–Latest news stories and their possible outcomes

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,
and the motive is the gap.

You can discern America’s directions by what appears in our press. Here are two real news stories, together with their imagined possible outcomes.

Real Story: Donald Sterling:

“Monday,” the now famous bigot, Donald Sterling, tells his girlfriend in a private conversation, that he doesn’t want her to associate in public with black people. She secretly records his comments.

Americans are shocked to learn there are bigots in this country. This becomes the biggest news story for many days, as all news and comedy shows reference it.

The NBA fines Sterling $2.5 million and costs him many millions more by barring him from everything basketball, and attempting to strip him of his team.

Possible outcomes:

“Tuesday,” an NBA owner tells his girlfriend in a private conversation, that gay people are an abomination, and will go to hell. She secretly records his comments. He loses his team.

“Wednesday,” an NBA owner tells his girlfriend in a private conversation, that Jews killed our Lord and Savior, and the Holocaust not only never happened, but also was just deserts for their crime. She secretly records his comments. He loses his team.

“Thursday,” an NBA owner tells his girlfriend in a private conversation, that Mexican immigrants are “wetbacks” and food stamp “takers,” and should all be sent to jail or back to Mexico. She secretly records his comments. He loses his team.

“Friday,” an NBA owner tells his girlfriend in a private conversation, that native Americans are lazy savages, drunk on firewater, and who aren’t real Americans. She secretly records his comments. He loses his team.

“Saturday,” an NBA owner tells his girlfriend in a private conversation, that the Pope and his Catholic priests spend their time buggering young boys and stealing millions from the poor to pay for the Vatican. She secretly records his comments. He loses his team.

“Sunday,” NBA owners tell their girlfriends in private conversations, that the Irish are “drunks,” the Italians are “mafiosa,” the Muslims are “terrorists,” whites are “rednecks” and “honkeys,” women using contraceptives are “whores” and raped women were “asking for it.” All the girlfriends secretly record the comments. All the owners lose their teams.

As a result, every owner, every coach and every player has been punished financially and ejected from the NBA, for expressing, in private, any bigotry they have held.

And then there’s this real story:

Mass. Legislature and Gov. Fork Over $177 Million in State Taxes to the Pentagon
An Imperial Scam Coming to Your State Soon
by John V. Walsh

“Monday:” Governor Deval Patrick signed into law a bond bill that dispenses $177 million in Massachusetts State Taxes to the Pentagon for construction and “upgrades” of U.S. military bases in the state.

Meanwhile cities and towns are in dire need of more state aid for schools and other crucial spending, like ravaged roads, crumbling bridges and decaying senior centers. Taxes have been raised in many cities and towns because of the lack of such funds from state coffers, further burdening the taxpayers.

Similar legislation, for $40 million, has already been enacted in Connecticut for the Naval Submarine Base in Groton. And there is rumor that similar legislation has been proposed in other states.

Thus the $40 million in Connecticut and the $177 million in Massachusetts may well serve as pilots for more giveaways by other states. In fact it is likely that states which refuse to pony up may be threatened with loss of their military bases and the jobs that go with them, setting off an unseemly bidding war.

Possible outcomes:

Tuesday: The bidding war does continue, with each state contributing more and more to the federal government for construction and upgrades of federal facilities.

“Wednesday”: To pay for its continually increased bidding, Connecticut raises taxes, again.

“Thursday”: Connecticut financially is forced to reduce support for public schools, roads and bridges, police and fire departments.

“Friday”: Other states follow Connecticut’s lead.

“Saturday: The federal government begins to charge the states, not only for construction and upgrades, but also for federal salaries.

“Sunday”: Nationally, public education, roads, bridges, police and fire departments are devastated, local taxpayers impoverished, and all states lose the ability to pay their bills.

The President and Congress of the United States (which has the unlimited ability to pay its bills, even without taxes), boast about running a federal surplus. They admonish the states to be more frugal and monetarily prudent.

Which of the above outcomes is more realistic and which is more important to you?

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. 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)


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

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.


8 thoughts on “–Latest news stories and their possible outcomes

  1. [1] Which of the above outcomes is more important to me?

    The Donald Sterling hubbub. It lets me feel righteous. I live under a bridge, hungry, homeless, and penniless, but at least I get to scream, “No to racism!” In this way I imagine that I have “power” after all.

    [2] The other item (states must pay for federal facilities) is more evidence that economics is all about maintaining and widening the Gap.

    U.S. Congressmen could easily create limitless money for any federal item or project, and thereby increase the profits of their rich bribe-masters. But no, the money must now come from the states.

    Why? Because for the rich, the thrill is not money, but watching mass misery. If you have every material thing you could possibly want, then the only thrill left is to spread poverty. Another billion won’t mean much unless you extract it from the poor.

    Put another way, in order to widen the gap, I must have more money, or you must have less money. As a rich person, I prefer the latter, since I only feel wealthy if you are in agony. I only feel like a god if you live in squalor. It’s not how high I rise, but how low I send you. What counts is not my money, but your misery. I measure my wealth in your pain.

    And so, amid this depression and austerity mania, we now have a new way to extract even more money from the peasants. Some of it will go to rich owners of military-related industries. The rest of it will go to the federal government for destruction.

    And the gap continues to widen.


  2. To me, the girl friend recording and publicizing a private conversation is as reprehensible as the blathering idiot making stupid statements. But I suppose the resulting reaction was to be expected, both in the press and the NBA, given the state of social sensitivity in this country. Dealing with economic issues rationally, on the other hand, is a little more dicey. It’s sure to bring out the sharp shooters and limping fife players.

    I’m waiting for Rodger’s response to today’s NPR story on the Highway Trust Fund “crisis”.



    1. My response? I’ll put this as gently as possible: 100% bullshit.

      I particularly liked the line, ” . . . its time for everyone to put their ideas on the table to find common ground.”

      Er, ah, how about putting this idea on the table: Have the federal government pay.


    2. Let’s repeat it once again. The Highway Trust Fund cannot become “insolvent,” or be “low on funds,” since it has no funds to begin with. Never had. Never will. Just like the federal government at large.

      A federal “trust fund” is an abstract accounting entity. If the federal budget authorizes a billion dollars for a “trust fund” in a given fiscal year, then the “trust fund” is authorized to send a billion dollars worth of electronic instructions to the bank accounts of designated recipients, thereby creating a billion dollars in money. This is called “government spending,” but it’s really “government creation of money.”

      The US government does not have money, and does not spend money. It creates money.

      Regarding those electronic instructions to banks, they used to be sent directly from the US Treasury, but the US highway system became so big that a new bureaucracy was needed to dispense the funds and track them. Hence the 1956 Highway Revenue Act, which created the so-called “Highway Trust Fund.”

      Highways were needed because the USA had a middle class after WW II, which led to the rise of suburbia. Now that the rich have destroyed most of the middle class, suburbia is a wasteland, and the rich are moving back into the city centers, driving rents so high that only the rich can pay them. Everyone else is thrown onto the street. It’s called “gentrification.”

      Wikipedia makes this claim: “The US Highway Trust Fund receives money from a federal fuel tax of 18.3 cents per gallon on gasoline and 24.4 cents per gallon of diesel fuel and related excise taxes.”

      BULLSHIT! All federal tax revenues are effectively destroyed upon receipt, i.e. removed from the money supply. Where do you think the money comes from to pay tax revenues in the first place? From bank loans? No nation could survive if everyone took out bank loans to pay taxes. In the USA’s case, the money is created by the US government. If the US government actually needed taxes, then the government would soon collapse, unless the USA had a gigantic trade surplus (i.e. a positive balance of trade).

      As for Obama’s false claim that the Highway Trust Fund is about to “run out of money,” this is an especially odious lie, since Obama wants states to start collecting tolls on federal highways. That, folks, is gratuitous austerity. It means that any new money created for the “trust fund” will go to the rich, while the tolls on the highways will further impoverish the 99%. Tolls that the US government does not need or use.

      Obama’s real intention is probably to force the privatization of all federal highways. Then the USA will become like Mexico, where you have a choice between horrendously bad roads or horrendously high tolls. (In Mexico, all the modern highways are privately owned, and the owners increase their tolls every couple of months.)

      As Rodger asks above, why not forgo the taxes and tolls, and have the federal government simply create the money?????

      Oh that’s right…”inflation.” We are in a depression because there is not enough money in circulation. Hence there is no demand. Hence we must remove EVEN MORE money via new taxes. Otherwise we will have “inflation.” Right?

      P.S. I read some more articles on this “trust fund” thing. All are 100% bullshit.


  3. UCLA, a state-owned school, turns down a $3M donation from Sterling. Finally, something comes up that would shrink the gap ever so slightly, and UCLA refuses!


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