Fiat economics 101: What is money

 

Richard Light

 

11-26-16

 

 

 

What is money?

 

1)      a current medium of exchange

 

               Meaning simply, money is the paper, coin, or digital exchange that represents our labor and or property; money is an easily made and easily regulated form of physical representation for the intangible idea that labor, time, and property belong to one person and should be exchangeable, tradable, or donatable to another person or entity.

 

               Money is known as “fiat” meaning it is not worth the material it is printed on and is hence only as valuable as the concept of its value (unlike gold or silver). The worth of money is governed by the printing entity (usually a government) and fluctuates by the amount of fiat currency within a system of exchange. If a system has too much fiat currency, the value of it goes down and it costs more to buy things or labor.

 

               The dollar as we know it is printed by the U.S. treasury and is loaned out or taken in by the federal reserve (a private bank). The loaning of new money from the federal reserve to banks adds money to the banks for loans to people (lowering the value of the dollar, decreasing what money is worth, and making money you have or make worth less). Conversely, when the federal reserve recollects money from banks, the value of your money goes up (your bank account is worth more, your hourly wage is worth more, and the money you spend can buy more).

 

               Because we use a fiat monetary system, the power of the dollar is highly controlled, easily manipulated, and dangerously fragile. Should the federal reserve increase the flood of fiat currency into the system (say for instance it gave out a million dollars to everybody) the value of the dollar would become worthless.

 

               Economic theories begin here: two main factions of thinking exist based on the above information being carried into the real-life system of loans, spending, and growth.

 

1.       Keynesian economics: The idea that every dollar that is loaned out from the federal reserve ripples into more than one dollar within the economy.

 

2.       Austrian economics: The idea that every dollar that is loaned out from the federal reserve profits ideas that should have failed when they ran out of money.

 

The core difference is that Austrian economists believe that fiat money makes people’s savings accounts diminish over time, companies and banks which should have gone broke from failed ideas would go broke if not propped-up by fiat money, and intergenerational debt is created through the system of fiat currency.

 

Keynesian economists believe that constant inflation ( which the federal reserve maintains at at-least 2%) ensures that new workers can have access to new wealth, fiat currency cycles through the economy in an overlapping fashion (which means the dollar is worth several dollars as it is used several times), and that the control over inflation and wealth through the federal reserve ensures an economic collapse cannot occur.

 

               The debate on economics will continue and both sides will continue to be right and wrong. As with most ideologies, somewhere between the two is usually where we end up and coincidentally, it is where we flourish. This passage is not all inclusive, nor is it in your best interests to stop learning after a basic introduction; read more, learn more.

 

 

 

 

 

 

 

 

Fiat Economics 102: What is labor/time?

 

Richard Light

 

11-26-16

 

 

 

If we recall from Fiat Economics 101, fiat money is the physical manifestation of a medium used for trading labor and/or property for property and/or labor. We quite literally use our time dedicated to work toward earning banknotes which we trade for stuff.

 

The concept which is often lost in this discussion is that work = time:

 

               Work is an application of the worker’s time (something we can never get back) traded for money. Our time is invaluable as every second we lose in life can never be recovered, sending us closer to death and never offering us more life than we had one second ago.

 

               Compensation for our time is an endless debate:

 

·        Some theorists believe people should be compensated for time at equal rates regardless of the toughness or productivity of our work. See Communism.

 

·        Some theorists believe people should be compensated for time based on how valuable our work is. See Capitalism.

 

·        Some theorists believe people should be compensated for time whether productive, self-serving, or idle. See Socialism.

 

·        Some theorists believe people should not be compensated and that all labors should be spent toward the betterment of society as whole. See Marxism.

 

 

 

The main theories have little in common. Marxists believe that your labor (your time) belongs to everyone. Socialists believe that not everyone should work but that everyone deserves some reward from the labors (time) of those that do work. Communists believe that all people should work hard but hard work should only benefit society, as a whole. Capitalists believe that if you work and donate your time, you should receive compensation for it and be entitled to keep what you worked for.

 

The themes are consistent in all forms of economic ideology: people work and work creates wealth. The differences are firmly set in who profits from the time people use of their lives to work. What is consistent is that those who work the most (using hours of their lives they will never have back) tend to want compensation for their time while those who do not work (keeping their time for themselves) tend to expect compensation from others’ labors (time).

 

As with all systems of ideology, we live in a hybrid system; labor is compensated to the worker and the non-worker. Time given and lost by the worker is divided between themselves and society. The debate we tend to have is: how much of someone’s labor (time) is another person entitled to?

 

 

 

 

 

Fiat Economics 103: What are taxes?

 

Richard Light

 

11-26-16

 

 

 

Tax: a financial charge or other levy imposed upon a taxpayer (an individual or legal entity) by a state (Government) or the functional equivalent of a state (Government) to fund various public expenditures. A failure to pay, or evasion of or resistance to taxation, is usually punishable by law.

 

There are several types of taxes:

 

·        Income tax: a portion of workers’ labor (time). See Fiat Economics 102

 

·        Property tax: a portion of home owner’s property. See Fiat Economics 101

 

·        Sales tax: a portion of property which has changed hands from one human to another.

 

·        Payroll taxes: ‘income tax’, renamed and taken so the laborer does not see the bill.

 

·        Consumption tax: ‘sales tax’, renamed and taken from the purchaser rather than the seller.

 

·        Capitation: a fixed, perpetual cost for living or providing/using a service.

 

 

 

Taxes other than Capitation (a rare form of taxation promoted and used in the healthcare industry) are radically different in who pays them, how they are generated, and what they are used for. This lesson is not about government spending and thus only focusses on the generation of taxes.

 

Income tax: Having all of your labor (time) taken from you for the benefit of someone other than you is called slavery. Having some of your labor taken from you to benefit someone other than you is called income tax. The concept of income tax is often a battle between workers and non-workers as workers (people who give up their time to labor) are taxed, while people who do not work (people who do not give up their time to labor) are not forced to donate labor (time) to others.

 

The battle over income tax has clear reasoning as an unfair and biased tax. In a Capitalist or Socialist system (See Fiat Economics 102) a limited portion of society is forced to labor (donate their time) while the other portion is not; this imbalance creates tension as one person is forced to work for others while another person works for no one; both people receive compensation yet only one loses their life’s limited time while the other loses nothing.

 

Property tax: Property is a finite commodity (there is only a certain amount). People reside on property whether they own the property or not. Renters and home owners both pay property tax (homeowners pay this directly while renters pay this through their landlord).

 

Several forms of property tax exist. Zoning is a community level regulation dictating what types of housing or businesses may be built, occupied, or run on select properties within a community. Some properties pay more in taxes (such as waterfronts and some businesses), while other properties pay less or none at all (Churches, swampland, woodlots, and incentivized businesses). Regardless of which properties are taxed and not taxed, the cost of the community as a whole is paid for by the generation of property taxes. The measures which determine the costs of property tax are equal for equally valued and zoned properties.

 

Sales tax: Transferring property from one person to another is taxed at varied levels depending on the type of property, the location of the transfer, the amount of property transferred, and sometimes other factors. Sales tax affects only those who transfer property through a fiat currency exchange which is monitored by the governing entity; private transfers of property which are not monitored or reported to any authority or fiat-regulating-entity are not taxed.

 

Sales taxes create black markets where property transfers are hidden so as to avoid taxation. Sales taxes are higher for persons who purchase property more than another person, and sales taxes are a method of systemic control of property transfers which the governing entity may use to control who is allowed to own what and where that property may be allowed (for instance, liquor sales are controlled by time of day they are allowed, entitlement to purchase, and higher costs on purchasers in an attempt to reduce or limit their consumption).

 

Payroll taxes and consumption taxes: These taxes are duplicates of income taxes and sales taxes except that they are taken from employers and purchasers rather than employees and sellers. These taxes are often a form of double taxation which are intended to avoid scrutiny since they are gathered form a smaller number of persons and less visible than income or sales taxes.

 

Tax fairness is always questionable in that they are not equal; some people work more, some people own more, and some people purchase more. What percentage of income taxation is slavery, what level of property taxation becomes government preventing people from owning land, and what level of sales tax creates black markets and destroys property transfers (markets)?

 


Millennial Slavery: Intergenerational Debt, Potato Economics 101, the Modern-Monetary-Farce

Richard Light

5-25-2016



Millennials are slaves; we are born into slavery through a debt which is stolen back from us as forced, extorted labor throughout our entire lives. We are slaves to a debt we neither made, nor spent, nor contracted. We are slaves to the debts of our parents, we are slaves to the debts of a Corporation (the United States Government), and we are slaves to the debts burdening the United States’ as a result of corporate bailouts, bonds (government loans), and Corporate-Government deficits. We are slaves to the private, World-Bank, the privately owned “political” system, and Keynesian Modern-Monetary-Theory.

 

Debt bondage (also known as debt slavery or bonded labor) is a person's pledge of their labor or services as security for the repayment for a debt or other obligation. The services required to repay the debt may be undefined, and the services' duration may be undefined. Debt bondage can be passed on from generation to generation.

 

 

Millennials of the United States are born into 48,000 dollars of debt in 2016. An infant who breathes their first breathe is born with a debt which they never agreed to, never benefit from, and can never repay. When Millennials become working age, their share of the intergenerational debt is more than 87,000 dollars. By the time Millennials are able to take on their first full time employment, the debt they must begin to pay off, a debt which doubles every 9 years, is deducted from their labors at approximately 35%. In other words, a Millennial must work 14 hours a week (for no pay) in order to sustain the current interest on their intergenerational debt. The debt itself does not go down; the interest on the debt continues to accumulate; the burden of the debt continues to devalue the money Millennials earn, reducing the power of their dollar to buy anything; the government continues to borrow on the behalf of children yet born; and the debt of the generation to follow is more than that of the generation who did the borrowing.


 

 

The theory of Keynesian economics and Modern Monetary theory is that a government borrowing money on the behalf of the future generation would be able to invest the borrowed money in order for it to grow as an investment, netting not only a gain for the generation that spends the money but also increasing the value of the borrowed money to benefit the generation which will inherit the debt (and supposed interest).

 


Modern monetary theory explained in terms of potato economics:

What is supposed to happen:

1)      I borrow 10 potatoes from my son.

2)      I plant the borrowed 10 potatoes (invest them) and grow 100 potatoes over the course of 18 years.

3)      My son is handed the 10 potatoes when he turns 18; he is also handed the interest of 90 potatoes which I owe him as interest on his investment.

4)      My son is nine times better off than he would be when he turned 18 if I had never invested his potatoes on his behalf.

What actually happens:

1)      I borrow 10 potatoes from my son.

2)      I eat or otherwise consume and use the potatoes.

3)      I gain more at the cost of my son and with that I am able to retire, live beyond my means, and suffer no burden, but instead show a gain in my life for the act of borrowing from my son.

4)      My borrowing incurs interest, which becomes a debt of 100 potatoes when my son turns 18.

5)      My son turns 18, inherits the debt of 100 potatoes, and forever more must work to pay down the debt and interest which he has been saddled with on my behalf.




The theory of borrowing from your children has roots in a philosophically stable ideology, but the reality of implementation has proven that stealing from your children benefits you now and enslaves them later.


The national debt of the United States is not mine, it is not my generation’s debt, and its continued growth through devaluation and interest is no more than generational slavery imposed on us through a private corporation (The United States Government) handing our futures to Bankers (through payouts), Corporations (through subsidies), and to America’s Communistic Institutions (through bonds and bureaucrat entitlements).   

The general population thinks they benefit from these “investments”. The illusion is that social security, Medicaid, and other programs are investments in the future which will benefit all persons to be born and live in the United States. The reality is that programs that help the generation of today were invested in by the generation of today and should have been solvent in the taxes paid by the generation of today. The National debt is in fact only a money laundering scheme by which the future generation is stolen from in order for the current generation’s bankers, politicians, bureaucrats, and corporate elites to benefit. These bankers, politicians, bureaucrats, and corporate elites invest the money they steal on their own behalf. The result is that the bankers, politicians, bureaucrats, and corporate elites gain interest while the generations who were stolen from gain more debt.

 


We will never pay this debt. We cannot work enough hours for free to pay down this debt. As it is, Millennials work 14 hours per week as slaves to the bankers, politicians, bureaucrats, and corporate elites which stole our money, and with it, our futures.

Moreover, the math is even worse when you take into account that 40% of Millennials are unemployed and 40% of Millennials are under-employed (part-time, low-wage).   These numbers actually mean our generational debt is increasing far faster than we are gaining means to pay for it. The result is that the debt will grow beyond our ability to even manage the interest (projected for 2018-2020). We are broke as a nation; we continue to borrow on generations who are not yet born, our national budget exceeds our national income every year which further buries us in more and more debt.

Being born to debt and having your labor stolen from you for the rest of your life to pay for a debt you never incurred is slavery. There is no other definition but slavery which fits the model our government has imposed on its people. Our masters are bankers, politicians, bureaucrats, and corporate elites who have benefited from and continue to benefit from our slave-debt.

This cannot continue, this will not continue. Either we stand against this debt or we endure our slavery until the debt collectors collect. Be it an international force of countries which invade and occupy our nation as our new masters, or be it that the private bankers who manipulated this debt into our slavery capitalize directly on their control by stealing the remainder of our labors (this is actually happening now as we have to work more and more to pay the minimum slave-debt), if we do not rise against this debt and slavery, we will no longer able to be able to fight for our freedom.