The Trump/Musk/DOGE troika has done incredible damage to America and it promises to do even worse, all in the name of saving taxpayers’ money.
Yet, despite the sound and fury, firings, and lawsuits, no taxpayer has seen even a penny in savings, nor ever will.
The reason is that federal taxpayers do not pay for federal spending, so saving the federal government money does not translate into savings for federal taxpayers.
State and local governments are “monetarily non-sovereign.” They cannot create dollars at will. They rely on taxes and borrowing to pay their bills.By contrast, the federal government is Monetarily Sovereign. It can and does create dollars at will, so it does not use tax dollars, and it never borrows dollars.
If the federal government doesn’t spend tax dollars, why does it collect taxes? Two reasons:
- To assure demand for the U.S. dollar by required taxes to be paid in dollars;
- To control the economy by taxing what it wishes to discourage and by giving tax breaks to who it wishes to reward.
Those tax dollars you send to the IRS, or are deducted from your paycheck, do not pay for federal spending. In fact, tax dollas are destroyed the instant they reach the U.S. Treasury.
The dollars in your paycheck and/or checking account are part of the M2 money supply measure. When they reach the Treasury, they cease to be part of any money supply measure. They simply disappear into our Monetarily Sovereign government’s infinite supply of money.
Whether you send $1 or $100 Trillion to the Treasury, the wealth of the U.S. government does not change.
Although sending your dollars to the federal government will make you poorer, it won’t help the government pay its bills—not even by a penny.
Don’t believe it when Elon Musk and Donald Trump tell you they are saving you money. They are cutting staff to destroy the safeguards that protect you from a dictatorship.
Everything Trump and his minion, Musk, do is to increase their personal wealth and power. In their philosophy, you will see no room for compassion or concern about the people.
Let’s face it: Blindly firing thousands of people while having no knowledge of what they do or how good they are at their jobs does not bespeak “efficiency,” no matter what the Department of Government Efficiency tells you.
Quite the opposite, it indicates the desire to replace law and commonsense with absolute power.
Rodger Malcolm Mitchell
Monetary SovereigntyTwitter: @rodgermitchell
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A Government’s Sole Purpose is to Improve and Protect The People’s Lives.
MONETARY SOVEREIGNTY
#Monetary Sovereignty - Mitchell 
Acceptance of Monetary Sovereignty would mean Game Over. To keep this whole mess going, the money game we’ve come to know must remain as is. Otherwise, it would be like saying to a Catholic that the Pope is not for real, wake up.
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Anyone remember this overtime game in 2015 when Little Britain thinking itself to be penniless and entirely at the mercy of those scary bond vigilantes in the capital markets fought back by redeeming 4% perpetual bonds? https://www.gov.uk/government/news/chancellor-osborne-to-repay-part-of-our-first-world-war-debt
some of the debt being repaid in redeeming 4% Consols dates as far back as the eighteenth century. In 1853, then Chancellor Gladstone consolidated, among other things, the capital stock of the South Sea Company originating in 1711, which had collapsed in the infamous South Sea Bubble financial crisis of 1720.
And in 1888, Chancellor George Goschen converted bonds first issued in 1752 and subsequently used to finance the Napoleonic and Crimean Wars, the Slavery Abolition Act (1835) and the Irish Distress Loan (1847). This debt will be repaid through the redemption of the 4% Consols.
The Treasury takes into account a number of factors when deciding whether to redeem its stock of undated bonds. But the Treasury is confident that it can deliver value for money to current and future tax payers by refinancing this borrowing now at lower rates than the 4% it is currently paying.
The government is only able to do this today because interest rates are lower today, thanks to the confidence in the plan that the government has put in place to cut borrowing and create a resilient economy.
The Chancellor of the Exchequer, George Osborne said:
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Thomas Edison famously said:
“It is absurd to say our country can issue bonds and cannot issue currency. Both are promises to pay, but one fattens the usurer and the other helps the people.”
This quote reflects his critique of the financial system, emphasizing that issuing currency directly benefits the public, while issuing bonds primarily enriches lenders.
The delight that UK’s bonds could be paid at a low interest rate is misplaced. The more interest they pay, the healthier the economy. A Monetarily Sovereign nation’s economic health relies on the central government running deficits — large deficits.
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