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.


Are you shocked that someone should be so disrespectful as to call the President of the United States a liar and a traitor? Even I am shocked at my own words. They burn in my throat. But what else can you call a man who was elected on the solemn promise, often repeated, that he would benefit America by lifting the struggling middle and lower classes — a man who had zero intention to do so?

By Jake Horowitz (, 14-Nov-2012

Obama Sets Steep Tax Target – (via WSJ) “President Barack Obama will begin budget negotiations with congressional leaders Friday by calling for $1.6 trillion in additional tax revenue over the next decade – double the $800 billion discussed in talks with GOP leaders during the summer of 2011.

Mr. Obama, in a meeting Tuesday with union leaders and other liberal activists, also pledged to hang tough in seeking tax increases on wealthy Americans. In one sign of conciliation, he made no specific commitment to leave unscathed domestic programs such as Medicare, leaving the door open to spending cuts many fellow Democrats oppose.

So here is how Mr. Obama will help the middle and lower income groups. He will raise taxes on the upper income group and he will cut Medicare, Social Security and food stamps.

Got it? He will claim to remove $1.6 trillion from the economy. (Will that help you and your children?) He will reduce social programs (Will that help you and your children?)

And he will continue to tell you that in some mysterious, magical way, this will make you happy. That’s called an “Obama compromise:” Give the rich what they really want – an increased gap between them and the rest of us – then claim this is good for us.

And it continues:

Today, Obama meets with CEOs from GE, Honeywell, Wal-Mart, Ford, Chevron, and IBM to discuss the fiscal cliff.

What do you think all those rich guys will tell Obama? Will they say, “Raise rich people’s taxes, don’t raise poor people’s taxes, and above all, don’t cut the social programs they need so desperately”? Sure they will.

For many years, MMT and Monetary Sovereignty have been working under the delusion that the President “doesn’t get it,” and if only we could explain it better and more simply, he would see the error of his ways. It was a fool’s mission. The President gets it. He’s no fool. And he has plenty of smart people advising him, and they get it, too.

But he does the bidding of the 1%. He learned about money in Chicago, from people like convicted swindler Tony Rezko, who magically got Obama some real estate at a big, big discount. Obama believes in magic, and hopes you will, too.

The demand that taxes be raised on the 1% is a magicians misdirection, forcing you to believe he is for the “little guy.” The rich don’t give a fig about that income tax increase. They never will pay it. But the President wants to cut social spending even more, and that is what will increase the gap.

Obama’s whole “grand bargain” is a charade to fool the voters. It really is a discussion about the best way to increase the gap without being too obvious. As you will see, when this all is resolved, the middle and lower classes will take a big hit, and the 1% will not even be scratched.

Bottom line: Any plan to reduce the deficit will reduce the money supply, and by formula, will reduce Gross Domestic Product. There is no mechanism by which any tax increase and/or any spending cut can have a positive effect on economic growth. Obama knows this. The rich know it. The poor, who elected Obama, don’t. So he will let them suffer for their ignorance. “Liar”? “Traitor”? Add “cruel” to the description.

But then, Romney would have been even worse. He would have appointed another Scalia. That’s why I voted for Obama.

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