Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell
●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.
Recently, someone asked me, “What’s wrong with the economy”?
I’ve been at this for almost 20 years, and that little, five-word question, stopped me. I’ve written two books and almost 1200 posts on this blog, given talks, argued, discussed — all trying to answer that question. And now I was fumbling for a succinct answer.
You know how sometimes a long story can be summarized in a single great line? I was looking for that great line.
The ethic of reciprocity (aka the “Golden Rule”) is the basis for most religions. (In 100 BC, Hillel the Elder said, “That which is hateful to you, do not do to your fellow. That is the whole Torah; the rest is the explanation.“) The Golden Rule is a great line.
When General Sherman said, “War is hell,” he told the entire story of war. Everything else is the details.
Abraham Lincoln said, “If slavery is not wrong, nothing is wrong,” which says all one needs to know about slavery and slave holders.
A personal favorite is, “Happy wife; happy life,” which is the shortest formula I know, for a successful marriage.
And then came John Boehner who, in December, 2012 said these five little words: “Let’s be honest. We’re broke.”
The irony of John Boehner mouthing the words “Let’s be honest,” cannot be improved upon, except when followed by the Big Lie, “We’re broke” — what a perfect description of the fall of the American middle class and the increased gap between the rich and the rest.
“Let’s be honest,” meaning, “All this time I haven’t been honest, but at long last I’m going to be honest,” only to be followed by yet another lie. And the public again believes it.
Think of Lucy repeatedly pulling the football away, just as Charlie Brown tries to kick it. Charlie never learns. The American public never learns, in fact, refuses to learn.
Five little words tell of bribed politicians, smug in their confidence they can lie and lie and lie, knowing there will be no punishment — knowing they will be rewarded by their real constituency, the super-rich.
Five little words speak of a media, bought, paid for and owned by the super rich — a media that long ago has forgotten they exist to inform, and now believes they exist only to make money.
Five little words tell of scientists — university and media economists — so cowed from top to bottom, they can’t bring themselves to fight the “company” line. University and media economists so slavishly act as mouthpieces for the rich, they refuse to rise up and tell the truth.
The truth: Our Monetarily Sovereign U.S. government is not “broke,” cannot be “broke,” and never will be “broke.” Its finances are not at all like your finances. The U.S. government, unlike Greece, Italy and local governments, has the infinite ability to pay its bills, and even could do so without collecting a penny of tax from you or from your grandchildren, or by borrowing a penny from China. Austerity is the way to widen the gap between the rich and the rest. That is the truth.
But, in a second irony, if “broke” means “broken,” Boehner actually would be correct. The government has been broken by the rich, the likes of the Koch brothers, Pete Peterson et al, who bribe the media, the politicians and the universities. The government has been twisted and broken by a dishonest Supreme Court, which long ago gave up any pretense of following law, but rather invents law to widen the gap between the rich and the rest.
And then, in yet a final irony, “We’re broke” comes around as the truth, only now the “we’re” doesn’t refer to the government, as Boehner intended, but rather refers to the American people.
We the American people are broke. Lucy continues to pull the football away, and we continue to fall for it. Our wealth has been taken from us. We no longer resist. The Big Lie has taken its toll. We have no strength. We accept our fate.
Let’s be honest. We’re broke.
Rodger Malcolm Mitchell
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded 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.