–France announces why it will abandon the euro (but doesn’t yet know it)

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

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 ultimately 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.

France has just announced it will abandon the euro. The French people just don’t yet know it.

France to seek 14 billion euros in cuts next year: paper
Reuters, 6/29/13

France will pursue 14 billion euros ($18.2 billion) in spending cuts next year as it attempts to reduce the public deficit to 3 percent of economic output by 2015.

Translation: Our economy is in the toilet, so our “solution” is to destroy another 14 billion euros. Flush!

France’s Socialist government aims to tame the deficit by trimming ministerial budgets, cutting state aid to companies and reducing local government funding.

Translation: We’ll cut government benefits to the middle classes and the poor. We’ll make our businesses weaker and we’ll stop helping local governments provide their benefits. That should work.

With the economy back in a shallow recession, jobless claims at an all-time high and his approval ratings around 30 percent, President Francois Hollande has been reluctant to accelerate the cuts.

Translation: We know cutting the deficit will hurt the economy, and increasing the deficit will grow the economy. But we became monetarily non-sovereign by adopting that failed currency, the euro, so we have no choice but to cut our own wrists.

Annual growth in overall wage costs for French public employees will be cut to 0.15 percent from 3 percent, chiefly through pay restraint.

Translation: These people make too much money.

Funding for services such as the CNRS research institute and Meteo France weather forecaster will be cut 4 percent.

Translation: This is CNRS:

Institute of Biological Sciences (INSB)
Institute of Chemistry (INC)
Institute of Ecology and Environment (INEE)
Institute for Humanities and Social Sciences (INSHS)
Institute for Information Sciences and Technologies (INS2I)
Institute for Engineering and Systems Sciences (INSIS)
Institute of Physics (INP)

Hey, who needs that stuff, anyway? And if you’re worried about the weather, carry an umbrella.

The Cour des Comptes, which overseas France’s public accounts, warned on June 27 that the deficit could overshoot its 3.7 percent (of economic output) target for 2013. It recommended spending cuts of 13 billion euros next year and 15 billion in 2015 to meet the 3 percent goal.

Translation: We know that cutting deficits reduces economic output, which increases the deficit percentage — it’s a dog-chasing-tail exercise. But who cares? The purpose is to punish the middle and lower classes and to widen the gap between the rich and the rest. Working pretty well, isn’t it?

There is no question that France will leave the euro. The only question is: How much punishment will the French people absorb before they riot in the streets and kick the rich deficit-cutters out.

I believe the timing depends on two factors:

1. When Greece leaves the euro. Being the sickest of the EU nations, one would think Greece would come to its senses first. When they re-adopt the drachma, and shortly thereafter, become one of the wealthier European nations, the French people (not their leaders) will have an epiphany.

2. When the EU forms a European republic. If the rich EU martinets see rioting all around them, they suddenly will “realize” monetary non-sovereignty doesn’t work for nations, so will form some sort of European republic, in which a central source will provide (without lending) euros to each nation.

My guess: #1 will happen first. Then there will be some “serious talk” about #2, while trying to convince Greece to return.

But the talks will go nowhere, so Italy will leave. Then France, and the whole, ridiculous euro idea will come crashing down.

Just before each nation leaves the euro, it will suffer a depression; the rich will point fingers at the “lazy” poor; millions of the middle- and poorer-classes will suffer and fall into poverty.

Finally, after re-instating Monetary Sovereignty, each nation will return to prosperity, at which time its rich again will push it back toward austerity.

Like a zombie that cannot be killed, austerity will rise again and again to destroy the lives of the ignorant.

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


3 thoughts on “–France announces why it will abandon the euro (but doesn’t yet know it)

  1. All the while the great shining light for the world pushes us all closer and closer to a WW III scenario. Before the prescriptions for change you nobly have spent years attempting to bring about through educating other economists and concerned individuals, the psychopathic elites within the military, industrial, intelligence, and security complexes, along with their prostitutes in the federal government and presstitute media organizations will lead us down the path to the end game for most of this planet. Enjoy the time you have left. Feel lucky you entered this earth when you did. I can still remember a time when life in this nation was for the most part a good one.


    1. I have to agree with you. It’s a touch and go race to the finish. Maybe the .1% will realize that as the chaos gets worse and nothing in their austerity arsenal is working, their hand will be forced into acting more in accord with sovereign thinking. Even the .1% understand do or die. An existential threat won’t go unrecognized. They aren’t that stupid to risk it all if given a choice between all or nothing. Walking the economic fence, hoping for a middle ground answer, isn’t in the cards.

      It’s obvious the real economy wants everyone to succeed, i.e., science engineering and MASS production. The financial economy is way behind the times and needs desperately to stop acting like selfish children and grow up!


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