65. Monetary Recall: An illegitimate Tax

Monetary Recall: An illegitimate Tax
Bob Komives
::

Our Government tries, in vain,
to finance its actions
by recalling from us
--taking back from us--
a portion of the money
that it minted for us
and spent among us.

||

One government action is conspicuous for its absence from my list of legitimate taxes. The governmental action that we most often call "taxation" is an illegitimate (or pseudo) tax. I call it, monetary recall.

In ignorance, national governments recall money from their citizens, hoping to reduce the market wealth controlled by taxpayers and pass that investment power to the government. Since this pseudo taxation does not tax, it is no wonder that these national governments get confused when they try to balance their budgets. They try to balance real investments with pseudo taxes --fantasy taxes. A minting government can tax national resources by minting and spending money, but cannot get that money back --even though it believes and tries, and tries and tries again.

While few of us will kid ourselves into believing that the day we spend today is actually the day we spent yesterday, national governments continue to believe that the dollar that they recall today to spend tomorrow is the same one they issued yesterday. It is not because --in anticipation of the recall-- wages and prices have risen to null the effect of the recall. Monetary recall generates no income for the minting government, rather it inflates the currency, decreasing its value.

:: Bob Komives, Fort Collins © 2006 :: Plum Local IV
:: 65. Monetary Recall: An illegitimate Tax ::
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