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.
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The Tea/Republican plan for health care
and the economy:
Bang!
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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
THE RECESSION CLOCK
As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise.
#MONETARY SOVEREIGNTY
#Monetary Sovereignty - Mitchell 
The Democrat Plan for the Economy = slow bleed.
Which is worse?
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The first customer must be the unarmed woman shot to death by DC police.
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i wonder, is that hand in the pic from one of the koch brothers?
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Thanks for posting the video.
Watch the Young Turks LIVE Weekdays 6-8pm EDT
http://www.tytnetwork.com/live/
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though i highly recommend watching TYT for the political commentary (not to mention the comedy–Cenk Uygur is hilarious!), it’s a shame they don’t (at least appear to) understand the economy or the monetary system.
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From: Warren Mosler
Date: Wed, Oct 9, 2013 at 10:28 AM
Subject: *Rand Paul- cold turkey balanced budget is a good thing
Deep down I suspect most of Congress believes what Rand Paul believes.
They believe balancing the budget is the right thing to do for our children and grandchildren.
And, of course, they have widespread popular support for a balanced budget,
and probably enough votes for a balanced budget amendment to the US constitution as well.
So maybe that’s why both sides are ok painting themselves into a corner.
There is no way out apart from one side completely losing face and credibility.
And when something can’t happen, sometimes it doesn’t happen,
and we actually do go cold turkey into a balanced budget.
So what happens when the automatic fiscal stabilizers are disabled?
When the slowdown slows tax revenues, instead of the deficit going up as spending then exceeds revenues,
spending is instead cut, which slows things down further, which means more spending cuts, which slows things down further, all the way to 0, as ‘balance’ combined with the fixed ‘demand leakages’ puts the system in ‘default’.
Said another way, the dollars to pay taxes and net save come from govt. spending.
(you can’t do a reserve drain without a reserve add)
With a balanced budget and automatic net savings/demand leakages, govt. isn’t allowed to spend enough dollars to cover the tax bill.
And when taxes don’t get paid, spending is further constrained, so additional taxes can’t get paid,
further restricting spending, etc. etc. etc.
So given our current institutional structure, the answer is yes, if we balance the budget and leave it that way, the world as we know it is definitely going to end. (And with a bang, not a whimper)
And given the policy of going cold turkey to balance probably does ‘sound like a pretty reasonable idea to the American public’ it’s looking more and more like both sides are setting up to let it happen.
Massive deflationary bias in general
Sales and creditworthiness collapses
Major corporations turn into Lehman and Bear Stearns
Bad for stocks
Bad for credit product
Good for the dollar (harder to get)
Good for US tsy secs (Fed low forever)
Blood in streets if allowed to persist
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“It really is irresponsible of the president to try to scare the markets,” said Senator Rand Paul, Republican of Kentucky. “If you don’t raise your debt ceiling, all you’re saying is, ‘We’re going to be balancing our budget.’ So if you put it in those terms, all these scary terms of, ‘Oh my goodness, the world’s going to end’ — if we balance the budget, the world’s going to end? Why don’t we spend what comes in?”
“If you propose it that way,” he said of not raising the debt limit, “the American public will say that sounds like a pretty reasonable idea.”
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Pulled this gem from the Treasury debt FAQ
http://www.treasurydirect.gov/govt/resources/faq/faq_publicdebt.htm
“Financing the Debt
Why does the debt sometimes decrease?
The Public Debt Outstanding decreases when there are more redemptions of Treasury securities than there are issues.”
So…the debt decreases when securities are redeemed. DUH!
You can also make a private donation to reduce the debt, but lighting your money on fire is just as effective.
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