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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It seems almost impossible, but I actually do agree with Timothy Geithner about something.
No, I don’t agree with the Geithner, who decided that saving the finances of such luminaries as Jamie Dimon (JPMorgan Chase & Co.) and Lloyd Blankfein (Goldman Sachs) was far more important than saving the economy and the life savings of millions of Americans.
And no, I don’t agree with the Geithner who now has received the usual political bribery. i.e. lucrative employment after leaving office:
As memoir is released, Geithner defends his new private-equity job
As Timothy F. Geithner began making the publicity rounds on Monday to push his newly released memoir, the former Treasury secretary defended his decision to join a top private-equity firm after leaving office last year.
Critics have charged that Geithner was cashing in on his government experience and was another example of the too-cozy relationship between Washington and Wall Street.
And I don’t agree with Geithner’s rewarding fraudmeisters like Richard Fuld (Lehman Brothers), Jimmy Cayne (Bear Stearns), Stanley O’Neal (Merrill Lynch), Chuck Prince (Citigroup) and Ken Lewis (Bank of America), who prospered beyond most people’s imagining.
But, I do agree with this:
Geithner’s new book rips Kirk on U.S. debt and China
May 12, 2014|By Katherine Skiba | Tribune reporterGeithner takes a shot at Sen. Mark Kirk of Illinois for “delusional” fears when Kirk purportedly warned officials in China not to buy U.S. Treasury securities or other U.S. debt.
Kirk, a Republican, warned the Chinese that U.S. spending “was driving us toward default” and the Federal Reserve Bank was “creating hyperinflation.”
Geithner writes. “Not only were those fears delusional, but he was undermining American interests on foreign soil.”
Kirk’s office issued a brief statement today that neither confirmed nor denied Geithner’s characterization of the Illinois lawmaker’s comments to the Chinese. It said:
“Since traveling to China in 2009, our nation’s debt has grown from $11.9 trillion to $17.5 trillion. What is fact, and not delusional, is that our spending habit cripples our economic recovery and is undeniably unsustainable.”
So, I do agree with Geithner that Kirk was wrong — diametrically wrong — though I don’t think Kirk is delusional. Kirk knew exactly what he was doing.
As a solid member of the “I-trade-votes-for-dollars” club, Kirk was doing the bidding of the upper .1% income/power group, by spreading the fiction that deficit spending “cripples our economic recover” (Actually, deficits stimulate recovery) and is “unsustainable” (Actually, deficits are infinitely sustainable).
The rich do not want the 99.9% to realize that federal spending on benefits to the not-rich narrow the income/power gaps, and are exactly what the economy needs. So Kirk, receiving money and promises from the .1%, does as he is paid to do.
That’s loyalty from an obedient soldier.
Unfortunately, Geithner reverts to form, when he writes:
“I sometimes wondered where this newfound right-wing enthusiasm for fiscal discipline had been during the Bush years, when unfunded wars, tax cuts, and a new Medicare prescription drug benefit had helped turn the Clinton surpluses into deficits.”
Yes, he implies the BIG LIE, the false idea that federal financing is like personal financing, where spending should be balanced by income.
In fact, Clinton’s wonderful surpluses led to a recession immediately after he left office — a recession that was cured with — you guessed it — increased deficit spending.
By why bother with details and facts, when the public will accept the BIG LIE??
Anyway, the supposedly “moderate” Republican Mark Kirk, has proved himself to be no different from the rest of the Republicans, the Democrats and the President himself — all bought and paid for by the 1%.
Now, let’s talk about the $100 million needed for the Obama library. Penny Pritzker, are you listening?
Rodger Malcolm Mitchell
Monetary Sovereignty
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Ten 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. Tax the very rich (.1%) more, with much higher, progressive tax rates on all forms of income. (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
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
#Monetary Sovereignty - Mitchell 
Rodger,
Would you please write a post covering your ten steps to reduce the gap? I see this as being distinct from your “Ten Steps to Prosperity.”
Thanks,
Tyler
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Tyler, perhaps it’s old age, but I don’t recall “ten steps to reduce the gap.,”
If I did, it probably would be the same as “10 Steps to Prosperity.”
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I worded that unclearly. You’ve never written a “Ten Steps to Reduce the Gap.” I’m now realizing that the 10 Steps to Prosperity definitely suffices. Thanks.
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I remember when mosler relayed a story about talking to rubin, and rubin sharing his belief, that surpluses were a positive to the economy. this was in the late 90s. I wonder if geithner shares rubin’s ignorance or is just a bought off hack, or both….. so many questions
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http://neweconomicperspectives.org/2014/05/geithners-single-revealing-sentence.html
In Bill Black’s conclusion, he says “Bailing out banks is not hard when a nation has a sovereign currency and the banks’ debts are denominated in that currency. ”
It’s nice to see respected people like Bill Black using the main concept of this blog.
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Rodger,
I appreciate everything you have expressed on your blog, i understand your points, using logic and reason one cant help but agree. Since the vast majority are clueless , one begins to realize the world is insane., Sadly full of brainwashed followers whom unfortunately havent the time or inclination to investigate the validity of their incorrect opinions , the conundrums and inconsistencies that jump out when reconciling their statements with reality are overwhelmingly numerous., Using techniques, they otherwise would agree are necessary for success and comprehension, like critical thinking , or everyone’s favorite expression – thinking outside the box, easily contradict the popular notions of our government constrained by tax revenue and bond sales.. . Seems to me, understanding the operational mechanics of government budgeting , macro economics, and money as transferable credit instead of a commodity, is the best chance mankind has of averting environmental and ecological disaster,. Curtailing our war on nature ,and ceasing the senseless destruction of so many other species sharing our planet has to be more important than increased GDP from mindlessly creating consumer products without limits , pursuing purposely scarce dollars, we all unfortunately need in this fraudulently perceived political economy. Getting people to understand ,at least from a larger societal standpoint,as Keynes understood, that anything we can do we can afford to do, has got to be in the forefront of any group hoping to offset or end the callous destruction of our planet from greed and ignorance.
My question; how do these simple minded nit wits reconcile sovereign wealth funds investing in American banks , and other businesses, which are often totalitarian regimes, but not our own freely elected government, and than in the same breath express regret that our country is without a sovereign wealth fund because of our current account deficit, balance of trade deficit, and lack of “surplus” funds. I am sure Saudi Arabia has flawless accounting, operating their central bank like a for profit business. Obviously our Treasury is our sovereign wealth fund , but we do such a good job of legislating shoe laces, unless there is a crisis , than , as Paulson explains in his book, we must capitalize, underwrite, and pressure congress to appropriate what ever it needs to save the wonderful system. In and of itself seems like allot of double talk. Also here is another confusing element for me. Frank Newman explains, dollars never leave the American financial system, i understand that , they just change ownership.I am confused about how dollars are converted to foreign currency, or are all international trades first settled in the foreign exchanges traded everyday, but if the dollars stay in our financial system, and the foreign currency stays in that countries system, than what agency is making sure the conversions are reconciled . This part i am confused about and how it might relate to the idea the government cant produce as many dollars as it wants because the entire global financial system is interconnected, and dependent on all the central banks communicating and monitoring each other. Obviously any sovereign bank can do what ever it wants, but because they’re all linked through the foreign exchange markets they have to at minimum pretend they seek to balance accounts, or all confidence in the integrity of the currency networks will cease.
Sorry if this is off topic.but every time i hear about these clowns, like Tim Geitner, that contributed to the mortgage debacle, with their free market solves everything insanity, and than ultimately benefit from their bad decisions, , even if indirectly , i get sick. This country is a banana republic. Geitner, Larry Summers,Greenspan, Rubin, and the whole bunch of their com padres ,plus goldman Sachs , the other investment banks and the schools that supported their philosophy did just fine, meanwhile millions have to suck it up as bad timing. These pricks still justify most of what they did and supported. , Never the less , their harmful policies, branded them millionaires many times over, and they still wont come clean.
.
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Kirk is an example of a right-winger who desperately wants to serve the rich, but is too clumsy to ever be installed as US President.
He is so eager to crush the masses and to champion the Big Lie that he purportedly warned officials in China not to buy U.S. Treasury securities. This is the kind of thing that, if taken too far, might eventually cause the masses to start asking questions. Such an awakening cannot be allowed, since the Big Lie depends on the masses remaining in a dream state. In twilight consciousness, the masses do not think logically, nor look too closely. That’s why they are slaves to the Big Lie and the rich.
All forms of the “emperor’s-new-clothes” delusion depend on this dream state. And the dream state depends on the illogic of the delusion. For example, most people think the US government creates money, and also that the US government can only get money by borrowing and taxing. This is a self-contradiction. It creates cognitive dissonance, which sustains the dream state, and thus the Big Lie.
Lies and absurdity are mutually dependent. If a religious preacher speaks too logically, or becomes too specific in his descriptions, then he will expose his own mumbo-jumbo as gibberish. He will cause his followers to lose their “faith” (i.e. to awaken from their dream state). Hence the preacher finds it necessary to harp on the vague “mystery of God.” That is, he must sling bullshit.
Likewise, politicians must only speak in general terms, or else the masses will lose their faith in the Big Lie, such that the gap will stop widening. For example, politicians must say, “We must live within our means!” but politicians must not be too specific about this. They must not do like Sen. Mark Kirk, and say, “Therefore China must stop buying US Treasuries.”
“Whoa!!!” Geithner screams at Kirk. “The Big Lie makes us rich at the expense of the masses, but if you start talking about EXACTLY what the emperor’s new clothes look like, then you will awaken our slaves from their dream state. You will weaken the Big Lie.”
Then, as Rodger notes above, Geithner lulls the masses back into their dream state by falsely characterizing the issue as a Republican-vs-Democrat thing. This is misdirection, which (once again) is necessary to maintain the dream state, so that Geithner can keep getting richer while we get poorer.
If you want to be the US President, or the US Treasury Secretary, or the Fed chairman, then it is not enough to faithfully serve the rich. No, you must also be able to keep the masses confused, bickering, and in a dream state. Otherwise you will look like a clown. You will look like Mark Kirk, John McCain, or Ted Cruz.
This is why NJ governor Chris Christie cannot be president. He’s too boorish and polarizing to keep the masses asleep. Nor could Romney and Ryan be president. They were too clumsy. Their lies, if pushed too far, would cause the masses to start asking questions. The essence of a skillful politician is to serve the rich and widen the gap, while keeping the masses in a dream state. Obama is good at this. It’s called being a “moderate,” in which you keep the masses anesthetized while you rob them blind.
Republican Senator Marco Rubio of Florida wants to be US President, but he keeps taking extremist positions on issues like abortion. He’s got a long way to go before he reaches Obama’s level of slickness.
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But the Democrats are for the poor, right Rodger. They are just a tad better (your words).
I’m 100% that the ongoing theft will never end, people like it that way.
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