Monday, October 7, 2013

60% Tax Hike & Other Fiat Gifts...L&C

This is a story that is taking place in Japan and coming to your nation in the near future.
60% Tax Increase
The first question you should ask, could I cope with it if this happens to my nation? The old sales tax was 5% and now, it is 8%. It is only three cents. What's the worry? Dear reader, this is how fiat currencies operate. Since the US allowed the formation of the Federal Reserve, the buying power of the dollar has lost 95% of its purchasing power. By the end of this year, it will be 96%. This is the way government steals from its citizens. It takes your money and gives it to people with influence to help them get reelected or to develop projects that these same officials will benefit. The concept of democracy is in word only. Governments do what they think is best and this is not what is beneficial to the general public. When the public realizes this fallacy of our present system, we will have a chance with a new third party. Until then, these are the type of gifts that both political parties foster, fiat. Here is another gift of fiat thinking.
In the same year as the Fed was formed, the same elected officials also passed the formation of income tax. It originally stated that it would be capped at 2% and it would only effect the rich. Ha! I've got some sad, serious news for you. According to the rules in the formation of the IRS, the government can take 100% of your income, if it needs it. Fiat, debt grows with your present money and if that isn't enough, it will take your future earnings.
Governments spend and what they cannot pay for with your tax dollars, they put on debt. When a nation had a gold standard, there were strict ratios that limited the creation of new debt because you had to have gold backing whatever number of dollars that you printed. This is why the bankers and elite created the Fed. It had two real purposes. One, it would allow the unlimited formation of debt. Secondly, in case this debt formation caused a crisis within the market, the Fed would be the backstop to protect them.
Of course, there were other options to pay for the debt. Growth would add new tax revenues. You could develop new taxes, but not so many to alarm the citizens. This tax will alarm the citizens of Japan. They already are disillusioned over the nuclear incident and the lies from Tepco utility company. Fish, their most favorite staple is threatened. We can only hope that the people will awake and demand no more debt because Japan's debt is already over 220% of GDP. This is the same road where the Fed is sending our nation. Our best hope is the people of Japan cause a protest that receives world attention. Maybe another financial crisis to see the dangers of QE. End the Fed!
Liars and Crooks: Our debt ceiling is so bad and the truth so far from the front page that writing this makes me sick. Consider this: 40 states, count them, need and count upon government assistant to meet their budgets. This amounts to over 31% of income and yet, at the same time they almost all have deficits to state pension funds. By the way three states, Louisiana, Idaho and Arizona get and need over 41% to make ends meet. How can the government not increase the debt when so many are beholding. How are we ever going to get out of this debt mess unless we End the Fed!