Twitter: @rodgermitchell; Search #monetarysovereignty
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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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Back in June, 2005, in a talk at the University of Missouri, Kansas City, I said, “Because of the Euro, no euro nation can control its own money supply. The Euro is the worst economic idea since the recession-era, Smoot-Hawley Tariff. The economies of European nations are doomed by the euro.”
Subsequently, I’ve written many posts along the same lines, one of the more definitive being: “There are two, and only two, long-term solutions for Greece and the other euro nations.” Thursday, Nov 3 2011, which included:
For Greece and the other euro nations, long term survival requires one of two, and only two, events:
1. Adopt some form of a sovereign currency, and become Monetarily Sovereign
or
2. The EU give (not lend) euros to its member nations as needed.There are no other solutions. None. All the running in circles by the European financial geniuses will be to no avail. Each day they come up with some new lending plan, and the next day abandon it in favor of some other lending plan.
At the top of today’s, and most recent posts, is the comment:
●Austerity is the government’s method for widening the gap between rich and poor, which ultimately leads to civil disorder.
That comment contained a link to: One poll: What America believes about the likelihood of revolution, which included:
Three in 10 registered American voters believe an armed rebellion might be necessary in the next few years, according to the results of a poll released Wednesday by Fairleigh Dickinson University’s PublicMind.
Just this past Thursday, the Daily Kos ran the article, “The pitchforks are coming out in Europe,” which included these lines:
Events in Italy are turning serious. President Giorgio Napolitano has warned of “widespread social tension and unrest” in 2014 as the Long Slump drags on.
Those living on the margins are being drawn into “indiscriminate and violent protest, a sterile lurch towards total opposition”
The protest movement in Italy is literally called the Pitchfork Movement (Movimento dei forconi). Their demands are no less than the overthrow of the government.
“The wind of revolt that is blowing in Italy today is the direct result of the euro and the wrong choices made by the EU and the ECB.” – Mario Borghezio, Northern League member
Greece is experiencing its worst deflation in 50 years. Credit in Spain and Italy is contracting at a rate of 6 to 12 percent a year. Soon there simply won’t be any money for people to live on.
It all was predictable. We predicted it:
The rich created the euro.
The euro requires austerity.
Austerity is another word for “deficit reduction.”
Deficit reduction widens the gap between the rich and the rest.
Always.
The people of Greece, France, Italy — they just now are learning about deficit reduction. They are learning deficit reduction is the primary sword of the rich, used to slash and impoverish the middle- and lower-income groups — to widen the gap.
You are watching the slow death of the European people — the death of a thousand cuts — because of deficit reduction, the sword wielded by the rich.
Look around. Everywhere you see your blood flowing from deficit cuts, cuts and more cuts, while the rich blame you for the misfortune they cause you.
How long before you realize what is being done to you?
●The penalty for ignorance is slavery.
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
As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise.
#MONETARY SOVEREIGNTY
#Monetary Sovereignty - Mitchell 
Take a deep bow, Rodger! You knocked this one out of the park!
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Sometimes I like to add my own corollaries to “Mitchell’s Laws.” Here’s one…
ALL CLAIMS THAT SUPPORT AUSTERITY ARE THE EXACT OPPOSITE OF THE TRUTH.
EXAMPLE 1: Rodger says, “Austerity is the government’s method for widening the gap between rich and poor, which ultimately leads to civil disorder.”
Exactly. And the purpose of the euro is to make austerity obligatory. Euro-zone pundits, professors, and politicians all favor the euro, since they all work for the rich. The more damage is caused by the euro, the more these toadies insist that the euro is the only thing that prevents even worse damage. (The exact opposite of the truth.)
Also, the euro allows European nations that have a trade surplus (e.g. Germany) to extract all wealth, energy, and resources from nations that have a trade deficit (e.g. Greece). This is why Germany is the loudest champion of the euro, why Germany has the strongest economy in the euro-zone, and why the ECB is located in Frankfurt. Indeed, the euro scam has been so successful that Germany is now building a huge new skyscraper to house its ECB. Its twisted vertical lines reflect the extortion that is the euro scam.
A small percentage of average Germans oppose the euro, because they believe their government’s lie that, “Germany is carrying the rest of Europe on it backs.”
Once again, this is the exact opposite of the truth. The euro causes the rest of the euro-zone to carry Germany on its back.
EXAMPLE 2: Rodger says, “A growing economy requires a growing supply of money.”
Some people object to this, saying that our planet does not have enough physical resources to sustain an endlessly growing economy. Hence they reject Keynesianism. They say that austerity is a good thing.
My response…
First, an economy (any economy) is either growing or shrinking. There is no standing still. This is a universal law, regardless of whether a society is capitalist, communist, or whatever. Currently the US financial economy is growing, while the US real economy is shrinking because of austerity, and because of the parasitic financial economy.
Second, a growing economy need not entail the depletion of material resources. We can conduct research into greater fuel efficiency, into eco-friendly recycling, and so on. However, such research and development requires a lot of money — indeed, a growing money supply.
Austerity prevents such research, thereby making the depletion of resources swift and inevitable.
Once again, all claims that support austerity are the exact opposite of the truth.
EXAMPLE 3: Rodger’s “Nine Steps to Prosperity” entails money given out by the US government.
Right-wingers object to this, saying, “The more you pay people to be poor, the more you create poor people.”
The right-wing solution is austerity (i.e. engineered famine, plus an ever-widening wealth gap). Famine reduces the poor by killing them en mass, but since the wealth-gap destroys the middle class, it causes the number of poor people to grow regardless.
Once again, all claims that support austerity are the exact opposite of the truth.
Rodger’s “Nine Steps to Prosperity” would get money into the economy, thereby reducing poverty by creating jobs.
EXAMPLE 4: Austerians claim that social programs expand poverty by making people lazy.
Once again, this is the exact opposite of the truth. The more wealth and power a man has, the more he desires additional wealth and power. This is human nature. Thus, the more you empower people, the more you cause them to be energetic and ambitious.
Looked at another way, human greed can be a virtue or a vice. Greed is a virtue when society is structured so that everyone’s greed serves everyone else’s greed. This virtue is encouraged by stimulus spending.
Greed is a vice when society is structured so that everyone’s greed serves the 1%. This vice is encouraged via austerity.
Right-wingers claim that the vice is a virtue, and that austerity will bring prosperity for all.
Once again, this is the exact opposite of the truth.
EXAMPLE 5: Austerians say, “There is no free lunch, and the lower classes’ desire for a free lunch is what keeps them poor. The cure is austerity.”
Once again, this is the exact opposite of the truth. The more you starve the masses, the more you cause them to desperately seek assistance. The austerity “cure” is like using leeches to “cure” anemia.
Meanwhile, the higher you are on the social ladder, the more you demand (and receive) a free lunch.
For instance, the Fed’s quantitative easing program causes banks to have excess reserves. The US banking system requires banks to hold their excess reserves in a Fed account, where the reserves earn one quarter of one percent interest. I don’t know how large these excess reserves have grown, but one quarter of one percent interest on $85 billion per month equals a cool $212.5 million per month. That’s a free lunch that big banks get for doing nothing.
And since the big banks get an instant free lunch, they have no incentive to make business loans that stretch out over time, carry risk, and are not profitable in a low-interest climate.
(Note that before the 2008 crash, the Fed did not have authority to pay interest on excess reserves. Paulson and Geithner fixed that by holding a gun to America’s head.)
QE is just like austerity: every claim that is used to defend it is the exact opposite of the truth.
Claim: QE give banks an incentive to lend
Reality: QE gives banks an incentive to not lend
Claim: QE stimulates the economy
Reality: QE kills the real economy by stimulating the financial economy.
Claim: QE causes stock holders to spend more into the real economy.
Reality: QE causes stock holders to speculate in the financial economy.
Black is white. Circles are square. Freedom is slavery. War is peace. Austerity is mass prosperity.
Welcome to the madhouse.
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Claim: Low interest rates stimulate the economy
Reality: Low interest rates reduce the amount of interest money the government sends into the economy. Low interest rates reduce the federal deficit, which is why the government does it.
https://mythfighter.com/2009/09/09/low-interest-rates-do-not-help-the-economy/
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And it’s all coming to a town very near to you, my amerikan friends. It’s much to late to persist in the belief that a few little tweaks here and there to the present laws and/or our way of life will make it all better. Coming to you at light speed.
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