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

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 ultimately 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.
●Everything in economics devolves to motive.
======================================================================================================================================================================================

Gross Domestic Product (GDP) is the most commonly used measure of the economy and economic change. There a several ways GDP is calculated, all arriving and the same total. One is the total of:

1. Personal Consumption Expenditures: A measure of goods and services consumed by individuals.

2. Gross Private Domestic Investment: Spending on residential equipment and buildings, spending by businesses on capital, total change in business inventories.

3. Net Exports of Goods and Services: The difference between imports and exports.

4. Government Consumption Expenditures and Gross Investment: Purchases of goods and services by the three levels of government: Federal, state and local

Here is a graph demonstrating this calculation:

The blue bar is the total of the above 4 categories. The red bar is Gross Domestic Product. As you can see, the bars are identical.

Federal austerity involves a reduction in federal spending and/or an increase in federal taxes.

–A reduction in federal spending, by definition, decreases the violet bar.
–An increase in federal taxes decreases the pale blue bar
–An increase in federal taxes and/or a decrease in federal spending, decreases the green bar.
–An increase in federal taxes and/or a decrease in federal spending has a mixed effect on the black bar. If the net effect were inflationary (the dollar loses value), the black bar could rise, but if the net effect were deflationary (the dollar gains value), the black bar could fall. Historically, net federal spending has had little effect on inflation.

Recently, GDP growth has declined, as shown by the red and blue bars, below. (Note: These bars show growth, not totals):

The recent decreases in the violet, pale blue and green bar growth all can be attributed to austerity (as explained, above).

Even with increases in Net Exports growth (black bar), GDP growth has declined, demonstrating the seriousness of our economic situation and the debilitating effects of our austerity.

Mathematically, austerity ALWAYS decreases GDP. There is no mathematical formula that will demonstrate a decrease in federal spending and/or an increase in federal taxes having a positive effect on GDP.

Politicians, having been bribed by the upper .1% income/power group (via campaign contributions and promises of lucrative employment later), use the Big Lie to brainwash Americans into believing that by some unknown magic, austerity benefits the economy.

There is no mathematical mechanism by which reductions in net federal spending can benefit the economy or the lower 99.9% income/power group. To say otherwise is the Big Lie.

The media, which are owned by the .1% parrot the same Big Lie, and mainstream economists, who work for universities receiving contributions from rich donors, will not contradict their employers.

The next time anyone –a friend, a politician, a media writer or an economist — tells you the federal deficit and debt should be reduced, show him this post, and ask him to explain it.

Be prepared for the Big Lie, and a great deal of obfuscation.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY

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

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 ultimately 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.
●Everything in economics devolves to motive.
======================================================================================================================================================================================

Here is a truly hilarious article from the Florida Sun Sentinel.

Disney again pushes ticket-fraud law
By Jim Stratton

Walt Disney World is trying again this year to toughen the state’s ticket fraud laws, this time with the help of the lawmaker who killed the proposal last year.

State Senator Tom Lee, a Republican from Brandon, who initially objected to the bill, said his change of heart had nothing to do with a $10,000 donation from Disney to his political-action committee.

As the saying goes, you just can’t make this stuff up.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY

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

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 ultimately 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.
●Everything in economics devolves to motive.
======================================================================================================================================================================================

Here is a message I received from right-winger Scott Rigell, U.S. Representative for Virginia’s 2nd congressional district. He succinctly explains why you receive far too much money from the government, and why he believes you should be impoverished:

The Biggest Threat to the Pentagon Budget Is Mandatory Spending
Assessing the Effects of Defense Cuts, and Just As Critically, The Cause

Last week, Secretary of Defense Chuck Hagel provided sobering insight into the Department of Defense’s Fiscal Year 2015 budget. Much of what the Secretary shared caused a sharp reaction across the defense community and on Capitol Hill, with options including a reduction in the end strength of the Army to pre-WWII levels, retirement of the USS George Washington (CVN-73) halfway through its expected service life, and increased cost-shares from active duty and retired service members for TRICARE.

The federal government will collect about $3 trillion in taxes in 2014; yet in a year of record tax revenue, there is continued compression on the defense budget. These reductions are principally a result of our collective failure to address mandatory spending within our overall federal budget. This spending is automatic, never voted on, and makes up almost two-thirds of the government’s annual expenditures.

He begins with the BIG LIE, the absolute falsehood that federal taxes pay for federal spending. They do NOT.

If federal tax collections fell to $0 or rose to $999 trillion, neither event would affect by even one penny, the federal government’s ability to spend.

Then Rigell amplifies the BIG LIE:

Our failure to reform mandatory spending is adversely impacting our nation and our national security in two critical areas. First, our growing budget deficits put unyielding pressure on aggregate spending levels, including defense spending.

Any time a politician pulls out the “national security” card, you can be sure he’s lying. Is America’s national security at risk? Is there some nation willing to attack the United States of America, the most powerful nation in world history? Are you in danger from anyone other than our own government?

Further, budget deficits do NOT put any “pressure” on spending levels. The federal government could cut taxes and double spending tomorrow, with no problem whatsoever. Federal finances are not like personal finances, not like business finances, not like state or city finances — not even like euro nation finances.

The federal government is Monetarily Sovereign. It has the unlimited ability to create its own sovereign currency.

You and I do not have a sovereign currency. Your state, county and city probably do not have a sovereign currency — at least not one internationally accepted. The euro nations like Greece, France and Italy do not have sovereign currencies. None of them has the unlimited power to create money.

The federal government, being Monetarily Sovereign. can pay any bill of any size at any time.

Rigell is lying through his teeth, when he says, ” . . . growing budget deficits put unyielding pressure on aggregate spending levels. . . “ Either he’s lying or he’s too ignorant about federal finances to be a U.S. Congressman.

Then he compounds the BIG LIE:

Second, and I view this as no less serious than the first, is the increased exposure our nation faces from the reckless and increasing level of our national debt, which currently exceeds $17.4 trillion.

The national “debt” is nothing more than the total of deposits in T-security accounts at the Federal Reserve Bank, the safest bank in the world. These deposits essentially are identical with savings account deposits at your local bank.

How does your local bank “pay off” your savings account? It simply transfers your dollars from your savings account to your checking account. How does the federal government “pay off” the misnamed federal “debt”? The same way. It simply transfers your dollars from your T-security account to your checking account.

No new dollars needed. This is no burden on the federal government at all.

By misnaming deposits as “debt,” the politicians use the BIG LIE to make you believe the government is in some sort of financial difficulty.

Why do the politicians want you to believe the BIG LIE?

Rigell tells us.

The war against terror is constant, and the current upheaval in the Ukraine reminds us that peace and stability in different regions of the world are fleeting.

Ah yes, the “war against terror,” an invented war that never can end, provides lying politicians with the perfect, eternal excuse for “national security” spending.

And now, right on time, here comes Putin, our latest bad boy, to provide our politicians with yet another excuse to feed the military/industrial complex.

Putin conveniently steps into the shoes of Stalin, Khrushchev, Castro, Amin, Hussein (and his fake weapons of mass destruction), bin Laden, Khamenei and an endless list of other monsters. We are “threatened” by Russia, China, Iran, Afghanistan, Pakistan, North Korea and Mexico.

(Mexico? Sure. Have you never heard of that other eternal “war”, the war on drugs? That war too requires sealing our borders and endless “national security” spending.)

But, now comes the punch line in this sad joke:

So what’s the solution? It starts with meaningful reform of Medicare, Social Security, and other programs that are not advocated for in the President’s budget.

So there it is. The liars don’t even have the honesty to call it what it is. They say “reform,” as though somehow cutting benefits to Americans is an improvement. No, it’s not “reform.” It’s very simply, stealing from the 99% and giving to the 1%, pure and simple.

What’s needed is the political courage to address today the fiscal challenges which will burden future generations of Americans tomorrow.

Yours in Freedom,
Scott Rigell

Good old Scott Rigell, is oh, so concerned about burdening “future generations tomorrow.” (“future generations tomorrow?” Huh?)

But, he’s not at all concerned about burdening current generations, today. He wants to burden them by cutting Social Security, cutting Medicare, cutting Medicaid, cutting food stamps and other poverty aids, cutting anything and everything that benefits the 99% and might help close the gap between the rich and the rest.

Bottom line, the single biggest threat facing America is not the phony, invented war against terrorism or the war on drugs. The single biggest threat to our freedom is the growing gap between the rich and the rest.

Rigell’s repeated statement of the BIG LIE has been paid for by the rich (via campaign contributions and promises of lucrative employment later). The purpose: To widen that gap between the rich and the rest.

Rigell is a liar and a traitor, who has been bribed to take away your freedom. Don’t believe a word he says.

Yours in Feedom,
Rodger Malcolm Mitchell
Monetary Sovereignty

P.S. You have a “Scott Rigell” representing you, too. Don’t believe him (her) either.

====================================================================================================================================================
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY

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

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 ultimately 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.
●Everything in economics devolves to motive.
======================================================================================================================================================================================

The fundamental purpose of ACA (aka Obamacare) is to provide poor people with healthcare. The program is massively flawed. It’s a complex, convoluted mess, that by comparison, makes the U.S. tax code look simple.

We should have federally funded, comprehensive Medicare (all parts), for every man, woman and child in America. No deductions. No exceptions. Healthcare for all.

ACA is a weak substitute. It’s weird limitations are based on the ignorant assumption that the federal government cannot afford to fund Medicare for all, so benefits must be restricted to what ACA provides.

That said, like it or not, ACA is the law of the land. It’s here and it’s not going away any time soon, despite many crazy votes (is it up to 50 yet?) by an increasingly screwball Republican House majority.

Study: States that reject Medicaid expansion lose money
Kelly Kennedy, USA TODAY 12:04 a.m. EST December 5, 2013

The 20 states choosing not to expand Medicaid will lose billions of dollars in federal funds, according to a new study released Thursday.

By 2022, Texas could lose $9.2 billion, while Florida could lose $5 billion, Georgia could lose $2.9 billion and Virginia could lose $2.8 billion.

To say this is abjectly stupid, does not do justice to the words “abjectly” or “stupid.” It’s beyond stupid. It’s mean stupid. It’s stupidity, not just for political vengeance, but to satisfy a deep-seated hatred of the poor.

The federal government has offered to pay 100% of the Medicaid expansion cost for the first 3 years, and 90% thereafter. It’s an absolute slam-dunk winner for all states accepting the ACA expansion, and a dead loser for those that don’t.

So my question, to all you who live in those 20 states: Why did you vote for those jerks? They not only are mean, immoral bastards, but are costing you money.

Many Republican governors have said increasing Medicaid could add to the federal deficit. Medicaid, however, is a federal program, Sherry Glied, lead author of The Commonwealth Fund study said, and residents of states that have not expanded the program are still paying taxes to support it. They’re just not getting the extra benefits in their states.

O.K., let’s take a deep breath, here. It’s true that nearly all citizens in those 20 states: are being cheated financially, and the poor citizens are being cheated out of health care.

Further, all Americans are being cheated by the state Republican governments, because billions are not being sent into the economy. Citizens of each state buy in many states. Those dollars are being reduced. By not accepting Medicaid expansion, the Republicans are bleeding the entire economy.

But taxes do not pay for the program. You who understand Monetary Sovereignty know that federal taxes do not pay for federal spending, and even if FICA were $0, the federal government could continue supporting Medicare and Social Security forever — even with double the benefits.

Obamacare is free money to the states, and many states refuse it, out of ignorance or malice.

Bottom line: If you live in one of the Republican-controlled states that refuse to expand Medicaid coverage, your state politicians are stealing dollars from your pocket, your spouse’s pocket, your children’s pockets and your family’s, friends’ and neighbors’ pockets, just as though they had lined you all up at gunpoint, and demanded you give them you money.

If you enjoy being robbed, you’ll love your local, conservative government, bought and paid for by the upper .1% income/power group.

It would be better to take your money to Las Vegas. You’ll lose, but at least you might meet a showgirl.

Rodger Malcolm Mitchell
Monetary Sovereignty

====================================================================================================================================================
Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3. Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4. Free education (including post-grad) for everyone. Click here
5. Salary for attending school (Click here)
6. Eliminate corporate taxes (Click here)
7. Increase the standard income tax deduction annually
8. Increase federal spending on the myriad initiatives that benefit America’s 99% (Click here)
9. Federal ownership of all banks (Click here)

—–

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

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:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

THE RECESSION CLOCK

As the federal deficit growth lines drop, we approach recession, which will be cured only when the lines rise. Federal deficit growth is absolutely, positively necessary for economic growth. Period.

#MONETARY SOVEREIGNTY