Student loans: Another screwing of the middle classes

Let’s be clear. Every time the government pays a creditor, it creates new dollars, ad hoc.
In fact, paying creditors is the method by which the government creates dollars.

Thus, the U.S. federal government cannot unintentionally run short of its own sovereign currency.

Let’s be clearer. The U.S. federal government has absolute control over the value of the U.S. dollar (aka “inflation.”) Not only does the government control interest rates (which affect the value of the dollar) but the government arbitrarily can and has changed the value of the dollar many times.

Coinage Act of 1792
Coinage Act  of 1834
Coinage Act of 1853
Coinage Act of 1857
The Mint Act of 1873
Coinage Act of 1965
Nixon “Shock” of 1971

With the unlimited ability to create dollars, and the unlimited ability to control inflation, the federal government has no need to ask anyone for U.S. dollars.

It already has infinite dollars.Facepalm - Wikipedia

In fact, all U.S. tax dollars sent to the federal government are destroyed upon receipt.

These dollars, formerly part of the M1 money-supply measure, cease to exist in any money-supply measure after arriving at the U.S. Treasury.

Thus, federal taxes are not collected to provide the federal government with spending money.

The sole purpose and effect of federal taxation is to control the economy by rewarding what the government wants to encourage and by penalizing what the government wishes to discourage.

Thus, the government never should lend dollars, because lending requires repayment of dollars, which the federal government doesn’t use.

The government should give dollars when it believes dollars are needed. Giving, rather than lending, adds growth dollars to the economy.

One goal of the federal government should be to ease the ability of middle- and lower-income students, to attend college if they wish to.

Unfortunately, to achieve that goal, the government provides colleges students with dollars, via lending.

The above facts are what make the following article so infuriating.

Predatory student loans
Servicing company required to cancel $1.7B in debts for 66,000 borrowers
By Stacy Cowley The New York Times

Navient, once one of the country’s largest student loan servicing companies, reached a $1.85 billion deal with 39 states to settle claims that it had made predatory student loans that saddled millions of borrowers with billions of dollars in debt that they were highly unlikely to repay.

The deal, announced Thursday, requires Navient to cancel $1.7 billion in private student loan debts for nearly 66,000 borrowers and pay $95 million in restitution.

The private loans were crucial to Navient’s ability to make a large volume of lucrative federal loans, prosecutors said.

“Navient repeatedly and deliberately put profits ahead of its borrowers,” said Josh Shapiro, the attorney general of Pennsylvania, one of several states that had sued Navient.

Most of those who took out the private loans attended for-profit schools, often ones with low graduation rates and poor job-placement records.

The private loans Navient made were — in the company’s own words, according to legal filings — a “baited hook” that the lender used to reel in more federally guaranteed loans.

At some schools, it anticipated that more than 90% of the loans would default.

Rather than helping lower- and middle-income students succeed, and narrow the Gap between the rich and the rest, student loans do exactly the opposite.

Student loans doom students to lifetimes of debt and low credit ratings.

Imagine lending money when you know 90% of the borrowers would be forced into default. It is yet another clever scam by the rich (who control the U.S. government), to widen that Gap, while not-so-incidentally, putting dollars in their own pockets.

Navient, which did not admit any fault in the settlement, said it did not act illegally.

“The company’s decision to resolve these matters, which were based on unfounded claims, allows us to avoid the additional burden, expense, time and distraction to prevail in court,” said Mark Heleen, Navient’s chief legal officer.

Oh sure. All innocent companies settle lawsuits for $1.7 billion + $95 million.

Several state attorneys general also filed state lawsuits claiming that Sallie Mae — Navient’s predecessor company, from which it split off in 2014 — made private, subprime loans to borrowers it knew were likely to default.

Under Education Department rules, no more than 90% of a school’s tuition payments can come from federal funding. The private loans were intended, according to court filings, to fill that gap and lure in students, who would then take out the lucrative federal loans that the schools — and Navient — relied on.

The settlement calls for payments of around $260 per person to be distributed to 350,000 federal loan borrowers.

That $260 is a pittance compared to what the students owe or have paid.

To maintain America’s competitiveness in the world, a college education has become more necessary for America’s young people. To increase America’s wealth and to decrease poverty, the Gap between the rich and the rest should be narrowed.

If the government truly wished to encourage America’s competitiveness, and to narrow the Gap, rather than merely feeding the rich, it would fund free education for all.

Consider that the states, counties, and cities, none of which have unlimited dollars, already fund free K-12, and you can see what a scam the federal student loan system is.

The federal government should adopt Step 4, Free education for everyone, and Step  5, Salary for attending school  of the Ten Steps to Prosperity (below).

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:

  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. 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 is to blame for the endless failure of economics.

Why is the vast majority of the public so ignorant about even the most basic elements of economics?

5 Things Your College Professor Wished You Knew | Start School Now
This is what my professor was taught, and what he taught me, and what I’m teaching you. Now you teach it to others. That’s how science works.

Why do people believe the federal government, Medicare, and Social Security are running short of dollars?

Why does the harmful and financially ignorant debt ceiling persist?

Why is there poverty in America? Why is there so much street crime?

Why do the rich grow richer while the poorer fall further behind?

The wrong answers to all these questions stem from what is taught in our schools, by our so-called thought leaders.

Just as religious leaders teach from never-changing bibles, too many economics professors teach from never-changing assumptions.

But, what may be acceptable for religion is unacceptable for science.

Surprisingly few economics professors are willing to learn, understand, or teach the following facts.

  1. Financial debt is money, and money is debt. They are two sides of the same debt/money “coin.”
  2. Eliminating debt means eliminating money, which always is a recessionary/depressionary economic plan. GDP growth (by formula) requires debt/money growth. (GDP=Federal Spending + Non-federal Spending + Net Exports.)
  3. Gap Psychology dictates that the rich get richer (widen the Gap) not only by increasing their ownership of debt/money, but by reducing the not-rich’s ownership of debt/money.
  4. Federal “debt” is not debt, but rather it is deposits into privately-owned T-security accounts. The Treasury does not use those dollars. The accounts are paid off simply by returning their balances to the account owners. No tax dollars are involved. Thus misnamed federal “debt” is not a burden on the government or on future taxpayers.
  5. The federal government is Monetarily Sovereign. It has the infinite ability to create dollars. Thus, it does not borrow dollars. It accepts deposits into T-security accounts, the purposes of which are not to provide spending funds, but rather to stabilize the dollar and to help the Fed control interest rates.
  6. For the same reasons, federal taxes do not fund federal spending. Even if all federal tax collections totaled $0, the federal government could continue spending, forever. Federal taxes are destroyed (i.e. cease to be part of M1 or any other money supply measure) the instant they are received by the Treasury. That is why no one can answer the question, “How much money does the Treasury have?” The best answer is, “Infinite,” which remains “infinite” whether or not tax dollars are received.
  7. The purpose of federal taxes is not to provide spending funds, but rather to control the economy by discouraging what the government doesn’t like and encouraging what it does like.
  8. The income/wealth/power Gap is what makes the rich rich. Without the Gap no one would be rich; we all would be the same. The wider the Gap, the richer are the rich. The best way to narrow the Gap between the rich and the rest is for the federal government to provide benefits to the rest, which the federal government has the infinite ability to do.
  9. Street crime is a function of poverty. The best way to reduce street crime is not via increased policing, but rather by reducing poverty.
  10. There is no public benefit to private ownership of banks. All banks should be nationalized.
  11. Federal spending is not socialismFederal ownership (as with, for instance, VA hospitals and national highways is socialism.)
  12. No inflation in history has been caused by “excessive” federal spendingAll inflations are caused by shortages of key goods and services, most notably shortages of food, energy, and labor. Federal spending actually can eliminate inflation by increasing the availability of the scarce goods and services.

Where does all the misinformation come from? It begins with, and is promulgated by, the “experts,” the economists.

Blame the incurious, intellectually lazy economics professors, who do not question what they were taught in college, but rather parrot it to their students, who continue the endless circle. Add to those pejoratives the word “greedy,” since this all is financed by the rich as a way to widen the Gap.

Thus today, we continue to see the same old misguided, disproven worries about federal “debt” and federal deficits, federal government “insolvency,” benefit “unaffordability,” government spending as a cause of inflation and “socialism,” and the false need for federal taxes to finance federal spending.

Remember all of the above as today, you hear the specious arguments about the “debt ceiling,” exacerbated by the stubborn partisanship that could crash the American economy and the economies of the world.

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:

  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. 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 ultimate law for the ignorant

Some laws are written by the ignorant for the ignorant. There is a website called “Stupid Laws” that lists many such laws.

For instance, the website lists (I can’t verify the truth of any of these):

sara jean underwood: Jay (the carnival barker) Carney
See the amazing penniless federal government. It’s poor.  It’s destitute. it’s impecunious. Would I lie to you?

Even if the above laws actually exist, their foolishness pales in comparison to this one, the ultimate law for the ignorant:

Democrats Press Ahead With Debt-Limit Vote Amid Standoff With GOP
Kristina Peterson, Kate Davidson

WASHINGTON—A partisan fight over raising the government’s borrowing limit is expected to ratchet up this week, with Democrats moving ahead with a vote in the face of strident GOP opposition, raising doubts about whether Congress will take action before the federal government runs out of cash.

Yes, we’re talking about the “Debt Ceiling,” that ultimate law for the ignorant.

The federal government, being Monetarily Sovereign, has the unlimited ability to create its own sovereign currency, the U.S. dollar.

The federal government has been creating dollars since the 1780s when it created the very first dollars from thin air.

It created as many dollars as it wished and gave those dollars the value it wished, imply by creating laws, also from thin air.

Since then, the only limits on federal dollar creation have been placed on the government by . . . the government.

Nothing limits the government’s ability to create laws, and nothing prevents those laws from creating dollars.

Interesting that no one complains about a law deficit, but people complain about a dollar deficit, when it is the laws that create the dollars.

GOLD STANDARDS
Intermittently in America, there have been periods of “gold standards,” in which the government declared, in essence, “We will create dollars only up to the amount of gold we have.” 

But what does that limitation mean?

Assume the U.S. owned ten kilograms of gold. How many dollars would a gold standard allow the U.S. to create?

  1. __________$10 million
  2. __________$100 million
  3. __________None of the above
  4. __________All of the above
  5. __________Whatever number Congress and the President want

See the problem? The answer depends on how many dollars per kilogram are allowed by U.S. government laws.

So, the answer is #5. All gold standards rely on Congress and the President to create laws that will determine the circumstances by which dollars will be exchanged for gold.

Through the decades, the government amended its laws that changed this exchange value many times, or when convenient, rid itself of a gold standard until, in 1971, President Nixon did away with all gold standards, on a permanent basis it is to be hoped.

Given that the government has the unlimited ability to create the laws that create dollars, and to endow these dollars with any value vs. gold it wishes, of what purpose is a gold standard?

Contrary to popular myth, gold never has “backed” the U.S. dollar, if “backing” means to give value or security to the dollar. The government, arbitrarily and without notice, can change the dollar/gold exchange rate, so exactly what value does gold provide to a dollar? None.

The U.S. dollar is a debt of the federal government. All debts are backed by collateral. Most debts have two or more levels of collateral: A physical item plus the full faith and credit of the debtor.

For instance, the collateral for a house mortgage is the value of the house plus the full faith and credit of the borrower. Together, they comprise the “backing” for the mortgage.

The only — ONLY — collateral for the U.S. dollar is the full faith and credit of the U.S. government. Nothing else ever has backed the dollar, not the Grand Canyon, not the Great Lakes, not the Missippi River, not the “amber waves of grain,” and not gold.

The acceptance of the dollar worldwide is based solely on the full faith and credit of the U.S. government, which fools in Congress now are determined to destroy.

The standoff has alarmed Wall Street analysts and business leaders, who in recent weeks have issued warnings about a rising risk of a technical default, in which the government might be unable to make all of its regular payments in full and on time.

The threat of such a default could derail markets and hit U.S. economic growth.

There never is a time when the government is unable to make its payments. That “technical default” merely means the government would be unwilling to make its payments.

If you owe $100 that contractually is due for payment this coming Friday, but today, Wednesday, you decide you are not going to pay any more bills this week, does that mean you are unable to pay or actually are unwilling to pay?

Activating the so-called “debt limit” or “debt ceiling” merely means Congress arbitrarily has decided not to pay any more bills, even though it has the unlimited ability to create dollars.

The debt ceiling is not a budgetary method. It is not a way to rein in spending. It does not demonstrate fiscal wisdom. It demonstrates spiteful idiocy, the desire by one political party to damage the other political party, the American economy be damned.

The budgets and spending already have happened. The debt limit is nothing more than a method for stiffing creditors.

All those who favor the debt ceiling, knowingly or unknowingly, want the United States of American to become a (take your pick) a welcher, a moocher, a deadbeat, a freeloader, a sponge, a parasite, or a reneger.

Employing a debt-ceiling is not a sign of thrift or prudence. It is the mark of a crook.

House Majority Leader Steny Hoyer (D., Md.) said Friday that the chamber would vote this week on a measure to suspend the debt limit and a short-term measure extending the government’s funding beyond its expiration at month’s end. 

The correct wording for the above paragraph should be, “House Majority Leader Steny Hoyer (D., Md) said Friday that the chamber would vote this week for the U.S. government to pay its bills.”

It’s a disgrace that the House actually has to vote on whether or not the government should pay what it legitimately owes. What next? A vote on whether or not to hold elections in the future? A vote on whether or not to create sensible laws?

The House will “ensure that America pays its bills on time,” Mr. Hoyer said in a letter to House Democrats Friday.

How very reassuring.

Raising the debt limit doesn’t authorize new spending, but rather allows the Treasury Department to issue new debt to cover spending that Congress has already authorized, including payments to bondholders, Social Security recipients and veterans.

Republicans have said they won’t help Democrats raise the borrowing limit, as a protest over the trillions of dollars in new spending the party is moving through Congress.

Then we come to that oft-misused word, “debt.” In federal lingo, “debt” means T-bills, T-notes, and T-bonds, none of which are debt as you know it, and not even “bills,” “notes,” or “bonds.” And it definitely isn’t “borrowing.”

In the usual sense, borrowing is what one does when one wants money for some use. But the federal government always has had the unlimited ability to create dollars. So, it has no need to borrow.

Rather than “borrowing,” those T-securities represent deposits. When you invest in any T-security, you open a T-security account in your name and then make a deposit into that account.

The government — the so-called “borrower” — never touches those dollars as a borrower normally would. I doesn’t need your dollars.

Some time later, usually upon maturity, you take your money from that account. This erroneously is referred to a “paying off the debt,” but it actually merely means closing out your account and receiving your money.

Think of a bank safe deposit box. The bank never touches the contents. That is how T-security accounts operate.

Republicans have said they won’t help Democrats raise the borrowing limit, as a protest over the trillions of dollars in new spending the party is moving through Congress.

Again, it’s not “borrowing.” And it’s not frugality.

Let’s tell it like it is: The sole function of the debt ceiling is for the minority to obstruct the majority. There is no other purpose.

The “debt ceiling” has nothing to do with debt. It has nothing even to do with finances. It strictly is a political game, a dangerous political game, strictly played to thwart the opposing party.

It’s a game of “chicken,” with the future credit of the United States at risk.

“Let me be crystal clear about this: Republicans are united in opposition to raising the debt ceiling,” Senate Minority Leader Mitch McConnell (R., Ky.) told reporters last week.

“If they want to do all of this on a partisan basis, they have the ability and the responsibility to ensure that the federal government not default, and they will have to take care of that,” Mr. McConnell said.

Democrats have pointed out that they voted with Republicans to suspend the debt limit three separate times during the Trump administration, including in the fall of 2017, when the GOP sought to advance tax cuts using budget reconciliation.

“We didn’t play games. We didn’t risk the credit of the country. We did it,” Senate Majority Leader Chuck Schumer (D., N.Y.) told reporters last week.

McConnell is a traitor in every sense of the word. He repeatedly has been willing to damage America if he feels that will benefit the Republican party.

Yet, you perhaps would be more impressed with the Democrats’ “holier than thou” position if they simply had voted to eliminate the useless, misleading, dangerous, downright stupid debt ceiling, altogether.

In a Sept. 13 letter, the heads of several financial-services industry trade groups urged congressional leaders to raise or suspend the ceiling and emphasized the vital importance of the U.S. Treasury market for investors around the world.

A coalition of real-estate and mortgage-industry groups sent a similar letter Sept. 16 warning about potential instability in the housing market stemming from a debt-limit impasse, and permanently higher borrowing costs.

Treasury Secretary Janet Yellen has said her agency could run out of cash to keep paying the government’s bills some time in October.

Unless Congress raises the ceiling, the Treasury might need to halt more than 40% of its payments, including some to U.S. households, they estimated.

“With no clear path toward debt-limit resolution over the near term, we are at the point where this could begin to impact financial conditions,” they said in a note to clients.

The White House on Friday issued a more blunt warning: Failing to suspend the debt limit could lead to a recession, at a time when the Delta variant has already clouded the economic outlook.

The Republicans again demonstrate more loyalty to party over country, so a recession prior to the next election would be exactly what they want.

And guess which payments would be the first to be halted. All payments that benefit the poor and middle classes. The”Party of the Rich” will do nothing to hurt the rich.

And that’s what this game of chicken is all about.

Raising the debt limit wouldn’t facilitate future spending, and Congress would still need to raise the debt limit this fall even if no new major spending programs are enacted.

That is because Congress has already approved spending and tax policies that result in large budget shortfalls, which the Congressional Budget Office projects will total $12 trillion over the next decade.

In recent years, those budget gaps were driven by large bipartisan budget deals, a GOP tax cut and more than $5 trillion in pandemic relief.

The debt ceiling is the ultimate law for the ignorant. It is a con job on you, an innocent public, to make you believe it is a way for Congress to be thrifty.

But the whole notion of “thrift” for an organization that has the infinite ability to create money, makes no sense and is in fact dishonest. It is especially dishonest for the Republican party which specializes in giving tax breaks to the rich.

Sadly, by misusing words like “debt,” and “borrow,” and by equating the Monetarily Sovereign federal government with monetary non-sovereign states, counties, cities, business, and you, the two political parties have managed to convince you the government can’t afford to provide you with benefits.

So, no free Medicare for you and everyone. No free Social Security for you and everyone. No free college for your children. And, there are all those needless federal income taxes you pay,  year after year.

You are being conned by the ultimate con job. Hello, sucker.

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:

  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. 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 most ridiculous article you will read this week. The religion of politics.

Here are excerpts from the most ridiculous article you will read this week, and that is saying a lot these days.

White House asks Congress to pass emergency funding for disaster aid, Afghan resettlement as well as spending bill to avert shutdown
Administration officials also asked Congress to pass a short-term spending bill to avoid a government shutdown in October.
By Jeff Stein

The White House budget office on Tuesday sent Congress an “urgent” spending request asking for tens of billions of dollars in natural disaster relief and Afghanistan resettlement funding as the administration tries to respond to both emergencies.

Magician Archetype - Channeling Power in the Light & Shadow
Believe what I tell you.

The White House is asking for $14 billion in aid to respond to natural disasters that occurred before Hurricane Ida, as well as $6.4 billion to pay for the ongoing relocation of tens of thousands of Afghans who partnered with the U.S. during the war in Afghanistan.

The administration anticipates that another $10 billion will have to be approved in disaster relief for Hurricane Ida as well.

As part of the request, White House Office of Management and Budget Acting Director Shalanda Young called for Congress to approve a short-term extension in government funding so that there isn’t a partial government shutdown on October 1..

OK, I get it. Congress should examine how money is used.

And though I can’t say whether $14 billion is the right amount for previous disasters, or whether $6.4 billion is right for protecting the people who helped and believed us, or whether $10 billion is right for reducing the suffering caused by Hurricane Ida, I can say this:

  1. The initiatives themselves are worthwhile
  2. The government has infinite money
  3. It’s better to err on the side of “too much” rather than too little.

There is no downside to spending “too much,” even if some of it is “wasted,” because government spending, even wasted spending, stimulates (by formula) GDP growth, and costs taxpayers nothing.

{Federal taxpayers don’t fund federal spending. Federal taxpayers don’t fund anything.)

So the same Republicans who voted for Trump’s tax cut for the rich, joined by a couple of self-proclaimed “moderate” Democrats, who “work across the aisle,” will prance and preen and pretend to be so concerned about taxpayers.

They will demand that everything be cut by 30%, and later, will blame Biden for not doing enough. Gotcha!

Breitbart and FOX will wring their hands and cry crocodile tears for the Americans who are suffering and for the Afghans who are suffering, though, in today’s bifurcated world, no one seems really to care about anyone else’s suffering.

It’s all self-serving righteousness performed on the world’s biggest pulpit.

But the most ridiculous part is the phony threat of a government shutdown.

As the upcoming game of “pretend chicken” plays out, the Republicans will huff and puff their fake fiscal integrity; the Treasury and the Federal Reserve will institute fake “extreme efforts” to keep America from falling into bankruptcy; fingers will point in all directions; and the stock market will crash long enough for the smart-money guys to pick some cheap fallen fruit.

Then, miraculously and heroically, accommodation will be reached; the phony debt ceiling once again will be lifted and rescheduled for six months hence; and the stock market dutifully will provide quick profits to those who weren’t fooled by the blather.

All will self-congratulate for saving America from the potential disaster they themselves created, and the economically uneducated voters will go on believing what they always have been told: The Big Lie that federal finances are just like personal finances so the federal debt must be reduced.

It’s like a football game in which the politicians are the players, and the people are the football. Everyone gets their kicks.

The White House’s request for short-term funding needs comes as it works on unrelated legislation for an approximately $3.5 trillion budget deal that Democrats are seeking to shape this month in Congress.

That sweeping package would overhaul the social safety net, authorize new climate change programs, raise taxes on corporations, and achieve a number of other Biden administration priorities.

If overhauling the social safety net included 100% free healthcare for every American, plus Social Security for every American, that would be the greatest use of federal financial power in the past century — perhaps ever.

Sadly, that won’t happen. Not even close. The rich don’t want it because of Gap Psychology, and the public doesn’t know the government can do it all without raising taxes.

Anyway, as everyone knows, the poor are a bunch of lazy takers, who deserve their misfortune, so why help them? Right?

The public also doesn’t understand that climate change is an extinction-level event we are leaving for our children and grandchildren to cope with, so why take any action now to reduce CO2? Let the Chinese do it first.

The Republican’s sole (fake) concern is with unborn children; they have no interest in children already born, and especially no interest in poor children already born. So they march around, displaying huge photos of fetuses, which in reality are the size of your thumb, and worry not about the fate of those unfortunate women and their subsequent babies.

It’s all God’s will.

The Democrats are so busy wallowing in the nobility of their causes, they can’t bring themselves to dare tell the truth about federal finances, or to actually play the politics game.

So they will enjoy continuing to be righteous losers, despite owning a majority of the total voters. After winning the last Presidential election by seven million votes, the Dems brilliantly have managed to position themselves as Congressional underdogs.

Meanwhile, the universally despised Donald Trump, after leading and losing an election, the swing state of Georgia, and a rebellion against American democracy, continues to be a GOP torch-bearer, because really, what else do they have?

The administration’s request for more funding for the Afghanistan relocation and disaster relief programs is likely to provoke substantial (fake) debate in Congress, where Republicans have hammered the White House for its handling of the withdrawal to end the war.

The majority of the $6.4 billion requested by the White House will go principally to fund processing sites for relocating tens of thousands of people in Afghanistan who partnered with the U.S. during the two decades of war there.

Of the $6.4 billion, the biggest chunk is for the State Department and Department of Defense relocation process for allies from Afghanistan and support for them to help them integrate into American life.

Another substantial amount of funding would go to United States Agency for International Development for Afghans at risk in the regions.

Administration officials said Tuesday the request would help plans for resettling as many as 65,000 Afghans who are expected to arrive in the U.S. by the end of September, as well as up to 30,000 Afghans expected to arrive in the U.S. over the next 12 months.

The Republicans, who blasted Biden for not extracting perhaps a hundred Americans and thousands of our Afghan partners to the tender mercies of the Taliban, soon will blast Biden for wanting to resettle the many thousands he was able to extract.

Trump will claim they all are terrorists, criminals, rapists, and unaffordable leaches on the economy, whose children might vote Democrat in future elections. If that sounds familiar, it’s what he said about Mexicans and Muslims. The plot never changes; only the cast of characters changes.

“The operation to move out of danger and to safety tens of thousands of Afghans at risk, including many who helped us during our two decades in Afghanistan, represents an extraordinary military, diplomatic, security, and humanitarian operation by the U.S. government,” Young’s letter said.

“We urge Congress to appropriate $6.4 billion to enable the success of this multifaceted, historic mission,” she wrote.

As soon we will hear that “Biden wants to import terrorists” (those same people the GOP pretended to feel so sorry for), we’ll enjoy the grandstanding about the money needed to conduct the vetting to filter out terrorists.

The disaster aid — likely more than $20 billion when the damages from Hurricane Ida are factored in — would help the administration respond to Hurricane Laura and Hurricane Delta, as well as droughts, wildfires, and flooding in other parts of the country.

Administration officials said on a call with reporters that climate change is creating more severe storms and disasters that are impacting a growing number of Americans.

One innocently might imagine disaster aid would be a no-brainer for Republicans. After all, the most hurricane damage occurred in “red” states.

But, the wildfire damage mostly occurred in blue states, and as Donald Trump has told us, global warming is a Chinese hoax, and wildfires are due to poor forest management, which could be prevented by raking the forests (and perhaps with a dose of hydroxychloroquine?)

So, the politics require that anything — ANYTHING –Biden wants to be opposed by the Trump-subservient GOP, no matter how seemingly beneficial.

In short, the entire article is political theater, It’s religious miracles and magic, performed by political clergy to entertain, the masses. But sadly, instead of being entertained, the masses think the whole thing is real.

The people not only believe, but passionately believe, as there is a direct, but inverse, correlation between intelligence and belief in the supernatural.

As this all plays out, prior to next year’s elections, just sit back and enjoy the show. Remember that none of it is real and no one is saying what they mean.

It’s all a put-on, to keep you contributing to your political religion of choice, and returning to the chapel for the holiday elections.

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. 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