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.


The U.S. federal government originally passed the laws that created the U.S. dollar. Ever since, the government has passed laws that alternatively made the government Monetarily Sovereign and monetarily non-sovereign.

A Monetarily Sovereign government has the unlimited ability to create its sovereign currency. A monetarily non-sovereign government does not have this ability, either because it doesn’t have a sovereign currency (example: the euro nations), or its currency is pegged to the dollar:

As of 2008, there were at least 17 national currencies pegged to the U.S. currency, not counting other organizations that maintain a similar link. These include the Netherlands Antillean guilder, Aruban florin, Jordanian dinar, Bahrain’s dinar, Lebanon’s pound, Oman’s rial, Qatar’s rial, the Saudi riyal, Emirati dirham, Maldivian rufiyaa, Venezuelan bolivar, the Belize dollar, the Bahamian dollar, the Hong Kong dollar, the Barbados dollar, the Trinidad and Tobago dollar, and the Eastern Caribbean dollar, which is used by Antigua, Dominica, St. Kitts, St. Lucia, St. Vincent, the Grenadines and Grenada.

Occasionally, a Monetarily Sovereign government may pass laws that restrict its ability to create its sovereign currency. Examples in the U.S.: The debt-limit laws and the current austerity laws, all of which have no economic purpose, but solely are in place to give the illusion of economic prudence.

Because the U.S. government controls its own laws, it has the unlimited ability to revise those laws at any moment, meaning it has the unlimited ability to create as many sovereign dollars as it wishes, at any time.

Given this ability, the U.S. does not need to ask anyone for dollars, not you, not me, not China. Thus, federal borrowing and federal taxing do not support federal spending. Whenever the U.S. government wishes to pay a bill denominated in dollars, it simply creates those dollars at the press of a computer key.

In summary, federal tax collection is a useless, time wasting, manpower wasting, ineffecient and unfair exercise, which is why the following article should be of interest:

New York Times
Confusion and Staff Troubles Rife at I.R.S. Office in Ohio
Published: May 18, 2013

During the summer of 2010, the dozen or so accountants and tax agents of the Internal Revenue Service office in Cincinnati got a directive from their manager. A growing number of organizations identifying themselves as part of the Tea Party had begun applying for tax exemptions, the manager said, advising the workers to be on the lookout for them and other groups planning to get involved in elections.

Low-level employees in what many in the I.R.S. consider a backwater, they processed thousands of applications a year, mostly from charities like private schools or hospitals.

For months, the Tea Party cases sat on the desk of a lone specialist, who used “political sounding” criteria — words like “patriots,” “we the people” — as a way to search efficiently through the flood of applications for groups that might not qualify for exemptions.

Visualize it. Congress and the Supreme Court tweaked the law and some lone schnook had to interpret them and apply them to thousands of applications.

But it gets worse:

Overseen by a revolving cast of midlevel managers, stalled by miscommunication with I.R.S. lawyers and executives in Washington and confused about the rules they were enforcing, the Cincinnati specialists flagged virtually every application with Tea Party in its name.

But their review went beyond conservative groups: more than 400 organizations came under scrutiny, including at least two dozen liberal-leaning ones and some that were seemingly apolitical.

Do you remember the “I Love Lucy” show, the episode titled, “Lucy Goes to Work”? Lucy and Ethel find a job in a chocolate factory, where they stand at a production line, trying to wrap chocolates.

The chocolates come down the line faster and faster, overwhelming Lucy. You should stop now and look at it. It’s a scream — and is the perfect description of what was happening at the IRS.

Now, think of that production line and imagine that the chocolates had no value at all, and the whole process was unnecessary. That’s the IRS.

Over three years, as the office struggled with a growing caseload of advocacy groups seeking tax exemptions, responsibility for the cases moved from one group of specialists to another, and the Determinations Unit, which handles all nonprofit applications, was reorganized. One batch of cases sat ignored for months. Few if any of the employees were experts on tax law.

“The I.R.S. is pretty dysfunctional to begin with, and this case brought all those dysfunctions to their worst,” said Paul Streckfus, a former I.R.S. employee who runs a newsletter devoted to tax-exempt organizations. “People were coming and going, asking for advice and not getting it, and sometimes forgetting the cases existed.”

Administering the nearly four-million-word federal tax code involves so many arcane legalities, and is so fraught with potential to ignite Washington’s partisan skirmishes or infuriate taxpayers, that much of the I.R.S. is run by lawyers.

But the Exempt Organizations Division — concentrated in Cincinnati with fewer than 200 workers, according to I.R.S. officials — is staffed mostly with accountants, clerks and civil servants.

The article gets worse and worse; I don’t need to continue. You can read the entire article if you wish, but you get the picture. It’s “I Love Lucie” meets the Keystone Kops.

The point: Here is a giant organization, employing thousands of people, spending billions of dollars, causing millions of Americans to spend billions of hours (many of whom will be prosecuted for not spending those hours) — and all for naught.

The federal government has no use for the dollars collected, and in fact, the dollars sent to the government disappear and no longer are part of the money supply. It’s the classic having one team dig holes and a second team filling them up.

I have no objection to the federal government hiring people for useless work. This pumps dollars into the economy. It supports thousands of IRS employees’ families, plus thousand more businesses and their employees.

But I do object to having millions of Americans waste billions of person-hours, doing unpaid, useless work, and wasting more billions of dollars to prosecute those who do the work wrong. Those wasted hours never can be recovered.

And did I mention the waste of time by an “irate” (fake irate) Congress, investigating the scandal of their own making?

I wonder when America will come to its senses and simply do away with the federal tax, its collection and the related prosecutions. The whole process is nuts.

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. Click here
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%

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports