–The world is coming to an end. This time I really mean it. Trust me.

The debt hawks are to economics as the creationists are to biology. Those, who do not understand Monetary Sovereignty, do not understand economics. If you understand the following, simple statement, you are ahead of most economists, politicians and media writers in America: Our government, being Monetarily Sovereign, has the unlimited ability to create the dollars to pay its bills.

The world is coming to an end. This time I really mean it. Trust me with your money.

Does the following article remind you of the debt hawks telling us the federal deficit and debt are “unsustainable” and a “ticking time bomb” (their favorite words)?

NEW YORK (CNNMoney) 5/19/2011

By now, you’ve probably heard of the religious group that’s predicting the end of the world starts this weekend. Harold Camping and his devoted followers claim a massive earthquake will mark the second coming of Jesus, or so-called Judgment Day on Saturday, May 21, ushering in a five month period of catastrophes before the world comes to a complete end in October.

At the center of it all, Camping’s organization, Family Radio, is perfectly happy to take your money — and in fact, received $80 million in contributions between 2005 and 2009. Camping founded Family Radio, a nonprofit Christian radio network based in Oakland, Calif. with about 65 stations across the country, in 1958.
[. . . ]
Camping first inaccurately predicted the world would end in 1994. Even so, he has gathered even more followers — some who have given up their homes, entire life savings and their jobs because they believe the world is ending.

Anyone believing preachers, whose predictions never come true, is a dupe. We laugh at such people, or pity them. We feel the same about the people who believe those the seers who tell us the federal debt is a “ticking time bomb.”

(Hello false prophets: N.Y. Times, David Ibata, James Warren, Lexinton Herald-Leader, L.A. Times, Richmond Times, Dallas Morning News, Fortune Magazine, Bloomington Pantagraph, Ross Perot, Kansas City Star, Porter Stansberry, The Bradenton Herald, Providence Journal, NewsMax, USA Today, Reason Alert and the hundreds of others who have used that term to describe the federal deficit or debt)

Our laughter and pity also go to the dupes who believe the false prophets telling them the federal debt is “unsustainable.” (Too many to mention)

The debt-hawks have been wrong every hour of every day, every month and every year for at least the 70 years I’ve documented. That’s a ton of wrong, although dupes don’t seem to notice. The next time you’re tempted to believe a debt-hawk about the federal deficit or debt, send some money to Harold Camping – or wait, better yet, send it to me. The world is coming to an end. Believe me.

Rodger Malcolm Mitchell

No nation can tax itself into prosperity, nor grow without money growth. It’s been 40 years since the U.S. became Monetary Sovereign, , and neither Congress, nor the President, nor the Fed, nor the vast majority of economists and economics bloggers, nor the preponderance of the media, nor the most famous educational institutions, nor the Nobel committee, nor the International Monetary Fund have yet acquired even the slightest notion of what that means.

Remember that the next time you’re tempted to ask a dopey teenager, “What were you thinking?” He’s liable to respond, “Pretty much what your generation was thinking when it screwed up my future.”


6 thoughts on “–The world is coming to an end. This time I really mean it. Trust me.

  1. Rodger, I have a question on the mechanics of an entity purchasing t-securities…

    When funds are exchanged to purchase a t-security, are those funds converted into the value of the security, which will be converted back into cash upon maturity plus interest? or are those funds spent elsewhere, leaving a debt plus interest?

    In other words, does this process just absorb liquidity in the market at the cost of the interest payment, or are we truly borrowing, spending and ultimately having to account for the full amount of the debt?


  2. America’s inappropriately named “borrowing,” involves the creation of T-securities and the simultaneous destruction of dollars. The redemption of T-securities is the opposite: The creation of dollars and the simultaneous destruction of T-securities.

    The process temporarily reduces liquidity (T-securities are less-liquid forms of money); then when the T-securities are redeemed, the liquidity is restored. Meanwhile, interest payments increase liquidity by the amount of the interest.


    1. Thank you for your answer.
      When one hears the term “borrows” one thinks of money that has yet to come into existence. “We’ll have to work to pay back that debt.”
      In the process that you describe, we’re merely changing the form of money that’s already out there. The term “borrowing” is grossly inappropriate. China, for example, is either holding a Trillion worth of dollars we’ve sent them for sneakers or they’re holding it in form of securities.


  3. Broil,

    Yes, you understand perfectly. So-called federal “borrowing” simply is an asset swap. Now if only you could help the media and the politicians understand.

    Another thing they misunderstand: It widely is believed federal debt is the total of federal deficits. While by law, that is arithmetically true, deficits and debt are not operationally related.

    There can be deficits without T-securities (debt), and there can be T-securities without deficits.

    So federal “debt” is an unnecessary worry, as is debt/GDP and other things connected with federal debt.

    Rodger Malcolm Mitchell


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