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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“The best government governs least” has been something of a popular mantra for many years. President Reagan implied it with his famous ” . . . government is not the solution to our problem; government is the problem.”

The entire right wing of the political spectrum, leans heavily in the “small government” direction, as expressed by the The Tea Party’s “15 Non-negotiable Core Beliefs.” Here are the relevant few:

6. Government must be downsized.
7. The national budget must be balanced.
8. Deficit spending must end.
9. Bailout and stimulus plans are illegal.

There is a web site called The Daily Bell, which supports what they claim is the Austrian School of economics, about which they say:

One of the tenets of the (Austrian economics) discipline involves human action, the idea that PEOPLE act. Governments can act via force, but such force is inevitably a price fix, distorting the economy and causing behavioral changes in people that are unanticipated and even counterproductive. The best government governs least.

When I said to them that the idea of “governs least” inevitably leads to anarchism, their response was, that they really are talking about “philosophical anarchism:”

“Philosophical anarchism is an anarchist school of thought which holds that the state lacks moral legitimacy while not supporting violence to eliminate it. Though philosophical anarchism does not necessarily imply any action or desire for the elimination of the State, philosophical anarchists do not believe that they have an obligation or duty to obey the State, or conversely, that the State has a right to command. Philosophical anarchism is a component especially of individualist anarchism.”

They believe that governments are immoral, because governments make individuals do things individuals don’t want to do. For philosophical anarchists, morality is not in obeying the law; morality is in breaking the law to do as you wish.

From where does all this anti-government sentiment come? None of us likes to be forced to do what we don’t want to do. The IRS, the NSA, the CIA, the FBI, the police — they all impinge on our freedoms and privacies. Indeed, every law ever passed, impinges on someone’s freedom.

So from that standpoint, yes the best impingement impinges least.

But that sentiment differs markedly from items 6, 7, 8 and 9, above, because a government can be small in two ways:

1. A government can be “small” in the restrictions it places on its citizens
and/or
2. A government can be “small” in the assistance it gives to its citizens.

One can empathize with the notion that government restrictions should be as limited as possible, within the boundaries of human safety and well-being. But government assistance should be limited only by inflation.

While all laws burden someone, some laws are excessively burdensome. Our byzantine federal tax laws are a perfect double whammy. First, the laws are so complex and illogical, as to be punitive, and second, the federal government doesn’t even need or use our tax dollars. So anyone opting for “small government” should focus on eliminating the most burdensome laws (I’d start with eliminating FICA, Step #1 in the Nine Steps to Prosperity).

But what of Social Security? It is a government program. Should it be “downsized” as the Tea Party wishes? Is Social Security a burden on us (especially since taxes don’t pay for it)? Should Medicare be “downsized”?

None of the Nine Steps burdens on our freedom. In fact, they all allow us more freedoms to do as we wish and to succeed. They are “big government,” but only in the sense of big assistance, not big restrictions on us.

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)

In short, the Reaganesque, Tea Party, Austrian, austerian, “small government” movement is based on the false visualization of the federal government being SOLELY the big bully, who unnecessarily and unmercifully clamps down on us and forces us to do what we don’t want to do.

But big government also can be the big generous uncle who employs us, and pays for our health care, schooling, food, housing, retirement, defense and human advancements, while asking nothing in return.

The next time you read or hear someone extolling the virtues of small government, remind him that government has two sides — the coercive bully and the benevolent uncle.

While some deficit reduction may impact the big bully government, the vast majority of deficit reduction impacts the benevolent uncle, and widens the gap between the rich and the rest.

For analogies, (perhaps ad nauseum), let us not throw out the baby with the bathwater.

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

Vertical gray bars mark recessions.

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