–Cruz, Boehner admit the federal “debt” is meaningless

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.


You’ve heard this before:

Boehner: “Let’s Be Honest … We’re Broke

That was last year. Now more recently:

Sen. Ted Cruz says legislation raising the debt ceiling is among the best leverage that Congress has to rein in the White House and should include changes to the nation’s new health insurance system.

The Texas Republican said Sunday in addition to what he calls “Obamacare,” Republicans should also look for a “significant” plan to reduce new spending and avoiding new taxes.

He points out that past debt ceiling authorizations included changes to the banking system and mandatory budget cuts.

Think about it. Both political parties, but especially the Tea/Republicans, have told the gullible American public that the federal debt is too high. Right wingers have been screaming this for years.

So what is their solution? Raise the debt ceiling, — if they get their way on other legislative issues, like the Affordable Care Act and reduced taxes on the rich.

If someone truly believes the debt is too high, the last thing they would propose is a legislative barter that raises the debt.

Can you imagine saying this to your wife: “Our debt is way too high. We are broke. But, I’ll go along with borrowing even more and going even deeper into debt, if you agree to buy the Porche I like rather than the Rolls Royce you like.”

It’s nonsensical, for two reasons:

1. If you believed federal debt were too high, your solutions would involve reducing the debt, not increasing it.

2. The federal government is not like you and me. It is Monetarily Sovereign. It creates dollars at will. Debt is not a burden. What erroneously is called “debt,” is nothing more than the total of private deposits in T-security accounts at the Federal Reserve Bank.

Do we dare ask the American people to think about this question: If the nation’s primary debt hawks are prepared to raise the federal “debt” as a political bargaining tool, how real is that debt?

The answer: The federal, so-called, “debt” is not like any other debt. The “debt” is, in fact, bank deposits. The federal debt, being the total of T-security deposits at the Federal Reserve Bank, essentially is identical to deposits in bank savings accounts.

How does the federal government “pay off” its debt? The same way a bank “pays off” its savings accounts. It transfers dollars from a depositor’s savings account to the depositor’s checking account.

Period. Done.

The very fact that the Republicans, and indeed both parties, wish to continue raising the debt ceiling, is proof positive that the so-called “debt” is not a threat, but is necessary for economic growth.

The federal debt is a phony bogeyman, the sole purpose of which today is to convince the American people that spending on social benefits should be limited.

It does nothing more or less than widen the gap between the rich and the rest — exactly what Congress and the President have been paid to do.

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 federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise.


6 thoughts on “–Cruz, Boehner admit the federal “debt” is meaningless

  1. As long as the general public allows its Government to be ruled over and controlled by the FIRE and multi-national corporate sectors we will have this same dog and pony show of a representative one. Only major reforms to the banking and monetary systems will result in the necessary changes taking place. Money must be created solely by the Treasury. The FED must be made a completely non-autonomous part of the Federal Government. Fractional Reserve banking must be abolished and just for hoots when those changes are made maybe our presidential/two party form of government should be given a very critical look. Just my opinion.


  2. Republicans step on their own tongues:

    How The Shutdown Taught The GOP To Love Big Government

    As part of the automatic budget cuts that the GOP extracted from President Obama in the 2011 budget deal, the National Institutes of Health were forced to cut more than $1.5 billion from their budget, affecting “every area of medical research.”

    In 2011, House Republicans voted to cut the special food stamps program for women, infants and children (WIC) by more than $700 million. And in the weeks leading up to the government shutdown, they passed unprecedented cuts to the broader food stamps program, which would have eliminated benefits for millions of people.

    Cantor clashed with FEMA director Craig Fugate in 2011 after Cantor threatened to withhold disaster relief funding without budget cuts to offset its costs.

    Head Start was another target for Republicans during the 2011 budget fight. Their spending bill would have cut the program by more than $1 billion and removed more than 150,000 children from its rolls.

    Now, the Republicans realizing the bankruptcy of their positions, are voting to fund these “big government” programs they formerly voted to de-fund.

    Amazing how when the polls go against them, they suddenly love government spending.


  3. Stephanie Kelton of UMKC was just on MSNBC’s Chris Hayes “All In” explaining the difference between the USA as a monetarily sovereign currency ISSUER, while state and local government, households and business are non-monetarily sovereign currency USERS. The issuer can’t go broke; BUT you, I and others in the public/private sector can go broke. The GOP/tea party seems not to understand this and is figuring they can hold the issuer hostage to get their way, ie, they don’t want Obamacare to succeed.


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