The scam even YOU will fall for

Here is a scam that even those who understand Monetary Sovereignty will fall for:

News article: President Donald Trump says the government might start cutting checks again, but this time, not for COVID-19 relief or tax refunds. Instead, the money could come straight from the tariffs his administration has slapped on foreign imports.

In his words, “We have so much money coming in, we’re thinking about a little rebate.”

And by “little,” he means from a pool of more than $100 billion in tariff revenue already collected this year.

Sounds good, right? Some of the dollars those tariffs are taking out of your pocket will come back in the form of rebates. What could be wrong with that?

It’s 100% misleading.

There is no “pool of tariff revenue.” The federal government has infinite dollars.

Every dollar that comes to the government disappears into an infinite pool of funds.

Fed Chairman Alan Greenspan: “A government cannot become insolvent with respect to obligations in its own currency. There is nothing to prevent the federal government from creating as much money as it wants and paying it to somebody. The United States can pay any debt it has because we can always print the money to do that.”

Fed Chairman Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. It’s not tax money… We simply use the computer to mark up the size of the account.

Fed Chairman Jerome Powell stated, “As a central bank, we have the ability to create money digitally.

The St. Louis Fed: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e., unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational.” 

If Trump wanted to send a “rebate” to Americans, he could do it tomorrow, simply by having his acquiescent Congress vote for it.

There, quite literally. is no limit to how much the federal government can send to anyone and everyone, today, tomorrow, or any time.

Then there is this nonsense:

The US government is raising record-high revenue from tariffs, thanks to President Donald Trump’s embrace of new import levies. The White House may exaggerate the potential, but independent budget analysts agree the new tariffs may bring trillions of additional dollars into government coffers over a decade.

The United States government has the potential to collect US$2trn or more in tariff revenue for its coffers in the next decade from President Donald Trump’s new import levies, according to economic and budget researchers.

Since his second presidential term began in January, Trump has ordered a series of new import tariffs on a global, per-country and per-item basis. Among the president’s stated goals is to raise enough money to offset, or even eliminate, federal income taxes.

The independent analyses do not envision any possibility that tariffs, even under the highest plausible outcome, can replace the income tax. The US collects approximately US$2trn in income taxes annually.

There are no “coffers.”

This situation is similar to the ocean boasting about a tiny thimbleful of water being added to it.

However, that analogy isn’t quite accurate because even the ocean doesn’t have an infinite supply of water, while the U.S. government has an unlimited capacity to create dollars.

The government has the power to create a trillion, trillion, trillion dollars today, if it chooses to, simply by pressing a computer key.

Therefore, the government does not need to “raise” money to eliminate federal income taxes; it could eliminate those taxes immediately.

The purpose of federal income taxes is not to supply the federal government with money. Instead, the purposes of federal taxes are:

1. To control the economy by taxing what the government wishes to discourage (Examples: “Sin taxes on cigarettes, liquor, etc.)  and by giving tax breaks to what the government wishes to reward (Examples: Tax breaks for charitable contributions, and tax loopholes for the rich.)
2. To assure demand for the U.S. dollar by requiring dollars to be used for tax payments.

Unlike state and local governments, which rely on tax dollars, the federal government does not need or use tax revenue.

Rather than taking tariff dollars from the public, the federal government should simply vote to eliminate poverty by funding comprehensive, no-deductible health care insurance and generous Social Security benefits for every man, woman, and child in America.

No, this wouldn’t cause inflation any more than Trump’s so-called “rebates” would. Inflation is caused by a shortage of essential goods and services, and it can be alleviated through federal spending to address those shortages.

At long last, when will the media, the politicians, and the economists acknowledge the federal government’s infinite supply of dollars?

God, this is so frustrating.

Rodger Malcolm Mitchell

Monetary Sovereignty

Twitter: @rodgermitchell

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MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell;

https://www.academia.edu/

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A Government’s Sole Purpose is to Improve and Protect The People’s Lives.

MONETARY SOVEREIGNTY