Inflation is rising again, fuel prices have surged and the labour market is weakening. In my latest chat with Mike Graham, we looked at what those numbers actually mean for households.
Great piece Jamie. And of course, you’re absolutely correct. Prices rise all the time. It’s just how fast they rise.
We can’t stop costs. The cost is the cost in a free market. That’s why we need to do as much as we can with what we have. I completely agree.
The question for me is do we cut our cloth or just get more cloth! My view is the latter.
Cutting cloth only covers so much!! We definitely need more cloth!!
And the way we do that is the use of MONEY. We must use that money that presently sits unused.
Because we need to use money to reward us all then, hiving it off in Banks at home and abroad not contributing to our collective need is just wrong.
Not just wrong, it allows vast sums of money to be dormant, unspent, unused and idle that isn’t even taxed!
So not only is money withheld from our needs it’s not even taxed!!!
That’s why we are in this quagmire Jamie. A lack of turnover of money and an absence of tax of that unspent money.
If money were to be rotated millions of times a day, then more tax would be generated than if it was taxed just the once. So the obvious benefits come from it being SPENT.
It’s the systems inability to force SPENDING that keeps us oppressed.
But money is one thing. Value is another. I’m hoping that if money has to be SPENT each time it’s received a more sensible value of goods and services would result. But that’s a question for later.
First, we just need to understand tax.
All tax is triggered by SPENDING. As money is SPENT tax is triggered. For example, when employers SPEND on the wages and taxes of their employees. As well as SPENDING money itself.
We know that’s true because MONEY NOT SPENT triggers NO TAX. NONE.
So all taxation has to come from SPENDING. It’s a fact. Spending or having to spend is the trigger.
So for us we need others to SPEND so we get income and government need that spending for them to get sufficient tax for their needs a surplus not constant deficits.
It’s not a difficult concept to understand Jamie?
So the answer must be from more spending of the money that hitherto hasn’t been used! And that’s the money held in Bank accounts. On behalf of the minority who hold the vast majority of our much needed money. As that’s the only pot of money that presently is unspent.
At present we have an underfunded economy producing an underfunded government. Because most of our money is effectively withheld in those bank accounts.
What we get instead of freely spent money is indebted money leveraged by unelected banks for their benefit not ours. Not the majority.
That’s undemocratic unfair and wrong.
Earn as much as we can. But we have to spend it in full and fair exchange swapping money for others work production and effort.
It’s not rocket science Jamie, it’s cash flow.
It’s a three dimensional application of a two dimensional need. But critically we need a fourth dimensional time limit for that cycle. To ensure we all get sufficient money in time for us to pay our bills!
You can’t read that from two sided bookkeeping Jamie. You can’t run a governments economy by such a limited view. It’s not a household budget of, money in and money out. It has to come back around every single month and that’s the full cycle. It’s through a 4D viewfinder.
Thanks for the detailed thoughts, Brian! You’ve hit on a classic economic puzzle there — the velocity of money. Getting cash circulating rather than sitting idle certainly keeps the wheels turning, though I suspect trying to manage a "4D" cash cycle might give the Treasury an even bigger headache than they already have! Always appreciate you sharing your perspective.
I do hope you don’t get too upset with my thoughts. I know the type of monetary system I see is not to everyone’s taste. No one wants to be forced or told to SPEND. But in reality the poor spend all their money, they have to.
Most family’s are forced to spend too. And the reality is that most of the middle classes spend theirs as well! Just to keep up with the bigger houses and expensive cars. And let’s face it, pensioners are also skint! Not least because they have to keep helping their children and grandchildren their money.
No who I’m aiming at here is those with so much extra money they don’t have to spend.
And even in a spending economy there are still those who don’t need all their rewards.
But I’m not saying we have to not have money for a rainy day! What I’m trying to get across to those I reply to is to see that the present economy fails. And the economic model we have is failing because it’s flawed! It will never work. It hasn’t ever worked and it never will.
Because it’s a system of having cake and eating it.
How can a money based token of exchange system ever work if a small number hold most of the money and don’t exchange it by spending it!?
It will never ever work.
I am a businessman. I understand that most on here are looking to make a living based on opinions. It’s hard to throw my spanner in those works and be listened to. But I have to try.
And as I admire your ability to do the numbers then I feel you are well placed to understand this. It might be that you can see that writing on the wall and make a tack away from the constant bewildering attempts to get a grip on this system we have and instead try and put your thinking to a system that will work because the obvious is so glaring.
We can see the top is too heavy with money.
Yet we can see that money is short and hard to find.
We can see tax has increased and still it doesent bring in enough.
And despite all attempts to think it through we can all see that even if you are right and the government cuts everything we need that, yes , it will balance the books, but it’s still going to be a failure of the system to work as it should by not letting the spending of money trigger tax.
And we can see that banks make leveraged money every day to lend but government can’t just put extra in to begin with!
But the clearest sign we are deluding ourselves is this. ….
Tax. …Tax has to be a result of SPENDING. Like spending for vat and duty but also for income and nic!!! These are not a solely tax payers tax!
They both are a result of triggers from others spending. Employers spending and all citizens spending to trigger money into business to pass on that money to give them the money to trigger increased income tax and Nic.
All tax comes from spending Jamie.
We know that because NOT SPENDING triggers no tax at all. None.
Tax has to be triggered by the amount of money being spent. And if money isn’t being spent in sufficient amounts and in a time sufficient enough to get tax in time then that’s why we are not just short of money but short of sufficient tax take.
All these observations above are true! And if they are true then they have to be taken as gospel. To ignore them is just being obtuse and ignorant and that’s why I keep pressing those who can influence others like yourself Jamie to not be oblivious to those facts. We don’t need much to know they are correct. It’s obvious. An easy sum to you.
If a system isn’t working then surely why is it impossible to think of another way?
Trying to keep spinning the same stats based on a bad system makes no sense to me but I understand the need to work and earn.
So in my efforts I’m not trying to make your job harder. I’m trying to say, look at it all differently. Because in itself the job of earning from thinking can be done with a bad failed set of system stats just as well as a good system that can be analysed to see if the system can be bettered. I suggest the latter.
Cutting expenses is great advice if we can’t earn more. But if we can clearly earn more and pay more tax within such a tsunami of spending then surely that needs investigating?
Stats on money in our currency and if it were to be spent could easily predict an optimum economy. Not the worst case one we analyse till the cows come home.
And as tempting as it is to keep pushing for cuts the thinking that there are taxpayers and non taxpayers is clearly wrong! We are all taxpayers!
It’s those who spend everything pay as much as they can. Those who spend nothing each month pay sod all tax. And those who spend part of their incomes pay less pro rata than those who spend everything. All this is obvious. But missed so often we promote the wrong mantra.
We don’t have to cut. We just need to make money move. The money that’s usually idle each month. Because that’s not being spent freely to pass on money to others and it doesent trigger any tax to give our government the money it needs!
Jamie everyone is told it’s “WE the taxpayers” who pay for everything including non workers who are therefore, “not taxpayers”. But that is just not true!
It’s spenders who pay tax and non spenders who pay nothing! And they are likely to be the rich. The ones holding money and not spending it.
To keep pushing that disinformation mantra is just kidding themselves and others.
I’m hoping this reply can help you in understanding something you thought you knew. I’m hoping this helps not hinders.
I’d like thinkers and the brightest with numbers, like you, can see these differences and make you think more not less about the true possibilities. Not because they are wrong. Just misinformed.
Cuts won’t ever get spending going. That’s a fact. And it won’t get more tax take. That’s a fact. So are you up for a challenge Jamie?
Can you think of ways to test that theory with stats based on money moving not idle or with reduced government spending!
I’m hoping you can look in that direction because people listen to you and trust you Jamie. That’s my hope.
Great piece Jamie. And of course, you’re absolutely correct. Prices rise all the time. It’s just how fast they rise.
We can’t stop costs. The cost is the cost in a free market. That’s why we need to do as much as we can with what we have. I completely agree.
The question for me is do we cut our cloth or just get more cloth! My view is the latter.
Cutting cloth only covers so much!! We definitely need more cloth!!
And the way we do that is the use of MONEY. We must use that money that presently sits unused.
Because we need to use money to reward us all then, hiving it off in Banks at home and abroad not contributing to our collective need is just wrong.
Not just wrong, it allows vast sums of money to be dormant, unspent, unused and idle that isn’t even taxed!
So not only is money withheld from our needs it’s not even taxed!!!
That’s why we are in this quagmire Jamie. A lack of turnover of money and an absence of tax of that unspent money.
If money were to be rotated millions of times a day, then more tax would be generated than if it was taxed just the once. So the obvious benefits come from it being SPENT.
It’s the systems inability to force SPENDING that keeps us oppressed.
But money is one thing. Value is another. I’m hoping that if money has to be SPENT each time it’s received a more sensible value of goods and services would result. But that’s a question for later.
First, we just need to understand tax.
All tax is triggered by SPENDING. As money is SPENT tax is triggered. For example, when employers SPEND on the wages and taxes of their employees. As well as SPENDING money itself.
We know that’s true because MONEY NOT SPENT triggers NO TAX. NONE.
So all taxation has to come from SPENDING. It’s a fact. Spending or having to spend is the trigger.
So for us we need others to SPEND so we get income and government need that spending for them to get sufficient tax for their needs a surplus not constant deficits.
It’s not a difficult concept to understand Jamie?
So the answer must be from more spending of the money that hitherto hasn’t been used! And that’s the money held in Bank accounts. On behalf of the minority who hold the vast majority of our much needed money. As that’s the only pot of money that presently is unspent.
At present we have an underfunded economy producing an underfunded government. Because most of our money is effectively withheld in those bank accounts.
What we get instead of freely spent money is indebted money leveraged by unelected banks for their benefit not ours. Not the majority.
That’s undemocratic unfair and wrong.
Earn as much as we can. But we have to spend it in full and fair exchange swapping money for others work production and effort.
It’s not rocket science Jamie, it’s cash flow.
It’s a three dimensional application of a two dimensional need. But critically we need a fourth dimensional time limit for that cycle. To ensure we all get sufficient money in time for us to pay our bills!
You can’t read that from two sided bookkeeping Jamie. You can’t run a governments economy by such a limited view. It’s not a household budget of, money in and money out. It has to come back around every single month and that’s the full cycle. It’s through a 4D viewfinder.
Thanks for the detailed thoughts, Brian! You’ve hit on a classic economic puzzle there — the velocity of money. Getting cash circulating rather than sitting idle certainly keeps the wheels turning, though I suspect trying to manage a "4D" cash cycle might give the Treasury an even bigger headache than they already have! Always appreciate you sharing your perspective.
Thanks Jamie.
I do hope you don’t get too upset with my thoughts. I know the type of monetary system I see is not to everyone’s taste. No one wants to be forced or told to SPEND. But in reality the poor spend all their money, they have to.
Most family’s are forced to spend too. And the reality is that most of the middle classes spend theirs as well! Just to keep up with the bigger houses and expensive cars. And let’s face it, pensioners are also skint! Not least because they have to keep helping their children and grandchildren their money.
No who I’m aiming at here is those with so much extra money they don’t have to spend.
And even in a spending economy there are still those who don’t need all their rewards.
But I’m not saying we have to not have money for a rainy day! What I’m trying to get across to those I reply to is to see that the present economy fails. And the economic model we have is failing because it’s flawed! It will never work. It hasn’t ever worked and it never will.
Because it’s a system of having cake and eating it.
How can a money based token of exchange system ever work if a small number hold most of the money and don’t exchange it by spending it!?
It will never ever work.
I am a businessman. I understand that most on here are looking to make a living based on opinions. It’s hard to throw my spanner in those works and be listened to. But I have to try.
And as I admire your ability to do the numbers then I feel you are well placed to understand this. It might be that you can see that writing on the wall and make a tack away from the constant bewildering attempts to get a grip on this system we have and instead try and put your thinking to a system that will work because the obvious is so glaring.
We can see the top is too heavy with money.
Yet we can see that money is short and hard to find.
We can see tax has increased and still it doesent bring in enough.
And despite all attempts to think it through we can all see that even if you are right and the government cuts everything we need that, yes , it will balance the books, but it’s still going to be a failure of the system to work as it should by not letting the spending of money trigger tax.
And we can see that banks make leveraged money every day to lend but government can’t just put extra in to begin with!
But the clearest sign we are deluding ourselves is this. ….
Tax. …Tax has to be a result of SPENDING. Like spending for vat and duty but also for income and nic!!! These are not a solely tax payers tax!
They both are a result of triggers from others spending. Employers spending and all citizens spending to trigger money into business to pass on that money to give them the money to trigger increased income tax and Nic.
All tax comes from spending Jamie.
We know that because NOT SPENDING triggers no tax at all. None.
Tax has to be triggered by the amount of money being spent. And if money isn’t being spent in sufficient amounts and in a time sufficient enough to get tax in time then that’s why we are not just short of money but short of sufficient tax take.
All these observations above are true! And if they are true then they have to be taken as gospel. To ignore them is just being obtuse and ignorant and that’s why I keep pressing those who can influence others like yourself Jamie to not be oblivious to those facts. We don’t need much to know they are correct. It’s obvious. An easy sum to you.
If a system isn’t working then surely why is it impossible to think of another way?
Trying to keep spinning the same stats based on a bad system makes no sense to me but I understand the need to work and earn.
So in my efforts I’m not trying to make your job harder. I’m trying to say, look at it all differently. Because in itself the job of earning from thinking can be done with a bad failed set of system stats just as well as a good system that can be analysed to see if the system can be bettered. I suggest the latter.
Cutting expenses is great advice if we can’t earn more. But if we can clearly earn more and pay more tax within such a tsunami of spending then surely that needs investigating?
Stats on money in our currency and if it were to be spent could easily predict an optimum economy. Not the worst case one we analyse till the cows come home.
And as tempting as it is to keep pushing for cuts the thinking that there are taxpayers and non taxpayers is clearly wrong! We are all taxpayers!
It’s those who spend everything pay as much as they can. Those who spend nothing each month pay sod all tax. And those who spend part of their incomes pay less pro rata than those who spend everything. All this is obvious. But missed so often we promote the wrong mantra.
We don’t have to cut. We just need to make money move. The money that’s usually idle each month. Because that’s not being spent freely to pass on money to others and it doesent trigger any tax to give our government the money it needs!
Jamie everyone is told it’s “WE the taxpayers” who pay for everything including non workers who are therefore, “not taxpayers”. But that is just not true!
It’s spenders who pay tax and non spenders who pay nothing! And they are likely to be the rich. The ones holding money and not spending it.
To keep pushing that disinformation mantra is just kidding themselves and others.
I’m hoping this reply can help you in understanding something you thought you knew. I’m hoping this helps not hinders.
I’d like thinkers and the brightest with numbers, like you, can see these differences and make you think more not less about the true possibilities. Not because they are wrong. Just misinformed.
Cuts won’t ever get spending going. That’s a fact. And it won’t get more tax take. That’s a fact. So are you up for a challenge Jamie?
Can you think of ways to test that theory with stats based on money moving not idle or with reduced government spending!
I’m hoping you can look in that direction because people listen to you and trust you Jamie. That’s my hope.