This essay is the conclusion of my journey into the convoluted world of Wealth and Money … Gold or the Fed … 6 essays in all.\u00a0 I hope that those of you that have suffered through all this writing have learned as much as I have in trying to understand where we have been and where we are going … Lee<\/p>\n
Evil as it is, the IRS code is a happy tune when compared to the real deviousness of what the Progressives did to us in the 1930\u2019s.\u00a0 FDR\u2019s New Dealers soon found that the income tax did not provide enough money for their schemes \u2026 after they had raised marginal tax rates up to near 90% for some of the \u201cevil\u201d rich, they knew that they could not raise taxes any more and get away with it \u2026 so they had to find some other devious way to tax the people without their knowledge.<\/p>\n
\u201cAhaw! the Progressive intellectuals said, \u201cLet us institute a welfare program for the aged.\u00a0 We will institute another tax called \u201cSocial Security\u201d which we know that the charitable American people will go for \u2026 they will gladly contribute to the retirement income of the poor elderly.\u00a0 Here\u2019s what we will do \u2026 We will go to the insurance company\u2019s actuarial tables and find out when at least half of the populace will be dead and make that the \u201cretirement age\u201d \u2026 65 years old.\u00a0 And although the wage earning individual\u2019s job will pay the tax in full (no job, no FICA tax), we will tell the gullible worker that he will only have to pay half the tax, because we will make his evil employer pay the other half.\u00a0 That will obviously make the employer angry, but since there are a lot more workers than employers and it will not only make the worker happy, but will give him a sense of camaraderie with other workers in their animus toward the rich, we will do it.\u00a0 We won\u2019t point out to the ignorant fools that the FICA tax is a direct tax that is more than 16% of the workers pay.\u00a0 Or that we spend it as we receive it.\u00a0 We won\u2019t advertise that our new system is a general fund tax, we will tell the public that the money will be put into a \u201cSocial Security Trust Fund\u201d, but we will be sketchy on the details.\u00a0 If we should need more money from time to time, we can just raise the tax, only half of which will appear in the worker\u2019s pay slip, although he pays it all.\u201d<\/p>\n
This ingenious method of taxation, a true scam \u2026 a ponzi scheme, has been working for almost 75 years.\u00a0 Initially, it was a great source of revenue.\u00a0 There were very few claims and a great number of people paying.\u00a0 The government, as always, paid those who qualified and spent the huge excess \u2026 the only trust fund was the accounting department.\u00a0 Now at this late date, the chickens are coming home to roost; the outgo is far greater than the income.\u00a0 Although the system is bankrupt, the burden, now temporarily suspended, still is an albatross on the shoulders of the American worker.\u00a0 How does the Treasury pay for Social Security obligations?\u00a0 Well of course, it issues interest bearing Treasury bonds which the Fed monetizes with baseless fiat paper money.\u00a0 Actually, the Fed no longer prints the money \u2026 the Fed chairman Ben Bernanke has been quoted as saying, \u201cit is a simple computer entry.\u201d<\/p>\n
What has been the effect of the Fed printing its fiat money?\u00a0 Today\u2019s dollar has the purchasing power that the penny did 75 years ago.\u00a0 How do we know that?\u00a0 We know that gold is more or less timeless.\u00a0 It doesn\u2019t change in value.\u00a0 We also know that for the 120 years of American history when we used gold for money or our paper money could be redeemed for gold or silver that the Treasury would buy all the gold that you had for $17.50 per ounce (so, honest entrepreneurs minted their own one ounce coins for the $2.50 difference) and that a silver dollar weighing almost an ounce could be redeemed by the tender of your dollar Treasury note.\u00a0 Or by tendering 20 paper dollars you would receive a one ounce gold \u201cdouble eagle.\u201d\u00a0 Today it takes 30 paper Federal Reserve notes to purchase an ounce of silver and 1600 of them to buy an ounce of gold.\u00a0 That is bad enough, but the Federal Reserve dollar bill cost of these commodities is escalating.\u00a0 As the Fed prints more and more notes, it takes an ever increasing number of them to purchase the same amount of metal.\u00a0 Gold and silver don\u2019t change in real value, but the paper fiat Federal Reserve note very soon may not, like the post WWI German mark, be worth the ink on the paper on which it is printed.<\/p>\n
All of this is horrifyingly evil, but we have not yet measured the depth of this monstrous banking\/governmental depravity.\u00a0 You work for a wage, sum certain, and then you deposit it, less your expenses, in a bank; in stocks or bonds; or some other asset to provide for your future needs \u2026 retirement; college; travel; old age; or some other personal want or need.\u00a0 But our friendly Progressive politician has now evolved the most sophisticated method of governmental fraud \u2026 thievery \u2026 of all, the ultimate tax.<\/p>\n
Your greatest personal commodity is your labor.\u00a0 It may be presumed that you are making a fair wage for your labor \u2026 so many hours for so much money.\u00a0 Another way at looking at the money that you are saving for the future is this: instead of your account representing so many dollars, it represents so many hours of your life.<\/p>\n
When the Fed injects its fiat money into the economy \u2026 it uses euphemisms like \u201cEuropean Bail-Out,\u201d TARP, QE1 (quantitative easing), QE2, and soon to come QE3 to give a \u201cpolitically correct\u201d name to their skullduggery.\u00a0 In the most recent past, because of the tenuous solvency of the American banking system, the Fed has bought bonds from the US Treasury for \u201czero\u201d per cent interest.\u00a0 In other words, they are giving the Treasury free bogus money.\u00a0 The Treasury can now spend without limit and it is doing so.\u00a0 Our government is spending trillions of dollars that it does not have.<\/p>\n
What does this mean to you and me?\u00a0 Those dollars (hours of our lives) that we deposited in our nest eggs \u2026 banks, savings, stocks, bonds, etc. are being attacked by the devaluing effect of the Fed\u2019s fiat money printing as never before.\u00a0 Our nest egg is being taxed by the Fed (and the government) working on the delayed action of inflation.\u00a0 Today\u2019s prices for commodities are a product of the free market \u2026 so many hours of our life to buy our groceries based upon the grocer\u2019s ability to buy his groceries which is a function of how hard it is for the farmer to produce them.\u00a0 We are offering our labor (our dollars), a commodity, to the entrepreneurial efforts of the grocer in gathering his commodities from the farmer whose commodity is food production \u2026 all these transactions being separate commodities.\u00a0 All this based upon how hard it is to obtain a dollar.\u00a0 When the government puts its ill gotten fiat money into this system it takes advantage of today\u2019s prices based upon today\u2019s dollar with its counterfeit money, purchasing real commodities with a currency that has no worth.\u00a0 The government\u2019s action allows it to purchase something of real value with something of no worth, while polluting the money supply in circulation with worthless paper.\u00a0 We producers of real commodities perceive, slowly, the infusion (or dilution) of the fiat bills.\u00a0 The result is that we demand more dollars for our work and the grocer and farmer more dollars for their commodities.\u00a0 Inflation becomes rampant and as more and more fiat money is circulated, prices rise at an escalating (perhaps asymptotic) rate.\u00a0 When the Weimar Republic (Socialists) did this in Germany in the early 1920\u2019s it took 10,000,000 (paper) marks to buy an egg.\u00a0 At the beginning of WWI the mark was a silver coin equivalent to the silver American quarter.\u00a0 Today in the Democratic Republic of Zimbabwe (Socialists) they have actually been printing a 100 trillion dollar bill with a value of approximately 30 cents of the current American currency.<\/p>\n
Because Congress has never and will not now act to do so, nobody has been able to audit the Federal Reserve System to see who the principals are or to whom the interest that the Fed charges the US Treasury goes.\u00a0 It is known that the Fed was conceived at Jekyll Island, Georgia in November of 1910 by a conference of the most influential bankers in the world.\u00a0 It is reasonable to assume that the banks that these men represented or they themselves or their heirs are the beneficiaries of the interest paid to the system.\u00a0 No one knows what the average interest paid by the Treasury to the Fed is.<\/p>\n
It is not generally known, although it possibly is by some in the Congress, but certainly not the American public, how much the Treasury owes to the Fed.\u00a0 The chairman of the Fed has in the past been quoted as saying that the cost of operating the Fed is \u201conly\u201d \u00bc of 1%.\u00a0 Say the Fed handles 40 trillion dollars per year, a figure once opined by former Fed chairman, Alan Greenspan.\u00a0 \u00a0This amount would yield this monster organization 100 billion dollars a year without even considering interest amounts due on outstanding loans to the Treasury.\u00a0 Does the Congress and the Fed owe the American public an audit?\u00a0\u00a0 Is somebody getting rich loaning counterfeit money to the US?<\/p>\n
So what is the scenario?\u00a0 \u2026 The Federal Reserve prints counterfeit money and loans it to the US Treasury as if it had value.\u00a0 The Treasury spends this borrowed counterfeit along with the real blood, sweat and tears money that the IRS has stolen your and my nest egg \u2026 real commodity money \u2026 our income, FICA, and other taxes.\u00a0 The fiat money dilutes our supply of commodity money, thereby devaluing purchasing power of the dollar.\u00a0 This phenomenon which devalues our money is called INFLATION.\u00a0 This inflation not only devalues the money that we use day to day to purchase goods and services, but it does something that is far more insidious.\u00a0 Every hard earned dollar (day\u2019s work) that we have saved is also devalued.\u00a0 That is the heinous, evil, despicable, monstrous, unspeakable fraud that has been foisted upon the American public.\u00a0 Those dollars (day\u2019s work) that you put away last year are now worth, assuming 6% inflation, 94 cents.\u00a0 Those put away 16 years ago have the purchasing power of less than a nickel.\u00a0 The Fed and the IRS have taxed away all your savings without you even knowing it.\u00a0 Additionally, it is obvious that the Fed intends for the fiat dollars loaned to the Treasury be repaid to them, interest and principal, with our commodity money \u2026 our blood, sweat and tears money.\u00a0 If you are having trouble making ends meet, the cause is not the evil store owner downtown, or the evil businessman, or the evil oil company, or even the evil banker, but the monstrous minions of the government, the Fed and IRS and the Presidents, members of Congress and the Supreme Courts who willingly allow this unspeakable fraud to continue.<\/p>\n
What will happen? \u2026 We need not fear the Chinese who have loaned us back the 100\u2019s of billions of dollars that we have spent on their goods, for they have made the same contract with the US government that you and I have when we accept the dollar as money.\u00a0 The paper money that we accept is believed to be backed by the \u201cfull faith and credit of the United States of America,\u201d but when push comes to shove, probably is not.\u00a0 And the last two chairmen of the Fed have both said that we will never default on our obligations.\u00a0 This can only mean that as the notes that individuals, businesses or nations hold come due, the Treasury will borrow and the Fed will print the money necessary to pay the country\u2019s bills.\u00a0 After all, the debts are in dollars, the dollar has no intrinsic value or commodity worth and the Fed prints as many as necessary.\u00a0 As the profligate spending continues and even accelerates, the debt will continue to rise at an ever increasing rate, until very soon, the commodity portion of the income to the Treasury will not be sufficient to pay the interest on the debt.\u00a0 When this happens, the payment on the interest will have to be borrowed too.\u00a0 Very soon after this happens, if not before, we can expect that confidence in the dollar will be lost, if not in this country, certainly abroad.\u00a0 Foreign nations and their citizens at that point can be relied upon to stop buying Treasury bonds.\u00a0 We in this country almost certainly will see runaway inflation like that that ruined post WWI Germany \u2026 probably with its social and political upheavals in addition.\u00a0 Our money will become worthless, those of us on pensions and annuities will no longer be able to pay our obligations.\u00a0 Wages will have to be paid twice a day or more.\u00a0 Contracts will be paid with the money from a morning\u2019s work.\u00a0 The populace\u2019s commerce will devolve once again into barter.\u00a0 This condition will prevail until some new medium of exchange appears, until we have a new money.\u00a0 Modern governments have solved this problem by cancelling debt and then issuing a new fiat currency, starting the process all over again.<\/p>\n
The correct answer to this problem is simple \u2026 we need a commodity money, something to use in exchange that has true value, something that is scarce, something that is durable, something that is immutable.\u00a0 And of course, that entity is the gold and silver and copper and possibly other metals envisioned in the Constitution.\u00a0 Banking can once again become an honorable vocation that promotes thrift and enterprise.<\/p>\n
If we use these metals we need not be concerned about their supply, as they, like all commodities in a free market will be valued in proportion to their scarcity and if one becomes very scarce, the value of others will adjust so that we have a stable currency.\u00a0 If we do as I would like and repeal the 16th<\/sup> Amendment or in the alternative enact a balanced budget Amendment, coupling that with commodity money, inflation will not be a factor as was proved when our forefathers required gold and silver money for our new nation.\u00a0 Our blood, sweat and tear money will be stable and untouchable, because it is a timeless, tangible commodity.\u00a0 Our country will once again be stable and our thrift rewarded.\u00a0 International intrigue, interference and meddling will be truncated and American citizens can once again concentrate on the American dream and the betterment of themselves and mankind in general.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" This essay is the conclusion of my journey into the convoluted world of Wealth and Money … Gold or the Fed … 6 essays in all.\u00a0 I hope that those of you that have suffered through all this writing have … Continue reading