Howard, thank you for approving me for this group. Republicans and Tea Party types have been successful with their lies about deficits and debt, taxes and spending so much so that many Democrats and Progressives buy into the false premise that America can and will soon be broke, insolvent or run out of money. Nothing could be further from the truth. I believe combating that Big Lie is one of the keys to defeating Republicans. We not only need votes we need ideas and concepts that are irrefutable in a common sense world. We Can Fighting Republicans with Great Axioms. A critical premise Liberals and Progressives must learn is that America is MONETARILY SOVEREIGN. en.wikipedia.org/wiki/Monetary_sovereignty The major take away from this fact is that the Federal government does not need to tax and borrow to spend. It does those actions for other reasons. If you take a few moments to read these few links you will know more about the fundamentals of modern economics than is now taught at major universities and you will be armed with arguments that destroy the Republican attack on Americas fundamental safety net policies and programs, and much else; health care, infrastructure rehabilitation, etc. As long as liberals and progressives, mistakenly, buy into the neo-con, neoliberal austerity meme there will never be substantive economic or social change in America. It takes a growing money supply for a nation to grow. en.wikipedia.org/wiki/Sectoral_balances. See the graph below. When the Federal gov is in deficit the private sector has a surplus of net financial assets. Without those net assets in the private sector we would approach recession/depression. A fundamentally irrefutable stratagem to deal with Republicans and Tea Party supporters is to ask them, How can our Federal government go broke, spending for public purposes, when it is monetarily sovereign (MS)? If they understand the question theyll mouth their screed about hyperinflation (Wiemar/Zimbabwe) . Just tell them we cant hyperinflate unless there are massive commodity shortages as there were in Wiemar and Zimbabwe. Or, you can zap them with were at 23% unemployment, income growth is stagnant, were operating at less than full capacity, wheres the income/ consumption coming from to have too many dollars chasing too few goods? Moreover, MS means our Federal government does not need to tax to spend: J.D. Alt presents a laymens guide to government currency creation, spending ,taxation and debt/borrowing. (neweconomicperspectives.org/2014/01/diagrams-dollars-modern-money-illustrated-part-1.html) The Federal government taxes for political and social but not financial reasons. Thats because our government creates our currency by fiat. Its not backed by gold or silver, just the full faith and credit of the government and 99.9% of it is created by computer keystrokes. In the real world of government expenditures all the Administration needs to complete the act of spending is an appropriation. It never needs to tax or issue bonds. The axiom which follows is that the Federal government must spend before it can tax. It is not the other way around. 1. Heres an experts presentation: truth-out.org/news/item/20912-loathsome-wall-street-deficit-hysterics-blame-the-old-and-sick-not-us-part-1 2. Heres the definition of monetary sovereignty: Powers and evidence of monetary sovereignty Legal tender The state alone is empowered to specify the media, called legal tender, which may be offered and must be accepted for the discharge of any debt. Issuance and retirement The state alone is empowered to control, either directly or through institutional and regulatory mechanisms, the issuance and retirement of the legal tender. Incidence of monetary sovereignty Currently, nations such as the USA and Japan, Norway, Singapore, Australia, Canada, China which have autonomous central banks and borrow in their own currencies are said to exercise a high degree of monetary sovereignty. On the other hand, the European Union nations, have ceded much of their monetary sovereignty to the European Central Bank. Other monetarily non-sovereign entities In the United States, a Monetarily Sovereign government, there exist many monetarily non-sovereign entities: villages, cities, counties, states, businesses and individuals. None use their own sovereign currency, so having no sovereign they: Do not have the unlimited ability to create their sovereign currency Can run short of currency (unlike Monetarily Sovereign governments, which cannot run short of their sovereign currency) Require income in order to pay their bills (unlike Monetarily Sovereign governments, which require no income). THUS TAXING AND BORROWING AND AUSTERITY (DEFICIT REDUCTION) ARE NOT NECESSARY though for political reasons, a Monetarily Sovereign nation may borrow and levy taxes and enforce austerity. en.wikipedia.org/wiki/Monetary_sovereignty
Posted on: Mon, 01 Sep 2014 15:54:07 +0000
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