RE: A Brief History of Taxes, Fiat money and The Chinese Proto-Socialist Emperor Who Ruined his Country waaay Before Marx was a Thing
Interesting I didn't know that event in China.
I really manage my own hypothesis about high taxes. According to my vision, high taxes are a mechanism that the Central Bank uses to absorb the monetary mass that they put into circulation. That is, the Central Bank buys 1,000 million sovereign bonds issued by the Government, which introduces them into the economy through public spending, which generates inflation unevenly in the economy, as described by von Mises in his theory of money and the credit, but then the State collects around 800 million in taxes, and pays the Central Bank all that money, so that the total money supply only increases 200 million, redistributing capital and directing the economy in a centralized manner. In such a way that inflation does not increase too much from one moment to another, but that allows the Bank and the government to manage the economy as they want. If the State becomes bigger, it will need more money from the Central Bank, so the money issue will be higher, and to control that, they need to raise taxes, keeping inflation low so that the industrial and commercial sector can make a precise economic calculation.
Definitely the system is more complex than as I have explained here, however, as I said, I think taxes do not have the same purpose that they had in past times.
In the past this was not possible because there was no paper money in the West, although I think that in China they had already invented it.
Good publication, Greetings!
I think what you say plays a considerable part. Mainly I think we have bunch of disjointed idiots seeing one short term trick after another and trying to implement a bunch of them. Looking at the consequences your theory totally fits the bill and even if it wasn't the original goal, I'm sure there have been praise about pulling off what you've described.
Yes, when I realized this system, I thought it was a brilliant plan, and that only a considerably bright mind in economic terms could have designed such an economic plan, however, it seems to me that such a system could only have been created based on the trial and error.
The first tests began during the price revolution, when the private banks of London began to use banknotes, then the Stockholms Bank was the first to use paper money without backing it entirely in gold, but his bank went bankrupt. I imagine that at that moment the inexperience of the bankers led them to overestimate their credit capacity, however, at that moment they realized the power they could get, so they went to the King of Sweden and convinced him to create the Central Bank of Sweden, the first central bank in the world, from there it expanded to London, and suddenly these bankers were producing money through fractional reserve banking and redistributing capital into the hands of the men who would develop the first industry in the world, the industrial revolution.
They financed Napoleon and the Spanish-American revolutions with Francisco de Miranda because they needed to remove the Catholic monarchies to implant their central banks and implement an industrial model that was not compatible with the model of feudal aristocracy.
And they were successful, The French monarchy fell, and the Spanish Empire lost its colonies. The first bank in Venezuela was the British Colonial Bank administered by the son of Francisco de Miranda, the first leader of Spanish-American independence. Then they spread to the United States and Russia, and then the entire financial network was one.
Since then, these bankers have been playing with the economy, a few decades ago in Japan was designed quantitative easing, a more sophisticated mechanism to continue injecting credit to the economy but reducing the risk of generating the dreaded inflation.
The mechanism that they use I describe a little better in this publication, in case you are interested:
https://steemit.com/politics/@vieira/the-hand-of-the-invisible-men-how-the-social-hierarchy-works
I'm sorry to have extended, I started writing like crazy.
Thanks for sharing. Here is something from me: https://www.youtube.com/playlist?list=PLhyKYa0YJ_5CL-krstYn532QY1Ayo27s1
It's actually from a primarily gaming channel and there were few bits of economic ignorance due to Keynesian brainwashing. But overall it was good.
No big deal. It happens to a lot of smart people.
Oh, I did not know that YouTube channel, I'll take a look tonight.