–The 1% steps up its efforts to brainwash you. Are you falling for it?

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.

The 1% steps up its efforts to brainwash you. Are you falling for it?

What do these Chicago Tribune men have in common: *Tony W. Hunter, Publisher; *Vince Casanova, President; *Gerould W. Kern, Editor; *R. Bruce Dold, Editorial Page Editor

Answer: Unless the Tribune is especially miserly, these men all are part of the upper wealth classes (aka the “1%”), and here is what they wrote on 12/3/11:

Think big – before it’s too late
For lack of bold actions, we’re choking on debt and yearning for growth.

Notice how “big” and “bold,” both positive words in the American lexicon, cleverly are used to describe efforts to cut back and reduce the masses to austerity. (The 1% never experience austerity.)

Their words form lie #1. The federal government, being Monetarily Sovereign, cannot “choke” on its debt. It could eliminate all T-securities (aka “debt”) tomorrow, simply by crediting the bank accounts of T-security holders, which the federal government uniquely has the power to do.

Even the word “debt” is a lie of sorts, because so-called federal “debt” actually is a measure of our money supply, and there is no way we are “choking” on our money supply. Quite the opposite, we are starved for money. The “debt” should be much larger. The Tribune’s “big, bold” plan is to starve us further.

Lie #2 is the implication that reducing the debt would enable economic growth. As you can see from the following graph, the exact reverse is true. Reductions in “debt” (money) growth inevitably lead to recessions, while “debt” (money) growth gets us out of recessions.

debt grows the economy

. . . as the nation lurches toward fiscal disaster. Congress is wrangling to extend a payroll tax break and unemployment benefits . . .

Lie #3 is the implication that benefits coming to you in the the middle and lower classes (the 99%), will cause some sort fiscal disaster. In the Tribune’s world, the richest 1% are entitled to their wealth, but heaven forbid any money flow to the rest of you.

The U.S. lost its AAA credit rating over the summer.

That’s lie #4, by omission. The credit rating was established by the 1%-owned agency that gave AAA ratings to worthless mortgage securities, which helped cause the recession. This agency wants to scare the 99% into cutting their own financial throats.

But credit rating is based on ability and willingness to pay, and the U.S. has both the unlimited ability and the willingness (barring efforts by the Tribune, et al). No federal check ever has, or ever will, bounce. The phony credit rating is scare-mongering at its worst.

The future is mortgaged, the nation’s youth sold out.

Another lie, #5, by implication. Our Monetarily Sovereign government has no difficulty servicing its debt, taxes do not pay for the debt, and the nation’s youth do not owe the federal debt. So, what does “the future is mortgaged” mean? No one knows. Just lying scare words.

But I’ll tell you what does sell out our the nations youth: Reductions in Social Security and Medicare – reductions the 1% wish to foist on the population. That’s money our children and grandchildren never will see, because the wealthiest don’t want you to have the power money brings.

Take away tax deductions for mortgage interest. Jack up the retirement age for Social Security.

These are just a few of the efforts the Tribune supports. Notice, there is no effort to take away the tax deductions for corporate interest. Oh, no. That would affect the 1%. But eliminating the mortgage interest deduction, and reducing Social Security, both depended upon by the middle class, that’s “big” and “bold” in Tribune-speak.

After months of talks, the bipartisan team of lawmakers failed to reach a deficit reduction agreement with the modest goal of cutting only $1.2 trillion over 10 years – a minor fraction of the expected deficits . . . Put this nation back on track. Think big.

When the Tribune says, “Think big,” it actually means to cut the money supply, not by $1.2 trillion but by $4 trillion, most of that coming from Social Security, Medicare and Medicaid, lifelines for the 99%. That $4 trillion is not a “minor fraction” of anything. It’s dollars coming right out of your pocket.

If the idea is to wait until the 2012 election before acting, we’re appalled. Every wasted minute puts Americans and their government deeper in the hole. The same hole in which several vastly overspent, overborrowed people and governments of Europe already wallow.

This is the whopper of whoppers. Lie #6: Americans are “in the hole” specifically because their government is not enough “in the hole.” Remember this equation:

Federal Deficits – Net Imports = Net Private Savings.

It says, very simply, that increasing Federal Deficits increases Net Private Savings. This is not theory or even hypothesis. It is a basic accounting fact of federal financing. So if you want your savings reduced, as the Tribune does, then reducing federal deficits is the path.

Lie #7 makes the faulty comparison between the monetarily non-sovereign European nations versus the Monetarily Sovereign United States. The former cannot create their sovereign currencies, so for them, debt is a burden. The U.S. can create its sovereign currency, so for our government, debt is no burden whatsoever. So-called “debt” is our money supply. The Tribune’s comparison is more dishonest than apples / oranges. It’s apples / anthrax.

I am ready to give up on the notion that the Tribune is ignorant. I have contacted them dozens of times, including specific correspondence with Bruce Dold. Not only does he not get it, he refuses to discuss it in substance. Since no one in his position could be that stupid, I am beginning to believe his ignorance is intentional.

Money is power. As probable members of the 1%, the Tribune executives not only seems willing, but anxious, to keep the lower classes down, so their upper class will have more power over you. In short, they seem willing to hurt America for their own personal gain – the definition of a traitor.

I award the Chicago Tribune three traitor images.

Unpatriotic flagUnpatriotic flagUnpatriotic flag

And fear not, Tribune. You keep printing lies and I’ll keep awarding you traitor images. I never will run short. I never will “choke” on them. I, like the U.S., am sovereign.)

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
b>Gross Domestic Product = Federal Spending + Private Investment + Private Consumption + Net exports


10 thoughts on “–The 1% steps up its efforts to brainwash you. Are you falling for it?

  1. “Even the word “debt” is a lie of sorts, because so-called federal “debt” actually is a measure of our money supply, and there is no way we are “choking” on our money supply.”

    Seminal Rodger, consider it stolen… 😉

    “Not only does he not get it, he refuses to discuss it in substance. Since no one in his position could be that stupid, I am beginning to believe his ignorance is intentional.”

    They are the “goat people” Rodger. Eternally stubborn to the detriment of the rest of us…. this is a great post, please keep it up. Resp,


  2. 12/4/11: 5:00PM letter to Bruce Dold at bdold@tribune.com and Tony Hunder at thunter@tribune.com

    Today’s editorial said the U.S. is “choking” on its debt. As a Monetarily Sovereign nation, the U.S. has the unlimited ability to create dollars. That is a fact.

    Please tell me how a nation that can produce unlimited dollars can “choke” on debt.

    Rodger Malcolm Mitchell

    No rational response expected. They are the worst sort of debt hawks, the 1% variety.


    1. Megan McArdle, another one percenter, recently did her best to scare the ninety-nine percent:

      “But it is not true that loads of debt is just fine as long as you’re borrowing in your own currency, except in the trivial sense that a government which borrows in its own currency can always resort to hyperinflation.”


  3. Tyler,

    She has been writing the same “hyperinflation” crap for years. She warns that the debt is too large. O.K., if the debt is too large, where is the inflation, much less the hyperinflation?

    She merely parrots the popular myths, and somehow has become an “authority.” Truly sad.

    Rodger Malcolm Mitchell


  4. Just heard from Bruce Dold at the Tribune. He said, “Rodger, if the U.S. can create dollars without consequence, why doesn’t it do so?”

    Yikes. I’ve been trying to explain it to him for years. Anyway, I responded:

    “Exactly! That is exactly what I am trying to tell you. The United States government has the unlimited ability to create dollars. And what is the consequence? Yes, I know. Inflation.

    Here is link showing no relationship between federal dollar creation and inflation. http://research.stlouisfed.org/fredgraph.png?g=3H0

    If you truly want to learn, call me.


    We shall see if he truly is interested in learning.

    Rodger Malcolm Mitchell


    1. And then when I again wrote to Bruce Dold:

      Then, of course, there is the truly embarrassing question: How exactly does a cut in deficits reduce unemployment, end the recession and grow the economy?

      Bruce, no matter how you twist and turn, you have no answer to that question. But if you would like to give your readers the facts of economics, and be able to answer such questions, you have only to ask me.

      His answer was a smug:

      Thanks, Rodger. I have a good sense of your argument on this issue.

      Cold and smug. But he may not be so cold and smug if/when his own health insurance, or that of a loved one, runs out.


      1. Maybe Dold doesn’t care to reduce unemployment. Maybe he hopes there will always be a poor class to keep his dollars strong – the bigger that class, the stronger his dollars.

        I’ve seen a Wall Street trader go on BBC and say he dreams of the next recession. Greed is one Hell of a sin.


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