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 BIG LIE

In U.S. economics, the BIG LIE is exemplified by several widely believed, though utterly false, statements:

1. “We Americans are the federal government. Government deficits are our deficits; government debts are our debts. Our children will pay for government debt.“

ECONOMIC SCENE
Cutbacks and the Fate of the Young
By Eduardo Porter, Published: October 9, 2012

During the presidential debate last week, Mitt Romney reminded us that it is our children, and grandchildren, who will end up paying for our budget deficits. His comment about the immorality of passing on such a large bill is a welcome reminder that our generation bears responsibility for the well-being of the next.

That is an example of the BIG LIE.

Federal debt is nothing more than the total of deposits in T-security accounts at the federal reserve bank. If you own a T-security, you have a deposit in the Federal Reserve Bank. you very well may pass that bank deposit on to your children, as an interest paying asset.

To “pay off the debt,” i.e. to cash in your deposit, the federal government merely will transfer dollars from your T-security account at the Federal Reserve Bank to your local bank checking account.

Neither you, nor your children nor the government are burdened by this asset transfer between two of your bank accounts.

2. “Like us, the federal government must live within its means.”

(Barack Obama, Feb 12, 2011: “So, after a decade of rising deficits, this budget asks Washington to live within its means, while at the same time investing in our future. It cuts what we can’t afford to pay for what we cannot do without. That’s what families do in hard times. And that’s what our country has to do too.)

That is an example of the BIG LIE.

Families are monetarily non-sovereign. They do not have a sovereign currency. The same can be said of states, counties, cities, businesses and euro nations. None has a sovereign currency.

However, the U.S. is Monetarily Sovereign. It created the dollar, its sovereign currency, by creating laws.

Being sovereign over its currency, the U.S. government has the unlimited ability to create dollars. Unlike a family, which can run short of dollars, the U.S. never can run short of dollars. It has no “means” to live within.

3. “The federal debt is a burden on the federal government, a burden on us, and will be a burden on our future generations.“

Rep. Tom Cotton, R., Arkansas, Feb 22, 2014: “President Obama’s policies spend too much money – they’ve irresponsibly added trillions of dollars to our national debt. The debt slows economic growth today and it places an immoral burden on our kids and grandkids.”

That is an example of the BIG LIE.

The federal debt, being deposits in the Federal Reserve Bank, is not a burden on the U.S. economy. It is not a burden on our future generations, who will not have to pay it.

Bank deposits do not burden anyone.

Future generations won’t be involved in any way, with liquidating deposits in the Federal Reserve Bank or any other bank. Only banks “pay off” deposits — by transferring dollars from savings deposit accounts to checking deposit accounts.

4.“ We taxpayers pay for federal spending, just as we pay for state and local spending.“

In fiscal year 2012, the federal government spent $3.5 trillion, amounting to 23 percent of the nation’s Gross Domestic Product (GDP). Of that $3.5 trillion, nearly $2.5 trillion was financed by federal revenues.

The remaining amount (about $1.1 trillion) was financed by borrowing; this deficit will ultimately be paid for by future taxpayers. http://www.cbpp.org/cms/index.cfm?fa=view&id=1258 Center on Budget and Policy Priorities

That is an example of the BIG LIE.

Neither borrowing nor taxing finances a Monetarily Sovereign government. It has the unlimited ability to create its own sovereign currency.

All dollars going to the federal government disappear from the money supply and thus, are destroyed upon receipt.

The U.S. government itself has no dollars. It pays its bills by creating dollars ad hoc, but it does not retain those dollars. The entire money supply is in the private sector. The government has none.

Here is what one of the most dominant personalities of the 20th century wrote about the BIG LIE:

“In the big lie there is always a certain force of credibility; because the broad masses of a nation are always more easily corrupted in the deeper strata of their emotional nature . . .and thus in the primitive simplicity of their minds they more readily fall victims to the big lie than the small lie, since they themselves often tell small lies in little matters but would be ashamed to resort to large-scale falsehoods.

“It would never come into their heads to fabricate colossal untruths, and they would not believe that others could have the impudence to distort the truth so infamously.

“Even though the facts which prove this to be so may be brought clearly to their minds, they will still doubt and waver and will continue to think that there may be some other explanation.

For the grossly impudent lie always leaves traces behind it, even after it has been nailed down, a fact which is known to all expert liars in this world and to all who conspire together in the art of lying.”

Adolph Hitler, in ‘Mein Kampf’

And that is why the broad masses of Americans don’t just believe the BIG LIE, but argue strenuously, even angrily, against anyone who exposes them to facts.

They are the ones with “primitive simplicity” of mind, about whom Hitler wrote.

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.
======================================================================================================================================================================================

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