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 ultra-rich of the world, of America and of your state, county and city, have a simple, two-pronged system for world domination: Disinformation and Privatization.
DISINFORMATION
The disinformation revolves around the federal deficit. The ultra-rich, right wing has established numerous “think tanks” (propaganda tanks) to spread The Big Lie — the lie that the finances of a Monetarily Sovereign government (as is the U.S. government) are the same as the finances of monetarily non-sovereign entities like you and me (and the states, counties and cities).
An example of this is President Obama’s oft-repeated statement: “We need a government that lives within its means.” It is, of course, an absolute, unmitigated lie.
His lie implies that the federal government is like you and me, and so should spend no more than the money it receives (in taxes).
But, a Monetarily Sovereign government, creates its sovereign currency ad hoc, by spending. It has no “means.”
The best (worst?) execution of The Big Lie was committed by John Boehner, who famously said, “Let’s face it. We’re broke.”
We weren’t “broke” then. We aren’t “broke” now. And it is 100% impossible for the United States ever to be “broke,” if being “broke” means we couldn’t pay our bills.
(Due to Boehner et al, American citizens are going broke — the inevitable result of The Big Lie.)
The Big Lie disinformation has been spread throughout the U.S. and the world, by the politicians, the media and the world, all of whom have been bribed by the ultra-rich.
The politicians have been bribed via campaign contributions and promises of lucrative employment, later. The media are owned by the ultra-rich. And the economists are employed by universities that have been bribed via donations from the ultra-rich.
Together, they constitute one prong of the ultra-rich program for world domination. The second prong is:
PRIVATIZATION:
This begins with the unproven, completely false propaganda that the private sector always is more efficient, more caring, more creative and more productive than the public sector. Time and again, that has proven not to be true.
The infamous Richard M. Daley, former mayor of Chicago (a monetarily NON-sovereign government), did not let the city live within its means. He spent recklessly, much on bribes to the unions, who helped re-elect him, thus accumulating huge, unsustainable debts.
To pay these debts, he began to privatize assets of Chicago — a toll road went first. The city’s parking meters were privatized next. In both cases, the assets were sold at a steep discount, enriching the wealthy investors who bought them.
(Chicago’s 2nd largest airport, Midway, was next in line, but thankfully, Daley retired before he could commit another larceny on behalf of the rich.)
Tolls and parking rates went up enormously, the rich will continue to rake in excessive profits for the next hundred years (the term of the contracts), Chicago no longer will receive the financial benefits of these assets, and the citizens will pay the price.
The rich right wing repeatedly has tried to privatize Social Security, so that the public would be required to invest with Wall Street brokers, rather than having an assured, safe income from the government. The economic disaster of 2008 demonstrated the folly of that approach.
Consider these excerpts from an article in the blog called “Truthdig”:
Goodbye to the U.K.’s National Health Service?
Alexander Reed Kelly; Jan 10, 2014National Health Service official Kailash Chand predicts the inexpensive and efficient nationalized system could be replaced by a largely privatized version involving worse “access, equity, health outcomes and cost” within five years.
The service is ready to be sold in pieces to private corporations by Prime Minister David Cameron and MP and Secretary of State for Health Jeremy Hunt, both members of the Conservative Party.
[Chand said,] In the past two years, £11bn worth of our NHS has been put up for sale, while 35,000 staff have been axed, including 5,600 nurses. Half of our 600 ambulance stations are earmarked for closure. One-third of NHS walk-in centres have been closed and 10% of A&E units have been shut. Waiting lists for operations are at their longest in years as hospitals are consumed by the crisis in A&E.
This privatization not only is supported by the false dictum of deficit reduction, but also by the equally false dictum of private cost efficiency vs. public cost inefficiency.
First, deficit reduction for a Monetarily Sovereign nation is a path to economic disaster. To grow economically, Monetarily Sovereign nations need to increase, not decrease, deficit spending.
Second, not only is for-profit industry often LESS cost efficient than public industry, but a Monetarily Sovereign government doesn’t need to be cost efficient.
Assume, for a moment, that a certain project could be accomplished at a cost of $1 million by a for-profit company, and that a Monetarily Sovereign government would pay $2 million for the same project. Which approach is better for the economy?
The answer: The $2 million, government approach is better, because it pumps an additional $2 million into the economy and into the pockets of the citizens.
In summary, the two-pronged plan, the two-headed monster — Disinformation and Privatization — is being sold to the middle class as a necessary, desirable and efficient program for economic progress.
It is just the opposite: an unnecessary, undesirable and inefficient program for economic regress and for widening the gap between the rich and the rest.
Deficit reduction and privatization are devices used by the rich to widen the gap between them and the non-rich. That is their sole purpose.
You won’t hear this from the politicians; the rich have bribed them. You won’t hear it from the media; the rich own them. You won’t hear it from the economists; they work for the rich in universities and right-wing think tanks.
But you heard it here, and now you know.
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) Or institute a reverse income tax.
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)
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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. Federal deficit growth is absolutely, positively necessary for economic growth. Period.
#MONETARY SOVEREIGNTY
#Monetary Sovereignty - Mitchell 
here’s an article that kinda goes along with what rodger says above: http://www.bbc.co.uk/news/world-us-canada-25691066
gees, i wonder how they all got so rich?
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[1] Privatization: the process whereby rich people get control of public assets for little or no money, and use the assets to dramatically boost their personal profits at the expense of the public at large. The profits are then used to get control of more public assets, in a cycle that causes extreme inequality and a permanent depression.
(cf. reform, efficiency, liberalization, austerity, right-wing a-holes)
Often the culprits are politicians, e.g. the “honorable” Richard M. Daley, who used public monies for his own gain, and then paid the resulting debts by selling off Chicago, making average people poorer.
[2] Rodger writes, “The rich right wing repeatedly has tried to privatize Social Security, so that the public would be required to invest with Wall Street brokers, rather than having an assured, safe income from the government. The economic disaster of 2008 demonstrated the folly of that approach.”
Yes, but SS will be privatized anyway. The public can no longer be suckered with false promises of huge retirement benefits if they send their FICA taxes to Wall Street. Therefore Social Security is falsely branded “unsustainable,” and will be repeatedly cut until the desperate masses beg for privatization. The rich and their toadies will claim, “It’s either privatization or nothing.” And the public will fall for it.
Privatization of SS is inevitable. The public can squawk all its wants, but people will continue to submit as long as they believe the Big Lie.
[3] Rodger’s citation of the British example proves my claim that British conservatives are even more austerity-mad than US Republicans. PM Cameron and his finance minister Osborne are well on the way to 100% privatization of British health care. So are PM Harper and his finance minister Flaherty in Canada.
They get away with this because the public believes the Big Lie.
[4] Speaking of the Big Lie, it could be used as a plot device for an episode of “Star Trek” …
The Enterprise visits a planet which long ago experienced a war so devastating that survivors were forced to move underground. Everyone is now sealed off from the surface, and his only source of oxygen is a heavy steel bottle he must carry on his back. Oxygen in the bottles comes from special “synthesizers” that were invented for the post-war emergency. Over time, the survivors built a huge underground city, but they must still carry oxygen bottles even today.
When the Enterprise arrives, the planet’s surface has recovered. Plant and animal life are once more abundant. The atmosphere is whole. Oxygen is limitless. This is well known to the rulers of the underground city, but they tell the lower classes that the planet’s surface has no air at all.
The original high-tech air synthesizers broke down long ago, and were replaced by simple blowers that suck down air from the surface, and funnel oxygen into tanks for dispersal to average people underground. However, average people don’t know this. The air blowers are heavily guarded, and their functioning is highly classified for reasons of “national security.” Therefore, average people think the simple blowers are mysterious high-tech “synthesizers” that can only be understood by “experts.”
The underground society is ruled by “air-ligarchs” who live in extreme privilege and luxury because they control the air “synthesizers” (i.e. they control the simple and ordinary blowers that bring down air from the surface). These rulers also control the means whereby air is put into tanks, and by which the tanks are dispensed to the lower classes. Indeed, air is “money.” Originally this air-money was stored in tanks that were lent, traded, and used to buy goods and services. Today, bits of metal and paper are used to represent air. The higher your status, the more bits of metal and paper you have. The lower your status, the more you must toil and slave to have any air in your bottle at all.
Your moral and social worth is measured by how many bits of metal and paper you control. The “air-ligarchs” are infinitely good, since they have infinite air, which (unknown to the peasants) they get from the infinite supply on the surface. Unlike the lower classes who must carry heavy oxygen tanks, and who spend their lives clutching their masks, gasping and choking with asphyxia, the ruling air-ligarchs live in huge, luxurious bubble-chambers.
Although the air-ligarchs get limitless air for doing nothing, they tell the lower classes than there is “no free lunch, and no free air.” They claim that all the air has “run out” (i.e. that the system is “bankrupt”). They claim that everyone has a gigantic and growing “national air debt” that their children will someday have to pay off. They claim that the solution is “air-sterity” — i.e. if the peasants want more air in the future, then they must have less air in the present. (The rulers have been saying this for centuries.) They say that “air-sterity” means prosp-air-ity, since true asphyxia would mean no air at all.
“Air-sterity” is only one name for this nexus of lies and oppression. Other names include “reform,” the “free market,” “structural adjustment,” “fiscal responsibility,” a “business-friendly environment,” and so on. Anyone who questions the lies is branded an “air-orrist” (equivalent to terrorist).
In the lower classes, some of the people get extra air for themselves by acting as toadies for the air-ligarchs at the expense of their fellow slaves. They endlessly repeat the Big Lie that the air has “run out,” and that ordinary people must have less air. (Always less.) Examples of such swindlers include politicians, professors, and media pundits.
Incredibly, the more that ordinary people suffer and suffocate, the more they defend their agony. The more the Big Lie strangles them, the more they uphold it. Each person has his own reason for doing this, but all reasons are based on hate and selfishness. Anyone who suggests that there is plenty of air on the planet’s surface is dismissed as “insane.”
When the USS Enterprise arrives, Captain Kirk vows to end the misery by revealing there is limitless air on the surface. Kirk expects resistance from the ruling air-ligarchs, but the rulers just smile and encourage him to, “Tell the peasants whatever you like.”
And so Kirk and his crew explain the truth to the masses, while transporting many of them out of the underground city. Once on the surface, the natives joyfully rip off their oxygen masks, drop their heavy tanks, and finally breathe free. When the natives return underground, they excitedly talk through their masks, telling everyone about the paradise they saw on the surface.
Suddenly Kirk hears laughter behind him. Turning around, he sees the rulers in their air bubbles, watching the crowd with delight. In the next instant the peasants surround the Enterprise visitors and slaughter them, along with everyone who visited the surface.
Each of the attackers has his own reason for doing this. For some people, slavery and suffering are “God’s will.” For others, it would be intolerable for their neighbors to have plenty of air. For still others, the idea of infinite air on the surface is absurd, unscientific, and a violation of “common sense.” For professors, media pundits, and politicians, plentiful air would deprive them of their privileged status. And so on. The reasons vary with each individual, but all reasons arise from hate and selfishness. Denial of the truth is not based on a failure of intellect, but of moral character.
Captain Kirk alone escapes, having told his ship to “beam him up” in the nick of time. As he enters the bridge of the Enterprise, he tells Spock, “Those people down there are insane.”
“Naturally,” Spock replies. “That’s why we have the non-interference directive. No matter how well-intentioned, any contact with insane people can only increase their insanity.”
“I wanted to ease their suffering,” Kirk says.
“A noble sentiment, but you thought you could actually do it, which proves that you went temporarily insane yourself. The worst madness of all is to try reasoning with madness.”
The Enterprise then warps out of orbit, and later encounters another planet with an almost identical scenario to the previous one. In this case, the money supply consists not of infinite air, but of infinite numbers in bank computers, controlled (once again) by people at the top of society. Here, though, average people’s suffering is immeasurably worse than that of the previous planet. Indeed, this new planet is an absolute nightmare.
“Shall we make contact?” Spock asks.
“No way!” Kirk responds. “I don’t intend to make the same mistake again. Set course for our next destination, and hurry.”
As the ending credits roll, fans of the “Star Trek” show are disappointed.
“That was a lousy episode,” groans one viewer. “The storyline was implausible; especially that second planet with 100% digital money. The only real money is gold. Also, people don’t attack the messenger like that. When average people are told the truth, they eagerly accept it, especially if it means it will end their slavery.”
Meanwhile a saucer-shaped craft hovers in the sky above the viewer. Inside the craft, one extraterrestrial says to another, “Those earth beings down there are in total denial, but their suffering is extreme. Shall we make contact, and end their agony?”
“No way!” the other responds. “I don’t intend to make the same mistake again. Let’s get out of here!”
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I like the plot. The planet without air, seems vaguely familiar, but since I don’t have Total Recall, I can’t quite remember.
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My rebuttal.
http://sucesofinanciero.blogspot.com/2014/01/response-to-roger-mitchell-ultra-rich.html
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“As only slightly more than one percent of Americans make more than $200,000 annually and less than four-tenths of one percent make $1,000,000 or more annually, there are not enough people with discretionary income to drive the economy with consumer spending. When real median family income and real per capita income ceased to grow and began falling, Federal Reserve chairman Alan Greenspan substituted a credit expansion to take the place of the missing growth in income. However, as consumers became loaded with debt, it was no longer possible to expand consumer spending with credit expansion.
World War II left the US economy the only undamaged industrial and manufacturing center. Prosperity ensued. But by the 1970s the Keynesian demand management economic policy had produced stagflation. Reagan’s supply-side, voodoo, kept the fictitious economy appear to be working for close to another twenty years. But the collapse of the Soviet Union brought an era of jobs offshoring to large Asian economies that formerly were closed to Western capital. Once corporate executives realized that they could earn multi-million dollar performance bonuses by moving US jobs abroad and once they were threatened by Wall Street and shareholder advocates with takeovers if they did not, American capitalism began giving the US economy to other countries, mainly located in Asia. As high productivity manufacturing and professional service jobs (such as software engineering) moved offshore, US incomes stagnated and fell.
As real income growth stagnated, wives entered the work force to compensate. Children were educated by refinancing the home mortgage and using the equity in the family home or with student loans that they do not earn enough to repay. Since the December 2007 downturn, Americans have used up their coping mechanisms. Homes have been refinanced. IRAs raided. Savings drawn down. Grown children, now adults, are back home with parents. The falling labor force participation rate signals that the economy can no longer provide jobs for the workforce. In such a situation, economic recovery is impossible”.
A little bit of reality for you, moron. It certainly appears as though a lack of DISCRETIONARY INCOME, that’s extra cash in your empty pockets, is the culprit. It surely is not a lack of goods and services; as you fantastically believe. In fact, rather than inflation, presently deflation is what we should sweat about. As I stated on your so-called “blog” you are frighteningly misinformed; or maybe just delusional. Libertarian swine.
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Thanks chasfa. Superb assessment on your behalf. I especially enjoy the final paragraph. Plus, what kind of moron can’t even bother to spell RMM’s first name correctly? Undoubtedly it’s just a slighting gimmick.
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There were numerous other errors as well. I momentarily thought of correcting them (again), but then I decided to not expend the effort.
Some people “get it” the first time. Some people need to hear information several times before they grasp it. Still other people (like me) need to hear it a hundred times before they catch on
And then there are people who NEVER get it, no matter HOW many times they hear it. If we continue repeating the facts to them, then it is we who are the fools, aye?
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The NHS in the UK has a notorious reputation for not providing adequate care – is this just due to insufficient funding? It’s clear that a monetary sovereign federal government can provide funding for health care, but should it be managing it as well? Can this be fixed? Can ObamaCare be fixed? What would you suggest?
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“The NHS in the UK has a notorious reputation for not providing adequate care”
Which just shows you that you shouldn’t listen to right wing propaganda.
The NHS in the UK is pretty damn good, and deals with the overwhelming majority of cases in a completely satisfactory fashion – each day, every day. From before you are born, until the day you leave. For everybody, whoever you.
The rest of the developed world has had very good public healthcare for a very long time. It works, it delivers and it is very, very efficient.
Only the US holds out on this, and that marks it out as a backward country with severe social maturity problems.
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“Which just shows you that you shouldn’t listen to right wing propaganda.”
Yes, it’s amazing how average people mindlessly repeat every right-wing lie they hear.
On a different note, the quality of UK health care is indeed going down, because of funding cuts by David Cameron and his conservative terrorists, including “Sir” David Nicholson, head of the NHS. The goal is 100% privatization, which will be easily achieved, since the British public believes the Big Lie that the UK government is “broke” (when in fact it has infinite money).
David Nicholson has already cut NHS funding by £10.8 billion, and his cuts will continue to increase until the masses beg for the mercy of death. That is, until the masses are so desperate that they beg for any relief, even if it means 100% privatization. Indeed, the more the masses suffer, the more they find privatization attractive. It’s all part of the plan, and it works every time, since the masses love the Big Lie more than they love their social benefits. The more I want benefits cut for others, the more my own benefits end up being cut.
With privatization, taxes remain in place, but the tax revenue no longer goes to the government (which destroys the revenue). Instead, the monies go to the rich leaders of private companies, who keep all the loot for themselves.
As a reward for his attack on the public, Nicholson was knighted, and receives a basic salary of £200,000, plus £50,000 in expenses, plus benefits-in-kind of £37,600. The more bloated he becomes, the more he demands “efficiency savings” for his victims. Meanwhile he spends millions of pounds in public money on artworks. One of the NHS trusts boasts of being the largest art gallery in Liverpool. Nicholson pays his “art coordinators” £56,000 per year, while a nurse’s starting salary is £21,000. And now, because of the cuts, the shortage of nurses has reached 20,000. Another 10,000 NHS personnel have been fired since 2010.
Nicholson will supposedly retire in March 2014, but David Cameron has vowed to continue Nicholson’s attack. Cameron’s henchman, George Osborne, says that health care funding will be cut by another £9.2 billion in 2014, and another £10 billion by the end of 2015.
In response, the British masses will march in the streets, but they will remain helpless as long as they cling to the Big Lie.
Already in the UK, one in three hospitals faces a financial crisis because of the cuts, and because of gratuitous austerity, which maintains the depression.
As hospitals across the nation start shutting down, the suffering will become extreme.
But again, average people will have only themselves to blame, since they insist on clinging to the Big Lie.
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I’m really glad that I was misinformed about the NHS in the UK and I’m glad it actually works. But where is the press, white papers, anything really, that show this? Google search must be involved in a grand conspiracy to squash any good information from coming out about the NHS.
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To BJS: The NHS is a form of single-payer health care, aka Medicare for all. Google has countless articles extolling the supremacy of Single Payer.
Universal Medicare is cheaper overall, more efficient at exchanging information, and it covers everyone, employed or unemployed.
Naturally the rich and their toadies hate this. They want everything on a strictly for-profit basis, with all the profits going to them at your expense. The more sickness, the more profit. The more ways to short-change patients, the higher the stock value in the markets. Why simply treat a patient, when you can prescribe countless unnecessary tests and procedures to run up his bill?
Thus, the rich and their toadies endlessly claim that British health care is lousy. As proof, they offer buzzwords and concocted anecdotes. I’ve seen many reader comments in blogs in which Britons praise their system. Of course, those people are mere readers. They are not (lying right-wing a-hole) “experts.”
Imagine being unemployed, and developing a grave illness, or being badly injured, and having astronomical medical bills. Now imagine having no bills at all, since the government (with infinite money) pays the bills. Wouldn’t that be nice?
In the USA, Medicare is extremely popular with senior citizens. What if everyone had Medicare?
Britons had it, and now it is going away. The Australian and Canadian systems are also under attack. So is Japan’s. The ultra-right-wing government of Shinzō Abe is imposing austerity with a VENGEANCE. So is the Chinese government. In “communist” China, all the schools and hospitals are being privatized. Same in Iran. The phenomenon is global.
Why?
Because it widens the gap between the rich and the rest.
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BJS: You are quite misinformed about the NHS in the UK. There is tons of information out there that shows how good the UK NHS is. (So good that the corrupt pols there work very hard to destroy it, for decades) For 3 examples. Google “most efficient health care system”. Last time I did, the consensus of google results including many academic publications was that the UK delivered the best medical bang for the pound. The Economist – right wing-ier all the time – had an article with the same theme a couple years ago. A third – a Dr. Iwaki (?) of Harvard School of Public Health had some articles in Dollars & Sense (& Harvard Magazine) around 2006 covering his & European public health studies – Yves Smith of Naked Capitalism & I seem to be the only people who noticed his work – 🙂 : Said things like – on most health indicators, the bottom third of UK whites ( to control for race) had better health than the top third of US whites – much richer people who had the misfortune of living in a country with a Loony Tunes health prevention system, rather than a normal sane “Socialized Medicine” system that works.
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