Mitchell’s laws:
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor,
which leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.

●The penalty for ignorance is slavery.
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Here are your handy recession predictors. Save the link to this page. The graphs automatically will update.

We tend to have recessions when the year-to-year percentage change of Gross Private Domestic Investment goes down, especially when it falls below zero:
Monetary Sovereignty
We tend not to have recessions when the percentage change is rising.

We tend to have recessions when the total of Private Investment and Saving is on the downswing:
Monetary Sovereignty

We tend to have recessions when the percentage change in the annual ratio between Gross Private Domestic Investment and Gross Private Savings is falling, especially when it falls below zero.
Monetary Sovereignty

And, as we’ve seen in past articles, recessions tend to follow years of decreasing Federal Debt:
Monetary Sovereignty.

Finally, Federal Deficits – Net Imports = Net Private Savings
and
Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

Given that the federal government is determined to reduce the federal deficit, which will involve reducing Federal Spending and increasing federal taxing, what do you think will happen to Gross Private Investment, the total of Investment and Saving, the ratio between Investment and Saving, and Federal Debt? What effect will there be on GDP?

You can pose that question to your favorite Congressperson and newspaper.

Rodger Malcolm Mitchell
Monetary Sovereignty

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Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%

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 Imports

#MONETARY SOVEREIGNTY