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.
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One of our readers — tetrahedron720 — wrote:
“The 1% fear loss of control and power over the minions. In the final analysis it may take continued austerity to elevate our problems to such a degree that we induce failure and collapse. Then, faced with no other choice, society will be forced to have to find functional finance as the only solution. Emerge by means of emergency.
The solution MAY be the elevation of the problem.
My response was:
“Look around you at all the bad economies, from North Korea, to Gaza to Haiti to many of the African nations. There, the economies are in shambles, but the rich lead luxurious lives and maintain power, while the rest lead lives of misery.
“It can take generations or even centuries, for the poor to acquire enough willpower to rise up against the rich. Meanwhile the poor suffer. Much better to narrow the Gap via the ’10 Steps to Prosperity.’
“I do not subscribe to the philosophy, ‘Things have to get worse before they get better.’”
And here is a bit of evidence to back that up:
Big Banks Fined Mega-Billions; CEOs Remain Untouched, Above the Law
By Michael PayneGet arrested for robbing a bank or shoplifting and you will go to prison. Get caught selling cocaine or steal a car and you will do jail time. But if you are a CEO of one of the biggest banks in America and that bank is fined mega-billions for fraudulent practices you need not worry because the U.S. Justice Department will give you a free pass; you are, in effect, above the law.
That is a clear travesty of justice, but it has become commonplace in America. Just look at the following list of U.S. and some foreign banks that have been fined billions of dollars. Not one of their top executives has been prosecuted in connection with the violations of the law that led to these fines:
$25 billion – Wells Fargo, J.P. Morgan Chase, Citigroup, Bank of America, BAC, and Ally Financial – 2012
$13 billion – J.P. Morgan Chase & Co. — 2013:
$9.3 billion – Bank of America, Wells Fargo, J.P. Morgan and 10 others — 2013:
$8.5 billion – Bank of America — June 2011:
$2.6 billion – Credit Suisse AG — May 2014:
$1.9 billion – HSBC Holdings, HSBA – 2012
$1.5 billion — UBS, AGUBSN – 2012
$1.4 billion – 10 Wall Street firms including Goldman Sachs, Morgan Stanley, and J.P. Morgan — 2003
The above criminal enterprises were only too happy to pay fines. To them, these are akin to jaywalking tickets — paid by their employers.
The leaders of these criminal enterprises paid nothing — not money, not jail — nothing. In fact, most of them received bonuses from their companies and from the Obama administration.
That is how crime is discouraged: By rewarding it.
And how big an issue is this for you, the voting public? How many of you are so outraged, you have marched the streets, to protest? How many of your have bothered to write the President or your Congressperson, to express your anger?
How many of you even care that wealthy criminals have been, and continue, raping you and your children, while going unpunished?
Now compare that with how angry you feel about foreign children coming across our border. And how you are incensed that you might not be able to carry a big, loaded gun in public. And you are so-o-o-o-o enraged that the poor receive food stamps. And you are foaming at the mouth that gay people are allowed to marry.
Yes, those are the things you care about and vote about. Those are the things that take bread out of your mouth, and impoverish your children. Right? Oh, sure.
Those are the things you’ll go into the street and protest-march against. But, rampant criminality by the rich? You don’t even notice, much less care.
Why?
Like magicians, the rich have misdirected you with phony issues — guns, immigrants, foodstamps, so that you don’t even see their slight-of-hand (in your pocket).
You don’t even see the Gap between the rich and you growing wider and wider, and if you see, you don’t really care enough to protest that.
No, you care that the unemployed might get too much compensation. That’s your big issue, because that is what the rich have told you to care about.
So you go stand in the road holding stupid signs, to stop a bus filled with child immigrants. You go demand to carry your military grade weapons into every store on main street. You’re so angry, you want to shoot an abortion doctor and intimidate a girl who visits one. You demand that the poor be made to starve, because it’s “their own fault.”
But you don’t demand that Congress and the President enforce the law. You don’t demand that rich criminals go to jail. No marches for you. You’ll vote as you’re told.
After all, the rich are entitled to do whatever they want, including bribe Congress and the President..
Your Congressperson doesn’t care about rich criminality. Why should he? You never contacted him. You never marched.
For the same reasons, Obama doesn’t care, either.
Why should you?
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. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here)
10. Increase federal spending on the myriad initiatives that benefit America’s 99% (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 growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.
#MONETARYSOVEREIGNTY
#Monetary Sovereignty - Mitchell 
It’s simple why people don’t protest or even contact their political leaders for help. Most people realize their politicians are corrupt/bribed servants of the 1% criminal oligarchy. The responses by government and police towards “Occupy Wall Street” and “Ferguson, MO” strongly sent the message that dissent will not be tolerated and the lives of the 99% are worthless in the eyes of our elite rulers. Most national systems have been taken over by parasitic sociopaths in various “mafia” style system on steroids. The massive spy networks (not only the USA’s NSA but every nation does it) is mean to control the population – not to protect it from any “terrorism.” Some people fall for the distractions that the 1% try to perpetrate thru their 24/7 media shills that we should blame others (not them) for our misery. If there are any organized rebellions, do you not think the result will be similar to Egypt or some places will degenerate into chaos – not good places to live. Thus people are generally resigned, despondent, depressed and incapable of doing anything. The atomization of most societies due to social media and too much technology also prevents any concerted efforts to organize within the 99%. However, one only needs about 20% of the total population working peacefully and under the radar to effectuate change. We have to set up non-threatening and parallel systems before trying to challenge the status quo. Keep up the good work – Pierre in Phoenix, AZ.
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Face it. We the wee people are insignificant and we know it. Sure there’s a few who’ll raise some hell and get noticed, but for the most part people really feel it’s all hopeless–or at least feel helpless to make a change. Voting once every 2 to 4 years is all the power we have while the .1% exercise their
influence 24/7.
As an addendum after my last response, I see we’ll need some extra help coming the form of an existential threat currently nipping at our heals. Either by design or coincidence, Monetary Sovereignty and Roger’s 10 Steps will happen when the traditional financial system is taken to the brink by so many and varied insurmountable natural calamities sucking the monetary system dry. At that time, the power structure will have to give in to the only thing left on the planet that will stop the hemorrhaging… non-inflationary functional finance. There will be no choice in the matter.
In the words of Ben Bernanke, “If we can find enough electrons we can find enough money.” We have the technology and if pressed hard enough we can find the credit.
Money is debt but technology is to our credit; the latter always greater and more lastingly effective than the former.
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Pierre and Tetra,
I agree with the essence of your comments. Yet, people do protest.
They do protest when they can’t carry loaded guns everywhere.
They protest in front of buses carrying immigrant children.
They protest in front of abortion clinics.
They protest gay marriage.
They protest Israel.
What they don’t protest is the one thing the hurts them most: Stealing by the rich. That protest was left to a bunch of kids named “Occupy,” who didn’t understand what they were protesting about.
So the question is, why do people protest nonsense, when logically, they should link arms and march down the street, demanding that the rich banksters go to jail?
My answer: The rich have feinted right, and the people have followed the feint. The people actually believe it is in their best interests, and the interests of their children, to prevent gay marriage.
It’s called “misdirection.” David Copperfield knows it well. He must have taught political science.
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I acknowledge the protests you have mentioned – mostly by wingnuts who are generally idiotic and delusional. About 20% of the population can be manipulated by a few insidious “leaders” but these well-covered media events did not involve the vast majority of people. We see more protests by much larger groups in Europe, Asia, South America, the Mideast – Americans are complacent and slow to anger – and to figure things out. One reason is that venting anger doesn’t accomplish much – you need specific goals in order to protest – and since the US “liberal left” has been dead for decades, many people have no leaders – more importantly – ideas around which to protest. The 1960s Civil Rights movement and Anti-War movements were the last successful broad-based challenges to the Status Quo that succeeded. I have tried for months to discuss MMT & MS with many intelligent people with limited results. Should we give up or perhaps change our language or tactics? You’ve been writing your blog for a long time – are we getting anywhere closer to changing the minds of people in positions of power? Do we need to make some efforts to show viable alternatives that work (outside of government) and how would people even react to such examples? I’m tired of talking and think we need to act. Best wishes – Pierre in Phoenix, AZ
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Update. Eric Cantor 3.4 million. The bribery continues.
Thanks Roger
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Ignorance becomes outraged, easily — and at the wrong things, even more easily:
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The “get worse before it gets better” provocateurs were in charge of the Occupy movement. (I was there when inner cadre discussed their goal of generating anger and why they blocked solutions in favor of protest.) It’s just Marxism-Leninism in drag. That idea has NEVER worked in any industrial society. It only worked in agrarian societies shot through with poverty, because peasants are independent, with strong personal friendship networks and they know how to get things done.
The Syrian revolution (what we see as the ISIS/ Free-Syrian-Army) is exactly the same. It’s a rural peasant-based revolt congealed around Sunni Islam instead of Marxist ideology. But the methods are exactly the same as Marxism-Leninism, right down to support from outside the region. (Lenin was supported by the Kaiser to take Russia “like a virus”.) ISIS has extreme righteousness, mass executions, terror, extermination of unbelievers, and centralization of state control, just like Leninism did. Just like Maoism did. What’s common is that those revolutions use uprising peasants from the countryside.
Peasant society is virtually impossible to infiltrate. Strangers are not trusted. There are endless places to hide, endless ways to stay fed in wartime.
Marx’ vision was of oppressed factory workers taking over. That never materialized.
Urban society has always been too fractured, too competitive, too full of betrayal. In urban settings it is too easy to spy on people. It’s too easy to infiltrate a group, because networks are loose, and people form associations quickly. Urban society is also too interdependent. People don’t make their own food, clothes,dishes, or pretty much anything. It’s easy to starve them out if they hole up in a building. In wartime, any place they go people will be there, watching. They will leave a trail.
So Mitchell’s right. For the developed world, that “door” of revolution by making things worse is a delusion.
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The reason on why the majority does not protest is right in front of our eyes.
Does the saying “don’t bite the hands that feed you” ring a bell?
Protesters from the past don’t resemble our current “poor” by a long shot – there is you reason.
This topic makes me think the end cannot be far away for the really screwed to get up and demand their rights – and it won’t be the ones you expect.
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How about, “Don’t bite the hand that steals your food”?
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Mr. Mitchell
Last election for european parliament, in Portugal, pro-austerity parties still had around 66% of the votes. This, despite brutal cuts in healh care, education, social security, etc.
Sometimes I wonder if the majority of middle and low-income people actually like this state of affairs, or if they fantasize that someday austerity will magically disappear….
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How dare those politicians take away all that we are entitled to. Our food, our healthcare, our medicine…
How dare they… Now are there any grown ups on this room?
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Pintomachado wonders if the middle and low-income people like this state of affairs — or if they fantasize…
There it is, again — the class based assessment of someone who is doing OK. Damn those poor people and their incomprehensible ignorance! How could they do this to ME?!
You do not subscribe to the philosophy, ‘Things have to get worse before they get better’ because you are programmed to look out for number 1. This is the most convenient answer for someone in your boat.
Let me tell you how it will be:
A crisis of unimaginable proporations is already on tap. The 1 percenters have a two thousand+ tradition of managing these carefully choreographed ‘events’ and after the next one is over they will still be on top; aided and abbetted at every turn by self serving hypocrites with plenty O’ mulla; idolators in the lingo of the stupid and poor.
When this pre planned crisis is fully initiated, the 1 percenters will come looking for ‘solutions’ (delaying tactics) and your ten point plan will look very appealing. Your unconscious calculation is that you will be OK and it coincides perfectly with their very conscious calculation that winner takes all.
We, the so-called 99%, are not dealing with normal people. How many times must it be said? Their intentions are literally genocidal and judging by the inability of their well intentioned but utterly deluded ‘well-off’ minions they will achieve their objectives. They will win because they always win with the only difference being their power for destruction is multiplied a million times over. We have yet to develop the cultural understanding which is the prerequisite for reordering the world.
I do not judge you malevolent, only deluded in this instance. The moment of crisis, which may not come for 30 or more years, will still come and when it does you will still be looking out for yourselves. This is the disease of our civilization.
So here’s my suggestion: instead of planning for a sudden awakening you should use your better means and plan for the opposite. You can wait outside the door of the latest bilderberger conference waiting to be called to present your ten points or you can prepare for what must be done.
This is as simple as it gets: the sociopaths must be destroyed. If you do not stand against them you stand by their side.
Great site and analysis btw. I’m adding you to my list.
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