Fiat Currency Taxes – Part 4

There are some critical issues that must be recognized as not truly part of the problem. In fact, some of them are actually false flags created and promulgated to distract people that really want a robust economy that enriches everyone from championing policies that actually achieve that.

There are falsehoods that must be called out whenever they appear. First and foremost, it must be understood that by abandoning the Gold Standard or any other external commodity anchor for our currency, the US Dollar becomes representative of the economy as a whole. With a Commodity Anchor whenever the nation needs its money supply to exceed the value of the Commodity, it must capture existing currency, generally as borrowed currency in the form of Treasury bonds. Without a Commodity Anchor, and where a nation pays all its debts in it’s own currency and only accepts its own currency for taxes and other payments and is also the sole producer of it’s currency, then there are only two critical functions that taxes perform. It forces the taxpayers of that sovereign nation into using the nation’s currency for all transactions. And second, it serves as a critical tool in assuring that the nation’s economy is balanced meaning it produces a balanced income distribution and utilizes effectively all of it’s available resources, especially labor.

Falsehood #1 – The Federal Reserve is not a “private” bank. It is not controlled by the Rothchilds or the Rockefellers or anyone else. The Fed takes direction and acts on the authority granted to it by Congress. It operates as the banker of the US Treasury Department with its controlling board nominated by the President and approved by the Senate.

Falsehoods #2 & #3 – Social Security will only run out of funds if Congress stops funding it. Not a penny has been taken out of Social Security to pay for wars, space exploration, Congressional Health Insurance or even Donald Trump’s trips to his Florida resort. Both of these falsehoods are myths repeated over and over. In fact, if Congress wanted to increase Social Security payouts, it can just legislate it. A smart tax plan would integrate Social Security into the same process that determines your tax liability or tax refund.

Falsehood #4 – Jobs are never created in the private sector unless there is a demand for the whatever product is created by the workers. Without demand employers would not hire more workers, without demand bankers won’t fund new startups. Giving money to wealthy people will not accelerate a slow economy. In a slow economy, you want the lower earners to have more money. In a fast economy where usually there is a supply side problem and inflation is on the rise, using the Fed to constrain supply side production is counter productive.

Falsehhood #5 – Free Market Capitalism is the same as Free Enterprise Capitalism. Free Market is shorthand for saying that government should allow the market to dictate economic winners and losers, and regulations restrict business from operating at peak efficiency. Allowing this philosophy to determine government policy toward business operations leads to poor working conditions, low wages, monopolies and in the political sphere – Fascism. Free Enterprise on the other hand recognizes governments role as preventing unsafe working conditions, using tax policy and other tools to prevent underpaid workers and strictly enforcing anti monopoly and anti trust laws. In the political sphere you get more democracy and larger number of businesses competing against each other for customers and labor.

Falsehhood #6 – Socialism is not about the maxims of Karl Marx. Instead it is about allowing the government to provide as a service anything that should not be based on profits or should be available to all. Socialism can function side by side with Free Enterprise Capitalism which also enhances democracy.

Falsehood #7 – There is no reason to believe that any nation, including China or Russia reverting to a Commodity Anchor presents a risk to the US economy. Nor is there any value to the term “petro dollar”. And if China decides to cash in all their Treasuries, the net effect on the economy will be be to pay a few Fed and/or Treasury employees OT for a few days to process the transactions. It will not create flood of dollars to be unleashed globally or the dollar to be devalued.