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It takes only two things to keep people in chains: The ignorance of the oppressed and the treachery of their leaders..
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The realities of the U.S. economy can be is difficult to explain to people who have been led to believe federal economics resembles personal economics.

False notions of “affordability,” “taxpayer dollars,” and “debt/deficit sustainability” hide the truth behind many layers of intuition and misleading propaganda.

Sometimes, the solutions to the most infuriatingly complex problems can be visualized by a single, simple concept.

Heliocentrism, the simple fact that the entire solar system revolves around the sun, is an easy way to visualize mathematically complex planetary motions.

And what could be simpler than E=MC² as a way to visualize a relationship between matter and energy.

In that vein, consider the difficulty in visualizing solutions to the many, disparate and difficult problems in economics, among which are: What should a government do about economic growth, deficits and debt, spending affordability, employment and unemployment, interest rates, imports and exports, poverty, and defense spending?

The answers to such questions are made even more difficult by the variance in government type: National vs. local.

I suggest that the answers to the biggest, most difficult economics problems facing any government can be visualized by one simple question:

If the U.S. government can “print” money, why does it collect taxes?

Try it, yourself. Answer the question and see whether your answer leads you to other questions and answers, eventually taking you to an explanation of Monetary Sovereignty.

The realities of Monetary Sovereignty seem to be quite counter-intuitive to many people, and there is a strong human reluctance to deny intuitive beliefs.

So perhaps the best way to influence someone’s opinion may be to help them uncover the facts rather than being told the facts.

Next time you debate what the federal government should do about a specific problem, you might advance the discussion by asking the most important question in all of economics.

It could be a useful first step.

Rodger Malcolm Mitchell
Monetary Sovereignty

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THOUGHTS

•All we have are partial solutions; the best we can do is try.

•Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.

•Any monetarily NON-sovereign government — be it city, county, state or nation — that runs an ongoing trade deficit, eventually will run out of money no matter how much it taxes its citizens.

•The more federal budgets are cut and taxes increased, the weaker an economy becomes..

•No nation can tax itself into prosperity, nor grow without money growth.

•Cutting federal deficits to grow the economy is like applying leeches to cure anemia.

•A growing economy requires a growing supply of money (GDP = Federal Spending + Non-federal Spending + Net Exports)

•Deficit spending grows the supply of money

•The limit to federal deficit spending is an inflation that cannot be cured with interest rate control. The limit to non-federal deficit spending is the ability to borrow.

•Until the 99% understand the need for federal deficits, the upper 1% will rule.

•Progressives think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.

•The single most important problem in economics is the Gap between the rich and the rest.

•Austerity is the government’s method for widening the Gap between the rich and the rest.

•Everything in economics devolves to motive, and the motive is the Gap between the rich and the rest..

MONETARY SOVEREIGNTY