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.


Here are the words which will live in infamy, and which will define the Obama Presidency for history. In his 2011 State of the Union address, President Obama said,

“. . . we have to confront the fact that our government spends more than it takes in. That is not sustainable. Every day, families sacrifice to live within their means. They deserve a government that does the same.”

“A government that does the same”?? A government that sacrifices to live within its means? And exactly what is the government’s “sacrifice” to which he refers? Will our government be unable to pay its rent? Will our government lose its home and be forced to live in the streets? Will our government go to bed hungry and be unable to feed its children? Are those the government’s sacrifices?

Will our government lose its job? Will our government go broke, or be unable to send its children to college, or not have warm clothes, or be unable to afford medical care, or face old age without income?

Exactly what government “sacrifice” is he talking about?

There is no government sacrifice. Obama was talking about your sacrifice and my sacrifice – and by his premeditated twist of logic, he makes it sound as though the government heroically will sacrifice to protect you and me.

What unabashed dishonesty!

“Every day, families sacrifice to live within their means. They deserve a government that does the same.” That, in one succinct statement, is the expression of the Big Lie – the lie that the federal government’s finances are like yours and mine and like the states,’ counties,’ cities’ and euro nations.’

It is a lie, a Big Lie, because on August 15, 1971, the U.S. became Monetarily Sovereign, i.e. sovereign over the U.S. dollar. As a result of this enormous change, the U.S. government now can create as many dollars as it wishes, any time it wishes.

Unlike you and me, the U.S. government never can run short of dollars. It can pay any debt denominated in dollars. It never needs to ask anyone for dollars – not you, not me, not China. For that reason, the U.S. no longer needs to borrow its sovereign dollars from anyone or tax anyone to get dollars.

But Obama tells the Big Lie about the government needing to “sacrifice” and to “live with its means.” What are the “means” for a nation that has the limitless ability to pay its bills? What are the “means” for a nation that creates its sovereign currency simply by paying its debts?

Lie after lie after lie after lie, an ongoing litany of mendacity. The man has no shame and no concern for the American people. He is a traitor, doing more damage to America than Osama bin Laden ever could have hoped. Yes, a traitor. What better description is there for someone who intentionally injures his own nation?

Obama wants you to “sacrifice,” and for what? What do your sacrifices bring you? Poverty. Sickness, Homelessness. Unemployment. Lack of schooling. Recession. Depression. Yes, Mr. President, what reward will our sacrifices bring us?

For many years, I had labored under the misconception that the problem was one of ignorance, and if only we could educate the President, Congress, the Fed, the media and the mainstream economists, these intelligent people would see the error of their ways, and the problem would be solved. MMT still believes it.

But, I have changed my mind. It simply is not possible that the President of the United States, the Treasurer of the United States, the Chairman of the Federal Reserve Bank of the United States and other assorted experts do not understand how dollars are created and destroyed.

Bernanke is well aware of the truth. He already has admitted he creates dollars by pushing a computer key. Greenspan has said the same thing.

So the only question is: Why does Obama lie? Why does he pretend not to understand. Why does he intentionally and unnecessarily injure us Americans? And the only answer I can come up with is: He, and his accomplices are bribed to pretend, bribed by campaign contributions to the Democratic party.

No other conclusion makes any sense at all.

Who has both the money and the motive to bribe them? The wealthiest Americans have the money, and their motive is to increase the gap between the 1% and the 99%, and that is accomplished via austerity, i.e deficit reduction, with a focus on reduced federal spending.

Yes, reduced federal spending is the bullet into your heart and my heart and into hearts of all the 99%. Cut Medicare; cut Medicaid; cut Social Security; cut food stamps and all the various programs for the poor. Cut the agencies that monitor our food, our medicine, our investments, so the rich can get richer selling us bad food, bad medicine and bad investments.

Cut, cut, cut. That in the President’s double-speak, is how the government “sacrifices.”

MMT and MS have been fighting the battle on the basis of facts, logic and education. Our approach has been: “Because people don’t understand, we have to teach them.”

So we continually write articles trying to make the idea simpler and simpler, to the point where any high school freshman could understand it while simultaneously driving and texting. Only when you, the populace, get angry enough, write enough letters, and threaten the politicians with being voted out – will these liars take notice and change this cozy and unholy partnership with the rich.

Today, Obama and Boehner are discussing your future. They are deciding how much they can screw you without getting caught. Soon they will announce, to everyone’s great relief, that they have worked together to save America from the fiscal cliff they invented.

In the spirit of cooperation, they heroically will cut the deficit. That is, they will reduce your savings. You will sacrifice to avoid their fiscal cliff.

The government will not sacrifice. Nor will the 1%, even with slight tax rate increases. You and I will be sacrificed on the alter of political contribution, by traitors to America.

And sadly, rather than being angry at the lies and deceit and the sacrifices, the brainwashed victims will cheer this bipartisanship. The cattle will march happily into the slaughterhouse, thanking their executioners.

“. . . we have to confront the fact that our government spends more than it takes in. That is not sustainable. Every day, families sacrifice to live within their means. They deserve a government that does the same.” Remember those words. Remember those lies.

You’ll hear them again, as the “fiscal cliff, invented by the President and Congress, is “solved” by the President and Congress.”

They, and Barack Obama, will live in infamy and another four years of lies.

Do you care? And if you care, what are you doing about it?

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