So much talk lately about the increasing disparity in wealth. And,once again, this writer is going to turn your perspective of reality on
its head. Today we will show you one of the many ways your government and ruling class steal value from labor, without labor even noticing. This is the true source of the growing wealth disparity.
“All wealth is created by Labor” – John Locke
“All value is created by Labor” – Don Mashak
Even land and gold have no value unless and until labor is applied to it. Gold has no value until dug out of the ground and Land has no value until labor is used to hunt a deer, harvest crops, dig an oil well or build a house, etc.
“The value created only by labor is as much the property as gold and land is” – Don Mashak
“Government has no other end, but preservation of property” - John Locke
SHERIFF OF NOTTINGHAM
In days of old, governments and/or the ruling class had to physically
collect taxes, etc from the masses. A means to finesse taking property
from the masses without them noticing the taking had not yet been
invented. This writer has selected Sheriff of Nottingham to represent
the Tax Collector as he is well known to all from the various stories of
Robinhood.
In reality, low level tax collectors collected the majority of the
taxes and called upon the Sheriff to only collect from those who could
not or would not pay the tax. Upon being informed, the Sheriff of
Nottingham would then engage in a series of escalating interactions
designed to induce payment and/or seize property of the person owing the
tax.
But there was a drawback to this practice. To state the obvious,
when the Sheriff of Nottingham seized someone’s coins, wheat, corn,
chickens, goat or Ox, etc, people noticed. The physicality of these tax
collection actions raised angst and fomented rebellion amongst the
masses.
And after a few uprisings and rebellions, someone thought: “There
must be a better, less obvious way to take money from the masses.”
FIAT MONEY
First it must be remembered that the concept of money was invented
and became popular because it simplified transactions between persons.
For example, instead of bringing your cow with you to trade for wood at
the Lumber Yard; it was much easier to bring money. Further, the parties
did not have to haggle how many boards a particular cow was worth. With
a standard form of money, over time the free market established the
fair market value of almost every commodity in terms of the unit of
money. And finally, the
Lumber Yard owner was not left with a cow that
had to be fed and cared for.
Fiat money is money that is not back by specie, such as gold and
silver. In other words, for each dollar the government prints it is
required to purchase a dollar’s worth of specie and keep it in the
government vault.
THE BENEVOLENT GOVERNMENT AND NON-FIAT MONEY
In the first year of money under a benevolent government, (for the
sole purpose of simplifying economic transactions between persons (and
making tax collection easier) the government would create an amount of
money equal to the value of the products the country produced. In this
benevolent government, the money is NOT fiat money; it is backed by
gold.
For our example, we are going to have a very simple economy. The only
things people produce are cows and jumpsuits. The only thing that
people need to live are cows to eat and jumpsuits to wear. For our
example, Cows are consumed and jumpsuits wear out in one year, but money
never wears out and is never lost.
In the year before the government implements “money”, the barter rate
is 2 jumpsuits to exchange for 1 cow. Taxes to the government are half a
cow or 1 jumpsuit for each adult citizen.
In year 1, the country produces 100 new cows and 100 new jumpsuits.
To facilitate the use of money instead of barter, the government puts a
total of $300 into circulation. Based on last year’s barter exchange
rate, the fair market value of each cow should be 2 dollars and that of
jumpsuits should be 1 dollar. Taxes for each adult is 1 dollar.
In year 2, the country produces the same number of 100 cows and 100
jumpsuits, so there is no need for the government to add more money to
the economy. The price of each cow and jumpsuits remain unchanged
In year 3, the country produces 110 new cows and 110 new jumpsuits.
To keep prices stable, the government puts 30 more new dollars to the
economy. (As in our example, money never wears out and is never lost;
the amount of money in circulation is 330 dollars.) The price of cows
remains 2 dollars and jumpsuits remains at 1 dollar. Taxes to the
government remain 1 dollar.
Ad infinitum…
While our example over simplifies the US Monetary system, all of the
other elements that actually exist only cloud the net effect that will
be demonstrated. Even when added into the mix, these other elements do
not substantially offset the negative effect which is about to be
exposed. Neither does expanding the range of products produced or
consumed does not negate the detrimental effect about to be exposed.
THE MALEVOLENT GOVERNMENT AND FIAT MONEY
Our malevolent government is identical to the benevolent government
example, except that it uses fiat money and will print more of it. Our
malevolent government using Fiat Money means that instead of buying more
gold to back additional money the government prints, it only has to buy
more ink and paper.
The year before year 1 with “money” is the same as year 1 under the
benevolent government: the barter rate is 2 jumpsuits to exchange for 1
cow. Taxes for the government are half a cow or 1 jumpsuit for each
adult citizen.
Year 1 of “money” under the malevolent government is also the same as
year 1 of “money” with the benevolent government. The country produces
100 new cows and 100 new jumpsuits. To facilitate the use of money
instead of barter, the government puts a total of $300 into circulation.
Based on last year’s barter exchange rate, the fair market value of
each cow should be 2 dollars and that of jumpsuits should be 1 dollar.
Taxes for each adult is 1 dollar.
Thank you, my fellow citizens, for taking your valuable time to read and reflect upon what is written here.
If what is written here rings true to you, perhaps you should contact
your local elected officials and let them know. If you are afraid of
repercussions, snail mail it anonymously and ask them to respond in the
local paper or their own monthly/quarterly internet newsletter. Even if
this article refers to something outside you geographic area, it still
likely applies to your location. Remember all those taxpayer training
junkets we taxpayers send the bureaucrats on? They all learn the same
“livestock management” techniques to use on WE THE PEOPLE.
And that leaves WE THE PEOPLE with this conundrum: While our
#Government works full time with compensation and funded with our money
for the cause of #Tyranny; WE THE PEOPLE are forced to work part time
without compensation for the cause of #liberty with what is left over of
our time, money and energy.
Finally, this article is written with the same intentions as Thomas Paine http://ushistory.org/paine. I seek no leadership role. I seek only to help the American People find their own way using their own “Common Sense” http://amzn.to/kbRuar
Critical Thinking Notice - This author advises you as no politician would dare. Exercise Critical Thinking (http://bit.ly/ubI6ve)
in determining the truthfulness of anything you read or hear. Do not
passively accept nor believe anything anyone tells you, including this
author... unless and until you verify it yourself with sources you trust
and could actively defend your perspective to anyone who might debate
you to the contrary of your perspective.
12160: SHERIFF OF NOTTINGHAM VS FIAT MONEY
by Don Mashak
Jan 31, 2014
its head. Today we will show you one of the many ways your government and ruling class steal value from labor, without labor even noticing. This is the true source of the growing wealth disparity.
Even land and gold have no value unless and until labor is applied to it. Gold has no value until dug out of the ground and Land has no value until labor is used to hunt a deer, harvest crops, dig an oil well or build a house, etc.
SHERIFF OF NOTTINGHAM
In days of old, governments and/or the ruling class had to physically
collect taxes, etc from the masses. A means to finesse taking property
from the masses without them noticing the taking had not yet been
invented. This writer has selected Sheriff of Nottingham to represent
the Tax Collector as he is well known to all from the various stories of
Robinhood.
In reality, low level tax collectors collected the majority of the
taxes and called upon the Sheriff to only collect from those who could
not or would not pay the tax. Upon being informed, the Sheriff of
Nottingham would then engage in a series of escalating interactions
designed to induce payment and/or seize property of the person owing the
tax.
But there was a drawback to this practice. To state the obvious,
when the Sheriff of Nottingham seized someone’s coins, wheat, corn,
chickens, goat or Ox, etc, people noticed. The physicality of these tax
collection actions raised angst and fomented rebellion amongst the
masses.
And after a few uprisings and rebellions, someone thought: “There
must be a better, less obvious way to take money from the masses.”
FIAT MONEY
First it must be remembered that the concept of money was invented
and became popular because it simplified transactions between persons.
For example, instead of bringing your cow with you to trade for wood at
the Lumber Yard; it was much easier to bring money. Further, the parties
did not have to haggle how many boards a particular cow was worth. With
a standard form of money, over time the free market established the
fair market value of almost every commodity in terms of the unit of
money. And finally, the
Lumber Yard owner was not left with a cow that
had to be fed and cared for.
Fiat money is money that is not back by specie, such as gold and
silver. In other words, for each dollar the government prints it is
required to purchase a dollar’s worth of specie and keep it in the
government vault.
THE BENEVOLENT GOVERNMENT AND NON-FIAT MONEY
In the first year of money under a benevolent government, (for the
sole purpose of simplifying economic transactions between persons (and
making tax collection easier) the government would create an amount of
money equal to the value of the products the country produced. In this
benevolent government, the money is NOT fiat money; it is backed by
gold.
For our example, we are going to have a very simple economy. The only
things people produce are cows and jumpsuits. The only thing that
people need to live are cows to eat and jumpsuits to wear. For our
example, Cows are consumed and jumpsuits wear out in one year, but money
never wears out and is never lost.
In the year before the government implements “money”, the barter rate
is 2 jumpsuits to exchange for 1 cow. Taxes to the government are half a
cow or 1 jumpsuit for each adult citizen.
In year 1, the country produces 100 new cows and 100 new jumpsuits.
To facilitate the use of money instead of barter, the government puts a
total of $300 into circulation. Based on last year’s barter exchange
rate, the fair market value of each cow should be 2 dollars and that of
jumpsuits should be 1 dollar. Taxes for each adult is 1 dollar.
In year 2, the country produces the same number of 100 cows and 100
jumpsuits, so there is no need for the government to add more money to
the economy. The price of each cow and jumpsuits remain unchanged
In year 3, the country produces 110 new cows and 110 new jumpsuits.
To keep prices stable, the government puts 30 more new dollars to the
economy. (As in our example, money never wears out and is never lost;
the amount of money in circulation is 330 dollars.) The price of cows
remains 2 dollars and jumpsuits remains at 1 dollar. Taxes to the
government remain 1 dollar.
Ad infinitum…
While our example over simplifies the US Monetary system, all of the
other elements that actually exist only cloud the net effect that will
be demonstrated. Even when added into the mix, these other elements do
not substantially offset the negative effect which is about to be
exposed. Neither does expanding the range of products produced or
consumed does not negate the detrimental effect about to be exposed.
THE MALEVOLENT GOVERNMENT AND FIAT MONEY
Our malevolent government is identical to the benevolent government
example, except that it uses fiat money and will print more of it. Our
malevolent government using Fiat Money means that instead of buying more
gold to back additional money the government prints, it only has to buy
more ink and paper.
The year before year 1 with “money” is the same as year 1 under the
benevolent government: the barter rate is 2 jumpsuits to exchange for 1
cow. Taxes for the government are half a cow or 1 jumpsuit for each
adult citizen.
Year 1 of “money” under the malevolent government is also the same as
year 1 of “money” with the benevolent government. The country produces
100 new cows and 100 new jumpsuits. To facilitate the use of money
instead of barter, the government puts a total of $300 into circulation.
Based on last year’s barter exchange rate, the fair market value of
each cow should be 2 dollars and that of jumpsuits should be 1 dollar.
Taxes for each adult is 1 dollar.
In year 2, the malevolent malignancy reveals....
To continue reading for free, click here http://t.co/U4YrK7Ih7n
Those were my thoughts.
In Closing:
Thank you, my fellow citizens, for taking your valuable time to read and reflect upon what is written here.
If what is written here rings true to you, perhaps you should contact
your local elected officials and let them know. If you are afraid of
repercussions, snail mail it anonymously and ask them to respond in the
local paper or their own monthly/quarterly internet newsletter. Even if
this article refers to something outside you geographic area, it still
likely applies to your location. Remember all those taxpayer training
junkets we taxpayers send the bureaucrats on? They all learn the same
“livestock management” techniques to use on WE THE PEOPLE.
And that leaves WE THE PEOPLE with this conundrum: While our
#Government works full time with compensation and funded with our money
for the cause of #Tyranny; WE THE PEOPLE are forced to work part time
without compensation for the cause of #liberty with what is left over of
our time, money and energy.
Finally, this article is written with the same intentions as Thomas Paine http://ushistory.org/paine. I seek no leadership role. I seek only to help the American People find their own way using their own “Common Sense” http://amzn.to/kbRuar
Keep Fighting the Good Fight!
In Liberty,
Don Mashak
The Cynical Patriot
http://twitter.com/dmashak
http://Facebook/Don.Mashak
Don Mashak Google Plus http://goo.gl/1AUrE
WE THE PEOPLE TAR #WETHEPEOPLETAR
http://WETHEPEOPLETAR.blogspot.com
http://facebook.com/WETHEPEOPLETAR
http://twitter.com/WETHEPEOPLETAR
End the Fed(eral Reserve Bank System) #ETF
National http://bit.ly/ta3Rju Minneapolis http://bit.ly/tjZJKF
Bring Home the Politicians #BHTP
http://BringHomethePoliticians.com
Lawless America #LawlessAmerica
http://LawlessAmerica.com
Term Limits #TermLimit
http://TermLimits.org
Justice in Minnesota #JIM
http://JusticeinMN.com
Critical Thinking Notice - This author advises you as no politician would dare. Exercise Critical Thinking (http://bit.ly/ubI6ve)
in determining the truthfulness of anything you read or hear. Do not
passively accept nor believe anything anyone tells you, including this
author... unless and until you verify it yourself with sources you trust
and could actively defend your perspective to anyone who might debate
you to the contrary of your perspective.