Steve Mnuchin stated;
"We can't have the Federal Government keep subsidizing the states."
Which is a very unconstitutional thing to say for two reasons:
- The States fund the Federal Government.
The Federal Government is a Federation of "The several states" and it has always been the regulatory arm of "them." So this is a very anti "states rights" statement... and abusive.
- The States ceded the power to coin money in the Constitution and the power to issue notes as money. This was a delegation for the sake of efficiency and common-wealth.
Therefore the money power rests with the Federal Government, which in the Constitutional Government scheme is in service to These, not their tyrannical overseer. The Federal Government under the 14th amendment has some oversight rights as the collective will of the whole body of the people of the United States, but because states don't have the independent power to issue notes to pay their debts it should be the role of the Treasury through a well constituted Federal Reserve to front the money. Then taxes can collect any unmerited or unearned incomes from their spending on infrastructure and other citizens needs. Mnuchin's schema would treat them like Greece, allowing taxes and Wall Street to siphon off wealth and then punishing them for the vanishing tax receipts from a vanishing tax base. It would push all the costs of government onto States while continuing to let Wall Street eat the revenues.
Mnuchin's plan treats States as Colonies. He and Trump seem to be testing it on Puerto Rico. The combination of centralization and wealth siphoning by loan is toxic. We need to stop him. Mnuchin's idea is poisonous.
I've got a lot more to say so I may update this post later with more information.