Mitchell’s laws: Reduced money growth never stimulates economic growth. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Economic austerity causes civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
Ten Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
O.K., now that I have given the debt hawks heart attacks, let me assure you I am aware of the limit to deficit spending: It is inflation. So exactly where is that limit? No one knows, especially since for the past 40 years, inflation has not been related to deficit spending, but to oil prices. (Click here)
So my recommendation is to begin #1-#10, slowly and sequentially, today, and if/when inflation starts to occur, institute the first inflation-fighting program the Fed always uses: Raise interest rates. In the unlikely event that doesn’t do enough, begin to cut deficit spending.
We have total control over inflation, so there is no reason to cut today’s deficits for fear that some time in the unknown future, we may have inflation. We must feed the starving patient, now. Later, if ever he becomes fat, we always can cut back on his food.
By balancing interest rates and deficit spending, we can hold inflation at any level we choose, while accruing the benefits of increased money creation.
Rodger Malcolm Mitchell
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia. The key equation in economics: Federal Deficits – Net Imports = Net Private Savings