Bits of Reality

The following is a summary of my posts for 14.02.2017. Feel free to use them to get the word out.

On Where Dollars Come From:

“Dollars are not a rare commodity created by the Earth, the universe or even God. Dollars are man-made monetary instruments. They are just a ‘money thing’ which the issuer places a face value upon, and then agrees to take it back as payment for something. The sole authority to manufacture dollars rests with the federal government alone.”

“Let me see here: you readily admit that the US Government shreds paper dollars when they become old and worn out, but you refuse to believe that the US Government is the entity that replaces those shredded dollars. Something’s not right with your thinking there.”

“What’s really bizarre is that well over 200 years ago, the founding fathers authorized the US Government to be the exclusive monopoly issuer of US dollars, US Consitution, Article 1 Section 8, and today, people find the suggestion that all US dollars come from the US Government to be a ‘radical’ notion.”

“Thinking that all dollars come from the private sector, is the same as finding a rock in the street and then thinking that all rocks come from the street.”

On Taxation/Wage Suppression:

“The less important a monetary instrument is to a populace, the greater the chance that the people are willing to believe that the issuer destroys the instrument upon receipt. Explanation of Concept: Because dollars are the supreme monetary instrument that everyone uses, you simply don’t wish to believe that the federal government destroys them when it taxes. In other words, dollars are ‘precious’ to you, and you refuse to believe that the federal government would destroy something so ‘precious’. But a coupon for Tide? No problem there.”

“Why we all use the federal government’s dollars is not a hard thing to grasp. Rather than beating you over the head with a club and dragging you off to participate in an economy that the government wants to operate, the federal government simply taxes you and then gives you tax credits (dollars) to pay the tax. Since you need to pay the tax with dollars to avoid the punishment for not doing so, you then go out and try to obtain dollars through work, business ownership, or other endeavors. By taxing you, the federal government makes you engage in economic activity using the federal government’s dollar. The point of this, from the federal government’s perspective, is to provision itself with goods and services with its own dollars that it creates, and in doing so, it ensures that it cannot go broke provisioning itself now or in the future.”

“Taxing the rich is not punishing success. However, wage suppression is preventing success.”

“The lower your income falls, the more of your savings you will have to spend. This is the point of the federal government taxing the rich; not revenue. If you want the tax dollars of the rich paying for stuff, ask your state and local governments to tax the rich.”

“The point of taxing the rich is not to obtain needed revenue for the federal government. Nor is it necessary to fund universal healthcare. The point of taxing the rich is to force them to spend, rather than to save.”

“Limiting what we can achieve to what the rich can be made to pay in taxes is simply ignorant. Collect $2 trillion from the rich, then only allow the federal government to spend $2 trillion. Why? The only reason why you were able to collect the $2 trillion from the rich is because the federal government put that $2 trillion into the economy to begin with. Collect $2 trillion from the rich if you want, but deficit spend $30 trillion more if it is necessary to achieve what must be done. What is it that you do not understand here?”

“Look: To you, the dollar is precious, as it allows you to buy food, clothing, a home and all the things necessary to stay alive. From the federal government’s perspective, the dollar is nothing more than a “get out of jail free” card for US citizens. When the federal government deposits dollars in your account, it is crediting you with the ability to pay your federal taxes now, and also, at some future point. If you have more than enough dollars to pay your federal taxes, you have the ability to save dollars and you can have nice things. If you have the ability to save far, far more than you need to pay federal taxes, you can have a lot of nice things. Get it?”

On The National Debt:

“Put your dollars into a CD at a bank, and though the bank can go broke, you feel safe and comfortable. Let people put their dollars into a savings account with the federal government, which cannot go broke, by purchasing a treasury bond and you panic, hiding in the dark while peeping out of the blinds, waiting for the apocalypse.”

On Treasury Bonds Being an Anachronism:

“You know how back in the day, cars used to have these little handles on the front and you would crank them by hand to start the engine? Now, I want you to imagine installing one on the front of a modern car. Most of you would say, ‘Why Ellis? What’s the point in that? A hand crank serves no real purpose today.’ And so it is with US Treasury bonds. The US Government selling US Treasury bonds is the same as you installing a hand crank on a Ferrari.”

On Inflation Scaremongering:

“When it comes to federal deficit spending, the inflation argument is purposefully designed to keep you thinking that if everyone has enough money to survive, everyone will die.”

On Unemployment:

“Picture a concrete bridge, if you will, and we will assume that it is old and unstable, because the stabilizers are gone. Now then, at the start, here and there, small chunks of concrete fall away from the bridge. As more chunks begin to fall away, the bridge becomes a bit more unstable. Soon enough, because of that instability, chunks begin to fall away faster and faster, until a section of the bridge collapses. From there, in a cascading effect, the entire bridge gives way like dominoes. So it is how one unemployed person creates another unemployed person, and without welfare, food stamps and unemployment insurance which are automatic stabilizers for the economy, the result is mass unemployment and a deep recession.”

“The only way that the private sector could end involuntary unemployment is if it were the source of dollars. But this is not so, therefore, any notions that the private sector is in charge and can achieve such a feat are also not so.”

“If you wish to abolish involuntary unemployment forever, you have to speak to the federal government.
The private sector is utterly helpless in this endeavor.”

“There is nothing ‘natural’ about unemployment and poverty. These are man-made phenomena; induced by choice and also eradicated by choice. Neither nature nor the private sector determines the unemployment and poverty rates; the federal government does, precisely because it is the monopoly currency-issuer.”

“For the US, UK and Australia to name a few nations, currently, all economic turmoil is a man-made phenomenon and entirely unnecessary. There is nothing ‘natural’ about it.”

On Mainstream Arguments Against Better Wages:

“The funny thing that nobody ever thinks about when it comes to the plight of small business and wages is history. Wages were far better in the 1950’s than compared to today’s wages. Are you claiming, then, that there were very few small businesses in existence in the 1950’s?”

“Did you spend some or all of your last paycheck? If so, you’ve proven conclusively that raising the minimum wage will not cause the unemployment rate to rise.”

“Wages are both cost and demand. Arguing that wages are nothing but a cost to business, is to argue that workers never spend their paychecks.”

On Federal Deficit Spending:

“If I suggest that we expand the federal deficit, the question asked afterwards should always be, ‘To what purpose will you direct the spending?’, and not, ‘Oh my good gravy and sweet Jesus almighty in Heaven: How are you going it pay for that?!?!?!?'”

“When we say that the federal deficit cannot be cut, but rather, it must be expanded, we are not simply providing you with our opinion. If you consider it as an opinion, then you are unfit to serve in any national office, whether that be the federal government or as the chairperson of a political party. This statement is also not subject to opinion.”

“Anyone who asserts that the federal deficit must be cut, is not yet properly trained and fit to serve in any capacity which their influence and decisions directly or indirectly affects the people.”

On Political Parties and Economic Narratives:

“A car’s fuel tank has two extreme points: Full and empty. Overfill it and gas spills all over the place making a dangerous mess. Let it go empty and the car wont start. Asserting that, as a political party, we must bring together many different opinions about the economy and federal spending and over the next five years, develop a plan that all can get behind, is the same as a bunch of people standing at the gas station with an empty car and spending five years developing a plan to put gas in the tank which all can get behind.”

“On the one hand, Republicans and Democrats agree that everyone should be able to legally buy whatever they need or want. But on the other hand, Republicans and Democrats don’t want everyone to have enough dollars to legally buy whatever they need or want.”