–How your lords (Yes, you have lords) use myths to rule you.

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.


All living things are created with some indifference to the plight of other living things. It is “nature, red in tooth and claw.” It is a fundamental of evolution, in which the stronger survive at the expense of the weaker.

Cat owners, who have seen their cute, fluffy, lovable pets cruelly toy with an already maimed mouse, have seen it. Our innocent children are known for cruelty and indifference. Bullying is the common example. Street gangs take it to extremes with shootings, stabbings and other sadistic acts. Adults do it too – the crime syndicates, the drug cartels — they specialize in cruelty and indifference as intimidation techniques or just for pleasure.

But they are exceptions, right? If you could push a button that would bring you a hundred million dollars, but cause a dozen unknown Asians to die prematurely, would you push that button? Think before you answer. Being honest, would you?

The executives of the tobacco companies, push that button every day, and have done so for years. As do executives of pharmaceutical companies. Wall Street executives too, push that button, except their victims die of poverty, not disease. The upper 1% push that button with seldom a thought.

“Power tends to corrupt, and absolute power corrupts absolutely,” said Lord Acton. The murderer and torturer have power over their victims. The rich have power over the poor. The knowing have power over the ignorant. The murderer, the torturer, the rich and the knowing are corrupted by their power.

It benefits the abuser that the abused not know how to end the injustice, or even to recognize it. Ignorance is the ally of the powerful. Why did a German soldier murder his Jewish neighbor, a neighbor with whom he previously had friendly relations? The soldier was taught by his leaders, the ignorance that the Jews are evil.

Why today, do Syrian soldiers, themselves part of the poor and middle “99%,” kill their Syrian “99%” neighbors? The soldiers have been taught the ignorance that their neighbors are evil. The 99% are both the abused and the abusers, and all do the bidding of the 1%, via ignorance of the truth.

And so it is in America (and elsewhere), that the minority in power keeps the underclass ignorant. Here, it is done with the Big Lie, that the federal government cannot afford to provide benefits to those who need them, but instead must extract taxes from those who ill can afford them:

— the federal government cannot afford Medicare for all
— the federal government cannot afford more generous Social Security
— the federal government cannot afford to operate without taxation

And if a member of an underclass protests correctly that the government indeed can afford these things – and without extracting taxes — he then is told:

–the federal government is just like him, and must remain within strict financial budgets
–and it must balance its budget against tax income.
–and he is a fool to believe otherwise.

And with these myths, the upper 1% income group rules.

Think of religion. A group is taught certain myths: There is one God or there are many gods, and these gods demand obedience. High priests or shamans dictate what God says the followers must do, and inevitably these rules involve sacrifices – human, animal, financial, time or effort.

Enduring these sacrifices provides the psychological benefit of knowing one has done the “right thing” as defined by the religious leaders. Attending church services, reciting pre-written prayers, donating money, keeping kosher, building cathedrals, circumcision, abstinence, sexual practices, prescribed garments, travel to Mecca – all are sacrifices dictated by religions. Fail to sacrifice, and you will be punished, with hell and ostracism, even torture and murder.

It is sacrifice that gives religion its power. Forcing people to do what they would not otherwise do, and depriving them of what they otherwise would desire, is what builds dominance and obedience. Power comes from teaching that those, who do not share these believes and sacrifices, are evil.

Once the populace has been brainwashed, only minimum further effort by the high priests, is necessary to enforce compliance. After Germans were brainwashed into believing Jews and others were evil, Hitler and his acolytes didn’t have to do the killing. The people did it themselves, willingly and with relish.

Similarly, convincing people that to pay taxes, to suffer insufficient health-care insurance, to live on minimal retirement funds, go hungry and homeless – all build the dominance of the 1% over the 99%. The victims come to believe that yes, they must sacrifice, and however much they sacrifice, it never will be enough.

Today, the American people, and indeed people throughout the world, have been taught by the 1% that sacrifice, not only is necessary, not only is beneficial, but is morally good – and always insufficient.

Every culture has a version of “the ant and the grasshopper,” in which hard work and struggle are virtues unto themselves, while ease and comfort are immoral. By combining that belief with the cynicism of “There is no such thing as a free lunch,” the 1% has created a perfect scenario in which the 99% are made to believe Monetary Sovereignty not only is too easy and too obvious, but morally wrong.

Tell someone that he should not have to pay federal taxes, should not have to pay for health care and should not suffer from minimal retirement benefits, that person likely will respond to this good news with anger and sarcasm. “Life cannot be that easy (except of course, for the 1%). There must be good reasons why we have been sacrificing our wealth and our health. There cannot be a free lunch.”

The 1% are accustomed to life being easy. The 99% are uncomfortable with that notion.

And just as religious piety often is strongest among the least educated, so too is the belief among the least economically knowledgeable that it is normal and right for the 1% to have life handed to them, while the 99% must strive and suffer for their meager reward. Thus, the populace accepts the austerity that punishes them for the sin of not being wealthy, and rejects the facts of Monetary Sovereignty.

It’s a religious thing – belief triumphs over fact, ignorance over knowledge. Myths can be far more powerful than rationality. That is how your lords rule you.

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


6 thoughts on “–How your lords (Yes, you have lords) use myths to rule you.

  1. Rodger – – –

    Much of your argument rings true – but there is a question you did not address. That is: What gives value to currency?

    There are some who maintain (from history and from theoretical arguments) that the only thing giving currency value (other than a link to a commodity) is the power of the issuer to tax. These arguments seem quite logical to me.

    Do you think that the government has an obligation to tax – even when draining of excess currrency is not needed – in order to maintain the value of a fiat?

    If the fiat is not needed because it is the only thing that can be used to pay an obligation to the issuer, what is to prevent the fiat from being displaced by private IOUs (or private bank notes, etc)?

    John Lounsbury


  2. Hi John,

    Yes, MMT maintains that taxes are necessary to provide demand for dollars. Though I have a few doubts about this, I mentioned to Randy Wray that there are sufficient state, county and city taxes to accomplish that goal, so federal taxes are not necessary. He agreed.

    As for private IOUs and private bank notes, nothing prevents them and in fact they exist in several states. What limits their use is the lack of federal full faith and credit.

    Would you rather accept Mitchellbucks or federal reserve notes in payment of a debt owed to you? 🙂

    I discuss full faith and credit at: why-a-dollar-bill-is-not-a-dollar-and-other-economic-craziness/



  3. “It’s a religious thing.” Yes indeed. When I explain the facts to others, the stupid people respond with dismissal or caustic sarcasm, while the somewhat intelligent ones respond with moral condemnation, as though I have insulted their religion. Literally. People become flustered, almost outraged. “There’s no free lunch!” Many economists indulge this childishness in their dismissal of MMT. Paul Krugman says, “It’s just plain wrong,” for reasons that are mere gibberish. This tells us that the religious angle may be a way to spread the truth, i.e. framing government spending as a “blessing from God,” or something. “What would Jesus do?” and so on. Just a thought.


    1. Yes, the 1%’s myth that the federal government can run out of dollars, needs to borrow dollars and is just like you and me, continues. To them and to the bought-and-paid-for politicians, there is no difference between Monetary Sovereignty and monetary non-sovereignty.

      The “solution” will be to cut the federal spending that benefits the 99%, and to increase FICA.


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