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PatriotG
11-03-2007, 05:54 AM
At some point there must be reconciliation over the value of a dollar. Today a dollar’s value is abstract in meaning at best. It has no relation to any sort of backing such as gold or silver. It simply exists as some sort of exchange for goods and services.

The only meaningful value attached seems to be the government’s ability to tax the earned property of the individual. So in order to maintain any constant value taxes must continually rise commensurate with the asking price of the valuables we purchase.

Those valuables in turn incur additional taxes by force of devaluation of the dollar, which in turn is affected by the growing need of social welfare. In order to perpetuate the system, the Federal Reserve pumps more notes of debt, which derive their origin by the need to overcome the ever-growing deficits both public and private. Higher prices mean higher excise taxes by the nature of exposing a percentage of the product to taxation.

In the equation for determining taxes, common sense and mathematics seem to by pass all of us. For those who do not understand the system it is worth repeating that the U.S. Mint prints money but then the government’s role in the process of currency distribution ends. This is because we have turned over control of the money to the Federal Reserve.

An example of how this works would be akin to General Motors building cars and turning the profit margin over to a third party. GM builds a car; the cost to manufacture that car is ten thousand dollars, that is the whole ball of wax for the company. They now turn the automobiles over to a company we will call Financial Engineering Distributors or the FED.

GM has spent $10,000 to build the car; no profit margin is in this figure. Lets add to equation the fact that additional costs of upgrades to equipment and additional improvements necessary to maintain the company are not allowed in the price. GM then sells the automobile to the FED at $10,000 but the actual retail value of the car is $15,000. GM must also give to the FED the additional $5,000 retail price of the car as a guarantee of profit for its distribution operation. GM must borrow this additional guarantee money because obviously they have no profits at all in this equation. The FED lends the money, with interest, to GM to make up the differential between the retail and the manufacturing price. When the FED collects the $5,000 retail profit they keep it since they obviously sold the car and are entitled to some compensation, nothing goes back to GM.

GM has no profits but they must repay at least the minimum payment of debt they incurred by the $5,000 retail guarantee to the FED. In order to maintain their business, which obviously pays the way for workers, you and me, they must find a method to pay this debt. They turn to the workers and tell them, you have to pay this debt or you will be terminated. The workers must acquiesce in order to just maintain a fraction of the pay they receive.

Obviously GM, or for that matter any company, would not make a contract as ludicrous as the above example, there is no benefit derived except to the FED which is a private corporation that benefits from the hard work of GM’s employees and the inept blundering of the executives and lawyers that saddled the company with this absurd contract. This is exactly how our monetary system functions.

I am going to put this as bluntly as I can, the engineers of this system, our monetary system, knew exactly what they were doing. They were and there progeny are ruthless, greedy and self-absorbed individuals concerned only with their own well being, the accumulation of wealth and the power that comes with it. They are evil in nature and care little about the travails of you and me except to make our lives miserable. It is a simple algorithm, the more debt we incur the stronger this band of robber barons becomes.

Our government operates in the same manner as the irresponsible executives and lawyers of the fictitious GM example given here. It has little regard for your well being, while telling you that their actions are based in the all-encompassing ‘general welfare’ fallacy so frequently espoused.

Our representatives in Congress continue to spend in order to please their masters and as a means to maintain a power base whose primary interests are self-preservation and the ‘get even’ mind set ingrained in the socialist agenda. Elected officials perpetuate their life styles and power by living off our hard work and the ignorance of the electorate.

“Most Americans do not spend much time worrying about the national debt, which now totals more than eight trillion dollars. The number is so staggering that it hardly seems real, even when economists issue bleak warnings about how much every American owes– currently about $25,000. Of course, Congress never hands each taxpayer a bill for that amount. Instead, the federal government uses your hard-earned money to pay interest on this debt, which is like making minimum payments on a credit card. Notice that the principal never goes down. In fact, it is rising steadily.” - Congressman Ron Paul

We operate in a surreal environment where common sense escapes the most lucid among us. The issue of taxes seems to be incomprehensible for those who tackle far more complicated problems such as nuclear physics, architecture and computer programming. Each one of these sciences require an in-depth knowledge of mathematics but try to explain the monetary system to them and they revert to the fundamentals that brought them to their vocations. They have arrived at their current state by learning the fundamentals of their industry; ‘if this equals that, then do this, else do this.’

But in the world of economics, basic math was thrown out the window a long time ago. We use a fiat monetary system that fuels itself on feelings and fictions rather than truth and logic. The average programmer cannot negotiate the tax structure because he knows what he has been told and cannot extend his understanding beyond the issue as presented.

However, black and white does not exist in taxation and government operation. As shown in the example above we operate outside the principles of logic that can only lead us to ruination.

PatriotG