Mitchell’s laws:
●The more federal 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.
●Cutting the deficit is the government’s method for taking dollars from the middle class and giving them to the rich.
●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 penalty for ignorance is slavery.

“Framing” has brainwashed America, but Krugman will save us.

Framing Conservative Arguments
by bfrederk, Daily Kos

The conservative movement is tremendously successful at generating language to define positions and ‘frame’ arguments. “Frame” is in scare quotes because framing refers to presenting one’s positions in a way that it is most likely to garner support. It is more effective political rhetoric, but it is often intellectually dishonest. When you cannot win with your actual argument, you ‘frame’ it in a certain way so that you can win.

Here is how the politicians and the media (almost all of which are owned or paid by the upper 1% income group) frame the debate about the federal budget

January 21, 2013 9:22 pm
America’s debt dilemma: A looming crisis
By Robin Harding

As the Obama administration begins its second term this week, the Financial Times explores the real fiscal choice for the US: not the short-term frenzy of cliffs, debt ceilings, deficits and sequesters, but how – or whether – to pay for an older population. The answer will decide the very nature of the US economy in the 21st century.

Down one path, the retirement contract is untouched, but tax levels have to rise by 30 per cent or more; the US would look like a mature European economy.

Down the other, taxes stay low, but barring a revolution in healthcare costs, provision for at least some retirees – current or future, rich or poor – must be slashed.

And there it is. The argument has been framed: The public is told to choose from two possibilities: Increase taxes or slash healthcare. The third possibility, increase the deficit, is not even considered, let alone debated.

But wait!! (as the TV ads say) Here comes Paul Krugman to the rescue (O.K., belatedly, but he’s getting there, sort of):

Weekend Reader: Paul Krugman’s End This Depression Now!
January 26th, 2013 Allison Brito

Allow me to offer a better option—Paul Krugman’s End This Depression Now! Originally published electronically and in hardcover last spring, it’s been brought to our attention again with its forthcoming release in paperback on January 28.

As a leading economist, New York Times columnist, distinguished Princeton professor, and 2008 Nobel laureate, Krugman’s solution to the nation’s expanding deficit is stunningly simple: Spend more, at least for now.

That’s right — while politicians are warning of excessive government spending, Krugman says that federal spending is what got us out of the Great Depression, and can quickly return us to prosperity today.

“Now is the time for the government to spend more, not less, until the private sector is ready to carry the economy forward again—yet job-destroying austerity policies have instead become the rule,” he says. Krugman’s enduring Keynesian outlook and his hopeful, progressive approach to growth are an essential contribution to a national discourse dominated by deficit “hawks.”

Yes, I’m jealous. Krugman received a Nobel for almost, but not quite (at long last) saying what my book and 900+ blog posts have been saying for 15 years (To understand economics, you must understand Monetary Sovereignty. Most economists and politicians don’t.), and the MMT folks have been saying even longer than that.

What he gets right is: The government needs to spend more, not less. And austerity, aka deficit reduction, is job destroying, economy destroying and life destroying.

Sadly, what he gets wrong is: “ . . . until the private sector is ready to carry the economy forward again . . . “ thus demonstrating he really doesn’t get it. This suggestion indicates a desire to return to austerity, once we emerge from the recession. Yikes!

Message to Professor Krugman: The federal government should deficit spend, and after that, deficit spend, and then deficit spend – until we are at a point of full employment of such scarce resources as people and energy – that is, until we face an inflation we can’t cure by raising interest rates (as we always have done).

Barring that kind of inflation, which is so far off, I hope your grandchildren live long enough to see it, the government needs to continue growing the economy with deficit spending.

Anyway, this is a good first step for Professor Krugman, whom I’m sure will tell us he “always believed that,” and in a few years, when he decides that deficit spending should continue he will tell us he “always believed that, too.”

Welcome to the party, Professor. Better late than never.

And I’m still jealous.

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