Fiscal cliff discussion
December 6, 2012
a”100 percent of what is collected is absorbed solely by interest on the Federal Debt … all individual income tax revenues are gone before one nickel is spent on the services
taxpayers expect from government.”
– Grace Commission report submitted to President Ronald Reagan, Jan. 15, 1984
I had a wee of a time talking to Mike Rosen during his radio show recently as the “fiscal cliff” was being discussed. Mike interrupts a lot so it is impossible to string several points together, but I did make these points:
• Federal Reserve Chairman Ben Bernanke has announced quantitative easing to infinity.
• Treasury Secretary Timothy Geitner has called for an end to debt ceilings, or in other words, has called for debt to infinity.
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This system, whereby the privately held Fed can create money to lend to our government with no limit has been in place for a long time and has allowed our debt to exceed $16 trillion. This system is highly lucrative for the well placed private players. Keep reading.
I asked why the federal government needs revenue from us anyway if they can just create all that they need via the Fed. (As an aside, monetary inflation is detrimental to us all because monetary inflation leads to price inflation. The purchasing power of our savings is eroded. Monetary inflation is perhaps the most insidious mechanism for the transfer of wealth over time. But that’s a different story for another day.) The point is, with this mechanism for money creation in place, why do they collect national income tax? I asked Mike if he’d heard of the Grace Commission Report (GCR.) I incorrectly stated that the Report showed that only 5 cents out of a dollar was being spent on the goods and services that we expect from our government. He said it did not say that. Well, Mike, I was wrong about that. See the finer point of the GCR above: before one nickel. I asked again where the Fed gets the money to lend to the government. Mike said “Treasury Notes” and of course, cut me off.
After the break, he got back on and talked about frustrated Elena whose heart is in the right place. He repeated some of my points: Mike said:
A) The Fed is private. But then he went on to say the Fed is directed by our government. Wrong Mike. Our government has NO CLUE what the Fed has been up to and where our bailout money has gone, etc. There seems to be a policy of ‘don’t ask, don’t tell’ judging from the many failed attempts (bills) to audit the Fed.
B) In addition to money lent to the U.S. government by citizens and other governments, the Fed creates money to buy more of those pretty little pieces of paper called U.S. Treasury Notes. A+ Mike! The Fed creates the money out of thin air, sticks those Treasury Notes in their vaults (not really – its all on computer these days) and then we get to pay them back principle and interest on that debt. And what a payback it is. See the GCR above. Then Mike went on to end with “it’s complicated.”
Mike and Rush and Hannity (and all their counterparts on the “progressive left”) tell a great deal of truth, but they never give the whole picture. We are told it is complicated and to leave it to the big boys to manage for we little people. How’s that workin’ out for us? The fact is, it is not complicated at all.
National income taxes were first collected in 1913 and are used to pay back the Federal Reserve that was given the privilege – ta da! – in 1913 of creating money out of thin air for purposes of lending to our government.
Also established in 1913 were tax-exempt foundations. The big boys had no intention of paying this new tax. But, with their foundations, they’ve influenced our government, education, research, and think tanks. Again, how’s that working out for us?
So that’s what national income taxes do: They transfer our wealth to a private banking cartel; and they are used for social engineering, influencing all manner of economic and social behavior. National income taxes do not pay for government services. See GCR above.
This is our world of central banking working in collusion with power-happy government officials.
The United States of America, 1776-1913, R.I.P.
-Elena Campbell lives in Winter Park.