Most currencies used in the world today are just pieces of paper or digital numbers created by central banks. When they print more money, supply and demand still applies, so the money loses value. Authorized banks employ fractional reserve banking, which allows them to create money out of thin air with a loan to someone while only holding a fraction of the cash behind it. Because the printing or digital creation of more money inflates the supply, this is referred to as the “inflation tax.” This delicate combination of force and fraud is designed for theft on a massive scale.
If people could avoid the inflation tax by using money that doesn’t consistently lose value, they would. To impose a currency, governments must outlaw competing currencies. This means if you use a different device of accounting for trade than the official money, you will be locked in a cage or face other “legal” sanctions. Eventually, a government’s money becomes so widely used that no one even questions it. Propaganda about how essential this racket is to the economy keeps it going.
Government money that isn’t backed by anything allows all who benefit, either as early recipients of the new money or bankers authorized to create it, to siphon off massive amounts of wealth from the entire economy. It doesn’t matter if banks have monopoly power from governments, or governments themselves run the banks, they exist to serve the super rich. As with all taxes, the purpose is to transfer wealth from the poor to the rich. In the case of the inflation tax, it is also a great way to convince the poor they aren’t being taxed at all. The inflation tax hurts the poor and working class the most, and no one who uses government money is safe from it.
Chapter 5 Section II From FREEDOM! by Adam Kokesh
I am the author of FREEDOM!, a book endorsed (I mean banned) by the US Department of “Justice.” You can get a copy here. I’m running for Not-President in 2020 on the platform of the peaceful, orderly, and responsible dissolution of the United States federal government. You can find out more here. I am currently on my #TaxationIsTheft tour! You can find an event near you here. Whoever has the top comment on this post after 24 hours can claim a free signed copy of FREEDOM! by sending me a message with their address.