1 00:00:00,720 --> 00:00:05,359 Speaker 1: What's up, everybody. Welcome back to another episode of financial Heresy. 2 00:00:05,519 --> 00:00:09,799 Speaker 1: Today we are going to be discussing the different ways 3 00:00:10,360 --> 00:00:14,760 Speaker 1: that a government gets income. Now, I do first need 4 00:00:14,800 --> 00:00:19,759 Speaker 1: to apologize because my new studio, we are still building 5 00:00:19,760 --> 00:00:22,639 Speaker 1: it out here, so my audio is not going to 6 00:00:22,720 --> 00:00:25,520 Speaker 1: be up to par for this episode. I believe by 7 00:00:25,560 --> 00:00:29,280 Speaker 1: next episode we'll have everything up and running, will be 8 00:00:29,320 --> 00:00:32,760 Speaker 1: back to full production quality here, but for now, we'll 9 00:00:32,760 --> 00:00:35,360 Speaker 1: have to make do with what we have here. So 10 00:00:35,400 --> 00:00:40,599 Speaker 1: we're discussing how the government gets income, and uh. In 11 00:00:40,600 --> 00:00:43,880 Speaker 1: in that process, we will be answering the question whether 12 00:00:44,000 --> 00:00:49,720 Speaker 1: taxation is theft um. This is potentially going to be 13 00:00:49,840 --> 00:00:56,120 Speaker 1: a more controversial episode here simply because for many people, UH, 14 00:00:56,200 --> 00:01:01,280 Speaker 1: many people believe that there is a certain morality involved 15 00:01:01,520 --> 00:01:05,600 Speaker 1: in paying your taxes, a certain morality involved in a 16 00:01:05,680 --> 00:01:11,240 Speaker 1: government taxing its people, especially given what it spends that 17 00:01:11,400 --> 00:01:14,560 Speaker 1: money on. And so we are going to be answering 18 00:01:14,760 --> 00:01:17,600 Speaker 1: those questions today. And what we have to do in 19 00:01:17,680 --> 00:01:20,600 Speaker 1: order to answer these questions is go back to the basics, 20 00:01:20,640 --> 00:01:24,280 Speaker 1: go back to the roots here and determine what actually 21 00:01:24,840 --> 00:01:28,640 Speaker 1: what actually happens when a government is getting its income. 22 00:01:29,440 --> 00:01:31,920 Speaker 1: So we always like to boil things down to its 23 00:01:32,000 --> 00:01:36,280 Speaker 1: most basic form in order to understand the principles, the 24 00:01:36,360 --> 00:01:39,840 Speaker 1: foundations of what is going on. Because when you enter 25 00:01:39,880 --> 00:01:44,320 Speaker 1: into reality, like the situation of the United States, let's say, 26 00:01:44,319 --> 00:01:48,040 Speaker 1: where if you have a federal government, state governments, city 27 00:01:48,040 --> 00:01:52,880 Speaker 1: governments all collecting uh different forms of taxes like income 28 00:01:52,920 --> 00:01:56,680 Speaker 1: tax and sales tax and tariffs, and then you have 29 00:01:56,760 --> 00:01:59,480 Speaker 1: the government decided to spend that money on certain things. 30 00:01:59,520 --> 00:02:01,680 Speaker 1: And then you also have things like the central banks 31 00:02:01,720 --> 00:02:06,040 Speaker 1: printing money, and you have borrowing taking place. It really 32 00:02:06,120 --> 00:02:10,800 Speaker 1: gets too complicated to dissect all of those moving parts 33 00:02:11,040 --> 00:02:15,560 Speaker 1: together and determine what's going on and whether it's good 34 00:02:15,680 --> 00:02:17,840 Speaker 1: or bad, or right or wrong. So what we like 35 00:02:17,880 --> 00:02:20,360 Speaker 1: to do is we like to boil things down, break 36 00:02:20,400 --> 00:02:25,720 Speaker 1: them down to their most basic parts, oversimplify things, because 37 00:02:25,760 --> 00:02:28,720 Speaker 1: then we can get a clear view of what's actually happening. 38 00:02:28,720 --> 00:02:32,240 Speaker 1: I use the map analogy before. When you are trying 39 00:02:32,280 --> 00:02:35,080 Speaker 1: to make your way from point A to point b, uh, 40 00:02:35,240 --> 00:02:39,079 Speaker 1: you use a map, and a map is only useful 41 00:02:39,639 --> 00:02:44,680 Speaker 1: because it gets rid of all of the real information 42 00:02:45,120 --> 00:02:49,160 Speaker 1: about the terrain except what is useful about getting from 43 00:02:49,200 --> 00:02:52,080 Speaker 1: point A to point B. So on the map, UH, 44 00:02:52,240 --> 00:02:54,560 Speaker 1: there is no if you're if you're using a map 45 00:02:54,639 --> 00:02:59,480 Speaker 1: for just you know, driving somewhere, there's usually no topography 46 00:02:59,480 --> 00:03:02,080 Speaker 1: on that app Um, it's going to be scaled down, 47 00:03:02,160 --> 00:03:04,800 Speaker 1: so it's not going to be the exact same size 48 00:03:05,040 --> 00:03:08,799 Speaker 1: as the terrain is in reality. Um, you are going 49 00:03:08,880 --> 00:03:11,560 Speaker 1: to have a one dimensional picture instead of the three 50 00:03:11,560 --> 00:03:14,760 Speaker 1: dimensional reality. UM. And if you were to try and 51 00:03:14,800 --> 00:03:18,080 Speaker 1: maintain all of the aspects of reality on the map, 52 00:03:18,400 --> 00:03:20,720 Speaker 1: then the map would cease to be useful. Because the 53 00:03:20,760 --> 00:03:22,919 Speaker 1: only reason the map is useful in the first place 54 00:03:23,200 --> 00:03:24,760 Speaker 1: is because it gets rid of all the things that 55 00:03:24,760 --> 00:03:27,200 Speaker 1: are not necessary to understand how to get from point 56 00:03:27,240 --> 00:03:29,720 Speaker 1: A to point B. It scales it down and distills 57 00:03:29,760 --> 00:03:32,600 Speaker 1: only what you need in order to understand just the 58 00:03:32,639 --> 00:03:34,960 Speaker 1: parts of the terrain that help you get from point 59 00:03:35,000 --> 00:03:36,400 Speaker 1: A to point B. And so that's what we do. 60 00:03:36,480 --> 00:03:38,640 Speaker 1: We break things down, get rid of the noise that 61 00:03:38,680 --> 00:03:42,000 Speaker 1: we can focus on just the things that are useful 62 00:03:42,680 --> 00:03:45,720 Speaker 1: for what we're trying to understand. So, uh, in order 63 00:03:45,760 --> 00:03:48,480 Speaker 1: to do this with taxes, let us go first to 64 00:03:49,200 --> 00:03:55,080 Speaker 1: our hypothetical desert island economy. UM, we've got a plane crash. 65 00:03:55,280 --> 00:03:58,640 Speaker 1: Plane crash, just like you know the TV show lost, 66 00:03:59,040 --> 00:04:03,080 Speaker 1: they get stranded on an island. And then on this island, um, 67 00:04:03,120 --> 00:04:06,000 Speaker 1: we have a group of people, let's say a dozen 68 00:04:06,040 --> 00:04:08,840 Speaker 1: people who decide, you know, who have to start functioning 69 00:04:08,960 --> 00:04:12,280 Speaker 1: as a outworking economy. They are you know, their own 70 00:04:12,360 --> 00:04:15,840 Speaker 1: isolated little nation state here. So people start to act, 71 00:04:16,120 --> 00:04:19,120 Speaker 1: you know, in in their various roles to uh to 72 00:04:19,560 --> 00:04:24,000 Speaker 1: to make the island life prosper. And so we've got 73 00:04:24,000 --> 00:04:27,640 Speaker 1: all these roles taking place now, um on this island, 74 00:04:28,200 --> 00:04:33,279 Speaker 1: we have we have the discussion of taxation come up. Um. 75 00:04:33,320 --> 00:04:35,279 Speaker 1: The reason for this is because we've got one person 76 00:04:35,320 --> 00:04:38,840 Speaker 1: who gets coconuts. Now, this person who gets coconuts, they 77 00:04:38,880 --> 00:04:41,840 Speaker 1: have enough coconuts where they can just eat the coconuts 78 00:04:41,839 --> 00:04:44,680 Speaker 1: and drink the water the milk from the coconuts, and 79 00:04:44,839 --> 00:04:47,400 Speaker 1: they have enough food and water just from that. But 80 00:04:47,480 --> 00:04:50,640 Speaker 1: they're also able to get more coconuts than they need. 81 00:04:50,720 --> 00:04:52,560 Speaker 1: And so they go to other people on the island 82 00:04:52,560 --> 00:04:55,039 Speaker 1: and they say, hey, do you want coconuts? Um. And 83 00:04:55,040 --> 00:04:56,880 Speaker 1: there's another person there who just happened to be a 84 00:04:56,920 --> 00:05:01,400 Speaker 1: good uh fisherman in his obvious life, and so he 85 00:05:01,440 --> 00:05:04,520 Speaker 1: goes out into the ocean, into the shallow waters, and 86 00:05:04,760 --> 00:05:09,120 Speaker 1: he is able to catch fish. So the coconut collector 87 00:05:09,880 --> 00:05:13,760 Speaker 1: exchanges coconuts for fish with the with the fisher, and 88 00:05:13,800 --> 00:05:17,560 Speaker 1: so they are able to participate in exchange with each other, 89 00:05:17,680 --> 00:05:20,679 Speaker 1: and um, they're both better off as a result, because 90 00:05:21,080 --> 00:05:24,320 Speaker 1: the person who catches fish they want some coconuts to 91 00:05:24,320 --> 00:05:27,359 Speaker 1: make their life better, and the person who collects coconuts 92 00:05:27,360 --> 00:05:29,720 Speaker 1: wants some fish to make his life better, and so 93 00:05:30,040 --> 00:05:34,400 Speaker 1: they both profit by engaging in exchange with each other. Uh. 94 00:05:34,480 --> 00:05:37,679 Speaker 1: This this shows valuation is subjective, which we've talked about before, 95 00:05:37,720 --> 00:05:43,480 Speaker 1: because um, the coconut collector has many coconuts, but he 96 00:05:43,560 --> 00:05:46,919 Speaker 1: wants some fish, so he trades some coconuts for some fish. 97 00:05:47,160 --> 00:05:50,360 Speaker 1: He doesn't trade all his coconuts for all fish, because 98 00:05:50,680 --> 00:05:53,120 Speaker 1: it's only the first few fish that are more valuable 99 00:05:53,200 --> 00:05:56,160 Speaker 1: to him than his last few coconuts. And so this 100 00:05:56,279 --> 00:05:59,760 Speaker 1: shows how the value of something diminishes as your units 101 00:05:59,760 --> 00:06:04,839 Speaker 1: of at object increase. And so as he collects more coconuts, 102 00:06:04,880 --> 00:06:07,159 Speaker 1: those more and more coconuts are less and less and 103 00:06:07,200 --> 00:06:09,760 Speaker 1: less valuable to him. But if he can exchange those 104 00:06:09,800 --> 00:06:12,560 Speaker 1: for fish, those fish are much more valuable to him 105 00:06:12,560 --> 00:06:15,160 Speaker 1: than those last few coconuts. And it's the same with 106 00:06:15,200 --> 00:06:17,520 Speaker 1: the fishermen. So they are able to exchange with each 107 00:06:17,520 --> 00:06:20,680 Speaker 1: other and they're both better off as a result of 108 00:06:20,720 --> 00:06:23,680 Speaker 1: that exchange. The value of the fish or the coconuts 109 00:06:23,720 --> 00:06:27,000 Speaker 1: are not objectively more or less valuable compared to each other. 110 00:06:27,320 --> 00:06:29,840 Speaker 1: It's subjective based on what the person who's exchange in 111 00:06:29,880 --> 00:06:33,320 Speaker 1: them wants. So they trade with each other and they 112 00:06:33,360 --> 00:06:35,600 Speaker 1: both are better off as a result of that exchange. 113 00:06:35,839 --> 00:06:39,080 Speaker 1: They both profit, and that's why they want to engage 114 00:06:39,080 --> 00:06:43,120 Speaker 1: in the exchange. If only one party profits in an exchange, 115 00:06:43,320 --> 00:06:46,440 Speaker 1: then the other party will not participate in that exchange 116 00:06:46,520 --> 00:06:49,960 Speaker 1: because they're not going to They're not going to profit. Um, 117 00:06:50,080 --> 00:06:53,080 Speaker 1: they don't. They they don't gain anything by by doing that. 118 00:06:53,160 --> 00:06:58,240 Speaker 1: So whenever a free exchange happens where both parties voluntarily 119 00:06:58,320 --> 00:07:02,039 Speaker 1: choose to engage in exchange, it's because both parties are 120 00:07:02,040 --> 00:07:05,280 Speaker 1: going to profit as a result. Now, there are other 121 00:07:05,320 --> 00:07:08,160 Speaker 1: people on the island. Some people, you know, gather sticks, 122 00:07:08,160 --> 00:07:10,440 Speaker 1: some people build huts, some people you know, they all 123 00:07:10,480 --> 00:07:12,720 Speaker 1: have their own little uh, their own little jobs that 124 00:07:12,760 --> 00:07:16,480 Speaker 1: they do. But there's one person on the island who, 125 00:07:16,840 --> 00:07:21,920 Speaker 1: for let's say, let's not even give the reason, for 126 00:07:22,000 --> 00:07:25,400 Speaker 1: some reason, is not has not yet been able to 127 00:07:25,440 --> 00:07:28,520 Speaker 1: find anything that they can do that is valued by 128 00:07:28,560 --> 00:07:32,920 Speaker 1: anybody else on the island. They are also, for some reason, 129 00:07:33,000 --> 00:07:38,320 Speaker 1: incompetent at being able to produce food for themselves. So 130 00:07:38,400 --> 00:07:42,320 Speaker 1: this person is getting more and more hungry, and every 131 00:07:42,320 --> 00:07:45,840 Speaker 1: time he tries to offer to do something for somebody else, 132 00:07:46,400 --> 00:07:48,920 Speaker 1: the other people don't want it. So he goes and 133 00:07:48,960 --> 00:07:50,720 Speaker 1: he says, hey, I was able to collect a bunch 134 00:07:50,800 --> 00:07:53,280 Speaker 1: of dead leaves for you. Will you give me some 135 00:07:53,800 --> 00:07:56,160 Speaker 1: coconuts for these dead leaves? And the person with the 136 00:07:56,160 --> 00:08:00,440 Speaker 1: coconuts says, no, I'd rather have my coconuts than you're leaves. 137 00:08:00,440 --> 00:08:03,680 Speaker 1: I have no use for those dead leaves. Um, same 138 00:08:03,720 --> 00:08:06,120 Speaker 1: thing with the person who catches some fish. He doesn't 139 00:08:06,120 --> 00:08:08,400 Speaker 1: want the dead leaves. So this person he goes and 140 00:08:08,440 --> 00:08:11,560 Speaker 1: tries and tries to do a bunch of other things 141 00:08:11,680 --> 00:08:15,200 Speaker 1: and anything that is valuable to anybody else. For some reason, 142 00:08:15,320 --> 00:08:16,840 Speaker 1: he is not skilled enough to be able to do 143 00:08:16,920 --> 00:08:21,560 Speaker 1: anything like this. So a few people get together on 144 00:08:21,560 --> 00:08:23,240 Speaker 1: the island and they say, hey, we need to take 145 00:08:23,280 --> 00:08:25,360 Speaker 1: care of this guy. He's not able to take care 146 00:08:25,400 --> 00:08:28,280 Speaker 1: of himself. We need to uh kind of do a 147 00:08:28,320 --> 00:08:32,280 Speaker 1: little group collection here and make sure that this guy 148 00:08:32,600 --> 00:08:34,920 Speaker 1: is taken care of, because you know he's going to 149 00:08:35,000 --> 00:08:38,440 Speaker 1: die of starvation otherwise. Now, let's say there's twelve people 150 00:08:38,480 --> 00:08:42,199 Speaker 1: on this island at all, twelve people agree to collect 151 00:08:42,200 --> 00:08:45,440 Speaker 1: together a little pot of resources and give it to 152 00:08:45,480 --> 00:08:50,440 Speaker 1: this guy who's gonna potentially starve otherwise. This is an 153 00:08:50,440 --> 00:08:58,040 Speaker 1: example of a tax situation where the entire community under 154 00:08:58,160 --> 00:09:01,160 Speaker 1: some social contract to it's. Hey, we're all living together 155 00:09:01,200 --> 00:09:02,600 Speaker 1: on this island. We're all going to take care of 156 00:09:02,600 --> 00:09:05,480 Speaker 1: each other. This guy, for whatever reason, needs help, so 157 00:09:05,520 --> 00:09:10,040 Speaker 1: we're going to help him now in this situation. I 158 00:09:10,080 --> 00:09:14,040 Speaker 1: think maybe you disagree, but I think it's pretty straightforward 159 00:09:14,360 --> 00:09:17,719 Speaker 1: and pretty clear that a tax in a situation like 160 00:09:17,800 --> 00:09:24,280 Speaker 1: this is perfectly acceptable, perfectly moral, um and many would 161 00:09:24,360 --> 00:09:27,360 Speaker 1: judge to be uh to be a good thing, not 162 00:09:27,480 --> 00:09:29,920 Speaker 1: just a neutral thing. Definitely not a bad thing, but 163 00:09:30,240 --> 00:09:32,360 Speaker 1: a good thing. A bunch of people getting together and 164 00:09:32,440 --> 00:09:38,679 Speaker 1: agreeing to uh voluntarily sacrifice their own uh their own 165 00:09:38,720 --> 00:09:42,240 Speaker 1: needs to help out the needs of somebody else who 166 00:09:42,360 --> 00:09:45,800 Speaker 1: is uh, let's say, less fortunate or unable to provide 167 00:09:45,800 --> 00:09:52,600 Speaker 1: for themselves. That by itself, most people would find absolutely 168 00:09:52,600 --> 00:09:56,720 Speaker 1: no issue with the problem is this is not the 169 00:09:56,760 --> 00:09:59,760 Speaker 1: world that we live in, because nobody lives in a 170 00:10:00,160 --> 00:10:01,240 Speaker 1: much No, but he lives in a world of just 171 00:10:01,320 --> 00:10:05,160 Speaker 1: twelve people. Um So then what we have to do 172 00:10:05,200 --> 00:10:06,960 Speaker 1: is we have to make it a little closer to 173 00:10:07,000 --> 00:10:11,000 Speaker 1: reality and say, what if there's one person that disagrees. 174 00:10:12,120 --> 00:10:15,520 Speaker 1: So let's say I kept I collect coconuts, and I 175 00:10:15,679 --> 00:10:18,200 Speaker 1: watched this guy who goes around and tries to get 176 00:10:18,200 --> 00:10:20,560 Speaker 1: some dead leaves, who tries to pick up sand off 177 00:10:20,559 --> 00:10:22,480 Speaker 1: the ground, who tries to do all these things that 178 00:10:22,520 --> 00:10:27,880 Speaker 1: are unhelpful to anybody else. Um but I'm watching him closely, 179 00:10:27,960 --> 00:10:31,480 Speaker 1: and he lays around all day and he doesn't he 180 00:10:31,600 --> 00:10:34,760 Speaker 1: doesn't try as hard as I think he could try, 181 00:10:34,960 --> 00:10:39,080 Speaker 1: and he uh watches people, and maybe I secretly have 182 00:10:39,360 --> 00:10:41,880 Speaker 1: you know, seen him a few times. He's able to 183 00:10:41,920 --> 00:10:44,360 Speaker 1: do some things for himself, but only when he's around 184 00:10:44,360 --> 00:10:49,200 Speaker 1: other people. He pretends to be incompetent, hoping that people 185 00:10:49,240 --> 00:10:52,280 Speaker 1: will just provide for him instead. So maybe I have 186 00:10:52,360 --> 00:10:57,199 Speaker 1: an issue with going and working collecting my coconuts and 187 00:10:57,320 --> 00:10:59,760 Speaker 1: voluntarily giving them to this person who doesn't want to 188 00:10:59,800 --> 00:11:02,800 Speaker 1: work himself. So maybe when we get together for this 189 00:11:02,880 --> 00:11:05,760 Speaker 1: group meeting, I say, you know what, no, I will 190 00:11:05,800 --> 00:11:09,520 Speaker 1: not provide any coconuts for this person. I do not 191 00:11:09,679 --> 00:11:13,559 Speaker 1: want to be forced. I do not want to contribute 192 00:11:13,600 --> 00:11:19,000 Speaker 1: to him being lazy. Basically, now the community has a choice. 193 00:11:20,000 --> 00:11:22,520 Speaker 1: The community at this point has a choice to look 194 00:11:22,559 --> 00:11:26,400 Speaker 1: at me and say, well, you're a person. We're all 195 00:11:26,440 --> 00:11:28,400 Speaker 1: deciding to make our own choice to give him some 196 00:11:28,440 --> 00:11:32,439 Speaker 1: of our resources, and you can make a choice to uh, 197 00:11:32,600 --> 00:11:36,439 Speaker 1: not give him any of your resources. At that moment, 198 00:11:37,280 --> 00:11:40,600 Speaker 1: that would be most people would think that's perfectly acceptable. 199 00:11:41,080 --> 00:11:44,400 Speaker 1: Any individual has the right to choose whether or not 200 00:11:44,520 --> 00:11:47,800 Speaker 1: they are going to contribute into this pool. Now I'm 201 00:11:47,800 --> 00:11:50,559 Speaker 1: taking a risk for myself by not contributing, right, because 202 00:11:50,720 --> 00:11:53,160 Speaker 1: what happens if I'm a coconut collector? This is a 203 00:11:53,240 --> 00:11:56,600 Speaker 1: higher risk business. Right? What if I climb up a tree, 204 00:11:57,120 --> 00:12:01,240 Speaker 1: I slip, I fall, I break both my legs, and 205 00:12:01,320 --> 00:12:04,960 Speaker 1: now I can no longer do my job or do anything. 206 00:12:05,240 --> 00:12:08,600 Speaker 1: And now I'm completely reliant on the community if they 207 00:12:08,720 --> 00:12:13,200 Speaker 1: choose to help me or not. I've already demonstrated a 208 00:12:13,320 --> 00:12:16,720 Speaker 1: lack of commitment to the community by saying, Hey, I 209 00:12:16,800 --> 00:12:19,520 Speaker 1: do not want to contribute and help out somebody who 210 00:12:19,520 --> 00:12:22,640 Speaker 1: looks like they need help. So I'm taking a risk 211 00:12:22,640 --> 00:12:25,200 Speaker 1: by doing that, because what if I need help in 212 00:12:25,200 --> 00:12:29,600 Speaker 1: the future. I think the community then might be a 213 00:12:29,679 --> 00:12:33,000 Speaker 1: little bit hesitant to help me out should I ever 214 00:12:33,080 --> 00:12:36,960 Speaker 1: need help in the future. But by me saying no 215 00:12:37,360 --> 00:12:40,440 Speaker 1: and rejecting to help somebody else in the community who 216 00:12:40,480 --> 00:12:43,800 Speaker 1: needs help, um, I am taking that risk and saying 217 00:12:43,840 --> 00:12:47,199 Speaker 1: that I think that I will not need help myself 218 00:12:47,200 --> 00:12:49,680 Speaker 1: in the future, and so I'm not going to. Uh, 219 00:12:49,800 --> 00:12:52,040 Speaker 1: I'm not going to participate in that for whatever reason 220 00:12:52,080 --> 00:12:56,040 Speaker 1: I don't want to now at this point, most people 221 00:12:56,040 --> 00:12:58,760 Speaker 1: would still look at that and say it is within 222 00:12:59,280 --> 00:13:04,840 Speaker 1: my right to refuse to help somebody else. Otherwise it's 223 00:13:04,880 --> 00:13:07,679 Speaker 1: a form of slavery, right because if I was forced 224 00:13:07,760 --> 00:13:11,400 Speaker 1: somehow to have to go and work to give to 225 00:13:11,480 --> 00:13:14,760 Speaker 1: somebody else, that's really like that person is a master 226 00:13:14,920 --> 00:13:20,360 Speaker 1: over me. I must give my labor, my time, my effort, 227 00:13:20,440 --> 00:13:23,319 Speaker 1: my belongings, my ownership, my resources for the benefit of 228 00:13:23,400 --> 00:13:26,319 Speaker 1: somebody else without me choosing to do so. So most 229 00:13:26,360 --> 00:13:28,200 Speaker 1: people look at that and say, that's acceptable for me 230 00:13:28,240 --> 00:13:30,719 Speaker 1: to choose whether or not I want to volunteer to 231 00:13:30,760 --> 00:13:34,360 Speaker 1: give somebody else something or not. And maybe people say no, well, 232 00:13:34,480 --> 00:13:38,720 Speaker 1: that's immoral like you should give, but most people wouldn't 233 00:13:38,760 --> 00:13:42,120 Speaker 1: say you should be forced to give. So, now if 234 00:13:42,120 --> 00:13:44,040 Speaker 1: we take that one step further and say, okay, well, 235 00:13:44,040 --> 00:13:47,839 Speaker 1: what if the community does force you to? Um, how 236 00:13:47,920 --> 00:13:52,600 Speaker 1: would they force me to? Let's let's think through this logically. 237 00:13:52,920 --> 00:13:55,360 Speaker 1: So the community gets together and says, noe, uh, there's 238 00:13:55,400 --> 00:13:58,960 Speaker 1: eleven of us, there's one of you. All eleven of 239 00:13:59,040 --> 00:14:03,000 Speaker 1: us say that us and you should give some of 240 00:14:03,040 --> 00:14:07,120 Speaker 1: your resources to help this one person out. Um, since 241 00:14:07,200 --> 00:14:10,160 Speaker 1: there are more of us and less of you, we 242 00:14:10,200 --> 00:14:14,160 Speaker 1: are going to say that you have to. Now my 243 00:14:14,280 --> 00:14:18,960 Speaker 1: response is, um, no, I'm sorry. I don't care if 244 00:14:19,120 --> 00:14:21,640 Speaker 1: all of you say that I need to do something. 245 00:14:21,800 --> 00:14:23,760 Speaker 1: I am a human and I can make my own 246 00:14:23,840 --> 00:14:26,640 Speaker 1: choices about what to do with my own things that 247 00:14:26,720 --> 00:14:31,160 Speaker 1: I got for myself that I own. You guys, then 248 00:14:31,240 --> 00:14:33,480 Speaker 1: have a choice. All eleven of you have a choice 249 00:14:33,680 --> 00:14:36,720 Speaker 1: to try and force me to do this. Now. You 250 00:14:36,760 --> 00:14:39,800 Speaker 1: can try and persuade me with words, but you've already 251 00:14:39,840 --> 00:14:43,320 Speaker 1: recognized that won't go anywhere. I've made my decision. The 252 00:14:43,520 --> 00:14:46,880 Speaker 1: only way now next step for you to force me 253 00:14:46,960 --> 00:14:49,000 Speaker 1: to do this thing that you want me to do, 254 00:14:49,080 --> 00:14:51,520 Speaker 1: which is go and use my time and my labor 255 00:14:51,560 --> 00:14:53,920 Speaker 1: and my resources that I own to give to somebody 256 00:14:53,960 --> 00:14:59,520 Speaker 1: else is to either a just outright take my resources 257 00:14:59,560 --> 00:15:02,240 Speaker 1: from me. So after I collect a coconut, you walk up, 258 00:15:02,280 --> 00:15:04,440 Speaker 1: you grab my coconut, and you take it away from 259 00:15:04,440 --> 00:15:07,760 Speaker 1: me and give it to somebody else. That is theft 260 00:15:08,680 --> 00:15:14,360 Speaker 1: by all definitions. That at its most basic form, that 261 00:15:14,520 --> 00:15:18,240 Speaker 1: coconut belongs to me. The community went and took it 262 00:15:18,320 --> 00:15:22,480 Speaker 1: from me without my consent. That is theft, regardless of 263 00:15:22,480 --> 00:15:26,440 Speaker 1: the use for it. That is theft. The other option 264 00:15:26,600 --> 00:15:29,360 Speaker 1: is they can try and force me to do it myself. 265 00:15:29,400 --> 00:15:31,600 Speaker 1: Instead of walking up and taking it from me, they 266 00:15:31,640 --> 00:15:34,120 Speaker 1: can walk up to me and say, if you do 267 00:15:34,200 --> 00:15:38,840 Speaker 1: not do this, we will take you by force and 268 00:15:38,960 --> 00:15:43,320 Speaker 1: tie you up to a tree. If they decide to 269 00:15:43,360 --> 00:15:45,320 Speaker 1: do that, because I, let's say, I say no, I'm 270 00:15:45,360 --> 00:15:48,960 Speaker 1: not going to do that. Everybody get the eleven people 271 00:15:49,000 --> 00:15:52,400 Speaker 1: get together. They grabbed me, they dragged me to a tree. 272 00:15:52,440 --> 00:15:54,480 Speaker 1: They get a rope that they fashioned out of vines, 273 00:15:54,720 --> 00:15:58,120 Speaker 1: and they tie me to a tree. Now they are 274 00:15:58,320 --> 00:16:04,720 Speaker 1: using force, which is violence. It is an there's zero 275 00:16:04,760 --> 00:16:08,760 Speaker 1: consent on my part and they are using bodily force 276 00:16:09,080 --> 00:16:12,560 Speaker 1: to uh coerce my body into an action and restrain 277 00:16:12,640 --> 00:16:16,320 Speaker 1: me that is violence, and they tie me to a 278 00:16:16,440 --> 00:16:21,680 Speaker 1: tree until I say, okay, fine, I'll do it now. 279 00:16:22,040 --> 00:16:25,120 Speaker 1: At that point, once i've once I've decided okay, I 280 00:16:25,120 --> 00:16:29,360 Speaker 1: would rather give up some of my resources that I own. Um, 281 00:16:29,440 --> 00:16:35,800 Speaker 1: instead of being violently tied to a tree. Does that 282 00:16:36,000 --> 00:16:40,680 Speaker 1: count as consent? Am I voluntarily giving up my coconuts 283 00:16:40,680 --> 00:16:44,240 Speaker 1: at that point for the community. No, I am only 284 00:16:44,320 --> 00:16:47,800 Speaker 1: doing it because of the use of force or the 285 00:16:47,880 --> 00:16:53,160 Speaker 1: threat of the future use of force. So in this situation, 286 00:16:53,800 --> 00:16:58,840 Speaker 1: it is still theft. It is just theft via coercion 287 00:16:59,440 --> 00:17:06,119 Speaker 1: through violence. And so whether it is two people like 288 00:17:06,320 --> 00:17:10,520 Speaker 1: you know the common phrases to two wolves and one 289 00:17:10,600 --> 00:17:15,960 Speaker 1: sheep voting on what to have for lunch um, or 290 00:17:16,040 --> 00:17:20,320 Speaker 1: whether it is a hundred million people, the mechanics are 291 00:17:20,400 --> 00:17:26,520 Speaker 1: still the same. Either you can allow people to choose 292 00:17:27,080 --> 00:17:31,440 Speaker 1: voluntarily what to do with the resources they own, or 293 00:17:31,920 --> 00:17:37,600 Speaker 1: you can force them by violently taking it, or force 294 00:17:37,720 --> 00:17:43,480 Speaker 1: them to consent through the use or the threat of violence. Uh. 295 00:17:43,480 --> 00:17:46,920 Speaker 1: Those last two, either way, are both theft, just theft 296 00:17:46,920 --> 00:17:50,560 Speaker 1: by different means. So, now that we understand the basics 297 00:17:50,640 --> 00:17:54,400 Speaker 1: and we understand that scale doesn't change this. Whether it's 298 00:17:54,440 --> 00:17:57,679 Speaker 1: three people or three million people, doesn't change this. The 299 00:17:57,720 --> 00:18:00,359 Speaker 1: mechanics are the same. Let's talk about some of the 300 00:18:00,400 --> 00:18:05,600 Speaker 1: complexities that enter into the world today. I used the 301 00:18:05,680 --> 00:18:12,119 Speaker 1: analogy of the desert island very very uh intentionally, because 302 00:18:12,119 --> 00:18:14,320 Speaker 1: if I used this, let's say we were in a 303 00:18:14,400 --> 00:18:16,800 Speaker 1: community just you know, there were twelve of us that 304 00:18:16,800 --> 00:18:21,480 Speaker 1: had decided to go off into the forest and live together, well, 305 00:18:21,520 --> 00:18:23,040 Speaker 1: it would have been very easy for me at that 306 00:18:23,040 --> 00:18:26,080 Speaker 1: point to say, you know what, screw this, I don't 307 00:18:26,080 --> 00:18:28,320 Speaker 1: want to give up my coconuts anymore. So I'm just 308 00:18:28,320 --> 00:18:31,280 Speaker 1: gonna leave. And I just decided to walk back to 309 00:18:31,320 --> 00:18:34,080 Speaker 1: a different community of different society, go back into a city, 310 00:18:34,280 --> 00:18:37,640 Speaker 1: different country, whatever. I just decided to leave. Um, then 311 00:18:37,680 --> 00:18:40,040 Speaker 1: they would not have been able to use the threat 312 00:18:40,040 --> 00:18:42,359 Speaker 1: of violence because I had the choice to leave. So 313 00:18:42,400 --> 00:18:44,760 Speaker 1: if they ever decided to try and use that threat, 314 00:18:45,080 --> 00:18:48,960 Speaker 1: well then it would be pretty um self defeating because 315 00:18:49,000 --> 00:18:51,639 Speaker 1: I would just escape. I would just leave unless they 316 00:18:51,640 --> 00:18:55,080 Speaker 1: were able to use that force, um before I was 317 00:18:55,119 --> 00:18:57,119 Speaker 1: able to leave. But then I would just say, okay, 318 00:18:57,119 --> 00:19:00,280 Speaker 1: well fine, I'll submit to your your your wants, your desires, 319 00:19:00,440 --> 00:19:02,640 Speaker 1: and then I would escape. I would leave, And so 320 00:19:03,119 --> 00:19:08,080 Speaker 1: the use of force or the threat of force dissipates 321 00:19:08,440 --> 00:19:13,879 Speaker 1: with the freedom to leave. Now, let's let's let's scale 322 00:19:13,880 --> 00:19:15,600 Speaker 1: this up and look at some of the things that 323 00:19:15,640 --> 00:19:20,919 Speaker 1: make this uh increase the complexity. In today's world, a 324 00:19:21,160 --> 00:19:25,760 Speaker 1: government really is just people who are acting in a 325 00:19:25,800 --> 00:19:29,280 Speaker 1: governmental fashion. There are no there's no such thing as 326 00:19:29,320 --> 00:19:34,000 Speaker 1: an entity called the government that is separate from the people. Really, 327 00:19:34,000 --> 00:19:37,720 Speaker 1: there are just people who who who govern and other 328 00:19:37,760 --> 00:19:41,199 Speaker 1: people who allow themselves to be governed. There is no 329 00:19:41,400 --> 00:19:46,560 Speaker 1: entity actually called the government. Um, but we have to 330 00:19:46,640 --> 00:19:49,040 Speaker 1: kind of kind of go along with it just because 331 00:19:49,080 --> 00:19:51,640 Speaker 1: that's the way that we operate. So we've got a government. 332 00:19:51,880 --> 00:19:56,080 Speaker 1: What are the sources of income for a government today? Um, 333 00:19:56,240 --> 00:19:59,680 Speaker 1: Taxes is one. Now there are many forms of taxes, 334 00:19:59,720 --> 00:20:03,359 Speaker 1: but essentially taxes are the government saying give us this 335 00:20:03,480 --> 00:20:06,480 Speaker 1: amount of money or else it is. It is the 336 00:20:06,600 --> 00:20:10,719 Speaker 1: desert analogy of being tied up to a tree. Um. 337 00:20:10,880 --> 00:20:15,040 Speaker 1: They say, you have this paycheck. From each paycheck, give 338 00:20:15,119 --> 00:20:21,200 Speaker 1: us this amount of money, whether it's and they say, 339 00:20:21,320 --> 00:20:24,680 Speaker 1: from every single paycheck, give me that amount of money. Um, 340 00:20:24,760 --> 00:20:28,080 Speaker 1: And you say, yes, sure thing, here you go. Why 341 00:20:28,119 --> 00:20:29,640 Speaker 1: because you don't want to be tied up to a tree, 342 00:20:29,840 --> 00:20:33,800 Speaker 1: which in today's day and age is getting locked up 343 00:20:33,840 --> 00:20:36,640 Speaker 1: inside of a jail cell. Uh if if you haven't 344 00:20:36,720 --> 00:20:40,200 Speaker 1: checked recently. The thing that happens if you decide to 345 00:20:40,240 --> 00:20:44,000 Speaker 1: not give the government that portion of your paycheck is 346 00:20:44,560 --> 00:20:48,120 Speaker 1: you you land in a small room made of metal 347 00:20:48,160 --> 00:20:50,840 Speaker 1: and concrete that you cannot escape from h and you 348 00:20:50,880 --> 00:20:54,680 Speaker 1: lose all freedom and access to society. Um. The way 349 00:20:54,720 --> 00:20:58,560 Speaker 1: that they put you there is by taking men with 350 00:20:58,640 --> 00:21:01,239 Speaker 1: weapons who are stronger than you, and there are more 351 00:21:01,280 --> 00:21:03,919 Speaker 1: of them than you, and they put you there by force. 352 00:21:04,840 --> 00:21:06,880 Speaker 1: So this is the same exact thing as on the island, 353 00:21:07,160 --> 00:21:09,240 Speaker 1: the group of eleven of them all grabbing you and 354 00:21:09,240 --> 00:21:11,000 Speaker 1: teying you to a tree. It is the use and 355 00:21:11,119 --> 00:21:14,679 Speaker 1: threat of violence to coerce you into giving them some 356 00:21:14,840 --> 00:21:18,399 Speaker 1: of your belongings. So that is taxes, whether it is 357 00:21:18,480 --> 00:21:22,920 Speaker 1: from sales taxes, tariffs, income taxes, whatever the taxes are, 358 00:21:23,000 --> 00:21:26,439 Speaker 1: that is one form of government income. And most people 359 00:21:26,600 --> 00:21:30,199 Speaker 1: just do this because, um, you know, they know what 360 00:21:30,320 --> 00:21:33,760 Speaker 1: happens if they don't. If there was no penalty for 361 00:21:33,800 --> 00:21:37,760 Speaker 1: not paying taxes, how many people do you think would 362 00:21:37,800 --> 00:21:43,080 Speaker 1: voluntarily be paying? Certain maybe some people still would probably 363 00:21:43,160 --> 00:21:46,600 Speaker 1: some people still would, but it's very likely there would 364 00:21:46,640 --> 00:21:49,840 Speaker 1: be a lot less people who pay their taxes if 365 00:21:50,320 --> 00:21:53,440 Speaker 1: if there was no uh, no threat of violence being 366 00:21:53,520 --> 00:21:57,960 Speaker 1: used against them. Um. Otherwise, So that is one source 367 00:21:58,040 --> 00:22:02,240 Speaker 1: of income or revenue for the government. There's another source 368 00:22:02,359 --> 00:22:06,680 Speaker 1: of income for the government. This is called borrowing. Now, 369 00:22:06,800 --> 00:22:11,080 Speaker 1: most people dislike the fact that governments can borrow. Um. 370 00:22:11,080 --> 00:22:16,640 Speaker 1: It is kind of ironic though, that borrowing is potentially 371 00:22:16,680 --> 00:22:20,280 Speaker 1: more of a moral way for a government to get income. Why. Well, 372 00:22:20,320 --> 00:22:26,080 Speaker 1: because it's voluntary. Um. Borrowing by definition, by nature, is 373 00:22:26,080 --> 00:22:29,560 Speaker 1: the government saying, hey, does anybody want to lend us money? 374 00:22:29,720 --> 00:22:32,760 Speaker 1: If you give us a hundred dollars right now, we'll 375 00:22:32,800 --> 00:22:38,440 Speaker 1: give you one four dollars next year, and nobody has 376 00:22:38,520 --> 00:22:42,920 Speaker 1: to and you get rewarded for doing so. So instead 377 00:22:42,920 --> 00:22:46,840 Speaker 1: of a stick, there's a carrot um. And so this 378 00:22:46,960 --> 00:22:49,800 Speaker 1: is even though most people don't like government borrowing, which 379 00:22:49,800 --> 00:22:52,600 Speaker 1: I'll get to the reason in a moment, Um, just 380 00:22:53,080 --> 00:22:57,280 Speaker 1: at its most basic form, is potentially a better way 381 00:22:57,840 --> 00:23:03,680 Speaker 1: for for the government to get income. Now, why would 382 00:23:03,760 --> 00:23:07,840 Speaker 1: anybody give the government income. Let's say, right now in 383 00:23:07,880 --> 00:23:10,560 Speaker 1: the current example where the situation where in right now 384 00:23:10,720 --> 00:23:12,480 Speaker 1: where they say Hey, give us a hundred dollars and 385 00:23:12,480 --> 00:23:14,159 Speaker 1: in one year will give you a hundred four dollars. 386 00:23:15,359 --> 00:23:18,720 Speaker 1: When at the exact same time, right now, something costs 387 00:23:18,720 --> 00:23:21,920 Speaker 1: you a hundred dollars, one year from now, that same 388 00:23:21,960 --> 00:23:26,040 Speaker 1: thing will likely cost you one eight dollars, that is inflation. 389 00:23:26,640 --> 00:23:29,520 Speaker 1: And so you could buy the thing right now for 390 00:23:29,560 --> 00:23:33,720 Speaker 1: a hundred dollars, or you could give that money to 391 00:23:33,720 --> 00:23:35,400 Speaker 1: the government and in a year from now you get 392 00:23:35,400 --> 00:23:37,080 Speaker 1: a hundred four dollars back. And now you go to 393 00:23:37,080 --> 00:23:39,359 Speaker 1: buy that same thing, and now it costs a hundred 394 00:23:39,400 --> 00:23:42,240 Speaker 1: eight dollars, So you need four extra dollars to buy 395 00:23:42,240 --> 00:23:47,000 Speaker 1: that same thing. You just lost four dollars. So, even 396 00:23:47,000 --> 00:23:49,480 Speaker 1: though the interest rate being paid to you on government 397 00:23:49,520 --> 00:23:54,760 Speaker 1: debt is nominally positive, meaning the number is a positive number, 398 00:23:54,760 --> 00:23:57,639 Speaker 1: it's four percent, it's not a negative number when you 399 00:23:57,840 --> 00:24:01,800 Speaker 1: factor in the inflation rate, the real interest rate you're 400 00:24:01,800 --> 00:24:06,199 Speaker 1: getting paid is negative because the rate at which prices 401 00:24:06,240 --> 00:24:10,680 Speaker 1: are going up is higher than the interest rate that's 402 00:24:10,680 --> 00:24:14,960 Speaker 1: being paid on government debt. So why would anybody do this? Well, 403 00:24:15,080 --> 00:24:18,720 Speaker 1: one reason is for safety. And what do I mean 404 00:24:18,720 --> 00:24:21,800 Speaker 1: by safety, Well, you know that there is a high 405 00:24:21,920 --> 00:24:25,920 Speaker 1: degree of certainty that the government is going to pay 406 00:24:25,960 --> 00:24:30,240 Speaker 1: you back. If you loan to your you know, your 407 00:24:30,280 --> 00:24:33,760 Speaker 1: your neighbor. They might dip out of town. Even if 408 00:24:33,760 --> 00:24:37,320 Speaker 1: they promise they might dip out of town, you might 409 00:24:37,320 --> 00:24:39,240 Speaker 1: never be able to find them again to make them 410 00:24:39,400 --> 00:24:42,320 Speaker 1: give you back the money that you lent to them. 411 00:24:42,359 --> 00:24:44,800 Speaker 1: You might lend to a company that's a small startup 412 00:24:44,840 --> 00:24:46,879 Speaker 1: company and they might go out of business, and so 413 00:24:46,920 --> 00:24:48,480 Speaker 1: they might not be able to give you back the 414 00:24:48,520 --> 00:24:51,960 Speaker 1: money that they borrowed. Um. There's all sort of these 415 00:24:52,000 --> 00:24:56,359 Speaker 1: situations that bring risk in when you're lending money. But 416 00:24:56,480 --> 00:25:00,600 Speaker 1: with a sovereign government where there are p acting in 417 00:25:00,640 --> 00:25:05,880 Speaker 1: a governmental authoritative um fashion, and there are a bunch 418 00:25:05,880 --> 00:25:09,800 Speaker 1: of other people who allow themselves to be governed, and 419 00:25:09,960 --> 00:25:12,879 Speaker 1: you have a long history of people submitting and saying 420 00:25:12,920 --> 00:25:16,119 Speaker 1: we will give the government whatever they ask us for 421 00:25:16,520 --> 00:25:19,760 Speaker 1: because we don't want them to use their weapons and 422 00:25:20,040 --> 00:25:25,440 Speaker 1: use violence to put us in jail. You're much more 423 00:25:25,560 --> 00:25:29,160 Speaker 1: willing to lend to a government that does that, because 424 00:25:30,160 --> 00:25:32,840 Speaker 1: if they have a problem with being able to have 425 00:25:33,000 --> 00:25:35,520 Speaker 1: enough money to pay you back, we know, at the 426 00:25:35,560 --> 00:25:38,320 Speaker 1: end of the day they can always get more money 427 00:25:38,440 --> 00:25:41,480 Speaker 1: by taking their force, their monopoly on the use of 428 00:25:41,560 --> 00:25:43,919 Speaker 1: violence to go get more money from the people that 429 00:25:43,960 --> 00:25:49,359 Speaker 1: they govern. And so the lack of risk and the 430 00:25:49,480 --> 00:25:54,240 Speaker 1: safety in lending to a government UM is what gives 431 00:25:54,240 --> 00:25:57,200 Speaker 1: people the incentive to lend at that low interest rate 432 00:25:57,480 --> 00:26:00,360 Speaker 1: because there's a high probability that at least they'll get 433 00:26:00,359 --> 00:26:03,399 Speaker 1: it back, whereas if they try and do something else 434 00:26:03,480 --> 00:26:07,159 Speaker 1: that might produce them a better return, there's a higher 435 00:26:07,240 --> 00:26:12,240 Speaker 1: risk that it actually might not come to fruition. So 436 00:26:12,480 --> 00:26:16,200 Speaker 1: that is the second source of government income. It is borrowing. 437 00:26:16,440 --> 00:26:19,040 Speaker 1: It is voluntary. The government has to pay for it, 438 00:26:19,080 --> 00:26:20,479 Speaker 1: but at the end of the day they pay for 439 00:26:20,560 --> 00:26:23,359 Speaker 1: it still through the use of force or the threat 440 00:26:23,359 --> 00:26:26,320 Speaker 1: of the use of force through taxes. And so that 441 00:26:26,400 --> 00:26:28,440 Speaker 1: is why people are willing to lend to the government. 442 00:26:29,480 --> 00:26:34,160 Speaker 1: Now when uh, there gets to a point though where 443 00:26:34,200 --> 00:26:37,800 Speaker 1: governments um are are able to or they kind of 444 00:26:37,800 --> 00:26:42,000 Speaker 1: get maxed out here basically, so we've seen now that 445 00:26:42,080 --> 00:26:47,000 Speaker 1: both government both forms of income for the government, whether 446 00:26:47,040 --> 00:26:52,040 Speaker 1: taxes are borrowing, are are done through the use or 447 00:26:52,080 --> 00:26:56,040 Speaker 1: the threat of force. So taxes are more direct. Borrowing 448 00:26:56,119 --> 00:26:59,879 Speaker 1: is more indirect because that borrowing at that low interest 449 00:27:00,080 --> 00:27:05,240 Speaker 1: rate UM comes at the because of the ability to 450 00:27:05,640 --> 00:27:10,560 Speaker 1: tax Now, if the ability to tax, or to use 451 00:27:10,640 --> 00:27:12,760 Speaker 1: forced to tax wasn't there, Let's say all taxes were 452 00:27:12,840 --> 00:27:17,960 Speaker 1: voluntary and people could just choose UM instead of being forced. 453 00:27:18,560 --> 00:27:22,639 Speaker 1: A government would still be able to borrow UM, but 454 00:27:22,760 --> 00:27:25,080 Speaker 1: there would be a much higher risk associated with that 455 00:27:25,160 --> 00:27:28,680 Speaker 1: because if a government borrowed too much and then they 456 00:27:28,720 --> 00:27:31,000 Speaker 1: tried to tax more in order to pay that debt 457 00:27:31,000 --> 00:27:33,360 Speaker 1: back and then the people just said no, you are 458 00:27:33,359 --> 00:27:35,919 Speaker 1: not going to give you more taxes, well, now the 459 00:27:35,920 --> 00:27:39,240 Speaker 1: government would default on that debt, and so there would 460 00:27:39,240 --> 00:27:42,240 Speaker 1: be a much higher risk associated with that debt, which 461 00:27:42,280 --> 00:27:45,600 Speaker 1: means the interest rate would have to be higher because 462 00:27:45,720 --> 00:27:48,680 Speaker 1: just like a small startup company, there's a higher risk 463 00:27:48,720 --> 00:27:51,480 Speaker 1: of default. So you want to get rewarded more for 464 00:27:51,560 --> 00:27:55,320 Speaker 1: lending to that higher risk entity, and so you're going 465 00:27:55,359 --> 00:27:58,280 Speaker 1: to demand a higher interest rate. So governments would have 466 00:27:58,280 --> 00:28:00,960 Speaker 1: a much higher cost of bar a wing if they 467 00:28:01,040 --> 00:28:07,960 Speaker 1: did not use force UM to enforce taxation UM. But 468 00:28:08,080 --> 00:28:10,120 Speaker 1: we still get to a point where governments get kind 469 00:28:10,119 --> 00:28:13,399 Speaker 1: of maxed out UM. The United States government has gotten 470 00:28:13,400 --> 00:28:20,240 Speaker 1: here a few times, and the tax situation where even 471 00:28:20,280 --> 00:28:23,320 Speaker 1: though there's the use of force, at the end of 472 00:28:23,359 --> 00:28:30,240 Speaker 1: the day, the UM the people are still acting in 473 00:28:30,320 --> 00:28:34,280 Speaker 1: a governed they're allowing themselves to be governed. Like I 474 00:28:34,320 --> 00:28:38,560 Speaker 1: said earlier, there is no entity called the government separate 475 00:28:38,600 --> 00:28:41,240 Speaker 1: from the people. There are just people that allow themselves 476 00:28:41,240 --> 00:28:43,680 Speaker 1: to be governed and people that decide to try and 477 00:28:43,720 --> 00:28:47,960 Speaker 1: do the governing. Um. And so there will come a 478 00:28:48,120 --> 00:28:51,280 Speaker 1: point where the people who are trying to do the 479 00:28:51,280 --> 00:28:55,160 Speaker 1: governing say, give us a little bit too much, And 480 00:28:55,160 --> 00:28:58,040 Speaker 1: the people who allow themselves to be governed decide one 481 00:28:58,080 --> 00:29:01,600 Speaker 1: day to not allow themselves to be governed anymore, and 482 00:29:01,640 --> 00:29:04,440 Speaker 1: they say, you know, the threat of the use of 483 00:29:04,440 --> 00:29:09,880 Speaker 1: force is now not enough to persuade us to do 484 00:29:10,080 --> 00:29:13,800 Speaker 1: what those small number of people want us to do. Um. 485 00:29:14,040 --> 00:29:19,240 Speaker 1: And in that situation, numbers come back into play, and uh, 486 00:29:19,280 --> 00:29:21,720 Speaker 1: there are a lot more people who are allowing themselves 487 00:29:21,720 --> 00:29:24,320 Speaker 1: to be governed than there are people trying to do 488 00:29:24,400 --> 00:29:28,920 Speaker 1: the governing, which means that at the end of the day, 489 00:29:28,960 --> 00:29:31,280 Speaker 1: if everybody decides we don't want to be governed in 490 00:29:31,320 --> 00:29:34,840 Speaker 1: this way anymore, that it will end. So governments still 491 00:29:34,920 --> 00:29:37,520 Speaker 1: have even though they use force and the threat of force, 492 00:29:37,560 --> 00:29:39,240 Speaker 1: they still have to be careful they don't go too 493 00:29:39,280 --> 00:29:42,360 Speaker 1: far because that use of force and the threat of 494 00:29:42,360 --> 00:29:47,040 Speaker 1: force might become um, might become useless. At a certain point, 495 00:29:47,040 --> 00:29:50,280 Speaker 1: it might not be it might not work anymore um. 496 00:29:50,320 --> 00:29:53,200 Speaker 1: And so once they get to a certain point with taxing, 497 00:29:53,400 --> 00:29:57,200 Speaker 1: they try and rely more on borrowing. So they'll offer 498 00:29:57,240 --> 00:30:00,160 Speaker 1: a higher interest rate when they when they borrow and 499 00:30:00,400 --> 00:30:02,800 Speaker 1: ask people to lend to them in order to get 500 00:30:02,840 --> 00:30:06,240 Speaker 1: more purchasing power. Because they've spent everything they took by force, 501 00:30:06,560 --> 00:30:09,480 Speaker 1: so now they try and get more from from borrowing. 502 00:30:10,960 --> 00:30:12,800 Speaker 1: So they try and get more and more from borrowing, 503 00:30:12,800 --> 00:30:15,840 Speaker 1: and at a certain point even that they tap out 504 00:30:16,000 --> 00:30:20,440 Speaker 1: because they've taken so much from people's paychecks, taken so 505 00:30:20,520 --> 00:30:23,720 Speaker 1: much from corporate revenues, and then they've taken so much 506 00:30:23,760 --> 00:30:27,120 Speaker 1: from the leftover savings in the economy that people lent 507 00:30:27,200 --> 00:30:29,560 Speaker 1: to the government that now they say, hey, does anybody 508 00:30:29,560 --> 00:30:31,200 Speaker 1: want to lend more to us? And the people say, 509 00:30:31,400 --> 00:30:34,280 Speaker 1: we don't have any more to land. Now. This has 510 00:30:34,320 --> 00:30:36,840 Speaker 1: happened many times, and one of the most recent times 511 00:30:36,840 --> 00:30:40,760 Speaker 1: has happened was in September of twenty nineteen. You may 512 00:30:40,800 --> 00:30:43,520 Speaker 1: not remember because this was pre COVID a few months before, 513 00:30:43,600 --> 00:30:46,200 Speaker 1: but there is something called the repo market that blew up, 514 00:30:46,560 --> 00:30:48,440 Speaker 1: and I'm not going to get into details here of 515 00:30:48,480 --> 00:30:51,840 Speaker 1: that because we don't have time, but essentially, overnight lending 516 00:30:51,880 --> 00:30:58,360 Speaker 1: markets froze and liquidity became non existent between financial institutions 517 00:30:58,880 --> 00:31:03,880 Speaker 1: because there was no more cash floating around. Everybody needed cash, 518 00:31:04,000 --> 00:31:06,840 Speaker 1: and so the overnight lending market blew up in the 519 00:31:06,880 --> 00:31:10,520 Speaker 1: interest rates skyrocketed, and a central bank, the Federal Reserve, 520 00:31:10,560 --> 00:31:13,640 Speaker 1: had to step in and start printing money into this 521 00:31:13,960 --> 00:31:18,400 Speaker 1: overnight lending market in order to not have financial institutions 522 00:31:18,440 --> 00:31:25,240 Speaker 1: be at risk of shutting down. Yes, this happened in September. Now, um, 523 00:31:25,320 --> 00:31:28,880 Speaker 1: in this situation here, the government had basically sucked all 524 00:31:28,880 --> 00:31:33,120 Speaker 1: the cash it could out of the economy. When when 525 00:31:33,160 --> 00:31:37,760 Speaker 1: this happened, you have you have a third way that 526 00:31:37,920 --> 00:31:43,160 Speaker 1: a government gets its income. Now this looks like borrowing still, 527 00:31:43,240 --> 00:31:47,640 Speaker 1: but it is fundamentally different. What we are going to 528 00:31:47,680 --> 00:31:50,240 Speaker 1: look at. Now, here's the third way that governments get income, 529 00:31:50,280 --> 00:31:52,640 Speaker 1: and this is called printing. And this is where the 530 00:31:52,720 --> 00:31:56,400 Speaker 1: central bank comes in. We went over in the last 531 00:31:56,440 --> 00:31:59,320 Speaker 1: few episodes how banking works and how central banking works, 532 00:31:59,360 --> 00:32:01,320 Speaker 1: and so we know that a central bank is just 533 00:32:01,400 --> 00:32:04,960 Speaker 1: a bank for other banks, and so they print money 534 00:32:05,000 --> 00:32:10,680 Speaker 1: for the entities that print money, very simple. Um. But 535 00:32:10,840 --> 00:32:13,240 Speaker 1: one thing that entity is called banks do that are 536 00:32:13,280 --> 00:32:16,720 Speaker 1: able to print money is they loan to the government. Why, 537 00:32:16,840 --> 00:32:19,160 Speaker 1: because you can create money out of thin air and 538 00:32:19,200 --> 00:32:22,000 Speaker 1: then loan it basically risk free to this entity that 539 00:32:22,040 --> 00:32:26,560 Speaker 1: will almost certainly pay you back. Absolutely. Who cares if 540 00:32:26,560 --> 00:32:30,880 Speaker 1: it's lower than the inflation rate. We're using new, newly brand, 541 00:32:30,880 --> 00:32:33,200 Speaker 1: new printed money to do this, and so the more 542 00:32:33,240 --> 00:32:35,480 Speaker 1: money we print to lend to the government, the more 543 00:32:35,520 --> 00:32:38,080 Speaker 1: money we make. So we don't care if it's below inflation. 544 00:32:38,440 --> 00:32:40,800 Speaker 1: It's guaranteed and it's on money that we didn't have 545 00:32:40,880 --> 00:32:42,800 Speaker 1: to earn. We just created it out of thin air. 546 00:32:43,720 --> 00:32:46,680 Speaker 1: Now a central bank does that on steroids because they 547 00:32:46,720 --> 00:32:48,760 Speaker 1: are able to do this at a much greater scale 548 00:32:48,760 --> 00:32:51,960 Speaker 1: because they print money for the banks. But we still 549 00:32:51,960 --> 00:32:53,959 Speaker 1: get to a point where, because of bank regulations and 550 00:32:54,000 --> 00:32:55,640 Speaker 1: things like that, we tap out. And that's what happened 551 00:32:55,640 --> 00:32:57,920 Speaker 1: in September nineteen. We reached a limit and so the 552 00:32:57,960 --> 00:33:00,200 Speaker 1: central bank stepped in. And this is where we get 553 00:33:00,200 --> 00:33:02,640 Speaker 1: mechanically different than regular borrowing for the government. We get 554 00:33:02,680 --> 00:33:06,080 Speaker 1: money printing going on. So a central bank than what 555 00:33:06,120 --> 00:33:09,120 Speaker 1: they do is the central bank prints money, They create 556 00:33:09,160 --> 00:33:11,920 Speaker 1: money out of thin air, and they give it to banks. 557 00:33:12,720 --> 00:33:15,040 Speaker 1: They don't just give it to banks, though they they 558 00:33:15,200 --> 00:33:17,760 Speaker 1: do it in a way. They're not just just depositing 559 00:33:17,800 --> 00:33:20,120 Speaker 1: money into these banks accounts. There has to be a 560 00:33:20,160 --> 00:33:23,600 Speaker 1: transaction that takes place, so the central bank will buy 561 00:33:23,840 --> 00:33:28,080 Speaker 1: debt from the banks. So a bank like Bank of America, 562 00:33:28,160 --> 00:33:30,760 Speaker 1: Let's say Bank of America has lent money to the 563 00:33:30,800 --> 00:33:33,360 Speaker 1: United States government, so the government gets the spending power 564 00:33:33,400 --> 00:33:35,960 Speaker 1: they need, and Bank of America now has a contract 565 00:33:36,000 --> 00:33:38,680 Speaker 1: that says the United States Government will pay us back 566 00:33:39,080 --> 00:33:42,280 Speaker 1: uh FO over the next you know, however, many years. 567 00:33:43,000 --> 00:33:45,800 Speaker 1: So Bank of America might be saying, hey, we have 568 00:33:45,880 --> 00:33:48,720 Speaker 1: this contract. It's called a bond. It's a treasury that 569 00:33:48,800 --> 00:33:50,880 Speaker 1: exists that says the government's gonna be paying us back 570 00:33:50,920 --> 00:33:54,000 Speaker 1: this amount of money. We'd rather have cash. We don't 571 00:33:54,000 --> 00:33:57,480 Speaker 1: want this anymore. Does anybody else want this? So the 572 00:33:57,480 --> 00:34:00,120 Speaker 1: central bank comes in and says, yes, we would like 573 00:34:00,200 --> 00:34:02,880 Speaker 1: it please. So the central Bank creates money out of 574 00:34:02,880 --> 00:34:07,280 Speaker 1: thin air the Fed. They give that cash to Bank 575 00:34:07,320 --> 00:34:11,080 Speaker 1: of America, and Bank of America gives the contract, the bond, 576 00:34:11,239 --> 00:34:14,640 Speaker 1: the treasury, the debt to the central Bank. So the 577 00:34:14,640 --> 00:34:19,319 Speaker 1: central bank buys that debt from the local bank, Bank 578 00:34:19,320 --> 00:34:23,800 Speaker 1: of America. Now instead of the US government owing money 579 00:34:23,840 --> 00:34:27,440 Speaker 1: to Bank of America, they owe that money to the 580 00:34:27,480 --> 00:34:31,360 Speaker 1: Federal Reserve, the Central Bank. Because once this debt is created, 581 00:34:31,440 --> 00:34:34,800 Speaker 1: it's always being traded. People are constantly buying and selling 582 00:34:34,800 --> 00:34:37,040 Speaker 1: this debt, trading it back and forth with each other. 583 00:34:37,280 --> 00:34:39,160 Speaker 1: So I'm gonna loan money to the government, and then 584 00:34:39,200 --> 00:34:40,880 Speaker 1: I'm going to sell that debt to somebody else, and 585 00:34:40,920 --> 00:34:44,080 Speaker 1: then I'm gonna buy different debt that is, you know, 586 00:34:44,480 --> 00:34:49,480 Speaker 1: from the government, from somebody else, and traders and financial institutions. 587 00:34:49,480 --> 00:34:54,319 Speaker 1: They're constantly buying and selling um debt within from each other, 588 00:34:54,719 --> 00:34:57,680 Speaker 1: that is government debt. And so the central Bank comes 589 00:34:57,680 --> 00:35:00,480 Speaker 1: in and they print money and they buy this debt 590 00:35:00,600 --> 00:35:06,279 Speaker 1: from financial institutions from banks. What this means is that 591 00:35:06,360 --> 00:35:11,120 Speaker 1: now Bank of America, who originally loaned money to the government, 592 00:35:11,280 --> 00:35:13,800 Speaker 1: so they took their cash, they gave it to the government, 593 00:35:13,840 --> 00:35:16,439 Speaker 1: and now the government owes them back cash. They then 594 00:35:16,640 --> 00:35:19,399 Speaker 1: sell that debt to the central Bank. Now a Bank 595 00:35:19,400 --> 00:35:23,080 Speaker 1: of America has cash again, they're happy. What do they 596 00:35:23,120 --> 00:35:27,880 Speaker 1: do with this cash? They turn right back around and 597 00:35:28,000 --> 00:35:32,520 Speaker 1: lend it to the government again. Now the government owes 598 00:35:32,560 --> 00:35:35,320 Speaker 1: Bank of America money. Again, so what does Bank of 599 00:35:35,360 --> 00:35:38,480 Speaker 1: America do. They look to the central bank and say, 600 00:35:38,520 --> 00:35:40,600 Speaker 1: we don't want this debt anymore, do you, and the 601 00:35:40,640 --> 00:35:44,520 Speaker 1: central bank says yes, please. So you can see what's 602 00:35:44,560 --> 00:35:50,239 Speaker 1: happening here. Banks become middlemen between the central bank and 603 00:35:50,280 --> 00:35:55,680 Speaker 1: the government for money printing to finance government expenses. Once 604 00:35:55,719 --> 00:35:58,439 Speaker 1: this starts to happen, this is a process called that's 605 00:35:58,480 --> 00:36:03,640 Speaker 1: been called quantitative easing. It's also called debt monetization. It 606 00:36:03,760 --> 00:36:06,920 Speaker 1: is basically where the central bank, which is the entity 607 00:36:07,120 --> 00:36:09,279 Speaker 1: that in the in the United States is called the 608 00:36:09,320 --> 00:36:12,680 Speaker 1: Federal Reserve. In the UK it's called the Bank of England. 609 00:36:13,160 --> 00:36:15,759 Speaker 1: Um Japan is the Bank of Japan, you know, you know, 610 00:36:15,960 --> 00:36:20,920 Speaker 1: so on and so forth. The central bank becomes the 611 00:36:20,960 --> 00:36:27,080 Speaker 1: primary funding mechanism for the central government because the central 612 00:36:27,080 --> 00:36:33,200 Speaker 1: bank prince cash and they buy government debt from other 613 00:36:33,280 --> 00:36:37,439 Speaker 1: financial entities that have loaned to the government, which means 614 00:36:37,440 --> 00:36:40,840 Speaker 1: that banks are just operating as the middlemen between the 615 00:36:40,920 --> 00:36:44,520 Speaker 1: central bank and the central government. The end result is 616 00:36:44,560 --> 00:36:47,080 Speaker 1: that central banks are printing money to give to the 617 00:36:47,080 --> 00:36:49,960 Speaker 1: central government, and then the central government when they pay 618 00:36:50,000 --> 00:36:53,240 Speaker 1: that debt back, they're paying money back to the central bank, 619 00:36:53,840 --> 00:36:55,600 Speaker 1: and so on and so forth. It's just a loop. 620 00:36:55,680 --> 00:36:58,160 Speaker 1: So basically you've got an entity. When you boil it 621 00:36:58,200 --> 00:37:01,719 Speaker 1: down to its basic form, that's printing money for the 622 00:37:01,760 --> 00:37:05,400 Speaker 1: government to be able to spend. That's it. It looks 623 00:37:05,480 --> 00:37:09,400 Speaker 1: like debt, but it is not debt because it is 624 00:37:09,480 --> 00:37:12,880 Speaker 1: just being printed. So when the government spends more and 625 00:37:12,960 --> 00:37:17,279 Speaker 1: more money, this is new money coming into existence. This 626 00:37:17,360 --> 00:37:22,120 Speaker 1: is inflation. Now we're going to touch on how inflation 627 00:37:22,160 --> 00:37:26,200 Speaker 1: impacts people to discuss whether this is also theft because 628 00:37:26,480 --> 00:37:29,640 Speaker 1: we looked at taxes, we looked at borrowing, which is 629 00:37:30,120 --> 00:37:34,600 Speaker 1: funded by taxes, and those are both forms of theft 630 00:37:34,920 --> 00:37:38,000 Speaker 1: that are enabled by the use or the threat of violence. 631 00:37:38,960 --> 00:37:43,560 Speaker 1: But what about printing? Does printing still count in this? 632 00:37:45,480 --> 00:37:49,000 Speaker 1: When we print money, what we are doing is transferring 633 00:37:49,080 --> 00:37:52,560 Speaker 1: purchasing power away from the rest of the money. So 634 00:37:52,600 --> 00:37:55,720 Speaker 1: how does that happen? While imagine you have a money printer. 635 00:37:56,200 --> 00:37:59,480 Speaker 1: Imagine you have a printer that literally prints cash that 636 00:37:59,560 --> 00:38:03,839 Speaker 1: allows you to go spend that cash, and you want 637 00:38:03,840 --> 00:38:06,120 Speaker 1: to go buy a pizza. You're gonna go to your 638 00:38:06,160 --> 00:38:08,399 Speaker 1: printer and you're gonna print that cash up and you're 639 00:38:08,400 --> 00:38:11,480 Speaker 1: gonna go buy a pizza. Did you have to perform 640 00:38:11,520 --> 00:38:14,000 Speaker 1: any labor or provide any value to society to get 641 00:38:14,000 --> 00:38:17,160 Speaker 1: that cash. No, you you hit a button, so you 642 00:38:17,200 --> 00:38:19,799 Speaker 1: get purchasing power out of nothing. This is also known 643 00:38:19,840 --> 00:38:23,520 Speaker 1: as counterfeiting. Um. If you're the only one in the 644 00:38:23,520 --> 00:38:26,600 Speaker 1: world who does this, most people would never notice. But 645 00:38:26,880 --> 00:38:32,000 Speaker 1: you are able to take value like food, rent, shelter, 646 00:38:32,440 --> 00:38:35,920 Speaker 1: clothing from society and you get to give them something 647 00:38:35,960 --> 00:38:39,640 Speaker 1: of no value. Because for everybody else, if I want 648 00:38:39,680 --> 00:38:42,239 Speaker 1: purchasing power, I have to create value. I have to 649 00:38:42,280 --> 00:38:43,920 Speaker 1: go out there, I have to give my time, I 650 00:38:43,920 --> 00:38:46,520 Speaker 1: have to create a product. I have to do something 651 00:38:46,560 --> 00:38:48,840 Speaker 1: that somebody else wants badly enough to give me money 652 00:38:48,880 --> 00:38:52,960 Speaker 1: for it, which means there's value when I create value. 653 00:38:53,320 --> 00:38:55,560 Speaker 1: That is another way of saying I created something that 654 00:38:55,600 --> 00:38:57,560 Speaker 1: somebody else wants badly enough to give me money for it. 655 00:38:58,000 --> 00:39:00,120 Speaker 1: That means now I have purchasing power that I can 656 00:39:00,120 --> 00:39:01,960 Speaker 1: turn around and use to somebody else. So if I 657 00:39:02,000 --> 00:39:03,719 Speaker 1: go to work a job, if I go create a 658 00:39:03,760 --> 00:39:06,479 Speaker 1: product and sell it, then I can take that money 659 00:39:06,480 --> 00:39:09,719 Speaker 1: and buy a pizza. So for for everybody, what they 660 00:39:09,760 --> 00:39:11,560 Speaker 1: have to do is they have to produce value and 661 00:39:11,640 --> 00:39:14,240 Speaker 1: able in order to consume value, you can only consume 662 00:39:14,239 --> 00:39:16,760 Speaker 1: what has been produced. But if you have a money printer, 663 00:39:16,920 --> 00:39:20,160 Speaker 1: a magic button that prints real money, well you don't 664 00:39:20,200 --> 00:39:22,880 Speaker 1: have to do that anymore. So you are transferring value 665 00:39:22,880 --> 00:39:27,560 Speaker 1: away from society to yourself. Now, imagine everybody has a 666 00:39:27,560 --> 00:39:31,360 Speaker 1: printer like this. Now you go to you want a pizza, 667 00:39:31,560 --> 00:39:33,520 Speaker 1: you go to print some money. So you walk into 668 00:39:33,560 --> 00:39:35,480 Speaker 1: the to the pizza shop and you try and buy 669 00:39:35,480 --> 00:39:40,000 Speaker 1: a pizza. Suddenly the guys selling the pizza is gonna say, uh, no, 670 00:39:40,200 --> 00:39:43,480 Speaker 1: thank you, because why would I spend my time making 671 00:39:43,480 --> 00:39:45,239 Speaker 1: a pizza for you when you're going to give me 672 00:39:45,320 --> 00:39:48,759 Speaker 1: money that I can get myself by just magically printing it. 673 00:39:50,640 --> 00:39:53,560 Speaker 1: So we can see very clearly here, very easily, that 674 00:39:53,640 --> 00:39:56,000 Speaker 1: if everybody had the ability to print money, you would 675 00:39:56,040 --> 00:40:02,279 Speaker 1: instantly become valueless, worthless. So that is the extreme end 676 00:40:02,320 --> 00:40:06,080 Speaker 1: of the scale. But even getting closer to that, when 677 00:40:06,200 --> 00:40:08,759 Speaker 1: some people have the ability to print money, it makes 678 00:40:08,840 --> 00:40:13,600 Speaker 1: value worth less. As more and more people have the 679 00:40:13,600 --> 00:40:16,160 Speaker 1: ability to print more and more money, money becomes more 680 00:40:16,200 --> 00:40:21,279 Speaker 1: and more worth less until it is worthless. And that 681 00:40:21,400 --> 00:40:24,600 Speaker 1: is what central banks do. They print money. In reality, 682 00:40:24,640 --> 00:40:27,200 Speaker 1: what this looks like is When the money supply expands, 683 00:40:27,280 --> 00:40:29,359 Speaker 1: it works its way throughout the economy as people spend 684 00:40:29,360 --> 00:40:31,200 Speaker 1: it from bank account to bank account to bank account. 685 00:40:31,200 --> 00:40:33,960 Speaker 1: The extra money bids up prices until prices go up, 686 00:40:34,040 --> 00:40:35,759 Speaker 1: in which case now it takes more money to get 687 00:40:35,800 --> 00:40:37,799 Speaker 1: the same amount of goods and services, which means the 688 00:40:37,840 --> 00:40:39,520 Speaker 1: money now is worth less than it used to be 689 00:40:39,520 --> 00:40:41,960 Speaker 1: because the quantity of money you need to get the 690 00:40:42,000 --> 00:40:44,920 Speaker 1: same things goes up, and so you need more money 691 00:40:44,920 --> 00:40:46,880 Speaker 1: to get the same stuff, which means that stuff is 692 00:40:47,080 --> 00:40:50,480 Speaker 1: worth more money, which means the money is worth less 693 00:40:50,520 --> 00:40:55,080 Speaker 1: because the quantity of money has increased. So as the 694 00:40:55,160 --> 00:41:00,520 Speaker 1: central bank prints money to fund government spending in a 695 00:41:01,480 --> 00:41:06,120 Speaker 1: really actually, what's happening is that purchasing power from the 696 00:41:06,400 --> 00:41:13,799 Speaker 1: entire economy is being automatically transferred to the government when 697 00:41:13,840 --> 00:41:17,560 Speaker 1: the government spends money that has been printed into existence 698 00:41:17,600 --> 00:41:21,399 Speaker 1: by the central bank. The only way that new money 699 00:41:21,400 --> 00:41:24,200 Speaker 1: has purchasing power is because that person power has been 700 00:41:24,239 --> 00:41:30,440 Speaker 1: siphoned away, transferred from all existing money. There is no ask, 701 00:41:31,520 --> 00:41:36,560 Speaker 1: there is no request, There is no W two paycheck 702 00:41:36,680 --> 00:41:39,719 Speaker 1: stub that shows how much money has been taken from 703 00:41:39,760 --> 00:41:44,440 Speaker 1: you to go to the government. It happens invisibly, without consent, 704 00:41:45,320 --> 00:41:54,759 Speaker 1: without request, without legislation, without votes, there is no consent. 705 00:41:56,360 --> 00:42:00,239 Speaker 1: So this is the most insidious form of govern meant 706 00:42:00,280 --> 00:42:06,840 Speaker 1: spending of government income inflationary financing is a direct wealth 707 00:42:06,880 --> 00:42:13,760 Speaker 1: transfer from the entire economy to the government with no transparency, 708 00:42:14,320 --> 00:42:18,880 Speaker 1: no request, and you don't even need the threat of 709 00:42:19,040 --> 00:42:24,279 Speaker 1: violence to make it happen. All you need is the 710 00:42:24,280 --> 00:42:27,680 Speaker 1: threat of violence to stop other people from doing the same. 711 00:42:28,560 --> 00:42:33,279 Speaker 1: And that is why counterfeiting is illegal, because if the 712 00:42:33,280 --> 00:42:35,960 Speaker 1: government wants to print money in order to be able 713 00:42:36,000 --> 00:42:38,359 Speaker 1: to spend it, they have to make sure nobody else 714 00:42:38,400 --> 00:42:40,959 Speaker 1: does that because if everybody does it, then they can't 715 00:42:40,960 --> 00:42:43,400 Speaker 1: do it either because the money then instantly becomes worthless. 716 00:42:43,840 --> 00:42:45,239 Speaker 1: So they need to make sure that they have the 717 00:42:45,320 --> 00:42:49,160 Speaker 1: monopoly on doing it so that everybody has to use 718 00:42:49,200 --> 00:42:53,560 Speaker 1: their money, so that nobody else can counterfeit, so that 719 00:42:53,600 --> 00:42:56,160 Speaker 1: they can be the ones to transfer the pursing power 720 00:42:56,200 --> 00:42:59,080 Speaker 1: away from everybody else who is using that same money 721 00:42:59,160 --> 00:43:02,759 Speaker 1: and spend it them selves. And so these are the 722 00:43:02,800 --> 00:43:06,759 Speaker 1: three ways that governments spend money or get money. Get 723 00:43:06,760 --> 00:43:11,000 Speaker 1: their income their revenue. They get it from taxes, which 724 00:43:11,040 --> 00:43:16,920 Speaker 1: is enforced through violence. They get it from borrowing, which 725 00:43:17,000 --> 00:43:20,800 Speaker 1: is um enabled by the use and the threat of 726 00:43:20,880 --> 00:43:25,280 Speaker 1: violence from taxes, and they get it from inflation from printing, 727 00:43:25,840 --> 00:43:29,800 Speaker 1: which again goes back to the use or the threat 728 00:43:30,040 --> 00:43:32,600 Speaker 1: of violence to stop other people from doing the exact 729 00:43:32,680 --> 00:43:36,680 Speaker 1: same thing. And so, no matter which way we look 730 00:43:36,719 --> 00:43:41,400 Speaker 1: at it, government income, whether it's taxes, borrowing, or printing, 731 00:43:41,960 --> 00:43:45,040 Speaker 1: is theft. And the only way that this would be 732 00:43:45,080 --> 00:43:48,239 Speaker 1: circumvented is if it was voluntary. In order for it 733 00:43:48,239 --> 00:43:51,440 Speaker 1: to be voluntary, it would have to be requested and 734 00:43:51,520 --> 00:43:54,960 Speaker 1: consented with no use or threat of violence, and the 735 00:43:55,040 --> 00:44:01,120 Speaker 1: choice to opt out if you did not want to. Today, 736 00:44:01,160 --> 00:44:04,080 Speaker 1: if you want to opt out, you would have to leave. 737 00:44:04,920 --> 00:44:07,000 Speaker 1: If you just moved to a different country, guess what, 738 00:44:07,160 --> 00:44:10,719 Speaker 1: you still pay taxes, So that's not an option. If 739 00:44:10,760 --> 00:44:13,400 Speaker 1: you want to stop paying US taxes, you would have 740 00:44:13,440 --> 00:44:15,840 Speaker 1: to leave, and you would have to expatriate. But what 741 00:44:15,920 --> 00:44:19,080 Speaker 1: happens when you become an expat you pay the exit tax. 742 00:44:20,080 --> 00:44:22,560 Speaker 1: So no matter what, they're still going to get it. 743 00:44:22,600 --> 00:44:25,640 Speaker 1: You can't just leave in order to opt out. They're 744 00:44:25,680 --> 00:44:27,359 Speaker 1: going to take it from you one way or the other. 745 00:44:28,320 --> 00:44:31,680 Speaker 1: And so when we look at today in the United States, 746 00:44:32,280 --> 00:44:39,800 Speaker 1: all government income is theft. You may agree or disagree 747 00:44:40,000 --> 00:44:43,680 Speaker 1: with whether or not it should happen, or whether or 748 00:44:43,680 --> 00:44:46,760 Speaker 1: not it is good that the government or the people 749 00:44:46,800 --> 00:44:50,040 Speaker 1: acting in a governmental fashion decide to use theft to 750 00:44:50,200 --> 00:44:54,920 Speaker 1: fund themselves. What cannot be disputed, though, is that it 751 00:44:55,080 --> 00:45:00,360 Speaker 1: is theft, and once most people realize that it is theft, 752 00:45:01,120 --> 00:45:05,480 Speaker 1: most people then agree that it should probably not be happening. 753 00:45:07,480 --> 00:45:10,600 Speaker 1: We're out of time for today. I really appreciate you 754 00:45:10,760 --> 00:45:13,759 Speaker 1: hanging on and listening with me for another episode here 755 00:45:14,400 --> 00:45:18,800 Speaker 1: and going through the journey of looking at how governments 756 00:45:18,840 --> 00:45:22,040 Speaker 1: fund themselves to answer the question of whether or not 757 00:45:22,640 --> 00:45:26,800 Speaker 1: taxes are theft. And I hope I've been clear um 758 00:45:26,880 --> 00:45:30,200 Speaker 1: and I've made my case. I would love to hear 759 00:45:30,239 --> 00:45:33,680 Speaker 1: your thoughts. Thank you so much for hanging on, and 760 00:45:33,719 --> 00:45:36,239 Speaker 1: I'll see you on the next episode.