Re: Basic Income and Taxation

[I2DO4U@xxxxxxx]

Flaherty and Hummel are wrong in assuming they demonstrated any thing, but
how, the exponential growth of debt is a being hidden by government bonds;
and being passed back to that same member of the economy, we all know as the
tax payer.

      The other major flaw in the Debt Virus hypothesis is that it ignores
the role of the central bank in         the money-creating process. The
Federal Reserve creates a measure of debt-free money when it buys government
bonds from the public.  The Fed buys the bonds on the open market and pays
for them by creating new checkbook money.  The new money is therefore created
without any additional debt appearing in the economy
(http://www.cofc.edu/~flaherty/antidote.html).

In a message dated 3/27/00 8:13:37 AM Pacific Standard Time,
william_b_ryan@xxxxxxx writes:

<< Flaherty and Hummel are wrong in assuming that since they have
 demonstrated the fallaciousness of the "interest is the root of all evil"
 hypothesis, they have thereby demonstrated that there is no inherent
 tendency for debt to grow exponentially compared to consumable production.
 They are closing their eyes to empirically observable fact in the manner
 of John-Baptiste Say
 http://www.geocities.com/CapitolHill/Senate/7018/say.html >>