This is from a site called Liberty Revival which advertizes a rejection of Marx, Keynes, AND Mises; a Restoration of Classical Liberalism, Biblical Economics, and Georgism; an Untaxing Labor and Capital; a Fighting Usury; and Reclaiming the Profit of God’s Earth for All.
July 20, 2011 by Keith Gardner
The crooks (the banks) and liars (the politicians) should be beaten by the elderly with their canes and oxygen tanks for cutting their benefits. Better, we should be promoting that the crooks and liars to be taxed rather than the few productive Americans who haven’t had their jobs outsourced and their money handed to offshore banks. The politicians and banks caused this mess, they should have to pay for it.
We are in the middle of a deflationary depression in the face of rising commodity prices on international markets. In economics this is typically called stagflation. We have a lack of money supply in the domestic economy. The Federal Reserve is sending our money to offshore banks where it gets dumped on money markets as foreign nationals buy up commodities with our money. This results in rising commodity prices while prices in the domestic economy fall. Housing prices fall. Employment and wages fall.
It is a common myth that the government prints money. It does not. Government collects taxes and borrows money. Private banks create money whenever they make a loan. Private banks also destroy money whenever a loan is paid, as the banks pocket the interest. The interest is not put into the system until another loan is made. This is called fractional reserve banking and is how our banking system has worked since 1935. Between 1873 and 1935, our monetary and banking system was a fractional reserve banking system, except the money was partially backed by gold and the rest was just interest-bearing debt issued by the banks. Before 1873, you also had various other currency in circulation, including silver and the Greenback.
Our banking and monetary system is a giant Ponzi scheme and has always been a Ponzi scheme except before the American Revolution when colonies issued their own currency, during the American Revolution when the government printed Continentals, and during the Civil War when the government issued Greenbacks. Money has always been created and destroyed by the private banks, creating booms and busts. When the banks stop loaning money, the money supply is reduced, and the economy crashes. The banks make huge profits on the interest during booms and confiscate land and businesses when it busts.
1. Fractional Reserve Banking (money issued as debt to benefit the usurer)
2. National Debt (see #1)
3. Taxation of labor and capital. Leads to outsourcing and offshoring.
Feasible Keynesian Solutions:
1. Stop bailing out banks. Use the public money to create real jobs to build infrastructure.
2. Implement a sin tax on usury like the Robin Hood Tax.
3. Tax the crooks (banks) and liars (politicians).
4. Implement trade tariffs on imports, outsourcing, and offshoring to bring the jobs back home.
Ideal Georgist / Biblical / Classical Liberal / Classical Progressive Solutions:
1. End fractional reserve banking with something like the Zarlenga plan or scale it back to something like a 1:5 to 1:3 reserve ratio which Lincoln suggested. As reserve ratios are scaled back, the government should print debt-free Greenbacks to pay off the national debt and create public sector jobs in order to prevent the deflation that scaling back reserve ratios would cause. Money should be issued debt-free by the government to benefit the tax payer rather than issued as debt by banks to benefit the usurer. Thomas Edison said the same thing in a newspaper. Paying off the national debt would end the need for income taxation and force the aristocrats around the world to make productive investments to earn interest.
2. End income taxes, capital gains, and payroll taxes, which act as a negative trade tariff, sending jobs overseas.
3. Use sales taxes, which act as a uniform trade tariff, taxing domestic and foreign production equally. They also tax consumption, making natural resources more affordable since excessive demand is reduced by the taxation. Make the sales tax progressive with a citizen dividend, like the Fair Tax, which is promoted by people like Thomas Paine and MLK.
4. Use land value taxes or property taxes. These taxes encourage efficient use of land and makes land more affordable to citizens. Make these taxes progressive with a citizen dividend. Property taxes are supported by most all classical liberals, including people like Thomas Jefferson, and modern day conservatives like Milton Friedman and David Nolan. States like New Hampshire are funded strictly on property taxes. The Bible even promotes the 50-year land lease, which is a form of property taxes paid to the government.
5. Implement progressive taxes on the monopolization of capital and usury. Small business and small corporations should not be taxed. Large corporations should be taxed. Banks should also be taxed.
6. Citizen dividends can be reduced to fund public option health insurance. The sales taxes should fund Social Security, SSDI, and Medicare/Medicaid.
If you don’t think this is important, you haven’t been following the news.