What is it that ideas and people are 'left' or 'right' of?

[danielpalos]

how do tax cut economics work to improve the social betterment?

Explain your definition of tax cut economics, please. Thanks!

Every bill I've seen pawned off as a tax cut turned out to be a tax increase in the form of the inflation tax.

Or are you talking about income tax? Income tax is theft.

current right wing policy that separates cutting taxes from spending.

 

[danielpalos]

Explain your definition of tax cut economics, please. Thanks!

Every bill I've seen pawned off as a tax cut turned out to be a tax increase in the form of the inflation tax.

Or are you talking about income tax? Income tax is theft.

Don't fall for it....He's an economic dilettante, who revels in his utter ignorance.

let's raise the minimum wage to raise taxes instead of the more traditional, tax raise economics.

 

[Tehon]

Did you ever consider that perhaps it is you who is misusing the word? The meaning of liberal is not really related to the size or scope of government. The idea of liberalism as it relates to government is that we are all able to participate in it.

Well, I have Mises on my side, Tehon. I'm in pretty good company.

Speaking of Ludwig, here's a snip from a great article on the topic. It's a long piece, so long that even the snippet is long, but I'll link the page to the entore piece at the end of the snipped portion....



Ludwig von Mises and the Real Meaning of Liberalism


One of the greatest voices during the last hundred years supporting the original meaning of liberalism was the Austrian economist, Ludwig von Mises (1881-1973). This year marks the ninetieth anniversary of the publication of his concise, clear, and compelling case for this understanding of the truly liberal society, his 1927 book, Liberalism: The Classical Tradition.


When penned by Mises in 1927, the aftermath of the First World War had seen the triumph of communism in Russia, the rise of fascism in Italy and an emerging nationalist and racialist movement in Germany that would come to power in 1933 in the form of Adolph Hitler and his National Socialist (Nazi) Party.


Liberalism as a System of Peaceful Trade and Human Cooperation

This was the historical context in which Mises published in 1927 his defense of classical liberalism and its emphasis on individualism, free markets and social betterment. In place of the collectivists’ starting premises of inescapable conflicts among men in terms of “social class,” nationality, race, or narrow group interest, Mises insisted that reason and experience demonstrated that all men could associate in peace for their mutual material and cultural betterment.

The key to this was an understanding and appreciation of the benefits of a division of labor. Through specialization and trade, the human race has the capacity to lift itself up from both poverty and war. Men become associates in a common process of social cooperation instead of antagonists, with each attempting to rule over and plunder the others. Indeed, all that we mean by modern civilization and the material and cultural comforts and opportunities that it offers man is due to the highly productive benefits and advantages made possible by a division of labor. Men have learned to peacefully collaborate in the arena of competitive market exchange.

Without private ownership in the means of production, the coordination of multitudes of individual activities in the division of labor is impossible.

Of course, collectivist political force can be substituted for the “reward” of market-based and earned profits and the “punishment” of financial losses in guiding people in their peaceful competitive cooperation. However, the costs of this substitution are extremely high, Mises argued. First, men are less motivated to apply themselves with intelligence and industry when forced to work under the lash of servitude and compulsion. Thus society loses what their free efforts and invention might have produced.

Second, men are forced to conform to the values and goals of those in command. Thus they lose the liberty of pursuing their own purposes, with no certainty that those who rule them know what may give them happiness and meaning in life any better.

And, third, socialist central planning and political intervention in the market, respectively, abolish or distort the functioning of social cooperation. A sustained and extended system of specialization for mutual improvement is only possible under a unique set of social and economic institutions.


Economic Calculation Under Liberal Capitalism

Without private ownership in the means of production, the coordination of multitudes of individual activities in the division of labor is impossible. Indeed, Mises’s analysis of the “impossibility” of a socialist order being able to match the efficiency and productivity of a free-market economy was the basis for his international stature and reputation as one of the most original economists of his time. It was also the centerpiece of his earlier book on Socialism (1922).

In Liberalism, Mises once more clearly and persuasively explained that private ownership and competitive market exchange enable the formation of prices for both consumer goods and the factors of production, expressed in the common denominator of a medium of exchange – money. On the basis of these money prices, entrepreneurs can engage in economic calculation to determine the relative costs and profitability of alternative lines of production.

Without the ability to buy and sell, there will be no bids and offers, and therefore no haggling over terms of trade.

Without these market-generated prices, there would be no rational way to....


Continued - Ludwig von Mises and the Real Meaning of Liberalism

So liberalism is tied to economics as far as you're concerned.
Does it have anything to do with our own participation in government?

 

[Natural Citizen]

current right wing policy that separates cutting taxes from spending.

Alright. Let me explain how stuff works.

The politicians aren't running on the idea of spending less. They instead say ''vote for me because I'll make sure that the government provides you with more free stuff than my opponent say's he will.' Of course, there's no such as a free lunch, is there? Of course there isn't. So to provide that supposed free stuff that they ran on, the politicians vote for the country to spend more than its income.This is called deficit spending. To pay for that deficit spending the Treasury borrows 'currency' by issuing a bond. A bond is an IOU. It's a piece of paper with numbers printed on it that says loan me a trillion dollars today and I promise that over a ten year period I will pay you back that trillion dollars. Plus interest.

But...Treasury bonds happen to be our national debt. The Treasury then holds a bond auction. And the world's largest banks show up and compete to buy part of our national debt and make a profit on it by earning interest. As we move through this process, the big banks are there taking a cut every step of the way. This is not by chance, which I'll explain.

Through a shell game called open market operations, the banks get to sell some of those bonds to the Federal Reserve, at a profit. How does the Federal Reserve pay the bonds? I'll tell you how. The Federal Reserve opens its 'checkbook' and writes bad, bogus, counterfeit checks that should bounce because it's drawn on an account that always has a zero balance. They're creating 'currency''. Which is different than ''money''. I'll get to that later. Of course, when you or I write a check, the money has to be in there. Right? To steal a quote from the Boston Federal Reserve's ''Putting it Simply", they say that ''When you or I write a check, there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check, there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating ''money.” The Federal Reserve then hands those checks to the banks and at this point ''currency'' springs into existence. The banks then take that ''currency'' and buy more bonds at the next Treasury auction. You see?

Now. What is a check? A check is also an IOU. When you write a check, you're making a note that says here's my IOU for cash, all you have to do is go to the bank and pick it up. This particular process is very important that you understand. Pay attention here, please, because we're gonna come back to this later in my long-winded post to explain how this affects you and I.

So. Before moving on, let's recap what we have thus far. The Treasury issues IOU bonds. The banks then buy those IOU bonds with ''currency.'' The Federal Reserve then writes IOU checks and hands them to the banks in exchange for the Treasury's IOU Bonds. Thus ''currency'' is created. What's really happening here is that the Federal Reserve and the Treasury are just swapping IOUs using the banks as middle men and, presto, ''currency'' magically comes into existence. This process repeats over and over and over and over and over again, enriching the banks and indebting the public by raising the national debt. The end result is that there is a build-up of bond at the Federal Reserve and 'currency' at the Treasury. This process is where all paper ''currency'' comes from. The Federal Reserve and the government incorrectly call it ''base money'' because they don't know the difference between ''money'' and ''currency.'' It's correctly called ''base currency'' because it is not ''money.'' It is ''currency.''

''Money'' has to be a store of value and maintain its purchasing power over long periods of time.

But the base currency that is piling up as a consequence of the process which I've explained is nothing more than a receipt for a claim check on an IOU bond. So it's really nothing but a supply of numbers. So, then the Treasury now deposits the newly created ''currency'' into the various branches of the government and the politicians I mentioned in the very sentence here who were claiming they were going to give you free stuff say, 'hey thanks for that.'' Then the government does some deficit spending on public works, social programs, and, of course, their wars, to include paying weapons manufacturers and contractors, along with the soldiers' pays. The government employees, contractors, and soldiers then deposit their pay in the banks.

Now. When they deposit this ''currency'' into the bank, they're not actually depositing it into an account to be held safely in trust to them.

Instead, you're actually loaning the bank your ''currency'' and they can do pretty much whatever they please with it to include gambling in the stock market, and loaning it out at a profit, of course. This is where the process of ''currency'' really gets cranking.

This is where fractional reserve lending comes into play.

Now, what does that mean? It means precisely what it says. It means that the banks reserve only a fraction of your deposit and they loan the rest out. Though rates vary, I'll use a 10% ratio here to explain the process. If you deposit 100 'dollars' into your account, the bank legally takes 90 'dollars' of it out and loans it out without telling you. The bank must hold 10 'dollars' of your deposit in reserve just in case you want some of it. These reserves are called 'vault cash.' Now, why does your bank account still say that you have 100 'dollars' if they stole 90 of it? It's because the bank left IOUs that it created called 'bank credit' in its place. That's why. To reference the Federal Reserve Bank of New York, they say that "Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars in accounts on their books in exchange for a borrower's IOU." End quote. These are nothing but numbers that the banks type into their computers. And even though these 'bank credit' IOU numbers are very different from 'base currency' numbers, because they only exist in computers, they are still 'currency.' So now there is 190 dollars in existence. Created out of the 100 dollars deposited. You see?

Of course, the reason people take out loans from the bank is to buy something. So the borrower takes the 90 'dollars' that the bank loaned to him from your account and he pays the seller of the item. Then the seller deposits that money into his account and his bank loans out 90% of that 'currency' and leaves 'bank credits' in its place. So now theres' 271 'dollars' in existence from the original 90. This process repeats and repeats and repeats until it's under a 10% reserve ratio and all backed by 100 'dollars' of 'vault cash." Of course, some rates of deposits are only 3%. Some are 0%. The result is the expansion of the 'currency' supply by the banks. Of course, 'currency' is not 'money.'

So let us recap the second aspect of the process which I've just explained. When 'currency' is deposited into the banks, the banks get to lend it out and then it gets redeposited and lent out again, over and over and over again creating 'bank credit' all along the way. This is where the vast supply of our 'currency' comes from. In fact around 96% of all 'currency' that is created is created by the banking system.

Now. At first, massive amounts of 'currency' spewing into society might sound like a fun idea. At least until you remember that the prices of every day goods and services act as a sponge on an expanding 'currency' supply.

The more 'currency' we have, the more prices will rise. This is where 'inflation' comes from. The true definition of inflation is an expansion of the currency supply. Rising prices are merely the symptom.

Our entire 'currency' supply is nothing but a few dollars whipped up in this scam where the Treasury and the Federal Reserve swap glorified IOUs and a bunch of numbers that the banks just type into their computers. That's it. That's our entire currency supply. It's a set of numbers. Some of them printed and most oft hem typed. There is nothing else.

But...we work for some of that 'currency' supply. True wealth is your time. Which we trade away hour by hour, day by day, week by week, year by year, for numbers that somebody printed on pieces of paper and punched into bank computers. We are what gives the 'currency' its value.

Here comes the bad part. We work hard so that we can save some of that 'currency' so that we can pay the 'tax' collector in the United States known as the IRS. They then turn it over to the Treasury so that the Treasury can pay the principal plus interest on that bond that the Federal Reserve bought with a check which is drawn on an account that has nothing in it.

So. Let us recap the third aspect of this process which I've explained because this is where the system begins to rob the poor, middle class and seniors on a massive scale.

Much of our taxes are not used on schools, roads, and public services. They're used to pay interest on bonds that the Federal Reserve bought with a check which was drawn on an account that has nothing in it.

Here, the Federal Reserve is committing fraud.

Recall that before the establishment of the Federal Reserve, the income tax was 0%. The Federal Reserve was created in 1913 and in that very same year, the Constitution was amended to allow the income tax via the 16th amendment by an unconstitutionl act of Congress. This was not coincidence.

The true solution is the practical view which is to to repeal th 16th and get back to a free market economy where the market tells the government what to do instead of the other way around, the socialist way we have now, where the government tells the market what to do. That's the actual 'conservative' solution. Ask yourself how much income tax you've paid over your lifetime and realize that much of it has been siphoned away by those who own the system.

We'll get to them after we learn the mumbo jumbo of the 'debt ceiling' delusion.

The debt ceiling delusion is based on a paradox.

Meaning there was interest due on that bond, and there was interest due on every one of those loans that the banks made. That means that there is interest due on every dollar in existence.

Let's ask a question. If you borrow the very first dollar in existence and you promise to pay it back plus another dollar's worth of interest, where do you get the second dollar to pay the interest? The answer is that you have to borrow that dollar into existence and promise to pay it back with interest as well. So, now there are 2 dollars in existence, but you now owe 4. And so on, and so on, and so on, and so on. It keeps happening over and over and over again. The result is that there is never enough 'currency' to pay the debt. There is always more debt in the system than there is 'currency' in existence to pay the debt. Therefore the entire system is impossible. It is finite. It will come to an end one day. Right now the dollar is 98% down from 1913. 98%. It'sworth 4 cents. What would happen if the government stopped borrowing to do deficit spending? Are the payments on those Treasury bonds going to stop? What would happen if the public stopped borrowing and going deeper into debt? Are your house and car payments going to stop? No. They're not. There is a payment due every month on the principal plus the interest on every dollar in existence and those payments do not stop. If we stop borrowing, then no new 'currency' is created to replace the 'currency' that we used to make those payments. Whether you're making a payment on a loan or paying a tax to make a payment on a Treasury bond, the portion of the payment that goes to pay off the principal extinguishes that portion of the debt. BUT...the debt also extinguishes the 'currency.' When currency and debt meet, they destroy each other. If we just pay off the principal only, all of the loans and Treasury bonds that exist, the entire 'currency' supply vanishes. So, if we don't go deeper into debt every year, the whole thing goes into a deflationary collapse under the weight of those payments.

People always talk about balancing the budget, bringing down the debt, and living within our means. But they don't understand that this is deflationary. It is impossible to do under our current monetary system without collapsing the entire economy. This is why any talk of a debt ceiling is not only ridiculous, it's delusional. The system is designed to require ever-increasing levels of debt just to continue. And that's why politicians will always kick the can down the road and raise the so-called debt ceiling over and over again until the whole system finally collapses under its own weight. In other words, they don't want it to collapse under their watch.

The founding fathers of the United States knew the dangers of central banking and they fought to free themselves from this very thing. The Revolutionary War started out as a tax revolt. But now we must pay tax just to have a monetary system. Having just suffered through the hyper-inflation of the continental dollar, which was printed into oblivion to fund the Revolutionary War, they understood the dangers of a debt based monetary system. So to protect future generations from institutional theft and out of control government, they wrote in the constitution that only gold and silver can be 'money' for the simple fact that you can't print it. Personally, I don't care what it is, but we need a competing currency if we're to survive. Our current system is not only unconstitutional, but it robs us of the liberty and prosperity that our forefathers fought and died for. And we're all feeling the effects of ignoring the Constitution right now. By forcing more currency into circulation our purchasing power is diluted. Inflation is a slow, insidious stealth tax that is simply the result of this debt based monetary system.

This system empowers those who create the currency and receive it first because they get to spend it into circulation before it has an effect on the economy.

They're stealing purchasing power from the poor, middle class, and seniors, and transferring it to the banks and the government every hour of every day of every week of every year. And the people at the top know it. To quote the Federal Reserve itself, ''The decrease in purchasing power incurred by holders of money due to inflation imparts gains to the issuers of money." This is a fraud. It is a pyramid scheme. It is a ponzi scheme. It is a scam. Our entire monetary policy is nothing more than a form of legalized theft.

Of course, the Federal Reserve is not Federal. It has stock holders. There is no federal agency that has stock holders. Now, what is a stock holder? A share of stock represents a share of ownership in a corporation. So, the stock holders are the owners of the corporation. Therefore, the Federal Reserve is a private corporation with owners. For reference, you may check their site. It specifically states that the stock holders receive an annual dividend of not more than 6%. Now, we know that the stock in the Federal Reserve was originally issued to the largest banks in the United States. With mergers and acquisitions through the years, you can't actually trace who owns the stock in the Federal Reserve. That's a very closely guarded secret. The best guess would be that they are those primary dealers. The banks that get to make a profit by selling part of our national debt, those bonds, to the Federal Reserve who buys them with a check that is drawn from an account with nothing in it. Then we pay tax to pay the principal and the interest on those bonds so that the Federal Reserve can pay the banks a 6% or less dividend. This is purposely complex and very few understand it. And that's okay. It's why people who do understand it take the time to explain it. Our system is Keynesian. And to quote Keynes, himself, ''By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft." Presented correctly, however, anyone can understand the system regardless of the complexity of it.

So. Let us recap the entire scam for the benefit of our tldr friends..

Step1: The politicians say ''Hey, vote for me because I'll make sure that the government provides you with more free stuff than my opponent say's he will.'

So to provide that supposed free stuff that they ran on, the politicians vote for the country to spend more than its income. To pay for that deficit spending the Treasury borrows 'currency' by issuing a bond. A bond, againm is an IOU. It's a piece of paper with numbers printed on it that says loan me a trillion dollars today and I promise that over a ten year period I will pay you back that trillion dollars. Plus interest. The government creates glorified IOUs via Treasury Bonds. These bonds increase our national debt and put the public on the hook to pay it back.

Step2: IOUs are swapped to create 'currency.' The Treasury sells the bonds to the banks. The banks then turn around and sell our national debt at a profit to the Federal Reserve, which they likely own. Again, the share holders receive annually a 6% or less dividend, this fluctuates. That data from the Fed's own webpage. The Federal Reserve then opens its checkbook which is drawn on an account that has nothing in it and buys those IOUs with their own IOW, in the form of that check which was drawn on an account which has nothing in it. They give those checks to the banks and 'currency' is created out of thin air. Then the whole process repeats over and over and over again. This results in a build-up of bonds at the Federal Reserve and a build-up of currency at the Treasury which is really just a supply of numbers. The Treasury then deposits the numbers into the various branches of the government and then we get to step 3.

Step 3: The government spends the numbers on promises, public works, social programs, and yes, preemptive war. Unconstitutional, undeclared, imperialist military occupation all over the world. Then government employees soldiers, military contractors, weapons manufacturers, and everybody else deposit their pay into the banks. Then we get to step 4.

Step 4: The banks multiply the numbers by magically creating more IOUs through fractional reserve lending where they steal a portion of everyone's deposit and lend it out. That 'currency' gets redeposited and then a portion is stolen again. And the process repeats over andover and over again, magnifying the currency supply exponentially. Then we the people work for some of those numbers. Which brings us to step 5 where our numbers are taxed.

Step 5: We pay tax to the IRS who then turns out numbers over to theTreasury so the Treasury can pay the principal plus the interest on bonds that were purchased by the Federal Reserve with a check which is drawn on an account that has nothing in it. Then we get to step 6. The debt ceiling delusion.

Step 6: The debt ceiling delusion.The system is designed to require ever-increasing levels of debt and will eventually collapse under its own weight because politicians and pundits always kick the can down the road so it doesn't happen on their watch. And finally, we get to step 7. Secret owners take their cut.

Step 7: The world's largest banks likely own the Federal Reserve. Those banks make a profit selling our national debt to the Federal Reserve. They make a profit when the Federal Reserve pays them interest on the reserves held at the Federal Reserve, and the Federal Reserve pays them a 6% or less dividend on their ownership of the Federal Reserve.

This system is fundamentally evil. It funnels wealth from the working population to the government and the banking sector. It is the cause of the artificial booms and busts of modern economies and it causes great disparity of wealth between the rich and the poor, middle class, and seniors. The working class. And it is only possible because we no longer use real money. We use 'currency.' It is a form of enslavement. Bond is the root word of bondage. Whenever a government issues a bond, it is a promise to make us pay tax in the future.

I'll leave you with a great quote from a letter from George Washington, written to James Madison on the topic. He said, and correctly so, ''No generation has the right to contract debts greater than can be paid off during the course of its own existence." By stealing from prosperity from tomorrow so that we can spend it today, we enslave ourselves and future generations.

This system relies in the public being ignorant to its function.

 

[Natural Citizen]

Does it have anything to do with our own participation in government?

Yeah. Keeping it strictly limited. Limited for Liberty!

 

[Oddball]

This system relies in the public being ignorant to its function.

He's entirely blissful in said ignorance...You just wasted a big text brick of truth...I'm tellin' ya, dude.

 

[danielpalos]

current right wing policy that separates cutting taxes from spending.

Alright. Let me explain how stuff works.

The politicians aren't running on the idea of spending less. They instead say ''vote for me because I'll make sure that the government provides you with more free stuff than my opponent say's he will.' Of course, there's no such as a free lunch, is there? Of course there isn't. So to provide that supposed free stuff that they ran on, the politicians vote for the country to spend more than its income.This is called deficit spending. To pay for that deficit spending the Treasury borrows currency by issuing a bond. A bond is an IOU. It's a piece of paper with numbers printed on it that says loan me a trillion dollars today and I promise that over a ten year period I will pay you back that trillion dollars. Plus interest.

But...Treasury bonds happen to be our national debt. The Treasury then holds a bond auction. And the world's largest banks show up and compete to buy part of our national debt and make a profit on it by earning interest. As we move through this process, the big banks are there taking a cut every step of the way. This is not by chance, which I'll explain.

Through a shell game called open market operations, the banks get to sell some of those bonds to the Federal Reserve, at a profit. How does the Federal Reserve pay the bonds? I'll tell you how. The Federal Reserve opens its 'checkbook' and writes bad, bogus, counterfeit checks that should bounce because it's drawn on an account that always has a zero balance. They're creating 'currency''. Which is different than ''money''. I'll get to that later. Of course, when you or I write a check, the money has to be in there. Right? To steal a quote from the Boston Federal Reserve's ''Putting it Simply", they say that ''When you or I write a check, there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check, there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating ''money.” The Federal Reserve then hands those checks to the banks and at this point ''currency'' springs into existence. The banks then take that ''currency'' and buy more bonds at the next Treasury auction. You see?

Now. What is a check? A check is also an IOU. When you write a check, you're making a note that says here's my IOU for cash, all you have to do is go to the bank and pick it up. This particular process is very important that you understand. Pay attention here, please, because we're gonna come back to this later in my long-winded post to explain how this affects you and I.

So. Before moving on, let's recap what we have thus far. The Treasury issues IOU bonds. The banks then buy those IOU bonds with ''currency.'' The Federal Reserve then writes IOU checks and hands them to the banks in exchange for the Treasury's IOU Bonds. Thus ''currency'' is created. What's really happening here is that the Federal Reserve and the Treasury are just swapping IOUs using the banks as middle men and, presto, ''currency'' magically comes into existence. This process repeats over and over and over and over and over again, enriching the banks and indebting the public by raising the national debt. The end result is that there is a build-up of bond at the Federal Reserve and 'currency' at the Treasury. This process is where all paper ''currency'' comes from. The Federal Reserve and the government incorrectly call it ''base money'' because they don't know the difference between ''money'' and ''currency.'' It's correctly called ''base currency'' because it is not ''money.'' It is ''currency.''

''Money'' has to be a store of value and maintain its purchasing power over long periods of time.'

But the base currency that is piling up as a consequence of the process which I've explained is nothing more than a receipt for a claim check on an IOU bond. So it's really nothing but a supply of numbers. So, then the Treasury now deposits the newly created ''currency'' into the various branches of the government and the politicians I mentioned in the very sentence here who were claiming they were going to give you free stuff say, 'hey thanks for that.'' Then the government does some deficit spending on public works, social programs, and, of course, their wars, to include paying weapons manufacturers and contractors, along with the soldiers' pays. The government employees, contractors, and soldiers then deposit their pay in the banks.

Now. When they deposit this ''currency'' into the bank, they're not actually depositing it into an account to be held safely in trust to them.

Instead, you're actually loaning the bank your ''currency'' and they can do pretty much whatever they please with it to include gambling in the stock market, and loaning it out at a profit, of course. This is where the process of ''currency'' really gets cranking.

This is where fractional reserve lending comes into play.

Now, what does that mean? It means precisely what it says. It means that the banks reserve only a fraction of your deposit and they loan the rest out. Though rates vary, I'll use a 10% ratio here to explain the process. If you deposit 100 'dollars' into your account, the bank legally takes 90 'dollars' of it out and loans it out without telling you. The bank must hold 10 'dollars' of your deposit in reserve just in case you want some of it. These reserves are called 'vault cash.' Now, why does your bank account still say that you have 100 'dollars' if they stole 90 of it? It's because the bank left IOUs that it created called 'bank credit' in its place. That's why. To reference the Federal Reserve Bank of New York, they say that "Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars in accounts on their books in exchange for a borrower's IOU." End quote. These are nothing but numbers that the banks type into their computers. And even though these 'bank credit' IOU numbers are very different from 'base currency' numbers, because they only exist in computers, they are still 'currency.' So now there is 190 dollars in existence. Created out of the 100 dollars deposited. You see?

Of course, the reason people take out loans from the bank is to buy something. So the borrower takes the 90 'dollars' that the bank loaned to him from your account and he pays the seller of the item. Then the seller deposits that money into his account and his bank loans out 90% of that 'currency' and leaves 'bank credits' in its place. So now theres' 271 'dollars' in existence from the original 90. This process repeats and repeats and repeats until it's under a 10% reserve ratio and all backed by 100 'dollars' of 'vault cash." Of course, some rates of deposits are only 3%. Some are 0%. The result is the expansion of the 'currency' supply by the banks. Of course, 'currency' is not 'money.'

So let us recap the second aspect of the process which I've just explained. When 'currency' is deposited into the banks, the banks get to lend it out and then it gets redeposited and lent out again, over and over and over again creating 'bank credit' all along the way. This is where the vast supply of our 'currency' comes from. In fact around 96% of all 'currency' that is created is created by the banking system.

Now. At first, massive amounts of 'currency' spewing into society might sound like a fun idea. At least until you remember that the prices of every day goods and services act as a sponge on an expanding 'currency' supply.

The more 'currency' we have, the more prices will rise. This is where 'inflation' comes from. The true definition of inflation is an expansion of the currency supply. Rising prices are merely the symptom.

Our entire 'currency' supply is nothing but a few dollars whipped up in this scam where the Treasury and the Federal Reserve swap glorified IOUs and a bunch of numbers that the banks just type into their computers. That's it. That's our entire currency supply. It's a set of numbers. Some of them printed and most oft hem typed. There is nothing else.

But...we work for some of that 'currency' supply. True wealth is your time. Which we trade away hour by hour, day by day, week by week, year by year, for numbers that somebody printed on pieces of paper and punched into bank computers. We are what gives the 'currency' its value.

Here comes the bad part. We work hard so that we can save some of that 'currency' so that we can pay the 'tax' collector in the United States known as the IRS. They then turn it over to the Treasury so that the Treasury can pay the principal plus interest on that bond that the Federal Reserve bought with a check which is drawn on an account that has nothing in it.

So. Let us recap the third aspect of this process which I've explained because this is where the system begins to rob the poor, middle class and seniors on a massive scale.

Much of our taxes are not used on schools, roads, and public services. They're used to pay interest on bonds that the Federal Reserve bought with a check which was drawn on an account that has nothing in it.

Here, the Federal Reserve is committing fraud.

Recall that before the establishment of the Federal Reserve, the income tax was 0%. The Federal Reserve was created in 1913 and in that very same year, the Constitution was amended to allow the income tax via the 16th amendment by an unconstitutionl act of Congress. This was not coincidence.

The true solution is the practical view which is to to repeal th 16th and get back to a free market economy where the market tells the government what to do instead of the other way around, the socialist way we have now, where the government tells the market what to do. That's the actual 'conservative' solution. Ask yourself how much income tax you've paid over your lifetime and realize that much of it has been siphoned away by those who own the system. We'll get to them after we learn the mumbo jumbo of the 'debt ceiling' delusion.

The debt ceiling delusion is based on a paradox.

Meaning there was interest due on that bond, and there was interest due on every one of those loans that the banks made. That means that there is interest due on every dollar in existence.

Let's ask a question. If you borrow the very first dollar in existence and you promise to pay it back plus another dollar's worth of interest, where do you get the second dollar to pay the interest? The answer is that you have to borrow that dollar into existence and promise to pay it back with interest as well. So, now there are 2 dollars in existence, but you now owe 4. And so on, and so on, and so on, and so on. It keeps happening over and over and over again. The result is that there is never enough 'currency' to pay the debt. There is always more debt in the system than there is 'currency' in existence to pay the debt. Therefore the entire system is impossible. It is finite. It will come to an end one day. Right now the dollar is 98% down from 1913. 98%. It'sworth 4 cents. What would happen if the government stopped borrowing to do deficit spending? Are the payments on those Treasury bonds going to stop? What would happen if the public stopped borrowing and going deeper into debt? Are your house and car payments going to stop? No. They're not. There is a payment due every month on the principal plus the interest on every dollar in existence and those payments do not stop. If we stop borrowing, then no new 'currency' is created to replace the 'currency' that we used to make those payments. Whether you're making a payment on a loan or paying a tax to make a payment on a Treasury bond, the portion of the payment that goes to pay off the principal extinguishes that portion of the debt. BUT...the debt also extinguishes the 'currency.' When currency and debt meet, they destroy each other. If we just pay off the principal only, all of the loans and Treasury bonds that exist, the entire 'currency' supply vanishes. So, if we don't go deeper into debt every year, the whole thing goes into a deflationary collapse under the weight of those payments.

People always talk about balancing the budget, bringing down the debt, and living within our means. But they don't understand that this is deflationary. It is impossible to do under our current monetary system without collapsing the entire economy. This is why any talk of a debt ceiling is not only ridiculous, it's delusional. The system is designed to require ever-increasing levels of debt just to continue. And that's why politicians will always kick the can down the road and raise the so-called debt ceiling over and over again until the whole system finally collapses under its own weight. In other words, they don't want it to collapse under their watch.

The founding fathers of the United States knew the dangers of central banking and they fought to free themselves from this very thing. The Revolutionary War started out as a tax revolt. But now we must pay tax just to have a monetary system. Having just suffered through the hyper-inflation of the continental dollar, which was printed into oblivion to fund the Revolutionary War, they understood the dangers of a debt based monetary system. So to protect future generations from institutional theft and out of control government, they wrote in the constitution that only gold and silver can be 'money' for the simple fact that you can't print it. Personally, I don't care what it is, but we need a competing currency if we're to survive. Our current system is not only unconstitutional, but it robs us of the liberty and prosperity that our forefathers fought and died for. And we're all feeling the effects of ignoring the Constitution right now. By forcing more currency into circulation our purchasing power is diluted. Inflation is a slow, insidious stealth tax that is simply the result of this debt based monetary system.

This system empowers those who create the currency and receive it first because they get to spend it into circulation before it has an effect on the economy.

They're stealing purchasing power from the poor, middle class, and seniors, and transferring it to the banks and the government every hour of every day of every week of every year. And the people at the top know it. To quote the Federal Reserve itself, ''The decrease in purchasing power incurred by holders of money due to inflation imparts gains to the issuers of money." This is a fraud. It is a pyramid scheme. It is a ponzi scheme. It is a scam. Our entire monetary policy is nothing more than a form of legalized theft.

Of course, the Federal Reserve is not Federal. It has stock holders. There is no federal agency that has stock holders. Now, what is a stock holder? A share of stock represents a share of ownership in a corporation. So, the stock holders are the owners of the corporation. Therefore, the Federal Reserve is a private corporation with owners. For reference, you may check their site. It specifically states that the stock holders receive an annual dividend of not more than 6%. Now, we know that the stock in the Federal Reserve was originally issued to the largest banks in the United States. With mergers and acquisitions through the years, you can't actually trace who owns the stock in the Federal Reserve. That's a very closely guarded secret. The best guess would be that they are those primary dealers. The banks that get to make a profit by selling part of our national debt, those bonds, to the Federal Reserve who buys them with a check that is drawn from an account with nothing in it. Then we pay tax to pay the principal and the interest on those bonds so that the Federal Reserve can pay the banks a 6% or less dividend. This is purposely complex and very few understand it. And that's okay. It's why people who do understand it take the time to explain it. Our system is Keynesian. And to quote Keynes, himself, ''By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft." Presented correctly, however, anyone can understand the system regardless of the complexity of it.

So. Let us recap the entire scam for the benefit of our tldr friends..

Step1: The government creates glorified IOUs via Treasury Bonds. These bonds increase our national debt and put the public on the hook to pay it back.

Step2: IOUs are swapped to create 'currency.' The Treasury sells the bonds to the banks. The banks then turn around and sell our national debt at a profit to the Federal Reserve, which they likely own. Again, the share holders receive annually a 6% or less dividend, this fluctuates. That data from the Fed's own webpage. The Federal Reserve then opens its checkbook which is drawn on an account that has nothing in it and buys those IOUs with their own IOW, in the form of that check which was drawn on an account which has nothing in it. They give those checks to the banks and 'currency' is created out of thin air. Then the whole process repeats over and over and over again. This results in a build-up of bonds at the Federal Reserve and a build-up of currency at the Treasury which is really just a supply of numbers. The Treasury then deposits the numbers into the various branches of the government and then we get to step 3.

Step 3: The government spends the numbers on promises, public works, social programs, and yes, preemptive war. Unconstitutional, undeclared, imperialist military occupation all over the world. Then government employees soldiers, military contractors, weapons manufacturers, and everybody else deposit their pay into the banks. Then we get to step 4.

Step 4: The banks multiply the numbers by magically creating more IOUs through fractional reserve lending where they steal a portion of everyone's deposit and lend it out. That 'currency' gets redeposited and then a portion is stolen again. And the process repeats over andover and over again, magnifying the currency supply exponentially. Then we the people work for some of those numbers. Which brings us to step 5 where our numbers are taxed.

Step 5: We pay tax to the IRS who then turns out numbers over to theTreasury so the Treasury can pay the principal plus the interest on bonds that were purchased by the Federal Reserve with a check from nothing. Then we get to step 6. The debt ceiling delusion.

Step 6: The debt ceiling delusion.The system is designed to require ever-increasing levels of debt and will eventually collapse under its own weight because politicians and pundits always kick the can down the road so it doesn't happen on their watch. And finally, we get to step 7. Secret owners take their cut.

Step 7: The world's largest banks likely own the Federal Reserve. Those banks make a profit selling our national debt to the Federal Reserve. They make a profit when the Federal Reserve pays them interest on the reserves held at the Federal Reserve, and the Federal Reserve pays them a 6% or less dividend on their ownership of the Federal Reserve.

This system is fundamentally evil. It funnels wealth from the working population to the government and the banking sector. It is the cause of the artificial booms and busts of modern economies and it causes great disparity of wealth between the rich and the poor, middle class, and seniors. The working class. And it is only possible because we no longer use real money. We use 'currency.' It is a form of enslavement. Bond is the root word of bondage. Whenever a government issues a bond, it is a promise to make us pay tax in the future.

I'll leave you with a great quote from a letter from George Washington, written to James Madison on the topic. He said, and correctly so, ''No generation has the right to contract debts greater than can be paid off during the course of its own existence." By stealing from prosperity from tomorrow so that we can spend it today, we enslave ourselves and future generations.

This system relies in the public being ignorant to its function.

fundamentals matter under Capitalism. spending has to be accounted for.

 

[danielpalos]

This system relies in the public being ignorant to its function.

He's entirely blissful in said ignorance...You just wasted a big text brick of truth...I'm tellin' ya, dude.

nothing but fallacy is what some on the right wing consider "valuable".

 

[Tehon]

Does it have anything to do with our own participation in government?

Yeah. Keeping it strictly limited. Limited for Liberty!

That basic understanding is crucial to the discussion about liberalism. You and Mises have to deal with it first because each individual has different needs and desires.

 

[Votto]

As time has passed, many nouns and descriptions have become so over-used as to have at best very vague meanings.
'Right' and 'left' originally referred to positions with a monarch at the center. Today, what do 'right' and 'left' mean? In relation to what do they derive their orientation?

We have been lied to. Surprise, surprise. I know.

We have been given a false political spectrum, one with Stalin to the Left and Hitler to the Right, when in reality, they are one in the same.

The real political spectrum should be about collectivism vs. individual liberty. I would note that anarchism, however, leads directly to the other side of the spectrum, whish is why I think many Left wingers tend to go that direction.

The issue is, how to maintain a civil society with the least amount of government interference.

For the Left, however, we are just lab rats to be experimented with and cattle to be herded around. With such thinking, individual freedom causes unfairness, harm to the environment, and bad thinking, which is why a wide range of strategies, such as political correctness and passing some 40,000 new laws and regulations in the US every year, is key to curbing the sins of individual freedom.

Naturally guns need to go. No one should have such freedom to do harm to another, unless, of course, we are discussing cutting an unborn child out of the womb and throwing it in the dumpster, but I think that is only common sense.

 

[Natural Citizen]

fundamentals matter under Capitalism. spending has to be accounted for.

You clearly didn't read what I typed. Show some gosh darned respect the next time I go out of my way to type a long winded, thorough, explanation like that for your personal benefit. I was trying to help you understand your own question and you didn't even read it?

Get outta here. Hit the bricks.

 

[danielpalos]

As time has passed, many nouns and descriptions have become so over-used as to have at best very vague meanings.
'Right' and 'left' originally referred to positions with a monarch at the center. Today, what do 'right' and 'left' mean? In relation to what do they derive their orientation?

We have been lied to. Surprise, surprise. I know.

We have been given a false political spectrum, one with Stalin to the Left and Hitler to the Right, when in reality, they are one in the same.

The real political spectrum should be about collectivism vs. individual liberty. I would note that anarchism, however, leads directly to the other side of the spectrum, whish is why I think many Left wingers tend to go that direction.

The issue is, how to maintain a civil society with the least amount of government interference.

For the Left, however, we are just lab rats to be experimented with and cattle to be herded around. With such thinking, individual freedom causes unfairness, harm to the environment, and bad thinking, which is why a wide range of strategies, such as political correctness and passing some 40,000 new laws and regulations in the US every year, is key to curbing the sins of individual freedom.

Naturally guns need to go. No one should have such freedom to do harm to another, unless, of course, we are discussing cutting an unborn child out of the womb and throwing it in the dumpster, but I think that is only common sense.

our alleged wars on crime, drugs, and terror are right wing initiatives.

 

[danielpalos]

fundamentals matter under Capitalism. spending has to be accounted for.

You clearly didn't read what I typed. Show some gosh darned respect the next time I go out of my way to type a long winded, thorough, explanantion like that for your personal benefit. I was trying to help you understand your own question and you didn't even read it?

Get outta here. Hit the bricks.

nothing but diversion with a wall of text. how serious are you regarding an alleged work ethic from the Age of Iron concerning learning how to fish? red herrings are fallacies, not nutritious.

 

[Natural Citizen]

He's entirely blissful in said ignorance...You just wasted a big text brick of truth...I'm tellin' ya, dude.

Seems so. Some people....

 

[Votto]

As time has passed, many nouns and descriptions have become so over-used as to have at best very vague meanings.
'Right' and 'left' originally referred to positions with a monarch at the center. Today, what do 'right' and 'left' mean? In relation to what do they derive their orientation?

We have been lied to. Surprise, surprise. I know.

We have been given a false political spectrum, one with Stalin to the Left and Hitler to the Right, when in reality, they are one in the same.

The real political spectrum should be about collectivism vs. individual liberty. I would note that anarchism, however, leads directly to the other side of the spectrum, whish is why I think many Left wingers tend to go that direction.

The issue is, how to maintain a civil society with the least amount of government interference.

For the Left, however, we are just lab rats to be experimented with and cattle to be herded around. With such thinking, individual freedom causes unfairness, harm to the environment, and bad thinking, which is why a wide range of strategies, such as political correctness and passing some 40,000 new laws and regulations in the US every year, is key to curbing the sins of individual freedom.

Naturally guns need to go. No one should have such freedom to do harm to another, unless, of course, we are discussing cutting an unborn child out of the womb and throwing it in the dumpster, but I think that is only common sense.

our alleged wars on crime, drugs, and terror are right wing initiatives.

For the conservative, the issue is on how to keep a civil society.

IF people are dying to the tune of 200 per day, with street violence to boot and with a huge burden on the medical community, at what point does society need to draw and line and say that measures need to be taken?

The same can be said of guns, only, more than double of the nation deaths are caused by illegal drugs than guns. In addition, much of the gun violence is caused by illicit drugs.

The role of government should be maintaining a civil society, but not running the said society. If it were not for keeping law and order, government has no real legitimate function.

Now if gun violence gets to the same levels then perhaps something needs to be done about that as well.

As Ben Franklin aptly said, individual freedom hinges on individual morality. Once people become incapable of governing their own morality, then the government is forced to do it for them. Tyranny stems from such societies. After all, if you had a nation full of convicts, all that can be done is build a wall around them and hire a warden.

Morality is the key to maintaining a civil society apart from tyranny, which is why I think many on the Left are hell bent on destroying morality. We see them yank prayer out of schools only to be replaced by gun violence and we wonder what went wrong.

As for Ben Franklin, he was convinced that the morality of society would eventually devolve into tyranny as all world societies had done beforehand.

Perhaps its just our nature.

 

[there4eyeM]

Truly, Stalin and Hitler were simply authoritarians who used convenient language to hypnotize the masses. They practiced no ideology. They practiced a cult of personality and power-centralizing.
Marxism is, nonetheless, 'left' in that it puts ownership/power with the populace. Fascism is 'right' because it puts the state at the center of existence.
Money has value because humans ascribe value to it. Humans are the source of value, since they decide what it is. Value is not something that has an independent existence somewhere in the universe
The major problem with modern society is the failure to fully integrate what we now know to be true about the mind, language and physics. In general, things still operate at the level of consciousness at the beginning of the Renaissance (and that's being generous).

 

[Votto]

Truly, Stalin and Hitler were simply authoritarians who used convenient language to hypnotize the masses. They practiced no ideology. They practiced a cult of personality and power-centralizing.
Marxism is, nonetheless, 'left' in that it puts ownership/power with the populace. Fascism is 'right' because it puts the state at the center of existence.
Money has value because humans ascribe value to it. Humans are the source of value, since they decide what it is. Value is not something that has an independent existence somewhere in the universe
The major problem with modern society is the failure to fully integrate what we now know to be true about the mind, language and physics. In general, things still operate at the level of consciousness at the beginning of the Renaissance (and that's being generous).

How does Marxism put ownership/power with the people? From all cases I have seen, it gives the power to the state instead.

Marxism/socialism/ fascism, etc., are all one in the same in that they are at war with free trade and the individual. It is just one more freedom that collectivists take from us because are too "bad" with the freedom of having our own money to earn and spend, so it must be redistributed "fairly" for us because we are not righteous enough to do it on our own.

 

[Votto]

I think that the reason the Left wants to legalize or decriminalize illicit drug use and encourage them with clean needles and a never ending entitlement system to feed them, and keep the borders open where drugs are freely coming across, etc., is that they wish to embrace immorality and the destruction of society, which will lead to tyranny once people turn to government for salvation from the chaos

 

[Tehon]

How does Marxism put ownership/power with the people? From all cases I have seen, it gives the power to the state instead.

You lack a fundamental understanding of Marxs theories. Naturally you have no basis for understanding what you have seen and you erroneously apply it to Marx.

 

[Oddball]

Marxism is, nonetheless, 'left' in that it puts ownership/power with the populace.