Mitchell’s laws: Reduced money growth never stimulates economic growth. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity breeds austerity and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
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See how euro Europe formalizes the self-mutilation of the truly insane, by agreeing to make economic growth a crime.

Sarkozy, Merkel call for mandatory deficit limits for Euro zone countries

PARIS — Under growing pressure from nervous financial markets, the leaders of France and Germany reached a compromise agreement Monday to seek mandatory limits on budget deficits among debt-laden European governments.

The limits–a “golden rule” of 3 percent of Gross Domestic Product–would be enforced by leaders of the European Community, according to explanations provided by President Nicolas Sarkozy of France and German Chancellor Angela Merkel at a joint news conference here.

Governments whose debts exceeded three percent of their GDP would be cited by the European Court of Justice, after which a super-majority of 85 percent of European governments would have to agree to impose some sort of sanction against the offending country.

Austerity, not economic growth or citizen well-being, now will become the official policy of the euro nations.

The new rules would be part of a renegotiated European Union treaty that is to be completed by March and ratified two months later, Sarkozy and Merkel said. The speeded-up calendar is designed to show global financial markets that the 27-nation European Union is serious about bring its debt problem under control once and for all.

“Once and for all”? Get real. When austerity has the 99% raging in the streets, that “once and for all” will turn into, “How do we get out of this mess?”

The Franco-German accord is to be outlined in a letter to European Union leaders Wednesday and voted on at a special summit conference Thursday. Sarkozy said the hope is that all 27 nations will adhere to the plan. But he added that it could also move forward with consensus from only the 17 countries that use the euro as their common currency.

They even want the Monetarily Sovereign nations to join in this foolish plan. Those are the nations that could pay off all their debt tomorrow if they chose, but are being sucked into the euro ignorance. Misery loves company.

Merkel hinted before the meeting that Germany will insist on sanctions for spendthrift governments, and other moves to instill fiscal discipline, in exchange for any decision to make more funds available to countries that have run so deeply into the hole that they can sell their bonds only with excessively high interest rates. In other words, she wants other European countries to run their economies more like Germany does.

Oh sure, enforce German discipline on Italy and France. That should be interesting. One tiny problem. The Germans succeed because they are net exporters. Getting all the euro nations to be net exporters should be an interesting exercise in mathematics.

Many inside Germany argue that German Chancellor Angela Merkel is simply holding out to put as much pressure for reforms on laxer Southern European countries as possible. Already Italy has implemented austerity measures, Spain has passed a constitutional amendment to limit its debt, and Greece has sworn to crack down on tax scofflaws — changes that seemed unthinkable just a year ago.

Since WWII went badly for Germany, perhaps she belatedly can win the war by forcing the rest of Europe into austerity.

The problem is not that the euro nations spend too much or tax too little. What the EU leaders term “profligate,” i.e. running deficits, is the only way to grow an economy. The problem is that they are not Monetarily Sovereign.

As I have said, seemingly forever: There are two, and only two, long-term solutions for euro nations:

1. Return to Monetary Sovereignty
or
2. The EU to give (not lend) euros to member nations as needed.

There are no other long term solutions.

Meanwhile, stare in amazement, as the euro nations continue to saw off pieces of themselves – the self mutilation of the truly insane. Oops. Our own Congress and President are trying to do the same to us.

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

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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
b>Gross Domestic Product = Federal Spending + Private Investment + Private Consumption + Net exports

#MONETARY SOVEREIGNTY

Mitchell’s laws: Reduced money growth never stimulates economic growth. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity breeds austerity and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
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The 1% steps up its efforts to brainwash you. Are you falling for it?

What do these Chicago Tribune men have in common: *Tony W. Hunter, Publisher; *Vince Casanova, President; *Gerould W. Kern, Editor; *R. Bruce Dold, Editorial Page Editor

Answer: Unless the Tribune is especially miserly, these men all are part of the upper wealth classes (aka the “1%”), and here is what they wrote on 12/3/11:

Think big – before it’s too late
For lack of bold actions, we’re choking on debt and yearning for growth.

Notice how “big” and “bold,” both positive words in the American lexicon, cleverly are used to describe efforts to cut back and reduce the masses to austerity. (The 1% never experience austerity.)

Their words form lie #1. The federal government, being Monetarily Sovereign, cannot “choke” on its debt. It could eliminate all T-securities (aka “debt”) tomorrow, simply by crediting the bank accounts of T-security holders, which the federal government uniquely has the power to do.

Even the word “debt” is a lie of sorts, because so-called federal “debt” actually is a measure of our money supply, and there is no way we are “choking” on our money supply. Quite the opposite, we are starved for money. The “debt” should be much larger. The Tribune’s “big, bold” plan is to starve us further.

Lie #2 is the implication that reducing the debt would enable economic growth. As you can see from the following graph, the exact reverse is true. Reductions in “debt” (money) growth inevitably lead to recessions, while “debt” (money) growth gets us out of recessions.

. . . as the nation lurches toward fiscal disaster. Congress is wrangling to extend a payroll tax break and unemployment benefits . . .

Lie #3 is the implication that benefits coming to you in the the middle and lower classes (the 99%), will cause some sort fiscal disaster. In the Tribune’s world, the richest 1% are entitled to their wealth, but heaven forbid any money flow to the rest of you.

The U.S. lost its AAA credit rating over the summer.

That’s lie #4, by omission. The credit rating was established by the 1%-owned agency that gave AAA ratings to worthless mortgage securities, which helped cause the recession. This agency wants to scare the 99% into cutting their own financial throats.

But credit rating is based on ability and willingness to pay, and the U.S. has both the unlimited ability and the willingness (barring efforts by the Tribune, et al). No federal check ever has, or ever will, bounce. The phony credit rating is scare-mongering at its worst.

The future is mortgaged, the nation’s youth sold out.

Another lie, #5, by implication. Our Monetarily Sovereign government has no difficulty servicing its debt, taxes do not pay for the debt, and the nation’s youth do not owe the federal debt. So, what does “the future is mortgaged” mean? No one knows. Just lying scare words.

But I’ll tell you what does sell out our the nations youth: Reductions in Social Security and Medicare – reductions the 1% wish to foist on the population. That’s money our children and grandchildren never will see, because the wealthiest don’t want you to have the power money brings.

Take away tax deductions for mortgage interest. Jack up the retirement age for Social Security.

These are just a few of the efforts the Tribune supports. Notice, there is no effort to take away the tax deductions for corporate interest. Oh, no. That would affect the 1%. But eliminating the mortgage interest deduction, and reducing Social Security, both depended upon by the middle class, that’s “big” and “bold” in Tribune-speak.

After months of talks, the bipartisan team of lawmakers failed to reach a deficit reduction agreement with the modest goal of cutting only $1.2 trillion over 10 years – a minor fraction of the expected deficits . . . Put this nation back on track. Think big.

When the Tribune says, “Think big,” it actually means to cut the money supply, not by $1.2 trillion but by $4 trillion, most of that coming from Social Security, Medicare and Medicaid, lifelines for the 99%. That $4 trillion is not a “minor fraction” of anything. It’s dollars coming right out of your pocket.

If the idea is to wait until the 2012 election before acting, we’re appalled. Every wasted minute puts Americans and their government deeper in the hole. The same hole in which several vastly overspent, overborrowed people and governments of Europe already wallow.

This is the whopper of whoppers. Lie #6: Americans are “in the hole” specifically because their government is not enough “in the hole.” Remember this equation:

Federal Deficits – Net Imports = Net Private Savings.

It says, very simply, that increasing Federal Deficits increases Net Private Savings. This is not theory or even hypothesis. It is a basic accounting fact of federal financing. So if you want your savings reduced, as the Tribune does, then reducing federal deficits is the path.

Lie #7 makes the faulty comparison between the monetarily non-sovereign European nations versus the Monetarily Sovereign United States. The former cannot create their sovereign currencies, so for them, debt is a burden. The U.S. can create its sovereign currency, so for our government, debt is no burden whatsoever. So-called “debt” is our money supply. The Tribune’s comparison is more dishonest than apples / oranges. It’s apples / anthrax.

I am ready to give up on the notion that the Tribune is ignorant. I have contacted them dozens of times, including specific correspondence with Bruce Dold. Not only does he not get it, he refuses to discuss it in substance. Since no one in his position could be that stupid, I am beginning to believe his ignorance is intentional.

Money is power. As probable members of the 1%, the Tribune executives not only seems willing, but anxious, to keep the lower classes down, so their upper class will have more power over you. In short, they seem willing to hurt America for their own personal gain – the definition of a traitor.

I award the Chicago Tribune three traitor images.

And fear not, Tribune. You keep printing lies and I’ll keep awarding you traitor images. I never will run short. I never will “choke” on them. I, like the U.S., am sovereign.)

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

==========================================================================================================================================
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
b>Gross Domestic Product = Federal Spending + Private Investment + Private Consumption + Net exports

#MONETARY SOVEREIGNTY

Mitchell’s laws: Reduced money growth never stimulates economic growth. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity breeds austerity and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
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Most of my posts begin with “Mitchell’s laws,” one of which is: Austerity breeds austerity and leads to civil disorder. The term “civil disorder” is a euphemism for police brutality, including torture and even killings. And it’s happening right here in innocent America.

In the post “How the 1% turns the 99% against itself and makes us into dogs,” I described how the media and politicians brainwash you into believing #Occupy Wall Street (#OWS) is a gang of childish, ignorant rowdies, who deserve neither attention nor respect.

The fact that #OWS is fighting on behalf of the 99% is not completely understood by the very people who would benefit most – including the police themselves. Also, not understood, is the power being unleashed by the 1%, not just against the protesters, but against all of you.

The truly great blog, “naked capitalism” posted the following account. See if it reminds you of what happens in nations run by vicious dictators:

While people are now beginning to learn that the police attack on Occupy LA was much more violent than previously reported, few actually realize that much—if not most—of the abuse happened while the protesters were in police custody, completely outside the range of the press and news media. And the disgraceful truth is that a lot of the abuse was police sadism, pure and simple:
* I heard from two different sources that at least one busload of protesters (around 40 people) was forced to spend seven excruciating hours locked in tiny cages on a Los Angeles County Sheriff’s Dept. prison bus, denied food, water and access to bathroom facilities. Both men and women were forced to urinate in their seats. Meanwhile, the cops in charge of the bus took an extended Starbucks coffee break.
• The bus that I was shoved into didn’t move for at least an hour. The whole time we listened to the screams and crying from a young woman whom the cops locked into a tiny cage at the front of the bus. She was in agony, begging and pleading for one of the policemen to loosen her plastic handcuffs. A police officer sat a couple of feet away the entire time that she screamed–but wouldn’t lift a finger.
• Everyone on my bus felt her pain–literally felt it. That’s because the zip-tie handcuffs they use—like the ones you see on Iraq prisoners in Abu Ghraib—cut off your circulation and wedge deep through your skin, where they can do some serious nerve damage, if that’s the point. And it did seem to be the point. A couple of guys around me were writhing in agony in their hard plastic seats, hands handcuffed behind their back.
• The 100 protesters in my detainee group were kept handcuffed with their hands behind their backs for 7 hours, denied food and water and forced to sit/sleep on a concrete floor. Some were so tired they passed out face down on the cold and dirty concrete, hands tied behind their back. As a result of the tight cuffs, I wound up losing sensation in my left palm/thumb and still haven’t recovered it now, a day and a half after they finally took them off.
• One seriously injured protester, who had been shot with a shotgun beanbag round and had an oozing bloody welt the size of a grapefruit just above his elbow, was denied medical attention for five hours. Another young guy, who complained that he thought his arm had been broken, was not given medical attention for at least as long. Instead, he spent the entire pre-booking procedure handcuffed to a wall, completely spaced out and staring blankly into space like he was in shock.
• An Occupy LA demonstrator in his 50s who was in my cell block in the Los Angeles Metropolitan Detention Center told us all about when a police officer forced him to take a shit with his hands handcuffed behind his back, which made pulling down his pants and sitting down on the toilet extremely difficult and awkward. And he had to do this in sight of female police officers, all of which made him feel extremely ashamed, to say the least.
• There were two vegetarians and one vegan in my cell. When I left jail around 1:30 pm, they still had not been given food, despite the fact that they were constantly being promised that it would come.
• There were 292 people arrested at Occupy LA. About 75 of them have been released or have gotten out on bail, according the National Lawyers Guild. Most are still inside, slapped with $5,000 to $10,000 bail. According to a bail bondsman I know, this is unprecedented. Misdemeanors are almost always released on their own recognizance, which means that they don’t pay any bail at all. Or at most it’s a $100.
• That means the harsh, long detentions are meant to be are a purely punitive measure against Occupy LA protesters–an order that had to come from the very top.

Is this the America you know and love? Is this the America you want?

The battle exists because the phony “debt crisis” is forcing austerity on you, and you are buying into the myth. No, Social Security should not be reduced; it should be increased. Same for Medicare, Medicaid, R&D, support for education, housing, the infrastructure and the other programs that support the neediest of us.

The need for austerity is a lie. Those who glibly tell you the government “is broke,” and “can’t afford” to pay for these services, or that spending cuts are “prudent” or that spending will cause inflation, are lying to you, and doing the dirty work of the 1%. (Disclosure: I am part of the 1%.)

Comparisons with the Weimar Republic are bogus. Federal financing comparisons with personal, kitchen-table financing are fraudulent. The federal government is nothing like you and me. It’s not even anything like your state, county or city, though exactly the same incorrect words are used to describe federal financing as your financing.

The “super committee” was a charade to give credence to a false idea, namely that the federal deficit and debt are too high. The deficit is too low and the debt could be eliminated, tomorrow.

You are being sucked into acceptance of a police state, where your every act can be controlled. The ironically named “Patriot Act” is but one example. And now you calmly witness the brutality against your fellow Americans, whose sole crime is protesting. Until you begin to understand the facts of Monetary Sovereignty, and demand that the lower- and middle-classes be supported, things will get worse and worse and worse.

What can you do? First, learn the facts of Monetary Sovereignty, so the media and the politicians won’t be able to deceive you with their lies.

You’ve seen the “Arab spring.” Don’t think it can’t happen here. It already has begun.
One night, there may be a knock on your door, and you will wonder how America could have fallen so far.

I award three “traitor images” to the Los Angeles Police Department, whose history of violence against American citizens is historically established. Unfortunately, they are not alone, as many police around the nation are being urged to violence by your leaders.

(Perhaps a nice $100 million lawsuit against these thugs might open a few eyes.)

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

==========================================================================================================================================
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
b>Gross Domestic Product = Federal Spending + Private Investment + Private Consumption + Net exports

#MONETARY SOVEREIGNTY

Mitchell’s laws: Reduced money growth never stimulates economic growth. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity breeds austerity and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
==========================================================================================================================================

CHICAGO TRIBUNE: 12/2/11:
“I did not make very much money in 2010, but I still feel I should pay at least something to offset some of the benefits I receive as a citizen”

Atanacio Garcia, 84, a retired postal worker from San Antonio, who donates $50 a month from his pension to the federal Bureau of the Public Debt, which accepts donations to pay down the nation’s debt.

Poor Mr. Garcia has been brainwashed by the debt-hawks into thinking he is helping America, when in fact he is hurting the economy by destroying $50 every month. Bit by bit, the media and the politicians, controlled by the 1%, deceive the 99% and encourage them steal their own futures and the futures of their children.

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

==========================================================================================================================================
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
b>Gross Domestic Product = Federal Spending + Private Investment + Private Consumption + Net exports

MONETARY SOVEREIGNTY