I have to wonder just how long we will continue to allow this government to maintain its Social Ruse on the People?
The subject is Income Tax, Social Security and Medicare Tax and it’s usage. We are told that it is to provide the government with much needed revenue to operate and keep our nation strong and safe, to provide the needed services and benefits.
It is a very useful tool in the hands of politicians and bureaucrats, but its purpose is not that which is publicized or promoted.
You see, these taxes form a very powerful system of social compliance, but little else. It all starts with the monetary system that has been imposed upon this country: The Federal Reserve Bank and its Fiat Currency System.
In reality, what the banks do with mortgages and loans is very similar to what the government does. Banks lend you and I money that doesn’t exist until the moment you sign the mortgage or loan note.
In the Federal Reserve publication "I Bet You Thought" states: "Printed Federal Reserve Notes that sit in the Treasury's vault do not become money until they are released into circulation in exchange for checkbook money that was CREATED BY A BANK LOAN. As long as the bills are in the vault with no debt-based money to replace them, they technically are just paper, not money."
Debt and Circulation are equal...someone has to borrow every single Federal Reserve Note for it to enter circulation. As I said before, the bank doesn't have the money they lend you sitting in a vault somewhere waiting for a person to take out a loan, it comes into existence the moment that person signs the Mortgage.
In other words, in a very basic sense, you didn't borrow anything from the bank, but you are going to spend the next 30 years paying them back something they never really had to lend you in the first place and on top of it they charge you Interest for using the money that didn't exist and they didn't have until you signed the Mortgage.
When you scour off all the pretense of banking...all they do is pretend to lend us money and charge us for the pretense. The government does basically the same thing when borrowing money from the Federal Reserve. The only difference is that the government is well aware of the scam while so many people taking out mortgages are not.
The Federal Reserve provides an unlimited supply of money to the government in the very same process, creating money out of thin air and then on top of it they charge the government interest. Unfortunately, the debt is never paid, can never be paid off due to the multiplication of debt in an endless cycle of Fiat Circulation.
In fact, think of a Trillion Dollars in this way: If you started borrowing 1 Million Dollars in the Year 1 A.D., and borrowed a Million Dollars each day, 365 days a year, every year, year after year, you would finally have borrowed just One Trillion Dollars in the year 2037. Now imagine what this government has borrowed.
My point is that the money the government borrowed will never, can never be paid back because the system simply doesn't allow it to be paid back. Only periodic interest and principle payments are made. Of course, the owners of the Central Banking System loves that fact.
In such a system, the amount in circulation is exactly the same as the debt; one does not exist without the other. Every single dollar in circulation was borrowed, either by the government or by business or an individual.
Every time a portion of the periodic principle and interest of the debt is paid by the government, it must turn around and borrow that same amount from the Federal Reserve, usually more because the government is the government and since it is no longer limited by an Honest Weight and Measure of Constitutional Money (i.e. gold and silver), it grows uninhibited.
Now, what about those taxes? The whole purpose of taxation has nothing what so ever to do with the creation of revenue for government operations or programs. Its primary purpose is to force you and I to use Fiat Currency pumped out by the Federal Reserve Bank.
It was a strange coincidence, don’t you think, that the Federal Reserve Act and the introduction of the modern Income Tax were introduced around the same time, then you add the passage of the 17th Amendment to the mix and you have a witches brew of socio-economic tyranny. Speaking of the 17th Amendment, it was used to eliminate the potency of the States and to bring the Senators into the national political market, where they are easily bought and paid for, and taking them out of the hands of the State Legislatures. So, now instead of having a House of Representatives representing the People's Rights, and Senators representing the State's Rights in Congress, you have a system which can easily be manipulated by the federal political machine's money and corruption.
So, underneath all the pretenses used by the government, we were forced into a system, which would eventually use Fiat Currency and institute a Progressive Income Tax to support its acceptance.
In the Federal Reserve’s own publications you will find the following:
"In the United States neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper. Deposits are merely bood entries. Coins do have some intrinsic value as metal, but generally far less than their face amount. What, then makes these instruments: checks, paper money, and coins acceptable at face value in payment of all debts and for other monetary uses? Mainly, it is the confidence people have that they will be able to exchange such money for other financial assets and services whenever they choose to do so. THIS IS PARTLY A MATTER OF LAW; CURRENCY HAS BEEN DESIGNATED "LEGAL TENDER" BY THE GOVERNMENT, THAT IS, IT MUST BE ACCEPTED."
"Modern monetary systems have a fiat base, LITERALLY MONEY BY DECREE with depository institutions, acting as fiduciaries, creating obligations against themselves with the fiat base acting in part as RESERVES. The DECREE appears on the currency notes: "This note is legal tender for all debts, public and private." WHILE NO INDIVIDUAL COULD REFUSE TO ACCEPT SUCH MONEY FOR DEBT PAYMENT, EXCHANGE CONTRACTS COULD EASILY BE COMPOSED TO THWART ITS USE IN EVERYDAY COMMERCE. HOWEVER, A FORCEFUL EXPLANATION AS TO WHY MONEY IS ACCEPTED IS THAT THE FEDERAL GOVERNMENT REQUIRES IT AS PAYMENT FOR TAX LIABILITIES. Anticipation of the need to clear this debt creates a demand for the pure fiat dollar."
Now why does the government enforce the payment of Income Taxes, simple to maintain the system of Fiat Currency, but that is not the only reason? Another, more insidious reason is found in the writings of another Federal Reserve Chairman named Breadsley Ruml in 1946. He state, in no uncertain terms the reason behind the Progressive Income Tax:
“The necessity for a government to tax in order to maintain both its independence and its solvency is true for state and local governments, but it is not true for a national government. Two changes of the greatest consequence have occurred in the last twenty-five years, which have substantially altered the position of the national state with respect to the financing of its current requirements. The first of these changes is the gaining of vast new experience in the management of central banks. The second change is the elimination, for domestic purposes, of the convertibility of the currency into gold.”
“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.”
“The United States is a NATIONAL STATE, which has a central banking system, the Federal Reserve System, and whose currency, for domestic purposes, is not convertible into any commodity. It follows that our Federal Government has final freedom from the money market in meeting its financial requirements. Accordingly, the inevitable social and economic consequences of any and all taxes have now become the prime consideration in the imposition of taxes. In general, it may be said that since all taxes have consequences of a social and economic character, the government should look to these consequences in formulating its tax policy. All federal taxes must meet the test of public policy and practical effect. The public purpose, which is served, should never be obscured in a tax program under the mask of raising revenue.”
Concerning the use of Taxation for the Distribution of Wealth, Ruml was very clear:
“The second principal purpose of federal taxes is to attain more equality of wealth and of income than would result from economic forces working alone. The taxes, which are effective for this purpose, are the progressive individual income tax, the progressive estate tax, and the gift tax. What these taxes should be depends on public policy with respect to the distribution of wealth and of income. It is important, here, to note that the estate and gift taxes have little or no significance, as tax measures, for stabilizing the value of the dollar. Their purpose is the social purpose of preventing what otherwise would be high concentration of wealth and income at a few points, as a result of investment and reinvestment of income not expended in meeting day-to-day consumption requirements. These taxes should be defended and attacked it terms of their effects on the character of American life, not as revenue measures.”
As you can see, the purposes of the Progressive Income Tax are little more than an instrument of Socio-Economic Construction by the State. The government does not need Tax Revenue in order to function. In the Fiat Currency system the government simply allows the Federal Reserve to “lend” it money, doesn’t matter how much, at least not to the government.
Now, the only problem with the whole system is that there is a nasty side affect by the unlimited printing of Fiat Currency and placing it into circulation: it’s called INFLATION. There comes a time when the pressure of Inflation eats up the wages of the People and the whole economic market begins to suffer, as we have all seen.
So, they take massive amounts on income away from the People in the form of Income Taxes in order to maintain some degree of control over the Inflation they create, which is just another form of taxation. Our tax rate, counting the percentage of Income Tax we pay, plus the massive amount of Inflationary Tax we pay, leaves us with precious little to live on and in fact, it makes the People of the United States one of the heaviest Taxed peoples in history.
Our money is debt; it is created and backed by nothing more than debt. Now since it is nothing but debt, and there is no value to it, why would the government want to decree its usage? Simple, it is a system that controls you and I; it makes each of us compliant to the various laws imposed outside of the framework of the Constitution.
So, what are you and I going to do about it? We have another swing in Congress, once again we have placed the Democrats in office in hopes that they might thwart the abuses of power found in the Bush Administration. We take this action every so many years, flipping the coin to see if the other side is any better then the one we just had in office. We let one Party take their respective turns at the helm of government only to find that neither Party appears to be able to do anything worth while. Both Political Parties have taken their turn at driving this Nation to the place we found ourselves today, do we think this time around will be any different?
We are a Flip-Floppy Nation and guess what, we have been conditioned to be Flip-Floppy, apathetic and compliant. In a very few years, to our horror, we will once again be anxious to flip the political coin over again to see if the other Party has any ideas to come to Our Beleaguered Nation's rescue. The Republican and Democratic Parties have proven their flecklessness and obsolescence.