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.
●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.
●Everything in economics devolves to motivation.


As readers of this blog have learned, we of the upper .1% income group – we mega rich – we bribe the politicians (via campaign contributions and promises of lucrative employment later) to reduce the so-called federal “deficit,” also known as creating “austerity.” You wouldn’t believe how much politicians love to be bribed.

Because the vast majority of deficit spending benefits you in the lower and middle income classes, deficit reduction widens the gap between us rich people and you middle class folks, and it is the gap that we upper 1%ers really care about. Without the gap, none of us would be rich, and the wider the gap, the more power we have over you. Power is what life is all about. You should get some.

Under the title, Budget cut warnings may prove harsher than reality, Alan Fram of the Associated Press, discusses what austerity will do to you middle class nobodies and for us mega-rich.

—Defense: A $3 billion cut in the military’s Tricare health care system could diminish elective care for military families and retirees.

This won’t affect us in the upper .1% income group. None of us are soldiers and anyway, we have our own “cadillac” health insurance.

—Health: The National Institutes of Health would lose $1.6 billion, trimming cancer research and drying up funds for hundreds of other research projects. Health departments would give 424,000 fewer tests for the AIDS virus. More than 373,000 people may not receive mental health services.

Cancer research, AIDS, mental health – who cares? What’s important is to cut the deficit. Why? No one knows, but you believe it. We in the .1% don’t get AIDS. That’s for poor folks. And we buy our own psychiatrists.

—Food and agriculture: About 600,000 low-income pregnant women and new mothers would lose food aid and nutrition education. Meat inspectors could be furloughed up to 15 days, shutting meatpacking plants intermittently and costing up to $10 billion in production losses.

I don’t know any low-income pregnant women, do you? And if those low-paid workers in meatpacking plants lose some of their income, well I don’t know any of them, either.

—Homeland Security: Fewer border agents and facilities for detained illegal immigrants. Reduced Coast Guard air and sea operations, furloughed Secret Service agents and weakened efforts against cyberthreats to computer networks. The Federal Emergency Management Agency’s disaster relief fund would lose more than $1 billion.

So we fire a few border agents and a few in the Coast Guard. None of us in the .1% work those kinds of menial jobs. And as for FEMA, really who cares? My rich friends and I don’t receive disaster relief.

—Education: Seventy thousand Head Start pupils would be removed from the pre-kindergarten program. Layoffs of 10,000 teachers and thousands of other staffers because of cuts in federal dollars that state and local governments use for schools. Cuts for programs for disabled and other special-needs students.

Some teachers lose their jobs – big deal. I can hire private tutors. Anyway, my kids go to expensive private schools. Don’t yours?

—Transportation: Most of the Federal Aviation Administration’s 47,000 employees would face furloughs, including air traffic controllers, for an average of 11 days.

So 47,000 people each lose 11 days of pay – is that something I’m supposed to care about? Let ‘em eat cake.

—State Department: Slow security improvements at overseas facilities.

So a couple more ambassadors get killed. Not my worry. Just blame Hillary.

—Internal Revenue Service: Furloughed workers would reduce the IRS’ ability to review returns, detect fraud and answer taxpayers’ questions.

This is great. Mitt and I hate those guys nosing into our offshore bank accounts.

—FBI: Furloughs and a hiring freeze would have the equivalent impact of cutting 2,285 employees, including 775 agents. Every FBI employee would be furloughed 14 workdays.

More unemployment for the middle class. Perfect. Just widens the income gap between us and you. By the way, what does the FBI do?

—Interior Department: Hours and service would be trimmed at all 398 national parks, and up to 128 wildlife refuges could be shuttered.

If I want to see wildlife, I’ll fly my private jet to Africa. You should, too.

—Labor: More than 3.8 million people jobless for six months or longer could see their unemployment benefits reduced by as much as 9.4 percent. Fewer Occupational Safety and Health Administration inspectors could mean 1,200 fewer visits to work sites. One million fewer people would get help finding or preparing for new jobs.

This is the best news yet. Increase unemployment while decreasing jobless benefits – the perfect combination for widening the gap between me and you.

—NASA: Nearly $900 million in cuts, including funds to help private companies build capsules to send astronauts to the International Space Station.

Science, who needs it? Really, what good is it?

—Housing: The Department of Housing and Urban Development said about 125,000 poor households could lose benefits from the agency’s Housing Choice Voucher program and risk becoming homeless.

All those lazy, homeless people wandering around. Thank goodness I built a big wall around my estate, so I don’t have to look at them.

In total, austerity is the greatest idea for us .1%ers. The more we cut federal spending, the wider that income gap. For a while, we thought only the Republicans were on our side, but now even the Democrats are starting to join in. They probably couldn’t resist the bribes.

Finally, I’d like to thank all you poor and middle-class slobs for demanding – yes, demanding – that the federal budget be cut, because you believe it’s “unsustainable” or will cause inflation or the government is “broke” or whatever other nonsense we’ve told you.

I know austerity causes you and your children great hardship, but remember, your sacrifices are for a good cause: To benefit us rich people.

Rodger Malcolm Mitchell
Monetary Sovereignty

[Confession: I’m not really part of the upper .1% income group, but it’s nice to dream, especially with the politicians being so cooperative.]


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