Mitchell’s laws:
●The more federal 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.
●The penalty for ignorance is slavery.
==========================================================================================================================================

Those who understand economics are aware of this, very simple fact: The U.S. federal government, being Monetarily Sovereign (since August 15, 1971), never can run short of its sovereign currency, the dollar.

Congress never needs to ask anyone for dollars – not you, not me, not China. The government never needs to ask us for tax dollars, and never needs to beg China for borrowed dollars. So, no amount of deficit or (misnamed) “debt” is “unsustainable.”

Further, being Monetarily Sovereign, the federal government has the unlimited ability to set the value of the dollar, so it is no accident that inflation continues to hover near the Fed’s desired rate of 2% – 3% per year. The U.S. government is the absolute sovereign over the dollar.

For the past 15 years, I have struggled to make this concept so clear even a child could understand it. Others have struggled even longer. Yet after all this effort, not one person in a thousand has learned this basic idea.

Attempts to educate the politicians, the media, the mainstream economists and the public have failed. In previous posts ( The Obama conspiracy dance continues. Hope you’re enjoying the show) and ( Revealing the conspiracy: A recommendation for followers of MMT and Monetary Sovereignty) I have explained how the ultra-wealthy, the .1%, has spent billions to bribe politicians, control the media, intimidate the economists and brainwash the public about our economy.

The key to their success is in getting the public to do the dirty work of misinformation. The public has been taught not only to scorn the government, but to scorn those of the 99.9% who receive any sort of benefits – from the government or from business.

Receive a pension? You’re scorned. Receive food stamps: Scorned. Housing assistance, Medicaid, do you march for social justice? Scorned. It has come to the point where my suggesting increased federal help for anyone, immediately invites the rejoinder that people receiving assistance will become sloths, and then “who will pick up the garbage.”

Just as dictators teach their soldiers to kill their own neighbors, the .1% has taught the 99.9% to hate anyone asking for more. Consider unions. Many Americans hate unions, simply because unions demand a minuscule fraction of what the .1% already has.

National Memo

Koch Brothers Win, Democracy Loses: Michigan Passes ‘Right To Work,’ Governor Will Sign
December 11th, 2012, Jason Sattler

Without one hearing or any public comment in the midst of a lame-duck session after an election where Republicans lost five seats in the State House and their presidential candidate lost the state by 9.5 percent, Republicans in both Michigan’s House and Senate have passed so-called ‘right to work’ legislation.

Republican governor Rick Snyder, who campaigned as a moderate and continually said that ‘right to work’ was not on his agenda now, says he will sign the legislation.

Thus Michigan will become the 24th state in the union to pass legislation that bars unions from automatically collecting dues from all employees covered under a collective bargaining agreement. This highly symbolic move to strike at the heart of unions in the state where unionized auto workers helped create the middle class would not be possible without the support of multi-billionaires, specifically the Koch brothers and Rich DeVos, founder of Amway.

I now will hear from those brainwashed by the Kochs and DeVos of the world, reciting the transgressions of unions – as though the super rich do not transgress. That union guy who gets paid a couple dollars an hour too much for doing too little work — he is the criminal. The Kochs and DeVos, who are paid billions for traveling the world in private jets – they have “earned” their sloth.

Who says so? You of the 99.9% say so.

The bill that Snyder will sign is nearly identical to model legislation written by Koch-funded group American Legislative Exchange Council. Another Koch-funded group, Americans for Prosperity, has been advocating for the legislation, reportedly pressuring lawmakers including Senate Majority Leader Randy Richardville, who had previously refused to support the anti-union measure.

How do they “pressure” It’s spelled M-O-N-E-Y. The Kochs et al, have more than do the unions, and the Supreme Court has given free rein to the .1%, to spend, spend, spend.

A group calling itself “Freedom To Work” has deluged Michigan’s TV airwaves in support of the legislation, arguing that the bill would both create jobs and “protect collective bargaining.” According to state rep. Brandon Dillon, Freedom To Work is funded by Amway’s DeVos

Yes, protecting collective bargaining is the primary concern of Rich (appropriate name) DeVos. You believe that, don’t you?

Longtime Michigan political advisor Dana Houle (says): “Don’t anyone think that passing ‘right to work’ in Michigan is about economics, about jobs, about business,” Houle said. “It’s about wiping out the political and electoral power of unions so they can’t stand in the way of Dick DeVos electing apparatchiks who will enact his radical religious-right and anti-public schools agenda.”</blockquote>

And, the public — 99.9% of it — is all for cutting the power of . . . the 99.9%. The public often is for outrages committed against their neighbors. Dictators count on it.

Outside the Capitol, thousands of union supporters protested and several were hit with pepper spray, including former congressman Mark Schauer.

Ah, the police. Solid members of the 99.9%, always ready to do the bidding of the .1%, while the public applauds. Those protests are so messy. Better to have nice clean cuts in employment, salaries, pensions, medical care, education and housing for the poor. I mean, we all hate big government handouts — oh, except those tax handouts given to Mitt Romney and other mega-rich folks.

Have any of you police, you of the 99.9%, have you pepper-sprayed the Koch brothers or their unsavory political allies? If not, why not? The Kochs and the right wing politicians are the ones stealing dollars from your pockets.

Or would you rather pepper spray a union member?

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================

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

Mitchell’s laws:
●The more federal 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.
●The penalty for ignorance is slavery.
==========================================================================================================================================

In case you don’t believe there is a conspiracy to widen the income gap, or you just hate the word “conspiracy,” consider “Fix the Debt.” It is a gang of rich guys, plus bought-and-paid-for, politicians, all dreaming up ways to screw you.

Here is what the notorious Committee for a Responsible Federal Budget says:

Fix the Debt Holds Event on Health Care and Taxes

On Tuesday, the Fix the Debt Campaign held an event on ways to reform the tax code and health spending. The event included speeches from Sen. Rob Portman, NEC director Gene Sperling, and Senate Finance Committee chair Max Baucus, along with many other experts from across the political spectrum. Panelists discussed how health care spending should be reined in and what the best ways to reform the tax code.

Translation: “Across the political spectrum” means the “wealthy and the toadies of the wealthy.”

“Reined in” means cut your health care.

“Reform” means “broaden the tax base” which in turn means “tax the middle and bottom more, and tax the top less.”

Unfortunately, the lower 99% income group has fallen for the Big Lie of the upper 1%, so will continue to pay an ever higher price for their ignorance.

And here comes the President, still pretending to be a friend of the 99%:

Yahoo News
By Mark Felsenthal | Reuters

In his weekly radio address, the President renewed his call for Republicans to extend middle-class tax cuts while letting tax rates go up for the wealthy. He also said he would be willing to find ways to bring down healthcare costs and make additional cuts to government social safety-net programs.

Translation: “Bring down healthcare costs” means take money from doctors, hospitals, and the pharmaceutical companies -– i.e from the economy -– and transfer it to the government, which has neither need nor use for it, but merely destroys it upon receipt.

“Additional cuts to government social safety-net programs” means . . . well, you know what that means: Steal dollars from the pockets of the lower income groups.

The President continued:

“We can and should do more than just extend middle-class tax cuts,” he said. “I stand ready to work with Republicans on a plan that spurs economic growth, creates jobs and reduces our deficit – a plan that gives both sides some of what they want.”

Translation: “I stand ready to work with the 1% to remove dollars from the economy, i.e. austerity, which will slow the economy and increase unemployment.

“I know this never has worked in the history of the world, because mathematically reducing the money supply cannot stimulate an economy. But you don’t know that, so you will buy into it and suffer for your ignorance, while the 1% will laugh and laugh, all the way to their (overseas, tax sheltered) banks..

Republicans have balked at tax rate increases, which they say would hurt small businesses and brake economic growth.

Translation: “Actually, the Republicans are right. Any increase in tax collections, by definition, removes money from the economy. So yes, a tax on the rich, or on the poor, hurts small business – also hurts big business and middle-size business. All taxes hurt business.

“However, let’s face it. The 1% seldom pays the top tax rate. They are too smart for that. Ask Warren Buffett, whose top tax rate is lower than his secretary’s (probably lower than yours, too.) But, by insisting on an increase in the top tax rate, I cover my butt with my constituents, who think I am working for them, while the 1% knows this is all a charade.

“Boehner knows the truth, too, but he is dancing with me, so he can cover his butt with his constituents. Eventually there will be a cosmetic increase in the top tax rate and a huge reduction in social spending, creating a big decrease in the federal deficit. Together that will punish everyone except the 1%, who will reward all us politicians for widening the income gap.

“Meanwhile, the public will applaud at how I’ve struggled to save the economy.

“I hope you are enjoying my show.”

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================

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

Mitchell’s laws:
●The more federal 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.
●The penalty for ignorance is slavery.
==========================================================================================================================================

The previous post described the upper .1% income group’s conspiracy to widen the income gap by claiming the “Big Lie,” that the U.S. is in financial trouble, and must embrace austerity, i.e. cut deficits, or become insolvent. Several people have written to express discomfort with “conspiracy theories” in general, feeling they have a bad name and any such talk reduces credibility.

For those reluctant to discuss any conspiracy, remember Sherlock Holmes’s line, “When you have eliminated the impossible, whatever remains, however improbable, must be the truth”.

It is impossible that neither Obama nor Bernanke, nor Greenspan, nor Geithner, nor all of the bankers and economists at the Fed and the Treasury, nor any of their highly educated and experienced assistants and associates, nor any of the 535 members of Congress — not one of them — understands the U.S. cannot run short of dollars. Simply impossible.

Yet none admit it, except on the rarest of occasions. So we are left with a conspiracy, however improbable some may think it is.

And when you have a conspiracy, you need a motive. I can think of two:
1. To benefit the .1% by widening the income gap between the .1% and the 99.9%.
2. To prevent endless voter requests for increased federal spending, supposedly leading to inflation, i.e. the easily countered, debt-hawk, “Weimar Republic” excuse.

Both have a role, though #1 surely is the more important. The .1% continuously demonstrate their motive by funding “think tanks” that invent the Big Lie, by funding politicians who vote the “Big Lie,” and by funding the news media that promulgate the Big Lie. The Kochs et al do not spend their valuable time and political millions for altruistic reasons.

Intuition is powerful. Brainwashing is powerful. And well-funded conspiracies can be quite powerful. Together they can be more effective than the simple truth. But, conspiracies prefer the dark. They melt in the sunlight. To defeat this conspiracy, we first must acknowledge it, then reveal its members and display their motives and their victims.

We have three weapons in this war: The populace already is predisposed to hate the rich and the politicians, so correctly attaching these two despised groups to this conspiracy, gives us an opening. Further, the populace loves a good scandal. And finally, what Monetary Sovereignty describes and proposes will benefit the populace.

We have not succeeded, nor will we ever succeed, using economics education, alone. We must teach both the economics and the conspiracy. That combination will provide the powerful, compelling story for the populace, needed to overcome the many years of intuition, brainwashing and conspiracy.

Today, America suffers. Europe fades. The Big Lie is kills the world. Austerity is the universal poison.

So, our every article, our every speech, our every letter and every interview must contain both the economics and the conspiracy truths.

Teach the economics. Reveal the conspiracy. Save the world.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================

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

Mitchell’s laws:
●The more federal 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.
●The penalty for ignorance is slavery.
==========================================================================================================================================

In the past day or two, I’ve been involved in a Facebook discussion about the federal deficit. The discussion began when Stephanie Kelton (Chair of the economics department at the University of Missouri, Kansas City) and I were talking about her frequent efforts to educate regarding MMT and Monetary Sovereignty.

I wrote to Stephanie,

Good work with your continuing efforts to educate the public. Unfortunately, we’re working against misinformation spread by upper .1%, which funds our political leaders, and wants the income gap to widen.

It is 100% impossible that the Obamas, Geithners and Bernankes of the world do not understand Monetary Sovereignty. They understand, but they are paid by the .1% to fool the public.

I mention this, because it should be an important part of our message to the public. People ask me, “Why do you know this and our leaders don’t.” The implication is that I must be wrong. My response: “They know it, but don’t want you to know it.”

The people need an enemy, and that enemy is the .1%. Without an enemy, you can talk yourself blue, and no one will listen. That’s why religion has a devil, and that’s why the preacher always talks about the devil.

My suggestion: Every time you talk about the economy, explain the motive for federal “misunderstanding.” The .1% want the income gap to widen. If we all would do that, we could change the world.

She responded:

Rodger, I am mostly in agreement. I often tell stories that show this to be the case (albeit not in every interview or presentation). The one I like best is the Clinton-Eisner story. Robert Eisner had been Clinton’s teacher. When C was in office, he invited E to the White House, where he asked E what he thought of his economic policies. E responded, “Not bad, but you’ve got to know you’re dead wrong on SocSec.” [C talked about using the surplus to shore up SocSec, etc. E had written quite a bit on SocSec — my personal favorite was called Save Social Security from its Saviors.”] C responded, “I know, Bob. But you’ve got to understand — this is politics.”

I tell similar stories about conversations with lawmakers, including one with the chairman of the congressional black caucus, who listened to Warren and I explain government finance for about an hour and then looked at us and said, “I can’t say that.” Not “I don’t agree with that” or “you are wrong,” but “I can’t say that.”

Still, I think there are people like Bernie Sanders who genuinely believe that the government has to get the money from “somewhere” and that it really is not all that different from a household (except, perhaps, that it can remain solvent longer than you or I).

Then I responded to her:

Understood. They really may believe they can’t say it, or they may say they believe they can’t say it.. But you can say it. I can say it. Warren and Randy can say it. We all can say it. And we should say it and keep saying it as a fundamental part of our explanations.

People are more apt to believe if they not only see the logic, but understand why they’ve been told lies and who has been telling those lies. What we’ve been doing so far, hasn’t made much of an impact on the public. The people need a devil. We have to give them a devil.Religion has devils to convince the populace. It’s the only way we’ll undo the brainwashing by the .1%.

At that point, someone else joined the conversation. He objected to sounding “conspiratorial and having little evidence to back it up,” and “would avoid motives.”

I replied:

So you believe that President Obama and all his educated advisers, and Secretary of the Treasury, Tim Geithner and all his educated advisers, and Fed Chairman Ben Bernanke and all his experienced bankers, and all 535 members of the U.S. Congress, really do not understand that the U.S. is not running out of money? None of them?

You believe that Bernanke, the inventor of the “fiscal cliff” slogan, and all of the above experts, really do not understand that deficit reduction hurts the economy?

And despite our many years of trying to point out ignorance — an effort which has resulted in the above experts still “not understanding” and the vast majority of Americans also not understanding — you feel that educational effort, which has failed miserably, should continue as before?

And you believe the fact that all of the above educated people, specialists in their field, somehow cannot seem to grasp a concept so simple as Monetary Sovereignty — you feel that does not constitute evidence?

And you believe that sounding conspiratorial is reason enough not to say it . . . because if we say it, we might not be believed . . . just as we have not been believed all these years? (Was it Einstein who said, “Madness is doing the same thing over and over again, and expecting different results”?)

The question is: Why do they pretend not to understand? The answer: They are paid not to understand.

Who is paying them? The upper .1% income group.

How are they paid? Via political contributions.

Why are they paid? To increase the gap between the rich and the rest. Cutting the deficit increases the gap, because most federal spending benefits the lower income groups.

Why do the rich want the gap increased? The rich don’t care about absolute dollars. They care about comparative dollars. If everyone had a million dollars, no one would be considered rich. But if one person has a million, and everyone else has a quarter million, one person is rich. And if everyone else has a thousand dollars, that one person is very rich.

The more the .1% can press down the lower classes, the “richer” they will feel. So they spread the myth that deficits are too high.

For people to change beliefs, they need to understand the motive for the lie.

There is a conspiracy, and when that story is told, the public finally will accept that they have been brainwashed, why and by whom, and then — only then — will they be ready to accept Monetary Sovereignty.

We must do more than educate. We must tell people why they should be angry. We must tell them why they should be afraid. That is the only way they will be ready to accept a new idea.

Anger and fear are our strongest emotions. To effect changes in the brainwashed, we need to use those strongest emotions. Religion uses devils, anger and fear.

Or we can just keep doing what we have been doing, failing as we have been failing, and attributing it to ignorance. And we will be right. Our ignorance.

Shortly afterward, I followed up with:

there is one additional reason why the leaders lie to us, and it too has nothing to do with education, and will not be cured by education: They don’t trust us to use the information, properly.

They think, if the populace understood Monetary Sovereignty, the people would demand all sorts of free things, and this not only would close the gap (horrors!), but also could cause inflation. They think Congress would not be able to resist the calls for help, and so would spend uncontrollably.

The fault with that sort of thinking is that Congress always has the perfect bogeyman: Inflation. All Congress needs to say is, “We are in an inflation we can’t control by other means, so we have to level off our spending.” Done. Bernanke could name it the “Inflation cliff.”

Of course, that would happen many years down the line, after we have free Medicare for all, free schooling for all and a Social Security that pays an living benefit.

But the rich would hate it. How would they prove they are rich?

So that is how the rich are screwing you — by bribing and threatening our leaders with political support or non-support. How can you fight back?

Short of picking up pitchforks and torches, you can pick up paper and typewriter. You can contact your local newspaper and your national politician. You can tell them you know that the government cannot run short of dollars, and that it could provide free Medicare for everyone, and a living Social Security benefit, and eliminate FICA — all while cutting taxes.

You can tell the politicians, if they vote for these things, you’ll vote to keep them in office, but otherwise you’ll vote against them. And tell your newspaper you know about Monetary Sovereignty, and what they are publishing is bullsh*t, and you’ll keep writing until they come clean. Teach them anger and fear.

You can start or join a group that protests against austerity, i.e. cuts in social spending, cuts to the deficit and any tax increases. March in the streets. Tell one coherent story. “NO TO AUSTERITY. NO TO BUDGET CUTS. NO TO TAX INCREASES. NO TO LIES.”

Get angry. Cause fear among the politicians.

The rich are doing it to you. They rely on your lethargy and passivity. They depend on your being sheep. So far, they have been right.

Extreme right.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================

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