The Essentials of Survival or Where to Break the Egg.

 ------------------------------------------------

All life has a common dependency  on land, air, water.  The use of it is exclusive to no one. There is no birthright to possession with or without the contribution of personal labor. Not even your own labor is exclusively yours if another has the power to compel you to serve him with your labor.

 I am a son of the South and among my ancestors were men who owned slaves and never once questioned their right to compel their slaves to serve them for all of their lives and the lives of their children and their children's children.  Even their Religion and their Government told them that this was their Birthright to possess at will. 

Also among my ancestors were Native Americans who laid claim by birthright to the use of the land of their ancestors. But in the end superior power of the Invaders displaced this Birthright push my ancestor off their land and down the "Trail of Tears"  and now modern day American claim it as their right to possess by virtue of  Labor.  

There is no such right of possession in Nature.  It become possible only if the Community [which has power superior to the individual] grants the privilege of possession in return for a tax that is due to the community to provide for the common use of that community.  How the Common-share is used is determined by who holds the power of Community. It might be Democratic or Oligarch or Dictatorial, but it exist beyond the power of any single individual to resist.  

If the Community decides that a portion of that tax of the Commonshare is to be used for food, shelter, medical-care and skill training for some or all of the Citizen of the Community, the opinion of those who believe it is Philosophically wrong is an opinion of no consequence in the absence of Democratic Response or Armed Rebellion.

 It is not your or my  Philosophical Opinion that determines Absolute Right.  It is the will of those who hold the power to impose their will that determine truth of the moment.  It is only the willingness to evolve values by compromise that offers a pathway to change without violence. I for one embrace the privilege to possess wealth as reward for achievement of competition and for the contribution  to the common good.  I also am of the opinion that a community that guarantees that each and every citizen shall have food, shelter, medical care and education that is not predicated upon the need to satisfy a Bureau for Begging is a stable and productive community. 

 I am fully satisfied that a modern technological Society can easily do both without  a struggle  to satisfy the need to be Absolutely Right  about the proper Moral Behavior. Our present struggle over who will hold power, leads me directly to consideration of the Society of Lilliputians in Gulliver's Travels. What does it really matter which end of the boiled egg you crack before eating. 

 Copyright © William Hodge 2012 

Commonshare is the Heart of Community

                                                           

I believe that the distribution of the essentials of life should not be tested by monetary need. I find the concept of a Bureau for Begging to be humiliating  in an era of abundance. I am a supporter of the concept of Common-share.  Land, air, and water are essential to all life in common and private ownership cannot go uncontested except at the will of the Community at large.  

When the Society grants the privilege of private ownership of any part of the Commons in the attempt to achieve efficient productivity or reward it, the holder of the privilege owes a share back to the Community of the personal gain he makes from holding title. It is this tax that comes from a share of private gain  that belong to the whole Community. It is ethically due in exchange for no one contesting the power of Community to grant the privilege  of private individual use of that which belongs to all.

It is this tax that provides the means for an efficient distribution of basic food, shelter, medical care and skill training, all of which are essential to life. The distribution should be to every citizen without regard to social status or wealth.  Every individual gets it,  be he Prince or pauper.  In an abundant Society that needs only limited 
labor, a persons labor that is not need should have no moral bearing on his right to receive the benefit of the 
common-share.

 Labor that is needed should be rewarded with a greater share of what is being produced.  It could be and would be given to those who make the free choice of  contributing his labor. It could be and would be done in the capitalist free market economic system. 

 The system of distribution could be done through the same Social Security System that is already in place to distribute the money for the life essentials of retires.  Retirement benefits would simply be added to the basic life  benefits when one reaches the age of retirement from one's freely chosen paid for labor contributions to society. That is the best way for all to start at the same line to both compete and cooperate in building our shared Community of Living

.  Copyright © William Hodge 2012 

The Engine that burns water

When I was a boy, I remember being told that someone had invented an engine that would run on water. The story was that the oil companies had bought up the patent and was keeping it a secret so that they could make profit on selling gas.

I knew this was untrue because engines depended on combustion and water is already burned hydrogen + oxygen [H2O]. Then I figured out that the engine burned hydrogen and the product was water. The oil companies did not need to hide the water engine. It was cheaper to make gasoline than hydrogen.

I tell you this story because it is a Bankers tale. They want you to believe that the economic engine will not run without their fuel [money]. They want you to pay them profit for their fuel. Money is not a thing. It is a process. Money is the bringing together of Hydrogen [Labor] and oxygen [raw material] in the engine [economy] and producing a product [good & service]. Money is nothing more than ignition.
Then when the product is made by those who run the productive capacity machine, it then serves as the gatekeeper for the transfer of those Goods & Service. The Consumer of the product uses money to have the ownership of the product transferred to him. That money is then held in a bank account to be used at a later time by the producer of Goods & Service to produce more product.  Money is not a real thing. It is a contractual agreement for the transfer of goods & service over time. The sovereign power of the Government enforces the power of money to create and trade those things we use or own. 


Bankers are just record keepers. They are the score-keepers of the game and have no right to be paid like a player. In a Sovereign Nation with a Sovereign fiat currency, it is the Nation that owns the spark plug. It is the Nation that ignites the economic engine. There is a reason that interest has been viewed as morally wrong. Interest is a way of stealing using the Government gun.

Debt Limits are Illegal

 

Fourteenth Amendment to the United States Constitution

SECTION 4.

The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.

When the Congress passes spending bills it not only authorizes the spending but the borrowing of money to accomplish the necessary spending if necessary. For the President not to spend the money as Congress has demanded by law is to fail to uphold his oath of office.

If Congress then passes a law limiting spending with a Debt limit, it has passed a law that will not meet the muster of Constitutionality.  If Congress does not raise the limit or pass a new law that removes the original requirement to spend, the President is required by Law to create enough funding to meet the law. The Debt limit becomes null & void.         

Government moves the Economy

There are two kinds of needs. One involves individual consumption and  business productive capacity.  These needs are met out of earnings and borrowing.  They will inevitable create a bubble if they exceed the capacity to repay what is borrowed.

The other kind of need is Community.  That includes infrastructure and general welfare expenditures among others.  If these needs are met by interest bearing debt the result will also be the creation a bubble when the interest on the debt is an excessive component of public spending. 

The difference between Government  and the private component of the economy is the a Sovereign Government with a Sovereign currency has the legal capacity to set the interest it pays on its debt at zero if Congress wishes to do so.  The private sector and non-sovereign States cannot do this.  

The Federal Reserve System has shown this to be true under the Quantitative Easing programs that it has used in this Great Recession.  Similar methods were used during World War II to finance the greatest debt to GDP ratio in the History of the Nation.

This method does not become problematic until there is a shortage of Labor or productive capacity or input material. Government first needs to maintain a safety net floor to prevent extreme poverty and spend on protecting the Nation  It then must build a modern infrastructure and education system limited only by the capacity to provide the labor, production capacity and available raw materials. There is no limit on the interest free money it can create.    

Growing Money for everything

Furnishing food for everyone in the world is already technologically possible.   It would only take a small  % of the available labor to accomplish that. The problem is distribution.  If the goal of the distributors is to maximize profit, then many people will be left by the wayside.  


A great many people don't have  money to buy on the market.  They can't get money by working if there is no work available.  They can't create local growing with their personal labor without the money to sustain their labor to harvest.  So the problem is having money to create local distribution of both food and labor. 


So the solution is two fold.  The first involves growing money.  Every Sovereign Nation has the power to create money, and bypass International Debt. Every Nation has the power to create an effective tax system that will make their money valuable to pay taxes.  A Sovereign Nation can create a low or no-interest loan program with Government grown money to create local production of the essentials of life.


The second step is to use the home grown money to build home grown infrastructure and local distribution systems, not only for food but for clothes and shelter and  teaching basic skills.  


The biggest fault in the modern world is the belief that money only comes from Banks and must cost interest that the poor person cannot pay even if the banker were willing to loan.  The truth is that money is the right of Sovereign nations to create for themselves and distribute that money virtually free of charge into projects that create independence of the people to sustain themselves without being wage-slaves to the Corporate Masters of the World.


Of course none of this is new. It is in fact becoming a world movement of DIY greening of a sustainable world.  It is difficult in many places because the only money resource is charity and that is simply a very limited supply of change.  


The key comes with the understanding that there is always enough money available to the Nation that understand that it is the creator of its own currency.  It does not have to sell out its people to the Money-Changers of the World.  If we learn that money without interest is an act of legal will, we will also learn that it is the hammer that breaks the chain of greed.  There will be enough money to pay for the food. 

The Human Community

Quotation by Tom Paine:

"When shall it be said in any

country of the world, my poor are

happy; neither ignorance or distress

is to be found among them; my jails

are empty of prisoners, my streets

of beggars; the aged are not in

want, the taxes are not

oppressive...when these things can

be said, then may that country

boast of its constitution and

government."

~ Thomas Paine     

MONEY POWER

Democracy will rise superior to the money power.

Posted on May 18, 2012

by William Finnerty  

                          

no copyright claimed

United States President Abraham Lincoln’s MONETARY POLICY

“Money is the creature of law, and the creation of the original issue of money should be maintained asthe exclusive monopoly of national government. Money possesses no value to the state other than that given to it by circulation. Capital has its proper place and is entitled to every protection. The wages of men should be recognized in the structure of and in the social order as more important than the wages of money [interest]. ……………….

No duty is more imperative for the government than the duty it owes the people to furnish them with a sound and uniform currency, and of regulating the circulation of the medium of exchange so that labour will be protected from a vicious currency [private bank-created, interest-bearing debt], and commerce will be facilitated by cheap and safe exchanges…………..

The available supply of gold and silver being wholly inadequate to permit the issuance of coins of intrinsic value or paper currency convertible into coin in the volume required to serve the needs of the People, some other basis for the issue of currency must be developed, and some means other than that of convertibility into coin must be developed to prevent undue fluctuation in the value of paper currency or any other substitute for money of intrinsic value that may come into use……………..

The monetary needs of increasing numbers of people advancing towards higher standards of living can and should be met by the government. Such needs can be met by the issue of national currency and credit through the operation of a national banking system. The circulation of a medium of exchange issued and backed by the government can be properly regulated and redundancy of issue avoided by withdrawing from circulation such amounts as may be necessary by taxation, re-deposit and otherwise. Government has the power to regulate the currency and credit of the nation………………..

Government should stand behind its currency and credit and the bank deposits of the nation. No individual should suffer a loss of money through depreciation or inflated currency or Bank bankruptcy………………

Government, possessing the power to create and issue currency and credit as money and enjoying the right to withdraw both currency and credit from circulation by taxation and otherwise, need not andshould not borrow capital at interest [from the private banking system or their affiliates] as a means of financing government work and public enterprise. The government should create issue and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers. The privilege of creating and issuing money is not only the supreme prerogative of government, but it is the government’s greatest creative opportunity……………………

By the adoption of these principles, the long-felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts, and exchanges. The financing of all public enterprises, the maintenance of stable government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own government. Money will cease to be the master and become the servant of humanity. Democracy will rise superior to the money power.” [1]

http://news-beacon-ireland.info/?p=5389

Purpose in Government

United States of America

We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America.


When the newly free Colonies called for a convention that ended up writing a Constitution for a new Government, we alread had a Government. It operated under the Articles of Confederation. Why did we decide we need a new Government.

It's simple.  The first try was not working.  The Colonies were acting like 13 Nations and were constantly fighting. We had just created a new Europe.  And most of the countries of old Europe were stronger than us.  We need to work together or end up as colonies again.  We needed to "form a more perfect union.".

We need to be sure that everyone was treating everyone else with fairness.  We need to be sure that people and the laws of one state were treated with respect in each of the other states.  We needed to "establish justice".

We needed to be sure special interest groups did not take up violence against others with whom they had disagreements.  We need to be sure that there was no armed resistance to law and order.  We needed  "insure domestic tranquility".

We also were in danger from outsiders who wanted to use our land for their purposes.  We need to be aware of danger from the outside.   We needed to "provide for the common defense".

We need to try to see that our citizens did not starve, or go homeless or suffer unduly  in sickness or be unnecessarily ignorant. After all, in a democratic society the government is the institution of the people. We needed to "promote the general welfare".

And lastly we need to have control over our individual lives and we need this freedom of choice to be guaranteed to our descendants.  We needed to "secure the blessing of  liberty to ourselves and our posterity.

So this Convention proposed, voted on and wrote down the ways they thought we could best make these things happen. They call it the Constitution.  After the appropriate number of free colonies voted to accept this  document as our governing covenant the people had agreed to  "ordain and establish this Constitution for the United States of America.

It has take more than 200 years and a bloody Civil War and a lot of other bloodshed to make us the Greatest Nation on Earth.  There is a lot more to do to make it "Perfect"  As long as the People  make sure that it is their Government and working for their interest we still have a chance  to secure the blessings of Liberty to our posterity.  In the words of Abraham Lincoln it is up to us to make sure  "that government of the people, by the people, for the people, shall not perish from the earth." 


Copyright © William Hodge 2012

You can't touch your Money

These picture have nothing to do with this post . I put them here for personal reasons.

....................................My daughter Glenda..................................

..........................My son Paul and my Grandson Ryan....................  

Money does not exist as a thing. It is only an entry in a Bank account.  If you have a Bank account that credits you with $100 and you ask them to give it to you, they can't. There is no real thing that is money.


  Instead They will give you a  Federal Reserve Note and erase $100 from your account    That means that now the Federal Reserve Bank owes you $100.  The Note says that the Treasury of the United States has ordered that this Note 
[Reserve Bank Debt|] can be used as Legal Tender to pay "for all Debts, public and private.


You then go to Big Box Market and buy some stuff.  The Big Box Market says you owe them a $100. Since you don't have $100 you give Big Box Market the Federal Reserve Note. Now the Federal Reserve Bank owes the Big Box Market $100   Big Box Market takes the Federal Reserve Note to the Bank and the Bank puts it in their vault and credits the account of the Big Box Store with $100 in money.


The reason these notes exist is because their are people who do not want to move their money from their account to another by electronic transfer or by writing a person check that orders the Bank to do this.  In stead they want to use a Universal IOU and that is what a Federal Reserve Note is.  


The Banks buy them from the Federal Reserve Banks who bought them from the Treasury who printed them , just as Treasury make coins and sell them to the Federal Reserve Bank. The Fed pays face value for the Coins and the Government earns a profit. The Federal Reserve only pays cost of printing for the Notes and the Fed Banks make a profit when they sell them to Corporate Banks.  The Corporate Banks use them as a service to customers.. It represents only a tiny fraction of the money that is written into the Banks Accounts.


The final question must be, why do people use them if the Banks can never give them Money. Remember, money does not exist as a thing.  The reason is that Government has the constitutional right to create money.  It also has the right to charge you taxes. If you owe the Government $100 in taxes, you cannot pay it with labor or chickens or corn or gold. You can only pay it with money.


 If you refuse to pay your taxes you will go to prison.  If you don't want to go to prison you had better trade your labor or chickens or corn or gold for money.  Only money has any value when you owe the government a tax debt.  Now you know why all money is just a way to pay debt.  Money = Debt


This was first written as a Note in my Facebook community page
Pax Village Voice 
 http://www.facebook.com/pages/Pax-Village-Voice/15299
8464720656?ref=mf




Copyright © William Hodge 2012

Simple machines can build a Village

Our World does not have to be complex. We cannot live without machines, but they do not have to dominate our lives. We can make them  serve our needs to live a simpler but a more permanently productive life.  Machines can multiply our efforts without mastering our lives. Machines can help us build a Village.  


The Village can nurture our sense of each other and the knowledge that we do not live alone. It will not replace the global world but it will give those who wish it the power to live with the world without being a slave in the world. It takes the Village to make a human community.

The Earth cannot be owned.

William Hodge  -   -  Public

We do not tax to spend. We tax to be sure that those who gain profit from the Commons of the Nation pay an equitable share to the common people of the Nation. Common people are more than just wage slaves to the Wealthy.

This is a post I received in a discussion group that I participate in.
I wanted to share it with you.

Richard Tyson

to public-banking

There are a few things that are essential to existence. Land, food, water, air. Without just one of these no human can live. To be taxed on the use of any of these, when the usage is for basic survival, is antithetical to the most basic of human rights. Every person, has in theory, equal right to that which is essential for survival, ie a minimum usage of land, food, water, and air.

When usage exceeds that which is essential then it is fair that those who enjoy excess are taxed. When an oil company drills they're doing it for profit at the expense of those who would rather enjoy a walk through unspoilt nature. One entity is taking away from the other and it would be only right for a certain level of compensation to occur. If they're paying from profits or paying a land tax, they're essentially paying because of their use of the land. At the basic level, it doesn't matter what the basis of the tax is, as long as compensation paid is equitable and results in benefit to all of society.

As to taxing income being punitive. Grrrrrr. Tell me again how one person is worth millions times more than another? ( A garbage collector is probably more important than a doctor because he stops disease before it can occur) Again, there are minimum levels of income that are to be taken into account. A certain minimum allows one to barely survive, another level allows a modicum of comfort, another level is just plain greed. No one should should be taxed when they attain a modicum of comfort. Anything above that should be taxed until the "take home" pay is the same as the tax cut off limit. If the super wealthy were to pay land tax rather than income tax they would never come close to paying what they should. Far from being punitive, tax on excessive income is the right thing to do to even the standard of living for everyone.

When this is done the incentive to speculate is removed and the result will be a far safer, more secure and happier society. Anything else results in the crap we currently experience.

While we have the opportunity to gain at the expense of another no economic system can work in the best interests of all. Tax is one way of leveling the playing field, and how taxes are instituted are not nearly as important as who and in what amounts they come from and how they're distributed.

There is never a Shortage of Money.

Here we are in the middle of an unemployment Depression and Radical Republicans and some semi- intelligent Democrats are telling us we must destroy Government Service to people because there is not enough money.  They say we must stop borrowing because the interest will Bankrupt our Grandchildren.  POPPYCOCK.  

It is possible for the Treasury Department to borrow enough money from the Federal Reserve Banks at 0% interest to finance the entire National Debt.  Only the Congress prevents this from happening by allowing only a special group of appointed Corporate Bankers to bid at the Primary Auction for Treasury Debt. 

The only role the Fed is allowed by law to play is to buy up debt on the secondary auction in order to control interest and money supply. But even in that role the Fed has keep interest rates at almost zero. and the Treasury debt it buys becomes interest free because the interest it Fed earns is returned to the Treasury as profit.
 http://www.federalreserve.gov/newsevents/press/other/20120110a.htm

Now we know that money is unlimited and is scarce only because your friendly Wealthy elected Congressmen have made it scarce by law to aid their own  SPECIAL INTEREST.  the question becomes when is it possible to spend this unlimited money in a way that helps the purposes of the Nation and does no harm

The argument that is used most often is that if you spend this magic money it will cause inflation. When can you spend money without causing inflation?  First you must understand what money does when you spend it. The Nation already has all the money it needs whenever need it.

Having money is like having gas to power your vehicle.  It is like having enough gas to power all the vehicles we will ever have for a million years.  So what do you need to use gas wisely. You need a driver [skilled labor].   You need a truck [productive capacity]. You need a load [resources].  If you have a road to travel and a destination you can fill up the truck with gas and get moving. In the middle of a recession you have the all three available. That is the best time to use your the unlimited supply of gas. 

If on the other hand  all the drivers, trucks, and loads are in use, then pumping more new gas will just spill on the ground and cause a fire [inflation].  A good thing to do then is stop pumping.  Your problem is now training new drivers [education] and building more trucks [capitol investment] and building roads [infrastructure]. 

This ain't Rocket Science Folks. It is no shortage of money ever.  It is POLITICAL, pure and simple.  I  suggest you elect a new Congressman who understands Money.



Copyright © William Hodge 2012

Time for Public Owned Banks has Come

I received the following forwarded message from Ellen Brown of the 

http://www.publicbankinginstitute.org/ in a discussion group about public Banking

I believe that Public Banking is the answer to removing the hands of Internationale Corporate Banking from the throats of taxpayers on the National, State, and Local levels. I wanted to share it with you on my Blog.  It is time to stop paying the Bankers for doing what we can do for ourselves. 

William Hodge

from:		Ellen Brown ellenhbrown@gmail.com
reply-to:		public-banking@googlegroups.com

                                                                                                                         

---------- Forwarded message ----------
From: James Stivers <jwstivers1@gmail.com>
Date: Sat, Feb 25, 2012 at 12:20 PM
Subject: the circus has come to town

My latest article: http://jamesstivers.com/circus.pdf

The website has been updated in general to reflect my change in political affiliation.

The Circus has come to Town

As of this writing (February 21, 2012), Idaho has joined the nation in Presidential politics. For many years, Idaho's primary system decided its partisan races at the end of May, including that of Presidential nominees. Usually, that made Idaho's 32 Republican delegates irrelevant because, by then, the nominee had already been decided for all practical purposes.
This year, with changes to a caucus nominating process to be held in March, Idaho joins the madness of "Super Tuesday" and the flurry of candidates flying in and out of the state wooing voters. It is a spectacle that folks in the back country are not used to seeing.
Unfortunately, it is also distracting citizens from state business. Idaho has a citizens legislature that meets during the winter months. The March 6th Presidential event comes in the middle of the session and competes for the attention that voters should be giving to consider important legislation.
One such proposed legislation is Rep. Brian Cronin's (D - Boise) bill to study a state bank (HCR030). This bill proposes to form a commission to study the state bank of North Dakota and see if the idea would work here in Idaho.
When I ran for the state senate in 2010, I made an Idaho State Bank the centerpiece of my campaign. I believe there is no more important legislation than this one for the future of Idaho.
Regrettably, Republicans have not shown interest in this idea. In some respects, they have been hostile to it. During my campaign, I suffered attacks from my Republican colleagues for flirting with socialism. The general consensus was that state government should not be in the banking business. Ron Paul Republicans who have now come to dominate the Party in the state evidenced even greater hostility.
In spite of the fact that the state Republican Platform calls for monetary reform and eliminating the Federal Reserve System, somehow, Ron Paul Republicans fail to see how an Idaho State Bank would be an important step toward that goal. Nature hates a vacuum and so does money and the notion that we can abolish the Federal Reserve and not end up with a de facto substitute is immensely naive. Government entities need places to put their tax receipts. As soon as they put them into a private bank, a new system will be created by default. Wouldn't the citizens of this state be better served if that bank was owned and controlled by the people rather than stockholders out to make a profit?
Actually, many Ron Paul Republicans do support the state bank concept. I discovered that when I polled the members of the Campaign for Liberty in 2009. It is really a vocal minority within the party that uses scare tactics and name-calling to discredit the proposal. Unfortunately, that vocal minority has control of the party and there seems to be no hope in sight. It appears that no faction within the Republican Party will come to the aid of this bill.
Now that the Idaho Bankers Association has begun organizing an opposition to this bill, it appears stalled in committee. Ron Paul Republicans are mesmerized by the election process; not a single discussion on state legislation has appeared on their Internet forum groups. I tried to bring this bill up for discussion and got token nods from a handful of old friends.
In contrast, Idaho Democrats have embraced the state bank proposition and are pushing forward with it. Ironically, it was the liberal Democrats in Congress who included Ron Paul's "Audit the Fed" bill into their larger package of banking reform - and then passed it. It appears that Idaho Democrats would follow the same course were it not that there are so few of them. Democrats comprise a mere 15% of the legislature.
The Republicans have complete control of the state and all they seem to be concerned about is contraception, evicting Occupy Boise and other inanities. I suppose if we want a state bank in Idaho, forward-thinking Republicans and Independents will have to switch to the Democrat Party and change the representation in the Legislature.
That is what I am doing.
-- James Stivers

Taxes and Basic Income

"Why is it fair that I should be paying a higher percentage of taxes than anyone else?" - Sheldon Adelson, net worth $21.5 billion USD (2011) 

There is no good reason why anyone should pay
a higher Tax Rate than others. After the Community has provided every person with sufficient food, serviceable shelter,  medical care, and free access to education that teach all skills necessary to prepare a person according to his ability and desire to express his contribution to living, a flat tax rate will be fair to all.

If the essentials of life are not guaranteed, it is necessary to make sure that we do not create a Social division of wealth so great that we end up with a society of Noblemen and Serfs. That is the major reason for progressive taxes. 

In the age Debt Currency, taxes are not levied to fund the activities of Government. They only serve to control the amount of currency in circulation to prevent an imbalance between enough to operate the economy at maximum efficiency and too much that will lead to inflation. 

The operations are actually funded by creating money through borrowing and spending it into the economy to achieve the Public Good that is mandated for Government to do. That is the real reason that we have had a growing debt for most of the Nations history. As the Economy needs more money to function it is created by debt. Money = Debt. Taxes remove money that is not needed.

The problem is that we have done it poorly. Banks control Debt and they find it useful to expand rapidly and then contract rapidly in order to create opportunity to convert Monetary wealth accumulated through interest into real wealthy by foreclosing on Debt collateral. We need to remove Debt creation from Banks and place it in the hands of Government.

Copyright © William Hodge 2012