Balanced Federal Budget, Federal Deficit Solution Federal Deficit Problem Balanced Federal Budget Federal Government Budget
What is stagflation? What cures stagflation? What cures inflation? What cures recessions and depressions? What is the one solution to Social Security and Medicare problems that does not include raising taxes or cutting benefits

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Please click the cover to see excerpts from FREE MONEY and for ordering information.
Rodger Malcolm Mitchell:

           Do you believe:
                    -The federal government budget is too large?
                     -The US national debt, deficit and spending are too high?
                    -Our children will pay the federal debt through higher taxes?
                    -There is a federal government budget crisis?
                    -Social Security and Medicare might go bankrupt?
                    -High federal spending causes inflation, high taxes and/or high interest rates?
                    -We can't afford health insurance or a good education for everyone?
                    -Cutting interest rates stimulates the economy and helps prevent a recession?
                    -The U.S. National debt uses up investment funds?
                    -The Fed can prevent inflation and stagflation, with interest rate control?
           That is the popular wisdom. Yet, historical data does not support any of these beliefs. When tenets universally are accepted, and especially when they disagree with history, the thinking person reexamines the faith. FREE MONEY will give you the facts about money, federal debt, the federal deficit, Social Security, Medicare, education and federal spending, inflation, recession, depressions, stagflation and taxation.

Why do we wait for recession, stagflation or depression before we stimulate the economy? Why not stimulate the economy to prevent recession, stagflation and depression?

Recessions have occurred when growth in the debt/money supply was lower than it was in the previous year. Because of inflation and population increases, the debt/money supply must grow significantly, merely for the economy to remain static. With inflation at 3% and population growth at 1%, achieving 4% economic growth requires a debt money growth rate above 8% (1.03 x 1.01 x 1.04 = 1.0819). This does not take into consideration the outflow of money due to a negative current account (mostly the difference between exports and imports). A negative current account increases the need for deficit spending.
           In the book, FREE MONEY, Rodger Malcolm Mitchell proposes solutions to the Federal debt, and Federal deficit, inflation, recession, depression and stagflation, the Medicare and Social Security crises and high taxes. To see these solutions, read FREE MONEY. for the little known, but crucial facts about the Federal Government budget and the economy.
           FREE MONEY is easy to read. FREE MONEY is revealing. FREE MONEY is something you and every American should understand when you are asked to pay taxes.

                                                     Read the answers in:

Please click the cover to see excerpts from FREE MONEY and for ordering information.
Rodger Malcolm Mitchell:

"When an author puts himself on the line by embracing an unfashionable idea, even though he is guaranteed to generate scorn or indifference, this should somehow be recognized." Kary B. Mullis, Nobel laureate

"If at first an idea does not sound absurd, then there is no hope for it." Albert Einstein

"Intuitional belief and popular opinion are not science. If economics is to be respected as a science, and productively to influence our lives, it must look beyond intuition, and accept two unpopular facts illustrated in the excellent book, FREE MONEY: All money is debt, and a growing economy requires a growing supply of money." I. Klein, PhD

From Rodger Malcolm Mitchell: "I wrote FREE MONEY for you who enjoy thinking and discovering -- you who do not blithely accept the popular wisdom. How can you explain the widespread belief that taking money out of an economy (with higher taxes and/or less federal spending) will help that economy grow?

How many of these thought-provoking questions can you answer?
1. What is the tax-free national debt solution to Social Security and Medicare financial problems?
2. Why did the fastest debt growth in U.S. history precede an economic boom and low inflation?
3. Why has every U.S. depression come after a federal surplus, and every recovery corresponded with a federal deficit?
4. Why will our children never have to pay for federal deficits?
5. Where will the necessary, added money come from to grow our economy?
6. Why are the only two federal agencies, funded by direct tax collections, in financial difficulty?
7. Why does the federal government not need or use tax money to pay for goods, services or debt service?
8. What is stagflation and what is the cure for stagflation ?
9. What really would happen if all federal taxes were eliminated?
10. In just the past 25 years, federal debt has increased an astounding 800%. Despite "debt clocks" and dire predictions based
on popular wisdom, our grandchildren are not paying for the debt, interest rates and inflation have been controlled,
GDP keeps rising, no nation has refused to buy our debt and there is no shortage of lending funds. How is this possible?

          You'll find the answers to these questions, and many more, in FREE MONEY

        How can you explain the widespread belief that taking money out of an economy (with higher taxes and/or less federal spending) will help that economy grow?

           "We cling to a long-accepted theory, just as we cling to an old suit of clothes. "New notions and new styles worry us."
Professor Asa Gray, in defending Darwin's theory of evolution.

           You also may enjoy reading my discussions with members of the Concord Coalition, a group that promotes the popular wisdom. We argue about money, Social Security, Medicare, the federal debt and federal deficit. For a few samples, please click here.
           If you are an investor, you may gain an investment edge. You'll learn a simple, but reliable, approach to predicting the economy. You'll discover which event (and only this event) will trigger the next recession.
           If you are an economist, FREE MONEY. will give you new ideas for your own writing. This is the book owned by more than 200 of America's leading economists.
           If you are a politician, you'll see concepts to help you craft laws that will grow America.
           Using the FREE MONEY formula for economic growth, I bought stocks when I predicted the economic boom of the 1980s. I sold my stocks when I predicted the recession at the end of the Clinton administration. I again bought stocks when I predicted the recovery.
          To learn what I now predict, please click here to read:

Please click the cover to see excerpts from FREE MONEY and for ordering information.
Rodger Malcolm Mitchell:

"Discovery begins when popular wisdom is questioned." Rodger Malcolm Mitchell

The logic behind the need for substantial debt growth:
1. A large economy requires more money than does a small economy.
2. All forms of money actually are forms of debt.
3. Therefore a large economy requires more debt than does a small economy.
4. Therefore, a growing economy requires a growing supply of debt.
5. When inflation is at 3%, the total amount of real money in the economy will decline by 3%, unless more debt/money is created.
6. Further, when the population increases 1%, the amount of money per person decreases by 1%, unless more money is created.
7. Therefore, with inflation at 3% and population growth at 1%, a debt/money increase of 4% is needed each year, just to break even.
8. For a GDP growth of 4% on a per-person basis, the total debt/money supply must increase at least 8%.
9. The trade deficit (more money leaving the country than entering) in 2007 was $711 billion, or above 5% of the $13 trillion GDP, which brings the per-person total debt/money (federal, state, local government plus all private debt) creation needs to nearly 14%.

History shows that when total debt does not increase enough, as happened prior to the most recent recession, and is happening now (2008), we have slow economic growth, a recession or a depression.

The graph compares previous year changes for inflation (red) and for total national debt (blue).
          Common wisdom holds that increasing the money supply causes inflation. History shows that is not correct. As you can see in the above chart, there is no relationship between changes in total debt (money) and inflation.
          The value of money is determined by supply and demand. So, it is true that increasing the money supply without interest rate control would lead to inflation, unless the demand also was increased. What increased demand? An increase in interest rates.
          In short, deficit spending does not cause inflation, because we have the power to prevent inflation at will.
The Complete, One-Minute Course in Economics.

Click this link link to learn "everything" you need to know about economics, in just one minute.

           In FREE MONEY, you'll enjoy discussions of a balanced Federal budget, inflation, stagflation, and depression, federal taxes and tax cuts, federal debt, federal deficit, interest rates, recessions, money supply, Social Security reform, poverty, "debt clocks", Social Security bankruptcy, FICA, fiscal responsibility, social security privatization, Medicare reform, Medicare bankruptcy, treasury bills, notes and bonds and economic forecasting. Also, see a more accurate Glossary of economic terms. It's much more than a Glossary. It's a philosophy.

Associated Press:
"12/19/2007 WASHINGTON - Congress approved $70 billion Wednesday for military operations in Iraq and Afghanistan. The House's 272-142 vote also sent the president a $555 billion catchall spending bill that combines the war money with money for 14 Cabinet departments."

          Medicare and Social Security are in financial trouble.

          If you do an internet search of the words "federal deficit," you will find hundreds of sites warning about the federal government's debt burden. You will see "debt clocks" and many cautions that the Federal Debt has reached an enormous number. Stated or unstated will be the belief the federal government is living beyond its means and one day, the chickens will come home to roost, and many awful things will happen.
          You will see statements of belief that increasing federal debt causes inflation, recession or stagflation.. Yet nowhere will you find a graph showing the true relationship between federal debt and inflation. (There is no historical relationship.) The graph appears in Free Money.
          And you will see many statements of belief that increasing federal debt causes high interest rates, which will cause a recession. Yet, you will not see a graph showing the true relationship between high interest rates and low GDP growth. (For reasons explained in FREE MONEY, there actually is a positive relationship between high interest rates and GDP growth). And nowhere will you find a chart showing the true relationship between total U.S. debt growth and GDP growth (They are generally parallel).
          Nor will you find an explanation of how the U.S. government, with the unlimited power to print money, ever can have difficulty paying its debts.
          In short, you will see sites that are long on belief and short on facts.
           That is why economics has become more like a religion than a science. Belief and faith dominate fact. Economists immerse themselves in minutia, like clerics debating abstruse phrases of religious dogma. The doomsayers remind one of the cult leaders who each year take their followers to the mountaintop, to await the end of the world. But the world fails to end. Does that discourage the doomsayers?
           Apparently not, for they keep chanting the same economic warnings, over and again, while the federal debt and the economy continue to grow and fall in tandem.
           We never again will have inflation, recession, depression or stagflation if we keep interest rates and the federal deficit high.

Associated Press: Jan 13, 2008
Lawrence Summers, one of President Clinton's treasury secretaries, said the odds of a recession, this year went up after the dismal employment report. He advocates temporary tax cuts and emergency spending.

           In 1997, the Chicago Tribune newspaper published an editorial headlined, "Clinton, GOP hail budget, tax deal . . . would yield the first balanced budget since 1969" Chicago Tribune, May 3, 1997."
          I predicted this much-applauded act would cause a recession if we were lucky and a depression if we were not. We were lucky. We had the recession.
          If we were not so "lucky," and the surplus had lasted longer, this is what might have happened:
          1817-1821: U. S. Federal Debt reduced 29%. Depression began 1819.
          1823-1836: U. S. Federal Debt reduced 99%. Depression began 1837.
          1852-1857: U. S. Federal Debt reduced 59%. Depression began 1857.
          1867-1873: U. S. Federal Debt reduced 27%. Depression began 1873.
          1880-1893: U. S. Federal Debt reduced 57%. Depression began 1893.
          1920-1930: U. S. Federal Debt reduced 36%. Depression began 1929.
          1998-2001: U. S. Federal Debt reduced 9%.   Recession began 2001

1. Stagflation
2. Federal Budget Deficit
3. Social Security and Medicare Solutions
4. National Debt Letters
5. Federal Deficit Solution
6. Concord Coalition.
7. Balanced Federal Budget
8. Federal Deficit Problem
9. Federal Government Budget
10. US National Debt
11. National Debt Solution
12. A Child In Arms
13. Inflation and Stagflation
14. Glossary of Economic Terms Debt, Money, Deficit, Spend, Owe
15. U.S. National Debt
16. US National Debt Clock


To see a complete discussion of the federal budget deficit and the historical effect it has had on the U.S. economy, please see FREE MONEY.

Rodger Malcolm Mitchell:

Medicare: A Solution to the Problem

Read Letters to the Media

US National Debt is $9 Trillion!

This is a most important paragraph in economics: A large economy needs more money than does a small economy. Therefore, a growing economy needs a growing supply of money.
All money is debt. Therefore, a growing economy requires a growing supply of debt. Federal debt is the safest, most controllable form of debt.
Rodger Malcolm Mitchell:
The Interest Rate Fallacy | Social Security Solutions And Reform | Medicare Solutions And Reform | Solutions To Our Economic Problems | Recessions, Depressions, Inflations, Stagflations: Causes and Cures | Federal Debt of the U.S. | Why We Need The Federal Budget Deficit | Stagflation: What It Is And How It is Prevented And Cured | Interesting Letters To The Media | Is There A Federal Deficit Solution? | Should We Have A Balanced Federal Budget? | What Is The Federal Deficit Problem? | How The Federal Government Budget Affects The Economy | A Discussion Of The US National Debt | The National Debt Solution | Short Stories: A Child In Arms | Glossary of Economic Terms Debt, Money, Deficit, Spend, Owe | US National Debt Clock | The Solution to Inflation and Stagflation | What Is Pseudoeconomics?   | How Is Money Supply Like The Weather? | Do Low Interest Rates Help The Economy? | The Solution to Federal Tax Reform | What Is The Relationship Between Gold and Money? | Why Do You Pay Taxes? | Social Security Reform | Does Federal Debt Cause Inflation? | The 5 Myths That Damage Our Economy | 10 Reasons to Eliminate FICA | Rodger M. Mitchell -- Ideas |