Archive for the ‘Central Bank’ Category

JOB GUARANTEE, UBI, Be careful what you wish for.

October 1, 2018

JOB Guarantee, UBI, ‘Trickle Down’ all have the same motive-“Sustain workers to Work. Period.

https://rwer.wordpress.com/2018/08/02/another-day-older-and-deeper-in-debt/#comments

ASK, ” What has decades of wealth and abundance gotten you ? ”

ANSWER , “ANOTHER DAY OLDER, DEEPER IN DEBT.”

“NO MORE ! NO MORE ! “

There are but two choices.
1.Continue in this legislated Servitude, or
2. Legislate Prosperity “For the People”.
Divided, We the People shall fail.
United, We the People shall prevail to govern; not be governed.

It’s TIME TO PRODUCE SYSTEMIC CHANGE-

“The Monetary System Impedes the Flow. “… (U)nless and until the barriers that oppose the free and full distribution of wealth from the producer to the ultimate user and consumer are broken down and the flow of wealth again fulfils the purpose for which men have striven to create it Since, in all monetary civilizations, it is money that alone can effect the exchange of wealth and the continuous flow of goods and services throughout the nation, money has become the life-blood of the community, and for each individual a veritable licence to live at all. The monetary system is the distributory mechanism, and this reading of history therefore supports up to the hilt the conclusions of those who have made a special study of what our monetary system has become. It is the primary and infinitely most important source of all our present social and international unrest and for the failure, hitherto, of democracy.”(SODDY).

SOLUTION:

“Capitalism to be administrated for the betterment of the common good of the INDIVIDUAL while at the same time for the common good of the ENTIRE GROUP. With equality and justice for all, this new Capitalism could be one of the greatest achievements of mankind. A government that would administer this system with an HONEST CENTRAL BANK to make the money FLOW to “…help form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”

Time for American innovation to solve our problems, focus on investments-smart investments which will improve growth and pay for itself.

ASK, “WHY HAS THIS NOT BEEN DONE ?”

The answer then as now was already stated by Obama yet, he decided to give up on change and to stay with the rigged system. As Obama said (almost 7 years ago), (12/11/11 “60 MINUTES)”You can’t raise revenues by lowering taxes unless you get the money from somewhere else.” Yes, you can lower federal personal income taxes, lower federal corporate profit taxes, and lower deficit spending all at the same time. Period. It’s simple, “…get the money from somewhere else.” YOU NEED ONLY INCREASE TAX REVENUES FROM “SOMEWHERE ELSE”.

It’s Time to go from T.I.N.A. (There Is No Alternative ) to T.A.R.A. (There Are Realistic Alternatives). Increase tax revenues from ‘somewhere else’; use “THE TRUMP C.A.R.D.”,

“It’s time to rewrite the rules―to curb the runaway flow of wealth to the top one percent, to restore security and opportunity for the middle class, and to foster stronger growth rooted in broadly shared prosperity.”( Economic Nobel Laureate Joseph Stiglitz)

Millions now realize;… the economy is rigged, …the justice system is rigged, …the healthcare system is rigged, …the employment system is rigged. They are all part of an economic system that is really just a rigged political system. Fortunately, November 2016 the voters across America will be able once again to cast a revolutionary vote to “MAKE AMERICA GREAT AGAIN.”

A simple change in direction of doing something for the common bettering of all the people; individually and as a group. Begin today, together- your voices, your power will make America Great Again.

At every meeting, on every corner exercise your right, your duty to your country. Mandate that your representatives “Work For You”.

The greatest challenge to overcome will be slung at you in a million ways, with millions of cries: “It can’t be done.”, “You will put us in unbearable debt.” “We will no longer be able to sustain our sovereignty.” “We will be on the brink of catastrophe. ”

Hundreds of millions will be spent to keep the system rigged. Now, the pressure will be placed on you.

You must use your greatest weapon ever conceived – YOUR SECRET VOTE !

You have the most awesome power on earth to create change and chose your Standard Of Living.

Every two years the 99% have an opportunity to change the world. (When they vote to change the legislative branch). Every four years when they also vote to change the executive branch.
They simply need to vote for those who would really help them.
The voters must ask all candidates to pledge their vote as your voice.
“Will you pledge your vote to  ………….,if you are elected?
 Ask all to be elected-then elect only those who will pledge to ………….. !

Only 53% of the 99% is needed in the booth to end this servitude.
Prove your power, or go back to your servitude.

80% of voters can in one day change decades of rigged rules and regulations that impede their lives and their children’s lives.

“The public is expected to believe that the misfortunes that beset us are acts of God and that, though we have the science and the necessary equipment and organization to produce wealth in abundance, it is beyond the wit of man to learn how to distribute it.“Frederick Soddy.(The Role of Money. 1934)

Pledge your  VOTE : To Increase:

(1). Wages,

(2). Infrastructure and Disaster Relief,

(3). Jobs,

(4). Our Standard of Living.

Pledge your VOTE: To Decrease

(1). Federal Debt,

(2). Poverty,

(3). Inequality Gaps.

MAKE TRUMP PLEDGE “The Trump C.A.R.D.”

Trump Card- One : 

“STEP ONE: TRUMP C.AR.D.” DECREASE INEQUALITY AND POVERTY.”

“INEQUALITY and POVERTY REDUCTION PROGRAM” ( I.P.R.P. )

“Thus the wealth-wage distinction allows us to see the fatal problem with Democratic or liberal tax policy in the post War era: because taxes fall primarily on wages, redistribution, if any, has to occur from more highly paid to lower paid workers or the non-working poor. The middle class is pitted against the lower class while the upper class sits on the sidelines.This is not a recipe for social stability.

Wealth and wages have often been on separate paths throughout history, but the present trajectories point to pressing and looming social, political, and economic perils. In short and in sum, while Wealth is still winning, Wages are now losing. As Piketty and others have abundantly well documented, the rich are getting richer as capital takes a greater share of the social economic pie. Global forces such as free trade and, more importantly, automation, bring pressure on wages or eliminate the need for human workers altogether while benefiting capital. While the rich have been getting rich, wages have been stagnating.
Capital + Labor → Income = Consumption + Savings.
In words, the returns to capital (wealth) and labor (wages) come into a household, and thus constitute “income.” And whatever comes in is either spent (consumption) or not (savings), the two categories of outputs from a household.
An income tax, by definition and in theory, is supposed to tax both wealth and wages, capital and labor, the two sources of income on the left-hand side of the above relation. As the Supreme Court put it in the seminal case of Eisner v Macomber, decided in 1920: “Income may be defined as the gain derived from capital, from labor, or from both combined.”  ( The Death of the Income Tax (or, the Rise of America’s Universal Wage Tax) by Edward J. McCaffe… )

 

THE TRUMP C.A.R.D. (Capital Assets Re Distribution).

Capitalism to be administrated for the betterment of the common good of the INDIVIDUAL while at the same time for the common good of the ENTIRE GROUP.

The C.A.R.D. that will help… to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”

“The COUNTRY is controlled by LAWS. LAWS by POLITICIANS. POLITICIANS by VOTERS. VOTERS by PUBLIC OPINION. PUBLIC OPINION by the MEDIA & EDUCATION, so whoever controls MEDIA & EDUCATION, controls the COUNTRY.” ( William J. Federer, “Change to Chains”,

It is about your future and your children’s future.

It is all about your VOTE !

Anytime you enter that election booth, that time is sacred.

No matter what has been said or done you and you alone shall record history.

It is the People’s will to govern; not to be governed by political power.
Tell yourself, “This is the moment of truth. I have been pounded and battered by this rigged system;
‘enough is enough’.
Now at this moment I have the power to change this system.”

When Clinton and Obama spoke about “an attack on our basic democracy” did you ever think they could be talking about your own political party as “an attack on our basic democracy”. That your political party would usurp the power of your vote and use it for their own ‘special interest’?

“Since the 2016 election demonstrated the bankruptcy of the professional political classes and led to the election of an upstart outsider, friction between him and the establishment will continue to rock the US polity. Depending on how this relationship fares, and thus on how important it remains for him to secure his working class base for 2020, the distance between Trump’s politics of power and support will widen or narrow.”(http://www.counterpunch.org/2017/02/10/decoding-trump/)
There are but two choices.
1.Continue in this legislated Servitude, or
2. Legislate Prosperity “For the People”.
Divided, We the People shall fail.
United, We the People shall prevail to govern; not be governed.

TRUMP’s PLEDGE to you,
“Every day I wake up determined to deliver a better life for the people all across this nation that have been ignored, neglected and abandoned.” -DJT
” I will outline my full economic plan, which is completely paid for through economic growth and proposed federal budget savings. Together, our tax, trade, regulatory, and energy policies will add trillions in new deficit-lowering growth.
These are the kinds of solutions I want to bring to the White House as your President. It’s time to free ourselves from the baskets that politicians try to put us in, and instead to work together – not as Republicans or Democrats – but as Americans, to achieve real, positive results for the American people. … I call you, hard-working American Patriots who love your country, love your families, and want a better future for all Americans.
It’s time to end the rule of special interests, and to begin the rule of the American people.
It’s time to stop fighting over the smallest words, and to start dreaming about the great adventures that lie ahead.
It is time to Believe In America.
Together, We Will Make Our Country Strong Again.”

We Will Make Our Country Prosperous Again.
And Will Make Our Country Great Again For Everyone!
Thank you!” (President Trump)

Email request for more info:

THE TRUMP C.A.R.D. (Capital Assets Re Distribution).

Capitalism to be administrated for the betterment of the common good of the INDIVIDUAL while at the same time for the common good of the ENTIRE GROUP.

re “The Trump Cards”.(Affordable Healthcare) (TRILLIONS FOR INFRASTRUCTURE AND DISASTER RELIEF-while NO new money creation.)

justaluckyfool@aol.com

Basilovecchio Blog,  PO BOX 741931,  Boynton Beach, FL 33437

 

Posts are by authors of papers published in the RWER. Anyone may comment.

Home > Uncategorized > Job Guarantee Programs: careful what you wish for

Job Guarantee Programs: careful what you wish for

from Thomas Palley

Some progressive economists are now arguing for the idea of a Job Guarantee Program (JGP), and their advocacy has begun to gain political traction. For instance, in the US, Bernie Sanders and some other leading Democrats have recently signaled a willingness to embrace the idea.

In a recent research paper I have examined the macroeconomics of such a program. Whereas a JGP would deliver real macroeconomic benefits, it also raises some significant troubling economic and political economy concerns. Those concerns should be fully digested before a JGP is politically embraced.

The real benefits of a JGP

The starting point for discussion should be recognition that a JGP delivers multiple benefits. First, it ensures full employment by making available a job to all who want one on the terms specified by the program. Second, it substitutes wages for welfare benefits to workers who accept such jobs and would otherwise be on welfare. Third, it may deliver supply-side benefits to the extent that it helps unemployed workers retain job skills and avoid becoming detached from the labor force during periods of unemployment. Fourth, society benefits from the services produced by workers holding guaranteed employment jobs. Fifth, it has significant desirable counter-cyclical stabilization properties.

That said, a JGP generates some policy conflicts and it also has some drawbacks. Those conflicts and drawbacks concern macroeconomics, microeconomics, and political economy.

Macroeconomic concerns

A first macroeconomic concern is the putative cost of a JGP. This is a complex multifaceted concern. The immediate cost of a JGP will depend on the state of the economy and the state of the aggregate demand (AD) generation process. An economy with a deteriorated AD generation process, marked by a reduced wage share and increased inequality, will be prone to higher unemployment that raises the program’s cost. That speaks to the need to pair a JGP with other conventional structural Keynesian policies that remedy the causes of AD weakness. 

A second macroeconomic issue concerns financing and policy trade-offs. If government is financially constrained, policy must operate in a realm of trade-offs. Consequently, adopting a JGP may require giving up other desirable policy proposals such as increased public infrastructure investment, expanded subsidized healthcare, covering the shortfall in Social Security via general revenues, free tertiary education at public universities, elimination of student debt, or a universal basic income (UBI).

This effect of financial constraints on government explains why discussion of a JGP tends to quickly spill over into a broader discussion about the macroeconomics of public finance. JGP proponents tend to believe government is financially unconstrained and can pay for everything by printing money. After the fact, government can then readily withdraw the money it has printed by raising taxes. All of this can be done without causing financial, economic, or political disruptions or distortions. That view is identified with modern money theory (MMT), which dismisses financial constraints on policy and argues the only constraint is availability of real resources (i.e. unemployed workers or under-utilized capital).

In contrast, more conventional public finance macroeconomics argues history, economic situation, markets, and political process impose financial, economic, and political constraints on governments that are difficult to thread. Though government has the technical ability to pay for everything owing to its power to issue money, doing so in excessive fashion will provoke disruptive and distorting financial, economic, and political reactions.

The possibility of such reactions renders government’s technical ability to pay for everything an economic will-o-the-wisp. A government with a short time horizon can use its printing power to finance all its policy desires, but subsequent market reactions to budget excess will impose costs and may make the policies unsustainable. Alternatively, a government with a longer time horizon takes such future reactions into account when setting current policy, making it de facto financially constrained despite the appearance of being unconstrained.

A third macroeconomic concern is inflation. The JGP wage is a real wage, which means the JGP nominal wage must be tied to inflation. Private sector nominal wages may then likely be tied to the JGP nominal wage to maintain an appropriate wage differential. Consequently, the JGP nominal wage could start to act as a form of economy-wide nominal wage indexation. Such indexation could potentially generate an unstable wage – price spiral, particularly if the existence of a JGP aggravates distributional conflict by increasing private sector wage demands. Raising the private sector wage share may be a desirable feature, but it points to need for additional macroeconomic stabilization policy tools. That requirement is either ignored or denied by JGP proponents.

Microeconomic concerns

As regards microeconomics, there is concern related to the minimum wage aspect of a JGP. A necessary condition for the program to work is workers be willing to move from guaranteed jobs to private sector jobs when the latter become available. That requires the utility derived from a private sector job exceed that of a guaranteed employment job. The utility depends on the job package consisting of wage, benefits, and work conditions. In effect, a JGP would set a floor for employment conditions in the private sector, akin to a minimum wage, only broader. If the guaranteed employment job package is more attractive than the private sector job package, that will attract workers out of the private sector, lowering private sector output and employment. In that case, private sector employers may respond by improving their job package, which could have effects akin to a high minimum wage that prices low productivity workers out of employment.

Political economy concerns

Lastly, there are significant political economy concerns. A first such concern is the impact of a JGP on public sector unions. The distinction between government sector employment and guaranteed employment is artefactual, and both contribute to national income at cost. Consequently, there would likely be considerable pressure to lower public sector wages and benefits to the level of the guaranteed job on grounds that the work is similar. In effect, there is a high risk that a JGP could be used to open a new front for undermining public sector unions and public sector remuneration.

A second political economy concern is workfare. Not only may the JGP be used to undermine the character of public sector employment, it can also be used to undermine the right to welfare. Thus, the right to welfare can be made conditional on accepting a guaranteed employment job. In this fashion, a JGP can become a double-edged sword, cutting upward against the public sector and downward against the welfare system. That is not an outlandish speculation in the context of US political economy, where the large prison population is already being exploited to work for near-free for the benefit of politically connected labor intensive private industry.

A third political economy concern is the productivity of guaranteed employment jobs. A JGP will be sold politically to the public on grounds that JGP workers are productive. However, delivering productivity requires organizational and managerial capacity that the public sector may not have. In that case, there is a risk that such jobs become perceived as “make work”. That would play into the political economy of animus to government, and it could boomerang back in the form of politics opposed to government provision of public goods and services and opposed to macroeconomic stabilization policy.

Careful what you wish for

In sum, the debate over JGPs is fraught. Even those who support the aims of a JGP, and are favorably inclined to activist public policy, may still be wary of a JGP for economic and political economy reasons. Implementing a JGP will require political capital and the right political conditions. It might be better to use that favorable moment to introduce new policies (e.g. a UBI) and upgrade a collection of existing different policy modalities that together deliver the same or more benefits without the political economy risks.

Comments (12)Leave a comment

  1. September 15, 2018 at 1:34 am

    There is a very real social benefit that could impact the economy as well. Individuals who see their only option for making a livelihood is crime will have another option and that could radically change the inner city crime issues and over crowded jails.

  2. culturalanalysis.net

    September 15, 2018 at 3:08 am

    If JGP were finance through money-printing, under the condition that approximately the same amount of money were withdrawn from the economy through increased taxation, that would amount to funding the scheme Just through taxation. Another way, the true Cost of printing would be the increase in taxation (to prevent inflation).

    Perhaps a conditional Reduction of company taxes, on the Condition that certain number of jobs will be created and given to the long term unemployed, might be a more stable solution. If the result of this were a proportional increase in GDP, the cost (of lower taxation) could be offset dollar for dollar by the increased aggregate taxable income.

    • Calgacus

      September 16, 2018 at 5:53 pm

      Why would one want to increase tax rates to withdraw money? A Job Guarantee without increased tax rates is an anti-inflation tool by itself. Of course, as with any spending, tax revenue will increase, but probably not by the same amount spent. Unlike many other proposals, the JG is very simple. No new taxes or newt axes new conditions or anything else. Just a fixed wage job offer to everyone. Period.

      The most important thing is to think about things in the right way. The usual way is completely backward and ultimately anti-intuitive. The MMT way, after you think about it – is just the common sense that “economics” has so successfully erased. The Job Guarantee workers are subsidizing the state and society by their work, not vice versa. Job Guarantees pay for themselves. They eradicate unemployment. Unemployment is inflationary – not employment, as the Philips curve has it.

      Of course if you set the JG wage too high, then you can cause a onetime burst in inflation. But after that, it eliminates the massive waste and destruction of unemployment, that creates enormous inefficiency everywhere. The whole world has applied JG-ish policies and they are always very successful. The simpler and better designed, the more MMT-like, the better they work.

      Reduction of private taxation, depending on “private” employment etc is done already. It is a less stable and contrived, indirect solution, not really a solution at all. This appears to come from the completely historically false and theoretically, logically impossible but almost universally-held picture of a primordial “private” economy with an “intervening” government. In reality, the “private” economy is a side-effect of the government “intervention”. Again, MMT &the JG succeed far better in both theory and practice, if one just looks at them, compares them fairly and reasonably and logically.

      • Craig

        September 16, 2018 at 7:31 pm

        Why not take rationally beneficial and ethically ascendant control of our financially smothered chaotic system at the terminal expression point of all types of inflation with a 50% digital discount/rebate monetary policy at the point of retail sale and kill the two chronically problematic birds of individual income scarcity and inflation….with one policy stone?

  3. Craig

    September 15, 2018 at 4:44 am

    MMT has the mechanics of money correct as well as the belief that austerity is stupid, but their idea of a Job Guarantee is squarely within the current monetary and financial paradigm of Debt Only. Of course there’s nothing about a job guarantee that couldn’t be incorporated into the new paradigm…undoubtedly in a much smaller way for anyone who was having trouble finding purpose without putting in their 40 hrs/week, but the idea and policy is still captured by the current paradigm.

    Steve Keen is an insightful macro-economist even though he’s still unconscious of the fact that he has merely re-discovered C. H. Douglas’s cost accounting insight about the fundamental scarcity of total individual incomes in ratio to total costs/prices coming from the opposite abstract direction.

    The fact is, macro-economics is a very recent tool which lacks both historical insight regarding the operant factor of private indebtedness in the collapse of civilizations and also was born into the fully obscured nature of the current paradigm and so simply considered private money creation to be a legitimate business model instead of it obviously being a titanically costly parasite as Michael Hudson has accurately assessed. It’s also post retail sale which is currently the only legitimate end of the economic/productive process because it is where production becomes consumption, and if possession is 90% of the law possession as in consumption is 99.99% of economics.

    Economists have become so caught up in their abstractions that they have failed to recognize the paradigm changing policy insights to be derived from the digital nature of the empirical tool and invention of double entry bookkeeping. They have also not recognized the terminal expression point for any and all types of inflation and simultaneously with that fact the terminal ending point of the entire economic process as per above that enables the discount/rebate policy to cut through all of the complexity that confuses and obscures and makes the simple, but not simplistic, accomplishment of the new paradigm. No, it took a non-economist with an open mind to educate himself in heterodoxy and who had the right set of intellectual curiosities to take a superior 100 year old theory and raise its policies to the level of a very long over due paradigm change, so long term and over due that it will have multi-systemic “knock on” effects not seen since the kind of change that took place from Hunting and Gathering to Agriculture-Homesteading.

    Too bad. Too sad. But paradigm changes while being terrifically beneficial….are very unforgiving.

  4. September 22, 2018 at 8:15 am

    All these conclusions arise by accepting current cultural arrangements. These arrangements include jobs. None of the assessment makes any sense if there are no jobs. Without jobs there is no employment or unemployment. There is no need for a JGP. There are no employers of employees. And no macroeconomics, microeconomics, or political economy. This was the situation in the US prior to about 1850. None of these existed in the US. They had not yet been invented. Economists often deny the importance of history or time in economic actions, and the cultural “certainties” that underlie the economies they profess to study. They should rethink that position.

    • Calgacus

      September 24, 2018 at 11:16 pm

      “Jobs” or their obvious analogs considered from the creditary/MMT perspective are as old as humanity; they are logically equivalent to cooperation and the division of labor. They exist in all cultural arrangements. And jobs certainly existed in the US before 1850. What is more novel is the degree of monetization of the economy and the formalization of labor into jobs. This leads to unemployment because of insanely stupid ideas which I touched on above. But this formalization, rigidification is a secondary matter, which does not touch on the basics like the insanity of not having a job guarantee.

      Moderns believe that forcing some people to not do stuff = unemployment will magically make unicorns and leprechauns provide greater bounty than if all the humans who wanted to work. were allowed to work. People before the modern age rightly considered such ideas insane.

      The rethinking-urgers are the ones who should rethink and study some more history and anthropology. For instance, a job guarantee is nothing but an expression of the universal idea in gift economies of the necessity of accepting a gift, or else giving a truly grievous insult.

      • September 25, 2018 at 7:57 am

        Calgacus, work existed in America in 1850, but jobs were rare. Prior to 1850 or there about the US was still the nation preferred by Thomas Jefferson, a nation of small, independent farmers and craftsmen. This was preferred both economically and for politics. Wealth was suspect as a source for vice and for corrupting people and nations. Competition was valued as a source of innovation and efficiency. In addition, the hard-working small producers of this economic vision were thought to make ideal citizens. Uncorrupted by wealth and rendered resistant to political pressure by their economic self-sufficiency, they were able, sensibly and honestly, to recognize and promote the communal interest that should lie at the center of public policy. Citizenship and patriotism were equated with self-sacrifice, the subordination of self-interest to the greater good of the nation. Such people were not “employed.” These independent citizens worked for themselves. This vision began to fade after the Civil War in the face of industrialization and financialization. And was virtually extinct by 1900.

        In an industrialized and financialized economy, a job guarantee program may make sense, but how does it help the country beyond just the money it provides to ordinary citizens. I do not believe it helps citizens resist the corruptions of wealth or strive to promote the communal interest that ought to be at the center of public policy.

        I agree that markets’ history is in the exchanging of gifts. Your example is, I believe part of a larger generality. Grievous insults result not just from rejecting a gift but also in when and how to return an appropriate gift in exchange.

      • Craig

        September 25, 2018 at 8:01 am

        “…….this formalization, rigidification is a secondary matter, which does not touch on the basics like the insanity of not having a job guarantee.

        As I have posted here before a job guarantee would fit seamlessly within a wise and monetarily gifting economy. Certain MMTers who militate against a universal dividend are the ones being orthodox, still thoroughly inside the paradigm of Debt Only as the form and vehicle for the creation and distribution of money and hence obstruct the paradigm changing inversion of modern economies from individually income scarce to abundant…in ratio to total costs and so prices simultaneously produced as a flow.

        “Moderns believe that forcing some people to not do stuff = unemployment will magically make unicorns and leprechauns provide greater bounty than if all the humans who wanted to work. were allowed to work. People before the modern age rightly considered such ideas insane.”

        People before the modern age cannot not be blamed for not foreseeing the productive and leisurely potentials of high technology and the disruptive force of AI, and modern economists and pundits should ask themselves whether they want to live under the so called Mosaic curse forever and ever amen, even if these same forces would enable them to not only have the purposeful activities of employment, but also the by far larger set of self chosen purposeful activities available within an actual civilization of leisure.

        “The rethinking-urgers are the ones who should rethink and study some more history and anthropology. For instance, a job guarantee is nothing but an expression of the universal idea in gift economies of the necessity of accepting a gift, or else giving a truly grievous insult.”

        The use of the word “necessity” is the give away that such societies were propitiatory and authoritarian and so not freely gifting at all. While it is true that refusing an ACTUAL gift is by definition ungracious (in a propitiatory and authoritarian society it might actually be an expression of courage and moral and ethical strength) ….ACTUAL is the operative reality.

  5. September 22, 2018 at 12:54 pm

    Thank you Thomas Palley for a very lucid, inclusive and therefore helpful analysis. I agree with your conclusion that Job Guarantee Programmes (JGPs) are politically difficult, so that “It might be better to use [the necessary] favorable moment to introduce new policies (e.g. a UBI) and upgrade a collection of existing different policy modalities that together deliver the same or more benefits without the political economy risks.” Let us, then, consider the possibilities in these alongside the problems raised by the current facts.

    Other forms of the “real benefits” sought:

    Full employment in terms of all the jobs needing to be done being done, thus including self-care, family, locality and natural environment care as well as commercial production and distribution.

    Substituting a generous UBI for both wages and welfare subject to accepting responsibility for employing ourselves, i.e. looking after and developing ourselves, families and neighbourhoods and (not necessarily with our existing time share arrangements involving continuous schooling, work and retirement) cooperating with others in production etc., art and environmental maintenance. Responsible persons would thus feel no anxiety about receiving welfare or not making enough work for others.

    The supply-side benefits of retaining job skills can be achieved by e.g. sharing shorter working weeks and local provision of not just libraries and adult education but of craft and [e.g. car] maintenance facilities, including communal catering and recycling shops, such as many retired people already fill their spare time with.

    Society benefits from sustained cooperative employment in that our being responsible can be seen and our inadequacies remedied and/or challenged. Thinking of local banks administering UBI in the form of interest-free credit cards, achievements can be rewarded by upping credit limits and irresponsibility (e.g. not meeting shared work commitments without good reason) penalised by lowering it. That still allows normal expenditure at levels well below the credit limit available for emergencies, with the incentive being still to minimise the debt requiring to be written off by good work. The credit limit thus becomes a sign of honour, like the rosettes awarded at a flower show or John Ruskin’s Olympic “Crown of Wild Olive”.

    Counter-cyclical stabilization is automatically achieved by UBI separating incomes from incentives.

    It is most interesting going on in this way through Palley’s Macro-economic, Micro-economic and Political Economic concerns, so I hope other people will join me in doing so. There is too much in this for me to be able to share here.

  6. September 30, 2018 at 3:38 am

    We need more thorough analyses of JGP and UBI proposals like this. But would it be too much to ask to apply some real-world data to the theoretical analyses in the research paper. This is the “Real World Economics Review” after all. For example, given current tax rates, what would be the additional tax burden of funding a GJP at poverty level wages?

    We had a partial JGP during the Great Depression in the form of the WPA and the CCC, and they did some wonderful things beyond providing jobs. The CCC built buildings at my favorite State Park and many others. The WPA built my high school, and its artist-support programs provided murals that helped make the building a masterpiece of Art Deco architecture;

    But in today’s political climate, a signficant portion of the government will be dedicated to doing anything they can to introduce bureaucratic and policy distortions intended to make any JGP elements into ineffective failures. Since make-work “bulls**t jobs” don’t need people to actually show up and consume expensive cubicle space, they are likely to institute work-from-home options for certain useless job classifications. These are indistinguishable from UBI, and in combination of the inevitable injustices arising from problems distinguishing able-to-work slackers from authentically unable-to-work disabled people, might lead to a quicker replacement of any JGP by an unconditional UBI.

    • September 30, 2018 at 8:42 am

      George, here’s a little history of the WPA. Some historians called it a great success. Others called it a waste of money and a movement toward socialism in the US.

      The Works Progress Administration (WPA) is the most famous of FDR’s New Deal programs, because it affected so many people’s lives. The WPA employed more than 8.5 million people. For an average salary of $41.57 a month, WPA employees built bridges, roads, public buildings, public parks and airports. But the average salary was well below what most of the workers earned before the depression. So, the WPA did not fully restore employment or families.

      Directed by Harry Hopkins, an enthusiastic ex-social worker who had come from modest means, the WPA at its end in 1943 had spent more than $11 million in employment replacement. The WPA’s greater expense compared to direct relief payments was justified by Hopkins belief, “Give a man a dole and you save his body and destroy his spirit. Give him a job and you save both body and spirit.” Most opponents of FDR rejected this stance. In their view, only “real” work could restore a man’s dignity.

      Only 13.5 percent of WPA employees were women in the peak year of 1938. This reflected the culture of the time. Officially the WPA required women be paid the same wages as men, in practice women were often given the lower-paying activities of sewing, bookbinding, caring for the elderly, school lunch programs, nursery school, and recreational work. Ellen Woodward, director of the women’s programs at the WPA, successfully pushed for women’s inclusion in the Professional Projects Division. In this division, professional women were treated more equally to men, especially in the federal art, music, theater, and writers’ projects.

      The WPA’s arts projects were particularly controversial. But Hopkins never gave an inch to those who questioned WPA support of artists. Replying, for example, “Hell! They’ve got to eat just like other people.” WPA artists created 2,566 murals and 17,744 pieces of sculpture that decorate public buildings nationwide. The federal art, theater, music, and writing programs, while not changing American culture as much as their adherents had hoped, did bring more art to more Americans than ever before or since. The WPA program in the arts led to the creation of the National Foundation for the Arts and the National Endowment for the Humanities. Organizations conservatives have been attempting to defund entirely since the Presidency of Ronald Reagan.

      Despite the low wages paid and leaving over 5 million still without work (living on the $10 per week from state relief programs), the WPA went a long way toward bolstering the self-esteem of workers. A poem sent to Roosevelt in February 1936, in block print, read, in part,

      “I THINK THAT WE SHALL NEVER SEE
      A PRESIDENT LIKE UNTO THEE . . .
      POEMS ARE MADE BY FOOLS LIKE ME,
      BUT GOD, I THINK, MADE FRANKLIN D.”

      The WPA remains controversial today. Especially among young rightwing historians such as Niall Ferguson, Herfried Münkler, Sönke Neitzel, Dominik Geppert, Cora Stephan, Thomas Weber, Ernst Nolte and many others. Many don’t dismiss such programs as the WPA outright but claim that rightwing governments have a longer history supporting such programs and implementing them successfully.

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“Ryancare” Dead on Arrival: Can We Please Now Try Single Payer? Posted on March 14, 2017 by Ellen Brown “The Canadian plan also helps Canadians live longer and healthier than Americans. . . . We need, as a nation, to reexamine the single-payer plan, as many individual states are doing. ” — Donald Trump, The America We Deserve (2000)

March 14, 2017

“Ryancare” Dead on Arrival: Can We Please Now Try Single Payer?

Justaluckyfool, on March 14, 2017 at 9:03 am said: Your comment is awaiting moderation.

” We need to try a thrifty version of Medicare for all, with negotiated prices for drugs, hospitals and diagnostic equipment.” (Ellen Brown)
The best way to attack a problem- A Solution that fixes it.
*****
“It’s time to rewrite the rules―to curb the runaway flow of wealth to the top one percent, to restore security and opportunity for the middle class, and to foster stronger growth rooted in broadly shared prosperity.”( Economic Nobel Laureate Joseph Stiglitz)

“TAXPAYER INCOME REVENUE PRODUCING ASSETS” ( T.I.R.P.A. )
Increase……. Wages, Jobs, the Standard of Living.
Decrease…… National Debt, Poverty, Inequality Gaps.
It sounds great; but even more important, it not only pays for itself; it reduces national debt !

Time for American innovation to solve our problems, focus on investments-smart investments which will improve growth and pay for itself.

Not a bailout.
Not a cost to all the taxpayers.
Not an increase in deficit spending.
Rather a magic economic proven golden bullet.

( T.I.R.P.A. )
The FEDS made direct purchase of bank assets.The Fed has already proven that it can do this; with a profit to the US Treasury and with no increase in the debt (it is an asset purchase).
We must have Congress legislate that the Federal Reserve Bank shall make purchases of Public State Bonds For Infrastructure (PSBFI).
Each state will have as a member of the Federal Reserve a pubic state bank along with one additional member for the District of Columbia.
Each member (Public State Bank) will be entitled to issue $1 billion per electoral vote. All bonds will have the same terms and conditions and will be made available for purchase by the Federal Reserve for that year of issue.
All PSBFI’s will have a term of 20 years with the payment conditions as follows:
Each dollar face value will be sold at a twenty-five percent (25%) discount to the Fed.
There will be no interest charges.
The entire bond will have 20 equal payments due each year.
The T.I.R.P.A. BONDS will act as a line of credit: after 360 days of each annual
payment; that amount will be available to each entity with the same terms and conditions.

( T.I.R.P.A. )for Universal Healthcare
Federal government to deposit $538 BILLION in Public State Banks for its asset purchase of $674.5 Billion of State Medicare, Medicaid Relief Bonds with a term of 20 years with equal annual payments. Each state shall deem when funds are to be dispersed. The allocation shall be based upon the fair and just system: $1 billion per electoral vote. This amount will be available as a line of credit.
Ex., DC has $3 billion available ($1b X 3 Electoral votes).
THE BOND NOTE WILL READ $4.5 Billion with a $2.25 million annual payment for
20 years.
This will allow DC after 360 days of payment to borrow $169.75 million by selling the Fed a TIRPA 20/Yr Bond Face value $225 million.

It sounds great; but even more important, it not only pays for itself;
it reduces national debt !
” We need to try a thrifty version of Medicare for all, with negotiated prices for drugs, hospitals and diagnostic equipment.” (Ellen Brown) Let the States do just that-Give the power back to the people.

Rewrite the Rules. Reverse the Money Flow. (I.P.R.A.P.)(T.I.R.P.A.)

March 14, 2017

***** “Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis, you find to be kind, conducive to the good, the benefit, the welfare of all beings – that doctrine believe and cling to, and take it as your guide.”- Buddha[Gautama Siddharta] (563 – 483 BC), Hindu Prince, founder of Buddhism
******* “”We cannot solve our problems with the same thinking we used when we created them.”Albert Einstein

“It’s time to rewrite the rules―to curb the runaway flow of wealth to the top one percent, to restore security and opportunity for the middle class, and to foster stronger growth rooted in broadly shared prosperity.”(Economic Nobel Laureate Joseph Stiglitz)

Increase……. Wages, Jobs, the Standard of Living.
Decrease…… National Debt, Poverty, Inequality Gaps.
Yes, IT IS TIME TO MAKE AMERICA GREAT AGAIN.

A HISTORIC CHANGE For The Betterment of The People.
Allow everyone to achieve “The American Dream” and to retain their “Fair Share”
Yes,”It’s a very exciting time for America.
Your voices represent a bright new future for our great nation full of more opportunities for everyone, not just a select few.
Together, we have created a movement that continues to gain momentum.
Together, we are making history. Together, we are bringing back the American Dream.
The time is now, Together, we will Make America Great Again!”

The U S Constitution has structured this union
so that the Chief Executive Officer, CEO (The President)
is responsible to its Board of Directors, BOD (The Congress)
and with its Chief Compliance Office, CCO (The U.S. Supreme Court)
shall work together “…to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”

WE MUST FOLLOW THE MONEY FLOW!
As Nobel Laureate Frederick Soddy stated, “Money now is a license to live.”
“Since, in all monetary civilizations, it is money that alone can effect the exchange of wealth and the continuous flow of goods and services throughout the nation, money has become the lifeblood of the community, and for each individual a veritable license to live at all…”(The Role Of Money.)
It is time to claim “Your FAIR SHARE of the American Dream.”
Make the money flow for the betterment “Of The People,” a reversal, a change “For The People”.
THIS FLOW WILL BE GENDER NEUTRAL, RACE NEUTRAL AND BASED ONLY on the fulfillment for LIFE, LIBERTY AND THE PURSUIT OF HAPPINESS.
Now is the time to create the laws that would allow this change in direction.
Help to decrease the gaps of inequality, help decrease the numbers of those
in the grip of poverty, help raise the standard of living; all at the same time…
WE MUST REVERSE THE DIRECTION OF THE PRESENT FLOW !

“Trickle Down” now doesn’t work.
Yes, OCCUPY, Yes, Pope Francis, the “Trickle Down” system doesn’t work.
It doesn’t work because the establishment impedes the flow.
REPEAT: It doesn’t work because the establishment impedes the flow.
This must change.
We must remove these impediments and create a flow of wealth directly to the “PEOPLE.”
The system is meant to “reward all”, to allow all “Their Fair Share.”
Millions now realize;… the economy is rigged, …the justice system is rigged, …the health care system is rigged, …the employment system is rigged.
All part of an economic system that is really just a rigged political system.
Fortunately, this past November the voters across America have made the choice to cast a revolutionary vote to “MAKE AMERICA GREAT AGAIN.”
SEVENTY percent of the people believe the American economy is rigged. And they’re right.
EIGHTY percent of the people desire a change, a revolution. And they’re right.
History has allowed an opportunity for “AMERICA TO MAKE ITSELF GREAT AGAIN.”
We must mandate a reversal of “… an economic recovery program that has… fueled the increase in wealth inequality…”
Reverse that program, make the money FLOW to “…help form a more perfect Union,
establish Justice, insure domestic Tranquility, provide for the common defense, promote
the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity…”
“Yes, We Can Lower Taxes, Pay Off The Debt, And At The Same Time Increase Revenue.”
TWO IMMEDIATE STEPS:
Step One:
“INEQUALITY and POVERTY REDUCTION ADJUSTMENT PROGRAM”
( I.P.R.A.P. )
Capitalism demands inequality as a just proportional reward.
It is the size of the “Gaps” where the administration of inequality becomes distorted.
The size of the ‘Gaps’ are a demand of the administration of the quality and quantity of these ‘gaps’.
Taxation is a ways and means by which a government controls the quality and quantity of its currency already in circulation.
Currency that it can redistribute without changing the quality or quantity of the entire currency.
American Capitalism should allow everyone to achieve
‘The American Dream’ and to retain that “Fair Share.”
But that dream should not impede the poor and elderly from achieving their FAIR SHARE.
Nor should it impede the risk and reward which will ultimately lead to a betterment for all.
A federal taxation of personal income must recognize the sanctity of “The fruits of mankind’s labor”
A federal taxation of personal income should be used to control the distribution of income to obtain
a fair and just sharing of the American Dream, a just and fair sharing of the world’s riches while
maintaining the greatest standard of living.

“Inequality and Poverty Reduction Adjustment Program” ( I.P.R.A.P. )
“THE NEW ONE PAGE: Federal Personal Income Tax: 2017”
Brackets & Rates for Joint filers with:
GROUP ONE- income less than $100,000:
GROUP TWO- income more than $100,000 but less than $225,000:
GROUP THREE-income more than $225,000:
*Brackets for single filers are ½ of these amounts.
ALL income is taxable and must be reported.
All income is to be taxed at the same rate-30%.
NO exemptions. NO loopholes.Period.
Deductions:
This plan will increase the standard deduction for joint filers to $80,000,
and the standard deduction for single filers will be $40,000.
Tax must be paid, any claim of injustice may be filed for a proportional refund, if approved, it shall become a tax credit in the next year.
***The Tax Group One:
A… will receive a 8% distribution to replace their losses caused by sales taxes which are a detriment to their ‘standard of living’. This 6% will also replace any Social Security loss. The rebate will help grow our economy as well as allow wage earners to keep their share of the American Dream and raise the standard of living.

***Both Tax Group One and Tax Group Two:
A… will receive a direct refundable tax credit as provided for ‘Child and Home Care’ of $2500.

Yes, you can lower federal personal income taxes and lower federal corporate profit taxes. Period.
YOU NEED ONLY INCREASE TAX REVENUES FROM “SOMEWHERE ELSE”.

No longer shall we listen to the outcry by the establishment,
“WE WISH WE COULD HAVE DONE MORE FOR THE PEOPLE.”
“WE THE PEOPLE” WILL DEMAND MORE “FOR THE PEOPLE, BY THE PEOPLE.”
Yes,”It’s a very exciting time for America.”
GOD BLESS AMERICA.
justaluckyfool@aol

WE Can Do More For The People ! “FEDERAL INCOME REVENUE PRODUCING ASSETS” (F.I.R.P.A. )for Disaster Relief; INFRASTRUCTURE; & JOBS,JOBS,JOBS.

March 9, 2017

“We are going to fix our inner cities and rebuild our highways, tunnels, airports, schools, hospitals. We’re going to rebuild our infrastructure, which will become, by the way, second to none. And we will put millions of our people to work as we rebuild it.” (President Donald J Trump)
“It’s time to rewrite the rules―to curb the runaway flow of wealth to the top one percent, to restore security and opportunity for the middle class, and to foster stronger growth rooted in broadly shared prosperity.”( Economic Nobel Laureate Joseph Stiglitz)

Increase……. Wages, Jobs, the Standard of Living.
Decrease…… National Debt, Poverty, Inequality Gaps.
It sounds great; but even more important, it not only pays for itself; it reduces national debt !
“FEDERAL INCOME REVENUE PRODUCING ASSETS” ( F.I.R.P.A. )(FIRPA)
Time for American innovation to solve our problems, focus on investments-smart investments which will improve growth and pay for itself.
( F.I.R.P.A. ) , Plans to create millions of jobs that will pay for themselves while decreasing federal debt, poverty, as well as the income gap
Not a bailout.
Not a cost to all the taxpayers.
Not an increase in deficit spending.
Rather a magic economic proven golden bullet.

( F.I.R.P.A. )for Infrastructure Investment.
The FEDS made direct purchase of bank assets.The Fed has already proven that it can do this; with a profit to the US Treasury and with no increase in the debt (it is an asset purchase).
We must have Congress legislate that the Federal Reserve Bank shall make purchases of Public State Bonds For Infrastructure (PSBFI).
Each state will have as a member of the Federal Reserve a pubic state bank along with one additional member for the District of Columbia.
Each member (Public State Bank) will be entitled to issue $1 billion per electoral vote. All bonds will have the same terms and conditions and will be made available for purchase by the Federal Reserve for that year of issue.
All PSBFI’s will have a term of 20 years with the payment conditions as follows:
Each dollar face value will be sold at a twenty-five percent (25%) discount to the Fed.
There will be no interest charges.
The entire bond will have 20 equal payments due each year.
The F.I.R.P.A. BONDS will act as a line of credit: after 360 days of each annual
payment; that amount will be available to each entity with the same terms and conditions.
Ex., DC has $3 billion available ($1b X 3 Electoral votes).
THE BOND NOTE WILL READ $4.5 Billion with a $2.25 million annual payment for
20 years.
This will allow DC after 360 days of payment to borrow $169.75 million by selling the Fed a new “FIRPA 20/Yr Bond” Face value $225 million.

It sounds great; but even more important, it not only pays for itself;
it reduces national debt !
A “QE” purchase of $5.38 Trillion in State Bonds
with a face value of $6.725 trillion.
Producing a net income of $1.345 Trillion over 20 years!!!!
Ex., CA has $55 billion available ($1b X 55 Electoral votes); etc.

( F.I.R.P.A. )”Border Security Bond”
The U.S. states along the border, California, Arizona, New Mexico, and Texas shall use $20 billions net of FIRPA “Border Security Bond” money :
This special issue shall have a face value of $25 billion with a 20 year equal annual payment plan.(“FEDERAL INCOME REVENUE PRODUCING ASSETS” ( F.I.R.P.A. )to secure and maintain our border with Mexico. Each state will use a proportional amount based upon the actual state border mileage plus the number of points of entry. There are 48 U.S.–Mexico border crossings which shall be used to process a two percent (2%) service fee on all items for U.S.A. admission. The states will use these fund to pay off the bonds and also to maintain the border.
The states will have the option to issue an additional new TIRPA bond with a net $10 billion should they wish to make this fixture into an energy producing asset – a solar energy producing wall.
Thousands of megawatts of solar power; helping to make America great again.
Yes, a wall for security that will perform in many ways to help ‘Make America Great Again’.
( F.I.R.P.A. )for Disaster Relief.
Federal government to deposit $538 BILLION in Public State Banks for its asset purchase of $672.5 Billion of State Disaster Relief Bonds with a term of 20 years with equal annual payments. Each state shall deem when funds are to be dispersed. The allocation shall be based upon the fair and just system: $1 billion per electoral vote. This amount will be available as a line of credit.

Yes you can lower federal personal income taxes, and lower federal corporate profit taxes. Period.
YOU NEED ONLY INCREASE TAX REVENUES FROM “SOMEWHERE ELSE”.
SO HOW WILL THE STATES
PAY OFF THESE FIRPA BONDS ?
SO MANY WAYS:
…Collect tolls
…Sell clean energy
…Finance disaster repairs @ 3% for 20 yrs.
…Collect sale taxes, etc.

“In short, there is no argument against spending more money to both boost growth to create jobs and meet real needs.”
**OMG, Can the Bank Of England do just that ?
**OMG, Can an HONEST CENTRAL BANK do just that ?

No longer shall we listen to the outcry by the establishment,
“WE WISH WE COULD HAVE DONE MORE FOR THE PEOPLE.”
“WE THE PEOPLE” WILL DEMAND MORE “FOR THE PEOPLE, BY THE PEOPLE” .
Yes,”It’s a very exciting time for America.”
GOD BLESS AMERICA.
justaluckyfool@aol.com

NEED PROOF……read more:
“Brexit”,(read: “Buildit”) to deliver a democratic, accountable, and realistic New Deal ”
“The European Union has sowed the wind. It may reap the whirlwind. Unless it moves, and quickly, not merely to assert a hollow “unity” but to deliver a democratic, accountable, and realistic New Deal – or something very much like it – for all Europeans.” James Galbraith.
https://urpe.wordpress.com/2016/06/25/the-day-after-james-galbraith-on-brexit/

THE “BREXIT” SOLUTION TO DECREASE INEQUALITY GAPS, POVERTY, and NATIONAL DEBT.
ONE SENTENCE -A DEMOCRATIC REPUBLIC CAPITALISTIC ECONOMY WITH A HONEST CENTRAL BANK.
AN HONEST CENTRAL BANK (GUARDIAN) THAT BORROWERS MONEY FROM ITS LAWFUL OWNERS(THE PEOPLE), LENDS IT AND CHARGES A SERVICE FEE (TAX) TO SECURE AN INCOME STREAM TO TURN OVER TO LEGISLATORS TO USE FOR THE BETTERMENT OF ALL.
READ MORE: by Justaluckyfool http://bit.ly/MlQWNs

Justaluckyfool, “..Capitalism is the best system to date devised by mankind. As it is administrated, perhaps, is where the ‘flaw’ is manifested. If capitalism used its Central Bank properly, with honesty, accountability and transparency for the betterment of the common good, with equality and justice for all, capitalism could be one of the greatest achievements of mankind.”

Quote Soddy,
“… money has become the life-blood of
the community, and for each individual a veritable
licenseto live at all. ” SODDY.(The Role of Money. 1936)
… unless and until the barriers that oppose the free and full distribution of wealth from the producer to the
ultimate user and consumer are broken down and the flow of wealth again fulfils the purpose for
which men have striven to create it. Since, in all monetary civilizations, it is money that alone can effect
the exchange of wealth and the continuous flow of goods and services throughout the nation, money has
become the life-blood of the community, and for each individual a veritable license to live at all.”
Free download-“The Role Of Money” by Frederick Soddy
https://archive.org/…/rol…/roleofmoney032861mbp_djvu.txt ;

Email from Positive Money.

Dear Carmen,
There have been three big exciting breakthroughs in the last two weeks, which have been overlooked in all the focus on Brexit*, so we wanted to share the good news.
These breakthroughs involve three of the world’s most powerful central banks: the Bank of England, the US Federal Reserve and the European Central Bank.

1) Bank of England
Screenshot 2016-06-23 09.49.04.pngThe Bank of England has announced that it will be adopting a policy change that Positive Money has been arguing for over the last 2 years.
The BoE will finally allow non-bank ‘payment service providers’ to hold accounts at the Bank of England, so that they can compete with existing banks to provide current (checking) accounts.
This might sound like a minor technical change, but it could lead to a profound shift in the financial system. It will reduce the power of banks and expose them to competition in payment services. The financial technology (fintech) firms can then show that payments accounts can be provided cost-effectively without the power to create money.
It will be then much easier to campaign for stopping banks from creating money completely.
This is a huge step in the right direction and a big win for Positive Money research team and for the campaign! Read more about it here.
And please share this news on facebook and twitter.

2) US Federal Reserve
Screen Shot 2016-06-22 at 10.53.30.png
The Chairwoman of the US Federal Reserve, Janet Yellen, said that they ‘might legitimately consider’ using Public Money Creation.
Public Money Creation, using central bank money to directly finance spending in the real economy, has been taboo for over fifty years.
This is a massive step forward for the campaign as credibility for this idea grows among central bankers. Read more about it here.
Share on facebook and twitter.

3) European Central Bank
QE4P_ECB open letter 2.jpg
A group of 18 Members of the European Parliament have signed an open letter to the President of the ECB, Mario Draghi, calling on the ECB to study the viability and implementation of helicopter money (a type of public money creation).
The letter, which was reported in the Financial Times, encourages the ECB to carry out a full and in-depth analysis of alternative policies to quantitative easing. Read more about it here.
You can help spread this exciting news by sharing this on facebook and twitter.

* What does Brexit mean for monetary reform in the UK? Read here.

Best wishes,

Ben and the rest of the Positive Money team
http://www.positivemoney.org
**********************
https://rwer.wordpress.com/2016/06/25/in-the-wake-of-brexit-will-the-eu-finally-turn-away-from-austerity/

“This bleak economic performance was not dictated by the gods. It was the result of the conscious decision by the EU leadership to turn toward austerity in 2010, long before the economy was close to having recovered. Rather than using fiscal policy to steer economies toward full employment and address needs in infrastructure, clean energy, education and health care, the EU leadership demanded that governments move toward balanced budgets. This meant cutbacks in spending and tax increases that worsened and prolonged the downturn.”

TIME TO SEAL THE DEAL ! TIME FOR “T.I.R.P.A.”and “I.P.R.A.P.”

February 23, 2017

It’s time to rewrite the rules.
Increase……. Wages, Jobs, the Standard of Living.
Decrease…… National Debt, Poverty, Inequality Gaps.

***** “Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings – that doctrine believe and cling to,and take it as your guide.”- Buddha[Gautama Siddharta] (563 – 483 BC), Hindu Prince, founder of Buddhism
******* “”We cannot solve our problems with the same thinking we used when we created them”.Albert Einstein

A HISTORIC CHANGE For The Betterment of The People.
Allow everyone to achieve “The American Dream” and to retain their “Fair Share”

We must mandate a reversal of “… an economic recovery program that has… fueled the increase in wealth inequality…”
Reverse that program, make the money FLOW to “…help form a more perfect Union,
establish Justice, insure domestic Tranquility, provide for the common defense, promote
the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”

“Yes, We will Lower income Taxes, Pay Off The Debt, And At The Same Time Increase Revenue.”

TWO IMMEDIATE ACTIONS.

ONE:
“INEQUALITY and POVERTY REDUCTION ADJUSTMENT PROGRAM”
( I.P.R.A.P. )

Capitalism demands inequality as a just proportional reward.
It is the size of the “Gaps” where the administration of inequality becomes distorted.
The size of the ‘Gaps’ are a demand of the administration of the quality and quantity of these ‘gaps’.
Taxation is a ways and means by which a government controls the quality and quantity of its currency already in circulation.
Currency that it can redistribute without changing the quality or quantity of the entire currency.
American Capitalism should allow everyone to achieve
‘The American Dream’ and to retain that “Fair Share”.
But that dream should not impede the poor and elderly from achieving their FAIR SHARE.
Nor should it impede the risk and reward which will ultimately lead to a betterment for all.
A federal taxation of personal income must recognize the sanctity of “The fruits of mankind’s labor”
A federal taxation of personal income should be used to control the distribution of income to obtain
a fair and just sharing of the American Dream, a just and fair sharing of the worlds riches while
maintaining the greatest standard of living.

“Inequality and Poverty Reduction Adjustment Program” ( I.P.R.A.P. )
“THE NEW ONE PAGE:Federal Personal Income Tax: 2017”
Brackets & Rates for Joint filers with:
GROUP ONE- income less than $100,000:
GROUP TWO- income more than $100,000 but less than $225,000:
GROUP THREE-income more than $225,000:
*Brackets for single filers are ½ of these amounts.
ALL income is taxable and must be reported.
All income is to be taxed at the same rate-30%.
NO exemptions. NO loopholes.Period.
Deductions:
This plan will increase the standard deduction for joint filers to $80,000,
and the standard deduction for single filers will be $40,000.
Tax must be paid, any claim of injustice may be filed for a proportional refund, if approved, it shall become a tax credit in the next year.
***The Tax Group One:
A… will receive a 8% distribution to replace their losses caused by sales taxes which are a detriment to their ‘standard of living’.
The rebate will help grow our economy as well as allow wage earners to keep their fair share of the American Dream and raise the standard of living.
***Both Tax Group One and Tax Group Two:
A… will receive a direct refundable tax credit as provided for ‘Child and Home Care’ of $2500.
Refundable Tax credits that become ‘overages’ will become an immediate cash refund.
B… will receive a refundable tax credit of $2,000 for each child under the age of 26 for HEALTH AND EDUCATIONAL MAINTENANCE.
C… VETERANS WHO SERVED; DESERVE a direct lifetime annual refundable tax credit of $3000.
D… will receive a ‘take home’ pay increase.There will be no FICA payment taken out of their pay.This is at ZERO cost to production (The minimum wage concept would cost jobs as well as increase production cost). This merely places what was earned into their paycheck; it is the F.I.C.A. that was withheld from them as well as the employers contribution.
( I.P.R.A.P. ) will create a direct increase in wages, an increase in the Standard of living for more than 80% “of the people.” and it will be done “along with a
reduction in National Debt”.

TWO:

“TAXPAYER INCOME REVENUE PRODUCING ASSETS”
( T.I.R.P.A. )

STATE Bonds for JOBS.
( T.I.R.P.A. ) , Plans to create millions of jobs that will pay for themselves while decreasing federal debt, poverty, as well as the income gap
Not a bailout.
Not a cost to all the taxpayers.
Not an increase in deficit spending.
Rather a magic economic proven golden bullet.
The FEDS made direct purchase of bank assets.The Fed has already proven that it can do this; with a profit to the US Treasury and with no increase in the debt (it is an asset purchase).
We must have Congress legislate that the Federal Reserve Bank shall make purchases of Public State Bonds For Infrastructure (PSBFI).
Each state will have as a member of the Federal Reserve a pubic state bank along with
one additional member , the District of Columbia.
Each member (Public State Bank) will be entitled to issue $1 billion/ electoral vote. All bonds will have the same terms and conditions and will be available to the Federal Reserve for that year of issue.
All PSBFI’s will have a term of 30 years with the payment conditions as follows:
Each dollar of face value will be sold at a fifty percent (50%) discount to the Fed.
There will be no interest charges.
The entire bond will have 30 equal payments due each year.
The T.I.R.P.A. BONDS will act as a line of credit: after 360 days of each annual
payment; that amount will be available to each entity with the same terms and conditions.
Ex., DC has $3 billion available ($1 X 3 Electoral votes).
THE BOND NOTE WILL READ $6 Billion with a $200 million
annual payment for 30 years.
This will allow DC after 360 days of payment to borrow $200 million by selling the Fed a TIRPA 30/Yr Bond Face value $400 million.
It sounds great; but even more important, it not only pays for itself;
it reduces national debt !
A “QE” purchase of $538 billion in State Bonds with a face value of $1,076 billion.
Producing an increase net revenue income of $538 billion over 30 years!!!!
Ex., CA has $55 billion available ($1 X 55 Electoral votes); etc.

( T.I.R.P.A. )”Border Security Bond”… face value of $40 billion, to be issued by 4 State Public Banks;
The U.S. states along the border, California, Arizona, New Mexico, and Texas. These states shall use $20 billion of TIRPA “Border Security Bond” money :
This special issue shall have a face value of $40 billion with with a 30 year equal annual payment plan.(“TAXPAYER INCOME REVENUE PRODUCING ASSETS” ( T.I.R.P.A. )to secure and maintain our border with Mexico. Each state will use a proportional amount based upon the actual state border mileage plus the number of points of entry. There are 48 U.S.–Mexico border crossings which shall be used to process a two percent (2%) service fee on all items for U.S.A. admission. The states will use these fund to pay off the bonds and also to maintain the border.
The states will have the option to issue this TIRPA bond at a $80 billion should they make this fixture into an energy producing asset;.
Thousands of megawatts of solar power.
Yes, a wall for security that will perform in many ways.
( T.I.R.P.A. )for Disaster Relief. Upon specific need the Fed will deposit an amount equal to $1 billion per electoral vote per affected state to be used for the purchase of TIRPA Bonds that will will have the same terms and conditions.

No longer shall we listen to the outcry by the establishment,
“WE WISH WE COULD HAVE DONE MORE FOR THE PEOPLE.”
“WE THE PEOPLE” WILL DEMAND MORE “FOR THE PEOPLE, BY THE PEOPLE” .
Yes,”It’s a very exciting time for America.”
GOD BLESS AMERICA.
justaluckyfool@aol.

It’s Time To Rewrite The Rules. TIME TO MAKE AMERICA GREAT AGAIN.

January 9, 2017

It’s time to rewrite the rules.
TIME TO MAKE AMERICA GREAT AGAIN.
…create 25 million new jobs,
…secure our Mexican border,
Increase……. Wages, Jobs, the Standard of Living.
Decrease…… National Debt, Poverty, Inequality Gaps.
Yes, IT IS TIME TO MAKE AMERICA GREAT AGAIN.

TO:
Donald J Trump
45th President Of The United States
of America

From:
@justaluckyfool
Bestsolutionsfl.wordpress.com

Mr. President,
Donald J Trump,

Please, for your consideration:

***** “Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis, you find to be kind, conducive to the good, the benefit, the welfare of all beings – that doctrine believe and cling to, and take it as your guide.”- Buddha[Gautama Siddharta] (563 – 483 BC), Hindu Prince, founder of Buddhism
******* “”We cannot solve our problems with the same thinking we used when we created them.” Albert Einstein

Please let the world know definitively; Your message for the betterment of mankind.
It’s time to rewrite the rules to:
Increase……. Wages, Jobs, the Standard of Living.
Decrease…… National Debt, Poverty, Inequality Gaps.

GOD BLESS OUR 45TH PRESIDENT and GOD BLESS AMERICA.

*******IT IS TIME TO MAKE AMERICA GREAT AGAIN.*******

A HISTORIC CHANGE For The Betterment of The People.
Allow everyone to achieve “The American Dream” and to retain their “Fair Share”

Yes,”It’s a very exciting time for America.
Your voices represent a bright new future for our great nation full of more opportunities for everyone, not just a select few.
Together, we have created a movement that continues to gain momentum.
Together, we are making history. Together, we are bringing back the American Dream.
The time is now, Together, we will Make America Great Again!”

The U S Constitution has structured this union
so that the Chief Executive Officer, CEO (The President)
is responsible to its Board of Directors, BOD (The Congress)
and with its Chief Compliance Office, CCO (The U.S. Supreme Court)
shall work together “…to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity…”

WE MUST FOLLOW THE MONEY FLOW!
As Nobel Laureate Frederick Soddy stated, “Money now is a license to live.”
“Since, in all monetary civilizations, it is money that alone can effect the exchange of wealth and the continuous flow of goods and services throughout the nation,
money has become the lifeblood of the community, and for each individual a veritable license to live at all…”(The Role Of Money.)
It is time to claim “Your FAIR SHARE of the American Dream.”
Make the money flow for the betterment “Of The People”, a reversal, a change “For The People.”
THIS FLOW WILL BE GENDER NEUTRAL, RACE NEUTRAL AND BASED ONLY on the fulfillment for LIFE, LIBERTY AND THE PURSUIT OF HAPPINESS.
Now is the time to create the laws that would allow this change in direction.
Help to decrease the gaps of inequality, help decrease the numbers of those
in the grip of poverty, help raise the standard of living; all at the same time..

WE MUST REVERSE THE DIRECTION OF THE PRESENT FLOW!
Increase……. Wages, Jobs, the Standard of Living
Decrease…… National Debt, Poverty, Inequality Gaps,
“It’s time to rewrite the rules―to curb the runaway flow of wealth to the top one percent, to restore security and opportunity for the middle class, and to foster stronger growth rooted in broadly shared prosperity.”( Economic Nobel Laureate Joseph Stiglitz)

“Trickle Down” now doesn’t work.
Yes, OCCUPY, Yes, Pope Francis, the “Trickle Down” system doesn’t work.
It doesn’t work because the establishment impedes the flow.
REPEAT: It doesn’t work because the establishment impedes the flow.
This must change.
We must remove these impediments and create a flow of wealth directly to the “PEOPLE.”
The system is meant to “reward all,” to allow all “Their Fair Share.”
Millions now realize;… the economy is rigged, …the justice system is rigged, …the health care system is rigged, …the employment system is rigged.
All part of an economic system that is really just a rigged political system.
Fortunately, this past November the voters across America have made the choice to cast a revolutionary vote to “MAKE AMERICA GREAT AGAIN.”
SEVENTY percent of the people believe the American economy is rigged. And they’re right.
EIGHTY percent of the people desire a change, a revolution. And they’re right.
History has allowed an opportunity for “AMERICA TO MAKE ITSELF GREAT AGAIN.”

We must mandate a reversal of “… an economic recovery program that has… fueled the
increase in wealth inequality…”
Reverse that program, make the money FLOW to “…help form a more perfect Union,
establish Justice, insure domestic Tranquility, provide for the common defense, promote
the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity…”

“Yes, We Can Lower Taxes, Pay Off The Debt, And At The Same Time Increase Revenue.”
This administration will begin with two immediate actions:

1. “INEQUALITY and POVERTY REDUCTION ADJUSTMENT PROGRAM” (IPRAP)

Capitalism demands inequality as a just proportional reward.
It is the size of the gaps where the administration of inequality becomes distorted.
The size of the ‘Gaps’ is a demand of the administration of the quality and quantity of these ‘gaps’.
Taxation is a ways and means by which a government recaptures currency already in circulation.
Currency that it can redistribute without changing the quality or quantity of the entire currency.
American Capitalism would allow everyone to achieve
‘The American Dream’ and to retain that “Fair Share.”
But that dream should not impede the poor and elderly from achieving their FAIR SHARE.
Nor should it impede the risk and reward which will ultimately lead to a betterment for all.
A federal taxation of personal income must recognize the sanctity of “The fruits of mankind’s labor”
A federal taxation of personal income should be used to control the distribution of income to obtain
a fair and just sharing of the American Dream, a just and fair sharing of the world’s riches while
maintaining the greatest standard of living.

“THE NEW ONE PAGE:Federal Personal Income Tax: 2017”
“Inequality and Poverty Reduction Adjustment Program”(IPRAP)
Brackets & Rates for Married-Joint filers:
Less than $100,000: 12%
More than $100,000 but less than $225,000: 25%
More than $225,000: 33%
*Brackets for single filers are ½ of these amounts.
ALL income is taxable and must be reported.
Tax Group One (12%)
Income up to $50,000; JOINT Income up to $100,000 taxed at a rate of…12%
Tax Group Two (25%)
Income from $50,001 to $225,000; JOINT Income up to $100,001 to $225,000 will be taxed at a rate of …..25%
Tax Group Three (33%)
Income from $225,001 up to any amount will be taxed at a rate of ..33%

NO exemptions. NO loopholes. Period.

Deductions
This plan will increase the standard deduction for joint filers to $50,000, from $12,600,
and the standard deduction for single filers will be $25,000.
Taxes must be paid, any claim of injustice may be filed for a proportional refund which would become a tax credit if approved.
***The Tax Group One (12%)
A… will receive a 6% distribution to replace their loss caused by sales taxes which are a detriment to their ‘standard of living’. This 6% will also replace any Social Security loss.The rebate will help grow our economy as well as allow wage earners to keep their share of the American Dream and raise the standard of living.
B… will receive a 15% ‘take home’ pay increase.There will be no FICA payment taken out of their pay.This is at ZERO cost to production (The minimum wage concept would cost jobs as well as increase production cost). This merely places what was earned into their paycheck; it is the 15% F.I.C.A. that was withheld from them; now going directly into their take-home pay.
***The Tax Group One (12%) and Tax Group Two (25%)
A… will receive a direct tax credit as provided for ‘Child and Home Care’(Up to $2500).
Tax credits that become ‘overages’ will become an immediate cash refund.
B… will receive a direct tax credit of $2,000 for each child under the age of 18 for HEALTH AND EDUCATIONAL MAINTENANCE.
C… VETERANS WHO SERVED; DESERVE a direct lifetime tax credit of $2000.
This will be a direct increase in wages, an increase in Social Security, a direct increase in income to more than 50% “of the people.” and it will be done “along with a reduction in National Debt”.
We must mandate that the Executive branch and the Legislative branch, Reverse an economic privileged program that has lead to increases in wealth inequality.
Reverse that program, make the money FLOW to “…help form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity…”

2. “TAXPAYER INCOME REVENUE PRODUCING ASSETS” (TIRPA)
$5.38 trillion will be used to create 25 million new jobs, A purchase of “TAXPAYER INCOME REVENUE PRODUCING ASSETS (TIRPA) that will create 25 million new jobs. TIRPA will produce a positive stream of tax revenue to be used for Congressional appropriations. “TIRPA” a simple plan, using our resources, making purchases of STATE BONDS FOR INFRASTRUCTURE which will create 25 million American new jobs ‘for the people, by the people, of the people’. Produce CLEAN WATER, CLEAN AIR, CLEAN ENERGY and NEW INFRASTRUCTURE IN EACH STATE.

” The economy needs an injection of new money just to bring it to former levels. In July 2010, the New York Fed posted a staff report showing that the money supply had shrunk by about $3 trillion since 2008, due to the collapse of the shadow banking system. The goal of the Federal Reserve’s quantitative easing was to return inflation to target levels by increasing private sector borrowing. But rather than taking out new loans, individuals and businesses are paying off old loans, shrinking the money supply. They are doing this although credit is very cheap, because they need to rectify their debt-ridden balance sheets just to stay afloat. They are also hoarding money, taking it out of the circulating money supply. Economist Richard Koo calls it a “balance sheet recession.”
The Federal Reserve has already bought $3.6 trillion in assets simply by “printing the money” through QE. When that program was initiated, critics called it recklessly hyperinflationary; but it did not create even the modest 2% inflation the Fed was aiming for. Combined with ZIRP – zero interest rates for banks – it encouraged borrowing for speculation, driving up the stock market and real estate; but the Consumer Price Index, productivity, and wages barely budged. As noted on CNBC in February:
Central banks have been pumping money into the global economy without a whole lot to show for it . . . . Growth remains anemic, and worries are escalating that the U.S. and the rest of the world are on the brink of a recession, despite bargain-basement interest rates and trillions in liquidity.” https://www.perrymangroup.com/2014/11/07/the-end-of-quantitative-easing/
Yes, “We are going to fix our inner cities and rebuild our highways, tunnels, airports, schools, hospitals. We’re going to rebuild our infrastructure, which will become, by the way, second to none. And we will put millions of our people to work as we rebuild it.”
It sounds great; but even more important, it not only pays for itself; it reduces national debt!

” QE4JOBS”, Plans to create millions of jobs that will pay for themselves while decreasing federal debt, poverty, as well as the income gap
Not a bailout.
Not a cost to all the taxpayers.
Not an increase in deficit spending.
Rather a magic economic proven golden bullet.
The FEDS made a direct purchase of bank assets.The Fed has already proven that it can do this; with a profit to the US Treasury and with no increase in the debt (it is an asset purchase).
We must have Congress legislate that the Federal Reserve Bank shall make purchases of Public State Bonds For Infrastructure (PSBFI).
Each state will have as a member of the Federal Reserve a public state bank along with one additional member for the District of Columbia.
Each member (Public State Bank) will be entitled to issue $10 billion/ electoral vote. All bonds will have the same terms and conditions and will be available
to the Federal Reserve for that year of issue.
All PSBFI’s will have a term of 20 years with the payment conditions as follows:
Each dollar of face value will be sold at a one-third (1/3) discount to the Fed.
There will be no interest charges.
The entire bond will have 20 equal payments due each year.
The TIRPA BONDS will act as a line of credit: after 360 days of each annual
payment; that amount will be available to each entity at the same terms and conditions.

Ex., DC has $30 billion available ($10 X 3 Electoral votes).
THE BOND NOTE WILL READ $45 Billion with a $2.25 Billion
annual payment for 20 years.
This will allow DC after 360 days of payment to borrow $1.5 billion by selling the Fed a TIRPA 20/Yr Bond at $2.25 Billion.

It sounds great; but even more important, it not only pays for itself;
it reduces national debt!
A “QE” purchase of $8.07 Trillion in State Bonds
for $5.38 Trillion. A net income stream of $2.69 Trillion.

Ex., DC has $30 billion available ($10 X 3 Electoral votes).
THE BOND NOTE WILL READ $45 Billion with a $2.25 Billion
annual payment for 20 years.
It sounds great; but even more important, it not only pays for itself;
it reduces national debt! A “QE” purchase of $8.07 Trillion in State Bonds
for $5.38 Trillion. A net income stream of $2.69 Trillion.
Ex., CA has $550 billion available ($10 X 55 Electoral votes); etc.

The U.S. states along the border, California, Arizona, New Mexico, and Texas shall use $20 billion of TIRPA Bond money (“TAXPAYER INCOME REVENUE PRODUCING ASSETS” (TIRPA) to secure and maintain our border with Mexico. Each state will use a proportional amount based upon the actual state
border mileage plus the number of points of entry. There are 48 U.S.–Mexico border crossings, with 330 ports of entry
which shall be used to process a two percent service fee on all items for U.S.A. admission. The states will use these fund to pay off the bonds and also to maintain the border.

No longer shall we listen to the outcry by the establishment,
“WE WISH WE COULD HAVE DONE MORE FOR THE PEOPLE.”
“WE THE PEOPLE” WILL DEMAND MORE “FOR THE PEOPLE, BY THE PEOPLE”
Yes, “It’s a very exciting time for America.”

Where we went wrong; AMI, Public Banking, and Pos.M with a Soddy Solution.

December 21, 2016

It’s Time to go from T.I.N.A. (There Is No Alternative ) to T.A.R.A. (There Are Realistic Alternatives). ” (justaluckyfool@aol)

The Italian Banking Crisis: No Free Lunch – Or Is There?
Posted on December 21, 2016 by Ellen Brown
It has been called “a bigger risk than Brexit”– the Italian banking crisis that could take down the euro zone. Handwringing officials say “there is no free lunch” and “no magic bullet.” But UK Prof. Richard Werner says the magic bullet is just being ignored.
On December 4, 2016, Italian voters rejected a referendum to amend their constitution to give the government more power, and the Italian prime minister resigned. The resulting chaos has pushed Italy’s already-troubled banks into bankruptcy. First on the chopping block is the 500-year-old Banca Monte dei Paschi di Siena SpA (BMP), the oldest surviving bank in the world and the third largest bank in Italy. The concern is that its loss could trigger the collapse of other banks and even of the euro zone itself.
There seems little doubt that BMP and other insolvent banks will be rescued. The biggest banks are always rescued, no matter how negligent or corrupt, because in our existing system, banks create the money we use in trade. Virtually, the entire money supply is now created by banks when they make loans, as the Bank of England has acknowledged. When the banks collapse, economies collapse, because bank-created money is the grease that oils the wheels of production.
So the Italian banks will no doubt be rescued. The question is, how? Normally, distressed banks can raise cash by selling their non-performing loans (NPLs) to other investors at a discount; but recovery on the mountain of Italian bad debts is so doubtful that foreign investors are unlikely to bite. In the past, bankrupt too-big-to-fail banks have sometimes been nationalized. That discourages “moral hazard” – rewarding banks for bad behavior – but it’s at the cost of imposing the bad debts on the government. Further, new EU rules require a “bail-in” before a government bailout, something the Italian government is desperate to avoid. As explained on a European website called Social Europe:
The EU’s banking union, which came into force in January 2016, prescribes that when a bank runs into trouble, existing stakeholders – namely, shareholders, junior creditors and, sometimes, even senior creditors and depositors with deposits in excess of the guaranteed amount of €100,000 – are required to take a loss before public funds can be used . . . .
[The problem is that] the subordinated bonds that would take a hit are not simply owned by well-off families and other banks: as much as half of the €60 billion of subordinated bonds are estimated to be owned by around 600,000 small savers, who in many cases were fraudulently mis-sold these bonds by the banks as being risk-free (as good as deposits basically).
The government got a taste of the potential backlash a year ago, when it forced losses onto the bondholders of four small banks. One victim made headlines when he hung himself and left a note blaming his bank, which had taken his entire €100,000 savings.
Goldman Sachs Weighs In
It is not just the small savers that are at risk. According to a July 2016 article titled “Look Who’s Frantically Demanding That Taxpayers Stop Italy’s Bank Meltdown”:
The total exposure of French banks and private investors alone to Italian government debt exceeds €250 billion. Germany holds €83.2 billion worth of Italian bonds. Deutsche Bank alone has nearly €12 billion worth of Italian bonds on its books. The other banking sectors most at risk of contagion are Spain (€44.6 billion), the U.S. (€42.3 billion) the UK (€29.8 billion) and Japan (€27.6 billion).
. . . All of which helps to explain why banks and their representatives at the IMF and the ECB are frantically demanding a no-expenses-spared taxpayer-funded rescue of Italy’s banking system.
It could also explain why Goldman Sachs took it upon itself to propose a way out of this dilemma: instead of buying Italian government bonds in their quantitative easing program, the ECB and the central bank of Italy could buy the insolvent banks’ nonperforming loans.
As observed in a July 2016 article in The Financial Times titled “Goldman: Italy’s Bank Saga – Not Such a Big Deal,” Italy’s NPLs then stood at €210bn, and the ECB was buying €120bn per year of outstanding Italian government bonds as part of its quantitative easing (QE) scheme. The author quoted Goldman’s Francesco Garzarelli, who said, “by the time QE is over – not sooner than end 2017, on our baseline scenario – around a fifth of Italy’s public debt will be sitting on the Bank of Italy’s balance sheet.” Bringing the entire net stock of bad loans onto the government’s balance sheet, he said, would be equivalent to just nine months’ worth of Italian government bond purchases by the ECB.
Buying bank debt with money generated by the central bank would rescue the banks without cost to the taxpayers, the bondholders or the government. So why hasn’t this option been pursued?
The Inflation Objection
Perhaps the concern is that it would be inflationary. But UK Prof. Richard Werner, who invented the term “quantitative easing” when he was advising the Japanese in the 1990s, says inflation would not result. In 2012, he proposed a similar solution to the European banking crisis, citing three successful historical precedents.
One was the US Federal Reserve’s quantitative easing program, in which it bought $1.7 trillion in mortgage-backed securities from the banks. These securities were widely understood to be “toxic” – Wall Street’s own burden of NPLs. The move was highly controversial, but it worked for its intended purpose: the banks did not collapse, the economy got back on its feet, and the much-feared inflation did not result. Werner says this was because no new money entered the non-bank economy. The QE was just an accounting maneuver, an asset swap in the reserve accounts of the banks themselves.
His second example was in Britain in 1914, when the British banking sector collapsed after the government declared war on Germany. This was not a good time for a banking crisis, so the Bank of England simply bought the banks’ NPLs. “There was no credit crunch,” wrote Werner, “and no recession. The problem was solved at zero cost to the taxpayer.”
For a third example, he cited the Japanese banking crisis of 1945. The banks had totally collapsed, with NPLs that amounted to virtually 100 percent of their assets:
But in 1945 the Bank of Japan had no interest in creating a banking crisis and a credit crunch recession. Instead, it wanted to ensure that bank credit would flow again, delivering economic growth. So, the Bank of Japan bought the non-performing assets from the banks – not at market value (close to zero), but significantly above market value.
In each of these cases, Werner wrote:
The operations were a complete success. No inflation resulted. The currency did not weaken. Despite massive non-performing assets wiping out the solvency and equity of the banking sector, the banks’ health was quickly restored. In the UK and Japanese case, bank credit started to recover quickly, so that there was virtually no recession at all as a result.
For Italy and other “peripheral” euro zone countries, Werner suggests a two-pronged approach: (1) the central bank should buy the distressed banks’ NPLs with QE, and (2) the government should borrow from the banks rather than from bondholders. Borrowing in the bond market fattens the underwriters but creates no new money in the form of bank credit for the economy. Borrowing from banks does create new money as bank credit. (See my earlier article here.)
Clearly, when central banks want to save the banking system without cost to the government or the people, they know how to do it. So the question remains, why hasn’t the ECB followed the Federal Reserve’s lead and pursued this option?
The Moral Hazard Objection
Perhaps it is because banks that know they will be rescued from their bad loans will keep making bad loans. But the same moral hazard would ensue from a bailout or a bail-in, which virtually all interested parties seem to be advocating. And as was observed in an article titled “Italy: Banking Crisis or Euro Crisis?”, the cause of the banks’ insolvency, in this case, was actually something beyond the banks’ control – the longest and deepest recession in Italy’s history.
Werner argues that the moral hazard argument should instead be applied to the central bank, which actually was responsible for the recession due to the massive credit bubbles its policies allowed and encouraged. Rather than being punished for these policies, however, the ECB has been rewarded with even more power and control. Werner writes:
There is thus a form of regulatory moral hazard in place: regulators that obtain more powers after crises may not have sufficient incentives to avoid such crises.
What May Really Be Going On
Werner and other observers suspect that saving the economies of the peripheral eurozone countries is not the real goal of ECB policy. Rather, the ECB and the European Commission are working to force a political union on the euro zone countries, one controlled by unelected bureaucrats in the service of a few very large corporations and banks. Werner quotes David Shipley on Bloomberg:
Central bank officials may be hoping that by keeping the threat of financial Armageddon alive, they can coerce the region’s people and governments into moving toward the deeper union that the euro’s creators envisioned.
ECB and EC officials claim that “there is no free lunch” and “no alternative,” says Werner. But there is an alternative, one that is cost-free to the people and the government. The European banks could be rescued by the central bank, just as US banks were rescued by the Federal Reserve.
To avoid the moral hazard of bank malfeasance in the future, the banks could then be regulated so that they were harnessed to serve the public interest, or they could be nationalized. This could be done without cost to the government since the NPLs would have been erased from the books.
For a long-term solution, the money that is now created by banks in pursuit of their own profit either needs to be issued by governments (as has been done quite successfully in the past, going back to the American colonies) or it needs to be created by banks that are required to serve the public interest. And for that to happen, the banks need to be made public utilities.
____________________
Ellen Brown is an attorney and author of twelve books, including the best-selling Web of Debt. Her latest book, The Public Bank Solution, explores successful public banking models historically and globally. Her 300+ blog articles are at EllenBrown.com. She can be heard biweekly on “It’s Our Money with Ellen Brown” on PRN.FM.
*******************

“Capitalism is the “best” system to date devised by mankind. As it is administrated, perhaps, is where the “flaw” is manifested. If capitalism used its Honest Central Bank properly, that is for the betterment of the common good, with equality and justice for all, capitalism could be the greatest achievement of mankind.
ONE SENTENCE -A REPUBLIC DEMOCRATIC CAPITALISTIC ECONOMY WITH An HONEST CENTRAL BANK.
AN HONEST CENTRAL BANK (GUARDIAN) THAT BORROWERS MONEY FROM ITS LAWFUL OWNERS, LENDS IT AND CHARGES A SERVICE FEE TAX) TO SECURE AN INCOME STREAM TO TURN OVER TO CONGRESS TO USE FOR THE BETTERMENT OF ALL.
PBI with AMI with FREDERICK SODDY HAVE THE SOLUTION!!!
An Honest Central Bank (via Amend The Fed) were formed using PBI’s Public Bank System of51 public banks (50 states plus 1,- DC combined with territories.) plus  AMI’s “Separation of Private For Profit Banks (PFPB) from Government.
Create an Income stream “For The People,” simply by doing what they had been doing for the PFPB i.e., charging a service fee ( Instead of that which was allowed  banks to earn a Net Interest Income of over $20 trillion by charging interest on issuance (loans) over the last 20 years).
“Reverse..“… an economic recovery program that has privileged the recovery of financial markets and corporate profits has fueled the increase in wealth inequality, in the United States and across the world.”
Reverse that program, make the money FLOW to “…help form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”
Quote Frederick Soddy (The Role Of Money-1932),
“… every monetary system must at long last conform if it is to fulfill its proper role
as the distributive mechanism of society. To allow it to become a source of revenue to private issuers is to create, first, a secret and illicit arm of the government and, last, a rival power strong enough ultimately to overthrow all other forms of government.”

Where We Went Wrong: In God We Trust by JUSTALUCKYFOOL
After 5000 years; an answer.
Yes, Virginia, banks do create money “Out of Thin Air.”
“Verified by Empirical Evidence”
****Can banks individually create money out of nothing? – The theories and the empirical evidence ☆***by Richard A. Werner
http://www.sciencedirect.com/science/article/pii/S1057521914001070

ABSTRACT:
This paper presents the first empirical evidence in the history of banking on the question of whether banks can create money out of nothing. The banking crisis has revived interest in this issue, but it had remained unsettled. Three hypotheses are recognized in the literature. According to the financial intermediation theory of banking, banks are merely intermediaries like other non-bank financial institutions, collecting deposits that are then lent out. According to the fractional reserve theory of banking, individual banks are mere financial intermediaries that cannot create money, but collectively they end up creating money through systemic interaction. A third theory maintains that each individual bank has the power to create money ‘out of nothing’ and does so when it extends credit (the credit creation theory of banking). The question which of the theories is correct has far-reaching implications for research and policy. Surprisingly, despite the longstanding controversy, until now no empirical study has tested the theories. This is the contribution of the present paper. An empirical test is conducted, whereby money is borrowed from a cooperating bank, while its internal records are being monitored, to establish whether in the process of making the loan available to the borrower, the bank transfers these funds from other accounts within or outside the bank, or whether they are newly created. This study establishes for the first time empirically that banks individually create money out of nothing. The money supply is created as ‘fairy dust’ produced by the banks individually, “out of thin air.”

”This study establishes for the first time empirically that banks individually create money out of nothing. The money supply is created as ‘fairy dust’ produced by the banks individually, “out of thin air”.
AFTER more than 80 years-Vindication for the “crank” Frederick Soddy.
”It is important to realize that whichever way it works it is a case for the bank of
”Heads I win, tails you lose “…”…(U)sually by some such lying phrase as” Every
loan makes a deposit ”
“Genuine and Fictitious Loans.
For a loan, if it is a genuine loan, does not make a deposit, because what the borrower gets the lender gives up,
and there is no increase in the quantity of money, but
only an alteration in the identity of the individual owners of it. But if the lender gives up nothing
at all what the borrower receives is a new issue of money and the quantity is proportionately
increased. So elaborately, has the real nature of this ridiculous proceeding been surrounded with
confusion by some of the cleverest and most skillful advocates the world has ever known, that
it still is something of a mystery to ordinary people, who hold their heads and confess they
are ” unable to understand finance “. It is not intended that they should.”(The Role Of Money)
”Money is a concept” when ‘coined’,’printed’,or digital form (an entry on a balance sheet) it is a physical representation of “money”.

BUT beware; use the word ‘money’ without defining what the definition of that word is and should mean, your message is being distorted.

So how is this, to most people not understood, that money is wealth while at the same time money can not increase wealth, but merely store or exchange what has already been given up.
What is the “basic flaw” ?
Why is that flaw not understood ?
Soddy answered these questions, ““So elaborately has the real nature of this ridiculous proceeding been surrounded with confusion by some of the cleverest and most skillful advocates the world has ever known, that it still is something of a mystery to ordinary people, who hold their heads and confess they are” unable to understand finance“. It is not intended that they should.”
As Soddy stated,
“Money now is the NOTHING you get for SOMETHING before you can get ANYTHING,”
Frederick Soddy (The Role Of Money.”
Economists mention the “Fatal Flaw,” or ” BOOM & BUST,” yet do not ‘see it coming’
ASK again,”Did Soddy get it right?”
The “Fatal Flaw” is the ability of mankind to exponentially create more “Fictitious” money then “Genuine” money; when unrestrained
you have-inflation-systemic failure, or monetary collapse.

All banks that create ‘money’ out of thin air’ create two owners for the same value; while one owner has given up a real  value, yet the new owner has given up “thin air”.

There exists in this world,this universe more wealth than mankind could possibly use. Man has been given dominion
over this wealth. Mankind can not create any wealth and must distribute that which already exists.
Wealth is SOMETHING of value.
ALL Wealth on earth and in the universe exists and is expanding.

“As the worlds population has gone up, the total amount of product available per capita…has gone up.
…exactly the opposite of what…predicted. Indeed, the correlation of increased population with increased
per capita product is so strong that any scientist examining these data would immediately suspect causality..
.(S)o the more people there are, the faster the rate of technological progress, which multiples product per capita,
and whose are cumulative.
So the more of us there are, the more there will be to go around.”(The Human Factor, Robert Zubrin…2015)

We now no longer believe “In God We Trust” as having created all wealth that is needed by mankind.
Yes, we have loss our TRUST In God; now We Trust In Man to create “wealth” from nothing.
” All smoke and mirrors.
All designed with ONE intention: ‘To Hide The Issuers Alchemy‘. It does not matter how the ‘money’ is coined, printed, or digitized – It is not wealth. When one understands this basic universal law, they will know of this deceit.”(SODDY)
Wealth is SOMETHING of value.
ALL Wealth on earth and in the universe exists and is expanding.

Money now is the NOTHING you get for SOMETHING (a created value)
before you can get ANYTHING (a created value).
Money is a receipt for SOMETHING (a value given up).
Money can not create ANYTHING (an exchangeable value).

“The Monetary System Impedes the Flow.
Since, in all monetary civilizations, it is money that alone
can effect the exchange of wealth and the continuous flow of goods and services
throughout the nation, money has become the life-blood of
the community, and for each individual a veritable license to live at all.
The monetary system is the
distributory mechanism, and this reading of
history therefore supports up to the hilt the con-
clusions of those who have made a special study
of what our monetary system has become. It is
the primary and infinitely most important source
of all our present social and international unrest
and for the failure, hitherto, of democracy.

A very slight knowledge of our actual existing
monetary system makes it abundantly clear that,
without democracy knowing or allowing it, and
without the matter ever being before the electorate
even as a secondary or minor political issue, the
power of uttering money has been taken out of
national hands and usurped as a perquisite by
the moneylender. Practically every genuine
monetary reformer is unanimous that the only
hope of safety and peace lies in the nation
instantly resuming its prerogative over the issue
of all forms of money, which, legally, it has never
surrendered at all.”
“**** THE THEORY OF MONEY. VIRTUAL
WEALTH….

“WHAT is Money? Let us commence our
study of the role of money by a compre-
hensive definition of what modern money is.

Money now is the NOTHING you get for SOMETHING
before you can get ANYTHING.

Our task is to understand all that this implies.
The definition is, of course,an economic one
referring to ordinary transactions such as earning,
buying, and selling among ordinary folk generous
uncles and other voluntary benefactors not being
under contemplation and the nothing, something,
and anything of the definition refer to things of
real value in themselves, usually termed goods and
services, or simply wealth, unless hair-splitting
or purely technical distinctions turning on the
precise definition of wealth are involved. More-
over, it refers to ordinary people,
in the sense of those who neither have the opportunity nor the
power of uttering money themselves. ”

Nowhere is there a mandate to create wealth (money),
the “giving up of SOMETHING before you can get ANYTHING (money).”
The Fatal Flaw is that we do not recognize that MONEY AS WEALTH must be in existence before it can be created (issued). We are flawed in calling…bank issuance MONEY when that issuance is made “out of thin air.” BTW, that has been empirically proven as being ‘credit money’. The same “word”-“money” is used with two opposite meaning. One as a receipt of a value of wealth that is to be redeemed at a future time for wealth. The other use is a copy of a receipt (made out of thin air,’Fairy Dust”), a copy of wealth already owned by someone else.
ALL wealth has already been created, the entire expanding universe.
A government  can not create new wealth. A government can by law ‘coin or print’ transferable receipts of wealth in a transferable measured form for its sovereignty.
A government may  be allowed to “borrow” from the wealth of the entirety
at zero cost, use that ‘borrowed’ money to help fund “a more perfect union.
Remembering that it must put that money back into its secure holdings so the lawful owners may redeem their individual value upon demand.
We must go back to “IN GOD WE TRUST.”
We have dominion over this universe, all its wealth. As mankind exponentially grows so does the universe; a perfect system.
Only we can screw it up!
Our forefathers understood what “In God We Trust” meant
An HONEST CENTRAL BANK can not, or shall not create wealth.
An honest Central Bank is the guardian of the community wealth given up and in storage…
…the sole and only entity that may issue receipts on the community wealth,

…may be allowed to borrow
…must operate with transparency,
…be held accountable.

“THEY” have used the same words to create different meanings!
“MONEY”as a receipt of wealth; “MONEY” as a creation of wealth “out of thin air”.
Nowhere is there a mandate to create wealth (money), the “giving up of SOMETHING
before you can get ANYTHING (money.”
The Constitution allows Congress
…TO BORROW
…TO ‘Coin’
…TO punish counterfeiting.
This is clear in that borrowing,coining,or printing
is authorized of that which is already “wealth given up” and this is also clear
“other then that is ‘counterfeit.”

*** U.S. Constitution.
ARTICLE . 1. ..SECTION. 8.
“The Congress shall have Power …(A). To borrow Money on the credit of the United States;
…(B).To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
The Congress shall have Power …(C).To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;…”
What the Constitution declares:
****(A) “TO BORROW.” It may not ‘create’ Genuine money; that is SOMETHING already owned by individuals and the community.N.B.,There is no reason (or request) to pay interest when borrowing from your own sovereign wealth.
**** (B) “TO COIN MONEY, REGULATE. It may either by printing, making stamped tokens, digital dots maintain and control that standard of Weights and
Measures,i.e., the physical representative form of Genuine Money.
**** (C)”To provide for the Punishment of counterfeiting…”
No entity may “create out of thin air” and turn it into SOMETHING that is guaranteed to be redeemable as Genuine money.

SODDY, “Let us right from the start get the signs right.
The owner of money is the creditor and the issuer of it is the debtor, for the owner of money gives up goods and services to the issuer. In an honest
money system the issuer of money who gets
for nothing goods and services would do so on
trust for the benefit of the community. In
a fraudulent money system he does so for the
benefit of himself. It makes no difference whether
he passes off the money and puts it into circulation
himself or lends it at interest for others to pass off
for him. In every case what he so gets to spend or
lend is given up by someone else. Ex nihilo nihil
fit. Nothing comes from nothing…”

“Capitalism is the “best” system to date devised by mankind. As it is administrated, perhaps, is where the “flaw” is manifested. If capitalism used its Central Bank properly,that is for the betterment of the common good, with equality and justice for all, capitalism could be the greatest achievement of mankind.

THE K.I.S. SOLUTION TO DECREASE INEQUALITY GAPS, POVERTY, and NATIONAL DEBT.
ONE SENTENCE -A REPUBLIC DEMOCRATIC CAPITALISTIC ECONOMY WITH A HONEST CENTRAL BANK.
AN HONEST CENTRAL BANK (GUARDIAN) THAT BORROWERS MONEY FROM ITS LAWFUL OWNERS, LENDS IT AND CHARGES INTEREST (TAX) TO SECURE AN INCOME STREAM TO TURN OVER TO CONGRESS TO USE FOR THE BETTERMENT OF ALL.AN HONEST CENTRAL BANK (GUARDIAN) THAT BORROWERS MONEY FROM ITS LAWFUL OWNERS, LENDS IT AND CHARGES A FEE (TAX) TO SECURE AN INCOME STREAM TO TURN OVER TO CONGRESS TO USE FOR THE BETTERMENT OF ALL.

 

N.B. An Honest Central Bank
*****************************
….. to be formed using PBI’s Public Bank System (51 public banks-50 states plus 1 for D.C.)
….. combined with AMI’s “Separation of Private For Profit Banks (PFPB) from Government.

….combined with Positive Money concepts.

READ MORE:

https://bestsolutionsfl.wordpress.com/2018/03/14/where-we-went-wrong-in-god-we-trust/

“TBTF”,Banks; Bad Business decision, or Fiduciary Violation?

November 28, 2016

SO WHERE IS THE MULTI TRILLION DOLLAR CLASS ACTION LAW SUIT ?

People are still suffering losses. IT ALL WENT WRONG-when the banks violated their fiduciary duty and abandoned their rights, no their obligation to “protect the asset”
Fraudulent mortgage loans do not, can not and will not cause “systemic failure” or “total collapse of the monetary system” .
The mortgage system is not flawed because it is based on lending against an asset; an asset that the lender has a fiduciary obligation to protect. As long as the lender can reclaim the asset, even if at 50% of its original value, the lender will be able to recover over time. (If at 6%; 12 years.)

The banks believed “the insurers were as privileged as they were”. The Banks were right! The FEDS had to bail the banks and their insurers out to cure the

“Fatal Flaw”- The ability of the F.I.R.E. sector to create Bad Money (FICTITIOUS) with no real restraint. There is a point where the redeemers will panic when they realize, while waiting in line, there is no more Good Money (REAL) available. The Bad Money had driven all the Good Money out of circulation. Gresham’s Law.
The “suckers” were the Buyers of the MBS’s. The scheme collapsed when they discovered the banks and their insurers no longer could pay back the money they paid for the so-called ultra safe investment. The future interest income from the mortgages was what securitized the MBS’s—NOT THE LOANS. The banks could not sell them the loans; they didn’t even own the money they printed to make them.
In order to make trillions of dollars in present time profits, they sold and got cash for tomorrows money-the Net Interest Income which did not even exist at that time.

IT ALL WENT WRONG-when the banks violated their fiduciary duty and abandoned their rights, no their obligation to “protect the asset”
To keep the ‘suckers’ buying they gave up the right to foreclose (their protection of the asset) to “the upper tiers” buyers of the investment-the MBS ! Giving up “our protection” and turning that protection over to the MBS’s buyers.
This violation caused the loss of trillions of dollars of “the people’s money”.
This violation was the cause of the Feds giving the money to the banks to prevent the “systemic failure” or “total collapse of the monetary system”. The loans would have cured themselves but they (banks) could not return the trillions they they spent as profit from the sale of the MBSs. And more important, the Fed could not purchase and restructure the mortgages thereby destroying the future income receipts. The “systemic failure”, “total collapse of the monetary system” could have occured if the ‘people’ were told that the banks and insurance companies were insolvent. The banks believed “the insurers were as privileged as they were”. The Banks were right! The FEDS had to bail the banks and their insurers out to cure the “Fatal Flaw”- The ability of the F.I.R.E. sector to create Bad Money (FICTITIOUS) with no real restraint. There is a point where the redeemers will panic when they realize, while waiting in line, there is no more Good Money (REAL) available.
WITNESS : SHEILA BAIR,”How could things have deteriorated so quickly…? In a word, securitization.
…Working with a Wall Street investment bank, the issuer packages the mortgages together into ‘pools’ and divides the right to the cash flows of these mortgages into securities that are sold to investors…”“…but they can’t get the mortgage notes written down to affordable levels for contractual reasons….” Quote Sheila Bair ,
(Former FDIC Chairman appointed in 2006(“BULL BY THE HORNS”) THE KEY WORDS BEING, “… the right to the cash flows of these mortgages into securities that are sold to investors…” These contracts allowed the investors to take away the rights of the lenders to modify the mortgages: they sold “the cash flows” for cash . How could they get back the trillions of dollars they already spent so they could repurchase the MBSs ?
The Fed would have been able to “fix” the modification problem with simple strokes on a computer: Allow all to stay at market value, with loans at 3% for 40 years,period. 85% would stay, the other 15% would become welcomed ‘short sales’. END OF CRISES, stabilizing the housing industry, saving millions of jobs and even creating more jobs. But if they were to reveal the banks made trillions of profit by selling-future interest income and would have had to return that money; the banks would have crashed. The banks would be proven that they were insolvent. Also, the Insurance industry would have “failed” because they were also insolvent, that is also they could not “pay out the trillions needed to cover the banks insured losses.
The banks made a fatal error in that they turned over to the investors all control over the performance of the basic asset..with total disregard of their fiduciary duty- thereby making it impossible for the TBTF” banks to make good on their “representations”. The only way available for the Fed was to “make the banks and the insurers whole”. Return the trillions they took since it was discovered that not only were they not of “good faith and credit” but also the insurers they paid were also not of “good faith and credit”. Has anyone asked ,why the Fed purchased almost $1 trillion of MBSs instead of the mortgages ?
Because the mortgages were not the problem and such a purchase would have been even more disasterous because the buyers of the MBS would see their purchases go to zero as there would be ZERO future interest income for them. And the Fed would have exposed-we are in a system that is flawed and could result in catastrophic failure.
Please feel free to correct any errors and any profound wisdom is welcomed.
” … “Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings – that doctrine believe and cling to,and take it as your guide.”- Buddha
WITNESS : BEN BERNANKE
Former Federal Reserve Chair Ben Bernanke joined practically everyone in America by saying in his new memoir, The Courage to Act, that more Wall Street executives should have gone to jail for criminal misconduct that led to the financial crisis.
“It would have been my preference to have more investigation of individual action, since obviously everything what went wrong or was illegal was done by some individual, not by an abstract firm,” he wrote.”The mortgage securitization process that fed the housing bubble and generated the financial crisis also led to widespread foreclosure fraud, and in April 2011, the Fed, along with the Office of the Comptroller of the Currency, issued enforcement orders against ten major banks over “misconduct and negligence related to deficient practices in residential mortgage loan servicing and foreclosure processing.”
WITNESS FEDERAL RESERVE AT JACKSON HOLE 2016:
“The apparent consensus at (2016) Jackson Hole:
Quantitatively, an enormous overhang of mortgages and their containerized relatives, mortgage-backed securities, needed to be taken from the market to give that fundamental sector of the US economy a chance to recover from the disastrous excesses of pre-Crisis governmental housing policy, compounded by massive irresponsible behavior of financial institutions that had climbed upon the housing bandwagon.(http://seekingalpha.com/article/4004127-feds-policy-process#comment-)

 

Please feel free to correct any errors and any profound wisdom is welcomed.
” … “Believe nothing merely because you have been told it…But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings – that doctrine believe and cling to,and take it as your guide.”- Buddha
WHO REALLY SAW THIS COMING?????
Did Frederick Soddy see that coming in 1934?
******Excerpt from http://en.wikipedia.org/wiki/Frederick_Soddy
“In four books written from 1921 to 1934, Soddy carried on a “quixotic campaign for a radical restructuring of global monetary relationships”[this quote needs a citation], offering a perspective on economics rooted in physics—the laws of thermodynamics, in particular—and was “roundly dismissed as a crank”[this quote needs a citation]. While most of his proposals – “to abandon the gold standard, let international exchange rates float, use federal surpluses and deficits as macroeconomic policy tools that could counter cyclical trends, and establish bureaus of economic statistics (including a consumer price index) in order to facilitate this effort” – are now conventional practice, his critique of fractional-reserve banking still “remains outside the bounds of conventional wisdom”[this quote needs a citation]. Soddy wrote that financial debts grew exponentially at compound interest…”
http://archive.org/stream/roleofmoney032861mbp/roleofmoney032861mbp_djvu.txt“The Role Of Money”
(Entire book as a free download)

TRUMP: A HAMILTON, JEFFERSON HISTORICAL MOMENT. IT IS TIME TO OPEN THIS DOOR.

November 15, 2016

TRUMP, OPEN A DOOR TO A LEGACY TO BE ONE OF THE GREATEST PRESIDENTS OF ALL TIME.
” Reverse, .. an economic recovery program that has privileged the recovery of financial markets and corporate profits has fueled the increase in wealth inequality, in the United States and across the world.”(Mehrsa Baradaran).
Reverse that program, make the money FLOW to “…help form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”
The U S Constitution has structured this union
so that the Chief Executive Officer, CEO (The President)
is responsible to its Board of Directors, BOD (The Congress)
and with its Chief Compliance Office, CCO (The U.S. Supreme Court)
shall work together “…to form a more perfect Union , establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”
——DOOR NUMBER ONE: USE the $4.5 trillion
The End of Quantitative Easing
November 7, 2014 Dr. M. Ray Perryman
It’s the end of an era. The Federal Reserve System (Fed) has officially ended “quantitative easing,” the program of bond buying which began during the recession. The point of quantitative easing (or QE) was to inject liquidity into the economy in response to rapidly worsening economic conditions. As the Federal Reserve System purchased bonds, dollars were released into the financial system, helping push down interest rates in an effort to stimulate investment and consumption and, hence, help the economy recover. That’s an oversimplification of what is a more complex process, but that’s the gist of it.
When the financial markets began their downward spiral in the late summer of 2007, the total value of assets on the Federal Reserve’s balance sheet stood at about $900 billion. Between September 2007 and November 2008, the Fed’s bond buying push more than doubled assets to $2.2 trillion. By the summer of 2011 (after additional QE rounds of buying), asset levels approached $3 trillion, and by the end of 2013 hit $4 trillion. The latest data places assets at about $4.5 trillion. These assets include $2.4 trillion in US treasury securities and $1.7 trillion in mortgage-backed securities, among other things. ( see above)
—–DOOR NUMBER TWO: USE the $1to $5 trillion
**”Corporate Repatriation of Trillions of U.S. Dollars”.
**”QE” ! A change in direction: Doing something for the common betterment of all the people (Instead of the banks).
Trillions ($16,000,000,000,000 proven) have been spent to help banks and business,isn’t it time to help the people?
Help to lower the gaps of inequality, help the more than 130 million in the grip of poverty, help raise the standard of living; all at the same time, while creating 10 million new jobs while creating disaster relief and reducing the national debt.
Reverse “… an economic recovery program that has privileged the recovery of financial markets
and corporate profits has fueled the increase in wealth inequality, in the United States and across the world.”
Reverse that program, make it fund “…a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”
“Corporate Repatriation of Trillions of U.S. Dollars”.
DONALD J TRUMP, use the $1 to $5 Trillion ( U.S. Dollars )owned by US Corporations that is frozen overseas.
Within first 30 days in office,make a special deal to repatriate these trillions of dollars.
The corporations will be offered the right to purchase “Special 2016 5 Year Treasury Bonds with 0% interest…TAX FREE. Before this door will be closed with a heavy tax assessment!
This $1 to $5 trillion dollars will be used to create 25 million new jobs. $1 to $5 trillion will be used to purchase “TAXPAYER INCOME REVENUE PRODUCING ASSETS that will create 25 million new jobs. Done while producing a stream of tax revenue to be used by Congressional appropriations.
” QE4JOBS”, Plans to create millions of jobs that will pay for themselves while decreasing federal debt, poverty, as well as the income gap….or stated another way, “How does this capitalistic government create an INCOME stream over and above its budget, while decreasing its present debt, while having complete control over the quality and quantity of its currency?
Have the American financial system rush to the rescue with a generous and flexible legal funding that no other country could match.
Not a bailout.
Not a cost to all the taxpayers.
Not an increase in deficit spending.
Rather a magic economic proven golden bullet, (Bernanke should get the Noble Prize for this).
QE! A simple change in direction of doing something for the common bettering of all the people.
Especially those in need now.
The FEDS did in fact QE for the Private For Profit Banks.
$$$$$$16,000,000,000,000.00 (TRILLION) .
The FEDS made direct purchase of bank assets.
Why not have the FEDS do for the States exactly that-purchase from each state $100 billion of State improvement bonds w/ terms of 2% for 36 years.(??5.0 TRILLION ??)
Thereby creating 25 million new jobs and producing new infrastructure and disaster relief while at the same time producing an income stream (tax revenue)or as banks call “Net Interest Income”, (money that by law is to be turned over to Congress for appropriations).
ASK, “WHY HAS THIS NOT BEEN DONE ?”
The answer is already known by Obama and Hillary but both decided to not do it, both decided
it was better to stay with the rigged system.
AS OBAMA SAID(almost 5 years ago), (12/11/11 “60 MINUTES)”You can’t raise revenues by lowering taxes unless you get the money from somewhere else.”
OPEN ALL DOORS:::::
“Congress shall have power . . . to borrow money on the credit of the United States.”
Translated: Congress has the right to “borrow” real wealth from the community and has no obligation to pay interest, however, since ‘borrowed’ it must be given back.

Trillions can be used to create purchases of “FEDERAL INCOME REVENUE PRODUCING ASSETS ( F.I.R.P.A. ).

Trump’s $1 Trillion Infrastructure Plan: Lincoln Had a Bolder Solution
Posted on November 14, 2016 by Ellen Brown
Donald Trump was an outsider who boldly stormed the citadel of Washington DC and won. He has promised real change, but his infrastructure plan appears to be just more of the same – privatizing public assets and delivering unearned profits to investors at the expense of the people. He needs to try something new; and for this he could look to Abraham Lincoln, whose bold solution was very similar to one now being considered in Europe: just print the money.
In Donald Trump’s victory speech after the presidential election, he vowed:

We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals. We’re going to rebuild our infrastructure, which will become, by the way, second to none. And we will put millions of our people to work as we rebuild it.

It sounds great; but as usual, the devil is in the details. Both parties in Congress agree that infrastructure is desperately needed. The roadblock is in where to find the money. Raising taxes and going further into debt are both evidently off the table. The Trump solution is touted as avoiding those options, but according to his economic advisors, it does this by privatizing public goods, imposing high user fees on the citizenry for assets that should have been public utilities.
Raise taxes, add to the federal debt, privatize – there is nothing new here. The president-elect needs another alternative; and there is one, something he is evidently open to. In May 2016, when challenged over the risk of default from the mounting federal debt, he said, “You never have to default, because you print the money.” The Federal Reserve has already created trillions of dollars for the 1% by just printing the money. The new president could create another trillion for the majority of the 99% who elected him.
Another Privatization Firesale?
The infrastructure plan of the Trump team was detailed in a report released by his economic advisors Wilbur Ross and Peter Navarro in October 2016. It calls for $1 trillion of spending over 10 years, funded largely by private sources. The authors say the report is straightforward, but this writer found it hard to follow, so here the focus will be on secondary sources. According to Jordan Weismann on Slate:

Under Trump’s plan … the federal government would offer tax credits to private investors interested in funding large infrastructure projects, who would put down some of their own money up front, then borrow the rest on the private bond markets. They would eventually earn their profits on the back end from usage fees, such as highway and bridge tolls (if they built a highway or bridge) or higher water rates (if they fixed up some water mains). So instead of paying for their new roads at tax time, Americans would pay for them during their daily commute. And of course, all these private developers would earn a nice return at the end of the day.
The federal government already offers credit programs designed to help states and cities team up with private-sector investors to finance new infrastructure. Trump’s plan is unusual because, as written, it seems to be targeted at fully private projects, which are less common.

David Dayen, writing in The New Republican , interprets the plan to mean the government’s public assets will be “passed off in a privatization firesale.” He writes:

It’s the common justification for privatization, and it’s been a disaster virtually everywhere it’s been tried. First of all, this specifically ties infrastructure—designed for the common good—to a grab for profits. Private operators will only undertake projects if they promise a revenue stream. . . .
So the only way to entice private-sector actors into rebuilding Flint, Michigan’s water system, for example, is to give them a cut of the profits in perpetuity. That’s what Chicago did when it sold off 36,000 parking meters to a Wall Street-led investor group. Users now pay exorbitant fees to park in Chicago, and city government is helpless to alter the rates.
You also end up with contractors skimping on costs to maximize profits.

Time for Some Outside-the-box Thinking
That is the plan as set forth by Trump’s economic policy advisors; but he has also talked about the very low interest rates at which the government could borrow to fund infrastructure today, so perhaps he is open to other options. Since financing is estimated to be 50% of the cost of infrastructure, funding infrastructure through a publicly-owned bank could cut costs nearly in half, as shown here.
Better yet, however, might be an option that is gaining traction in Europe: simply issue the money. Alternatively, borrow it from a central bank that issues it, which amounts to the same thing as long as the bank holds the bonds to maturity. Economists call this “helicopter money” – money issued by the central bank and dropped directly into the economy. As observed in The Economist in May 2016:

Advocates of helicopter money . . . argue for fiscal stimulus—in the form of government spending, tax cuts or direct payments to citizens—financed with newly printed money rather than through borrowing or taxation. Quantitative easing (QE) qualifies, so long as the central bank buying the government bonds promises to hold them to maturity, with interest payments and principal remitted back to the government like most central-bank profits.

Helicopter money is a new and rather pejorative term for an old and venerable solution. The American colonies asserted their independence from the Motherland by issuing their own money; and Abraham Lincoln, our first Republican president, boldly revived that system during the Civil War. To avoid locking the government into debt with exorbitant interest rates, he instructed the Treasury to print $450 million in US Notes or “greenbacks.” In 2016 dollars, that sum would be equivalent to about $10 billion, yet runaway inflation did not result. Lincoln’s greenbacks were the key to funding not only the North’s victory in the war but an array of pivotal infrastructure projects, including a transcontinental railway system; and GDP reached heights never before seen, jumping from $1 billion in 1830 to about $10 billion in 1865.
Indeed, this “radical” solution is what the Founding Fathers evidently intended for their new government. The Constitution provides, “Congress shall have the power to coin money [and] regulate the value thereof.” The Constitution was written at a time when coins were the only recognized legal tender; so the Constitutional Congress effectively gave Congress the power to create the national money supply, taking that role over from the colonies (now the states).
Outside the Civil War period, however, Congress failed to exercise its dominion over paper money, and private banks stepped in to fill the breach. First the banks printed their own banknotes, multiplied on the “fractional reserve” system. When those notes were heavily taxed, they resorted to creating money simply by writing it into deposit accounts. As the Bank of England acknowledged in its spring 2014 quarterly report, banks create deposits whenever they make loans; and this is the source of 97% of the UK money supply today. Contrary to popular belief, money is not a commodity like gold that is in fixed supply and must be borrowed before it can be lent. Money is being created and destroyed all day every day by banks across the country. By reclaiming the power to issue money, the federal government would simply be returning to the publicly-issued money of our forebears, a system they fought the British to preserve.
Countering the Inflation Myth
The invariable objection to this solution is that it would cause runaway price inflation; but that monetarist theory is flawed, for several reasons.
First, there is the multiplier effect: one dollar invested in infrastructure increases gross domestic product by at least two dollars. The Confederation of British Industry has calculated that every £1 of such expenditure would increase GDP by £2.80. And that means an increase in tax revenue. According to the New York Fed, in 2012 total tax revenue as a percentage of GDP was 24.3%. Thus one new dollar of GDP results in about 24 cents in increased tax revenue; and $2 in GDP increases tax revenue by about fifty cents. One dollar out pulls fifty cents or more back in the form of taxes. The remainder can be recovered from the income stream from those infrastructure projects that generate user fees: trains, buses, airports, bridges, toll roads, hospitals, and the like.
Further, adding money to the economy does not drive up prices until demand exceeds supply; and we’re a long way from that now. The US output gap – the difference between actual output and potential output – is estimated at close to $1 trillion today. That means the money supply could be increased by close to $1 trillion annually without driving up prices. Before that, increasing demand will trigger a corresponding increase in supply, so that both rise together and prices remain stable.
In any case, today we are in a deflationary spiral. The economy needs an injection of new money just to bring it to former levels. In July 2010, the New York Fed posted a staff report showing that the money supply had shrunk by about $3 trillion since 2008, due to the collapse of the shadow banking system. The goal of the Federal Reserve’s quantitative easing was to return inflation to target levels by increasing private sector borrowing. But rather than taking out new loans, individuals and businesses are paying off old loans, shrinking the money supply. They are doing this although credit is very cheap, because they need to rectify their debt-ridden balance sheets just to stay afloat. They are also hoarding money, taking it out of the circulating money supply. Economist Richard Koo calls it a “balance sheet recession.”
The Federal Reserve has already bought $3.6 trillion in assets simply by “printing the money” through QE. When that program was initiated, critics called it recklessly hyperinflationary; but it did not create even the modest 2% inflation the Fed was aiming for. Combined with ZIRP – zero interest rates for banks – it encouraged borrowing for speculation, driving up the stock market and real estate; but the Consumer Price Index, productivity and wages barely budged. As noted on CNBC in February:

Central banks have been pumping money into the global economy without a whole lot to show for it . . . . Growth remains anemic, and worries are escalating that the U.S. and the rest of the world are on the brink of a recession, despite bargain-basement interest rates and trillions in liquidity.

Boldness Has Genius in It
In a January 2015 op-ed in the UK Guardian, Tony Pugh observed:

Quantitative easing, as practised by the Bank of England and the US Federal Reserve, merely flooded the financial sector with money to the benefit of bondholders. This did not create a so-called wealth affect, with a trickle-down to the real producing economy.
. . . If the EU were bold enough, it could fund infrastructure or renewables projects directly through the electronic creation of money, without having to borrow. Our government has that authority, but lacks the political will.

In 1933, President Franklin Roosevelt boldly solved the problem of a chronic shortage of gold by taking the dollar off the gold standard domestically. President-elect Trump, who is nothing if not bold, can solve the nation’s funding problems by tapping the sovereign right of government to issue money for its infrastructure needs.
_______________
Ellen Brown is an attorney and author of twelve books, including the best-selling Web of Debt. Her latest book, The Public Bank Solution, explores successful public banking models historically and globally. Her 300+ blog articles are at EllenBrown.com. She can be heard biweekly on “It’s Our Money with Ellen Brown” on PRN.FM.
Related
“Print the Money”: Trump’s “Reckless” Proposal Echoes Franklin and LincolnIn “Ellen Brown Articles/Commentary”
Trumping the Federal Debt Without Playing the Default CardIn “Ellen Brown Articles/Commentary”
How Congress Could Fix Its Budget Woes, PermanentlyIn “Ellen Brown Articles/Commentary”
Filed under: Ellen Brown Articles/Commentary Tagged: | Abraham Lincoln, Donald Trump, Greenbacks, helicopter money, infrastructure financing
Justaluckyfool, on November 14, 2016 at 7:45 pm said:

TRUMP, OPEN A DOOR TO A LEGACY TO BE ONE OF THE GREATEST PRESIDENTS OF ALL TIME.
” Reverse, .. an economic recovery program that has privileged the recovery of financial markets and corporate profits has fueled the increase in wealth inequality, in the United States and across the world.”(Mehrsa Baradaran).
Reverse that program, make the money FLOW to “…help form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity,…”

Where We Went Wrong: In God We Trust by JUSTALUCKYFOOL@AOL

November 12, 2016

“Ex nihilo nihil
fit. Nothing comes from nothing..” Frederick Soddy.

After 5,000 years; an answer.
Yes Virginia, banks do create money “Out of Thin Air.”
“Verified by Empirical Evidence”
****Can banks individually create money out of nothing? – The theories and the empirical evidence ☆***by Richard A. Werner
http://www.sciencedirect.com/science/article/pii/S1057521914001070

ABSTRACT:
This paper presents the first empirical evidence in the history of banking on the question of whether banks can create money out of nothing. The banking crisis has revived interest in this issue, but it had remained unsettled. Three hypotheses are recognized in the literature. According to the financial inter mediation theory of banking, banks are merely intermediaries like other non-bank financial institutions, collecting deposits that are then lent out. According to the fractional reserve theory of banking, individual banks are mere financial intermediaries that cannot create money, but collectively they end up creating money through systemic interaction. A third theory maintains that each individual bank has the power to create money ‘out of nothing’ and does so when it extends credit (the credit creation theory of banking. The question which of the theories is correct has far-reaching implications for research and policy. Surprisingly, despite the longstanding controversy, until now no empirical study has tested the theories. This is the contribution of the present paper. An empirical test is conducted, whereby money is borrowed from a cooperating bank, while its internal records are being monitored, to establish whether in the process of making the loan available to the borrower, the bank transfers these funds from other accounts within or outside the bank, or whether they are newly created. This study establishes for the first time empirically that banks individually create money out of nothing. The money supply is created as ‘fairy dust’ produced by the banks individually, “out of thin air.”

” This study establishes for the first time empirically that banks individually create money out of nothing. The money supply is created as ‘fairy dust’ produced by the banks individually, “out of thin air.”
AFTER more than 80 years-Vindication for the “crank” Frederick Soddy.
” It is important to realize that whichever way it works, it is a case for the bank of
” Heads I win, tails you lose “…”…(U)sually by some such lying phrase as” Every
loan makes a deposit”
“Genuine and Fictitious Loans.
For a loan, if it is a genuine loan, does not make a deposit, because what the borrower gets the lender gives up,
and there is no increase in the quantity of money, but
only an alteration in the identity of the individual owners of it. But if the lender gives up nothing
at all. What the borrower receives is a new issue of money and the quantity is proportionately
increased. So elaborately has the real nature of this ridiculous proceeding been surrounded with
confusion by some of the cleverest and most skillful advocates the world has ever known, that
it still is something of a mystery to ordinary people, who hold their heads and confess they
are “unable to understand finance.” It is not intended that they should.”(The Role Of Money)

“Where We Went Wrong-“In God We Trust.”

“Capitalism is the “best” system to date devised by mankind. As it is administrated, perhaps, is where the “flaw” is manifested. If capitalism used its Central Bank properly, that is for the betterment of the common good, with equality and justice for all, capitalism could be the greatest achievement of mankind.”
” Did Soddy get it right?”
“Give Soddy his just due.”
.”Money is a concept” when ‘coined’,’printed’, or digital form (an entry on a balance sheet) it is a physical representation.
As Soddy stated,
“Money now is the NOTHING you get for SOMETHING before you can get ANYTHING,”
Frederick Soddy (The Role Of Money.”
Economists mention the “Fatal Flaw,”” BOOM & BUST” yet do not ‘see it coming’
ASK again,” Did Soddy get it right?”
The “Fatal Flaw” is the ability of mankind to exponentially create more “Fictitious” money then “Genuine ” money; when unrestrained
you have-inflation-systemic failure, or monetary collapse.

There exists in this world, this universe more wealth than mankind could possibly use. Man has been given dominion
over this wealth. Mankind can not create any wealth and must distribute that which already exists.
Wealth is SOMETHING of value.
ALL Wealth on earth and in the universe exists and is expanding.

“As the world’s population has gone up, the total amount of product available per capita…has gone up.
…exactly the opposite of what…predicted. Indeed, the correlation of increased population with increased
per capita product is so strong that any scientist examining these data would immediately suspect causality…
.(S)o the more people there are, the faster the rate of technological progress, which multiples product per capita,
and whose are cumulative.
So the more of us there are, the more there will be to go around.”(The Human Factor, Robert Zubrin…2015)

We now no longer believe “In God We Trust” as having created all wealth that is needed by mankind.
Yes, we have lost our TRUST In God; now We Trust In Man to create “wealth” from nothing.
” All smoke and mirrors.
All designed with ONE intention: ‘ To Hide The Issuers Alchemy ‘. It does not matter how the ‘money’ is coined, printed, or digitized – It is not wealth. When one understands this basic universal law, they will know of this deceit.”(SODDY)
Wealth is SOMETHING of value.
ALL Wealth on earth and in the universe exists and is expanding.

Money now is the NOTHING you get for SOMETHING (a created value)
before you can get ANYTHING (a created value).
Money is a receipt for SOMETHING (a value given up).
Money can not create ANYTHING (an exchangeable value).
“The Role Of Money”
Frederick Soddy,
“The Monetary System Impedes the Flow.
Since, in all monetary civilizations, it is money that alone
can effect the exchange of wealth and the continuous flow of goods and services
throughout the nation, money has become the life-blood of
the community, and for each individual a veritable license to live at all.
The monetary system is the
distributory mechanism, and this reading of
history, therefore, supports up to the hilt the con-
clusions of those who have made a special study
of what our monetary system has become. It is
the primary and infinitely most important source
of all our present social and international unrest
and for the failure, hitherto, of democracy.

A very slight knowledge of our real existing
monetary system makes it abundantly clear that,
without democracy knowing or allowing it, and
without the matter ever being before the electorate
even as a secondary or minor political issue, the
power of uttering money has been taken out of
national hands and usurped as a perquisite by
the moneylender. Practically every genuine
monetary reformer is unanimous that the only
hope of safety and peace lies in the nation
instantly resuming its prerogative over the issue
of all forms of money, which, legally, it has never
surrendered at all.”

So how is this, to most people not understood, that money is wealth while at the same time
money can not increase wealth, but merely store or exchange what has already been
given up.
What is the “basic flaw?”
Why is that flaw not understood?
Soddy answered these questions, ““So elaborately has the real nature of this ridiculous proceeding been surrounded with confusion by some of the cleverest and most skillful advocates the world has ever known, that it still is something of a mystery to ordinary people, who hold their heads and confess they are” unable to understand finance“. It is not intended that they should.”

As Frederick Soddy has stated as an axiom:
“**** THE THEORY OF MONEY. VIRTUAL
WEALTH….

“WHAT is Money? Let us commence our
study of the role of money by a compre-
hensive definition of what modern money is.

Money now is the NOTHING you get for SOMETHING
before you can get ANYTHING.

Our task is to understand all that this implies.
The definition is, of course, an economic one
referring to ordinary transactions such as earning,
buying, and selling among ordinary folk generous
uncles and other voluntary benefactors not being
under contemplation and the nothing, something,
and anything of the definition refers to things of
real value in themselves usually termed goods and
services, or simply wealth, unless hair-splitting
or purely technical distinctions turning on the
precise definition of wealth is involved. More-
over, it refers to ordinary people,
in the sense of those who neither have the opportunity nor the
power of uttering money themselves. ”

Nowhere is there a mandate to create wealth (money),
the “giving up of SOMETHING before you can get ANYTHING (money).”
The Fatal Flaw is that we do not recognize that MONEY AS WEALTH must be in existence before it can be created (issued). We are flawed in calling…bank issuance MONEY when that issuance is made “out of thin air.” BTW, that has been empirically proven as being ‘credit money’. The same “word”-“money” is used with two opposite meaning. One as a receipt or a value of wealth that is to be redeemed at a future time for wealth. The other use is a copy of a receipt (made out of thin air,’Fairy Dust”), a copy of wealth already owned by someone else.
ALL wealth has already been created, the entire expanding universe.
A Monetary Sovereignty can not create wealth. An MS can by law ‘coin or print’ transferable receipts of wealth in a transferable measured form for its sovereignty.
A Monetary Sovereignty should be allowed to “borrow” from the wealth of the entirety
at zero cost, use that ‘borrowed’ money to help fund “a more perfect union.
Remembering that it must put that money back into its secure holdings so the lawful owners may redeem their individual value upon demand. A Monetary Sovereignty should use for the betterment of all the members of the community, this just method to produce a revenue stream; to charge interest to fund the sovereignty!
We must go back to “IN GOD WE TRUST.”
We have dominion over this universe, all its wealth. As mankind exponentially grows so does the universe; a perfect system.
Only we can screw it up!
Our forefathers understood what “In God We Trust” meant
An HONEST CENTRAL BANK can not, or shall not create wealth.
An honest Central Bank is the guardian of the wealth given up,
…the sole and only entity that may issue receipts on the community wealth,
…must operate with transparency,
…be held accountable.

“THEY” have used the same words to create different meanings!
“MONEY” as a receipt of wealth; “MONEY” as a creation of wealth “out of thin air”.
Nowhere is there a mandate to create wealth (money), the “giving up of SOMETHING
before you can get ANYTHING (money).”
The Constitution allows Congress
…TO BORROW
…TO ‘Coin’
…TO punish counterfeiting.
This is clear in that borrowing, coining, or printing
is authorized of that which is already “wealth given up” and this is also clear
“other then that is ‘counterfeit.”

*** U.S. Constitution.
ARTICLE . 1. ..SECTION. 8.
“The Congress shall have Power …(A). To borrow Money on the credit of the United States;
…(B).To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
The Congress shall have Power …(C).To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;…”
What the Constitution declares:
****(A) “TO BORROW”. It may not ‘create’ Genuine money; that is SOMETHING already owned by individuals and the community.N.B., There is no reason (or request) to pay interest when borrowing from your own sovereign wealth.
**** (B) “TO COIN MONEY, REGULATE.It may either by printing, making stamped tokens, digital dots maintain and control that standard of Weights and
Measures,i.e., the physical representative form of Genuine Money.
**** (C)”To provide for the Punishment of counterfeiting…”
No entity may “create out of thin air” and turn it into SOMETHING that is guaranteed to be redeemable as Genuine money.

SODDY, “Let us right from the start get the signs right.
The owner of money is the creditor and the issuer of it is the debtor, for the owner of money gives
up goods and services to the issuer. In an honest
money system, the issuer of money who gets
for nothing goods and services would do so on
trust for the benefit of the community. In
a fraudulent money system, he does so for the
benefit of himself. It makes no difference whether
he passes off the money and puts it into circulation
himself or lends it at interest for others to pass off
for him. In every case what he so gets to spend or
lend is given up by someone else. Ex nihilo nihil
fit. Nothing comes from nothing…”

“Capitalism is the “best” system to date devised by mankind. As it is administrated, perhaps, is where the “flaw” is manifested. If capitalism used its Central Bank properly, that is for the betterment of the common good, with equality and justice for all, capitalism could be the greatest achievement of mankind.

THE K.I.S. SOLUTION TO DECREASE INEQUALITY GAPS, POVERTY, and NATIONAL DEBT.
ONE SENTENCE -A REPUBLIC DEMOCRATIC CAPITALISTIC ECONOMY WITH An HONEST CENTRAL BANK.
AN HONEST CENTRAL BANK (GUARDIAN) THAT BORROWERS MONEY FROM ITS LAWFUL OWNERS, LENDS IT AND CHARGES INTEREST (TAX) TO SECURE AN INCOME STREAM TO TURN OVER TO CONGRESS TO USE FOR THE BETTERMENT OF ALL.

Read more:…email…. justaluckyfool@aol.com
or click on …
https://bestsolutionsfl.wordpress.com/