Mitchell’s laws:
●The more budgets are cut and taxes increased, the weaker an economy becomes.
●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.
●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.
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Hey GSA, here’s how not to spend $270,000
By Jena McGregor(THE WASHINGTON POST) Just three months after the General Services Administration was found to have spent $823,000 on a Las Vegas conference, the agency’s acting administrator shared news with the agency’s inspector general about yet another costly employee event for the agency.
In November of 2010, the GSA spent nearly $270,000 on an award ceremony for good performers, which included spending $34,073.38 on catering and room rental charges, $28,364.45 for “time and temperature picture frames” and $20,578.24 for 4,000 “drumsticks” given out to employees.
Translation: Our Monetarily Sovereign federal government, which has the unlimited ability to create dollars, pumped a million of those dollars into the U.S. economy — an economy starved for dollars. The dollars were received by catering firms and their employees, hotels and their employees, picture frame makers and their employees and drumstick manufacturers and their employees.
“This sounds almost unbelievable to have this kind of waste reported when we are running trillions of dollars in debt,” said Congressman John Mica (R-Fla.), according to the Associated Press. Rep. Nick Rahall (D-W.V.) sounded a similar note: “It is deeply troubling to learn that more than a quarter million dollars in hard earned taxpayer money was wasted so that certain GSA employees could congratulate themselves.”
Translation: “Yes, we in Congress know that taxpayers really don’t pay for federal spending. In fact, even if federal taxes were $0, Congress could spend as always. After all, we create the dollars at will.
But we sell this nonsense to voters, who don’t understand the difference between Monetary Sovereignty and monetary non-sovereignty, so we can pull dollars out of the lower 99% income group.
“And as for self-congratulation, you know how Congress hates that.”
They’re right, of course. But spending money to recognize good performance, on its own, is not necessarily wasteful. Rewards for good performance—whether in the form of some kind of recognition, bonus, or extra time off—is a common cost for any organization. Government employees, like their private-sector peers, deserve some level of reward for a job well done.
Translation: They’re wrong of course. But why spend all that time and energy setting up silly events, when what the people really need these days is a few more dollars in their pockets?
A GSA statement notes that, “under the new GSA leadership, this event and type of spending is not tolerated. As of April 2012 all spending for events, including training conferences, leadership events, team building exercises, award ceremonies, were suspended.”
Translation: “Congress doesn’t want us to take trips, attend conferences and do other silly, useless, time-wasting things, as that is the exclusive preserve of Senators, Representatives and the President. So, while Congress foams at the mouth to look ‘fiscally prudent,’ we’ll find a couple of scapegoats to punish, and be done with it.”
Bottom line: One million was added to the economy, a tiny but real benefit, costing nothing. Congress is outraged about this “waste.” The problem is, the money didn’t go to friends, family and other insiders.
“Waste” is money that benefits owners and employees of hotels, restaurants, picture frame makers and drum stick manufacturers. “Waste” is any money that doesn’t benefit Congress persons or their re-election.
Our economy could use another trillion dollars of federal “waste,” so at long last, we could climb out of this recession.
Rodger Malcolm Mitchell
Monetary Sovereignty
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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
#MONETARY SOVEREIGNTY
#Monetary Sovereignty - Mitchell 
If our Monetarily Sovereign federal government invoked its unlimited ability to create dollars, then by definition, the cost of every commodity would be an infinite number of dollars and the value of the dollar would be zero. So, it is probably neither correct nor helpful to say that our Monetarily Sovereign federal government has an unlimited ability to create dollars. A more specific statement would be better.
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A feeble attempt at absurdist exaggeration in an attempt to disprove something you have absolutely no understanding of or complete disdain for, simply because it does not fit your preconceived notions of reality. Please, attempt to step outside your closeted world for a change. No rational entity, public or private would ever dump infinite quantities of “dollars” into circulation.
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That’s not correct at all. A rational individual or group who would benefit from increased quantities of “dollars”, and the ability to print infinite quantities of “dollars”, would precisely print infinite quantities of dollars if no constraints existed.
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Rob,
If I also said the U.S. government has the unlimited ability to tax, would you then say that invoking this ability would mean there would be no money left in the economy?
While the government can create unlimited dollars, no one is suggesting it should create infinite dollars.
The article makes two points:
1. Because the government has the unlimited ability to create dollars, it does not need to ask anyone else for dollars — not you, not me, not China. Neither taxes nor taxpayers pay for federal spending.
2. Today, the economy is starved for dollars, and there is far more worry about deflation than inflation. The GSA “wasteful” spending was helpful to the economy.
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You could look at it from the perspective that it was ‘wasteful’ in that it could have been better spent on something else, like roads, or healthcare etc. However, like Keynes said with his example of burying bottles full of money for others to randomly dig up, it may not be the best use of the money, but it is much better than not spending anything at all.
It seems insane that we have millions of people worldwide sitting around idle and impoverished, for want of special tokens that are created out of thin air.
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