Declining Dollar is Only the First Symptom

While this story is a year old already, Why the global financial system is about to collapse remains scarily accurate in its analysis of the problems faced by fiat money systems around the world:

The global financial system is about to collapse because the US dollar is about to collapse. The US dollar is about to collapse because of a simple economic fact that no one has the power to change or conceal. The fact is that the spontaneous remonetization of the precious metals is a Nash equilibrium.

Why the global financial system is about to collapse

I don’t know who John Law is (He isn’t this guy) but he made some interesting points. Good luck finding him if you have questions for him.

Postscript

Money, money, money. What is money?

That is the question that really needs answering. It is clear to me now that money is not any of the things that it has been proposed to be up to this point in history. It most certainly isn’t the thing that the author calling himself John Law said it was back when I first ran across that article. How do I know this? Because his predictions turned out to be false, like so many predictions have done over the years. We humans are poor predictors of the future.

I temporarily gave a home to the ideas he voiced in the article because I thought the ideas were worth discussing. In 2019 I decided that time had passed and I removed the bulk of the article from the blog so as to frustrate the delusions of others who might be reading the article here (there were a suspiciously high number of hits on the article while it was live on Blogspot) Follow the link if you want to read the rest of the article. It is still there on Archive.org, in the same place where I rediscovered it after the blog the article was written on was deleted.

I’m no longer convinced that John Law understood economics better than I did at the time, and I’ve learned a lot more about economics in the decade since stumbling across that article. Average people like the idea of gold as money, want their money to be valued like gold is, but they aren’t willing to carry the stuff around in order to trade with it, they aren’t inclined to pay the costs of maintaining the systems and the costs of maintaining reserves simply to protect against the debasement of the currency that they want tied to the value of gold.

Humankind needs to come to some new understandings about what money is and why we need it, but I don’t see a return to gold as the bulwark behind the value of money anywhere in the cards. It just isn’t practical to have huge troves of precious metals sitting around gathering dust in treasuries around the world. This is especially true when electronic systems could be created that could do the same job without taking up the real estate gold requires while doing the job.

When I say, electronic systems I’m not talking about cryptocurrencies, at least not any of them that existed in 2019. They have their own downsides including the energy costs of mining for the currency itself. Blockchain technology is interesting and could possibly be made to serve the purpose we need in controlling the hoarding of money, but that proposition hasn’t been proven yet.  In the meantime I may drag out a few more snippets of John Law’s Why the global financial system is about to collapse as examples to rebut in future articles on the the subject of money. Like all predictions, only time will tell.

(October 2007 archive)

When are Taxes not Theft?

Heard on the radio today that Austin is going to give 3 million dollars as an incentive to HP so that they’ll graciously relocate here. Oh, I know, they aren’t actually giving anything. They’re offering incentives (rebates on taxes) and I’m sure you and I won’t even notice that HP (the multi-national corporation) isn’t paying the same property taxes that us working stiffs are.

Why should we care when we as living, existing entities with limited time in this world are stolen from on a daily basis while a corporation with no real existence and no limit on their lifespan (profitable or not) gets a free pass for 10 years (about a quarter of the average persons working life) and has potentially centuries to make however many millions it is destined to make.

So, to get to the point, when are taxes not theft?

When the tax is levied on an legal entity that has no physical being to maintain. When the tax is levied on creatures of law that have no existence outside of law; if the cost of maintaining it’s existence is the maintenance of government and law, can any cost be considered ‘unreasonable’? Can any cost short of self destruction be considered theft since the alternative is for them to cease to exist?

Taxes levied on creatures of the state cannot be ruled theft. Corporations and other creatures of law, government sheltered businesses of any kind, should carry the burden of government since they owe their very existence to government in the first place, and would have no ability to continue in existence without it.

In my opinion, this is the answer to the age old question of how to fund government. Let those who profit from it, those who would have no existence with out it, pay for it. Starting with corporations like HP.

Postscript

TL;DR? Taxes are never theft. Showing up on your property and taking your stuff is theft and neither governments nor any other person should be allowed to do that even if you don’t pay your taxes. People have to have a place to live, a method of transport and sustenance. However, currency belongs to everyone who uses it and currency does require oversight in order for it to be utilizable by everyone. Crouch in your hovel and refuse to deal in money if you don’t want to participate in society. If you do want to participate, be prepared to pay your way through society including paying your taxes.