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. Austerity breeds austerity and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
At this point, #Occupy Wall Street reminds me of an angry baby who has not yet learned to talk. It’s hurting, but does not understand the problem is an open diaper pin. So it screams and kicks its feet, hoping that somehow, mother will find the solution. So far, mother thinks the baby is just being bad.
#OWS first must to begin to understand Monetary Sovereignty, else they easily will be talked out of any goals they produce. The “1%” will ask them how they intend to pay for what they want, and there will ensue a fruitless discussion about whom to tax and how much.
#OWS can march against poverty until the cows come home, and nothing will happen until they themselves understand that the federal government has the unlimited ability to support the poor, the sick, the homeless, the uneducated, the cheated — all without taxing the wealthy.
So long as #OWS believes the federal government’s funding is limited, the “1%” will have no difficulty making #OWS look like lazy, irresponsible fools, looking to steal hard-earned money from the rich.
Last week, I was asked to provide Occupy Wall Street with recommendations for goals, so I sent the following: (You have seen this before at OWS goals):
The goal is not to punish the rich or to destroy businesses, or to eliminate capitalism. The goal is to lift the lower income classes, and the means are:
1. Eliminate FICA (Click here)
2. Provide free Medicare — parts A, B & D — for everyone, from cradle to grave.
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Provide long-term nursing care insurance for everyone
5. Provide free education (including post-grad) for everyone
6. Provide a salary for everyone attending school (Click here)
7. Eliminate corporate income taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America
Begin to institute #1-#9 today, in the order shown, and if/when excessive inflation starts to occur, institute the first inflation-fighting program the Fed always uses: Raise interest rates. If that doesn’t do enough, begin to cut deficit spending.
But without an understanding of Monetary Sovereignty, these goals will make little sense.
Predictably, the “1%” response to the protests has been calls for “law and order,” the same words used to justify the bashing of freedom marchers in 1965, on the road from Selma, Alabama to Montgomery. And today we see the same thuggery by the police, all over America.
(What is it about police and the military, all over the world, that they unquestioningly will use angry force against their peacefully protesting friends and neighbors, if told to do so, or even if not told to do so? Why are police so afraid of these young people? A good psychological study of the military is needed, here.)
At any rate, this protest is proceeding exactly as predicted: Protests begin in one small area, to be copied in other areas. The protests are led by the young, whose idealism remains intact. The military (police, national guard, army) respond with excessive force, causing revulsion among the older and initially aloof Americans, who deep in our hearts, recognize the difference between good and evil.
Here is a recent example of the predictable police overreaction and brutality:
Eventually, the politicians may recognize the swing in voter sentiment, and begin to back the goals of the movement. But there have to be goals, and before the goals there must be understanding. So far, the politicians don’t know what line to fall in. They can smell the votes, and are just waiting for an excuse.
I award #Occupy Wall Street my 59th dunce cap, for not even trying to understand basic economic reality, i.e. Monetary Sovereignty, and for protesting without presenting realistic goals.
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