This installment of Off The Chain is free for everyone. I send this email to our investors daily. If you would also like to receive it every morning, join the 40,000 other investors today. To investors, The general public is starting to realize the greatest magic trick of our generation is actually a magic trick. What do I mean? The average citizen is starting to recognize that US dollars, like all fiat currencies, are just funny money.
I hope that people don't fixate on taxes, because taxation is an essential part of how fiat currency works (as well as a necessary correction of the inequality created by capitalism). While it's technically true that the Federal Government doesn't "need" to collect taxes in order to spend money, taxes help control inflation but moreover they *underpin* demand for the dollar. Because if you *need* US Dollars to be right with uncle sam or risk going to jail for tax evasion, then you better get some USD. If we abolish taxes, it's possible that commerce would continue in USD simply out of habit, but it's likely that there would be some incentives to switch to some other currency and USD would fail completely.
What I hope people *do* take away from this is that a politician saying "how do you pay for X?" is grade-A bullshit. Because (as Bernie & his supporters will remind you), that question is never asked when we deploy military resources, or increase the Pentagon budget.
At the end of the day, the only real limits of fiat currency are inflation. And yes there is *some relationship* between creating a bunch more currency and infusing it into the economy and inflation, but that relationship is complex, and far from one-to-one. Moreover, if you do this in a way that facilitates an increase in production (for example, by building or improving infrastructure), you could have no inflation or negative inflation as a result.
The question is always this: if people have money, does it work? That is to say, do they have goods & services they can purchase with it? Inflation becomes a problem when production is depressed, because then you have fewer goods being chased by more money. So with businesses shutting down or pausing and economic stimulus on the way, I think inflation is a legitimate concern *in this one instance*. But when the economy is humming, businesses are producing, farms are producing, there is room in the economy for way better quality of life for everyone. There is no actual *need* for homelessness or inferior and incomplete healthcare. There is no real *limit* to how good we can make our educational system other than our own imagination.
Societally, we are not limited by money. Or at least, we don't have to be. ✌️
I hope that people don't fixate on taxes, because taxation is an essential part of how fiat currency works (as well as a necessary correction of the inequality created by capitalism). While it's technically true that the Federal Government doesn't "need" to collect taxes in order to spend money, taxes help control inflation but moreover they *underpin* demand for the dollar. Because if you *need* US Dollars to be right with uncle sam or risk going to jail for tax evasion, then you better get some USD. If we abolish taxes, it's possible that commerce would continue in USD simply out of habit, but it's likely that there would be some incentives to switch to some other currency and USD would fail completely.
What I hope people *do* take away from this is that a politician saying "how do you pay for X?" is grade-A bullshit. Because (as Bernie & his supporters will remind you), that question is never asked when we deploy military resources, or increase the Pentagon budget.
At the end of the day, the only real limits of fiat currency are inflation. And yes there is *some relationship* between creating a bunch more currency and infusing it into the economy and inflation, but that relationship is complex, and far from one-to-one. Moreover, if you do this in a way that facilitates an increase in production (for example, by building or improving infrastructure), you could have no inflation or negative inflation as a result.
The question is always this: if people have money, does it work? That is to say, do they have goods & services they can purchase with it? Inflation becomes a problem when production is depressed, because then you have fewer goods being chased by more money. So with businesses shutting down or pausing and economic stimulus on the way, I think inflation is a legitimate concern *in this one instance*. But when the economy is humming, businesses are producing, farms are producing, there is room in the economy for way better quality of life for everyone. There is no actual *need* for homelessness or inferior and incomplete healthcare. There is no real *limit* to how good we can make our educational system other than our own imagination.
Societally, we are not limited by money. Or at least, we don't have to be. ✌️
This will END and It will be forgotten @paydayloanguy