h!t he4d5.

Hoarding it for prisoners, gots to protect that Drat voter base.

She’s probably trying to get in the record that she wants the anti-malaria drug. Now that she’s caused people to die by preventing doctors in her state from prescribing HydroxyChoroquine! I hope the families of people she caused to die sue her butt off!

She certainly didn’t handle the crisis well, but forward thinkers like our President will do what’s best for Americans, and that brings with it hope, which is key.

The British NHS have banned the use of this drug because it is not on the approved list, so people are just left to die even though the drugs that would save them are sitting on the shelf.

The UK has one size fits all socialized medicine. If it’s not in the budget and you need it, or you’re deemed to be too old, TOUGH LUCK. If you are deemed eligible, you might die while waiting in long lines.

Yeah!!! They’re blockeads. They can’t figure out they’re mortal like you, like me.

Sovereign immunity drastically curtails any meaningful monetary judgement.

Michigan motto: ‘We will crush Hope.’

Dont forget Obama originally brought Michigan HOPE… the economy never recovered until Trump.

He brought HOPE alright – Hell On Planet Earth.

Just what we need, mentally ill leftist sociopath Nancy Pelosi as president (God forbid). She’s 3rd in line of succession as Speaker of the House.

You have to wonder what drugs Nasty Nancy and Chuck you Schumer are taking to stay alive past their normal shelf lives ? And continuing to damage America with their Anti Border wall Rhetoric ! How many murders of Americans are they responsible for by Criminal Illegals freely flowing through Americas unprotected lower border ?

Many people are STILL waiting for obama’s citizenship to be investigated. There now is doubt as to whether obama is a U.S. citizen at all, much less a natural born citizen.

Sure he is a citizen, That is why his college records are sealed. He applied to prestigious colleges and universities as a FOREIGN student, from Indonesia, where US entrance acceptance requirements are much slacker for foreigners. How else to explain a pot smoking student with poor grades getting accepted into ivy league schools and, WHO, exactly paid for his college? He was broke. Obama was a sham through and through and the worse president America has ever had.

NO ONE, not even the professors, remember Barry Soetoro aka Barack Hussein 0bama at Columbia University. At the time, there were few black students, so he would have stood out. If he applied as a foreign student, which he likely did, it means he LIED about it (student loan and college application fraud) OR he actually WAS a foreign student, and was ineligible to be president. Either way, he committed felonies. There is very strong evidence that Barry committed social security fraud by using someone else’s SS# (a story in itself), and selective service registration fraud.

Still wondering where, oh where did the missing Immigration records go in Hawaii – the ONLY records missing, in the ENTIRE history of the immigration entry records – appears to be the two weeks Obozo’s Commie Mommy flew into Hawaii – Did she have a US born son with her, OR . . .

Barry Soetoro aka Barack Hussein 0bama was not a natural born citizen for 2 reasons: 1) BOTH parents have to have been US citizens at the time of birth. Only his mother was, not his alleged father (although his real father may have been communist Frank Marshall Davis). 2) Barry was required to have Indonesian citizenship under Indonesian law when he attended school there at a madrassa. Another citizenship automatically negates natural born citizenship status since it creates a divided loyalty. He may automatically have given-up his US citizenship when he became an Indonesian citizen. There is no evidence that he ever was repatriated when he returned to the United States. Barry Soetoro aka Barack Hussei 0bama is a TOTAL FRAUD.

Let us remember that these are the well-informed, logical responses to an article about Ivermectin, a hoped-for treatment of COVID-19.

Lest you believe these comments are an aberration, I can assure you they are quite typical of what you will see on any right-wing web site — Breitbart, Fox News et al. The tone has been normalized by our leader’s tweets.

It is comforting to know that these are America’s voters, the people who gave us Donald J. Trump.

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

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

The most important problems in economics involve:

Monetary Sovereignty describes money creation and destruction.
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.”

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

Who wins the stupidity wars?

RUNNER STUPIDITY.png — And the winner is . . .

We’ve grown accustomed to Trump’s idiocies — his claim that he will replace Obamacare with “something great” (though he had no plan and still doesn’t), and that he “saved pre-Existing conditions in your healthcare” (while he goes to court to destroy the very program that offers coverage for pre-existing conditions).

OK, so that’s the Trump/FoxNews/BreitbartNews “Say stupid” system for eliminating any credibility the conservative movement once had.

Lately, amidst all the daily lies coming from the right, we had Georgia Governor Brian Kemp claiming on April 1, “. . . we didn’t know until the last 24 hours” that people can be asymptomatic throughout the (COVID-19) disease and still spread it.”

(Fortunately, stupidity itself can be spread only when people are symptomatic.)

And now, we have Senator Marsha Blackburn (R-TN), whose latest contribution to right-wing stupidity is this:

Blackburn: China ‘Should Waive Some of Our Debt’ — ‘They Have Made a Global Pandemic Worse’

The United States owes nearly $1.08 trillion to Mainland China. Senator Marsha Blackburn (R-TN) argues China should consider waiving some of that debt given the communist nation’s role in the spread of the COVID-19/coronavirus.

The so-called federal “debt” is the total of deposits into Treasury Security Accounts held at the Federal Reserve Banks. This is China’s money, held by the U.S. government for safekeeping, at the direction of China.

Is Sen. Blackburn really suggesting that China give the U.S. government a few billion dollars? Does she not know that the U.S. government, being Monetarily Sovereign, has the unlimited ability to create dollars.

Does she not realize that China. like the U.S., is Monetarily Sovereign, so it too has the unlimited ability to create its own sovereign currency, which it can exchange for all the dollars it needs.

For China to give U.S. dollars to the U.S. federal government would be like you pouring a 1/100th thimbleful of water into the Pacific Ocean. It wouldn’t punish you and it wouldn’t reward the Pacific Ocean.

“One of the things is my Senate Resolution 553, which it expresses the sense of the Senate — that we know this came from Wuhan, China, and that they hid the information and were not transparent, that they blocked the World Health Organization and the CDC from coming into help.

“They tried to blame it on the U.S. military. And we hold them accountable.”

Clearly, Sen. Blackburn does not understand the irony of her statement.

It was her peerless leader, Donald J. Trump, who “hid the information and was not transparent,” and it is was Donald J. Trump who fired the U.S. pandemic response team in 2018.

And after first denying that there has been a slow response to the virus, Trump now blames impeachment for the slow response to coronavirus.

Perfect . . . as perfect as Trump’s famous phone call.

“I will tell you I think we need to look at the fact that China owns over a trillion dollars of our debt,” she said. “They like investing in us. Why do they like that? Because we are a safe debt for them — a safe place for them to put their money.

And knowing that they have made a global pandemic worse than it ever would have been because of their action — they should waive some of our debt.

They have caused us a tremendous amount of loss of life, loss of businesses, suffering, inconvenience, shutting down our economy.”

Yes, T-deposits are a safe place to put their U.S. money; safety is one reason why the U.S. provides for the deposits. That safety helps stabilize the dollar, which benefits us.

But, if Sen. Blackburn wants China (unnecessarily) to give the U.S. government some U.S. dollars, what does that have to do with the deposits?

China could (unnecessarily) send a billion, or even a trillion U.S. dollars to the U.S. government, just by pressing a computer key. This has zero relevance for the so-called “debt.”

Another component the Tennessee Republican argued for on the accountability front was to bring elements of manufacturing back from China to the United States.

“These are all things that we should take into consideration — bringing our manufacturing back, not only our pharmaceutical manufacturing — I was working with one of my colleagues today,” Blackburn explained. “There are other things we can bring back and put America back in the manufacturing business.”

“I told the Vice President the other night — I said, ‘Look, we should take my bill and some others that are focused on manufacturing and call it the MAMA Act — Make America Manufacture Again,’” she said. “And bring these jobs back to U.S. shores.”

And the purpose of “putting America back in the manufacturing business” is to what?

To increase our consumer prices, by forcing Americans to pay more for goods?

Or, to send U.S. dollars to a U.S. government that doesn’t need dollars?

Or, switch America to more manufacturing employment, which is far more vulnerable to pandemics than, for instance, online businesses?

We have borrowed $2 trillion to stabilize our economy.

China will turn around and buy that debt. They’ll buy that. That’s where they’ll park their money. They’ll buy those bonds. They’re going to end up enriching themselves through a problem that they caused.”

First, “we” (the federal government) didn’t borrow anything. We accepted deposits. We don’t need the dollars. We create all we need at the touch of a computer key.

Second, China parks their dollars there, as a safe, trading convenience. It’s good for us and it’s good for them. It helps stabilize the U.S. dollar.

Third, those deposits do not “enrich” China.

So Sen. Blackburn’s entire argument is a ballad to ignorance. She has absolutely no idea about how federal finances work, apparently believing they are like personal finances.

About the only thing I can say in defense of yet another bit of conservative obtuseness is that the liberals can be, and often are, stupid, too.

It’s just that beginning with “Dubya” Bush, and now Trump leading the conservative team, they have a huge, unfair advantage in the stupidity wars.

Because Trump says something stupid almost every day, we need to refresh our memories, with this, this, this, this, and this. In the stupidity wars, Trump is the big gorilla — the dumb one.

And then, if you add the conservatives’ dumb bigotry against everyone who is not a native-born, American, white, Christian, old male, having native-born, American, white, Christian parents, there really is no contest.

Conservatives win by a parsec.

And hey, who needs Medicare for All, anyway?

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

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

The most important problems in economics involve:

Monetary Sovereignty describes money creation and destruction.
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.”

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

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