Watch Pelosi and McConnell debate the stimulus package Monday, Mar 23 2020 

Pelosi McConnell gold bars.png

Nancy and Mitch can’t agree on how much gold to pump into the economy.

Pelosi: “The economy is crashing.”

McConnell: “And The People are suffering.”

P: “And dying.”

M: “And we’re running out of time to prevent a severe recession.”

P: “Or more likely a depression.”

M: “Even worse than the Great Depression of 1929.”

P: “But we can’t agree on how much money we should pump into the economy.”

M: “I want to pump in one gold bar. We can’t afford more than one.”

P: “And I want to pump in two gold bars.”

M: “But I want to give at least 1 gold bar to business.”

P: “And I want to give at least 2 gold bars to the people.”

M: “We don’t know what to do.”

P: “So we’ll just keep arguing.

M: “And arguing.”

The People: “Why not pump in 4 gold bars? Then you Mitch, can give more than 1 gold bar to business, and you Nancy can give more than 2 gold bars to The People, and the economy will recover faster, and everyone will be happy.”

P & M (together): “Not everyone.”

The People: “Who won’t be happy?”

Image result for tons of gold bars

“Infinite but unsustainable”

P & M (together): “The rich. They say we can’t afford to give so much gold to The People. They say giving 4 gold bars would be ‘unsustainable.’ And it would be giving The People too much. They wouldn’t know what to do with all that gold, like we rich folks do.”

P: “And it would be ‘profligate.’ The people probably would just use the gold for food, clothing, housing, and education rather than hiding it in overseas tax shelters, like we do.”

M: “And the Libertarians agree that all government gold is socialism.”

The People: “But, look around you. The government has infinite gold. It never can run short. Why not enrich the economy?”

P:  No, sorry. We’ll have to keep arguing and arguing, to keep The People down.

M: “If ever we do anything, it will be too little and too late.”

P: “And make it look like we really, really are trying.

M & P (together): “And hey, while we argue, you and I still are getting paid. And isn’t that the whole point?”

Image result for pelosi and mcconnell smiling

“I’m OK. Are you OK?” “Yes, I’m OK.”

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

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

The most important problems in economics involve:

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

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

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

Ten Steps To Prosperity:

1. Eliminate FICA

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

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

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

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

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

9. Federal ownership of all banks

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

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

MONETARY SOVEREIGNTY

An update of the biggest con job in American history: Tick, tick, tick. 80 years and the federal debt “ticking time bomb” still is ticking. Sunday, Jan 26 2020 

An update of the biggest con job in American history, that still is running:

Once again, I am compelled by recent articles to remind you that in 1940, when the phony federal debt was described as a”ticking time bomb,” America had not yet entered World War II.

The most popular songs were: Tommy Dorsey’s “I’ll Never Smile Again,” Bing Crosby’s “Only Forever,” and Artie Shaw’s “Frenesi

 The median annual income for a man in 1940 was $956. 

A postage stamp cost $.03.

A new car cost about $800 and for 18 cents, you could buy a gallon of gas.

And yes, the federal debt was called a “ticking time bomb.”

In 1940, when the federal debt first became a “ticking time bomb,” it was only $40-50 Billion. Today it exceeds $22 Trillion.

Year after year, that “ticking time bomb” of federal debt has kept ticking, and here we are, in 2020, with a  healthy economy, and still that phony bomb hasn’t exploded.

Eighty years of warnings, eighty years of being wrong, eighty years and many people still believe the doomsday sayers.

As we dance down Memory Lane, here they are, again:

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Back in 1940, the federal budget was a “ticking time-bomb which can eventually destroy the American system,” said Robert M. Hanes, president of the American Bankers Association.

By 1960: the debt was “threatening the country’s fiscal future,” said Secretary of Commerce, Frederick H. Mueller. (“The enormous cost of various Federal programs is a time-bomb threatening the country’s fiscal future, Secretary of Commerce Frederick H. Mueller warned here yesterday.”)

By 1983: “The debt probably will explode in the third quarter of 1984,” said Fred Napolitano, former president of the National Association of Home Builders.

In 1984: AFL-CIO President Lane Kirkland said. “It’s a time bomb ticking away.”

In 1985: “The federal deficit is ‘a ticking time bomb, and it’s about to blow up,” U.S. Sen. Mitch McConnell. (Remember him?)

Later in 1985: Los Angeles Times: “We labeled the deficit a ‘ticking time bomb’ that threatens to permanently undermine the strength and vitality of the American economy.”

In 1987: Richmond Times–Dispatch – Richmond, VA: “100TH CONGRESS FACING U.S. DEFICIT ‘TIME BOMB’”

Later in 1987: The Dallas Morning News: “A fiscal time bomb is slowly ticking that, if not defused, could explode into a financial crisis within the next few years for the federal government.”

In 1989: FORTUNE Magazine: “A TIME BOMB FOR U.S. TAXPAYERS

In 1992: The Pantagraph – Bloomington, Illinois: “I have seen where politicians in Washington have expressed little or no concern about this ticking time bomb they have helped to create, that being the enormous federal budget deficit, approaching $4 trillion.

Later in 1992: Ross Perot: “Our great nation is sitting right on top of a ticking time bomb. We have a national debt of $4 trillion.”

In 1995: Kansas City Star: “Concerned citizens. . . regard the national debt as a ticking time bomb poised to explode with devastating consequences at some future date.”

In 2003: Porter Stansberry, for the Daily Reckoning: “Generation debt is a ticking time bomb . . . with about ten years left on the clock.”

In 2004: Bradenton Herald: “A NATION AT RISK: TWIN DEFICIT A TICKING TIME BOMB

In 2005: Providence Journal: “Some lawmakers see the Medicare drug benefit for what it is: a ticking time bomb.”

In 2006: NewsMax.com, “We have to worry about the deficit . . . when we combine it with the trade deficit we have a real ticking time bomb in our economy,” said Mrs. Clinton.

In 2007: USA Today: “Like a ticking time bomb, the national debt is an explosion waiting to happen.

In 2010: Reason Alert: “. . . the time bomb that’s ticking under the federal budget like a Guy Fawkes’ powder keg.”

In 2011: Washington Post, Lori Montgomery: ” . . . defuse the biggest budgetary time bombs that are set to explode.”

June 19, 2013: Chamber of Commerce: Safety net spending is a ‘time bomb’, By Jim Tankersley: The U.S. Chamber of Commerce is worried that not enough Americans are worried about social safety net spending. The nation’s largest business lobbying group launched a renewed effort Wednesday to reduce projected federal spending on safety-net programs, labeling them a “ticking time bomb” that, left unchanged, “will bankrupt this nation.”

In 2014: CBN News: “The United States of Debt: A Ticking Time Bomb

On Jun 18, 2015: The ticking economic time bomb that presidential candidates are ignoring: Fortune Magazine, Shawn Tully,

On February 10, 2016, The Daily Bell“Obama’s $4.1 Trillion Budget Is Latest Sign of America’s Looming Collapse”

On January 23, 2017: Trump’s ‘Debt Bomb’: Deficit May Grow, Defense Budget May Not, By Sydney J. Freedberg, Jr.

On January 27, 2017: America’s “debt bomb is going to explode.” That’s according to financial strategist Peter Schiff. Schiff said that while low interest rates had helped keep a lid on U.S. debt, it couldn’t be contained for much longer. Interest rates and inflation are rising, creditors will demand higher premiums, and the country is headed “off the edge of a cliff.”

On April 28, 2017: Debt in the U.S. Fuel for Growth or Ticking Time Bomb?, American Institute for Economic Research, by Max Gulker, PhD – Senior Research Fellow, Theodore Cangeros

Feb. 16, 2018  America’s Debt Bomb By Andrew Soergel, Senior Reporter: Conservatives and deficit hawks are hurling criticism at Washington for deepening America’s debt hole.

April 18, 2018 By Alan Greenspan and John R. Kasich: “Time is running short, and America’s debt time bomb continues to tick.”

January 10, 2019, Unfunded Govt. Liabilities — Our Ticking Time Bomb. By Myra Adams, Tick, tick, tick goes the time bomb of national doom.

January 18, 2019; 2019 Is Gold’s Year To Shine (And The Ticking US Debt Time-Bomb) By Gavin Wendt

[The following were added after the original publishing of this article]

April 10, 2019, The National Debt: America’s Ticking Time Bomb.  TIL Journal. Entire nations can go bankrupt. One prominent example was the *nation of Greece which was threatened with insolvency, a decade ago. Greece survived the economic crisis because the European Union and the IMF bailed the nation out.

July 11, 2019National debt is a ‘ticking time bomb‘: Sen. Mike Lee

SEP 12, 2019, Our national ticking time bomb, By BILL YEARGIN
SPECIAL TO THE SUN SENTINEL | At some point, investors will become concerned about lending to a debt-riddled U.S., which will result in having to offer higher interest rates to attract the money. Even with rates low today, interest expense is the federal government’s third-highest expenditure following the elderly and military. The U.S. already borrows all the money it uses to pay its interest expense, sort of like a Ponzi scheme. Lack of investor confidence will only make this problem worse.

JANUARY 06, 2020, JANUARY 06, 2020, National debt is a time bomb, BY MARK MANSPERGER, Tri City Herald | The increase in the U.S. deficit last year was about $1.1 trillion, bringing our total national debt to more than $23 trillion! This fiscal year, the deficit is forecasted to be even higher, and when the economy eventually slows down, our annual deficits could be pushing $2 trillion a year! This is financial madness.there’s not going to be a drastic cut in federal expenditures — that is, until we go broke — nor are we going to “grow our way” out of this predicament. Therefore, to gain control of this looming debt, we’re going to have to raise taxes.

 

In Summary
The U.S. government is Monetarily Sovereign. It has the unlimited ability to create its own sovereign currency, the U.S. dollar.

The government has absolute control over all aspects of the dollar, including its value. Unlike state and local governments, and unlike businesses, and unlike the euro nations, and unlike you and me, the federal government can service any size debt without collecting a penny of income.

Yet, tick, tick, tick, the fake debt time bomb of terror keeps on ticking. The only question, “How many years of proven-wrong fear-mongering will you, the public fall for before the debt charlatans are excised from the news?”

By now, after 80 years of false warnings, you should have learned that phony concerns about the federal debt constitute the biggest con job in American history — and it still is running. And you still are buying it.

The fundamental purpose of this con job is to keep you from asking for benefits from the federal government — benefits the rich already receive, but because of Gap Psychology, don’t want you to have.

Is it possible that the rich really can fool all the people all the time?

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

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The most important problems in economics involve:

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

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

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

Ten Steps To Prosperity:

1. Eliminate FICA

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

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

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

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

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

9. Federal ownership of all banks

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

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

MONETARY SOVEREIGNTY

If you believe the latest lies from the “Campaign to Fix the Debt,” they own you. Thursday, Jun 29 2017 

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

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It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders..
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Here is the complete text of an Email I received from the “Campaign to Fix the Debt” (CFD). Do you believe what it says?

The national debt continues on a dangerous and unprecedented path according to updated projections today from the nonpartisan Congressional Budget Office (CBO).

Why is it “dangerous”? They never say.

CBO’s latest Budget and Economic Outlook projects debt held by the public to grow from $14.3 trillion (77 percent of of the economy) today to $25.5 trillion (91 percent of the economy) by 2027. CBO also projects trillion-dollar deficits to return by 2022.

That means the federal government will pump $11.2 trillion stimulus dollars into the economy by 2027. Why is this a bad thing? Again, the CFD never says.

They merely quote big numbers hoping to shock you, but not explaining why you should be concerned.

The following is a statement by Campaign to Fix the Debt Co-Chairs Governor Ed Rendell and Senator Judd Gregg:

“We are entering uncharted waters. Debt has only been this high as a share of the economy one other time in our history—just after World War II.

But unlike then, it is not projected to head back down. Instead, CBO confirms it is rising rapidly without end toward record levels.

The federal debt is nothing more than the total of deposits in T-security accounts at the Federal Reserve Bank. In short, the so-called “debt” is bank accounts, similar to savings accounts.

The total of deposits into these bank accounts is scheduled to reach record levels. Why is an increase in deposits at the Federal Reserve Bank a bad thing?

With deficits rising at alarming speeds, Congress needs to start applying the brakes, not stepping on the gas.

The U.S. federal government is Monetarily Sovereign. It created its sovereign currency, the dollar, from thin air, back in the late 1770’s. Before then, there were no U.S. dollars.

Not only did it create an arbitrary number of dollars from nothing, but it gave those dollars an arbitrary value in grams of silver.

In the years that passed, the Monetarily Sovereign federal government repeatedly increased the number of dollars in circulation, and repeatedly changed the value of those dollars, relative to silver and to gold.

Today, the federal government continues to create an arbitrary number of dollars from nothing, and it continues to set the arbitrary value of those dollars, thus controlling inflation.

Our debt cannot remain on its current path, and the longer we wait for a comprehensive plan, the graver the choices become. Rising debt will slow wage growth, increase interest spending, limit flexibility to respond to new challenges, and diminish policymakers’ ability to invest in the economy and maintain the social safety net.

Let’s examine these ridiculous comments:

“Rising debt will slow wage growth.” How will adding stimulus dollars to the economy slow wage growth? In fact, it will do the opposite. Taking dollars from the economy slows wage growth.

“Rising debt will increase interest spending.” That is true. Increasing deposits in T-security accounts will increase interest payments. But why is that bad? The federal government and the Federal Reserve Bank (FRB) never can run short of dollars.  Even if all federal tax collections were $0, the government and the FRB could continue creating new dollars, forever. Those new dollars are what stimulate economic growth.

“Rising debt will limit flexibility to respond to new challenges.” Why will increased deposits in T-security accounts at the FRB limit flexibility to new challenges? No reason is given because the statement is utter nonsense. The FRB accepts as much or as little in deposits as it wishes.

“Rising debt will diminish policymakers’ ability to invest in the economy.” Again, utter nonsense. Why would deposits in the FRB limit policymakers in any way?  

“Rising debt will diminish policymakers’ ability maintain the social safety net.” This comment is the most outlandish lie of all, because the CFD’s historical suggestion is to cut such programs as Social Security, Medicare, Medicaid, and other elements of the social safety net.

So let us not endure any more crocodile tears about the social safety net from the very people who wish to destroy the social safety net.

We urge Congress to immediately put together a plan to address our unsustainable debt and not pursue policies like huge unpaid for tax cuts that will only make the problem worse.

As always, they don’t explain why bank deposits are unsustainable.  But let us address the lie about tax cuts.

Unlike state and local taxes, federal tax collections disappear from the money supply the instant they are received. There is no measure of the nation’s money supply that includes dollars received by the U.S. Treasury.

The reason is quite simple: Because the Treasury retains the unlimited ability to create dollars, there is no logical reason to measure how many dollars the Treasury has. In essence, the Treasury “has” infinite dollars.

Because tax dollars disappear from the money supply, they are destroyed upon receipt. They no longer exist.

Thus tax increases reduce the money supply, and tax cuts increase the money supply. And increases in the money supply stimulate economic growth.

The CFD uses the nonsense phrase, “unpaid for tax cuts.” Because federal taxes are destroyed upon receipt, they actually pay for nothing. Unlike state and local governments, the U.S. federal government neither needs nor uses tax dollars.

People pay for taxes. No one ever “pays for” tax cuts.

There is no free lunch. The choices are hard and will take real leadership, but the good news is it can be done.

There is, in fact, a “free lunch.” The federal government creates dollars freely, arbitrarily, and with no need to ask anyone for assistance. (See: Lunch Really Can Be Free)

With pro-growth tax reform and policies to shore-up our unsustainable entitlement programs, we can put the debt back on a downward path and unlock our economy for future generations instead of saddling them with mountains of debt.

” . . . unlock our economy for future generations instead of saddling them with mountains of debt.” This is a bold faced lie. Future generations are not liable for the deposits in the Federal Reserve Bank. Federal tax collections do not pay for those bank deposits.

But notice how the CFD reveals its true motives when it talks about “unsustainable entitlement programs.” They want to cut Social Security, Medicare, Medicaid and other programs for the poor and middle classes. Remember, these are the guys who were shedding those crocodile tears about the social safety net.

Finally, why does the FCD repeatedly lie about the so-called “federal debt” (deposits in T-security accounts)? Look up their steering committee and you’ll see some familiar names:

Erskine Bowles, Co-Chair, National Commission on Fiscal Responsibility and Reform
Sen. Alan Simpson, Co-Chair, National Commission on Fiscal Responsibility and Reform

Remember them? Their National Commission created the notorious “fiscal cliff” that almost ruined the American economy. They continue to preach the same old austerity, that has destroyed the economy of every nation that has practiced it.

And there’s: Michael Peterson, President & COO, Peter G. Peterson Foundation, which is one of the nation’s primary “take-from-the-poor; give-to-the-rich” groups.

And no “cut-benefits-to-the-poor organization would be complete without Maya MacGuineas, President, Committee for a Responsible Federal Budget (CRFB), a mirror group for reverse Robin Hood CFD.

Bottom line, CFD, CRFB, Peterson Foundation, and other of their ilk work for the rich in their ongoing efforts to widen the Gap between the Rich and you.

If you believe the lies these people tell you, they will own you.

Rodger Malcolm Mitchell
Monetary Sovereignty

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The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

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 (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich can afford better health care than can the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE A MONTHLY ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA (similar to Social Security for All) (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB (Economic Bonus)) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONE Five reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefitting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE FEDERAL TAXES ON BUSINESS
Businesses are dollar-transferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the federal government (the later having no use for those dollars). Any tax on businesses reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all business taxes reduce your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and business taxes would be a good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

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

MONETARY SOVEREIGNTY

More ignorance from Peter Suderman Thursday, Jul 28 2016 

If you’ve not already read it, or don’t remember it, I invite you to read the January 31, 2015 post: Mr. Suderman, what exactly is the “Welfare State”?.

The article discussed how Suderman, a film critic and Reason.com editor, claimed that benefits to the middle-classes and the poor constitutes a “welfare state.”

(All those tax breaks and other benefits to the rich are just fine, thank you.)

In Suderman’s latest demonstration of abject ignorance about economics, he wrote:

Neither Clinton Nor Trump Would Reduce the National Debt
Clinton’s policies would increase the debt less—but would still leave the budget on an unsustainable path.

Ah, the old “unsustainable” federal debt lie.

By way of reminder, we showed you the annual claims beginning in 1940 (Yes, 1940!) that the federal debt was a “ticking time bomb.”

Well, believe it or not, 76 years later, that ole’ bomb still’s a’tickin.’ It more recently morphed into a “looming collapse,” and now is “unsustainable.”

There is nothing wrong with being wrong. We all do it on occasion, though being wrong consistently for the past 76 years might give one pause, or at least a bit of humility.

No pause or humility for Suderman, however. He’s still shoveling the same old Tea Party bullsh*t.

When he, or others of his ilk, say the “debt” is “unsustainable, notice they never, ever say what “unsustainable” means.

Does it mean the government can run short of dollars, its own sovereign currency it originally created from thin air?

Or does it really mean, the very rich hate that dollars are being spent to narrow the Gap between the rich and the rest?

Well, anyway . . .

Here is a note to Peter: Please allow me to direct you once again to: Monetary Sovereignty, the key to understanding economics, and to: Lunch really can be free, so that at long last you may begin to understand Monetary Sovereignty and the reasons why the so-called federal “debt” is not, and never will be, “unsustainable.”

It’s not even a “debt.”

In the event Peter doesn’t see this post, will someone please contact him and relieve him of the misery of his misunderstandings.

And while you’re at it, please contact your political representatives and local media, so they too can stop disseminating the Big Lie.

You will do your nation and your family a real service, as we may stop talking about unnecessary and harmful reductions in Social Security and Medicare benefits, and about a disastrous reduction in federal deficit spending.

No, the federal deficit and debt are not “unsustainable, ticking time bombs.” No, federal spending is “not funded by federal tax payers.” No, the government cannot “go broke,” and no, the government does not need to “live within its means.”

What you have been hearing from the Suderman’s of the world is a lie, designed to keep you in financial bondage.

The sooner you understand that, and encourage adoption of the Ten Steps to Prosperity, the sooner you can free yourself.

Rodger Malcolm Mitchell
Monetary Sovereignty
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Ten Steps to Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich afford better health care than the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE AN ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefiting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-tranferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be an good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.

Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

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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