Mitchell’s laws: The more budgets are cut and taxes inceased, the weaker an economy becomes. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity = poverty and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
The belief that taxpayers pay for federal spending is so common and so ingrained, there probably is no cure, yet we keep trying.
INSIDE WASHINGTON: Who pays when prez politicks?
By NANCY BENAC | Associated Press – 7 hrs ago
WASHINGTON (AP) — President Barack Obama flies Air Force One when he leaves town. So does Candidate Barack Obama.
Either way, taxpayers are on the hook for a hefty amount.
The souped-up Boeing 747 that typically serves as Air Force One costs $179,750 an hour to operate, according to the latest Pentagon calculations, meaning that expenses for presidential travel mount quickly.
And, no matter what the reason for the president’s trip, there are all sorts of other necessary big expenses anytime he moves around the country: advance teams, cargo planes, armored cars, Secret Service protection, communications and medical staff and more.
Presidents always are quick to stress that they reimburse the government for the costs of their political travel.
That’s true, but they do so under rules that still leave taxpayers paying most of the tab.
Interview 1000 people and 999 will tell you that taxpayers indeed do pay for Presidential travels. And of those, 999 will be wrong. Federal taxpayers don’t pay for anything.
When the U.S. became Monetarily Sovereign in 1971, the government gave itself the unlimited ability to pay any bill of any size — without taxes or borrowing — in fact, without having income of any kind. So who pays for federal spending. The answer: Nobody pays for federal spending. It’s the ultimate free lunch.
The government pays its bills by sending instructions to banks to mark up creditors’ checking accounts. No taxes necessary. No borrowing necessary. Just instructions. Taxpayers don’t pay for federal salaries. Taxpayers didn’t pay for the GSA’s infamous Las Vegas trip. Taxpayers didn’t pay for the Secret Service hookers. Taxpayers didn’t pay for military cost overruns. Federal taxpayers simply do not pay for anything. Period.
The next time you read an article telling you how taxpayers’ money is being spend on any federal project, know this: The author of that article is clueless about Monetary Sovereignty, the basis for all economics. Now repeat after me: Taxpayers do not pay for federal spending.
So why does the federal government require us to pay federal taxes? They have not yet figured out the differences between a Monetarily Sovereign nation and one that is monetarily non-sovereign.
Rodger Malcolm Mitchell
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 exports