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:

1. To assure demand for the U.S. dollar by required taxes to be paid in dollars;
2. 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 Sovereignty

Twitter: @rodgermitchell

Search #monetarysovereignty

Facebook: Rodger Malcolm Mitchell;

MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell;

https://www.academia.edu/

……………………………………………………………………..

A Government’s Sole Purpose is to Improve and Protect The People’s Lives.

MONETARY SOVEREIGNTY

A question for the geniuses on the Supreme Court of the United States: If you tell a convicted felon:

“From now on, you cannot be convicted of your crimes, and if your associates commit crimes, you can pardon them,”

what will happen?

Just asking.

   

Rodger Malcolm Mitchell

Monetary Sovereignty Twitter: @rodgermitchell Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell;

MUCK RACK: https://muckrack.com/rodger-malcolm-mitchell; https://www.academia.edu/

……………………………………………………………………..

A Government’s Sole Purpose is to Improve and Protect The People’s Lives.

MONETARY SOVEREIGNTY

For your interest, here is an Email I sent to Jenn White, a reporter on public radio.

In my fading days, I’m still trying to educate. You might wish to contact your favorite radio or TV personality, too.

Message for Jenn White
Rodger Mitchell
Mar 19, 2025, 11:58 AM

On today’s 1A, I heard your interviewee express the unfortunately common belief that Social Security will run short of dollars, so either benefits must be reduced or FICA must be increased in some way.

This is not correct. Here are the facts, which I have not heard on your show or any other NPR show.

1. Unlike state and local governments, the U.S. federal government is Monetarily Sovereign. It cannot unintentionally run short of its sovereign currency, the U.S. dollar.
2. Thus, no agency of the government can run short of dollars unless Congress and the President want it to.
3. Social Security is a federal agency. It cannot run short of dollars without Congressional approval.
4. If Congress wished, it could add a trillion or a hundred trillion to Social Security merely by voting to do so.

Who agrees with this?:

Alan Greenspan: “A government cannot become insolvent with respect to obligations in its own currency. There is nothing to prevent the federal government from creating as much money as it wants and paying it to somebody. The United States can pay any debt it has because we can always print the money to do that.”

Ben Bernanke: “The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. It’s not tax money… We simply use the computer to mark up the size of the account.”

Jerome Powell: “As a central bank, we have the ability to create money digitally.”

The St. Louis Fed: “As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e., unable to pay its bills.

“In this sense, the government is not dependent on credit markets to remain operational.”

Social Security (and Medicare) are not funded by FICA or by any other tax, but rather by Congressional money creation. (And no, it doesn’t cause inflation.)

I know this is not what you have been taught over the years, but if you would like to learn the full implications of Monetary Sovereignty, please feel free to contact me.

I’ve studied this for 30 years. I’ll be glad to help you understand the realities of federal finance.

(But you’d better hurry; next week I’ll be 90 years old)

Kindest regards,

Rodger Malcolm Mitchell