–The great European mysteries, solved

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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So they labored mightily, to build a complex machine, which they named “the EU,” and now they say it’s not working right, and they want to fix it, but they can’t agree on why they built it or what the machine is supposed to do.

monetary sovereignty
———-THE EURO———-

Reform EU or Britain quits – George Osborne lays down ultimatum
Membership withdrawal threat after Tory MPs sign letter calling for dismantling of Europe’s core principles via veto powers
Nicholas Watt, chief political correspondent, The Guardian, Tuesday 14 January 2014

Mats Persson, director of Open Europe, said: “There is a huge debate in Europe about what the EU’s defining mission should be in future – the single market or the euro?

Got it? Europe created the EU and the euro, but now has no idea why the EU exists or why the euro exists, and what they are supposed to accomplish.

There are those who believe the goal is to facilitate intra-Europe trade.
There are those who believe the goal is to create a united Europe politically.
Or financially.
Or militarily.
Or economically.
But they’re not quite sure why.
Or how.

There are those who believe the goal is to maintain the euro. But they too are not quite sure why or how.

And then there are the wealthiest Europeans who believe the goal is just to make a carload, boatload and trainload of money for themselves, at the expense of the lowly citizens, for as long as possible, until the pitchforks and torches show up.

George Osborne will today deliver a stark warning to Britain’s European partners that the UK will leave the EU unless it embarks on whole-scale economic and political reform.

[He wants to] dismantle the rules of the European single market which were drawn up to prevent France imposing protectionist measures by denying member states a national veto.

It goes like this: You are a Monetarily Sovereign nation, with two major assets: The unlimited power to create your own sovereign currency, and the unlimited power to determine your economic fate.

Obviously, you don’t want such a burden. You’d rather be a slave nation. So what do you do? You voluntarily surrender those most valuable assets, and you put your nations fate into the hands of some unelected, foreign bureaucrats called the EU.

Surprise! That hasn’t worked out so well:

The EU suffers from a chronic lack of competitiveness and the European economy has stalled over the last six years while the Indian economy has grown by a third and the Chinese economy by 50%.

[Osborne said,] “As Angela Merkel has pointed out, Europe accounts for just over 7% of the world’s population, 25% of its economy, and 50% of global social welfare spending. We can’t go on like this.”

O.K., so the euro has been an unmitigated disaster, as we who understand Monetary Sovereignty began predicting many years ago.

But wait!

The UK did not adopt the euro. The UK did not surrender its Monetary Sovereignty, the single most valuable asset any nation can have. The UK did not put its future into the hands of unelected, foreign bureaucrats. So everything is good. Right?

Well, maybe not.

Osborne is expected to say that (Prime Minister David) Cameron will press for a realignment of the rules of the single market to ensure the 18 members of the eurozone cannot outvote the 10 EU members, such as Britain, which have not joined the single currency.

So that is the big “reform” — a “realignment of the rules.” Still the same old euro. Still the same old bureaucrats. Still the same old economic disaster.

And no one really explains, on a cost/benefit basis, why the EU continues to exist.

And worse yet, the UK, despite retaining its Monetary Sovereignty — despite having the unlimited ability to create it sovereign currency, the pound — despite the unavoidable lessons of deficit cutting by euro nations — the UK austerity train just keeps rolling down the hill.

Why? Why the EU and why economy-crushing austerity, even in a Monetarily Sovereign nation?

Well, those are the great European mysteries — or they would be mysteries but for one small detail: Everything that has been done and will be done, is at the direction of the continent’s wealthiest people.

The same people who built the complex machine now volunteer to fix it, but they simply will rearrange a few parts, and the machine will continue to “work” as badly as before.

All this “build it, fix it, build it, fix it” is just a giant smoke screen — a misdirection to fool the masses and to hide the true purpose of the euro, the EU and their inevitable austerity-induced recessions and unemployment: To widen the gap between the rich and the rest.

The misdirection has been working and continues to work. Even America uses the same kind of misdirection for the same purposes.

The plumber keeps sabotaging the pipes, so you’ll have to keep calling him back, again and again, and paying him for every visit. He gets rich. You get poor. And the plumbing still doesn’t work.

The mysteries are solved. The purpose of the EU and the euro is to widen the gap between the rich and the rest. Period.

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)

—–

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. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY

4 thoughts on “–The great European mysteries, solved

  1. THEIR BIG LIE, OR OURS?

    Rodger writes, “The purpose of the EU and the euro is to widen the gap between the rich and the rest.”

    Agreed. For Monetarily Sovereign governments like the UK’s, the Big Lie is that, “The government is broke. Therefore, without austerity, the nation is doomed.”

    For non-Monetarily Sovereign governments, the Big Lie is, “We must have the euro currency, or we are all doomed.”

    Both lies are designed to widen the gap between the rich and the rest.

    British bankers and financiers know that their own Big Lie works just fine, and that if they adopt the euro currency, and start using the euro-zone’s Big Lie, then they must submit to the Troika. This means, among other things, that the City of London (the UK’s Wall Street) would have to pay a financial transactions tax to the Troika.

    (For MS governments, a financial transactions tax does nothing but destroy money. For non-MS governments, it is a tool for wealth transfer.)

    This latter part (submission to the Troika) seems to annoy Osborne. He says that by 2016 the euro group will have enough votes under the Lisbon treaty to force the UK to adopt the euro, and submit to the Troika. For Osborne this is unacceptable.

    “We don’t want join the euro. If we cannot protect the collective interests of non-euro-zone member states, then they will have to choose between joining the euro, which the UK will not do, or leaving the EU. Proper legal protection for the rights of non-euro members is absolutely necessary to preserve the single market and make it possible for Britain to remain in the EU.”

    None of this makes any difference to average Britons, who will continue to suffer from increasing austerity, with or without the euro. Thus, even if the euro currency were to end, the European governments would simply switch their Big Lies. It is a global phenomenon.

    THE HEART OF THE MATTER

    Given the above, it does not matter whether a nation is communist, capitalist, anarchist, national socialist, or whatever. Nor does it matter whether a nation has Monetary Sovereignty, since there is always a Big Lie for MS governments, and one for non-MS governments. They are slightly different, but both widen the wealth gap.

    If we seek to preserve the welfare of the public, then what matters is the general attitude of a nation’s people and leaders. If they tend to be greedy, hateful, selfish, and self-righteous, then they will have ever-growing inequality, regardless of their system of government, and regardless of Monetary Sovereignty.

    Hate and inequality are always found together, just like greed and fear. They are yin and yang, creating and sustaining each other. Inequality is automatic proof that a nation’s people and leaders tend to be greedy, selfish, and self-righteous. Indeed, the Gini coefficient is a hate index. The higher the Gini coefficient, the more violent the society and its government. This is the general trend, although there may be a few statistical outliers. There are also exceptions among individual people (e.g. those who read and understand Rodger’s blog. They genuinely want happiness and equality for everyone.)

    We can blame the rich and their puppet politicians. Or we can blame capitalism. But the real problem is our culture. Our entertainment movies glorify politicians that live only to increase the suffering of average people. For example, the 2011 movie “The Iron Lady” (about Margaret Thatcher) won many awards, including two Academy Awards.

    Meanwhile, evangelical Christians seek to protect the rights of infants from conception to birth, after which they regard children as “takers” fit only for slavery. French “progressives” extol tolerance and multi-culturalism, yet they despise Muslims and immigrants from former French colonies (now French vassal states). New Jersey governor Chris Christie, a insufferable sociopath, has as many defenders as detractors.

    Confusion? Brainwashing? No, folks. Hate.

    WHAT THEN MUST WE DO?

    The rich and their puppets know how to tap into, encourage, and exploit hatred. Therefore, if we wish to offset the Big Lie and inequality, then perhaps we should tap into, encourage, and exploit whatever traces of charity are left in the public.

    For example, the Internet has a viral image of a dog in a Massachusetts hospital saying “goodbye” to his owner, a 21-year-old male who is dying of cancer. (Link at bottom.) The image, posted on 20 Dec 2013, has appeared in countless blogs and news web sites around the world, and has caused strangers to donate $30,000 to help the terminally ill man’s family with upcoming funeral expenses, plus ballooning medical bills. The patient has already had his leg amputated, but he remains terminal.

    His mother wrote on her web page, “Ambulance coming to pick up Mike to bring him home for Christmas. It’s all he wants. Again thank you all for your donations and kind words and prayers. There are so many wonderful people in the world.”

    I chose this example at random, and I could share many more. There’s one from China that’s far sadder and more touching. The point is that these items bring up emotions that can be tapped into. Maybe we need a blog whose posts feature heartwarming stories, woven together with explanations of how we can live better by letting go of the Big Lie and the hatred behind it. An inspirational blog, so to speak.

    In 1993, motivational speakers Jack Canfield and Mark Victor Hansen published a book titled “Chicken Soup for the Soul.” It sold 100 million copies, and spawned over 250 sequels, plus a company that now sells pet food, comfort food, and other consumer items. Warner Brothers is working on a movie version called “Chicken Soup for the Soul.” There will also be a daytime talk show, somewhat like Oprah.

    That’s the kind of show that people like Rodger or like Stephanie Kelton should appear on. “Today we have an amazing guest with a wonderful message, along with the proof to back it up. There is abundant money for all!”

    Simply explaining the Big Lie is not enough. We must tap into people’s charitable feelings and emotions. Right wingers tap into fear when they present an infant and falsely claim that, “On the day this innocent child was born, he was saddled with a debt of $150,000. That’s his share of the national debt.” The emotional hot button is not the (fictitious) national debt, but the words “innocent child.”

    Likewise, in explaining the facts of Monetary Sovereignty, the emphasis should not be on economics, but on emotions like those in the mother’s words above: “There are so many wonderful people in the world.”

    It is counterproductive to mention the Big Lie on Fox News or ABC news, etc. since it does nothing more than generate hate mail.

    In sum, to offset the Big Lie and inequality, we must offset hate. To do that, we must tap into positive emotions.

    Let me think some more about this. At this point I’m just brainstorming.

    Below is a link with a picture of the dog and the dying cancer patient…

    http://www.dailymail.co.uk/news/article-2528218/Touching-photo-dying-man-saying-goodbye-childhood-dog.html

    Like

  2. Reblogged this on justaluckyfool and commented:
    Roger, “You are a Monetarily Sovereign nation, with two major assets: The unlimited power to create your own sovereign currency, and the unlimited power to determine your economic fate.

    Obviously, you don’t want such a burden. You’d rather be a slave nation. So what do you do? You voluntarily surrender those most valuable assets, and you put your nations fate into the hands of some unelected, foreign bureaucrats called the EU.
    Surprise! That hasn’t worked out so well:…”

    May I paraphrase:
    America ,you are a Monetary Sovereign nation…..
    (read above)…SO what do you do ? You give to the Private For Profit Banks the sovereign rights to CREATE SOVEREIGN CURRENCY and the POWER TO TAX that currency giving the PFPBanks unlimited power to determine your fate!
    How is that working for you.
    The great USA mystery solved. We have lied as printed on our currency:
    “In God We Trust” The truth is : “We Now Trust The Private For Profit Banks”.

    Like

    1. Do private for-profit banks create and issue the sovereign currency (e.g. US dollar)?

      Bankers do create money, but so does the federal government. Let’s clarify this issue once again.

      As Rodger has often explained, that there are three ways that money enters into any economy.

      1. Government spending.
      2. Loans (from banks, and from the sale of securities, etc.)
      3. A foreign trade surplus.

      #1 does not apply to euro-zone countries, since their governments can no longer create money out of thin air. They surrendered their Monetary Sovereignty to the Troika, and to private investors (including banks). They must get all their money by #2 and #3. If they do not have a trade surplus (#3) then they must get ALL their money via #2, which means they will keep falling further into debt…forever. Thus, in the euro-zone, rich people and private for-profit bankers directly rule all. Germany is an exception, since Germany has #3, a whopping trade surplus.

      #3 does not apply to the USA, since the USA has the world’s biggest trade deficit. This is not a problem, since the USA has #1 and #2.

      Regarding #1, yesterday (15 Jan 2014) the US House agreed to create $1.1 billion out of thin air, and spend it into the economy between now and 30 Sep 2014 (the end of the current fiscal year). The Senate must vote on this budget, and then Obama must sign it.

      That $1.1 will be dispersed through banks, but not as loans. Instead, the US Treasury will instruct banks to credit the accounts of private citizens and companies, who will spend that money without having to pay any of it back to anyone (although they must pay federal taxes.)

      #2 involves the private for-profit bankers, who have far too much power. That’s why we have such severe inequality between the rich and the rest. Most of the money that circulates in the US economy comes from #2. It occurs as various forms of credit (loans) issued by bankers, by shadow bankers, by investment bankers, and so on. Credit occurs in myriad forms, but all of it is loans.

      Austerity is a reduction in government spending and / or an increase in taxation. Its purpose is to suck money out of the real economy (i.e. suck money from the lower classes) in order to widen the gap between the rich and the rest, and to increase the supremacy of the financial economy (including bankers) over the real economy.

      So yes, the bankers have extreme power, but not total power. And yes, bankers create money as loans, but politicians also create money that is not loans. Federal spending occurs through banks, but it is done at the behest of the federal government. Bankers have no direct power over that money. Bankers have power from austerity. If the government refuses to create money out of thin air, then the public must beg for loans from bankers. Hence we have over $1 trillion in student loan debt, for example.

      The solution? We must end austerity. We need more federal spending. MUCH more.

      Like

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