Mitchell’s laws: To survive, a monetarily non-sovereign government must have a positive balance of payments. Economic austerity causes civil disorder. Reduced money growth cannot increase economic growth. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.

Have you read about it?

Huff Post Politics, 9/17/11, By Mary Bottari: Janesville, WI — As President Obama gets ready for his big jobs speech Thursday, America’s nurses have a message for him. “Heal America, Tax Wall Street!” the signs read as nurses rallied in front of 61 Congressional offices this week.
“It’s time for the Wall Street financiers who created this crisis and continue to hold much of the nation’s wealth to start contributing to rebuild this country and for the American people to regain their future,” explained Rosanne DeMoro, Executive Director of National Nurses United, in a press release.

The nurses are joining groups across the nation and around the world calling for a financial transaction fee on high-volume, high-speed Wall Street trades, to tamp down dangerous gambling and to raise revenue for heath care, jobs and other critical needs.

Popular misunderstanding #1: Federal taxes pay for federal spending. Wrong. “Rebuilding this country for the American people” does not require any federal taxes to be increased. Money is the lifeblood of an economy, and a financial transaction fee will reduce the money supply, leaving less available for rebuilding this country.

They found that CEOs are hording their wealth; the gap between what workers are paid and what their CEOs are paid is rising fast. In 2009, it was 263-to-1. In 2010, it was 325.

Popular misunderstanding #2: Taxing the rich helps the poor. Wrong. The only thing that helps the poor is increasing the incomes of the poor. Reducing the incomes of the rich doesn’t do that. It does the opposite, by reducing the money supply.

. . . at 25 of these firms, CEO compensation was greater than the company’s entire federal corporate income tax bill. Corporate free-loader, Prudential CEO John Strangfeld, made $16.2 million in 2010, but his entire company got a $722 million refund from the federal government.

Popular misunderstanding #3: A business’s taxes should to exceed the pay of any one employee. Wrong. There is no connection between the two. In fact, business taxes should be eliminated. They are the ultimate anti-stimulus. How taxing business helps the economy is a question never answered.

“Where’s the shared sacrifice?” asked the nurse who cited the study in front of Wisconsin Representative Paul Ryan’s Janesville office. . . . Nurse Dena McEwen . . . discussed the hard times that have hit so many families. Her 40-year-old sister nearly died of gangrenous gall bladder infection because she was out of work and without health care. A neighbor tried to commit suicide when she could not afford medications.

Popular misunderstanding #4: The wealthy should suffer if the poor have to suffer. Wrong. If you lose your bladder, having a wealthy person lose his bladder will not help you. What will help you are programs that will keep you from losing your bladder – more medical research, better health care for everyone, more and better doctors and nurses – programs the Tea/Republicans wish to cut.

All of these misunderstandings have existed for decades, but it took the Tea/Republicans to solidify them into a powerful movement for ignorance, a movement that is destroying America. The nurses say they must work harder, because Americans coming to them are sicker, the result of losing jobs that provided health care insurance.

As I read these pitiful articles, I repeatedly am reminded of yesteryear’s medical quacks who applied leeches to treat anemia, thereby killing their patients. The Tea/Republicans are removing the lifeblood of our economy – money – thereby killing America.

Out of ignorance, the anemic patients went along with their medical quacks, and out of ignorance the American voters are going along with their economic quacks. We, our children and our grandchildren all will suffer for our ignorance.

As an aside, many of my own friends, mostly college graduates and some with advanced degrees, don’t get it. They mouth the same ignorance as one would expect from the uneducated: “The debt is too big.” “The deficit can’t grow forever.” “The government is broke.” Explanations of why a Monetarily Sovereign government is different from monetarily non-sovereign people, are met with glassy eyes or even anger. Thankfully, my wife gets it completely, and whenever she hears a politician spew his ignorance, she looks at me, smiles and rolls her eyes. Thank God, I married a brilliant woman.

Anyway, sorry for the digression. I’ll just end with:

Ignorance kills.

Unlike the politicians, the nurse’s hearts are in the right place. So, I award the nurses just one, very sympathetic dunce cap.

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