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That's a tax on money out of circulation if I understand right.

Correct. It can also be seen as galloping negative interest. SPEND OR DIE!!

Hmm, is that a dramatization? I don't think anyone has to die. It's just a fail-safe to prevent the concentration of wealth into a tiny group of people.

If you aren't spending your money, how badly do you really need it? How much extra ( beyond the standard of living cost) should you be allowed to have for personal gain?

Exactly. I can only smoke so many Cuban cigars in one day ;)