Read the Five Facts the Very Rich Hope You Never Will Discover

Print or save this page, then challenge your professor, your favorite media, or your politician with these facts:

You probably will not learn them in college. The universities are beholden to the rich. You probably will not learn them from your local newspaper, TV station or magazine. They too are beholden to the very rich. You surely will not learn them from your political representative. They are absolutely beholden to the very rich.

But the next time you are told that Social Security, Medicare, Medicaid, aid for college tuition, poverty aids, infrastructure improvements, and any other federal program “can’t afford” to continue or to expand, know this:

It can. There is absolutely nothing the federal government “can’t afford” and it doesn’t need to collect a penny in taxes.

And no, federal deficit spending doesn’t cause inflation.

Five Facts the Rich Hope You Never Will Discover

Fact I. The federal Government has the infinite ability to create dollars. It cannot run short of dollars.

1. The U.S. federal government invented the U.S. dollar, which it created from thin air.
2. The government created as many dollars as it wished
3. It gave those dollars whatever value it wished
4. The government retains the infinite ability to create dollars. It never can run short of dollars.

Fact II. The Federal Government Does Not Borrow Dollars

5. Therefore, the federal government has no financial need to borrow its own currency. It creates all it needs by pressing computer keys.
6. Treasury bills, Treasury notes, and Treasury bonds are not borrowing. They are deposits in accounts owned by depositors.
7.The government pays them off simply by transferring the dollars from the depositors’ account with the Treasury to the depositors’ private bank accounts. This is akin to you transferring dollars from your savings account to your checking account.
8. One purpose of Treasury accounts is to provide a safer place than private banks, to store unused dollars — not to provide the federal government with spending money. The other purpose of T-securities is to help the government regulate interest rates by providing a “floor” rate.
9. Even if the federal government stopped collecting tax dollars, it still could continue spending forever. This is known as “Monetary Sovereignty.”
10. Federal spending adds dollars; federal taxation removes growth dollars from the economy.

Fact III. The Federal “Debt” is Not Really Debt and is Not a Burden on the Government or Taxpayers

11. The so-called federal debt is better understood as the outstanding stock of Treasury securities, which are assets held by the private sector, i.e., the economy.
12. Thus, the so-called “debt” is not a burden on the federal government or on taxpayers. Actually, it’s quite the opposite. It represents the net amount of growth dollars the government has injected into the economy.
13 Because the measure of the economy is Gross Domestic Product = Federal Spending + Non-federal Spending + Net Exports, the more money the federal government puts in, the more the economy grows. (The formula differs from the national income identity because it treats all federal spending—including transfer payments—as injections into the non-federal sector.”)
14. State and local governments don’t have the unlimited ability to create dollars. Like businesses and individuals, they are monetarily non-sovereign and need income in order to spend. They owe their debt. The federal government doesn’t.

Fact IV. The Purpose of Federal Taxes is NOT to Pay for Federal Spending

15. The purpose of federal taxes is not to provide spending money to a government that creates all its spending money. Federal taxpayers do not fund federal spending. The government does not use those dollars to pay for anything.
16. The primary purpose of federal taxes is to help the government control the economy by taxing what it wants to discourage and by giving tax breaks to what it wants to reward (mostly the rich).
17. The second purpose of federal taxes is to assure demand for the U.S. dollar by requiring that taxes be paid in dollars.
18.This differs from state and local taxes (monetarily non-sovereign) which do pay for state and local government spending. State and local taxpayers do fund spending.

V. The Real Cause, Prevention and Cure of Inflation.

19. When something is scarce and demanded, its price rises. When the price of many things rises, that is called “inflation.”
20. Scarcity is caused by more demand than supply. Thus, to prevent or cure inflation, one must reduce demand for, and/or increase the supply of, the most critical items.
21. Reducing demand requires taking money out of the private sector, which can be done by raising taxes, reduced spending on things like Medicare, Social Security, or making it harder for businesses to grow by increasing borrowing costs.
22.All of these are recessionary.
23.Increasing supply can be accomplished via federal financial support for businesses and industries that add to the supply of scarce goods and services.
24.Because scarcities of energy and/or food are the primary causes of inflation, increasing the supply of energy, food and other necessities prevents/cures inflation.
25 This can be accomplished via additional federal deficit spending support for energy, food and other necessity production. This involves pumping dollars into the economy, which grows the overall economy.

The federal government never can run short of dollars; but the economy can run short of goods, services, and productive capacity. Those are the inflationary shortages that can be prevented and cured by properly directed additional federal deficit spending.

Why Do the Very Rich Want to Hide This From You?

“Rich” is a comparative.  It means to have more. A person with $10,000 is rich if everyone has $1.00. But that same person is poor if everyone else has $100,000.

So, to become richer, one must gain more for themselves and/or make sure everyone else has less.

That is why you hear false claims that Medicare, Social Security, et al are “going broke” unless benefits are decreased or taxes increased. Cutting benefits or increasing FICA taxes widens the gap between the rich and the rest, thus making the rich richer and the poor poorer.

Recently, out of pique, the federal government has reduced financial support for wind and solar energy and for college tuition. The loss of support for energy is inflationary, and the loss of support for tuition is recessionary as well as injuring America for generations to come.

The result will be more expensive energy, fewer educated college graduates in America, and less growth money in the economy — not the way to “make America great, again.”

Rodger Malcolm Mitchell

Source: https://mythfighter.com/2026/07/12/read-the-five-facts-the-very-rich-hope-you-never-will-discover/