Well, don't feel too bad. Very few people understand the mechanics of how the government spends money and how the whole "system" really works.
There was a time when the idea that people have in their heads, about like the whole "bank account" thing made some degree of sense. When the US was under a specie currency system (backed by Gold), it effectively worked the way people thought because the monetary supply was tethered to a peg that didn't move particularly quickly (the supply of Gold in the US federal reserve and at Fort Knox).
Nixon's decision to take the US off the Gold Standard was driven by a liquidity crisis in the US economy. To halt it, Nixon decoupled the US from the gold standard. We further hastened this process by ending the minting of silver coinage (which is unfortunate because if we hadn't, I suspect inflation would have slowed just a bit).
The way it works now is as I described it. Warrants. Money created by expenditures, etc. The purpose of taxation is to determine winners and losers -- not to fund operations.
That was always the case, however, prior to 1971 (and some argue before then), the balance between constraints on the US government and the US citizen were more balanced. Now, the entire risk is placed on the citizen, no restraint on the government. That's the change. That's why I claim confidently, taxes pay for nothing.
I heard you a year ago. In anticipation of all of this, I made two significant strategic decisions just prior to today. I'd like to share them with you, but better safe than sorry. Maybe when the coast is clear.
holy fucking assballs. I've been living under a rock!
LOL!
Well, don't feel too bad. Very few people understand the mechanics of how the government spends money and how the whole "system" really works.
There was a time when the idea that people have in their heads, about like the whole "bank account" thing made some degree of sense. When the US was under a specie currency system (backed by Gold), it effectively worked the way people thought because the monetary supply was tethered to a peg that didn't move particularly quickly (the supply of Gold in the US federal reserve and at Fort Knox).
Nixon's decision to take the US off the Gold Standard was driven by a liquidity crisis in the US economy. To halt it, Nixon decoupled the US from the gold standard. We further hastened this process by ending the minting of silver coinage (which is unfortunate because if we hadn't, I suspect inflation would have slowed just a bit).
The way it works now is as I described it. Warrants. Money created by expenditures, etc. The purpose of taxation is to determine winners and losers -- not to fund operations.
That was always the case, however, prior to 1971 (and some argue before then), the balance between constraints on the US government and the US citizen were more balanced. Now, the entire risk is placed on the citizen, no restraint on the government. That's the change. That's why I claim confidently, taxes pay for nothing.
Thanks for the extra clarity. As soon as my neural network reboots, I'll just be living under a shrub.
I heard you a year ago. In anticipation of all of this, I made two significant strategic decisions just prior to today. I'd like to share them with you, but better safe than sorry. Maybe when the coast is clear.