The Death of the Petrol Dollar

Another hot topic across Americas mass media, is of course the demise of the “Petrodollar” which involves yet another complex corner of the web-of-international manipulations of money, which while getting a considerable amount of attention as the harbinger of financial doom, is nonetheless, often quite opaque to the general public. Under the lid of that “barrel dollar” is yet another rats nest of conflicting information which alludes to one thing [reserve status]while ignoring the deeper factors which contributed to the false notion such a status was a benefit to any ordinary tax paying American. Pricing oil in dollars allows the export of inflation— dollars must be removed from the system– or the domestic system begins to be flooded by dollars with nowhere to go. Or so it is broadly asserted, but the truth as always is never that simple.

—–“pet·rol (pĕt′rəl) n. Chiefly British Gasoline.—-

—The petrodollar system originated in the early 1970s in the wake of the Bretton Woods collapse. President Richard M. Nixon and his Secretary of State, Henry Kissinger, knew that their destruction of the international gold standard under the Bretton Woods arrangement would cause a decline in the artificial global demand of the U.S. dollar. Maintaining this “artificial dollar demand” was vital if the United States were to continue expanding its “welfare and warfare”spending. In a series of meetings, the United States — represented by then U.S. Secretary of State Henry Kissinger — and the Saudi royal family made an agreement. According to the agreement, the United States would offer military protection for Saudi Arabia’s oil fields. The U.S. also agreed to provide the Saudis with weapons, and protection from Israel.

–The agreement included:

–1) The Saudis must agree to price all of their oil sales in U.S. dollars only. (In other words, the Saudis were to refuse all other currencies, except the U.S. dollar, as payment for their oil exports.)

–2) The Saudis would be open to investing their surplus oil proceeds in U.S. debt securities.

–By 1975, all of the oil-producing nations of OPEC had agreed to price their oil in dollars and to hold their surplus oil proceeds in U.S. government debt securities in exchange for the generous offers by the U.S.[3]

Simply put: the US fiat dollar is the only credit currency allowed to do large scale purchases of oil. Note the language —“artificial dollar demand” was vital— as any demand upon a commodity is the primary force of its profitability. To sell a dollar at a higher price then borrowed is still just another quality of arbitrage. Selling this idea to the public was not unlike that bit about “nuclear power plants will reduce the cost of electricity so cheaply it won’t have to be metered” [as remembered from an encyclopedia entry pre-60’s] while the actual truth was actually quite sinister–war material for the atom bombs so produced, allowed the waste product ‘electricity’– to be so sold to the public and at a cost which has never gone down for a second, plus, all of the other additional hidden costs which are so exponentially negative no amount of money can re-buy the previous peace of mind or radioactive lands.

But this need for a profitable ‘Artificial Trade Dollar’ was not the whole of the story.

—–“The dollar has been nothing but a confidence game since the senate ratified the Bretton Woods monetary treaty in 1945. Right from the start, there were more paper dollars in circulation than gold to back them at the fixed price of $35/oz. As seen in the table, and the charts below, the gold held at Fort Knox provided no protection against monetary inflation for people forced to use Federal Reserve Notes in their daily lives.

—–[The Bretton Wood’s Monetary Accords instituted a $35 Dollar an ounce Gold Standard. This Standard was to prevent the United States from Printing more than $35 Paper Dollars for Every Ounce of Gold it Held in the US Treasury. History shows that the American Politicians never took the BWA’s $35 / 1 Ounce of Gold Standard Seriously. This is the Root Cause of today’s Current Debt Crises]—–

–During the Truman administration, $35 dollar gold was already a fiction passed off on the gullible public.

“Paris – The Paris gold market is worrying the U.S. Treasury. In recent months, the free gold price has been 20% to 30% higher than the $35 an ounce: dollars are therefore, cheap in terms of gold. To depress the gold price, the French treasury has been selling gold for dollars. Having acquired the gold from the U.S. or through the European Payment Union, at $35 an ounce, it (France) reaps tidy arbitrage profits. Although the French support the dollar, our Treasury resents the way they have turned the gold market into a source of dollar gains.”
– Barron’s World at Work Column: 29 January 1951

——The above case against the post-World War 2 American-political class is not hard to make. The facts have been published weekly in Barron’s statistics for decades. All one has to do is look at the US Treasury’s CinC and gold-reserves data, and read a few historical books on the subject to assemble the pieces of the puzzle together. The genesis of our current debt and credit difficulties can be traced to World-War One, a war that knocked the world off the gold standard, and the post-war attempt to restore the British pound to gold backing at its pre-World War One value.

–Prior to WW1, money was non-political. Paper-money and unrestrained credit inflation were universally recognized as a pernicious moral hazard. Prewar American labor leadership was strongly pro-gold too, just as most people were one hundred years ago, as they clearly understood that unchecked expansion of CinC and credit creation were acts of predation on honest commerce and labor. So, the prewar political class didn’t reward their cohorts with paper money un-backed by gold, and banking systems were mindful of expanding credit past the point of prudence for fear of runs on their depositors’ gold. Gentlemen refused to do that, because gentlemen didn’t want to go to jail! But the “Guns of August” 1914 put an end to all that, as the war was largely financed with the printing press. Had all belligerents been forced to increased taxes to finance the war, rather than using currency inflation and credit, this horrible war would have been over a lot quicker, and the US may not have entered it at all.

–After World War One, years of paper inflation had left the European industrial nation’s currency unredeemable in gold. This proved to be the first of a series of 20th century gold defaults. In 1933, the US Treasury not only refused to redeem Federal Reserve Notes held by US citizens for gold, but the US Department of Justice promised to sent American citizens to prison if they refused to hand over their gold to the US Government. From 1933 to 1974, 18 carat gold jewelry, purchased in the United States, came with a prison sentence! *Gold had no part in financing World War Two. Like WW1, it was financed by credit and currency inflation. Post WW2, Bretton Woods implemented a quasi-gold standard where international trade would be settled in the new “reserve currency”: the Federal Reserve Note (aka the US dollar), but left the option open for central banks to redeem their US dollars for US gold. But in the charts below, we see why in 1971, Nixon defaulted on this last linkage of the dollar to gold, because since President Eisenhower, the US Government continued to issue more paper dollars than they had gold to back them.

*[I am puzzled this author did not study the blistering denouncement made by congressman “McFadden”  explaining in crisp detail how American gold DID in fact head to Europe to do whatever those elites wanted, including more warfare around the globe.]

–So post WW1, both the UK and US (and the rest of the world) saw consumer prices soar as a result of war-time inflation. In 1919, the Bank of England took the pound off the gold standard. But had the US demanded gold in payment for war material from 1914-18, Britain would have exhausted its gold supply soon after the war began. In retrospect, allowing the gold standard to lapse for the duration enabled this destructive war to go on for four-bloody years, created the conditions for the rise of communism in Russia, and national-socialism in Germany, as well as pushing the world’s monetary system into an inflationary spiral that continues today. Monetary inflation has never been a blessing to mankind.

–The 1919 fiat pound was a major embarrassment to the nation that created the gold standard. As Ron Chernow put it:  “Like king and country, the gold standard was an abstraction that made British bankers feel smug and cozy.” Ron Chernow, House of Morgan, pg 274.

–As they had after the Napoleonic wars, the UK could have contracted the money supply by withdrawing paper currency from circulation. But that would have deflated prices, wages and asset valuations as the economy slipped into a deep recession. In 1919, the British establishment had no more stomach for a post war depression than did the troops returning from France. They also could have devalued the pound in terms of gold, as America did in 1934. Instead, for reasons of national pride, British “policy makers” in April 1925 chose the third alternative of ignoring the war-time increases in paper money, and attempted to return the pound to its pre-war level of 4.86 pounds per ounce of gold.

–It’s at this point where we see the 20th century’s first quick-fix to a monetary, economic or social problem, by using the American dollar as a tool of “policy.” Everyone knew a run on English gold would occur if the pound was fixed to gold at the pre-war rate, as runs on monetary gold had always come about when monetary authorities issued more currency units in paper than they had gold to redeem them. This was the precise situation the Bank of England found itself in after the war, and everyone knew it. This fear of gold runs is actually an essential feature in the pre-war gold standard. Runs on a nation’s gold supply were a built in safety mechanism of the gold standard, designed to prevent the over issuance of paper currency and excessive credit expansion.

–Historically, public disgrace and risk of imprisonment of monetary officials are the only mechanisms proven to be effective in preventing politicians and bankers from inflating the quantity of paper money in circulation past the point of prudence, and expanding credit to infinity. It is for this reason that the powers-that-be hate gold-as-money, as gold-as-money is the only real effective check on the political elite’s obsession for more power and control over society.

–Cutting to the chase (making a long story short), the monetary machinations of the 1920s inflated a massive bubble in the world’s financial markets that ultimately resulted in the Great Depression in the 1930s. This was the first episode of a repeating pattern of official-level manipulation in the financial markets that to this day, has created more problems than the “best-and-the-brightest” have solved.

–“Where would we be if we had I.O.U.’s scrip and certificates floating all around the country?” Instead he decided to issue currency against the sound assets of the banks. [As opposed to issuing currency against gold.] The Federal Reserve Act lets us print all we’ll need. And it won’t frighten the people. It won’t look like stage money. It’ll be money that looks like real money.” [Emphasis added.] (Source: ‘Closed for the Holiday: The Bank Holiday of 1933’, p20 – Federal Reserve Bank of Boston) quote from Larry Parks.

–Below is a chart showing CinC and US gold reserves from 1925 to 1975. The SECOND RUN on US Treasury gold began in 1958 during the Eisenhower administration, because the “policy makers” continued to print “MONEY THAT LOOKS LIKE REAL MONEY” until the real money that looks like gold began fleeing the United States Treasury. http://www.bullionbullscanada.com/guest-commentary/mark-j-lundeen/21934-nixon-isnt-the-only-reason-the-us-closed-the-gold-window

The common theme, that runs through all of this scheming, where gold is always in some way, at the center of the plotting–is of course war. War and debt are the tools of tyrants looking to make more blood-money… but as important as gold is to them… it is the debt attached to those profitable Bonds which suck the dollars out of taxpayers in a manner that is really damn evil. War vultures can make no money during times of peace and so peace has to be banned as NO good for dollar profits.

—-“Via Zero Hedge, GoldCore points out that “the U.S. dollar has fallen from 1/35th of an ounce of gold to 1/1750th of an ounce of gold today” and warns that hyperinflation will be the result of the dollar’s long divorce from gold:

–Historically, currencies were based on precious metals such as gold or silver, but fiat money is based on faith and on the performance of politicians, bankers and central bankers.

–Because today’s fiat money is not linked to physical reserves of gold and silver, it is becoming worth less with each passing month and risks becoming worthless should hyperinflation take hold.

–If people lose faith in a nation’s paper currency, the money will no longer hold value.

–Throughout history most fiat currencies have not survived more than a few decades and have succumbed to hyperinflation.”—–

[Note the common basic facts which are repeated that the credit dollar is a creature of Faith [In God We Trust] and that it is only valuable because people have such faith, which is of course contrary to its actual purpose of Value: To make more money for the money kings.

The question never posed is what kind of money are these bastards really MAKING as a form of monetary alchemy– to which only those so included in the Ultra-elite circle actually understand. What is sold on the open markets is just the tip of an iceberg well hidden by laws of secrecy:  political, social and otherwise. That blob of silly putty you receive as an artificial dollar is NOT the end of the process, but just one phase of a much longer cycle, where the mass-concentration of that precious debt-honey only hits the Elite Buckets.

The mass consumer has been paying a Premium on all of that “Perpetual Debt” which is well hidden by the complexities so produced to hide the simple truth: The real costs of the goods and services on any Market is substantially greater by an enormous factor, which might be deduced from the aggregates of losses so suffered, plus the costs so paid. What was lost to the purchasing power was but a sliver of the Elites gains by all of their predation upon the world at large. They have “Multi-Trillions” in financial excess not just because they own outright the “debts of nations” but also the very mechanism by which the debts themselves are measured. Since they own the flexible ruler, they own the measure by which all others are judged… LIBOR rates being the favorite method in the public medium, but NOT the only one.]

—–“In fact, the gold standard that is so deeply missed was quite short-lived and never sustainable, Marc Chandler at Brown Brothers Harriman writes today:

–Since nearly the day it died, there have been policy makers, investors and academics who have called for a new Bretton Woods. It is perfectly understandable. The macro-economic performance under Bretton Woods was remarkable. Real per capita income growth throughout the industrialized world was higher than during any monetary regime since 1879, according to Anna Schwartz, Milton Friedman’s co-author to the landmark “A Monetary History of the United States”. Inflation and its variability and persistence were low. Nominal interest rates were low and stable.

–Less examined is the link between Bretton Woods and the superior macro-economic performance. Surely, there were other factors and forces that contributed to the favorable economic outcomes besides international monetary regime. These include the reconstruction after the war, the deploying of technological advances accelerated by the war effort, the unleashing of pent-up consumer demand[after the war], vigorous labor movements[continuing the war productions?], and low commodity prices, including oil.

–Bretton Woods is exaggerated in another way. Although the agreement was struck in 1944, it did not really become operational until 1959. That means in practice, it lasted a dozen years. Moreover, within years of its launch it became under increasing strains and increasingly it was understood not to be sustainable. [The crooks had run out of gold to steal perhaps?]

–Contrary to popular misconceptions, Bretton Woods was not a fixed exchange rate system. It was designed as an adjustable peg, but politicians were reluctant to make adjustments, often for domestic considerations. A speculative attack or financial crisis often seemed necessary to provide a sufficient spur.

–In addition to the unintended rigidity, Bretton Woods was also vulnerable because only the U.S. dollar was required to be convertible to gold*. In this the French Gaullists and the American policy makers were in agreement. U.S. national self interest would make it reluctant to supply its gold to the rest of the world. The French economist and advisor Jacques Rueff saw this as did Robert Triffin (who spent some time at the Federal Reserve). Neither saw Bretton Woods as a sustainable order.

[Here is but another small detail that has a long root going back to how the federal banks looted the American people… they bought anything they could find in dollars which their cohort’s would then turn around and redeem in gold. This mind-boggling easy scheme only worked precisely because the Foreign purchaser was NOT required to settle in their own paper Notes. This lop-sided arrangement was absolutely fantastic for the looter, speculator and arbitrage gainer and absolutely a rotten deal for the savers in America.

Imagine if the people had been able to SAVE their real money from those days to this one, un-molested, un-watered, un-diluted, undiminished, as the basis for their financial security and not some elite slime-ball gambling away the savings of the working classes. That is another hidden loss never questioned, or even brought up out of the darkness for a mild discussion. Just use a simple contrast of Value: a single gold bar[one-pound] purchased from 1913 versus the dollars needed to buy that Bar pound today.  Keeping it very simple that Bar cost in 1913 @20.00 x 16 ounces $320.00 versus  $20,836.80 @1302.3 per ounce for that same Bar. Roughly a difference of 65 times greater,or a loss of purchasing power depending on which side of that empty glass you prefer to judge.

The decoupling of the artificial dollar to gold simply masks the deflation those pointy-headed economists dismiss with a wave of their rubber yard-stick. Looked at from a slightly different perspective; the consumer pays 65 times more for those  “goods” and earns 65 times less to add injury to insult. Who benefits from such a ridiculous absurdity of steaming BS?

Well, it certainly is not the consumer, the worker or the saver, who is simply wearing three-hats as one… and naturally, as a taxpayer pays by his sweat of labors for the Bill of such excesses even now compounding into infinity. It wasn’t enough to simply steal the Peoples money…. no they had to charge the People for the privilege as well. Yes, it is a privilege to serve those money fiends, er Lords in all that they desire… and boy do they desire more and more… why there is no end to the madness of their desires, or the schemes by which they are realized, at the cost they so fix on the rest of Humanity… and if they do not get their way they simply destroy even more of your worthless, artificial money in ANY way they deem fit. They might just very well burn one-ton bundles of that worthless cash to heat their party mansions and still have enough left over to buy the peons life at a steep discount and sell it again for a bloody profit. When you own the game the Rules are yours to twist and turn any way you want—- what do the common peons know of such matters except what they are told by those very well paid flunkies blithering incessantly on that big screen TV.

And on that note the article continues on that very point:

—-Mr. Chandler believes the story of our current upheaval is less about the gold standard and more about the gradual shift in global power away from the US:

–What made possible the Gold Standard of the 19th century and Bretton Woods was that one country, Britain and the United States respectively, had sufficient power to enforce an international monetary order. [Which they also destroyed at will]

–The distribution of political and economic power is in flux. This is after all part of the significance of the rise of a couple dozen emerging markets and especially China. A new financial architecture would institutionalize existing interests and power relationships. It does not seem realpolitik for China, for example, to accept a new institutional arrangement when trends suggest so strongly that it will have more global economic gravitas in 5 years and 10 years than it does today. Yet, it does seem in its interest to harangue about the current order.

–This is one of the unexpected tragedies of Bretton Woods. At the end of WWII, the terms of a new international economic order had to be addressed for practical as well as ideological reasons. It could do nothing but reflect the power relationships at the time, but they were not sustainable in extremis.

—–“Michael Engel wrote :

–Those who advocate a return to the gold standard have no sense of monetary history. Whatever the short-term benefit of sudden spikes in its price to individual investors who bought at the right time, a currency backed only by gold has been a deflationary disaster for working people, and the cause of numerous financial panics. Attention gold bugs: Read some books about financial issues in 19th-century America. Start with the Depression of 1837, and read on to the populist movement of the 1890s.

–Thank you, Mark Gongloff, for your intelligent analysis of the issue.”

–While the U.S. still has a preponderance of power, the economic and political crisis has weakened it.”—–http://blogs.wsj.com/marketbeat/2011/08/15/gold-standard-forty-years-gone-and-good-riddance/

 

Boiled down to the essential fact is this: Who owns the gold owns the power of its use. Thus, it is a  cruel demonstration of that POWER in Action which results in its Policies, across the international stage, which in turn controls the paper illusions, of which are but a shadow of that power. Holding debt is that power of the Master over the borrower. When the U.S. went from a creditor to a debtor on that “realpolitik [ 1. (Government, Politics & Diplomacy) a ruthlessly realistic and opportunist approach to statesmanship, rather than a moralistic one, esp as exemplified by Bismarck] international stage” this was just another sign, that the owners of America were not getting the profits they expected, so they simply changed the rules, yet again, to fatten their wealth holdings elsewhere.

Part of that global strategy obviously meant the U.S. was about to have that carpet yanked once again, out from under our economic feet, in order to use that artificial dollar so coupled with oil, to squeeze even more profit in the global exchanges of money itself. Buried back in the deep dark corners are still the same old rats looking for another meal. The debt market is their pride and joy and they own it like any other wealth producing asset. Their Gains is the peons loss.

Just as the British banking syndicate was forced down the American people’s throats, so too was the next wrinkle to be deployed in the  Treasury House:

—–“In early 1929, J. Herbert Case, the Deputy Governor of the Federal Reserve Bank of New York, journeyed to London to study the British Treasury bill market. The study, undertaken at the behest of Under Secretary of the Treasury Ogden Mills, was intended to clarify whether the British system of issuing bills could be adapted for use in the United States.44 Upon his return, Case filed a report describing the British system (Box 2) and recommended that a variant of the system be introduced in the United States.45

Case’s plan had four major provisions:1) Treasury bills would be auctioned rather than offered for sale at a fixed price. He pointed out that “Competitive Why the U.S. Treasury Began Auctioning Treasury Bills in 1929 bidding . . . might be expected to enable the Treasury to get the lowest discount rates consistent with current market conditions; it would not be necessary for the Treasury . . . to offer interest rates on new issues above current market rates.”

2) Bills would be sold when funds were needed.

3) Bill maturities would be set “to correspond closely to the actual collection of income taxes, and not all made to fall on the nominal date of tax payments as at present.”

4) Sales would be for cash, instead of credits to War Loan Deposit Accounts.

Point by point, these provisions would cure all of the existing flaws in the structure of Treasury financing operations. Case’s plan set the framework for the introduction of a new instrument to American financial markets.4

—–[British bills were auctioned weekly—on Friday, for settlement the following week—and matured three months later. Bidders submitted tenders that specified a price and amount as well as a settlement day sometime during the following week.

Treasury officials sorted the tenders by settlement day and accepted proposals for a given settlement day in order of decreasing price until they had accounted for all of the funds needed to be raised on that day. Successful bidders paid for their bills with drafts on the Bank of England, that is, with immediately available funds.

The British system of bill financing—particularly the daily emissions and maturities—fitted nicely with the British income tax system.

Although there were dates when taxes were nominally due, revenue officials had considerable discretion to arrange for alternative payment dates, so that payments did not all come in at virtually the same time.

This ability eliminated any possibility of large, sporadic drains of reserve balances from the banking system and, taken together with the process of bill financing, made a system like the American War Loan Deposit Accounts unnecessary.b—]

–“The U.S. Treasury began auctioning Treasury bills in 1929 to correct several flaws in the post-war structure of Treasury financing operations. The flaws included underpricing securities sold in fixed-price subscription offerings, infrequent financings that necessitated borrowing in advance of need, and payment with deposit credits that gave banks an added incentive to oversubscribe to new issues and contributed to the appearance of weak post-offering secondary markets for new issues.

–“All three flaws could have been addressed without introducing a new class of securities. For example, the Treasury could have begun auctioning certificates of indebtedness (instead of bills),62 it could have begun offering certificates between quarterly tax dates, and it could have begun selling certificates for immediately available funds.

–“However, by introducing a new class of securities, the Treasury was able to address the defects in the existing primary market structure even as it continued to maintain that structure. If auction sales, tactical issuance, and settlement in immediately available funds proved successful, the new procedure could be expanded to notes and bonds.63 If subsequent experience revealed an unanticipated flaw in the new procedure, however, the Treasury was free to return to exclusive reliance on regularly scheduled fixed-price subscription offerings and payment by credit to War Loan accounts. The introduction of Treasury bills in 1929 gave the Treasury an exit strategy—as well as a way forward—in the development of the primary market for Treasury securities.”

–“Allowing banks to pay for securities with War Loan Deposit Account credits did not benefit either the Treasury or the banks. The Treasury gained by being able to issue securities to banks at a higher price than the general public was willing to pay, but earned only 2 percent on the proceeds left on deposit with the banks. Banks gained from accessing cheap Treasury balances, but lost when they sold certificates to nonbank investors at prices below par. Nonbank investors neither gained nor lost (as long as they waited to buy securities in the secondary market). The principal consequence of the scheme was a primary market increasingly limited to banks and opaque to the general public.”—  Kenneth D. Garbade (July 2008). “Why The U.S. Treasury Began Auctioning Treasury Bills in 1929”. Federal Reserve Bank of New York, Vol. 14, No. 1. Retrieved 2011-04-27.

–“The problems with debt issuance became apparent in the late-1920s. The system suffered from chronic over subscription, where interest rates were so attractive that there were more purchasers of debt than supplied by the government. This indicated that the government was paying too much for debt. As government debt was undervalued, debt purchasers could buy from the government and immediately sell to another market participant at a higher price.

That is arbitrage in a nutshell… and across the pond:

Courtesy of Wikipedia

United Kingdom
Punch cartoon (1907); illustrates the unpopularity amongst Punch readers of a proposed 1907 income tax by the Labour Party in the United Kingdom.

Main article: Taxation in the United Kingdom#History

One of the first recorded taxes on income was the Saladin tithe introduced by Henry II in 1188 to raise money for the Third Crusade.[7] The tithe demanded that each layperson in England be taxed a tenth of their personal income and moveable property.[8] However, the inception date of the modern income tax is typically accepted as 1799.[9]

Income tax was announced in Britain by William Pitt the Younger in his budget of December 1798 and introduced in 1799, to pay for weapons and equipment in preparation for the Napoleonic wars. Pitt’s new graduated income tax began at a levy of 2d in the pound (0.8333%) on annual incomes over £60 and increased up to a maximum of 2s in the pound (10%) on incomes of over £200 (£170,542 in 2007). Pitt hoped that the new income tax would raise £10 million (£8,527,100,000 in 2007), but actual receipts for 1799 totaled just over £6 million.[10]

The tax was repealed in 1816 and opponents of the tax, who thought it should only be used to finance wars, wanted all records of the tax destroyed along with its repeal. Records were publicly burned by the Chancellor of the Exchequer but copies were retained in the basement of the tax court.[11]

And some interesting points so raised by those now suffering under that war connected taxation:

—–“It is obvious that Income Tax is an immoral tax in that it is far too much in % taken from our labours. And like other readers have said, it is used to kill our worldwide brotherhood around the globe. And as I see the Bible quoted in the 10% tithing…..we all have to wake up and see, there is no Christianity left in our lands, not really. Our leaders are mostly athesist, some have a pretence of Christianity, but it’s all white graves that contain dead mens bones. There actions belie their religious rhetoric. Having said this, many people don’t bend to a religion and yet behave BETTER than some of the so called Christians who are satanic and evil, nothing more, nothing less.

We currently in the UK have a 20%, 30% and 50% income tax the latter being for people who earn in excess of £150,000 per year. The whole system is chaotic, juvenile and quite honestly
decided upon by the elite who control the rich and privileged people who are in the government, who know not one jot about the common man, or neither do they care.

Why should 2% of the worlds population, OWN  80% of the worlds wealth?

Income tax is an evil tax weighted on a people, just like the Pharisees of Biblical times, who would weigh the people down with law upon law, ….. And now in England we have a Gestapo type of government who want every last penny wrung out of our pockets and every last drop of blood squeezed from our souls. They will have neither of mine, so long as I can muster up the strength to resist.”— Maggie (22 August 2012)

Now, the point is this. From the information in that article you will comprehend, I’m sure, that the actions of the U.K. Government, in waging war in Afghanistan and Iraq, causing the deaths of innocent civilians are illegal in law. And they constitute the crimes of genocide and a crime against peace. And that the actions of British taxpayers, in paying taxes to HM Government, which uses them to finance the war and the killing of Iraqi nationals, constitute crimes of ‘conduct ancillary to genocide’ and ‘complicity in a crime against peace’.  Veronica Chapman 17 April 2009                   https://www.whatdotheyknow.com/request/is_income_tax_legal

By now it must be painfully obvious that the need to pay for war is the primary reason to affix its costs to the bearer of the tax so imposed. To pay for war is the only reason an Income Tax was ever placed upon the Statute Books and enforced by what-ever means necessary by the Agents of its acquisitions. How much money has been wasted on war is only dwarfed by the costs of lives lost and properties destroyed for a bloody profit. If the profit of war was not so substantially increased by the Debt of its use, war would have ceased to be as the number one investment of time or money. Spinning the truth is what the media moguls earn their fortunes doing, at a handsome profit for every lie so sold. Every Market is warped by the influence of the never-ending warfare raging around the globe, propping up demand as a consequence for the reserve dollar to fulfill. The war dollar has been a smashing success for the winners in their fancy party mansions and a deadly loss for those who pay its Toll. That would be blood, sweat and tears in no particular order.

Having ransacked America, down to the bone, the ugly truth is that there is no way in hell the general population can continue paying, an ever greater premium upon the vast untenable Debt. The inability to pay off that monstrosity is actually the reason for the weakening trade dollar, which the pundits wring their collective hands over. Every dollar in existence is borrowed by that fabulous arrangement so foisted on the Peoples treasury, and is exported by any number of mechanisms, especially the black-market cash drug Trades so socially engineered to remain cash dogs on a federal leash. Economists rarely even speak on that form of inflation exportation… they no doubt do not dare admit it is purposeful by policy at the highest levels. Without the prohibition causing false scarcity,  most of the drug trade would collapse as prices came back down to reality thereby, driving drug lords out of business. Telling the public drugs are bad is classic Madison Avenue propaganda turned on its head… as rebel youths do the exact opposite of what they are told by authorities. Every dollar sent out of the country is still earning that golden interest, while diminishing circulation, propping up that dog-eared value which otherwise would have long since turned back to fairy dust.

Imagine the opposite function, where Americans were producing a natural substance, called “Good Feeling” which was so popular foreign currency was being hauled into America by the semi-truck, in waves of thousands per hour. This currency would need to be exchanged for the dollar, and as a consequence more foreign currency would be buying less dollars in the classic over-supply channel ratio… Americans of course would be parking their cash into the banks at a rate of billions per month, where those very same dollars would be canceling out the debt in ever greater proportions. Why those Bonds would shrivel up in hurry and cause diminishing returns no doubt raising a big stink in one of those fancy board-rooms or private parlors as the big-wigs lost money on that debt. The big wheels of policy would soon start to spin in great fury to chastise the evil Americans supplying that “Good Feeling”  to the consumers around the world and the Laws would soon reflect the power so erected to squash such undertakings, leaving Americans to go broke once again.

The deeper ugly truth is any profitable ventures that actually succeeded in rising up the wealth of the American people, outside of the control of the money vultures has been destroyed by whatever means necessary.  Every law on that Statute Book exists solely to ruin the chances of an honest man to succeed in his own financial independence.  The rules may be couched in laborious technical clap-trap, but the pattern is right there to be seen. While the demise of the artificial dollar will indeed cause yet more suffering, it is quite vital that the people do not lose sight of why these damning consequences are always hanging over our collective heads. And as the brief comments from over the pond illustrate, we are not alone in that wretched boat of commerce which is made of string and rotted wood for the people, while made of gold for the Elite. They have no need to change the system unless they want more war profits and the powers such profits wield in every society they seek to control.

And the most damning truth of all: They make more money from people dropping dead in the streets than from a productive peaceful society, where prosperity is the norm not the shadow. The international syndicate which has a death grip upon the nations of the world is going to squeeze the last drop of blood from the corpses so rent. By that time America will be nothing but a ravaged wasteland, laid bare to rot and misfortune.

If the People want a different future they had better start listening to those few who do not speak for the money masters. By understanding the roots of the malaise, only then can one really see how to solve its disease.

Money cannot come from bankers period.  If currency is to be nothing but fiat, it has to be issued from the Peoples Treasury, non-interest by the Law and defended by the measure of its use. The Unit of Account is Silver. The labor Unit has to be in parity to that Constitutional Unit as nothing else will save this nations ass from destruction. The sooner this is accomplished the safer that future becomes. Gold is the natural constraint, by which the Saver is defended from the predation of banking and government evils. When these two are in natural harmony peace is the result. Let the people decide for themselves which path leads to their most productive result.

Ending the Income tax is counter-intuitive to the goals which need to be reached. Corporations cannot be treated as anything but business ventures, which can only be restrained by the Rules from which they are Chartered. Everything else is an illusion to fool the public. If governments cannot perform under the constraints of genuine money, they are useless to the People, to whom they serve and ought to be abolished accordingly.  Gone is the day such institutions can operate with impunity for having soiled that Constitution, by such evils known to man, there is nothing of them worth saving from themselves.

Our Country deserves better and if people say otherwise… why listen to them either.

 

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