–Another great Bill Black article, needing just one addition

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 motive.


Bill Black is a professor at the University of Missouri, Kansas City, a school that seems to have a near monopoly on economics professors who understand economics.

While the U. of Chicago, Harvard, Stanford et al, have seemed to receive the accolades, UMKC has the single best economics department in America, if not the world.

Put the names Bill Black, Randy Wray, Mat Forstater and Stephanie Kelton, all UMKCers, on your list of economists who know what they are talking about (There are more, but I don’t know them well enough). One day, someone should tell me who is responsible for all these people coming together into one department.

Anyway . . .

Bill Black recently wrote another in a long list of terrific articles that appeared in

New Economics Perspectives, titled, “Slate Agrees that Obama’s Vanity Drives the Grand Betrayal – and Praises the Betrayal.

Quoting from the article:

Obama is driven by concerns for his “legacy.” In more human terms, he is intensely vain about how history will perceive him. . . Obama sees inflicting the “Grand Bargain” on the Nation as his means of achieving his legacy.

The “Grand Bargain,” which Black calls the “Grand Betrayal” is Obama’s willingness (lust, actually), to effect a so-called compromise with Republicans by doing what he always has wanted to do: Gut social programs and dismantle the New Deal and Great Society – programs that have benefited the 99.9% and helped close the income/wealth gap between the ultra rich and the rest of us.

I urge you to read Black’s artile.

After reading the article, I wrote Bill the following note:


As usual, your most recent article (“Slate Agrees that Obama’s Vanity . . . Betrayal”) was brilliantly written. I take issue with one conclusion, however.

While I agree that legacy is Obama’s motivation, there is more to it.

As a lifelong Chicagoan, I understand the Chicago political way. Consider how Obama rose from “community organizer” (whatever that means??) through state Senator, federal Senator and President of the United States, all without doing anything of significance.

How? By doing exactly what he was told by the moneyed interests. He was, in short, “dependable.”

The moneyed interests want the income/wealth gap, between the .1% and the 99.9% widened. The gap is what makes them rich, as without the gap, no one would be rich, and the wider the gap, the richer and more powerful the rich are.

Yes, Obama craves his legacy, but merely cutting the deficit won’t do it, especially when the economy will suffer. Austerity is not a legacy vehicle.

So how does he get his legacy? It must be bequeathed to him by the .1%.

They must build an impressive Obama Library, here in Chicago, that will provide an everlasting memorial to his greatness, and Chicago billionaire Penny Pritzker will make sure it’s built.

The media, virtually all owned by the rich and powerful, must write about him in Godlike terms. They must anoint him a saint. They must re-write history.

Since the rich have the power to re-write history, and Obama knows this, he will continue to do what the rich want. It lifted him to where he is today. Why change now?

It even got him his Chicago house. And though the guy who gave it to him (Tony Rezko) languishes in jail, Obama was lifted up and up to glory, by obeying the rich and powerful.

Rodger Malcolm Mitchell

It worked for Bill Clinton, who left office in the midst of a personal disgrace, and who caused a recession by running a federal surplus at the end of his term. But, because he widened the gap, he was rewarded by the rich, and was resurrected by the (rich-owned) media into a very wealthy, and much honored and revered ex-President.

Heroes and saints are not created by the masses. They are created by the rich and powerful.

Obama may be a weak President who punishes the poor, but he understands politics and he takes orders well. So as his reward, the media and the .1% just might give him that beautiful legacy he so desperately craves.

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


7 thoughts on “–Another great Bill Black article, needing just one addition

  1. Please explain how we close “the gap”? Don’t steer me to the “nine points”, please. I know them and agree their imposition would have extremely positive effects for America’s 95%. So agreed the lives of the 95% would be made much better. However, I cannot accept they would have a great enough effect to off set the ability of the extremely wealthy to create policies which benefit themselves and only themselves. So again I ask, explain how we close the gap, while the extremely wealthy maintain there ability to disrupt government which benefits public purpose and democratic ideals?


  2. 1.) “Heroes and saints are not created by the masses. They are created by the rich and powerful.”

    Yes, and so are the villains. The rich and powerful despise and fear National Socialism, and therefore call Adolf Hitler “the most evil man who ever lived.” Just as economics textbooks are 95% garbage created by the rich and powerful, so are history textbooks regarding WW II.

    Not that it matters, since the masses believe whatever the rich tell them. That’s why average people tend to vilify the leftist presidents of South Africa, plus Robert Mugabi, Moamar Gadaffy, and all other figures that stand for fairness and decency.

    2.) Bill Black’s article did not impress me. As usual, Black is insufferably long-winded. Plus, he has strange ideas about Obama’s “legacy.” I agree with Rodger, who says Obama’s only concern is continued support by the rich.

    3.) Off topic…


    Austerity is theft by the 1%, and is done in three ways…

    1. Reduced federal spending
    2. Increased federal taxes.
    3. Concentration of wealth.

    Number 3 can occur even when 1 & 2 remain unchanged. For example, the Pentagon whines that sequestration will deprive it of money. In reality, the Pentagon will likely get more money than ever, but the money will go to fewer and fewer recipients. The Pentagon is being subjected to austerity type 3: the concentration of wealth.

    At present, military personnel are being laid off, while military-dependent towns are being deprived. Big military contractors are crushing smaller contractors. Money that was once spread around now goes to select executives who have direct ties to Congress.

    Case in point: the 22 interceptor missiles at Fort Greely in Alaska, plus the 4 other missiles at Vandenberg AFB in California. The booster and “kill vehicle” are made in the state where I live. Both items are useless. They have never worked, and never will. No test has ever been successful. Not a single one.

    Each of the non-functional missiles cost $71.4 million, and is a cash cow for rich executives of Boeing and Raytheon. (I have knowledge about this, because I was a Nuclear Weapons Specialist for the US Air Force, and I later moved into ballistic missile systems. Plus, I have read extensively on this topic for years.)

    As military-dependent towns are sequeezed, Republicans and Offense Secretary Chuck Hagel now want 14 more of the useless missiles for Ft. Greely, plus another 14 missiles for an undetermined site on the east coast. This will mean billions more for the senior executives of Boeing and Raytheon, who will pay kickbacks to politicians.

    Federal spending is good, even on non-functional missiles.

    But when spending is concentrated on rich executives who produce garbage, then this too is austerity, since it further enriches the 1% at the expense of the 99%.

    (For MMT morons, austerity is simply a “failed policy.”)


  3. “While the U. of Chicago, Harvard, Stanford et al, have seemed to receive the accolades, UMKC has the single best economics department in America, if not the world.”

    Agreed, but I also find some members of the UMKC crowd to be annoying in the way they come close to the truth, but then veer away from it. For example, Bill Black in his latest NEP article refers to Troika austerity in Europe as “fundamental policy mistakes.”

    Mistakes? Austerity is not a “mistake.” Austerity increases the gap between the rich and the rest. That is its purpose.

    When a burglar is charged in court, the prosecutor charges him with crimes, not “policy mistakes.” Bill Black refers to bank CEOs as thieves (“The Best Way to Rob a Bank is to Own One”), but when it comes to austerity, he makes an exception for billion-dollar thieves, saying they are merely engaged in “policy mistakes.”

    I wish that he and the other UMKC academicians would quit referring to austerity as a “mistake” and a “failed policy.” Such garbage makes the thieves seem innocent. It portrays the robbers as simply “mistaken,” with “policies” that merely “failed.”

    The thieves have not failed. On the contrary, they have succeeded in becoming more wealthy and powerful than ever. To claim they have “failed” is to insult to our intelligence. I wish Bill Black would stop insulting us.


    1. “The Best Way to Rob a Bank is to Own One”,should be changed to “The best way for a bank to rob the people is to be a private for profit bank” and a sequel would be “To be very successful become TBTF”.


    2. The first time austerity fails it might be properly referred to as a “policy mistake”. After that first failure, repeated attempts at imposing austerity should be properly referred to as a “criminal enterprise”.


  4. We, the People are facing a task which transcends red states and blue states; it affects every one of us in the United States. Contrary to current public sentiment, the answers to our problems do not lie in electing new faces in government. Those who naively believe that a change in party will “cure” our problems are dead wrong . Our government, Republican or Democratic, has become a government controlled by the Carte

    The crises unfolding in our world today have a deep, significant meaning underlying them. When a large
    percentage of the population grovels for survival—can’t get a job, unemployment benefits are running out, prices on food, gasoline, home heating fuel,etc.are soaring-the immediate result is lower standard of living and extermination of the middleclass. We, the sheeple,are most manageable
    when we are distracted and struggling for survival.Furthermore,when the Banksters by owning everything we need, starve the best-us-they can then “offer” a solution that we will then “beg” for…Of course, this was their plan all along.


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