161 results for author: Dave Svetlik

SODDY, FULLER AND MODERN MONETARY THEORY

Portions of this article have been previously published in Middle Wisconsin but the concepts are hopefully useful in understanding current economic issues confronting America and the world. Born in the late 1800’s, Frederick Soddy and R. Buckminster Fuller led extraordinary lives. Soddy won the Nobel Prize in chemistry in 1921 and Fuller became known for his work in architecture, the geodesic dome and visionary thinking. Soddy was a British citizen, Fuller an American. Both were deeply rooted in science and the laws of physics, and both spent the latter half of their life trying to apply their knowledge of physical reality to making the world ...

THE UNIVERSAL ECONOMY UNIT XVII: MAKING THE WORLD WORK FOR EVERYONE

THE UNIVERSAL ECONOMY UNIT XVII: MAKING THE WORLD WORK FOR EVERYONE By Dave Svetlik Humanity continues to operate under the false assumption that there “isn’t enough to go around,” hence someone must go without and lead a life of poverty and deprivation. It is this false assumption that leads to “you or me,” “every man for himself” reptilian-reflexive thinking that in the end becomes a self-fulfilling prophecy. When the prevailing socioeconomic framing is that some must go without so that others may be rich, the synergetic opportunities for universal success are lost. Greed, hoarding, and corruption rule the day and the very ...

THE UNIVERSAL ECONOMY UNIT XVI: THE MISLEADING USE OF TRADITIONAL ACCOUNTING/ECONOMIC TERMINOLOGY

The U.S. Government never – ever – borrows money. The U.S. Government is never – ever – in debt. Ah, the heresy! How can one make such a ridiculous statement! Look at the National Debt Clock! It’s the end of the world! We’re mortgaging our great, great, great, great grandchildren into infinity! China will own us! It’s the end of the world!!!! Be afraid! Be very afraid! And on and on the insanity goes. But let us ask ourselves - - - since the U.S. Government is the Constitutionally authorized creator of the nation’s money, why on Earth would it ever borrow money to fund its own operation? Let us ask ourselves - - - if the U.S. ...

THE UNIVERSAL ECONOMY UNIT XV: THE CRITICAL NEED FOR WAGE EARNING AMERICANS TO UNDERSTAND THE FEDERAL GOVERNMENT “DEFICIT”

It was the same fairytale spouted by President Ronald Reagan when he sold us the con-job of “trickle down” economics - - - “cutting taxes for the rich and corporations will lead to an economic boom, government revenue will increase, and everyone will live happily ever after.” Unfortunately, fairytales aren’t true and when congress once again cut taxes for the rich at the end of 2017, the result was the same as it has always been (and what the politicians voting for it know full well it will be). It Grew the Federal Government Deficit. But when it comes to making the rich richer, few in congress care that it will increase the “deficit....

Santa Claus and the Grinch

The annual Federal Government “deficit,” is the difference between the money Congress orders the US Treasury to create out of nowhere to spend into the economy and the money the US Internal Revenue Service removes from the economy through taxes. The Federal Government must operate in a “deficit” or there will be no money circulating in the economy to conduct private business. The “deficit” is a number on the Treasury’s computer screen. Nothing more. Since 2016 the Republican Party has been in full control of our federal government. They own the Presidency and have had majorities in the Senate and the House of Representatives. Not once ...

UE UNIT XIV Ignoring common sense and arguing with the laws of physics

Image yourself a passenger on an ocean liner crossing the Atlantic from Europe to New York City. The voyage goes well until one of the ship’s boilers explodes just 20 miles from the shores of America. A massive hole is blown in the side of the vessel. Water rushes in and the ship begins to sink. There will be no time for rescue help to arrive. Thankfully the weather is calm and there are more than adequate lifeboats for everyone aboard. Passengers gather near the sides of the ship as the lifeboats are set to launch. Just as everyone prepares to climb into the boats the captain’s voice comes over the loudspeakers. People are told that only the ...

UE UNIT XIII The deadly false belief that taxes pay for spending

We must get this through our heads. At the Federal Level: “TAXPAYER DOLLARS” DO NOT PAY FOR GOVERNMENT SPENDING. THE US TREASURY IS THE CONSTITUTIONALLY AUTHORIZED CREATOR OF THE NATION’S MONEY. GOVERNMENT SPENDING IS THE SOURCE OF TAXPAYER DOLLARS. NOT ONE PENNY OF TAXPAYER MONEY IS EVER NEEDED, OR USED, TO PAY FOR FEDERAL GOVERNMENT SPENDING. Whenever progressives or their leaders at the federal level thoughtlessly accept the false premise that taxes pay for government spending, they are effectively saying the Government of the United States of America has no money of its own and must go begging to the private sector for anything it ...

THE UNIVERSAL ECONOMY UNIT XII: THE RICH CLASS WAR ON SOCIAL SECURITY

ec “Social Security” is unusual because unlike most other government programs, we pretend a specific tax finances it. That makes it easy to mentally match payroll tax revenues and benefit payments, and to calculate whether the 75- year actuarial balance is positive or negative. No one knows or cares whether the defense program runs actuarial deficits -- because we don't pretend that a particular tax pays for defense. In reality, Social Security benefits are paid in exactly the same way that the government spends on anything else - by crediting somebody's bank account. Social Security cannot be any more financially constrained than any other ...

THE UNIVERSAL ECONOMY UNIT XI: RICH CLASS WAR ON AMERICA – AVOIDING “HOW ARE YOU GOING TO PAY FOR IT” TRAP

We tend not to see the obvious. In Unit X of this series we saw how whenever government spending or increasing the Federal deficit benefits the rich, not a question is asked. Congress approves a blank check, the US Treasury creates, out of nowhere, the requested money, and the US Federal Reserve Bank issues the funds into the economy. When 16 trillion government created fiat dollars are needed to bail out corrupt Wall Street banks, not a single politician questions, “How are you going to pay for it?” When the wealthy CEO’s from arms corporations want a 100-billion-dollar annual increase in government military spending, not a single politician ...

THE UNIVERSAL ECONOMY UNIT X: THE SECOND STEP IN FIGHTING THE RICH CLASS WAR – QUIT ACCEPTING THE LIE

We, as working citizens of America, are led to believe a great deal of misinformation about the monetary functioning of our nation. It serves the rich class waging economic war on us. To understand this, we must take a moment to review the operation of the United States as a sovereign nation utilizing a sovereign fiat currency: The U.S. Government, through the U.S. Treasury and Federal Reserve Bank (the Fed) is the creator of all of the nation’s money. The U.S. Government can never run out of money. Subject to controlling inflation/deflation, there is no limit to how much money the government can create. The U.S. Government never has to ...