#bernanke

[rodgermalcolmmitchell]

Sending your money to the federal government is like pouring your dollars into the toilet

The federal government is “Monetarily Sovereign.” That means, it creates all the money it spends by pressing computer keys. It never, never, never can run short of dollars. Even if the federal government didn’t collect a single penny in taxes, it could continue to spend forever. Who says so? Fed Chairman, Alan Greenspan: “A government cannot become insolvent with respect to obligations in its…

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[rodgermalcolmmitchell]

Six Truths You May Know That Your Friends Don't

Here are truths you have learned that your friends do not know, do not understand, and, being unaware of the facts,  will forcefully deny: 1. The U.S. federal government is Monetarily Sovereign. That means it generated its first revenue by passing laws. It created, from thin air, as many dollars as it wished and gave those dollars whatever value it wanted. The government arbitrarily valued the…

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[rodgermalcolmmitchell]

The "unsustainable" federal debt

If you type “unsustainable federal debt” into your search bar, you will see this: (Try it) Implications of Unsustainable Debt1. Economic Growth Risks: Rising debt levels can lead to slower economic growth as more government resources are allocated to interest payments rather than productive investments.2. Increased Borrowing Costs: As debt accumulates, the government’s borrowing costs may rise,…

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[rodgermalcolmmitchell]

What do you get when you blend economic incompetence, laziness, and malevolence? Ignorance of Monetary Sovereignty

Uh, 1 + 1 = uh, gimme a second. Imagine you were in charge of the advanced mathematics department at a university. You would be expected at least to understand arithmetic. Similarly, if you were the Secretary of the U.S. Treasury, Chair of the Federal Reserve, or President of the United States, you should understand what former Chairs seem to know, i.e., the difference between a Monetarily…

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[rodgermalcolmmitchell]

AARP accidentally admits the government doesn't need FICA

Your benevolent friend. The AARP is the self-anointed protector of the aged. Its website says: “AARP represents the needs of the more than 100 million older Americans with lifestyles and political views as diverse as any group in the United States. “We concentrate on the issues most important to those in the 50+ community as they age: economic security; health care; access to affordable, quality…

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[rodgermalcolmmitchell]

A Libertarian tells "the truth" about federal debt.

What follows is an article by a Libertarian, interspersed with a few whiffs of reality. The national debt is over $34 trillion. It’s time to tell the truth about the U.S. government’s finances Story by Libertarian Alvaro Vargas Llosa Yes, Mr. Vargas Llosa, it is time to tell the truth about government finances. Some might say, “Well, past time. Sadly, your article does not do it. The purpose of…

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[rodgermalcolmmitchell]

Translation of what you were told last year

Here is an article from last year, expressing the common sentiment. I’ve translated it for you so you can evaluate that common sentiment. The US is paying a record amount of interest on its debt. It’s only going to get worse By Tami Luhby, CNN, Tue February 14, 2023 Translation: The US is pumping a record amount of growth dollars into the economy. It’s only going to get better. Powell urges…

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[rodgermalcolmmitchell]

The single most misunderstood and misused word in economics

The word is “debt.” Virtually everyone believes they know what it means—I assume you do—but virtually everyone, including economists, is confused by the term. Here is a dictionary definition: Debt is an obligation that requires one party, the debtor, to pay money or otherwise withheld from another party, the creditor. Debt may be owed by a sovereign state , country, local government, company,…

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