Mitchell’s laws:
●The more budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor,
which leads to civil disorder.
●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.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.


The previous post explored the first part of Mitt Romney’s secretly recorded butter-up to his wealthy base — the infamous “47%” rant in which he said that 47% of America think of themselves as victims and only want to receive federal support rather than making it on their own. Here is the last part.

MITT ROMNEY: . . . we have responsibility for the whole world. They (China) are only focused on one little area in the world, the South China Sea, the East China Sea. That’s it. And they’re building a military at a rapid rate.

Translation: “I know so little about international politics I actually believe China is worried only about the South China Sea (or is it the East China Sea? Gee, I don’t know which, but I do know you people love it when I use my China-scare line.)”

ROMNEY: Our Navy’s smaller in number of ships than anytime since 1917. And this president wants to shrink it. The list goes on. Our Air Force is older and smaller than anytime since ’47 when the Air Force was formed. And he wants to shrink it. If we go the way of Europe, which is spending 1% to 2% of their economy on the military, we will not be able to have freedom in the world.

Translation: “Psst, don’t tell anyone, but under Republican G.W. Bush, the number of ships shrank 10%, from 316 to 285, which is where it is now, and the number of planes fell 10%. But, facts never have been my strong suit. Anyway, I want to cut Medicare and Social Security (and Public Broadcasting and deductions for home mortgages and other stuff important to the lower 99% income groups), because we can’t afford them, but I want to spend more on military weaponry, because we can afford it and the rich manufacturers want it.

MITT ROMNEY: We have a website that lays out white papers on a whole series of issues that I care about. And what– I wish we weren’t unionized so we could go a lot deeper than you’re actually allowed to go.

Translation: “If it weren’t for the unions, I could cut even more jobs — my specialty. That would help the middle- and lower-classes, which by the way, are the people in unions. Got it?”

If you go to “Mitt Romney’s Plan for a Stronger Middle Class,” you’ll find his suggestions. Here are a few, with my translations in parentheses:

*Eliminate regulations destroying the coal industry (“The coal industry has such an excellent record for safety, concern for workers and for protecting the environment, we safely can cut regulations.”)

*Give every family access to a great school and quality teachers (“I have no idea how to do this, nor what the cost would be, but it sure sounds nice.”)

*Provide access to affordable and effective higher education options. (“Even I don’t know what this means.”)

*Attract and retain the best and the brightest from around the world. (“So long as they aren’t Mexican or poor, we want immigrants – and so long as they don’t take American jobs, which they all do.”)

*Curtail the unfair trade practices of countries like China (“First, we’ll start a trade war with China. Then we’ll go to war against India, Viet Nam, Mexico, Peru, and all the other countries that provide our middle- and lower-classes with less expensive goods.)

*Reduce taxes on job creation through individual and corporate tax reform. (“When I say ‘reform,’ I really mean we’ll cut taxes on the rich, while we ‘broaden the base’ – my euphemism for: tax more lower income people.”)

*Stop the increases in regulation that are tangling job creators in red tape (“I’m fixated on regulations, because the recession was caused by too much regulation of banks. And of course, we have too much oversight of pharmaceutical companies, car companies, food processors, stock brokers, mortgage providers, commodity brokers, chemical companies, oil companies and . . . you know. Instead, we should regulate China.”)

*Protect workers and businesses from strong-arm labor union tactics (“Percentage of union membership is only half of what it was 30 years ago, but it’s the unions, not the major corporations, that caused the recession. My rich voters love when I bash the unions.”)

*Replace Obamacare with real health care reform that controls cost and improves care. (“Cut benefits, institute vouchers, and call it ‘reform.’ And please don’t remind me Obamacare is the same plan I created for Massachusetts.”)

*Immediately reduce non-security discretionary spending by 5% (“Grow the military, but shrink Medicare, Medicaid, Social Security, road and bridge maintenance, food stamps and every other benefit to the poor and middle classes.”)

*Cap federal spending below twenty percent of the economy (“It’s called ‘austerity.’ I have no idea why or even how I would do this, but my rich voters like the idea of austerity. It’s done really well for Greece, Italy, Spain and Portugal. Love watching those people riot.”)

*Give states responsibility for programs they can implement more efficiently (“‘Responsibility’ is my euphemism for ‘Shift the costs onto the states, which already are broke.’ That’s how I cut spending by a federal government that creates all the money it needs. It’s clever, but what is even cleverer is this: Because the states are broke, they will have to cut the programs, nearly all of which benefit the lower- and middle-classes. And lots of these people will vote for me!”)

Yes, many of the people who will be hurt most by Romney’s policies, plan to vote for him. Why? They feel things are so bad, anything would be better. It’s called, “the-frying-pan-into-the-fire” syndrome.

And that fire will be hotter than anything they can imagine.

Rodger Malcolm Mitchell
Monetary Sovereignty


Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%

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 Imports