Keith Evans
Sep 2, 2018 · 4 min read

While fascism may not be the admitted goal of the capitalists, they have enough in common to question the validity of their rejection. At the least, fascism is the end result of unrestrained capitalism that vilifies any but the best of everything as undesirable. Such a system can only be sustained by widespread scarcity, especially in those things most needed to sustain life, or the greater part of the population would simply opt out and settle for their less than great existence.

Creating an illusion of scarcity in a land of obvious abundance is a big task unless one has an intermediary currency between the resources and their intended consumers which can be controlled. Once the general population is denied access to the land their only way of gaining even the most basic necessities is via the common currency of trade. This is why it is of utmost importance to the ruling class that the illusion of scarcity is maintained for the currency. By positioning the national currency as a “thing” that is finite, instead of the cost-free commodity, created by simple decree, that it is.

This illusion is actually quite easy to maintain as it meshes well with the rules and procedures that apply to the general population forced to obtain the currency via their labor or time. It was just a simple matter of sustained rhetorical reference to taxes as the source of currency for the government’s spending to create and maintain the false concept of the currency as finite and the government as just another “user” of that currency, competing with the people for it.

Freeing the people from scarcity is actually as simple as destroying the myth of a finite currency and taxes as the source of “revenue” for the monopoly issuer of the currency that neither needs nor uses revenue. The reality is that such a sovereign currency creator can afford anything that is for sale and denominated in the currency it can create at will, even without revenue. Taxes and borrowing are simply methods of drawing down the supply of currency in circulation for the government, not revenue to enable spending. In fact, spending must occur prior to taxation or borrowing or there is no currency available to tax or borrow.

Once the falsehood of taxation for revenue is dispelled the falsehood of national debt also falls to the force of truth. That truth should be quite obvious to anyone who understands simple dual entry accounting, as is used by any entity dealing with money. An entry in one sector of the balance sheet must be matched with an opposite entry in another sector. This is how money is tracked as it moves from the government sector into the private non-government sector by the creation of a “debt/negative” entry to match the positive entry of money creation. As tax collections flow back into the government sector from the non-government sector they are neutralized/ canceled by this debt entry, so they are not available to “spend”.

Congress creates the money when it spends into the private sector and “cancels” it when it is used to pay a federal tax obligation. This system worked well to maximize the use of the currency when it was important to defend the gold reserve, preventing inflation of the currency, by assuring that the government neither had nor didn’t have currency in reserve at any time. Since leaving the gold standard and having no reserve to defend, inflation took on a different meaning and is dependent upon the availability of goods and services that the currency is created to purchase, not simply the amount of currency in circulation.

In spite of this much less restrictive measure of balance, the fear of inflation has been perpetuated unreasonably via vilification of deficits and misrepresentation of the debt, which is now only a record, accurate to the penny, of the net currency in circulation. Whenever spending is suggested that would benefit the common welfare it is met with the demand to be balanced with either taxation or cuts to other spending, while spending that benefits the ruling class, such as for war, is never challenged.

On the other side of the equation, there is a constant expression of the need to increase taxation of the upper-income eaners to “pay for” needed social programs, assuring that such spending meets a two-front assault, one to justify and another to secure funding, against the most well organized and funded resistance possible. This all but guarantees the involvement of wealthy individuals and business interests in our government to protect the wealth they have come to consider their “right”. It is only via a proper understanding of the currency as a creation of Congress and its movement in the economy that we will be able to overcome the falsehoods that surround it.

    Keith Evans

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    Meandering to a different drummer.