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Posted by Warren Mosler (207.69.137.8) on 05:22:13 03/28/04
In Reply to: Re: National Review Online - Questions posted by Uwe Burkheiser
:
: So, my questions to you are:
:
: How does the state get into a position to tax?
Congress is given the power to tax.
Who pays what and why?
A tax is levied, then the state spends its otherwise worthless currency, providing the thing required to pay the tax in exchange for real goods and services for the state.
:
: How does he obtain the real means to enforce his demand for a tax prior to the first token issued and collected? (Soldiers, police, basic legal system at least).
Yes, without penalty for non payment it doesn't work, as evidenced by currencies that vanish when tax collection ceases.
:
: Warren, at least to me, the stringent validity of any chartalist concept of money depends upon the outcome of these questions related to the pre-financing requirement of the state. As long as these questions are not answered in a plausible manner - there s a whole in the bucket.
:
: Sunday greetings
: Uwe
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