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Shawn
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I like lots of things: outdoorsy stuff, photography, music, gardening, Drupal, programming, universities.

Simple question with a not-so-simple answer: Why does the federal government levy taxes?

The obvious, but incorrect, answer is: To fund services. To pay for stuff that they want done.

While this is true for state and local government, this is not the case for the federal government. The federal government has no need of your tax dollars to pay for services. They can (and do) print as much money as they need to pay for the things they want to pay for.

The next local step is to respond: “Okay, sure, but if they did that, the inflation would be insane” (moreso). Aha! Now we’ve found the first reason why the federal government levies taxes: to control inflation. And for all its faults, the US government is actually the best in the world at this. That’s a scary concept.

Another way to think about it is this: whenever the federal government spends money, on military, education, science, industry subsidies, debt interest, or anything else, new money is created. Every time. Conversely, whenever taxes are collected, money is destroyed. In an ideal situation, those two numbers are equal and we have a “balanced budget”. But that hasn’t happened since the late ‘90s, and is unlikely to ever happen again.

So do not ever whine that “my tax dollars are being spent on (thing I don’t like)!” Or “my tax dollars are being wasted.” No they aren’t. We all hate inflation, and your tax dollars are being spent to control inflation. Instead, complain that money is being PRINTED to fund (thing I don’t like). And/or complain that (people I don’t like) should pay more taxes and I should pay less. Both are probably valid.

There are two more reasons why the federal government levies taxes:

To generate demand for the currency. US taxes can only be paid in US dollars. If you could pay your taxes in Euros, gold, or bitcoin, that would reduce the demand for dollars (moreso) and threaten the foundation of US dollar hegemony. Can’t have that!

Lastly, and less crucial to this conversation: the federal government levies taxes to influence behavior. Tariffs are the perfect example of this. Tariffs are a tax on US businesses, and sometimes individuals, to make it more expensive to import goods internationally. They encourage patronizing US businesses, which is fine if there actually exists competing US businesses in the industries that are being tariffed. If there aren’t, well, that just means higher prices for US consumers.

My main point is this: maybe the federal government shouldn’t have the power to print as much money as they want. Then the obvious answer would actually be the correct answer.

Because existing laws were never meant to be enforced. At least not entirely. They were meant to be enforced selectively against the “out” crowd. Binding the “wrong” sort of people. While the laws protect the “in” crowd.

It is infeasible to fully enforce all the laws. We need fewer laws. At least against the people.

Yeah, Gruber failed to do his homework on this one. Shame.

In case anyone was wondering, #nostr is apparently “the weirdo blockchain network”.

I suppose any news is good news, but I expect better from Gruber.

https://daringfireball.net/2025/01/openvibe

Survivorship bias.

Oh, and you’re a tech genius with significant Lightning experience.

It’s still scary for most of us.

Nice. Haven’t been there since I was a kid.

Interesting. I don’t know it worked like that.

So if I just send to my default channel with that same key, it doesn’t appear in News? Where would it appear? I see you have a LongFast channel. Maybe there?

Then how are they distinguished on the network? Like if I send something, how do I get it to show up in “News” on your node?

Are they just different keys? Or are you doing something different with the broadcast itself?

Think of it this way: When TikTok removes one of your videos or bans you completely, it’s not “censorship”. They are a marketplace and you are the product. They are just choosing which products they want to sell (ie to advertisers). If they don’t like a product (ie you) they don’t have to sell it.

So, the choice really is:

1) Create only the content that will appease the marketplace owner, not what you really want to create, nor what your followers want/need to hear.

2) Create and publish content on a truly censorship-resistant, and open marketplace, directly to your followers.

You see, it’s not really TikTok that’s censoring you. You are choosing to censor yourself.

You don’t have to do that anymore.

They don’t see it that way. And in their mind, there is no other way to see it than what they’ve been doing.

But I don’t see a lot of other countries balancing their budget or moving to a un-debasable currency. So I think it’ll just be a slow burn.

Maybe there will be a revolution, but that sounds messy.

You say you want a revolution

Well, you know

We all wanna change the world

You tell me that it's evolution

Well, you know

We all wanna change the world

But when you talk about destruction

Don't you know that you can count me out?

Don't you know it's gonna be alright?

Alright

Alright

You say you got a real solution

Well, you know

We'd all love to see the plan

You ask me for a contribution

Well, you know

We're all doin' what we can

But if you want money for people with minds that hate

All I can tell you is, brother, you have to wait

Don't you know it's gonna be alright?

Alright

Alright

Replying to Avatar Chad Lupkes

My conclusion based on years of reading and making connections is that budget deficits are the actual source of ALL of these issues, and those started in the 1960's with the Vietnam War, Great Society, Apollo and other factors. Our government's refusal to balance the budget forces us to shove more and more US Dollars into circulation, far away above and beyond what a growing population can absorb by having more demand for goods and services. So every single year that we have a shortfall and we have to go further into debt to issue new currency, the people who buy the treasury bonds get the coupons and then later when the bonds mature they get more money to spend in the economy. The individuals and institutions who are buying those treasuries are not middle class or working class, they are upper class and institutions. And what do upper class and institutions do with new money that comes in as revenue? They buy stocks and high ticket items. Enter "Lifestyles of the Rich and Famous". That was a TV show in the 1980's that was SUPPOSED to show how insane it was that people have this much extra capital, but instead it got spun into a "I wish I were a Rich Man" show where everyone in America was promised that if we worked hard enough for 4 decades, we could afford $100 Million dollar mansions and thousand foot yachts.

If we don't balance the budget, the US Dollar will go to zero. Milk will cost $50 per gallon. Million dollar homes will be dumps that nobody wants. Education will be so expensive, nobody will attend classes except the ultra rich. Charles Dickens will be rolling in his grave.

Balance the !@#$%^& budget at the federal level. If any politician doesn't show you a plan to do that, and if any member of the House or Senate doesn't have that as their top priority, vote against them.

Sounds nice, but there’s no incentive to do so. If it’s possible for someone to print money, someone will print money. And no amount of voting will change that. Even if people actually vote the way you say.

It’s like The One Ring: “But I will use the power to HELP people!” Nope!

The only way out is a monetary system that CANnot be debased, but The Ring will fight back: “Throw it into the fire!” “No.”

Let’s hope it doesn’t take 3000 years.