"Specifically, the most persistent and destructive myth of our current political times is that the U.S. government must collect taxes from its citizens—or borrow Dollars from them—in order for the federal government to have Dollars to spend." "Banks create the nation’s money If you hold the belief that banks create the nation’s money when they make loans—the loans being used to generate the profits, interest and wages which create the citizen’s wealth—then you must logically conclude that, in order for the sovereign government to obtain some of those U.S. Dollars for its own spending, it has no choice but to obtain the necessary Dollars from the citizens either through taxation, or through borrowing. The sovereign government, from this perspective, has no other significant source of revenue. While this seems like a reasonable perception, it conveniently overlooks the actual mechanisms of the U.S. Reserve Banking System. In fact, when a bank makes a loan, the “dollars” it creates and deposits in the borrower’s account are not sovereign U.S. Dollars, but are bank I.O.U.s. If the borrower decides to withdraw the bank I.O.U.s from his account (through the ATM, for example), the bank promises to instantly convert those I.O.U.s into the real thing: sovereign U.S. Dollars. And where does the bank get the sovereign U.S. Dollars it needs to make its promised conversion? It borrows them from the Federal Reserve—the Central Bank of the sovereign government—which issues the necessary real Dollars and deposits them in the bank’s reserve account at the FED. In other words, it is the sovereign government (acting through its Central Bank) which creates all of the U.S. Dollars that exist in our economy. By law, anyone else who tries to create a sovereign U.S. Dollar is a counterfeiter. While more complicated layers and actions are involved, this is the essence of how the Reserve Banking System and the U.S. monetary system function—with the critical point being that it is the sovereign government which issues the U.S. currency. (It literally can come from no other source!) This, then, raises a crucial question—again, conveniently ignored by the mainstream doctrine and media: If it is true the sovereign government has the exclusive power to issue U.S. Dollars simply by issuing them, then why is it logical for the sovereign government to collect taxes? What does it need the tax dollars for? If it needs to spend a Dollar, why doesn’t it simply issue a Dollar and spend it? The truth, which the political and economic leadership refuses to acknowledge, is that this, in fact, is exactly what does occur: The sovereign government issues Dollars, and then spends those dollars to buy from the citizens goods and services which create a public benefit. (Like a satellite GPS system, for example.) It then turns around and collects some of those Dollars back in taxes. But why? Obviously, it doesn’t need those Dollars for spending, so why does it collect them? The answer is probably the most ingenious social tool every invented—and is likely the chief reason why human civilization, with its unique system of monetary economics, has grown to dominate the ecosystems of the Earth." neweconomicperspectives.org/2013/08/doctrine-of-mathematical-impossibilities.html#more-5971
Posted on: Sat, 10 Aug 2013 14:31:28 +0000
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