EVERY DEPRESSION IN U.S. HISTORY BEGAN WITH A REDUCTION IN FEDERAL DEFICIT SPENDING.
1804-1812: U. S. Federal Debt reduced 48%. Depression began 1807.
1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819.
1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837.
1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857.
1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873.
1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893.
1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929.
1997-2001: U. S. Federal Debt reduced 15%. Recession began 2001.
The graph below shows the essentially parallel paths of GDP vs. perhaps the most comprehensive measure of the money supply, Domestic Non-Financial Debt:
COMNG TO YOUR NEIGHBORHOOD SOON: THE TRUMP DEPRESSION (which Trump will blame on Obama, Biden, Pelosi, Democrats, and eventually on Musk (who like all Trump associates, will be thrown under the bus to save Trump).
Balancing the federal budget always has caused a calamity because of this simple formula:
GDP = Federal Spending + Nonfederal Spending + Net Exports
Read it carefully, and you will understand why a federal balanced budget absolutely, positively will cause a recession if we are lucky or a depression if Trump continues to be President.
We will be saved only in the unlikely event that the public begins to understand Monetary Sovereignty.
Rodger Malcolm Mitchell
Twitter: @rodgermitchell
Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell;
MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell;
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The Sole Purpose of Government Is to Improve and Protect the Lives of the People.
MONETARY SOVEREIGNTY
#Monetary Sovereignty - Mitchell 
There’s a natural law called Similitude. This means the rules change when going from a micro to a macro condition. For example, a needle or bug will float on water, but a proportionately larger nail or big bug will not be supported by surface tension and will sink. Similarly, a fly can jump from a plane and survive but a human w/o a parachute cannot.
A microeconomic business/household has a limited budget and can go broke. The federal government has a macroeconomic budget w/o limit even though we pretend a ceiling exists or that going broke can happen.
The Trump administration or any administration that tries to limit or reduce spending will fail by breaking the Law of Similitude as per the above depression/recession chart of economic history. Everything changes when size hits a critical limit. Similitude will not be found in any econ textbook because economics is not founded in reality.
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The key is Monetary Sovereignty. Consider Germany, Australia, and Canada. Germany has the largest economy of the three, but being monetarily non-sovereign, it can run short of the currency it uses, the euro.
Australia and Canada are Monetarily Sovereign, so they cannot unintentionally run short of their sovereign currencies, coincidentally also referred to a “dollars.”
Because GDP = Federal Spending + Nonfederal Spending + Net Exports, a reduction in Federal Spending must cause a reduction in GDP, and that reduction is termed a “recession” or “depression.“
It’s simple algebra. If Musk/Trump successfully reduces Federal Spending, we will absolutely, positively have a recession or depression. There is no mathematical alternative.
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