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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.
●The single most important problem in economics is
the gap between rich and poor.
●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.


If you search through all the comments made by the dozen (or is it 20?) Republican Presidential wannabe’s, you might begin to think being stupid is a requirement for being elected the most powerful man on earth, the President of the United States in America.

And then, if you look at the likes of Presidents Carter (“I only have to talk to one person and that’s the dictator, because he speaks for all the people.”)

And Reagan (“Why should we subsidize intellectual curiosity?”)

And Clinton (I did not have sexual relations with that woman.”)

And Bush I (“Read my lips. No new taxes.”)

And Bush II (“Brownie, you’re doing a heck of a job”)

. . . You might believe stupidity really is a requirement.

And then we come to President Obama, who affirms the need for stupidity.

First a bit of background:

Islamic State Attacks Israel: ISIS Supporters Threaten Hamas, Take Credit For Launching Rocket From Gaza

Islamic State group supporters in Gaza have given ruling Hamas leaders a 48-hour deadline to stop a crackdown on them.

The militants also claimed responsibility for a rocket fired at Israel from Gaza last week.

Let’s see. Islamic state is a terrorist organization. Hamas is a terrorist organization. Both recently have fired rockets into Israel.

And then there’s Syria:

State Sponsor: Syria

Syria continues to be categorized as a state sponsor of terrorism, since its first designation in 1979. According to the State Department, Syria’s government supports U.S.-listed terrorist groups and allows some of these organizations such as Hamas and Palestinian Islamic Jihad to maintain headquarters in Damascus.


Israel strike kills militants on Golan Heights frontier

An Israeli air strike has killed four militants armed with a bomb along the Israeli-Syrian frontier in the Golan Heights, the Israeli military has said.

And, the terrorist organization, Hezbollah:

Experts fear ‘accidental’ war between Israel, Hezbollah

Hezbollah has long threatened Israel, but sources in the Jewish state fear that if an all-out war happens near the Lebanon border, it will happen not by design, but by accident.

Fighting on so many fronts, especially in chaotic Syria, where Iran has dispatched Hezbollah to help President Bashar al-Assad’s forces, could increase the chances of a rogue element firing rockets into Israel simply to draw the Jewish State into a war, say experts.

And Egypt:

Maged Farag: For 70 years, Palestinian cause has brought Egyptians nothing but harm.

Asked by the interviewer if he was serious about Egypt dropping the Palestinian cause, Farag replied, “Churchill once said that he was ready to cooperate with the Devil in the interest of his country. As a man who knows a little bit about history and about international relations, I believe that it is in our interest to maintain normal relations with Israel,” he said.

So in summary, tiny Israel is surrounded by current and former enemies and terrorist organizations, most of whom have attacked recently and are making plans for more attacks.

But even former enemy Egypt is having a change of heart about supporting the “Palestinian cause.”

And now comes the President of the United States, a putative ally of Israel:

Obama: Netanyahu’s Palestine stance erodes Israel’s credibility

U.S. President Barack Obama said Israeli Prime Minister Benjamin Netanyahu’s terms for diplomacy that might lead to a Palestinian state meant Israel had lost international credibility as a potential peacemaker.

Obama also suggested that continued U.S. diplomatic defense for Israel at the United Nations over the Palestine dispute may be reviewed, while reaffirming U.S. support for Israeli security in a conflict-riven Middle East.

“The question is how do we create some building blocks of trust and progress.”

Atta way, President Obama. Thanks for creating those building blocks of trust and progress.

Too bad Israel has failed to make peace with terrorists actually attacking it, while you, Mr. President, have “succeeded” making peace with Iran, Russia, Syria, Iraq, al Quada and the dozens of other groups listed as terrorist.

“If in fact there is no prospect of an actual peace process, if nobody believes there is a peace process, then it becomes more difficult to argue with those who are concerned about settlement construction.”

Get it? If there is no peace, it’s the fault of our ally and sole Mideast democracy, Israel, not the fault of all those terrorist organizations.

One wonders who Obama would blame if Mexico, Canada, China and North Korea fired rockets into the U.S.

Anyway, the long tradition of stupidity by our Presidents continues. So don’t blame the Republican contenders for past stupidity and stupidity sure to come. It seems to be a requirement.

But wait: In the immortal words of Republican Lindsey Graham, “I’m thinking about running for president. You get a house and a car and a plane. It’s a pretty good gig.”

Hey, maybe not so stupid, after all.

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.


Long term view:
Monetary Sovereignty

Recent view:
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.