Many economists want poverty never to be cured. Here’s why.

Many economists want poverty never to be cured. Here’s why: The single most important question in economics is: “Can the federal government run short of money?” Most economists will answer something on the order of, “The government always can print more dollars.” While technically that is not correct — the government prints dollar bills, which are titles to dollars, not dollars in themselves — the concept is correct. The U.S. federal government cannot unintentionally run short of dollars. With that basic truth in mind, logic dictates that:

1. The U.S. government does not rely on your tax dollars. It simply could “print” all the dollars it spends, and in fact, that is what it does.
2. Therefore, there is no financial need to levy federal taxes.
3. There is no financial need for the federal government to run a balanced budget.
4. Federal deficits and debt are not a burden on the federal government or on federal taxpayers
5. Since the federal government cannot unintentionally run short of dollars, no federal agency can run short of dollars unless the federal government wants that to happen.
6. Medicare and Social Security are among the hundreds of federal agencies that cannot run short of dollars unless Congress and the President want that result
7. Therefore, the so-called Medicare and Social Security “trust funds” have no financial purpose. The federal government can and does support all federal agencies by creating dollars.
8. Medicare for All, Social Security for All, College Tuition for All, Housing Support for All, Food for All, etc. are well within the federal government’s ability to fund without levying a penny in taxes.

If you can find an error in the above logic, please let me know.

A growing economy requires a growing supply of money. Federal deficits pump money into the private sector, aka “the economy,” and by formula, increase economic growth (GDP=Federal Spending+Non-federal Spending+Net Exports.) You and everyone else pays federal taxes with dollars taken from the M1 money supply measure  which includes currency that is in people’s pockets or in checking accounts. There no money supply measure for how many dollars the federal government has because the government has the infinite ability to create dollars. It has infinite supply.

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

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

Quote from Ben Bernanke when he was on 60 Minutes: Scott Pelley: Is that tax money that the Fed is spending? Ben Bernanke: It’s not tax money… We simply use the computer to mark up the size of the account.

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

Thus, all those M1 money supply tax dollars disappear from any money supply measure. They effectively are destroyed. The federal government creates new dollars, ad hoc, every time it pays for something. And as for the myth that federal deficit spending causes inflation, look at this graph:

IF you’re looking for something that does correspond to inflation, look at this graph.

Your major sources of information, the media, politicians, and university economists have been bribed to believe and to disseminate the Big Lie that federal finances resemble personal finances. In fact, the two could not be more different.

1. The federal government is Monetarily Sovereign; you, the states, counties, cities, and businesses are monetarily non-sovereign.
2. The federal government can create unlimited numbers of dollars; you, the states et al, cannot create unlimited dollars
3. The federal government destroys all the dollars it receives; you do not.
4. The federal government never unintentionally can be insolvent; you can become insolvent if you do not have sufficient dollars to pay your creditors.
5. The federal government never borrows dollars; you might have occasion to borrow.

The federal government can cure inflations, not by raising interest rates (which exacerbates shortages), but by spending to alleviate shortages. For instance: To lower the price of oil, the government could financially support oil exploration and processing, and/or invest in renewable energy. To lower the price of food the government could financially support farming and food production R&D. To ease the price of labor the government could eliminate the FICA tax while providing Medicare for All (relieving businesses of this financial obligation). To lower the prices of electronics, the government could invest in computer chips and electronic R&D. In short, reducing inflation actually requires additional government spending, not less. Any time you read or hear someone equating federal finances with personal finances, you will know they are lying or ignorant about economics. Similarly, any time you read or hear someone saying federal debt or deficits are “unsustainable,” they too are lying or ignorant. If ever you have played the board game, Monopoly, you know the Bank mimics the federal government in that it cannot run out of money. By rule, it is Monetarily Sovereign. The players comprise the “economy,” and they do not need to worry about the Bank’s deficits or its debt being “unsustainable.” The Bank always is able to pay $200 for passing “GO.” If you find Monetary Sovereignty puzzling, just think of Monopoly. That may help you visualize the reality of the U.S. economy. The purpose of the Big Lie is to widen the Gaps between richer and poorer, and more specifically, between the very rich and the rest of us. Economist charlatans want poverty never to be cured because the cures would reveal their ignorance, deception, and/or their receipt of bribes from the rich. 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.

MONETARY SOVEREIGNTY