Putting Chartalism In Its Place?

[Gunnar Tómasson <gunnar.tomasson@xxxxxxxxxxx>]

The following exchange of today's date on Gang8 may be of interest.

 

Gunnar

 

*******

 

Fellow Gang8 member's statement:     

 

I of course agree...that what gives money its value is its acceptance in taxes. 

 

[My comment:  What does it mean to say that money has value because of "taxes"?

Consider a Kingdom without PRODUCTION - where is Money's Value?]

 

Fellow Gang8 member's statement:

      My question was, What if the US abolishes taxes, as Mr. Bush seems intent on doing, ultimately.
      Your answer was,..., if this happens then money will lose its value!

 

[My comment: If Bush were to nuke America's production capacity, US money would become valueless in a New York second. 

 

BUT, if Bush were to reduce taxes to ZERO, everybody would be happy. 

 

WHY? 

 

Because they would be left holding more of their money's "value" than before. 

 

SO? 

 

Get REAL!] 

 

Gunnar (in feisty mood on a hard day's night!)