Taxes are obsolete

Final freedom from the domestic money market exists for every sovereign national state where there exists an institution which functions in the manner of a modern central bank, and whose currency is not convertible into gold or into some other commodity.

Beardsley Ruml
Chairman of the Federal Reserve Bank of New York
January 1946


ASP members regularily ask if senior staff at the various central banks of aware of the monetary ideas that the ASP has adopted? Their assumption in posing this question - is that if such staff are knowledgeable on these ideas (and since the economic benefits are so self evident), that the central banks would actually implement these ideas for the benefit of all.

taxes-are-obsoleteIn answering the question (as to whether central bankers are aware of these ideas) - it may be shocking to discover that senior bankers have publicly expressed these very ideas going back as far as January 1946.

Beardsley Ruml (past chairman of the Federal Reserve Bank of New York) presented a paper on taxation to the American Bar Association - where he stated that any sovereign state that has a central bank, and whose national currency is not convertable into gold or any commodity, has no further need to impose any taxes on its citizens or corporations.

As to why central banks have not implemented these beneficial ideas is obviously a matter of conjecture. It is interesting to note that this paper also states that the purpose of a federal tax is:

As an instrument of fiscal policy to help stabilize the purchasing power of the dollar.

This statement above implicitly recognised the fact that a key role of the government is to protect the value of the dollar (i.e. keep price inflation at ZERO).


With the implementation of the ASP monetary policy (of the government creating and spending into circulation all new money) - there will be a significant reduction in taxes and the public debt.


If this mischievous financial policy [of sovereign states creating their own currency], which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world.

Hazard Circular
London Times 1865

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