A Quick Word on Taxes
A quick word on taxes First things first we have a sovereign, non-convertible, free floating fiat currency that is backed by an obligation: taxation. Second: no one says we can just "print da muney"... all dollars are merely a tax IOU and are created by keystrokes. The birth of a DOLLAR is congressional spending and the death of the DOLLAR is taxation Third: QE is not creating money. It is merely swapping debt for liquidity. Banks do not lend reserves... so even a cursory understanding of the hierarchy of money would be excellent. 4th: taxes do not fund spending at the federal level but they do at the state level. This is universally true. Greece is a currency user. Puerto Rico is a currency user. Flint Michigan is a currency user. They are dependent on taxes and investments to fund their operations. The USA, The UK, Australia, Russia, Canada, China and Japan for example are currency issuers. They are state driven fiat currencies. They are each MONETARILY SOVEREIGN. Some are fixed to a gold peg. Some are fixed to a dollar peg... all are fixed to a tax obligation that gives value to the currency The dollar is not backed by oil. It is backed by the tax that drives it. It is constrained only by real resources and not solvency. Money creation occurs with every single dollar the Federal government spends. An actual new net financial asset. Everytime a dollar in taxes is handled via end of year or quarter returns, accounts are adjusted... tax dollars DELETED. The real constraint on government spending is found in the following conditions 1. Are we at full employment ? No? Then the deficit is not large enough. 2. Are we a net importer or net exporter? In other words, do we have a current accounts deficit? If so, the federal spendimg deficit is not large enough. 3. What is the level of private debt? Do Americans have any disposable income at all? If the private debt is too high, then we need to offset it with spending on the 99% or we will go into recession. I could go on and on... perhaps this was helpful... if not... there are good resources in the links below. Debunking economic lies helps you put the false MSM and conspiracy narratives in thwir place because they are lethal to progress. They have their foundations not in Marx but neoliberal fairy tales. Sometimes it is just better to be a student and not presume to teach. #LEARNMMT MMT/Monetary Sovereignty Links Can we print our way out of 'debt': http://www.bloomberg.com/news/videos/... Monetary Sovereignty is the foundation of economics, by Rodger Malcolm Mitchell: https://mythfighter.com/2010/08/13/mo... 7 Deadly Innocent Frauds, by Warren Mosler: http://moslereconomics.com/wp-content... Money Growth Does Not Cause Inflation: http://www.forbes.com/sites/johntharv... Taxes for revenue are obsolete, by William K. Black: http://neweconomicperspectives.org/20... Taxpayers don’t fund anything: http://bilbo.economicoutlook.net/blog... What taxes are for?: http://neweconomicperspectives.org/20... J.D. Alt’s “The Millennials' Money”: • The Millennials' Money How to Pay for Jill Stein’s Student Debt Forgiveness Plan: http://www.marketwatch.com/story/john... Replacing budget constraint with Inflation constraint: http://neweconomicperspectives.org/20... Get to know: Steven Hail Ellis Winningham Bill Mitchell Fadhel Kaboub Stephanie Kelton L Randall Wray William Black James Galbraith Rodger Malcolm Mitchell Warren Mosler JD Alt Joseph Firestone Steve Keen Raul Carillo Rohan Grey Scott Fullwiler And many more YouTube HD: Periscope: https://www.periscope.tv/RealProgressUS Sign-up for Real Progressives https://bit.ly/signup-rp Help Fund Real Progressives / realprogressives Write for Real Progressives http://www.realprogressivesusa.com/pa... Like our pages: Facebook: / realprogressive YouTube: / realprogressivesus Periscope: https://www.periscope.tv/RealProgressUS Twitter: / realprogressus Instagram: / realprogressives #ItsInOurHands #WeAreTheMedia #WeAreTheRevolution #RealProgressives
