Mitchell’s laws: The more budgets are cut and taxes inceased, the weaker an economy becomes. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity = poverty and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
So far, it’s been a great week for the public, a great week for Chicago and a great week for America. We can be proud.
The public has used its First Amendment voice, the Chicago police controlled the situation, with scant violence, while being spat on, called names and had bottles and batteries tossed at them. America demonstrated a tolerant democracy.
In reality, it’s been a terrible week, because after much sound and fury, nothing much was accomplished. At great expense and effort, NATO did little it couldn’t have done by staying home. Virtually all the work was done before they got here. And the protesters will go home to a world identical with the one they left.
As I watched the protesters in Chicago, my heart went out to them. I personally agree with most of their beliefs about big business, government and particularly the 1% tyranny over the 99%. Yet, I feel their message is confused, unfocused and devoid of solutions, and their method is self defeating. And like most people, I look upon war as a disgrace. So?
Surely, the marches didn’t change many minds. The people who agreed with the marchers’ arguments, still agree. Those who disagreed think the marchers are a bunch of naive rabble-rousers, using the NATO conference as a substitute for wild Spring Break in Florida.
The politicians ignore the protesters, because there is no bribe money on the table. And the 1% sit in their summer homes and laugh at the futility.
A peaceful protest is like a non-embryonic pregnancy – much effort with no results. A violent protest leads, often as not, to either a more violent push-back by the 1%, or by an even harsher totalitarianism.
Protests have a bad track record for long-term accomplishment.
The Chicago protests seemed to involve two desires: An end to war and an end to income inequality. The end-the-war segment had its humorous moments: the Syrian contingent asking NATO to impose a no-fly zone over Syria (to help prevent the massacres by the Syrian government), standing next to the pacifist group asking NATO to stop shooting at people. How NATO is to do both, was not explained.
The end-income-inequality group seemed somewhat misplaced, as NATO’s relationship to the income gap seems tenuous at best. In short, the protests meant little, will accomplish little, and if anything, will help the media impart a negative impression of the protesters’ causes.
Theoretically, the 99%, having the voting power, should be able to enforce their will. But, the politicians, realizing the 99% doesn’t know what their will is, continue to nominate 1% sympathizers. Voting for Romney is a disaster for the 99%. Voting for Obama is somewhat less a disaster, but a disaster nevertheless. And in America, 3rd party candidates seldom win.
So what’s to be done?
I cannot speak to the anti-war marches, because the reasons for war are so diffuse, different in every situation. But I will speak to the #Occupy complaint about the income gap between the 1% and the 99%.
The fundamental problem facing the 99% is this: They do not understand Monetary Sovereignty. They actually believe the federal government is broke, the federal deficit must be reduced, the federal debt is a burden, social services need to be cut and additional federal spending will cause inflation.
Based on these beliefs, the 99% is in perfect harmony with the 1%. They are like a woman who believes being raped is a proper punishment for being pretty. The 1% enjoys raping the 99%, and the 99% believe rape is necessary.
Since the problem is ignorance, the solution is to teach the facts. And that begins with the media. Because the media are owned by the 1%, merely contacting the media isn’t enough. It helps, and we should continue to write, Email and call, but it isn’t enough. The media have to be forced to listen, embarrassed not to listen.
The protests should not target NATO, which doesn’t care, or the government officials, who care even less. The protest marches should target the media.
A plan outline:
First, #Occupy leaders must learn Monetary Sovereignty, not just learn but be prepared to defend and to teach it. They must learn how and why:
1. The federal government became Monetarily Sovereign on August 15, 1971. Its finances are unlike those of state and local governments, business, the euro nations, you and me.
2. Monetarily Sovereign governments create money by spending. This money creation misleadingly is termed “deficits.” It should be called “economic surpluses, ” and economic surpluses are necessary to grow the economy.
3. The federal government neither needs nor uses tax dollars. Unlike state and local taxes, federal taxes do not pay for spending. Federal taxes do not pay for Social Security, Medicare, Medicaid, Congress, the Supreme Court or the White House. Federal spending does not cost taxpayers one cent.
4. The federal government’s ability to spend is limited only by inflation. But, despite huge “deficits,” federal spending never has caused inflation. And inflation can be controlled by interest rates.
Second, the #Occupy leaders must teach Monetary Sovereignty to their members. Formal and informal schooling should be arranged. Contact such educators as Randy Wray, Bill Black, Stephanie Kelton, and Matt Forstater at UMKC. Ask for advice.
Third, #Occupy must target the media. Contact the media repeatedly. Flood with Emails, snail mail, personal contacts. And march against the media. A hundred knowledgeable, sign-carrying people, standing on Chicago’s Michigan Avenue, in front of the Chicago Tribune headquarters, demanding that the Tribune print the Monetary Sovereignty facts, will do more than all that has been accomplished to date.
Force the media to educate the public, which will give the 99% the information and the voice they have been missing. And when the 99% has a voice, the politicians will listen.
The result: An informed public, a generous Social Security, Medicare for all, more support for education, research, infrastructure, ecology, a healthy, growing economy, and a smaller gap between the 1% and the 99%.
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. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption + Net exports