1) IRS Debt. No surprise, here. Our government has evolved into a heartless machine to transfer money from her people to uber-wealthy Federal Reserve shareholders. Why is IRS debt non-negotiable? Two reasons:
a) Making Federal income taxes irrevocably payable in central bank notes is a sure way to guarantee the bank can never go away. All central banks follow this tenet of power.
b) All IRS collections go directly to Federal Reserve banks. As such, they represent the end-game of all Fed scams. Strange. One could be forgiven for thinking U.S. tax collections might find their way into the U.S. Treasury. Nope. If you've written a check to the IRS, maybe you noticed the endorsement:
"Pay Any F.R.B. Branch or Gen. Depository for Credit U.S. Treas. This is in Payment of U.S. Oblig."I'll translate:
We the F.ederal R.eserve B.anks have first lien on all U.S. tax revenue. It is ours, not yours.This oddity led President Reagan's 1984 Grace Commission to report, in their cover letter:
"Resistance to additional income taxes would be even more widespread if people were aware that:2) Student Loan Debt. One has to think for 10 seconds before realizing that permanently enslaving our best and brightest is a non-negotiable objective of the Money Trust. Get 'em early and put the time value of debt on the bank's side.
- One-third of all their taxes is consumed by waste and inefficiency in the Federal Government as we identified in our survey.
- Another one-third of all their taxes escapes collection from others as the underground economy blossoms in direct proportion to tax increases and places even more pressure on law abiding taxpayers, promoting still more underground economy-a vicious cycle that must be broken.
- With two-thirds of everyone's personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government."
Can't find a job after borrowing wildly inflated tuition cash? No relief for you. Get to work. Use those smarts to figure a way to pay.
nice post FDR. question: why do so many of these bears (ie schiff, jim rogers) scream HYPERinflation & weimar germany when all roads seem to point to DEflation? Is it a misunderstanding or misinterpreting of the words?
ReplyDeleteSo let me get this straight. In order to have ANY hyperinflation, or even inflation for that matter, this hinges on the presence of an exploitable creditworthy borrower who can pay back? Is this the element that they are missing? that there are none?
Thanks.
I think the deflation is going to be a type that most of us don't understand because it has not happened before in this way.
ReplyDeleteThe old money supply I believe is going to be consumed in the 500-700 trillion of debt already on the books of American corporations and banks; and there is no new money supply because ONLY the Fed and gov't are spending money, and it is money they don't have. Meanwhile no loans or new financing is happening for many many businesses and consumers.
So basically no new money anywhere means cash is enormously valueable.
hyperinflation IMO is a pipedream currently. I just don't see it happening for a long time.
I think I read today somewhere at marketwatch that there is no new money supply without debt, and basically debt is our money supply...I think the Fed claims this because obviously they make the money issuing new currency. They earn the ultimate interest on all that new debt.
Schiff is very smart but clearly a goldbug. Jim Rogers is of course staking his reputation on commodities being in a twenty year boom. These are very pro-inflationary viewpoints from the start.
I think those guys can be very smart on many issues without understanding the inflation/deflation issue quite clearly.
I am starting to think that any belief in inflation at this point is a reckless and dangerous viewpoint, especially for our incompetent public officials.
"I think I read today somewhere at marketwatch that there is no new money supply without debt, and basically debt is our money supply...I think the Fed claims this because obviously they make the money issuing new currency. They earn the ultimate interest on all that new debt."
ReplyDeleteThat is exactly right, if every loan went bad or was paid off, we wouldn't have a single penny left in circulation.
That is, until California starts issuing their own IOUs and people start trading them as money. I can't wait to see some pseudo-Constitutional money kick the bee's nest.
The Fed will go nuts!
"So let me get this straight. In order to have ANY hyperinflation, or even inflation for that matter, this hinges on the presence of an exploitable creditworthy borrower who can pay back? Is this the element that they are missing? that there are none?"
ReplyDeleteI don't know why those guys see hyperinflation, I like them both.
We've had at least 5 depressions in our nation's history, 1812, 1837, 1863, 1874, 1929 (the Great D was the lightest one). This makes 6.
All of them have been mega deflationary, even the 2 that were not caused directly by a central bank--though they were caused by similar banking interests.
Bottom line - the private banking corporations that issue our cash will only do so if they can turn a profit, and when depressions get rolling, they can't. Not in the same epic proportions as the boom before the depression, anyway.
That is right, money is debt, there is not enough money in the system to pay down the debt because the Fed only create money for the principal, they don't create money for the interest, so there is not enough money to pay down all the principal & interest. This system is psychopathic since its created by psychopaths because its cannibalistic, you can earn money from your fair share to pay your principal, but you cannot earn money to pay interest because it doesn't exist, basically you have to take the money to pay interest from someone else's fair share. Hence the comment the dead eat each other. Thus, only the crooked can prosper, this system is based on the fraudulent belief/religion of Darwinism (Only the strong survive)
ReplyDeleteSystemic failure is, then, inherent and intentional.
ReplyDeleteQUOTE; That is right, money is debt, there is not enough money in the system to pay down the debt because the Fed only create money for the principal, they don't create money for the interest, so there is not enough money to pay down all the principal & interest.
ReplyDeletePlease explain this further, I am not sure I am understanding this but it sounds like a major ponzi scheme with our currency. Basically, the interest to old debt needs to come from new debt or something?
Why is there no money in the system to pay interet on the principal?
"Thus, only the crooked can prosper, this system is based on the fraudulent belief/religion of Darwinism (Only the strong survive)"
ReplyDeleteStrong and weak have no meaning in a rigged system, it is rigged after all because the those in control are too weak to compete.
In our system, only the connected survive.
Our congress steals almost everything from their citizenry, in exchange for a tiny cut of the loot, by allowing the lion's share of our total wealth production to be pilfered by the central bank's perpetual inflations and deflations (see, "The Currency Scam").
As a result, we are about 70% socialist and growing in that direction rapidly, since at least that much is systematically confiscated. 99% of our population must fight over the 30% they still partially control.
They shocking thing is that we still do pretty well. If it weren't for the central bank stealing most of our national production since the early 1900's, the average American would have perhaps 20x more wealth than they currently possess.
That estimation is simple, but also fairly straightforward, since the Federal Reserve has devalues their currency by about 96% since they took charge of the United States in 1913. Thus the 20x guestimate.
FDRAOA,
ReplyDeleteI liked the red font you were using as an accent. It highlights your responses better than the gray!
Fantastic site!
I see that I will have to manage my time better. I have gotten absolutely nothing done this morning except reviewing your site. I have been reading your comments for the last year or so at MW and have found them thought provoking, edgy and informative. It's good to find others who realize that Net Worth has nothing to do with Self Worth. Thanks for your generosity in sharing your knowlewdge and perspectives.
ReplyDeleteAll part of the "End Game", the NWO and the introduction of the Amero , golly that sounds like the Euro!
ReplyDelete