–The Obama conspiracy dance continues. Hope you’re enjoying the show.

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.
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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

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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

Revealing the conspiracy: A recommendation for followers of MMT and Monetary Sovereignty

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

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#MONETARY SOVEREIGNTY

–How the rich are screwing you, and how you can fight back

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

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#MONETARY SOVEREIGNTY

–How the UK teaches America about economics

Britain was much smarter than the euro nations. It kept its Monetary Sovereignty. The euro nations surrendered their Monetary Sovereignty. They have no sovereign currency. Instead, they use an “alien” currency, the euro. No euro government can create euros. Each can, and already has, run short of euros. So, each can be forced into bankruptcy.

Britain, like the U.S., has the unlimited ability to create its sovereign currency, in its case, the pound. It never can run short of pounds. It can pay any bill denominated in pounds. It never can be forced into bankruptcy.

Unfortunately, Britain’s leaders and the U.S.’s leaders act as though their nations are like the euro nations: Monetarily non-sovereign. Each pretends they are running short of their sovereign currency, and each offers the same “solution” to this non-existent problem.

A commentator, Roger Erickson, called the following article to my attention:

The Telegraph
“Everyone must make contribution’ towards deficit,” says Cameron
By Christopher Hope and Rowena Mason

Speaking at the end of a special Cabinet meeting to discuss this afternoon’s Autumn statement, Prime Minister Cameron said: “Britain is on the right track. “We are dealing with the deficit and debts in a fair way. Everyone must make a contribution. We are equipping Britain to succeed in the global race.”

The Chancellor of the Exchequer George Osborne will say there is “no miracle cure” for the UK’s economic problems as he misses his own targets on reducing the national debt and deficit this afternoon.

Translation: “My solutions didn’t work, so I am doing the right thing.”

Setting out his annual Autumn Statement, Osborne will ask households to bear more financial pain while the economy struggles to get back to growth.

Translation: “Just like our American friends, we are going to screw the middle and lower income groups, by convincing them that getting screwed is patriotic. They have been trained to believe anything.

After weeks of negotiations within the Coalition, the Conservatives have vetoed a Liberal Democrat plan for a mansion tax, but could still raid pension pots. Mr Osborne is also expected to freeze or limit benefits to send out a stronger message that work should pay.

Translation: “The Americans taught us this one. No new taxes on the wealthy, but cut benefits for the poor and middle income groups. You see, giving people pensions turns them into sloths. People should be made to work until they die. (That’s why the Americans keep raising the Social Security age.)”

The Chancellor will also have to admit that his record on paying down Britian’s debts is not as good as he might have hoped when the Coalition came to power. This year alone, Britain will have had to borrow around £10 billion more than expected, because of a lower tax take and welfare pressures.

Translation: “Even though we have the unlimited ability to create our sovereign currency, the pound, we need to borrow the pounds we previously created. We already know this makes no sense, so please don’t ask us why we do it.”

Mr Osborne will also reveal independent figures on the UK’s growth, which are likely to show the economy has stagnated this year and will be sluggish in 2013.

Translation: “Tax increases and/or spending cuts (aka “austerity”) don’t work. Austerity never works. In the history of the universe, austerity never has worked. So let’s continue our austerity.”

Paul Johnson, an economist at the Institute of Fiscal Studies, said the outlook for growth will remain gloomy. “Back in March the Office for Budget Responsibility thought the economy would grow by about 0.8 per cent this year, not very much but at least positive. The average of independent forecasters is now that it is actually going to go down this year. The OBR back in March looked relatively optimistic compared with what most people think now. Most importantly a significant part of that loss in growth is it looks like we are never going to get it back.”

Translation: “We know we are destroying the economy, and we have no plan to grow the economy. So trust us.”

Chris Leslie, one of Labour’s shadow Treasury ministers, said Mr Osborne is now entering a period of reckoning and urged him to change course with slower cuts and more spending to boost growth. “Today I think is going to be the period in which [the Chancellor’s] philosophy is blown out of the water,” he told ITV’s Daybreak.

Translation: “You may think that one day, the public might discover that spending cuts and tax increases always destroy an economy. But let’s face it. The public is so brainwashed, I doubt they ever will understand what we are doing to them.

“Look at America. They ran deficits, so they are recovering, while we are shrinking. Yet, the Americans argue about the best way to cut deficits and send America back into recession.”

.
Our politicians, here in America, have learned a great deal from our British cousins. They have learned how to screw the American lower and middle income groups, while widening the gap between the rich and the rest. They have learned how to brainwash the American public into believing the federal government’s finances are like personal finances.

They have taught the American public that suffering is patriotic, and that in some unknown, mysterious way, the people’s financial pain will benefit their children and their grandchildren.

The UK has their Cameron. We have our Obama. They have their Osborne. We have our Geithner. All preach the same failed lessons. And we have learned those lessons well.

The euro nations are doomed by their austerity. Britain is doomed by its austerity. America is doomed by our austerity.

Austerity is dooming us all. The only question: Will we die by the Democrat’s knife or by the Republican’s gun. That is what the two parties now are debating.

Rodger Malcolm Mitchell
Monetary Sovereignty

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#MONETARY SOVEREIGNTY

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