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●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.
A soon as Congress and the President finish patting themselves on the back for their wonderful display of partisanship (enabled by the Republicans’s realization that the voting public may be catching on to Tea Party tactics), they will begin to criticize the $1.1 trillion federal spending bill they just passed.
They all will moan about the “pork,” the “wasteful spending” and the “earmarks” contained in the bill. And the Republicans especially will stammer that the reason the bill doesn’t include long term unemployment insurance is because other cuts were needed or (heaven forbid!) the deficit and debt would rise.
It’s all part of The Big Lie.
The reason long term unemployment wasn’t extended in this jobless economy is simple: It would benefit the non-rich and possibly narrow slightly the gap between the rich and the rest. Far better to keep these people as desperate slaves, willing to work for minimum wage and without benefits.
Assuming “wasteful” means “non-productive” or “valueless”, a Monetarily Sovereign government cannot spend wastefully. It’s impossible.
If the federal government were to pay 1000 people $1,000 each to dig a hole and fill it in, most people, ignorant of economics, would claim that’s wasteful. It isn’t.
Sure, there are more productive uses for that million dollars, than digging a hole and filling it in, but 1000 people now have an additional million dollars to spend. Business and other creditors will receive those million dollars, and they will hire and pay employees, and on and on.
Being Monetarily Sovereign, the government can create dollars endlessly, without collecting taxes and without borrowing endlessly.
Ben Bernanke could do his famous “helicopter” drop of a million dollars in the middle of Times Square, and even that would not be wasted spending. The people scrambling to pick up the dollar bills would spend or save, and either way, benefit the economy.
About the only way federal spending could be considered wasteful is if the dollar bills were dropped into a fire, and even then, the only thing that would be wasted would be the paper. No dollars would be lost. Dollar bills are not dollars.
Here are some of the examples of The Big Lie you have been told:
According to the Cato Institute, Chris Edwards is the director of tax policy studies at Cato and editor of DownsizingGovernment.org. He is a top expert on federal and state tax and budget issues.
He said, “Federal ‘waste’” is a broader problem than simple screw-ups, such as an unused $300 million Pentagon blimp. The federal government has been wasting money since the beginning of the Republic, and I (have) proposed reforms, including privatization and chopping aid to the states.
Well of course you have, Chris. Cato is the bastard child of the Koch brothers, those billionaire, “patriotic” Americans who spend billions to widen the gap between the very rich and the rest. Chris Edwards’s soul is owned by his rich employers.
“Privatization” means “Let our for-profit companies do it, so we can screw the public by raising prices and cutting services.”
A perfect example was Chicago’s Mayor Daley’s privatization of Chicago’s parking meters. Parking prices went way up, and the city’s taxpayers no longer will receive parking revenue — for another 99 years!
That’s “privatization,” the crooked politician’s way.
And as for “chopping aid to the states,” this too widens the gap. Like federal spending, the vast majority of state spending benefits the vast majority of each state’s residents — the non-rich. But states are monetarily NON-sovereign. They are unable to create their sovereign currency. They have no sovereign currency.
So by gutting state aid, the rich gut aid to the non-rich, thereby widening that gap between the rich and the rest.
It’s all part of the plan.
Sen. Tom Coburn of Oklahoma said this week that the lack of Republican power in the Senate will likely mean there will be no legislative fix to his “wastebook”:
*A $297 million blimp that would provide continuous surveillance of the Afghan battlefield. After it canceled the program, the Army sold the airship back to the contractor that was building it for $301,000.
*$7 billion worth of vehicles being transferred to other countries or destroyed in Afghanistan instead of shipped back to the U.S. DOD will save about $500 million by sending them to allied countries or selling them as scrap.
*The National Guard’s $29 million promotional contract with NASCAR driver Dale Earnhardt Jr. National Guard spokeswoman Michelle Hall responded that the contract generated $75 million worth of media exposure and allowed the Guard to tap into NASCAR’s fan base of 77 million people.
*The $34 million, 64,000-square foot Camp Leatherneck complex in Afghanistan, which the Defense Department has never used.
*Nearly $300,000 worth of benefits paid by the Army to Maj. Nadal Hasan, the admitted murderer of 13 people at Fort Hood, Texas, before his conviction in August. Army spokesman Troy Rolan noted the Fifth Amendment’s right to innocence — meaning Hasan was entitled to continue receiving his base pay.
*More than $400,000 spent on C-27J tactical transport planes that were never used.
Spokespeople for the military said the blimp, equipment and airplanes were cancelled because of the Afghan drawdown. The Dale Earnhardt money was “worth it.”
If they had been honest (and brave) they would have explained that this spending benefited the American economy. Instead, they just went along with The Big Lie.
The Office of Management and Budget has recently alleged that the federal government made a total of $101.3 billion in “improper payments.” These include too much given to Social Security insurance recipients. The government has a very slim chance of ever getting back those wrongfully given SS and other funds.
What a shame! $101.3 billion that cost nobody anything — not you, not me, not our future children or grandchildren — went to the American people to spend or save as they choose. How much “better” it would be to raise taxes or cut federal spending, so the deficit could go down, and the economy could suffer. That is The Big Lie.
The conclusion of the Office of Management and Budget is if more attention were given to the over-spending allotted to SS insurance recipients and Medicare issues by the government, the U.S. nation could literally save dozens of billions of dollars in the coming years.
Note the clever use of the words “the U.S. nation.” They are in there to make you believe that somehow this “waste” is costing you money, when in fact, reducing the “waste” is what costs you money.
Federal finances are different from your “kitchen table” finances. The federal government is Monetarily Sovereign. You are monetarily non-sovereign. The two are diametrically opposite. Like comparing tunas and tubas.
The bribed politicians, bribed media and bribed mainstream economists don’t want you to know that.
Rodger Malcolm Mitchell
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
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.