Everyone knows that only two things in life are certain – death and taxes. But are they both, really? Death, for sure. But not taxes. Taxes are pure fiction that we create and we can end.
If we ever hope to understand why the world is as screwed up as it is, then it behooves us to sit down and try to understand the true nature of money & taxes, and how they go together like milk & honey, or more aptly, nails & a hammer.
To shed light on this marriage made in hell, I’ll start with an excerpt from a proposal aimed at solving the “financial” crisis in modern day Greece, where the author analyzes the nature of fiat money and, most importantly, how it derives its value:
“The modern state can make anything it chooses generally acceptable as money…It is true that a simple declaration that such and such is money will not do, even if backed by the most convincing constitutional evidence of the state’s absolute sovereignty. But if the state is willing to accept the proposed money in payment of taxes and other obligations to itself the trick is done.” [– Abba Lerner]
And what better to begin with than taxing the most precious, essential, and finite commodity on earth – the earth itself. Land ho! Its why human beings are the only animals on earth that have to pay to live on the planet. Instant subjugation. “Economy” by fiat.
They infuse whatever worthless instrument (symbol) they concoct with instant value by anointing it ‘the only license’ by which anyone can maintain dominion over the only thing with REAL value on this planet – land – that from which all other value derives.
The modern state, then, imposes and enforces a tax liability on its citizens, and chooses that which is necessary to pay taxes.That means a state with a sovereign currency is never revenue constrained. In fact, the government has to first create the money before the private sector can find a way to get the money it requires to pay taxes and by [sic] government bonds. Taxes and bonds are therefore not really the source of government funding or finance. Wait, what?
The government itself ultimately is the source of money required to pay for government expenditures. Taxes simply give value to money, as households and nonbank firms cannot create money – that is counterfeiting. Instead, they have to sell an asset or a product or a service to the government to get money, or they need to be beneficiaries of government corporate subsidy or household transfer programs to get money.
So you see, governments and banks don’t create value – they simply have the power to assign it, by decree. The power to tax and the power to create money is, in short, the power to dictate what a nation values, and what it does not.
So, without much fanfare, or rather in secret and behind closed doors on a secluded island, the government granted the sole authority to “create” that money to a handful of bankers who then proceed to assign value (through it) to particular lots of land (of their choosing) and to certain economic activities (in their interests) to benefit their friends and families, eventually making them all the wealthiest people on earth.
Voila, modern day feudalism by monied gentry!
A monopoly on land wasn’t necessary at first because that came next along with every other monopoly. The first and most important monopoly is that on taxing, followed thereafter by the one monopoly that would eventually become the adoptive mother of all monopolies – the monopoly on money. You can then tax anything on earth and in so doing subjugate the entire planet and all its inhabitants to your money system.
You see, long ago, before the US came into existence, bankers realized that the monopoly on money was indeed the most important monopoly on earth, the monopoly by which all other monopolies can be had. This is why they spared no expense at securing it, up to and including extinguishing hundreds of millions of lives, through consecutive wars of subjugation and a steady production and staple dissemination of subterfuge and lies.
And of course, to make the trick complete, they make taxes the most complicated set of statutes ever created, to be interpreted only by professionals, licensed and paid to serve special interests. This way they can close all the exits for ordinary people, while creating mega loopholes for themselves.
They wouldn’t want to create all that money from thin air, only to have those billions in profits taxed away from them. That would defeat the purpose. Taxes are for ordinary folks like us, not the uber rich, like them.
There you have it – a brief introduction to how (and why) money “works” – through taxes – and why its the biggest scam on earth.
If you found it useful, pass it on, because if knowledge is power, communication is key.