Thanks, Chick, for this important belief:
--Alma Hancock, Social Credit writer in
Alberta once told me years ago
that --
--the only purpose of
Taxation is to
extract money from
society when
there is
too much.--
Some people credit Abba Lerner with
offering
the same insight to Keynes and his followers.
People continue by saying Keynes at first
rejected the insight. Then they say Keynes
accepted it. They put this insight, together with
governent
spending can inflate a
nation
out of deflation / depression to create the
doctrines of "Functional Finance".
In my view, if you combine --
(1) the absolute recognition
that purch-
asing power created by modern economic prac-
tice is unreliable and may safely be augmented
when necessary;
(2) purchasing power can
safely be aug-
mented with money if the sovereign money-
creating authority (SMCA) spends, lends or
distributes it into circulation free of debt;
(3) the SMCA can create,
spend, lend or
distribute money ahead of receiving any tax
revenue -- and if tax revenue is later sought
it is to help control the price of goods and
services (i.e., prevent an inflationary spiral) --
not to supply money as though it were gold;
and
(4) augmented purchasing power and
modern manufacturing methods can together
maintain high output of goods and services
to enrich the planet and its people -- but if
they do not, because people become dis-
organized, lazy, corrupt or otherwise non-
productive, augmented purchasing power
will do no good--
IF you combine
these four you have a
modern equivalent of social credit and
functional finance ready to be shaped
into a political platform.
The platform may well advocate continuation
of licensed fractional reserve banks and their
power to create money based on debt.
Such debt-based money and debt-free money
together, looking alike and being the same to
the mint and accounting machines, will perform
in a modern economy in a manner similar to the
money now in use. Voters will expect to see
inflation if not deflation.
To protect their saviings from inflation the
way their homes and real estate often are,
the SMCA and our plarform may well want
to promise to use COLA's to index savings
accounts managed by the SMCA and
owned by ordianry voting taxpayers.
The fly in the ointment, as you can see, is
that all over the planet the SMCA is a two-
headed monster called a government and
a central bank. The government creates
the central bank the two shun debtless
money. Without debtless money there
can be no taxless money. Without both
there can be no augmented purchasing
power. So our political party must not
bog down in esoteric economic dispute.
The political mountain to climb is twice
as high as Everest.
