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,
and the motive is the gap.
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Among the groups of people who cannot be taught, there are those who know the facts but do not want to acknowledge the facts

That is why it is impossible to teach Monetary Sovereignty to mainstream economists, the media and politicians. They know the facts but have been paid not to acknowledge the facts.

So, we have been left with trying to educate the public, the only people in America who seemingly don’t know the facts. Or do they?

How do we teach people that the government never can run short of money, the federal debt is meaningless and that the federal deficit is necessary for economic growth? Perhaps an new analogy?
Until recently, I’ve been a shareholder in Google. A couple weeks ago, Google had a stock split. Those who owned Google stock received one additional share for every share they owned. At the press of a computer key, Google doubled the number of Google shares in the world.

And that gave me a thought.

Have you ever bought one or more shares of stock? If so, what does one share look like? What do 100 shares look like? How much do they weigh? How do they feel? How do they smell and taste?

Actually, you never have seen a share of stock. No, it doesn’t look like this:
monetary sovereignty

This is just a certificate saying you own a share of stock. This piece of paper was pre-printed by the thousands. Until it was issued, that is, until a secretary typed in a name a number to show how many shares it represented, it had no value.

Very few shareholders possess even one of these certificates. I personally have been trading stocks for more than 60 years and so far as I recall, I have seen but a half dozen of these certificates.

If you’ve been reading about High Frequency Trading (HFT) lately, you know that computers make millions of trades each second, and no one ever sees a stock certificate.

The shares themselves are just numbers in accounting balance sheets. They have no physical existence. No one can see, hear, taste, feel or smell shares of stock.

Google, the issuer of the above pictured certificate, never can run short of shares. It is sovereign over Google shares. It can create as many shares as it wishes. If Google wished, it could offer a 10-for-one stock split or a million-for-one.

Having the unlimited ability to create Google shares, Google never needs to borrow shares, and if it issues more Google shares than it receives (i.e runs a deficit in Google shares), that’s just normal. That stock split I mentioned was Google running a deficit in its shares.

Not only do you know all the above, but virtually everyone knows all the above. So, I find it surprising that we find it difficult to think of money as an invisible concept rather than as a physical thing.

Google is sovereign over Google stock; Google can create infinite amounts at will, never needs to borrow any, and can run a “deficit” (issues more than it takes in) in Google stock forever. If Google has a debt denominated in Google stock (i.e. owes stock), there is no burden on Google. It could issue a trillion shares tomorrow, at the touch of a computer key.

So too does the federal government have the ability to create infinite amounts of dollars, just as Google can issue infinite numbers of shares. The federal government never needs to borrow dollars, and can run deficits in dollars forever.

Google is “God” of Google stock; the federal government is “God” of the dollar.

And just as a stock certificate is not a share of stock, neither is a dollar bill a dollar.

monetary sovereignty
THIS ISN’T A DOLLAR. IT’S A CERTIFICATE SHOWING THE BEARER OWNS A DOLLAR

In summary, America understands the basic concepts of Monetary Sovereignty — that the government has the unlimited ability to create dollars, so never needs to borrow dollars, never relies upon or uses taxes, and easily can pay any debts denominated in dollars.

All the concerns about federal deficits and debts are as silly as worrying about whether Google will run short of shares of its own stock.

Americans know this. They just don’t know they know it.

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. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (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
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