Skip to main content
Report this ad

See also:


Who's got your back? Barack Obama?
Who's got your back? Barack Obama?
Public Domain, Don Mashak

So much talk lately about the increasing disparity in wealth. And, once again, this writer is going to turn your perspective of reality on its head. Today we will show you one of the many ways your government and ruling class steal value from labor, without labor even noticing. This is the true source of the growing wealth disparity.

  • “All wealth is created by Labor” – John Locke
  • “All value is created by Labor” – Don Mashak

Even land and gold have no value unless and until labor is applied to it. Gold has no value until dug out of the ground and Land has no value until labor is used to hunt a deer, harvest crops, dig an oil well or build a house, etc.

  • “The value created only by labor is as much the property as gold and land is” – Don Mashak
  • “Government has no other end, but preservation of property” - John Locke


In days of old, governments and/or the ruling class had to physically collect taxes, etc from the masses. A means to finesse taking property from the masses without them noticing the taking had not yet been invented. This writer has selected Sheriff of Nottingham to represent the Tax Collector as he is well known to all from the various stories of Robinhood.

In reality, low level tax collectors collected the majority of the taxes and called upon the Sheriff to only collect from those who could not or would not pay the tax. Upon being informed, the Sheriff of Nottingham would then engage in a series of escalating interactions designed to induce payment and/or seize property of the person owing the tax.

But there was a drawback to this practice. To state the obvious, when the Sheriff of Nottingham seized someone’s coins, wheat, corn, chickens, goat or Ox, etc, people noticed. The physicality of these tax collection actions raised angst and fomented rebellion amongst the masses.

And after a few uprisings and rebellions, someone thought: “There must be a better, less obvious way to take money from the masses.”


First it must be remembered that the concept of money was invented and became popular because it simplified transactions between persons. For example, instead of bringing your cow with you to trade for wood at the Lumber Yard; it was much easier to bring money. Further, the parties did not have to haggle how many boards a particular cow was worth. With a standard form of money, over time the free market established the fair market value of almost every commodity in terms of the unit of money. And finally, the Lumber Yard owner was not left with a cow that had to be fed and cared for.

Fiat money is money that is not back by specie, such as gold and silver. In other words, for each dollar the government prints it is required to purchase a dollar’s worth of specie and keep it in the government vault.


In the first year of money under a benevolent government, (for the sole purpose of simplifying economic transactions between persons (and making tax collection easier) the government would create an amount of money equal to the value of the products the country produced. In this benevolent government, the money is NOT fiat money; it is backed by gold.

For our example, we are going to have a very simple economy. The only things people produce are cows and jumpsuits. The only thing that people need to live are cows to eat and jumpsuits to wear. For our example, Cows are consumed and jumpsuits wear out in one year, but money never wears out and is never lost.

In the year before the government implements “money”, the barter rate is 2 jumpsuits to exchange for 1 cow. Taxes to the government are half a cow or 1 jumpsuit for each adult citizen.

In year 1, the country produces 100 new cows and 100 new jumpsuits. To facilitate the use of money instead of barter, the government puts a total of $300 into circulation. Based on last year’s barter exchange rate, the fair market value of each cow should be 2 dollars and that of jumpsuits should be 1 dollar. Taxes for each adult is 1 dollar.

In year 2, the country produces the same number of 100 cows and 100 jumpsuits, so there is no need for the government to add more money to the economy. The price of each cow and jumpsuits remain unchanged

In year 3, the country produces 110 new cows and 110 new jumpsuits. To keep prices stable, the government puts 30 more new dollars to the economy. (As in our example, money never wears out and is never lost; the amount of money in circulation is 330 dollars.) The price of cows remains 2 dollars and jumpsuits remains at 1 dollar. Taxes to the government remain 1 dollar.

Ad infinitum…

While our example over simplifies the US Monetary system, all of the other elements that actually exist only cloud the net effect that will be demonstrated. Even when added into the mix, these other elements do not substantially offset the negative effect which is about to be exposed. Neither does expanding the range of products produced or consumed does not negate the detrimental effect about to be exposed.


Our malevolent government is identical to the benevolent government example, except that it uses fiat money and will print more of it. Our malevolent government using Fiat Money means that instead of buying more gold to back additional money the government prints, it only has to buy more ink and paper.

The year before year 1 with “money” is the same as year 1 under the benevolent government: the barter rate is 2 jumpsuits to exchange for 1 cow. Taxes for the government are half a cow or 1 jumpsuit for each adult citizen.

Year 1 of “money” under the malevolent government is also the same as year 1 of “money” with the benevolent government. The country produces 100 new cows and 100 new jumpsuits. To facilitate the use of money instead of barter, the government puts a total of $300 into circulation. Based on last year’s barter exchange rate, the fair market value of each cow should be 2 dollars and that of jumpsuits should be 1 dollar. Taxes for each adult is 1 dollar.

In year 2, the malevolent malignancy reveals itself. Like year one, the country produces 100 new cows and 100 new jump suits. But this year, despite no increased production, the peple in the government print 100 more dollars but only put 50 dollars into the economy while keeping the other 50 dollars for themselves.

And with at one act, the rank and file masses get screwed by inflation and the theft of value (which is only created by their labor).

  • “Government creates little or no value. The only way Government gets value is to take value created by the labor of the masses.” – Don Mashak

Still don’t see it. It’s this simple.


The money supply has increased by 33.3% from 300 dollars to 400 dollars but the amount of production remains the same. Inflation is too many dollars chasing too few goods. The inflation rate will eventually rise to 33.3%. This means that each of the dollars already in your pocket will purchase 33.3% less this year than it did last year.

How do you like fiat money now?


Now comes the even worst part; the government kept 50 dollars for itself. Where does the “value” for the 50 dollars the government kept for itself come from? As the government produces little or no value, the value for those 50 dollars must come from somewhere else. As all value is only created by labor, the value must be stolen from the stockpile of labor created by the masses (you and I). The quick math says your government stole 16.6% of the value of the dollars already in your pocket, or 16.6% of your cow or 16.6% of your jumpsuits. Does your government taking value you created with your labor from you without asking permission sound fair to you?

In short, a theft of value, created only by your labor, occurred without you knowing because it was stolen with “smoke and mirrors” and the Sheriff of Nottingham did not physically manifest himself to alert you to the commission of the theft.

How do you like fiat money now?


The US Constitution requires US money to be backed by specie, but it currently is not.

Currently the US is printing $85 Billion of worthless money per month in a program known as Quantitative Easing III or QE3. Do you think our country is creating $85 Billion dollars of more products (Cows and Jumpsuits) each month now than it was a year ago? This writer doesn’t.

  • “It is dangerous to be right when the government is wrong.” – Voltaire

The US Government uses the privately owned Federal Reserve Bank as the intermediary for this theft (of value created only by your labor). And this is one of the many embarrassing facts which keep the Federal Reserve Bank from refusing to be audited. (Is some the fiat money that is being printed but not dispersed in the economy, being kicked back to Congress as bribes or Campaign Contributions in a Quid Pro Quo arrangement for allowing the theft of value from the masses to continue?)

Why the US Federal Reserve Bank System is unconstitutional and must end

As you can see, your American Government is using the same Artificial and Parasitic Institution of Fiat Money as we described in our Malevolent Government Example. And until this writer informed you, your government and our ruling class had perpetrated the crime without attracting your attention. Again, this is the true source of the growing wealth disparity.

My fellow Americans, “How well has your government done in protecting your property?” “Why does your government permit this theft from you to continue?”


Which brings us back to the growing wealth disparity?

President Barack Obama has seized on this topic as a means to get the masses to pull the lever for Democrats one more time. President Barack Obama once again is working the tried and true Class Envy angle to divide rank and file America in the classic False Left/Right 2 major Political Party Paradigm. Suddenly, a Minimum wage increase is all the rage with President Barack Obama and the Progressive Democrats. Because as they tell you rich conservatives exploiting the labor of the masses is the cause of said wealth disparity.

But wait a minute; back the truck up. Are the allegedly low wages the main source of the growing wealth disparity between poor and middle class Americans and the wealthy?

This writer doesn’t think so. Besides the Fiat Money Theft scheme you have just been enlightened with; there are other smoke and mirror scams used to steal value from the masses. These include but are not limited to schemes like Congressional Insider Trading, The Federal Reserve Bank itself and Fractional Reserve Banking. (This writer will be fleshing out these and other Ruling class rapes, pillages and plunders of rank and file Americans in a future article with the working title of “Artificial and Parasitic Institutions of Modern America)

As we transition to the final thrust of this article, this writer posits that his regular readers know this independent conservative rips on the Republican Party Establishment as much or more than he does the Democrat Party Establishment. So rank and file Democrats, please lower your shields a little while this writer Speaks some Truth to Power.

The Democrat Establishment regularly whips its rank and file membership into frenzy against the faceless conservative boogey-man. In dehumanizing the opponent, they make it easier for rank and file Democrats to fall into a blind, emotional hate about everything conservative.[Progressive Edward Bernays –Assassin of Democracy]

Now think long and hard about this thought: Wasn’t it a conservative that just told you about how your government was stealing from you in a way you hadn’t even realized? Where are your elected Democrat officials? Where is your party? Who’s got your back? A gosh darn conservative.

Now think for yourself when you hear what comes next. President Barack Obama and the Democrats had the presidency and both houses of Congress a short while ago. President Barack Obama and the Democrat leadership know full well that YOU are being ripped off by various scams including the aforementioned Fiat Money, Congressional Insider Trading, The privately owned Federal Reserve Bank and Fractional Reserve Banking. If the Democrats really cared about the best interests of YOU rank and file Democrats, why didn’t they fix Fiat Money, Congressional Insider Trading, the FED and fractional reserve banking when they controlled it all?

And with that, this conservative writer will provide these two Tweets that he believes express his perspective of reality best:

  • There are not 2 major political parties, there is 1 and only 1 ruling class pretending to be 2 political parties. They uses issues to divide and conquer WE THE PEOPLE so we don’t unite against them.

@DMashak on Twitter

  • The True Battle is NOT Republican vs. Democrat, Left v Right, White vs. Color, Christian vs. NonChristian: ITS WE THE PEOPLE V THE CORRUPT INCUMBENT RULING CLASS.

@DMashak on Twitter

That having been said, this conservative writer challenges rank and file Democrats and Republicans to contact their elected officials and party officers with this article and ask them, “Is this true?” and then, “WTF is going on?”.

Why do President Barack Obama and the Democrat Establishment toy with your existence by offering the pittances of small minimum wage increases when they could restore value stolen from you by them by rescinding Fiat Money, Congressional Insider Trading, the FED and reforming Fractional Reserve Banking? Or isn’t the Democrat Establishment serious about addressing wealth disparity?

Ask yourself, “How is it all these folks we elect to Congress seem to be leaving Congress as millionaires?”

Where does all the money these Congress folks accumulate come from?

Is it starting to dawn on you now?

Doesn’t seem like your Democrat Establishment is in bed with the same folks they keep telling you are your enemy?

The amount of money stolen from rank and file Americans via some measure of unfare wages is dwarf by the theft of value from rank and file Americans via Fiat Money, Congressional Insider Trading, the FED and Fractional Reserve Banking. These are the overwhelming cause of growing wealth disparity.

Rank and File Left have been conditioned to believe all conservatives are the enemy. And rank and file Right has been conditioned to believe that everything Liberal is the enemy. All this conditioning by the one and only one ruling class pretending to be two parties has been done to prevent rank and file America from uniting against the ruling class. They ruling class is the true enemy of all rank and file Americans.

Now, if you Center Left rank and file Democrat Labor types have figured out that you have more in common with us Center Right rank and file Republican Labor types, why not join us in restoring the Constitution, the Bill of Rights, Natural Law, the Rule of Law and taking back our country? We can go back to fighting over relatively stupid stuff once we have dispatched the tyranny that has engulfed us all. If you are so inclined: this writer suggests you hit the ground running by reading:

2014 New Year’s Resolution for all True Patriots

Finally, every American should be moved to action because of the inevitable consequences of printing worthless fiat money. Eventually the dollar must implode.

Please wake up America.

Once again, this writer apologizes for the long article. In defense though, original thought takes more words and time than regurgitating somebody else’s party dogma.

Those were my thoughts.

In Closing:

Thank you, my fellow citizens, for taking your valuable time to read and reflect upon what is written here.

If what is written here rings true to you, perhaps you should contact your local elected officials and let them know. If you are afraid of repercussions, snail mail it anonymously and ask them to respond in the local paper or their own monthly/quarterly internet newsletter. Even if this article refers to something outside you geographic area, it still likely applies to your location. Remember all those taxpayer training junkets we taxpayers send the bureaucrats on? They all learn the same “livestock management” techniques to use on WE THE PEOPLE.

And that leaves WE THE PEOPLE with this conundrum: While our #Government works full time with compensation and funded with our money for the cause of #Tyranny; WE THE PEOPLE are forced to work part time without compensation for the cause of #liberty with what is left over of our time, money and energy.

Finally, this article is written with the same intentions as Thomas Paine I seek no leadership role. I seek only to help the American People find their own way using their own “Common Sense”

Keep Fighting the Good Fight!

In Liberty,

Don Mashak
The Cynical Patriot
Don Mashak Google Plus


End the Fed(eral Reserve Bank System) #ETF
National Minneapolis

Bring Home the Politicians #BHTP

Lawless America #LawlessAmerica

Term Limits #TermLimit

Justice in Minnesota #JIM

Critical Thinking Notice - This author advises you as no politician would dare. Exercise Critical Thinking ( in determining the truthfulness of anything you read or hear. Do not passively accept nor believe anything anyone tells you, including this author... unless and until you verify it yourself with sources you trust and could actively defend your perspective to anyone who might debate you to the contrary of your perspective.

Report this ad