Potomac Oracle
Potomac Oracle's JournalBernie may not be a GOOD THING!!!
Ok, Bernie will fight to preserve Social Safety net programs. But he does so using false premises. He says stuff like this..."...and does not balance the budget on the backs of working people, the elderly, the children, the sick and the poor.”
The underlying assumption is that there needs to be a trade off to get to a balanced budget. He also assumes "deficit spending" must be held to a minimum so that our grandchildren won't be burdened. He further implies that Federal taxes are already to high and cannot be increased to fund Social Safety net Programs and, therefore, there must be, negotiated adjustments to benefits to reduce program costs.
NOTHING COULD BE FURTHER FROM THE TRUTH.
We need Bernie to act as if he understands monetary sovereignty.
"Incidence of monetary sovereignty[edit]
Currently, nations such as the USA and Japan, 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.[2]
<b>Other monetarily non-sovereign entities</b>
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:
1. Do not have the unlimited ability to create their sovereign currency
2. Can run short of currency (unlike Monetarily Sovereign governments, which cannot run short of their sovereign currency)
3. Require income in order to pay their bills (unlike Monetarily Sovereign governments, which require no income). Thus, taxing, borrowing and austerity (deficit reduction) are not necessary though for political reasons, a Monetarily Sovereign nation may borrow and levy taxes and enforce austerity."
http://goo.gl/ymq71S
Bernie has to understand that the Federal government NEVER NEEDS TO TAX OR BORROW TO SPEND. There is no need for budget trade offs as long as Congress appropriates funding. That's all that's needed for the Federal Government to complete the act of spending. Yes, an appropriation...not tax revenue.
Taxation in our system manages inflation...it drains some of the money out of our economy when it appears to be overheating.
Bernie has to understand that until the Federal gov spends its first fiat dollar as payment for goods and services, there are no funds for commercial banks to lend, or for anyone to pay the tax demanded by the state.
Bernie needs to act as if he knows these things instead of mouthing the lies about balancing the budget. Bernie needs to understand that deficit spending adds resources to the economy. Cutting spending reduces net savings in the economy and prolongs recessions.
So yah, it's great he's on the Budget Conference Committee, however, it will be tragic to have him concede to Republican demands for compromise on spending when the Federal government can never run out of its own currency.
He needs an economic adviser who thoroughly understands the concept of Monetary Sovereignty.
It's So Simple to Fund America If Only...
The guys at the very top of the food chain know they can spend without fear of going broke. It's only those dependent on wages who don't understand this. If only the masses understood and acted as if they understood monetary sovereignty. The startling outcome would be revolution forcing Congress to legislate appropriations which fund public purpose. All anyone need do is Google "Monetary Sovereignty"...To wit;
https://en.wikipedia.org/wiki/Monetary_sovereignty
"Incidence of monetary sovereignty:
Currently, nations such as the USA and Japan, 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.
<b>Other monetarily non-sovereign entities</b>
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:
1. Do not have the unlimited ability to create their sovereign currency
2. Can run short of currency (unlike Monetarily Sovereign governments, which cannot run short of their sovereign currency)
3. Require income in order to pay their bills (unlike Monetarily Sovereign governments, which require no income). Thus, taxing, borrowing and austerity (deficit reduction) are not necessary, though for political reasons, a Monetarily Sovereign nation may borrow and levy taxes and enforce austerity."
-----------------------------------------------
The U.S. levies Federal taxes to manage inflation, income distribution and to force acceptance of fiat currency. It does not tax to then spend. Proof...http://goo.gl/paGQBy
We can rant all we want about the Federal Government's spending Until we, as voters and tax payers force Congress to repeal debt ceiling legislation and regressive tax policy like the payroll tax we will always be at the dirty end of the legislative stick.
Profile Information
Member since: Tue Aug 14, 2012, 08:52 PMNumber of posts: 3
