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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Just when you thought that Sarah Palin’s leaving center stage would restore some sanity to the coming election, the Tea/Republican candidates continue to top themselves. Here you have Ron Paul, Jon Huntsman, Rick Perry, Newt Gingrich, Rick Santorum, Gary Johnson, Buddy Roemer, Sneezy, Dopey and Grumpy. They’re enough to send even the most dour of us into laughter spasms.

“But wait” as the T.V. pitchmen say, “there’s more. All of the following happened today:

Rep. Michele Bachmann said she was surprised to hear that her entire New Hampshire campaign staff had quit en masse today, even though they “had not been paid for a month,” one of the departing staffers told ABC News.

Let’s see. She repeatedly makes stupid comments, but her people heroically stand with her. In thanks for their efforts, she doesn’t pay them for a month. And then she’s not only surprised they finally quit, but wasn’t even aware it happened. She must be taking staff-management lessons from Newt.

Herman Cain has said his much-reviled 9-9-9 plan was the product of extensive testing and thinking, but the only man he cited as involved with its research — Rich Lowrie of Cleveland — is not a trained economist. Cain now has introduced changes in which impoverished Americans would be exempted from the nine percent individual flat tax. “If you are at or below the poverty level, your plan isn’t ‘9-9-9,’ it’s ‘9-0-9,'” Cain said.

He has one idea, just one. His lone idea is a tax plan cleverly named “9-9-9” so his followers wouldn’t even need to think. They can just chant, “9-9-9” He knows nothing about foreign policy, domestic policy or any other policy. All he has is this “extensively tested and thought about” tax plan.

So when his own party pointed out that his tax plan was ridiculous, he simply changed the name to “9-0-9″ for some people. If incredibly he gets elected, we all should dial 9-1-1.

Florida Sen. Marco Rubio the national Republican party’s fastest rising star, has over the years, repeatedly spoken emotionally of how his parents fled Cuba when Fidel Castro took power, and that’s why he loves America more than anyone. Except the whole thing is a lie. His folks didn’t escape Castro. They left Cuba four years before they, or anyone else, even heard of Castro

O.K., so he dodged all the debates. And he lied about his own parents. And he has presented not one idea about anything. But he’s good looking and glib and he really, really, really loves America. And that is what qualifies him to be the Tea/Republicans fastest rising star. I’m confident he knows how to reduce unemployment and grow our economy — just as all Tea/Republicans do. Right.

You simply cannot make this stuff up. If all of this was today’s news, I wonder what’s in store for America, tomorrow.

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. The key equation in economics: Federal Deficits – Net Imports = Net Private Savings

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. Economic 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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For spreading economic ignorance, you would be hard pressed to match the Committee for a Responsible Federal Budget. You can see their site here. I send you to this site so you will be able to see how deeply their destructive propaganda has pervaded our society, and to give you some idea about how dismal America’s future will be if such people’s influence continues to grow.

This group has a gigantic list of followers, believers, and apostles, not one of whom is capable of answering this simple question: How can a tax increase or spending decrease reduce unemployment or grow the economy?

Don’t believe me? Try it. Contact any of the hundreds of names claimed by CRFB and ask the question. If you get an answer (unlikely), you will be told something like: “The deficit and debt are unsustainable; our children will pay for it; the country is broke; the debt must be no more than (?)% of GDP; the country must live within its means; and numerous other restatements of opinion.”

You will not be given any facts to justify these opinions. You will not be shown any proof the federal deficit or debt are unsustainable. Why? There is none.

You will not be shown any evidence our children will “pay for” the federal debt or deficit. Why? No such evidence exists.

You will not be told how it is possible for a Monetarily Sovereign nation to be “broke” nor why it must live within its “means” (whatever that is). And you will not be given any facts to justify why the debt must be no more than some arbitrary percentage of GDP.

You will not receive an explanation of how their philosophy is in accord with this fundamental equation in economics: Federal Deficits – Net Imports = Net Private Savings.

They may tell you that deficits cause inflation, completely ignoring historical facts.

In short, these people are, in my humble opinion, a menace to America. Do not take them lightly. Their philosophy would reduce Social Security benefits, reduce Medicare and Medicaid benefits and payments to health care providers, reduce the military, reduce our security, our education, our infrastructure, our ecology, our research, our quality of life and our strength and standing in the world.

America would be reduced to the plight of the euro nations, whose problems are based on their monetary non-sovereignty, which makes them unable to increase their money supply.

Further, these people would “spread the tax burden,” code words for increasing taxes on the lower income people while reducing taxes on the upper incomes. They are carrying water for the rich, which is why I believe they are more than merely ignorant, but downright evil.

And that is why I consider the CRFB to be one of the most dangerous groups in the world, far more likely to do serious damage to America than could al-Qaeda. Their power comes from the disinformation they have spread, which has infiltrated Congress, our educational institutions and the minds of the American public.

Their influence was given a huge boost by the emergence of the Tea Party, whose anarchist agenda already has prevented our emergence from the devastating recession. Now, the populace has been indoctrinated with the debt-hawk, Tea Party nonsense notion that for America to grow, it must shrink.

I award CRFB five dunce caps for abject ignorance of Monetary Sovereignty, plus five “traitors” for the horrible damage they are causing America.

With my huge dunce cap deficit reaching reached 55 (unsustainable?), and now my “traitors” deficit, I hope the CRFB doesn’t break down my door and demand that I cut back. You know how they are about deficits.

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. The key equation in economics: Federal Deficits – Net Imports = Net Private Savings

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. Economic 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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It’s eye-rolling time. Here are excerpts from today’s letter:

If you agree that we need to create jobs in America — long term, meaningful, private sector jobs — then I need you to take immediate action.

Last week, I was joined by a number of my Republican colleagues in the U.S. Senate in introducing an alternative to President Obama’s jobs plan. Our plan, the Jobs Through Growth Act, is focused on growing jobs through American entrepenuership. I am sure you agree with me that its [sic] private sector, not government, that will grow U.S. jobs.

I’m not sure why people believe the “private-business-always-is-better-than-government” myth. Surely, by now, we have learned what such private businesses as banks, derivatives speculators, insurance companies, oil companies, car companies, Madoff et al can do to us. People are people. The good and the bad, the greedy and the generous, the competent and the incompetent, the honest and the dishonest are found in the government and in the private sector.

I will agree to one thing, however. There does seem to be an inordinate number of bad, greedy, incompetent and dishonest people in Congress vs. the private sector. Could that be what Sen. McCain means?

As for jobs, the U.S. census bureau says the federal government employed an average of 3.8 million people through last year, with an estimated salary of $19.6 billion – per month. About $235 billion went from the federal government directly into the pockets of working people — and that doesn’t count the $3+ trillion the government sent to businesses, much of which also goes to salaries.

Of course, this figure probably will decline in 2011. Why? Because Sen. McCain et al believe firing federal employees to cut the deficit, somehow will reduce unemployment. Huh?

Our plan will help give the certainty and confidence that our private sector so badly needs to invest, grow and create jobs again. By cutting taxes, reforming our broken tax code, reducing spending and getting the burden of overregulation off America’s back we can get our economy moving again.

Excuse me, but confidence doesn’t improve business. Improved business builds confidence. Yes, I agree taxes should be cut – starting with FICA. But if “reforming the broken tax code” means some version of a Tea/Republican flat tax to “spread the burden,” it will guarantee the poor will pay more and the rich will pay less.

And then we come to reduced (federal) spending. Does anyone out there understand how reduced spending will reduce unemployment or grow the economy? I’ve asked a great many economists and politicians this question. No one seems to know.

And “overregulation”? Are we really regulated too much? Are the banks, the stock speculators, the insurance companies, the drug companies, the food companies, the water poisoners and air polluters – are they really regulated too much. Was it too much regulation that caused the recession, and will less regulation help prevent the next one?

And now comes the pitch:

If you agree with me, that business-created jobs are the way to lower the unemployment rate, please take a moment to sign this petition in support of our plan by following this link. . . . After you sign our petition today, I ask that you consider making a contribution to help Country First PAC support pro-business candidates up and down the ballot in every area of the country. Your support makes a difference in bringing real change and growth to our economy.

I award Sen. McCain a maximum of 5 dunce caps, not just for today’s ignorance, but for all his ongoing ignorance including, but not limited to, Sarah Palin. Fortunately, my being dunce cap sovereign (a concept Sen. McCain never will understand) means I always will will have plenty to give him in the future plus plenty left for any who may send him political contributions.

(I now am running a dunce cap deficit of 50. Sen. McCain might say I should learn to live within my means.)

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. The key equation in economics: Federal Deficits – Net Imports = Net Private Savings

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. Economic 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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Here is how our Monetarily Sovereign government, which has the unlimited ability to create dollars simply by touching a computer key, plans to remove dollars from our economy. As the economy suffers the death of a thousand cuts, everyone cheers.

The Federal Eye, Posted 10/19/2011
Georgetown landmark to be sold by federal government
By Ed O’Keefe and Jonathan O’Connell
A government-owned landmark with a choice Georgetown address is expected to be put up for sale in the next year as part of the Obama administration’s plans to sell excess federal property across the country.

The facility, a largely abandoned art deco-style heating plant owned by the General Services Administration, is situated on a two-acre site amid townhouses and the Four Seasons Hotel at the corner of 29th and K Streets NW. On Thursday, it will be added to a list of 12,000 properties the federal government says it no longer needs, as part of a review ordered by President Obama to save at least $3 billion in government building costs.

Jeffrey Zients, deputy director of the Office of Management and Budget, said the administration will save more than $3.5 billion in building costs by the end of fiscal 2012. The federal government owns 1.2 million properties costing taxpayers more than $20 billion to operate and maintain, Zients said. In addition to the 12,000 excess properties, he said another 50,000 are considered underused.

More accurately, the federal government plans to stop sending $20 billion into the economy annually. This has the same effect as a $20 billion tax increase.

Built in the 1940s, the GSA plant once burned coal and natural gas, but has sat dormant and racked up $3.5 million in maintenance costs in the last decade, Zients said.

. . . Dollars that have been going to maintenance personnel.

Some agencies, including the departments of Homeland Security and Justice, are studying how best to consolidate workers. At Justice, dozens of career attorneys this week threatened to quit if the department goes through with plans to close four regional offices located in southern and midwestern cities.

. . . Thereby exacerbating unemployment.

Even though the White House is set to meet its goal, officials are pushing Congress to pass a bill that would establish a civilian buildings commission to review other sites for closure or consolidation. If the legislation passes, the panel would issue recommendations to Congress for an up or down vote and generate at least $15 billion in savings over there years, Zients said.

That’s $15 billion fewer dollars entering the economy. Removing dollars from the economy is anti-stimulative. Remember: Federal Deficit Spending – Net Imports = Net Private Savings, so reduced federal spending = reduced private savings.

Yes, it could be said the private sector may lose dollars, but it will gain wealth, a nebulous entity that cannot be measured or accurately defined. People use “wealth” to mean all sorts of things. Are educated children part of America’s “wealth”? Is happiness “wealth”? What about a newly written song or poem? Do they contribute to our “wealth”? The Grand Canyon, which has minimal intrinsic value, but immeasurable value in terms of beauty and symbolism – is that “wealth” and if so, how much? No one knows how much wealth there is in America, whether it has grown or declined, and whether one kind of wealth is more economically stimulative than another. “Wealth” is an uncertain word, meaning different things to different people, and so is not a scientifically meaningful term.

But, we do know for certain:

1. Our Monetarily Sovereign government, upon receiving dollars for sales or for taxes, has no use for these dollars. It can create unlimited dollars, ad hoc, by spending. Dollars sent to the U.S. government, simply disappear on arrival. (This is not the case with dollars sent to state and local governments, which are monetarily non-sovereign.)
2. Federal asset sales to the private sector reduce the domestic supply of dollars.
3. Dollar supply reductions lead to recessions.

All of the above relates to The Biggest Economic Question of the Day: “How does a tax increase or spending decrease reduce unemployment or grow the economy?”

The far better alternative would be for the government to give (not sell) unneeded property to the private sector, and not remove dollars from the economy.

I award the Obama administration one dunce cap for believing the federal government needs dollars more than does the private sector.

(If you are one of those who has received a dunce cap from me, don’t bother sending it back. I create dunce caps ad hoc, by awarding them, so I have no use for yours. I now am running a dunce cap deficit of 45 caps. What is my limit?)

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. The key equation in economics: Federal Deficits – Net Imports = Net Private Savings

MONETARY SOVEREIGNTY