–We keep tilting at windmills, and the windmills are winning.

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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Some frightened folk fret that their guns will be taken from them, so they won’t be able to kill innocent animals or strangers or friends or family members.

Some deluded folk fret that the American government will run short of money, while the American people have too much money, so the people should send more money to the government and the government should send less money to the people (aka “deficit reduction”).

Some befuddled folk believe the federal government must “live within its means,” despite it having no means – or that the growing (misnamed) “debt” will cause a Weimar-like hyper-inflation, which never has happened in the history of America, not even during world wars or depressions, and despite the so-called “debt” not even being a debt, but rather a deposit.

Some generous folk believe the poor are selfish “takers” who happily and unfairly enjoy surviving on food stamps and living in crime-ridden, filthy squalor, rather than work.

Some vengeful folk fret that impoverished women will evade their rightful punishment for being poor and pregnant, by aborting future impoverished “takers.”

Some confused folk believe their federal taxes pay for unfair and excessive benefits to the poor, despite the fact that federal taxes pay for nothing.

Some conned folk believe Fed Chairman Bernanke, when he tells them Quantitative Easing (QE) stimulates the economy, despite the undeniable fact that it reduces the dollars the government pays into the economy via T-security interest, thus depressing the economy.

Some brainwashed folk believe the few rich are the “makers,” who provide jobs, when in fact, they are America’s worst takersthemselves overpaid employees of corporations that underpay millions of other employees.

Those same innocent folk believe the Supreme Court, when it tells them that money is speech, so the more money one has, the more speech to which that rich person is entitled. And corporations are American people, entitled to the same rights as the American people themselves.

Some illiterate folk believe Obama is a liberal who really wants to help the “little man,” and the Republicans really want to grow the economy, and the Tea Party really wants to keep the government solvent, despite the clear fact that the opposite is true in all three cases.

Some innocent folk believe that unless a politician is caught actually stealing money, that politician is unbribed, honest, and truth-telling, despite the fact that what the politicians are stealing is our power and our freedom.

And God help anyone who tries to tell those absolutely certain folk anything different because, they will respond in invective, attached to such lines as “I’m not an economist, but I know . . . [insert nonsense here, to be followed by more nonsense].” Uneducated in a science, they know all there is to know about that science.

And sadly, some of us Quixotic folk keep trying to educate the above-mentioned folk, when we could be engaged in far more productive enterprises – like watching TV game shows, drinking beer or snoozing on the couch.

But having learned nothing from failure, here we go, again:

TruthDig
Judge Blasts Feds for Failure to Go After Wall Street Fraudsters

U.S. District Court Judge Jed S. Rakoff has written a scathing indictment of the federal government’s approach to prosecuting Wall Street finance and banking executives, concluding that timidity, lack of resources, and a desire by individual prosecutors to pluck the low hanging fruit of fraud cases has left the country’s top financial wheeler-dealers unscathed by the likely crimes that seized up the world economy.

An accused corporation can negotiate a settlement, pay a fine, promise not to sin again, then pass along the costs to consumers and shareholders and maybe fire a subordinate executive or two for public relations value.

Meanwhile, the individuals responsible—or who most benefited from willful ignorance—pay no penalty for their crimes.

No, Judge Rakoff, it isn’t timidity. It isn’t lack of resources. And it isn’t a desire to pluck low-hanging fruit. If President Obama wanted prosecutions, there would be prosecutions.

So why doesn’t Obama want prosecutions?

Because he has been bribed by campaign contributions and promises of lucrative employment for him and his family, after he leaves office. (Call it the “Clinton” syndrome.)

The rich do not want prosecutions of the rich. They want prosecutions of the poor, for far lesser crimes, to keep the poor in line.

Finally, consider that hoped-for, big Obama Presidential Library for which billionaire Penny Pritzker undoubtedly will raise funds, and for which she has been pre-rewarded with the title, Secretary of Commerce.

Obama’s entire Chicago history has been to toady up to the mega-wealthy and allow them to lift him to glory.

That has been the source of success for a man who essentially has accomplished nothing — nothing in the private sector, nothing as a Senator and nothing as a President — nothing that is except to stump for reductions in Social Security, Medicare and other social programs — nothing but the ironically named “Obamacare,” for which he did little to create, even less to pass, and nothing to supervise.

Progressives on the Take
Robert Scheer

(Obama) he warns us that sharply rising income inequality “is the defining challenge of our time” and pledges to reverse “a dangerous and growing inequality and lack of upward mobility. …” But then he once again turns to the same hacks in the Democratic Party who helped create this problem to fix it.

His tough speech on income inequality earlier this month was delivered at the Center for American Progress, founded by John Podesta. As chief of staff to Bill Clinton, Podesta helped lead the charge to deregulate Wall Street.

(There was) the appointment of Lawrence Summers and Timothy Geithner, two former Clinton officials responsible for the banking meltdown, to repair it.

The pattern was set by Obama when, in his successful race for the presidency, he decided to shun public financing and instead shamefully courted the Wall Street fat cats who bankrolled him handsomely. It is not surprising then that in his major speech on income inequality, there was no mention of the role of the big banks in fostering this inequality.

(Obama said), ” . . . in the past, the average CEO made about 20 to 30 times the income of the average worker, today’s CEO now makes 273 times more. And meanwhile, a family in the top 1 percent has a net worth 288 times higher than the typical family, which is a record for this country.”

Big talk, but his “grand bargain” features the budget cuts that have made this deplorable situation possible.

The rich are not winning. It is the middle and the poor who are losing. They are the ones who buy into the Big Lie, and announce that though they are not economists, they are absolutely, positively sure they understand economics, and absolutely, positively will not listen to facts that disagree with their uninformed intuition.

Bottom line: The windmills are winning.

Rodger Malcolm Mitchell
Monetary Sovereignty

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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
Monetary Sovereignty Monetary Sovereignty

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

#MONETARY SOVEREIGNTY

8 thoughts on “–We keep tilting at windmills, and the windmills are winning.

  1. This is the compromise: Not how much the government should send into the economy, but rather, how much the economy should send to the government. In Obama-speak, that’s known as “creating jobs.”

    Senate approves budget deal; Obama set to sign
    Vote signal truce in Hill budget wars

    The only war was to see who could fool the voters better, and get more votes. As long as voters believe the Big Lie, they will continue to be screwed.

    Like

  2. Roger,

    “the people should send more money to the government and the government should send less money to the people (aka “deficit reduction”).”

    This is inaccurate. Deficit reduction does not mean the government will send “less” to the people than the people send the government. It means the government will SLOW the extra spending it’s already doing. In other words, if today the government spent 1 trillion over tax receipts, next year it will spend 700 billion over tax receipts. To Roger, this constitutes to “deficit reduction” and “bad” for the people. Sure Roger, less stealing is bad for the people. The GINI chart you’ve shown a few times – does not jive with this theory that growing deficits are “good”.

    Roger,
    When was the last time the government spent what the same amount the people sent them (aka, a balanced budget)? Oh wait, not since the 1970s – right when the gold standard was scrapped.

    Let’s call what deficit spending is – THEFT.

    Like

    1. If the government spends $1 trillion and taxes $700 billion, that’s a $300 billion deficit. If it then decides to spend $900 billion and tax $800 billion, it has reduced the deficit by spending LESS and taxing MORE.

      As for “stealing,” from whom are the people “stealing”?

      If you feel that receiving government benefits is “stealing,” be sure to refuse your Social Security and Medicare benefits, and don’t drive on any federal highways, don’t eat government inspected foods, don’t take government approved drugs, don’t depend on the army, FBI and CIA to stop bad guys from hurting you, don’t fly in federally protected air traffic, or go to the Grand Canyon or any other national park, don’t sue in federal court, and don’t send your tax return to the federally paid-for IRS, where it will be opened by government employees.

      Those are all part of deficit spending, which according to you, is “stealing.”

      With your every comment, you demonstrate the point I made in the last paragraph of this post and in many other posts.

      Thank you.

      Like

    2. Bapoy, you are just plain wrong about the dates. The USA had surpluses under Clinton – even “better” than balanced budgets according to the psychotic “sound finance” that rules everywhere.

      Deficit spending is stealing? Well, then money is stealing. Every unit of money everywhere, and for all time, in the past and in the future, comes from deficit spending. Including governments backing a not very valuable commodity, gold, with their valuable “fiat” money. So if deficit spending is theft, gold is theft too.

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  3. Comments by Libertarians should be ignored and not responded to. To Mr. Bapoy, I would love to meet you in a very dark alley and have a discussion about social darwinism, a creed you certainly agree with.

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  4. I can understand Bapoy’s love of gold standard in that it is a way to fix and stabilized the currency; a false sense of security from very limited backing.

    One disadvantage of a gold standard is that the health of a country’s economy is dependent upon its supply of gold. Countries without any gold are at a big competitive disadvantage. Gold produces a selfish hoarding disparity.

    A gold standard causes countries to become obsessed with keeping their gold, rather than improving the business climate. Gold looks great, sounds great, and is great….for its conductivity, malleability, and other properties, but that’s not good enough for backing a multi-trillion dollar economy.

    The only real, functional, and plentiful backing of any advanced economy is what is now being used– and has been for over a century: electricity and knowhow

    Like

    1. tetrahedron720, I much enjoy your comments, but for the first time I shall disagree with something you wrote:

      “One disadvantage of a gold standard is that the health of a country’s economy is dependent upon its supply of gold. Countries without any gold are at a big competitive disadvantage. Gold produces a selfish hoarding disparity.”

      Actually that’s not how the real world operates. Gold has no intrinsic value except as dental fillings, and as a good conductor of electricity. You can’t eat gold, or wear it, or sleep under it, or plant it in the ground and grow it. Gold only has “wealth” in relation to a monetary system, which itself is ruled by the rich and their toadies (e.g. by governments).

      When the Spanish conquistadors invaded the Americas, the natives could not understand the Spaniards’ murderous obsession with gold. The Spaniards sought to enslave the natives, extract the gold, and return to Europe, where the monetary systems would give value to the gold, thereby making the Spaniards rich.

      Therefore, the nation with the strongest army, economy, and banking system has the most wealth and power, and controls the most humans and most natural resources, regardless of how much gold the nation has or does not have.

      Perhaps you have seen the saying, “Remember the golden rule: he who has the gold makes the rules.”

      This saying is incorrect. The truth is the reverse: “He who makes the rules gets the gold.” Power does not accrue to whoever who has the most gold, but to whoever controls the monetary and banking system.

      No nation has ever had a permanent gold standard anyway. Throughout history, nations have canceled their gold standard during crises, and then resumed their gold standard after the crises, and gone off it again, back and forth over time. The USA finally did away with that nonsense in 1971.

      Consider “gold exchanges,” in which traders speculate not in gold, but in “shares” not backed by gold or anything else. The only thing that keeps the game going is the “cabbage patch doll” mentality.

      And yet, millions of people remain deluded that gold has an intrinsic monetary value. Whole governments suffer from this silly delusion about gold.

      Rodger calls it “tulip bulb mania,” in which “masses of fools buy a useless product, hoping that later they will sell this useless product to even bigger fools.”

      See…

      https://mythfighter.com/2012/12/01/russia-south-korea-mexico-india-and-brazil-buy-tulip-bulbs-to-hedge-against-the-dollar/

      Like

      1. Thanks quatloosx, that’s a classic RMM piece for sure. Brilliant closer to your comment tetra, ‘electricity and know how.’

        Like

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