–With low inflation, verging on deflation, what’s the excuse now?

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.


Readers of this blog know that our politicians, media and mainstream economists have been bribed by the ultra-rich to widen the gap between the rich and the rest.

The politicians are bribed by the ultra-rich via campaign contributions and promises of lucrative employment for themselves and their families (the Bill Clinton syndrome)

The media are owned by the ultra-rich. (The FOX syndrome)

The mainstream economists are employed by universities that have been bribed, and/or they are employed by the so-called “think tanks” (the CATO syndrome) which are funded by the ultra-rich.

Very briefly, they all are bribed to brainwash millions of Americans with The Big Lie — the myth that federal spending is too high, unsustainable and must be reduced.

Because the vast majority of federal spending benefits the vast majority of Americans, i.e. the millions of non-rich, reductions in federal spending widen the gap.

When House Speaker said, “Let’s be honest. We’re broke,” he was expressing The Big Lie.

When one of the brainwashed millions tells me that federal spending is unsustainable, here is the inevitable scenario:

Brainwashed: “Social Security benefits (or Medicare benefits, or any other federal spending) must be decreased.”

RMM: “Do you think the federal government can run short of dollars?”

Brainwashed: “No, they always can print dollars, but that will cause hyper-inflation. Remember Weimar Republic (or Zimbabwe, or Argentina)”

Despite 200 years of wars, recessions, depressions, stagflations, inflations and bubbles, the U.S. never has had a hyper-inflation, and today we are nowhere near hyper- inflation. Instead, we are near deflation and recession.

Huff Post
Harlan Green, Editor and Publisher
Deflation is the Danger
Posted: 09/14/2013 12:14 pm

Deflation is the danger to economic growth at present, not inflation. For inflation is a sign of economic growth, yet prices have barely risen if one looks at the major inflation indexes, like the CPI or Personal Consumption price index.

The so-called PCE price index is the main inflation indicator liked by the Federal Reserve, and it is running far below the Fed’s preferred target of 2 to 2.5 percent.

. . . the emphasis on holding down inflation . . . resulted in 2 decades of low inflation that was called the “Great Moderation”–has meant slower economic growth and less productive investment, as well as two further recessions in the last decade, including the Great Recession.

We have not had an inflationary environment since the 1970s, and that was ‘cured’ by then Fed Chairman Paul Volcker with his double-digit interest rates.

So now what can brainwashed parrots for the ultra-rich to say? They acknowledge that the federal government has the unlimited ability to (erroneously called) “print” dollars. The government never can run short of dollars to pay its bills.

Our current problems are slow growth, unemployment and a widening gap between the rich and the rest.

The non-rich need increased, not decreased, federal deficit spending for Social Security, Medicare, Medicaid, poverty aids, education, the infrastructure, pure food, clean water and the myriad other benefits of federal deficit spending.

And our primary danger is deflation, not inflation.

So with low inflation, verging on deflation, what’s the excuse now?

Rodger Malcolm Mitchell
Monetary Sovereignty

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

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.


6 thoughts on “–With low inflation, verging on deflation, what’s the excuse now?

  1. What’s the excuse for continued austerity? I can think of 25 reasons right away…

    Government spending is still out of control.

    The national debt is still exploding.

    The tax base is still not broad enough.

    There are still too many people who treat the safety net as a hammock.

    There are still too many social necessities provided by government.

    There are still too many Americans who rely on each other, rather than themselves.

    There are still too many unionized workers.

    There are still too many liberals in the media.

    There are still too many communists in academia.

    There are still too many socialists in Washington and on Wall Street.

    There are still too many public schools and prisons.

    There are still too many snobs who think that everyone deserves a decent education.

    There are still too many elitists who think that health care is a right, not a privilege.

    There are still too many consumer safety rules and environmental regulations.

    There are still too many abortions and Mexicans.

    There are still too many people who believe in science and evolution.

    There are still too many “takers” as opposed to “makers.”

    There are still too many entitlements.

    There are still too many people who don’t want to work.

    The minimum wage is still too high.

    Social programs are still wasteful.

    If there is a threat of deflation, it is because we have applied austerity too timidly.

    Although this is the Golden Age of Deficit Reduction, now is not the time to reverse course and throw away all the progress we have made.

    We need more saving, not consumer spending.

    We need more goods and services, not more money.

    …Shall I continue?


      1. The thing is, Rodger, if we debunk one of the items above, then people defend the Big Lie by resorting to one or more of the other 25 items above. For example, if you note that the federal deficit is falling dramatically, then people respond by saying, “But the national debt is still out of control.” If you debunk the “national debt,” then people say, “But deficit spending will cause inflation.” And so on.

        Most of the above items are self-contradictory, and have nothing to do with the federal budget (e.g. there are too many abortions and Mexicans). Nonetheless, people mindlessly use them in their drum-beating for more austerity.

        Thus, the Big Lie has many facets, most of which are imaginary (e.g. the “national debt”) and most of which have no logical connection with one another. Yet, all facets express the same sentiment: “Screw you, I’ve got mine.”

        And so, as I have been trying to say in different ways, austerity and the Big Lie are only partly about economics and government budgets.

        The real essence of austerity and the Big Lie comes from a widespred cultural ethos of, “Screw you, I’ve got mine.” The more this ethos spreads, with its hate, selfishness, and self-righteousness, the more we have austerity and the Big Lie.

        When a person has an attitude of, “Screw you, I’ve got mine,” then he is closed to reason. He babbles, and continually jumps around between items like those listed above. He becomes a moron who fancies himself a genius.

        Of course, the ultimate lie, and the source of all other lies (including the Big Lie) is the Supreme Lie that I and my neighbor are not brothers. The Big Lie is based on the Supreme Lie.


  2. The Big Lie about how our monetary system really functions is like the plot from a bad horror movie where normal people discover that the world is really controlled and manipulated by hidden and disguised evil space aliens like the movie “They Live” (http://en.wikipedia.org/wiki/They_Live) or the “Invasion of the Body Snatchers.” I was stunned when I learned about this stuff, MMT and Monetary Sovereignty. We truly live in a wicked world (created by malevolent humans though).


    1. @BJS, I too was/am stunned by my increasing understanding of our existing monetary system, and look forward to significant change. It won’t be easy.

      But, philosophically, rather than a “wicked world created by malevolent humans”, my perception is that until c. 1970, humans lived in a world that couldn’t guarantee that their physical and security needs would be met. Therefore, the natural response was to “get all I can”. How many people do you know (and there are some), who would decline an increase in revenue saying, “No thanks. I have enough.”

      The challenge is to promote the understanding that humans, through ingenuity and technology, now have sufficient resources to meet the physical and security needs for all. And a key to that understanding is the concept of monetary sovereignty…there is enough money to meet the survival needs for everyone in the US. Doing so will eliminate debt and wage slavery, and provide the economic freedom for all to develop his or her optimum productivity level. That will take time, just as all human development has taken time.


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