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.

The following story has had major play, and will continue to have major play, for weeks. Both parties will attempt to spin it in their direction.

The Tea/Republicans will say it demonstrates all sorts of bad things about the Obama administration. The Democrats will say it shows we need more and better regulation. In short, the usual, political lip flap. But, how important is this story, that is, how much does it affect you?

Washington Post
GSA official’s wife accompanied him on trips at taxpayer expense
By Lisa Rein, Published: April 17

The senior government executive who organized the lavish Las Vegas conference at the center of a General Services Administration spending scandal took dozens of trips for the agency. The boss’s wife accompanied him on some of them — and taxpayers picked up the tab.

Deborah Neely wasn’t always just sharing husband Jeffrey E. Neely’s hotel rooms at resorts from Las Vegas to the Pacific islands. She handled party arrangements, directed event planners to spend government money and arranged lodging for relatives on the GSA trip to Las Vegas in 2010, an unusual role revealed in transcripts of interviews that the agency’s inspector general’s office conducted with Jeffrey Neely, as well as in congressional hearings.

Her role as the “first lady of Region 9” — as an investigator called her — shows a management culture in GSA’s Pacific Rim region that not only allowed the $823,000 Las Vegas gathering for 300 people and overspending on other conferences but also openly condoned perks for managers and their family members.

O.K., stealing is stealing. We can’t condone it. But here is a case where the stealing didn’t cost anyone anything. In fact, it was economically stimulative. Hotels and hotel workers received money. Restaurants and restaurant workers received money. Hookers (hey, they’re people too) received money (all but one, who pulled the plug on the entire operation).

Hundreds, maybe thousands, of people received money, and it didn’t cost you or me one cent. When a Monetarily Sovereign government spends it creates the dollars for that spending. It doesn’t use tax dollars. It doesn’t use borrowed dollars. It simply creates dollars.

So if you’re outraged, your outrage must come from envy, not from any personal damage. If you enjoy being outraged, try this article from the Chicago Tribune:

Charges against Dixon comptroller has ‘awakened a sleepy little town’
By Melissa Jenco, Tribune reporter, April 18, 2012

The small northwest Illinois town of Dixon, stunned by charges against its chief financial officer of misappropriating about $30 million in city funds, has placed the employee on unpaid leave a day after her arrest in City Hall by FBI agents.

See the difference? No, I’m not talking about the amount of money stolen. I’m talking about the fact that the federal government is Monetarily Sovereign, so doesn’t spend tax dollars, while state and local governments are monetarily non-sovereign, so do spend tax dollars. In the Dixon case, the taxpayers are stuck with a $30 million bill, and the stealing, most definitely, was not economically stimulative.

While federal stealing has several bad results, at least taxpayers aren’t financially hurt. But state and local stealing directly impacts taxpayers. Regardless of the amount of money involved, I am far more outraged by state and local stealing than by federal stealing. Deborah Neely didn’t cost me a penny. But the stealing where I live, in Illinois and Cook County, costs me plenty.

To find real outrage, look at your crooked town council or your criminal mayor. Look much harder at the guy who steals $10 from your village treasury, than at the guy who steals millions from the federal government. It’s the local guys who take money from your pocket.

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