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Do these lines move together, randomly, or in opposition? What is your opinion?

% of readers think this story is Fact. Add your two cents.

Would you say these lines move together?  

Blue = price annual % increases. Red = federal debt annual % increases.

From the above graph, it would be very difficult to deduce that increases in federal debt cause increases in prices. In fact, a better case could be made that increases in federal debt cause a decrease in prices, and that decreases in debt caused an increase in prices.

How is that even logical? I can visualize one possibility. Federal debt, which results from federal deficit spending, stimulates the economy, i.e. it stimulates business’s anticipation of demand.

Even today, businesses are ramping up production in anticipation of increased sales due to projected federal stimulus spending. Is it possible that this anticipation causes businesses to overshoot their production, leading to excess supply and reduced prices?

Perhaps, but for whatever reasons, federal deficit spending has not caused inflation, at least, not inflation above the Fed’s arbitrary, 2% goal.

Over the long term, prices have increased. There has been some inflation. And we know that federal debt has increased. Is this the cause/effect we have been told about?

Here are the same data viewed from another perspective, and with the addition of Gross Domestic Product (green). Since 1970, prices (blue line) have risen slowly, GDP (green) has risen faster, while federal debt (red) has risen massively. This indicates three things you will not hear from the media, the politicians or the expert economists:

  1. Even during massive debt increases, prices have moved up moderately, actually below the Fed’s target.
  2. As federal debt increases, GDP grows faster than inflation.
  3. The growing debt is not a burden on the government, on taxpayers, or on the economy.

Sadly, these facts will not sway those whose motive clearly is to widen the Gap between the rich and the rest.

By claiming that federal spending to support the poor and middle-income groups is unsustainable, the purveyors of the “Big Lie” help enrich the rich and impoverish the rest. 

That is what the “Big Liars” are being paid to do. Rodger Malcolm Mitchell [ Monetary Sovereignty, Twitter: @rodgermitchell, Search: #monetarysovereignty Facebook: Rodger Malcolm Mitchell ]



  • Monetary Sovereignty describes money creation and destruction.
  • Gap Psychology describes the common desire to distance oneself from those “below” in any socio-economic ranking, and to come nearer those “above.” The socio-economic distance is referred to as “The Gap.”

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics. Implementation of Monetary Sovereignty and The Ten Steps To Prosperity can grow the economy and narrow the Gaps: Ten Steps To Prosperity:

  1. Eliminate FICA
  2. Federally funded Medicare — parts A, B & D, plus long-term care — for everyone
  3. Social Security for all
  4. Free education (including post-grad) for everyone
  5. Salary for attending school
  6. Eliminate federal taxes on business
  7. Increase the standard income tax deduction, annually.
  8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.
  9. Federal ownership of all banks
  10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

The Ten Steps will grow the economy and narrow the income/wealth/power Gap between the rich and the rest.



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