Friday, December 11, 2009
Letter to Senator Max Baucus
Tuesday, September 15, 2009
Why Wall Street Hasn't Changed, and Why Obama Can't Fix It
The problem with any form of government is the fact that the majority of the constituents are stupid. I am not talking about any party or belief set, but just the general ignorance of the populous.
Capitalism will always turn to corporatism in this country. Progressive liberalism will always lead to dictatorial oppression. Why? Well, because Americans have grown uninformed whether by choice or life circumstances. The poor and ignorant are attracted to the fringes where Van Jones and Alex Jones prey on people. They are so focused on Jon and Kate instead of the news. And the Americans that do watch the news in passing on the major outlets never hear what is going on.
Arianna Huffington and Rep. Ron Paul appeared together on MSNBC this morning. Arianna and Rep. Paul are absolutely correct in saying that nothing has changed when it comes to the bankers running this country. These bankers WANT me and you to fight and rail on ACORN, Beck, and Rep. Wilson and slam each other while both sides confiscate your entire worth through inflation, taxes, and interest payments. While taking on corruption is important and shouldn’t be dismissed in any way, we should always focus on the big picture; the real power.
Why are we stupid? Because we buy cars and pay them off over 5 or more years. People making $70k owning BMW's and $250k homes. It's the plastic. Charge it, baby!
Our country is under an illusion of wealth. They keep us spending money we don't have. We don't contribute to economic stability by saving. We spend recklessly on credit and because of the way we view credit as a nation (no thanks to our Government's example), we skew the supply and demand curve by willingly paying too much for something, like a $500 cell phone. We don't revolt on gas prices because we can charge it. We don't revolt on taxes because we get "refunds". If you don’t know you are being robbed, or just apathetic, then these money brokers get their way.
The only way to stop the coming economic doom, and you haven't seen anything yet, is to go to a real money standard. Yes interest would be 25% for everyone with good credit, BUT, people would be forced to live within their means (and use REAL collateral) and banks would have to be more selective on whom to loan limited funds, like small businesses instead of broke consumers who want iPhones and flat screens.
The true solution is, unfortunately, that we go ahead and take the big hit. Abolish the Fed and return the money to the people. Let us correct the economy all at once and suffer now so our children can be free. Yes it is true, we won't be able to fight unnecessary wars and fund ridiculous programs, but I promise you the quality of life would improve and taxes for everyone would be much lower and prices would be lower.
If you don't believe me, I am 34 and I remember when I was 6 I saw my first $100 bill. My dad's friend had three of them. It was amazing. It was such a sign of being a have and not a have not. And now that same bill is the new $20 Bill. Now if you kept that $100 bill for 30 years and found it now it had the same spending power $35 did then, you would realize that $65 disappeared.
Where did it go? It was robbed from you by the banking system and our precious Government. The Government wants inflation to happen. Why? Because then it devalues the debt and pays it down easier, but what most people don't realize is that it is really a hidden tax to fund the Government, and moreover, a hidden tax on savings.
So let's calculate. The actual inflation from 1980 to 2008 means your $100 is now worth $35.
If you put that in a regular savings account that earned 2.5% over the same time your balance in 2008 is $270. With the same inflation calculation your $100 plus $170 in interest has the spending power of $71 after saving it for 28 years. That is a 64.5% tax that you paid on that $100 for saving it after earning less than exciting interest. And you already paid a high tax on it in 1980 (which had higher taxes than now).
Now let’s say you had a kid in 1990. At that time you put away $5,000 for your kid’s college fund at higher interest in low-risk, let’s say 3.5% interest, which may be conservative, but still…The value of that investment would have been worth $5,700 in 2008 in 1990 dollars. Yes, 18 years of savings in a typical premium savings account would have netted you about $700 when adjusted for inflation! The sad part is that now it is worth $9,400, but money lost 40% of its value in 18 years! Not to mention the fact that you likely paid about $1,500 and $2,000 in state and federal taxes on it before it was even deposited into the bank!
That money went to the government and the Fed (Wall Street). Because when they print money, that makes each unit of currency worth less. It taxes your savings account (via inflation) and you never see it. Mean while the bank where you kept that money made thousands and thousands of dollars off of your deposit along the way.
This isn't an easy concept, and if you read this you are probably smarter than 75% of Americans, and because Americans never see their future taken from them by a corporatist government, they don't seem to care. The worst part is that because they are robbing form us they then provide "services" to take care of us at a pittance for what they took. It’s basically hush money!
If Obama was the Hope and Change then why did he hire Wall St and decide to let the Fed run his administration?
Come together America. it isn't about partisan politics. It's about FREEDOM and LIBERTY.
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Monday, June 8, 2009
California and a New Flat Tax?
California
So Arnold Schwarzenegger, the “Republican” Governator of the Socialist State of California, has mentioned a 15% flat tax in California on top of everything else, and is even now beginning to discuss the abolition of the state welfare program. People in California who don’t work or who are not Americans are livid. Can you blame them? They are afraid they will have to pay their fair share of taxes!
Fifteen percent on the state level is ridiculous (currently it is around 9%, much higher than the national average), especially considering the income tax of 25-40% (rounded) on the middle and upper classes. That is going to increase significantly as well under Brack Hussein Obama of Kenya (at least for the highest bracket in the near future), the capital gains tax will more than double, and not to mention some of the highest state sales tax rates in the country. Also there is about thirty percent of product cost in embedded corporate taxes on all purchases (national average according to FairTax advocates), and the near eight percent payroll taxes we pay from our checks and the same amount the employer pays (which if one considered thoughtfully, is a cost of employing someone and is inherently considered when making salary and raise offers therefore ultimately paid by the employee). So when a taxpayer who makes $50,000 per year holds a dollar in his/her hand that dollar has already been taxed around 85 cents. And that 85 cents came from that person’s pocket. That’s tough for a non-economist to grasp, but it is a sad reality.
Do Californians not realize that the Governor doesn't want to raise taxes? It's because all of the uneducated people who want free stuff and services constantly demand them vote on props to get them started but expect only the rich to pay for them. This is defined as a democracy. Thomas Jefferson once said:
“A democracy is nothing more than mob rule, where fifty-one percent of the people may take away the rights of the other forty-nine.” Thomas Jefferson
Don't they realize that even their top 25% of income earners cannot even to begin to pay for these programs? California needs to learn about something called a balanced budget. They want to spend money they don't have. When the rest of us as individuals do it, it is called BANKRUPTCY. Arnold tried to cut government spending but Californians balked and said NO!
What is he supposed to do? He can't spend more, he can't cut spending, and he can't raise taxes.
Where is this governor supposed to get money? Should the taxpayers from the other 49 states have their taxes increased to pay for California's excessive spending?
Even Reagan had to raise taxes when he became governor to balance the budget; he only raised them to pay off the State's deficit.
People all over the country are in awe of Californian's lack of understanding that you have to have money to give handouts. The funny thing is many of these rich Californians are still there. Their wealth has already been taxed at the point of income. Many have stopped earning though. The problem is that the middle class is leaving in droves.
Why not? Sunny beaches and the tropical life can be found in Florida with no state income tax. Florida is doing well. Georgia is doing well. States with low taxes are prosperous while states with high taxes are facing massive deficits and huge cash shortages. North Carolina is starting to feel the effects of having three of its biggest cities becoming liberal havens. North Carolina is facing a severe fiscal crisis and it is no coincidence that North Carolina went for Barack Hussein Obama of Kenya. So did Michigan, New York, and California. All states in major trouble and most with large union presences.
But who is going to pay for this unadulterated spending? The rich only make so much money, you can't take it ALL. And if you did it wouldn't be enough.
Even if the wealthy agreed to work and turn over 100% of their income to the government; it still wouldn't cover the bill.
The USA should really look at California because we are going down the EXACT path. The GOP needs to wake up because they are so worried about being yelled at and pleasing the religious that they barely realize if at all that they are Obama-Lite.
Lets look at Great Britain. Britain has enjoyed for many years one of the best credit ratings in the entire world. All of a sudden, after Tony Blair left office, Gordon Brown took over and began spending, printing money and forming social programs for the poor and now the British are furious because the Treasury is completely depleted.
Now they are trying to use more spending and printing of money to fix it. And the citizens are OUTRAGED. Nobody in power is lucid enough to consider anything but more spending and printing. Our politicians are drunk with power. The United States is saying the stimulus is working, but it isn’t. Over 165,000 jobs have been created, they say, it took $50 billion for that to happen. That means it actually cost us over $300,000 per job to create each job! Oh wait, one important fact. Almost all of those jobs are temporary summer jobs; many not even full time! In addition, 150,000 full time private sector jobs were lost in May 2009. Also these jobs are for the bottom half of income earners in this country which means they will pay very little if any income tax on those earnings, so the full-time jobs, which created government revenue are gone and replaced by part-time/temporary jobs that will create little government revenue (especially since many are government jobs anyway)---all at a cost of $50 billion dollars.
Thank you BHO of Kenya.
Are you pissed yet?