Many pundits have made the following statement, in one form or another, driving a car is the ultimate expression of freedom in America. Yet, your freedom to drive a vehicle is endangered by the political left and the neo-socialists who want to steal and destroy your freedoms. Mention economics, and most people’s eyes gloss over, brains disconnect, and they hope the pain will end shortly. Please, fight this impulse. I will attempt to make a highly complex topic simple and easily understood. While I might not get all the specific details correct, I aim to communicate economics to a general audience that is free and empowered to further research the topics for themselves. My links are reflected in the article for more information.
Money was discussed in a previous article and found here. In simple terms, money is the tool used to transfer goods from one entity to another, showing a legal purchase was made to change ownership, hence opening the first crucial role of money, legally transferring ownership of goods and services from one person to another. Unfortunately, legal ownership transference is where the government exercises its first controls, regulating cross-border commerce. When the government went on a growth spurt in the 1930s, ballooning into the behemoth, we have right now, the government used the excuse of maintaining cross-border commerce to steal products grown by farmers, regulate prices, and set up means and methods to ensure the government was the only winner.
The 1930 legal battles that wound up in the United States Supreme Court over price controls saw the citizen’s first attempt to reign in the government and failed miserably. Worse, these first moves by the citizen were the first exchanges in an economic war that has raged ever since—money stores value. Think of the money found when you do laundry. You have no idea how long that money was lost, but the value of the money has not changed, you presume, and you celebrate finding the money. Except, the value of that money has changed through inflation, and the government’s hidden tax (inflation) has robbed you of value.
Let’s say you found $20 in the laundry. When you first lost that $20 bill, it had more value, e.g., you could purchase more with that money than you can now. Sure, the value printed on the money still has $20 worth of goods or services, but the cost of those goods and services went up, restricting your ability to purchase. Hence the economic warfare being waged by your government. The government essentially said we would not worry about inflation. Meaning they will devalue the money you hold for their own political purposes.
An idea was floated by an economically challenged person to print a $5 trillion bill and use this to pay off the Chinese debt. The problem is the devaluation of the money printed will capsize American citizens due to the hidden taxes of inflation. Making that $5 trillion bill or bills would devalue the dollar and crash the American economy. The stored value in the printed bill would not stand up to and be accepted, as a medium of stored value sufficient to pay the debts incurred. Is the problem more clear; when money is printed, each dollar, pound, euro, etc., devalues the stored purchasing power of the money you currently hold in hand.
Stored value is the second tool for waging economic warfare by the government against its citizens. Consider all the money printed to pay for the supposed Coronavirus Tax Relief and Economic Impact Payments the world’s governments made to their citizens. If you had $100,000 in savings when these monies were printed, your savings were devalued by the inflation rate, which is currently at a 40-year high in America. The government is reporting inflation at 7.9%, so your $100,000 in savings lost the equivalent of $7900. But, the government does not ever report inflation at the actual level, and the actual level of inflation is ranged between 8% and 45% depending upon the purpose or product you are trying to purchase. Meaning your $100,000 could have a value of $92,000 to $55,000 in real value. A hefty tax indeed!
Stored value, the number printed on different bill faces of currency, is static. The actual value, e.g., the number of goods and services purchasable, is not fixed, and the government allows an annual inflation rate of 2% as “normal and acceptable.” Thus, your $1 will have a purchasing power of $0.98, which is compounded year-over-year. Thus, over a decade, that 2% inflation rate is now reducing your $1 to $0.80. Multiply that for the $100,000 and a decade of saving, receiving interest that does not equal inflation to compensate means your money in your savings account has lost $20,000, just from the government allowing inflation at 2% annual growth. Let’s say your bank is generous for savings account holders and provides a published interest rate of 3%, subtract the inflation taxes of 2%, and you are only earning 1% interest on your money. Is this the bank’s fault or the government’s?
Do you see how the government is robbing you through economics? Your 5% raise is only 3% once the inflation devaluation has been factored into your budget. Play the lottery; the taxes alone might kill you, but the devaluation of the money reduces the actual purchasing power of your winnings. If you do not understand the economic warfare being waged against you by your government, you will lose more than you ever gained in winning the lottery. Yet another reason why lotteries are a tax on stupid people, for even when you win, you lose!
Cash has another problem beyond inflation, money supply. The money supply is the technical term for ensuring banks can replace worn-out, ripped, and damaged money. Money supply plays a role in how much money your local store has on hand to provide change and cashback to customers. For employers who pay employees in cash, the money supply is a significant problem with extremely high costs. The government regulates those costs and passes them onto consumers through banks and lending institutions. Are you struggling to get a loan; this is another by-product of money supply woes. Paying higher fees to change money to another currency for your trip is another money supply product. Money supply remains another weapon of the government to affect economic warfare, and many people do not understand this principle, making the government’s policies more effective.
Have you noticed the decline in the availability of $10 dollar bills? I asked for two $10.00 bills when I broke a $20.00 at a Walmart recently, I was denied because Walmart has instituted a policy to only accept $10.00 bills, not give them. Albertson’s, Staples, the in-store bank in Walmart, and the local credit union, all have a similar policy. What is the government doing forcing a reduction in $10.00 bills in circulation? In researching this single policy, I can find no written information on this issue; yet the evidence is clear, there is a manual currency reduction in process and the government needs to explain why.
Before 1980, the basic money supply was measured as the sum of currency in circulation, e.g., cash, traveler’s checks, and checkable deposits. Currency serves the medium-of-exchange function but denies people any interest earnings. However, as discussed, interest earnings are not all they are cracked up to be due to inflation. Cash under a mattress, lost in pockets of clothes, stuck in a book in your library is black money; it is as dead as yesterday’s fish and constantly devalued by inflation. The money supply tries to regulate the cash on hand to lend as a tool to protect your money from inflation. Except, the government constantly allows a 2% inflation rate, negating a lot of savings accounts and other interest-earning propositions.
Want a new car, consolidate your credit card debt, or try to buy a house; all of these loan products are an extension of the money supply and the regulation of money supply by the government. Important to note that your credit cards and bank-issued or employer-issued debit cards are not affected by the money supply, and this is another reason why credit cards and debit cards are so dangerous. These tools are agreements between you and the issuer, where money is transferred when the tool is used, and the consumer is responsible for all the fees the government insists upon to help pay for the money supply.
Conclusion
In waging economic warfare, it remains imperative to know about economics, identifying what money is, its role, and the fiduciary controls the government exerts to attack its citizens. Some may call my language inflammatory, but tell me, do the inflationary costs right now not feel like your taxes have skyrocketed? Inflation is a hidden tax, a tax fully controlled by the government, and the value of your money decreases yearly because the government says 2% inflation is acceptable. Who made this decision, an unconstitutional entity called the Federal Reserve Bank. Since its inception, Congress has tried to obtain transparency and accountability from the Federal Reserve Bank to no avail. Do you understand why I take umbrage with the Federal Reserve Bank?
The governors of the Federal Reserve Bank decided your money could be taxed at 2% inflation annually as a normal condition of doing business. These people set the interest rates you pay for your credit cards and are not paid for your savings accounts. Looking into the history of interest rates since 1900, there is always volatility; the Federal Reserve’s actions have since the 1980s to not allow savings rates over 5%. When adjusted for inflation, that’s a 3% interest rate for those trying to save money. What does this mean; fewer people are saving money. Look where those trying to beat the 3% have invested their money, the stock market, where volatility is a minute-to-minute occurrence, higher risks against less interest, where your money remains subject to taxes, fees hiding other taxes, government fingers, and inflation.
Your government did that to wage economic warfare against you, to empower them to steal your rights, freedoms, and liberties. There is no other way to describe what is happening globally in all governments. China plays games with the value of its currency to power trade deficits. This, in turn, changes prices and increases costs. These actions are taken to “compete,” when in reality, the activities cover massive debt problems in China. If the CCP cannot keep the tap turned wide open on trade deficits, their money supply drys up, and debts come due in a bankrupting tsunami!
The European Union has never been fiscally sound because the various members of the European Union are taking advantage of the productive members to cover the costs of the fiscally useless members. France cannot survive as a country without the European Union’s largesse; Greece, Portugal, and several other countries are all in the same boat. Their governments did this intentionally as political games to stay in power. When these countries run out of other people’s money, they will be forced to change socially, and the tsunami of debt to the World Bank and other nations will not be pretty.
Economics drives these problems mainly due to the lack of knowledge of the lines of congruence between economics and the psychology of governing. The enemies of freedom understand economics, and this is why these tools have been so successful in waging war and stealing freedom, rights, and liberties through monetary policy. Until we, the rightful owners of government, understand what is happening, we will all be at the whims of our enemies.
© Copyright 2022 – M. Dave Salisbury
The author holds no claims for the art used herein, the pictures were obtained in the public domain, and the intellectual property belongs to those who created the images. Quoted materials remain the property of the original author.
With a nod to Bill Engvall, let’s honestly discuss three complete holes in America where suicide by legislative fiat and executive stupidity has produced catastrophic failure. Let me be perfectly honest, if either of these states were a business, they would have been forced into receivership, broken up, sold for parts, and their leaders jailed for incompetency and felonious charges of malfeasance long ago! The charades have ended, the rose-tinted glasses are off, and frankly, the party is over, all the taxpayers are fleeing, and the businesses are closing shop and fleeing for healthier climates.
The time to awake and arise is now! The fight for liberty and freedom will be fought and won or lost in the American West. Sure, the coasts of America are well and truly infected. But, the fight for independence is not on the shores; it is right outside your doors. The media and politicians like to hyperventilate about the coasts, but the rural communities in the “Fly-Over” states are more important to liberty and freedom surviving than any other local in America. Awake and Arise!
In 2019, 
Did you know that the Federal Government allows 
Josiah Quincy
Please note, the federal deficit, state deficits, pension crisis, student loan debt crisis, and interest are not included in the numbers quoted below. The following information comes directly from the Tax Foundation (linked above):
I have read economic reports from noted minds in economics that claim had the dollar not been loosed from the ties to the gold standard, America could not have produced the tools needed to win WWII. To which I continue to claim, as Colonel Potter from M*A*S*H so aptly stated, “HORSE HOCKEY! and BULL COOKIES!” Having Congress issuing massive letters of credit, borrowing tremendous sums of money, and the economic fallout remains a millstone about the financial neck of this country. How much longer will Americans pay for debts created during WWII? What about the ever-increasing debt burden and interest that is driving prices and taxes ever upwards?
The definition of 
What about those who consider themselves “Rich?”
In redistributing your money, the government has proven they are the problem, and the solution begins locally! Change your mayor, city council, county board, school boards, and every other elected official. Getting the local governments in fiscal shape allows state governments to begin practicing fiscal health and sanity. Then, we put people into the Federal Office more interested in scrutinizing the government than in writing endless laws and abdicating their legislative role to the executive bureaucrats and the judicial branch.
There many ideas I embraced as a child that brings me short mentally and cause some discomfort. The biggest of these was the support of labor unions. As a kid, I thought labor unions were the best thing since sliced bread. I learned in K-12 how the 
Because of the hold, the Labor Unions have on government, the line between government policy and labor union influence is generally so blurred that confusion is bred as to why things work the way they work in government. Unfortunately, every country with a representative government and labor unions has the same problem. Labor unions are 
Public-sector labor unions are the number one reason many states in America have seen their credit ratings drop. The debt of the retirement packages and 
Returning to the pattern discussed on 16 March 2019, 
Last week, while scrubbing my SPAM folder on Gmail, I discovered that Google had arbitrarily been sending several emails containing news of a more conservative slant straight to SPAM. Why would Google arbitrarily act in a manner to thwart the delivery of email? A topic for discussion later in this article.
Join me! Join with your neighbors and family members! Let us for a community of responsible and intelligent citizens, who are informed, and active in halting the government abuses at every turn! As a united front, we can win! Believe that, and we are halfway to restoring America to the ”Shining city on a hill!”
Do you understand money? Honestly, is how money is created, used, and tracked understandable or a complete mystery? I have advocated for economics to be taught in high school to understand the actions of government since I was in high school. I was forced to take a class to write checks, balance a checkbook, and other simple economic topics in US Army Basic Training. I thought I knew how money worked after this class, but only later realized I knew enough to get into trouble with money, but not enough to fix the problems I had gotten myself into. I was mid-way through my MBA when I finally took a class on money, economics, and how money works.
Green money is the dollars and cents in a bank account or your pocket and is quickly spent. Green money is often called liquid money or liquid assets, liquid because the holder is presumed the owner, owns it, and can spend it freely any way he wishes. Possession is nine-tenths of the law where liquid assets are concerned. One of the first lessons most of us learned growing up was if you wanted to buy something and your pocket was empty, you went without. Liquid assets are cash, green money and are available to be spent in any way the holder chooses.
Historically, if a debt could not be paid, the debtor’s blood was allowed to be spilled; hence debt is red money. Red money always comes with a penalty called interest. Interest is green money turned red to return the profit to those who lent the initial funds or principle. That debt, be it a loan, a credit card, or another debt model, remains a burden to the borrower, continues to accumulate interest, and can be called due at any moment in time. While some laws protect the borrower from excessive interest rates, it remains essential to know about and be cognizant of the interest rate trap. The legalese on a contract to launch a debt is important to understand, especially where prepayment penalties, late payments, and the ability to call the note due are concerned.
While paying off this loan, you lose your job. You can lose your car because your car is sometimes used as collateral for your payday loan. If the resale value is insufficient, you lose your car, you lost your job, and now you still owe a considerable sum that gains interest. Red money is dangerous; like Damocles’ sword, the danger hangs by a tiny thread above the borrower; one wrong move and the sword falls. Debt, red money can be helpful; but, careful planning and budgeting are required before entering into debt obligations. Always it is better to save and budget green money or obtain investors before contemplating debt.
The next type of money is blue money, also referred to as potential money. Consider a hammer. The hammer might cost $20.00 in green money to buy and bring home. In the hands of a trained construction worker, a $20.00 hammer, over the course of the hammer’s useful working life, has the potential to earn thousands of dollars in green money for the construction worker. In the hands of an inexperienced worker, the hammer has the potential to cost thousands of dollars in green money through waste, destruction, and learning. Training a person to improve their performance might cost $300 in green money; but, if that employee can improve his performance on the job, potentially millions of dollars can come into the company because of the training provided.
Joe’s loan to Jack showed on Joe’s books as red money until the loan and interest were paid. During this time, Joe was also making green money, or profits sufficient to pay his workforce, his other obligations, and still retain adequate to pay himself. Small business owners are not paid until everyone else is paid. It is not uncommon for small business owners to be scraping by on the smallest margins because all their non-liquid assets are locked up in loans to keep the business afloat. When poor business practices begin risking inventory and equipment and shareholder investments are added into the equation, is it any wonder why small businesses struggle.
Money is also created when saved in the various saving tools offered by banks. The diligent saver can save $40 a week until he or she is 65 years of age and potentially have millions in the bank for retirement. Why, because the bank will pay interest to the saver from the interest collected on the loans the bank makes with the green money invested from the savings account. Many different savings tools can be considered non-liquid assets because of the agreements made between the saver and the bank. Generally, the longer the bank’s contract to hold the savings money, the higher the interest rate paid as the bank can schedule payments and loan the same dollars more efficiently when the saver’s funds are expected to be in the bank for a more extended period.
Often Federal treasury departments of governments create money by printing more or larger bills. The problem with printing more money is one of surplus, which begins to increase interest rates and decrease the value of the green money held by citizens participating in the economy. Consider that if the only way to create money is to work money through lending, improving business, etc., and then printing only makes it harder to put money to work. Too much money on the market creates negatives; negatives include lower dollar value, which makes items cost more and increases interest rates, making borrowing costs rise, and inflation begins to increase prices for goods in the economy. More importantly, except for necessities, producers’ willingness to spend money stops; these are typical cause-and-effect actions. A long enough period of decreased desire to spend money and an economic downturn is initiated.
State, City, County, Town, municipal governments are even more pernicious with their plots and plans. On the local government level, money cannot be printed. Hence, debt is entered into, and municipal bonds are sold to create money in the private sector, which is then paid to the government in increased taxes, but the money lent to the local government was already spent. One truth discovered about government, when taxes are increased, money is asked of the voters to borrow. The truth is, the government body asking for more has already spent the increase, spent the budget, and usually spent twice as much as they are asking the voters to allocate. Consider special elections for increasing taxes; the money being asked for has been spent, the budget was spent, and now the voters are asked to pay for the special election cost to decide if the local government can spend some more money. The increase being asked very often has been spent three to four times before the election is considered to ask for permission to enter larger amounts of debt in the public’s name.
In several different locales, municipal bonds can be held as unseen debt or black money, also referred to as unfunded liabilities, kept on other books, not currently open to the public. The monies owed are not considered red money because there is no plan by those in power to pay these debts; thus, the city’s debt could be significantly higher than reported. Unfunded liabilities never have a plan for repayment by those in power. Unfunded liabilities can be a mixture of many different debts (employee retirement, some municipal bond types, unpaid bills to local service providers, etc.). The common denominator remains, there is no plan or money to repay this debt. Thus, black money is created because there are no plans or money to meet these obligations. The taxpayer remains on the hook for the principal and the interest of those unfunded liabilities. Unfunded liabilities are hopes of current politicians on future prosperity, and sometimes, depending upon laws, unfunded liabilities are part of the government’s credit rating. Low credit ratings by the government increase taxes, the risk increases, making borrowing money more expensive, and the taxpayer generally has no idea how poor their municipal government’s credit rating. Never forget, municipal government, many times includes the local school board.
While this explanation is elementary, the lessons contained are sufficient to protect the bottom-line, improve knowledge, and provide an opportunity for improving circumstances. When bottom lines fail, before anything else, look to lost blue money as the cause. When blue money is disregarded long enough, red money increases exponentially, and green money evaporates; this formula is set in stone. Potential blue money is not elusive, but it takes keen observation to protect and grow. Grow enough blue money, and green money multiplies exponentially.
Fiscal literacy improves freedom and liberty. Fiscal literacy is required to maintain the US Constitution and US Bill of Rights. Budgets are not bad things for government to live on; in fact, the government should be the first exemplar of budgetary soundness and fiscally literate action. A Liberty FIRST Culture will require fiscal sanity and fiscal restraints, a reduction in debt, and a payment plan for all unfunded liabilities.
Consider these lines for a moment, not as part of the greater work, but as a pattern to be laid over the actions of the politicians elected to office, who have sold liberty and freedom for “a toy.” Those same politicians who will seek their personal gain as a “dream, a breath,” or a “fleeting joy” are the same politicians who will buy with your money mirth, happiness, and prosperity so that the rest of the country can wail, cry, and suffer.
As a kid, I read a Newsweek or Time article on how long the National Debt would take to pay off. I have never found this article again, which is a tragedy, for I would quote the source heavily. However, since the debt has ballooned over the last four American Presidents, it would be safe to say that the article I read as a kid is “out of date.” We find some troubling facts about debt’s captivity from the 
Consider what happened with Hurricane Katrina: hundreds and thousands of people were displaced, hundreds needed airlifts of food and water, thousands of homes were flooded, and Katrina’s recovery cost is still ongoing. President Bush II took a political hit by the media, and the political left and their media lapdogs had a field day on the suffering and devastation during an American Natural disaster. Would you be surprised if I told you the real culprits for failing to protect the citizens from harm properly was not the Federal or State government’s job? Would you consider that the local authorities, even some of those who went to jail for embezzlement, were guilty of other crimes that have so far gone unpunished?
The government is not a superhero. The government is not the answer to local problems, emergencies, and natural disasters. Your neighbors, friends, and families are the superheroes. That is where one looks in times of trouble, not the government!
As a point of fact, everyone who thinks the US Government is the superhero must remember, the Federal Emergency Management Agency (FEMA) has the right to tell a state, No! As in, No; the resources of the Federal Government will not arrive to help you. No, the Federal Government will not be paying for this disaster. No, the failure to prepare properly is not the problem of the Federal Government. The Governor can activate the US Army National Guard, but if they do this, the State is on the hook for the full cost of mobilization, and if FEMA says No, then the State now has more budget problems than previously expected.
The sad but undeniable truth is this, a “Liberty First Culture” must acknowledge the elephant in the room, the national debt, and the harsh taskmaster’s debt and interest. During the Clinton years, the fiscal games only hurt America and the world, never balancing the budget or paying down the debt. Liberty is a priceless commodity but is easily destroyed through debt. Public debt can only be entered into by politicians; politicians feel they are immune from the taskmasters of debt and interest because they were elected. This mental disconnect from the action and the consequence responsibility is the key to changing the discussion in national, State, and local capitals on publicly funded debts. For the other sad and undeniable truth, the National Debt is just the beginning of the debt problems facing America.
A “Liberty First Culture” requires the adults in the room sanction the politician, restrict the checkbook, and demand debts begin to be reported clearly, concisely, and coherently, include all unfunded liabilities, and then start planning a method to repay the debts even if it means shrinking the size of government. Even if it means less nation-building outside America’s borders. Even if it means ending the meddling, we do in other nations to instruct them on “gender equality” or other nonsense that does nothing but waste your tax dollars and my tax dollars.
There is a legal axiom that everyone should know and fear in the biblical sense, “Ignorance of the law is not a valid excuse.” When I first heard this hypothesis, my initial thought was, “How totally bogus!!!” As I have learned, as my literacy levels have climbed, and as my understanding has deepened, I understand the principle in this axiom more completely. The principle is not to sow doubt and fear in a populace but to promote learning because liberty is both precious and easily removed. As a point of reference, the preciousness and removal of liberty have been studied. Through their ignorance, those who are illiterate of the law are more susceptible to be disadvantaged by the law.
Except … research supports the conclusion that despite fairness doctrines written into laws, illiterates are more disadvantaged in legal dealings. Never forget, functional illiteracy was a desire of Dewey in the late 1860s as a means of reducing the power, liberty, and freedom of populations through K-12 education. We must start understanding the origins of the problem to empower and plot a working solution. Academic research is purposefully vague and inconsistent on the lines of congruence between functional illiteracy and individual wealth and economic mobility, all while taking advantage of the inconsistencies where the law is concerned.
Jen Deaderick, writing for the 
I fully submit that after K-12 Education, a person is recognized as an adult, fully responsible for their actions or inactions based upon what they learned in school, to become a productive member of society. I have learned and am still learning tough and difficult lessons regarding personal literacy and financial decisions, literacy and law, liberty and literacy, and much more. Yet, I read, I try to expand my mind, I make choices and suffer or enjoy consequences based upon those choices. I understand the process because I have wanted to know more.
How often does this story repeat in your family? How often does this story repeat in your school? How often does it repeat in your community, state, and nation? The short answer, “Too bloody often!” These are the people to whom the law abuses, contracts are a noose around their necks, voting ballots are a blur, and who will never leave the captivity of illiteracy!
Your command of your language has been intentionally limited, and each successive year, it has been reduced. For example, while insignificant, my knowledge of literature is greater than my sister’s, and her command of the language is magnitudes greater than my youngest brother. Want an interesting experiment, next time you have multiple generations of your family around, ask them what words mean and how to use them in sentences. You will find similar generational gaps in literacy, even if those family members do not read.
Your potential to learn is not governed by what a teacher or school board has determined. Your potential is only limited by you and your choices. If you know someone who struggles, please help them, for you will find that empowering a mind to learn is the most incredible feeling in the world! To know you have brightened a mind to shake off the shackles of captivity gives you the confidence to improve your own understanding and to repeat the feat! Please, help end the abuse of the law, through literacy which increases liberty and freedom! Because we are all connected, increasing liberty and freedom for one person increases liberty and freedom for everyone. The truth is apparent, “
red green money as a result of their sale; this is why a house, a car, a boat, and other such items are considered assets. The sale of the asset provides the opportunity to turn a non-liquid asset into a liquid asset. However, since many times the asset is employed as collateral for a loan, the sale of that asset means the loan holder is paid first from the sale. If the resale value is insufficient to cover the full loan owed, the loan, which is red money, can still be collected; this process is why red money is so important to understand.
s a burden to the borrower, continues to accumulate interest, and can be called due at any moment in time. While some laws protect the borrower from excessive interest rates, it remains important to know about and be cognizant of the interest rate trap.
In the hands of an inexperienced worker, the hammer has the potential to cost thousands of dollars in green money. Training a person to improve their performance might cost $300 in green money; but, if that employee is able to improve his performance on the job, potentially millions of dollars are able to come into the company because of the training.
DNC-Consulting 