What is the federal debt? A primer for politicians.

Mitchell’s laws:
●The more budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which leads to civil disorder.
●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.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
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MONEY IS NOT A PHYSICAL THING

To understand U.S. federal debt, you first must understand money, specifically the dollar. There is no physical entity called a “dollar.” You never have seen, smelled, touched or tasted a dollar. In today’s economy, a dollar is nothing more than a number in an accounting balance sheet.

The dollar bill in your wallet is not a dollar; it is a title to a dollar. It merely is evidence you own a dollar, much like a house title is evidence you own a house, or a car title is evidence you own a car or a patent is evidence you own an invention.

But unlike a house or a car, a dollar is no more physical than is, for instance, the number six. Although the number six and a dollar are real, you can’t see, smell, touch or taste either of them.

Is it possible to own something that is not physical? Consider a copyright. It demonstrates ownership of a book. But that book is not a physical thing. If I go to a store and I buy your book, who owns the book? I own the physical representation of the book, but your copyright gives you ownership of the non-physical book.

DOLLARS ARE ONLY NUMBERS

Your bank checking account and savings account do not contain dollars. They contain numbers that tell how many dollars you own.

Imagine you are one of the lucky employed, and you have a bank checking account and a bank saving account. Today, your boss gives you your first paycheck: $1,000. What exactly has your boss given you? Money? No, that paycheck is not money.

That paycheck is a set of instructions to your bank, telling your bank to increase the number in your checking account by 1,000. So, for instance, if your checking account number had read 3,476, now that number reads 4,476.

Although for convenience, you might say you now have 4,476 dollars in your checking account, you really have nothing in your checking account but the number, 4,476.

Let’s say you give someone your check for 3,000 dollars. Your check instructs your bank to reduce the number in your account by 3,000 and to increase the number in your creditor’s checking account by the same amount. Although, for convenience, you say you have transferred dollars from your account to your creditor’s account, there really has been no transfer. It’s just that your bank has reduced the number in your account and your creditor’s bank has increased the number in his account.

DOLLAR TRANSFER IS AN ILLUSION

When you wait at a railroad crossing, you see a red light moving back and forth, back and forth. Except the red light really isn’t moving. It’s two lights that blink alternately, and give the illusion of motion, an illusion so powerful that though you know it’s a illusion, you won’t be able to see it as two lights, blinking alternately. Try it.

Similarly, the illusion that dollars move from one account to another is so powerful, we all (including me) talk about dollars moving. But dollars, being non physical, cannot move.

Let’s say that the number in your checking account is 4,476, and you write a check for 6,000 (i.e. send instructions to reduce your account, and increase your creditor’s account by 6,000) Your creditor’s bank will follow your instructions, and increase his checking account number by 6,000. Then his bank will route the check to your bank for “clearing.” But, because your checking account number is too small, your instructions won’t “clear,” and your bank will return the check to your creditor’s bank, i.e the check will “bounce.” Your creditor’s account will be reduced 6,000.

ALL BANK DEPOSITS ARE BANK DEBTS

When you deposit dollars in your bank accounts, you actually lend to your bank. Those dollars are loans, not gifts. Your bank owes you those dollars, and if you want them, your bank is obligated to give them back to you. If you tell your bank you want the dollars in your savings account transferred to your checking account, will this be a problem for your bank? No, your bank simply will debit your savings account and credit your checking account.

By depositing dollars into your checking or savings account, you have forced your bank into debt. All bank deposits are bank debts. Banks love to be in debt. They actively solicit debts (deposits). Being in debt is the mission of a savings bank.

Bank deposits are not “unsustainable,” nor do they cause bankruptcies. Though a bank can become bankrupt, the fault is not deposits, but rather poor business practices. No bank ever went bankrupt because its deposits were too large.

ALL FEDERAL DEBTS ARE BANK SAVINGS ACCOUNTS

All federal debt is just the total of T-security deposits (T-bills, T-notes, T-bonds) in accounts at the Federal Reserve Bank (FRB).

Today, the total federal debt is about 12 trillion dollars. This means the total of deposits in T-security accounts at the Federal Reserve Bank, is about 12 trillion dollars. When you buy a T-bond, you “lend” dollars to the Federal Reserve Bank. You deposit dollars into your T-bond account at the FRB. You are a creditor to the FRB.

Your T-security account at the FRB is essentially identical with your savings account at your local bank. You put dollars in (credit); you take dollars out (debit), and meanwhile you earn a bit of interest.

Whenever you want your dollars back from your “loan,” you merely wire or mail instructions to the FRB to reduce the number in your T-bond savings account, and increase the number in your checking account. The FRB can do this all day long, in any amount. It’s a simple exchange of existing balances.

WHAT IF OUR CREDITORS WANT THEIR MONEY BACK?

Debt hawks worry about what will happen if all our creditors – China, Japan, European nations et al – suddenly want their dollars back. No problem. The FRB simply would debit all their T-security accounts and credit all their checking accounts. Instantly, all federal debt would disappear.

So, why can’t you and I pay off our loans that way? Why are our debts a burden to us, while the FRB’s debts are not a burden to the federal government?

There is a fundamental difference between a loan and a deposit. You aren’t the Federal Reserve Bank. When you borrow, you are not accepting a deposit. If someone lends you dollars, he is not opening a savings or checking account with you.

You borrow in order to spend, so if your creditor wants his money back, you may have spent it. But the FRB does not spend depositors’ dollars. It holds 100% of those dollars in T-security accounts. The FRB always can debit T-security accounts and credit checking accounts. There never has been a time when the FRB was unable to credit checking accounts, and there never will be.

So to all you people who worry that the federal debt is too large, the debt/GDP ratio is too large, the debt is “unsustainable,” China “owns” us, or somehow the U.S. government will not be able to pay its debts, I have some good news. The FRB could pay off 100% of all federal debt tomorrow, simply by transferring already existing dollars from T-security savings accounts to checking accounts.

If you are a lender to the federal government, your money is all there, right in your T-security account at the FRB. All of it. Every cent. So is China’s money, Europe’s money, Japan’s money – every one of those 12 trillion dollars of federal “debt,” all sit safely in FRB T-security accounts.

And despite what the fear mongers tell you, you don’t owe a penny of it. Nor do your children, nor do your children’s children. The FRB owes it all, and it’s all there in T-bill accounts.

So stop worrying about the size of the federal debt. Stop worrying that the U.S. Federal Reserve Bank has too many dollars on deposit. It’s not possible for the FRB to have too many dollars on deposit.

WHY DOES THE GOVERNMENT BORROW DOLLARS?

It doesn’t. It allows interest paying deposits in T-security accounts at the FRB. Why then, does the federal government issue T-securities? It’s an obsolete process based on an obsolete law that, very simply says: The total of T-securities issued each year, must equal each year’s total federal deficit.

Not that there is any functional relationship between deficits and T-security accounts (There isn’t.) It’s just that by law the two numbers must be equal. So, for instance, if the federal government spends $10 million and receives only $3 million in taxes, it runs a $7 million deficit, and is required by law to issue $7 million worth of T-securities, though T-securities have no relationship to deficits.

It’s almost like having a law stating for every car there also must be a horse – a meaningless relationship.

Years ago, there was a reason for this strange law, but no more. Change the law, and the government could run that deficit without issuing a single T-security. The dollars in T-security accounts are not used for federal spending. They just sit there, at the FRB, waiting to be paid back.

WHY ARE GREECE AND ILLINOIS GOING BROKE?

The U.S. “debt” is 100% in dollars, our sovereign currency. Being the sovereign creator of dollars (aka Monetarily Sovereign), we never can run short of dollars. So anyone wanting dollars from the FRB, will have no trouble getting them. The U.S. does not spend the dollars it “borrows.” Those dollars are kept in T-security accounts at the FRB.

When the U.S. spends, it send instructions to creditors’ banks to increase the dollar numbers in those banks. These instructions are cleared by the FRB. This is how the U.S. government creates dollars.

But Greece and Illinois are monetarily non-sovereign. They do not have a sovereign currency. Greece uses euros, which it does not have the power to create. It cannot store borrowed euros in its central bank. Greece needs to spend the euros it receives from borrowing.

Illinois too, uses dollars, but dollars are not its sovereign currency. Like Greece, Illinois has no sovereign currency. It spends the dollars it borrows, rather than being able to store them in a bank account.

BOTTOM LINE

Federal debt is not like non-federal debt. Same word; two different meanings. Federal debt is the total of deposits in T-security accounts at the Federal Reserve Bank. The Federal Reserve Bank has more that $12 trillion in deposits. Many private banks have billions in deposits.

Bank deposits are a sign of strength, not weakness.

Federal “debt” is a myth, promulgated by people whose agenda is to reduce federal spending for the poor and middle classes. Pay no attention to these evil people. Growing federal debt is a sign of strength, not weakness.

Rodger Malcolm Mitchell
Monetary Sovereignty

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Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%

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. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

#MONETARY SOVEREIGNTY

Italy’s and America’s solution: Do more of what has failed.

Italian Prime Minister Mario Monti says more austerity will solve his nation’s recession. Italy’s doom is assured. With the euro nations as a model, American politicians vote for austerity.

Yahoo News
Monti expects to see Italy recovery signs within months
(Reporting By Antonella Ciancio, Writing by Catherine Hornby; Editing by Rosalind Russell)

CERNOBBIO, Italy (Reuters) – Prime Minister Mario Monti said on Saturday he expected it would be only a few more months before signs of recovery start to emerge in the recession-hit Italian economy.

Italy has been in a recession since the middle of last year, weighed down by austerity measures passed by Monti’s government to cut the country’s massive debt, including tax hikes, spending cuts and a pension overhaul.

Unemployment has risen to its highest since monthly records began in 2004 and unions are locked in growing disputes with companies over plant closures and layoffs.

Monti defended the austerity measures, and said he believed his government would be remembered for having helped Italy pull itself out of a deep economic crisis without needing to resort to external aid.

Translation: “Austerity put us into this crisis, so more austerity will pull us out. I know it makes no sense, but isn’t that exactly what the Americans believe? If austerity is good for them, it’s good for us.”

“I hope that one day we can say that thanks to us Italy was not colonized by Europe and it maintained its own dignified sovereignty in an increasingly integrated Europe,” he said.

Translation: “We surrendered our Monetary Sovereignty, but by gosh, we have our ‘dignified’ sovereignty. Understand?”

This week the Treasury raised a record-breaking 18 billion euros through a retail bond sale, which Economy Minister Vittorio Grilli hailed as a sign of a turnaround in perceptions of the country’s debt.

Translation: “Being monetarily non-sovereign, we couldn’t service the debt we had, so we borrowed 18 billion more. Things are getting better.”

The European Commission has proposed making the ECB responsible for supervision as a step towards a banking union in which euro zone countries and any others that want to join would together resolve problem banks and protect savers’ deposits.

“This is another step to accelerate the end of the crisis and to strengthen European governance through a more efficient supervision of banking activities aimed at avoiding contagion risks,” Monti said.

Translation: “The problem is not that the euro nations surrendered our Monetary Sovereignty — the control over our money supply. The problem is not that the euro nations are deeply in debt, yet being monetarily non-sovereign, cannot create the money to pay our debt. The problem is not that our tax increases and spending decreases continue to suck money out of the private sector. No, the problem is that our banks need more supervision.”

There are two, and only two, solutions for the euro nations:

1. Re-adopt their sovereign currencies
or
2. The EU gives (not lends) each nation euros as needed

The EU struggles to patch a broken machine, rather than adopting a new one, while across the ocean, American politicians opt for Europe’s austerity “solution” Both sides wish to do more of what always has failed.

And the people don’t understand.

Rodger Malcolm Mitchell
Monetary Sovereignty

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#MONETARY SOVEREIGNTY

–Part II of Mitt Romney’s infamous 47% rant

The previous post explored the first part of Mitt Romney’s secretly recorded butter-up to his wealthy base — the infamous “47%” rant in which he said that 47% of America think of themselves as victims and only want to receive federal support rather than making it on their own. Here is the last part.

MITT ROMNEY: . . . we have responsibility for the whole world. They (China) are only focused on one little area in the world, the South China Sea, the East China Sea. That’s it. And they’re building a military at a rapid rate.

Translation: “I know so little about international politics I actually believe China is worried only about the South China Sea (or is it the East China Sea? Gee, I don’t know which, but I do know you people love it when I use my China-scare line.)”

ROMNEY: Our Navy’s smaller in number of ships than anytime since 1917. And this president wants to shrink it. The list goes on. Our Air Force is older and smaller than anytime since ’47 when the Air Force was formed. And he wants to shrink it. If we go the way of Europe, which is spending 1% to 2% of their economy on the military, we will not be able to have freedom in the world.

Translation: “Psst, don’t tell anyone, but under Republican G.W. Bush, the number of ships shrank 10%, from 316 to 285, which is where it is now, and the number of planes fell 10%. But, facts never have been my strong suit. Anyway, I want to cut Medicare and Social Security (and Public Broadcasting and deductions for home mortgages and other stuff important to the lower 99% income groups), because we can’t afford them, but I want to spend more on military weaponry, because we can afford it and the rich manufacturers want it.

MITT ROMNEY: We have a website that lays out white papers on a whole series of issues that I care about. And what– I wish we weren’t unionized so we could go a lot deeper than you’re actually allowed to go.

Translation: “If it weren’t for the unions, I could cut even more jobs — my specialty. That would help the middle- and lower-classes, which by the way, are the people in unions. Got it?”

If you go to “Mitt Romney’s Plan for a Stronger Middle Class,” you’ll find his suggestions. Here are a few, with my translations in parentheses:

*Eliminate regulations destroying the coal industry (“The coal industry has such an excellent record for safety, concern for workers and for protecting the environment, we safely can cut regulations.”)

*Give every family access to a great school and quality teachers (“I have no idea how to do this, nor what the cost would be, but it sure sounds nice.”)

*Provide access to affordable and effective higher education options. (“Even I don’t know what this means.”)

*Attract and retain the best and the brightest from around the world. (“So long as they aren’t Mexican or poor, we want immigrants – and so long as they don’t take American jobs, which they all do.”)

*Curtail the unfair trade practices of countries like China (“First, we’ll start a trade war with China. Then we’ll go to war against India, Viet Nam, Mexico, Peru, and all the other countries that provide our middle- and lower-classes with less expensive goods.)

*Reduce taxes on job creation through individual and corporate tax reform. (“When I say ‘reform,’ I really mean we’ll cut taxes on the rich, while we ‘broaden the base’ – my euphemism for: tax more lower income people.”)

*Stop the increases in regulation that are tangling job creators in red tape (“I’m fixated on regulations, because the recession was caused by too much regulation of banks. And of course, we have too much oversight of pharmaceutical companies, car companies, food processors, stock brokers, mortgage providers, commodity brokers, chemical companies, oil companies and . . . you know. Instead, we should regulate China.”)

*Protect workers and businesses from strong-arm labor union tactics (“Percentage of union membership is only half of what it was 30 years ago, but it’s the unions, not the major corporations, that caused the recession. My rich voters love when I bash the unions.”)

*Replace Obamacare with real health care reform that controls cost and improves care. (“Cut benefits, institute vouchers, and call it ‘reform.’ And please don’t remind me Obamacare is the same plan I created for Massachusetts.”)

*Immediately reduce non-security discretionary spending by 5% (“Grow the military, but shrink Medicare, Medicaid, Social Security, road and bridge maintenance, food stamps and every other benefit to the poor and middle classes.”)

*Cap federal spending below twenty percent of the economy (“It’s called ‘austerity.’ I have no idea why or even how I would do this, but my rich voters like the idea of austerity. It’s done really well for Greece, Italy, Spain and Portugal. Love watching those people riot.”)

*Give states responsibility for programs they can implement more efficiently (“‘Responsibility’ is my euphemism for ‘Shift the costs onto the states, which already are broke.’ That’s how I cut spending by a federal government that creates all the money it needs. It’s clever, but what is even cleverer is this: Because the states are broke, they will have to cut the programs, nearly all of which benefit the lower- and middle-classes. And lots of these people will vote for me!”)

Yes, many of the people who will be hurt most by Romney’s policies, plan to vote for him. Why? They feel things are so bad, anything would be better. It’s called, “the-frying-pan-into-the-fire” syndrome.

And that fire will be hotter than anything they can imagine.

Rodger Malcolm Mitchell
Monetary Sovereignty

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#MONETARY SOVEREIGNTY

–There was far more to Mitt Romney’s infamous “47%” rant than you may think

You are familiar with the recording of Mitt Romney denigrating 47% of the population as a bunch of lazy, freeloaders. But that was only a small part of the Romney rant. You can read the entire transcript here.

Meanwhile, here are a few excerpts:

MITT ROMNEY: As I said in my remarks earlier, I see these two very different scenarios. One is– has America really powering the world economy with an extraordinary economy here, with China working with us, wanting to see stability in the world and– a very vibrant America with freedom and prosperity for the great bulk of the American people.

On the other hand, I really do see something like Europe. And I think that’s the path we’re on right now. So that’s why I wanna make sure that what little I’ll have left after the campaigns goes to my– (LAUGHTER) goes to my grandchildren.

Translation: “By some magic, which I will not reveal to you, I will make China work with me. I think we’re on the path to becoming Europe, because they have to cut deficits (austerity) and I want us to cut deficits (austerity), too.” So I’ll put us on the same path.

ROMNEY: My dad, you probably know, was– was the governor of Michigan and was the head of a car company, but he was born in Mexico. And– had he been born of Mexican parents I’d have a better shot of winning this, but he was– (LAUGHTER) unfortunately born of Americans living in Mexico. They’d lived there for a number of years. And I say that jokingly, but it’d be helpful to be Latino.

My dad never had the money or time to get a college degree.

Translation: Unlike you and me – that is, rich and white – the Latinos have everything handed to them. They are part of that 47% I’ll talk with you about – those people who just want to feed off us rich, white people. You know what I’m talking about (wink, wink).”

[Remember that line about his father coming from Mexico and being too poor to go to college. It will mean more, later.]

ROMNEY: Folks who don’t know Elizabeth Warren– she’s the woman who’s running for U.S. Senate in Massachusetts — who said that she’s Cherokee and has put on her application over the years that she’s Cherokee and Harvard put down that she’s one of their minority– faculty members. It turns out that at most she’s 1/32nd Cherokee. (LAUGH) And even that can’t be proven. So– at any event, I mean I could put down my dad was born in Mexico and leave it at that. (LAUGHTER)

Translation: (More wink, wink.) “I’ll insult the Latinos now, because you want to hear that, but later, I’ll tell you how I want the Latino vote.”

ROMNEY: (My wife’s family) got together as a family and said, “You know, to be successful in America you’ve gotta get an education.” And they couldn’t afford an education. And the kids and the parents said, “You know, if we all work and we all save we could afford to send one of us to college.” And they– they sent my wife’s dad. Can you imagine working every day, taking a couple of jobs and saving your money so that your brother could go to– I mean I would never do that for my brother. (LAUGHTER)

Translation: See how humble I am? I even tell you how selfish I am. I know how selfish you all are, so you surely you must love selfish people — like me.

ROMNEY: I look forward to getting America back on track and having people plan on bringing their their ideas and their dreams to this country. We need big dreamers, by the way.

I’m just we didn’t talk about immigration today, but gosh I’d like to bring in more legal immigrants that have skill and knowledge. I’d like to staple a green card to every PhD in the world and say, “Come to America. We want you here.” Instead we make it hard for people who get educated here or elsewhere to make this their home.

Unless, of course, you have no skill or experience, in which case you’re welcome to cross the border and stay here (LAUGH) the rest of your life.

Translation: “I come from poor, humble roots, but I don’t want any more poor, humble people coming here. I only want PhD’s, or people who are rich enough to afford college. And we should make an easier path to citizenship for those rich, educated people, but not for the rest, even though, as I now say, ‘My campaign is about the 100%.’”

MALE VOICE: The debates are gonna be coming and I hope at the right moment you can turn to President Obama, look at the American people and say, “If you vote to reelect President Obama you’re voting to bankrupt the United States.” I hope you keep that in your quiver, because that’s what’s gonna happen.

MITT ROMNEY: Yeah. Yeah. There’s– the former head of– Goldman Sachs, John Whitehead– was also the former head of the New York Federal Reserve and– and I met with him and he said, “As soon as the Fed stops buying all the debt that we’re issuing–” which they’ve been doing. The Feds buy like 3/4 of the debt that America issues.

He said, “Once– once that over– that’s over,” he said, “we’re gonna have a failed Treasury auction. Interest rates are gonna have to go up. You know, we’re we’re living in this borrowed– fantasy world where– where the government keeps on borrowing money.” You know, we– we borrow this extra trillion a year. We wonder, “Well, who’s– who’s loaning against the Treasury? The Chinese aren’t loaning to us anymore. The Russians aren’t loaning it to us anymore. So who’s giving us a trillion?“

Translation: “The Fed is buying all the debt we’re issuing. So where are they getting the money to buy that debt? Hmmm. . . wait, I know.”

ROMNEY: And the answer is we’re just making it up. The Federal Reserve is– is just taking it and saying, “Here, we’re giving–” it’s just made up money. And– and this– this does not augur well for our economic future. No. I mean some of these things are complex enough it’s not easy for people to understand, but your– your point of saying bankruptcy usually concentrates the money.

Translation: “Don’t tell anyone this, but I actually do understand and agree with Monetary Sovereignty. The federal government just makes up dollars. It doesn’t need to tax. It doesn’t need to borrow, especially since the Fed buys nearly all the debt.

However, I don’t want you to know my ‘concern’ about deficits is a bunch of hogwash. As usual, I’ll tell you only what you want to hear, and of course, take both sides of every issue.

MITT ROMNEY: . . . if you take the total national debt and the unfunded liabilities of Medicare, Social Security and Medicaid, the amount of debt plus unfunded liabilities per household in America is $520,000. Per household. Ten, 12 times their income. And even though we’re not gonna be writing a check for that amount per household, they’re gonna be paying the interest on that– it’s extraordinary to think that tax rates– someone calculated what would happen if we don’t change Medicare or Social Security, the tax rate– you know what the payroll tax is now? It’s 15.3%. If we don’t change those programs that tax rate will have to ultimately rise to 44%.

Translation: “We have to cut Medicare and Social Security – two programs that benefit the lower 99% most. And even though I just said that the federal government is just making up money, we still have to raise FICA to pay for Medicare and Social Security. Don’t ask me what happens to that made up money.

The payroll tax. Then there’s the income tax on top, which the president wants to take to 40%. Then there’s estate tax in most states and– sales tax and so forth. You end up having to take 100% of people’s income. And yet the president, three and a half years in, won’t talk about reforming Social Security or Medicare.

Translation: “Of course, I only pay 14%, and I got it that high by temporarily not claiming a couple million dollar deduction for charity. After the election, I send in an adjust return, and get my rate down to 10%. That’s almost 100%, isn’t it?

‘Reforming’ Social Security and Medicare is my euphemism for cutting the hell out of them. But I never will admit that’s what I want to do.”

ROMNEY: We should have been aggressively supporting the voice of the dissent in Iran. And when there was an effort towards revolution there we should have been aggressively supporting it. And, finally, we should have made it clear, at least by now, that we have military plans to potentially remove their– their nuclear capabilities.

Translation: “As always, I have no plan for sending soldiers into Iran, without killing thousands of Americans, but I like to sound tough.”

ROMNEY: That doesn’t mean we actually pull the trigger, but it means that we communicate to them that we’re ready to– to do so. And that it is unacceptable to America to have– a nuclear Iran. Instead, what this administration has done is communicate to the Iranians that we’re more worried about Israel attacking them than we are about them becoming nuclear.

Translation: “Threaten them, but don’t actually do anything, so the next time we threaten, they’ll know we’re just bluffing. Who says I don’t have a plan?”

MITT ROMNEY: I saw Dr. Kissinger. I said to him– “How are we perceived around the world?” And he said, “One word, veek.” (LAUGHTER) We are weak. And– and that’s has this president is perceived– by our friends and– and– and– and unfortunately by our foes.

And it’s no wonder that Kim Jong-on– the new leader of North Korea, announces a long range missile test only a week after he said he wouldn’t. Because it’s like, “What’s this president gonna do about it?” You know, if you can’t act, why don’t threaten. Please.

Translation: “Uh, I forgot that 30 seconds ago I said, ‘That doesn’t mean we actually pull the trigger, but it means that we communicate to them that we’re ready to do so.’ And now I say, ‘. . . if you can’t act, don’t threaten. Please.’ But so what? I always take both sides of every issue – so I don’t miss anyone.

“Bottom line: My father succeeded, despite coming here poor and without college, but we don’t want to let in any more of those people. I have a plan to make China work with me, but I won’t tell you what it is. Though Latinos are among our poorer people, they get everything handed to them. But I’m for 100% of Americans.

The government has the unlimited ability to create dollars, and the Fed is buying all our debt, but the deficit and debt are unsustainable. I plan to cut Medicare and Social Security, while denying I plan to cut Medicare and Social Security. We should threaten Iran, but do nothing, even though if you can’t act, don’t threaten.

And can you imagine, some people say I don’t have any specific plans? Wrong. I have one, very specific plan: Tell you what you want to hear, so you’ll give me money and vote for me.

Pretty good plan, huh?”

The second part of the tape will be discussed shortly.

Rodger Malcolm Mitchell
Monetary Sovereignty

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#MONETARY SOVEREIGNTY

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