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Mitchell’s laws:
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes. .
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.
●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.
●Everything in economics devolves to motive,
and the motive is the Gap.

Readers of this blog know:

1. A Monetarily Sovereign government (U.S., UK, Australia, Canada, et al) has the unlimited ability to create its own sovereign currency. The U.S., for instance, never can run short of dollars, and can pay any debt denominated in dollars.

2. A Monetarily Sovereign government never needs to ask anyone for its own sovereign currency — not foreign nations, not its own citizens. Thus, neither taxing nor borrowing funds national spending.

3. For a Monetarily Sovereign government, deficit and debt reduction not only are financially unnecessary, but are harmful, especially to the lower income/wealth/power groups. Austerity widens the Gap between the rich 1% and the 99%, by relatively impoverishing the 99%.

4. It is the Gap that makes the rich rich. Without the Gap, no one would be rich, and the wider the Gap the richer they are. So the rich pay the politicians, the media and the economists to promote Gap-widening activities, the primary of which is austerity.

The monetary effects of Gap-widening are just part of the problem, as explained in this NewScientist Magazine article.

Social failure, not lifestyle, has made Scots sick
26 January 2015 by Harry Burns

Last year, just before the Commonwealth Games, figures came out showing that the host city, Glasgow, has the lowest average life expectancy of any UK city. A boy born there between 2010 and 2012 can expect to live just 72.6 years, against a national average of nearly 79.

The popular belief is that this is because of diet, smoking and drinking.

In fact, most preconceived notions about the bad health of Scots are wrong. Research into its real causes has implications for health policy internationally.

The slowing of the rise in Scotland’s life expectancy has been most marked in the poorest 20 per cent of the population, mainly because of increases in deaths due to drugs, violence, alcohol and suicide.

From 1950 to 1970, Scotland had one of the lowest rates of death from alcoholic liver disease, for example. By 2005, it had the highest.

Put simply, widening health inequality in Glasgow is due to the recent emergence of socially determined causes of early death.

Many studies have shown that the lower down a social hierarchy an individual is, the higher the levels of stress hormones in their blood.

Early childhood experiences can produce lifelong abnormalities in the stress response. Stress is associated with abnormal patterns of brain development in key areas, including the prefrontal cortex, hippocampus and amygdala. These are important for learning, decision-making, memory, stress regulation and emotional arousal.

So young humans, who grow up in dangerous, chaotic environments are likely to be less able to suppress inappropriate behaviour, less able to learn and more likely to be anxious and aggressive.

It may be that what we are seeing in Scotland is the consequence of austerity in the 1970s and 80s, when social change and joblessness led to a breakdown in family life and a cycle of alienation.

Young people with no meaning and purpose tend to sit at home, watch TV, drink and have a couple of kids – and the cycle continues.

Thus, by encouraging austerity, and brainwashing the populace into believing austerity is necessary, the 1% actively promote the very attributes they despise most: Lawlessness, immorality and low intelligence.

The 1%, wishing to distance themselves from the 99%, create conditions that justify widening the gap.

And part of this justification process is the teaching of the 99% that federal financing is like personal financing, and austerity is necessary and good.

The education has worked well, for in the 99%, very few understand what is being done to them. They, in fact, will fight angrily and insultingly to defend the myth that federal taxes fund federal spending — the very myth that dooms them to shorter, less fulfilling lives.

If you are among the 99%, your life will, on average be shorter, less enjoyable and less productive than it could be, were the Gap narrower.

Not only are your income, wealth and social power diminished, but your very brain is adversely affected.

Sadly, this is the relatively short, relatively brutish life the 99% have demanded to give to their children.

Rodger Malcolm Mitchell
Monetary Sovereignty

The 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. Federally funded, 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. (Refer to this.)
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)

Initiating The Ten Steps sequentially 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.