Euro-cancer: Remission, delusion or long-term plan?

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.


I have seen it. So have you.

Someone suffering an incurable cancer, awakens to a day when he feels better, and even looks better. He and his loved ones are strongly tempted is to hope, pray and believe he may have taken a step toward recovery.

Sadly, reality returns, when the moment is not to be a remission, but a delusion.

And so it is with the Eurozone, whose cancer is the euro, and whose people pray for a miracle that will not be.
France exits recession in boost for embattled Hollande
By Michael Mainville (AFP)

PARIS, France — France has emerged from a shallow recession after posting stronger-than-expected second quarter growth, data showed Wednesday, in a rare piece of good news for President Francois Hollande’s embattled Socialist government.

The INSEE national statistics agency said France had indeed posted growth of 0.5 percent in April to June, beating analysts’ forecasts, in the economy’s best result for two years.

Finance Minister Pierre Moscovici said the rebound “confirms the end of the recession in the French economy” and “amplifies the encouraging signs of recovery.”

Industrial output was also up, but investment continued to fall and was down 0.5 percent. There was no sign the slight increase in economic activity was having an immediate impact on employment levels, with other INSEE data showing the loss of 27,800 commercial jobs in the second quarter.

The 0.5% growth exceeded analyst’s forecasts — growth from a very low level — and so the cancer is gone. Except investment fell 0.5%, also from a low level and employment continued to fall.

This is a recovery?

But it gets worse:

The government has vowed to tackle a number of tough reforms in the autumn, including a restructuring of France’s debt-ridden pension system that has already sparked call for general strikes.

It will also need to tackle the deficit, as it struggles to bring it under the EU ceiling of three percent of GDP.

The pension system is “restructured” by cutting pensioners’ future income, which will have an adverse effect on economic growth, while widening the income gap.

The deficit is “tackled” with higher taxes and/or reduced government spending, both of which are anti-growth, and will widen the income gap.

But it gets even worse:

In a report this month the International Monetary Fund urged France not to raise taxes and to continue reducing public spending. It also called on France to reform its labour market, warning that high labour costs were hurting French companies in the increasingly competitive global economy.

Translation: The ever-reliable IMF wants to crush what’s left of France’s middle class with reduced spending (on social programs, of course) and reduced salaries, thereby widening the income gap.

Think: Who pays the IMF’s salaries?

But it gets even worse:

New York Times
Germany Fights Population Drop
By Suzanne Daley and Nicholas Kulish, Published: August 13, 2013

The German population is shrinking.

There is perhaps nowhere better than the German countryside to see the dawning impact of Europe’s plunge in fertility rates over the decades, a problem that has frightening implications for the economy and the psyche of the Continent.

Demographers say a similar (to Germany’s) future awaits other European countries, and the issue grows more pressing every day as Europe’s seemingly endless economic troubles accelerate the decline. According to the European Union, the total number of live births in 31 European countries fell by 3.5 percent.

Reduced investment. Reduced employment. Reduced government spending. A shrinking middle class. Reduced population of workers and consumers. More and more and more austerity. All to widen the income gap.

And the French aristocracy leads cheers about a 0.5% statistic growth in an economic measure. We only can shake our heads in wonderment, that the French would accept this lie.

This isn’t just whistling past the graveyard. This is a million-member choir sailing merrily across the River Styx. This is belief in the magic of hope.

Don’t me misled by propaganda from the rich. Europe — at least its not-rich citizenry — is doomed by the euro. Goaded and deceived by the wealthy bankers, the European nations voluntarily surrendered the single, most valuable asset any nation ever has: Their Monetary Sovereignty.

They just gave it away in exchange for essentially nothing — the mirage of easier trade among themselves.

There is no magic. The euro nations are short of money. And without the ability to create their sovereign currency (they have no sovereign currency), the euro nations have no control over their money supply.

They cannot control recessions or depressions. They cannot control inflations or deflations. They cannot control their economies. They are tiny wood chips, floating helplessly on a sea of woe, and when a random wave lifts them up, they cheer, deceived into thinking salvation has arrived.

There continue to be two, and only two, solutions to the euro-cancer disease:

1. Each nation returns to Monetary Sovereignty by re-adopting their sovereign currencies
2. A financial merger akin to a “United States of Europe,” in which the EU gives (not lends) euros to its nations as needed.

Until then, the euro nations will sink, while the gap between the rich and the rest widen, creating a continent of slaves ruled by emperors.

And that is the real plan.

Rodger Malcolm Mitchell
Monetary Sovereignty

Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

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

Monetary Sovereignty Monetary Sovereignty

As the lines drop, we approach recession, which will be cured only when the lines rise.


9 thoughts on “Euro-cancer: Remission, delusion or long-term plan?

  1. I’m confused about the US being being a Monetary Sovereignty.
    The Federal Reserve is controlling our money supply and also
    loaning the government money to pay it’s bill. So in affect we
    are borrowing our own money. Is that not so?


  2. Congress controls the money supply by spending and taxing.

    The Federal Reserve does not lend the government money to pay its bills. Think about it; Where does the Federal Reserve get dollars?

    The Federal Reserve has two main functions:
    1. As a clearing house for banks
    2. Setting interest rates.

    The federal government does not need to borrow the dollars it has the unlimited ability to create out of thin air. Read:


  3. The author of the suggested piece, a Michael Snyder, said,

    “The truth is that the Federal Reserve is a private banking cartel that has been designed to systematically destroy the value of our currency, drain the wealth of the American public and enslave the federal government to perpetually expanding debt.”

    (Wrong on too many counts to discuss, but I can’t resist noting that the federal government, being Monetarily Sovereign, never can be burdened, much less “enslaved” by debt, i.e. T-securities. It could pay off the entire debt tomorrow, without creating one new dollar.)

    And if that were not sufficiently inane, Snyder adds, ” The Federal Reserve has more power over the performance of the U.S. economy than anyone else does.” (Oh really? More power than the President and Congress?)

    And last, “The Federal Reserve controls the money supply . . . “
    (Except that 80% of the money supply is created independently by private banks and 20% is created by Congress and the President.)

    I’m afraid that Mr. Snyder, violates his own rule: “If the American people are ever going to learn what is really going on with our economy, then it is absolutely imperative that they get educated about the Federal Reserve.


    1. “Except that 80% of the money supply is created independently by private
      banks and 20% is created by Congress and the President”

      How about the 12 private Banks in the Federal Reserve are they also creating the money supply?
      Shouldn’t the Fed have complete transparency?
      It would seem simpler to have the Treasury do it’s duties.


  4. Rich:
    Congress doesn’t borrow money in any normal sense. When Congress deficits spends, thats all newly created money. Treasury securities are fiat dollar denominated liabilities of the Federal Govt just like Reserves, and the hard currency is. For example, during the 4 years of Clinton era surpluses, bonds were maturing and being “paid back” without new bond issuance or “rolling over”, during that 4 year span, can you guess how much money came out of the Treasury General Fund at the Fed to “payback” that “debt”? The answer to that question is $0. Not one single penny went towards the principle. All that happens when securities mature is the Fed transfers your money from a timed savings account to a demand account using its computer. There is no such thing as getting the money to repay the debt back, if you buy a treasury bond, your money never went anywhere, it was sitting in your account at the Fed the whole time.


  5. Rodger,

    The US government and treasury (like the government and treasuries in most other countries) is not empowered to simply create currency and spend it, far as I’m aware. It is only empowered to borrow and spend.

    But that additional borrowing will tend to push up interest rates, and assuming the central bank wants to keep rates constant, it will have to create money from thin air and buy up some government debt. So the money creation process is for the most part a joint effort by government and central bank.

    New money creation can also come about even if government is not doing any net borrowing. That happens if the central bank decides to cut rates: as above, it prints new money and buys government debt.

    Of course I’m ignoring commercial bank created money.


  6. Ralph,

    The federal government creates dollars by paying bills, i.e. by sending instructions to creditors’ banks to mark up creditors’ checking accounts. It can do this endlessly.

    Borrowing not only is unnecessary, but doesn’t provide any dollars to the federal government.

    When you lend to the government, you buy a T-security. Dollars in your personal checking account are transferred to your T-security account at the Federal Reserve Bank. A T-security account is essentially a savings account.

    In short, lending to the government is nothing more than making a transfer from your checking account to your savings account. (And paying off the loan is nothing more than transferring dollars from your savings account to your checking account).

    Federal finances are not like personal finances.


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