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Mitchell’s laws:
Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●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.
●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.
●Everything in economics devolves to motive,
and the motive is the Gap.

Most polls have flaws. Sometimes the mere order of questions biases the results. Quite often, the wording of questions decides the answers.

There are bad polls; truly gawd-awful polls and there are political polls. These later range from O.K. to ignorant to “I-can’t-believe-anyone-would-create-such-a-ridiculous-piece-of-sh*t” polls.

And then we come to the ultimate poll for suckers, courtesy of the right-wing Washington Post. Here it is in its entirety:

Mr. Obama: “Is Ft. Knox Empty?”

Cast Your Vote Now!

I am gravely concerned that President Obama may have emptied Ft. Knox. As a U.S. Citizen and taxpayer, I demand a complete and immediate audit of U.S. Gold reserves.

Barack Obama would never go so far as to permit America’s gold reserves to be withdrawn to finance massive public debt.

Enter Email Address:* _____________________________________(required)

It’s a simple fact. The United States Bullion Depository at Ft. Knox has not been fully audited since the Eisenhower administration!

Honest financial institutions openly embrace audits to prove that they are good and faithful stewards. But the federal authorities who control the nation’s once vast gold reserves at Ft. Knox? They haven’t allowed a comprehensive audit to be conducted since 1953!

In fact, no visitors whatsoever are permitted at the Depository, not even United States Congressmen. According to the U.S. Treasury website, “this policy is strictly enforced.”

Is the U.S. gold reserve being whittled away to finance federal spending? Did we ship all our gold to New York to dump on the market or to China to cover our debts? Is the vault at Ft. Knox in fact empty, as many have suggested?

Let’s pause for a moment from these breathless, clearly biased questions, to answer with a couple of inconvenient facts:

1. Gold does not finance federal spending. Dollars finance federal spending. Even if the U.S. did not own one gram of gold, this would have no effect on the federal government’s ability to pay its debts.

Apparently, the author of this poll doesn’t understand (or want you to understand) that President Nixon completely divorced the dollar from gold.

People do not accept dollars for being backed by gold, simply because dollars are not backed by gold.

The poll continues:

The feds refuse to audit the gold reserves, so Money Metals Exchange is auditing public opinion. We want to know your opinion – since an audit has not been permitted in over half a century. Do you suspect that Ft. Knox is empty?

VOTE NOW to register your opinion, and you’ll also be entered in a special drawing to win 50 FREE U.S. Silver Eagle Coins worth over $1,000!

We’ll send poll results to every member of Congress, and to the most powerful federal official most Americans have never heard of, United States Treasurer Rosa G. Rios, who oversees the U.S. gold reserve!

Ooooh! Everyone loves a conspiracy. The Treasurer and the members of Congress will be shocked — SHOCKED — to learn that many Americans want to know how much gold is in Fort Knox.

The whole subject is beyond silly, but gold bugs claim:

1. Gold is “real money.”
Fact: Gold isn’t even fake money. Gold never has been money, which always is determined by a creator, usually a government. Gold always has been a commodity used for barter.

The same is true of silver, platinum, palladium, copper, brass, bronze, etc. All are commodities used for barter.

2. Gold is a “store of value.”
Not sure exactly what a “store of value” means, but I suspect it means that over time, people have wanted it. The same can be said about the above-mentioned metals as well as diamonds, antiques, my house and a good book.

If “store of value” is supposed to mean gold keeps its value, surely that isn’t true. The value (price?) of gold bounces up and down in yo-yo fashion, just like any commodity. By clever time selection, one can prove gold is a great investment or a terrible investment — and it doesn’t even pay interest or dividends, and it costs insurance and storage.

3. For thousands of years, gold has had value, but fiat money can go worthless.
Yes, if the United States dollar becomes worthless, and the nation becomes destitute, and you own gold (or silver, platinum, palladium, copper, brass, bronze, etc.), you will be able to barter them for the food no one can afford to grow and the clothing no one can afford to weave.

If you think that is a viable financial plan, I have bridge to sell you.

Further, ALL money is fiat money, in that by definition, it is created by the FIAT of the issuer. Gold itself, never has been money.

Gold coins have been money, by the fiat of various governments. Those governments arbitrarily decided (i.e. by fiat) how many dollars, lira, pesos, francs, etc. were to equal a gram of gold or an ounce of silver. And those decisions changed through the years — again, by government fiat.

U.S. pennies once were copper and nickels were nickel. So, were copper and nickel money?

And as for that “thousands of years” nonsense, I remind all that for thousands of years horses were a primary method of transportation. They were replaced by technology. But a few suckers kept buying buggy whips. Gold too, has been replaced by technology, and a few suckers keep buying it.

Bottom line, the federal government would be neither more nor less able to pay all its bills, if Fort Knox were empty or chock full of gold. There are only two groups who want you to care:

*The bullion dealers (Money Metals Exchange et al, who make their fortunes operating the “greater fool” scheme. (Similar to a Ponzi scheme or a “bubble,” the “greater fool” scheme means you buy something at too high a price, hoping to find a greater fool who will buy it from you at an even higher price.)

*The rich, who want suckers to believe money is a physical entity, and the federal government can run short of dollars.

This belief justifies deficit reduction. Because deficit spending benefits the poor more than the rich, deficit reduction widens the gap between the rich and the rest. And widening the gap is the primary goal of the rich. (It’s the gap that makes them rich. The wider the gap, the richer they are.)

So go to the Washington Post article and answer the poll. You might win “50 FREE U.S. Silver Eagles worth over $1,000!”

Is it just me, or do you also find it hilarious that in a poll about gold, the prize is silver coins?

You just can’t argue facts with suckers. The Nigerian bank con relies on this.

Rodger Malcolm Mitchell
Monetary Sovereignty

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 and here)

10. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)

The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.

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.
1. A growing economy requires a growing supply of dollars (GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.

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 growth lines rise. Increasing federal deficit growth (aka “stimulus”) is necessary for long-term economic growth.