THE "COMPLETE," ONE-MINUTE COURSE IN ECONOMICS
Click the cover to see excerpts from
If you came here to discover, and are willing to drop your preconceived notions and fixed beliefs, you are in for a treat. It has been said the Bible can be summarized in one sentence: The Golden Rule. All else is clarification. Similarly, economics can be summarized in one sentence, with all else being clarification:
. Once you understand the implications of that simple economic truth -- all
-- you will have taken a giant step toward understanding our economy and predicting its direction.
The entire course consists of a text, an exam, the answer and the explanation
Here is the complete text for the course:
A large economy needs more
than a small economy. Therefore, a growing economy needs a growing supply of
Therefore, a growing economy requires a growing supply of debt.
Please answer the following question:
Where will the
come from to grow our economy?
The federal government must create the
by running a deficit.
Every form of
is a type of
Your checking account, savings account,
market account and traveler's checks all are counted as part of the
Your bank owes you the
in your checking and savings accounts. Your
market owes you what you have deposited. American Express owes you the
you paid for those traveler's checks.
Even a dollar bill is a form of
The federal government owes you, the holder of that dollar, full faith and credit (the ability to use that otherwise worthless piece of paper as
There is no form of
that is not
Printed on each dollar bill are the words "Federal Reserve Note. "Bill" and "note" are words signifying
(as in "T-bill" and "T-note.")
Increasing the supply of
means increasing the supply of debt.
Although you, I, businesses and local governments all create money when we create debt, only the federal government has the unlimited ability to service debt. Why? Because only the federal government has the legal right to create as much
as it wishes (subject to the meaningless
So, the safest, most controllable supply of
is the federal debt.
Will our children and grandchildren have to pay the federal
No, our children and grandchildren are not the debtors. In many cases, they are the creditors. Only debtors are liable for
Taxpayers do not owe the federal
The federal government is the debtor and is liable for its
which it pays by creating money. Example:
are not paying for the Reagan deficits, proportionately the largest deficits in our history. In fact,
rates were cut.
Does rising federal
No, contrary to popular wisdom, there is no historical relationship between federal
and inflation. President Carter had high inflation with low deficits. President Reagan had low inflation with high deficits.
help the economy?
Yes, there is a direct historical parallel between changes in Total
and changes in the Gross Domestic Product. A growing economy requires a growing supply of
growth and economic growth slows.
Does rising federal
reduce the amount of lending funds available to the public?
No. Rising federal
increases the amount of lending funds available to the public, because the federal government pumps more
into the economy as it creates and services the rising
Do high interest rates slow economic growth?
No. To a slight degree, high interest rates are associate with faster economic growth, because the federal government, in paying these higher rates, adds more
to the economy.
1. A large
economy requires more money than does a small
2. All forms of
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.
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
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 remain stagnant.
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
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.
Perhaps you would like to see some proof and explanation. You can find them in FREE MONEY.
To purchase the book, go to www.Amazon.com and search for "FREE MONEY Mitchell". For more information, click this link:
THE ANTIDOTE TO POPULAR WISDOM ABOUT SOCIAL SECURITY, MEDICARE, THE FEDERAL
AND THE ECONOMY.