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|User Info||Well That Didn't Work (European "Rescue"); entered at 2012-07-09 12:41:15|
Registered: 2009-02-28 DFW, Tx
I agree with Leviathan, who says they just hit the wall? What percentage of the 1% are there because there are massive fees to be derived from controlling the pile of debt? Bankers in general? People who draw massive receipts from various government agencies? This is the wall.|
All taxes are theft. None of us would pay them if there wasn't a penalty. I am beginning to believe that debt is what is necessary to replace the demand that government takes out of our pockets. It is clear that some connected people use debt to make a lot of money in an inflationary environment. Are they smart? Maybe, but maybe they are merely riding what the government proposes, connected? How many of the multi-generational streams of wealth around the world, including the US were based on connections within the government?
What hasn't been tried since Woodrow Wilson was elected and likely before is a reduction in the state. Hoover was accused of it, but that was not the case. The Great Depression wasn't caused because Hoover didn't do enough. It was caused by the pyramid of international debt built up by Wall Street and from the World War. Think there isn't a connection now? FDR acted because the bankers were going to lose what they had and end up hanging from light posts. In the meantime, he swelled the state. 1933 kind of coincided with a bottom, not made by the New Deal coming into focus, but by rigging the banking system, making us liable for what they lost, confiscating the gold, which belonged to the depositors. The Great Depression didn't end there, in part because there was nothing done about the overhanging debt and because the government took so much of the economy for itself.
Karl likes to point to the 1980's. This bomb was made in the 1960's with the Viet Nam war and the Great Society. Not that the fuse wasn't lit before, as there were warnings of excess in the 1950's. It was covered up by the progressive tax structure and the gold standard, both destroyed by extended inflation. Anyone believe Reagan made a mistake on tax rates, imagine hamburger flippers in the tax brakets the code of 1954 would have placed them? The tax rate on rents and interest at $200k was 70% and most middle class people today would be in the 50% bracket.
Where is the wall? I think the wall is where the political class won't give up anything, the FSA has to be fed or revolt and the taxpayer finds it more attractive to join the FSA than to continue to work and give it all to the FSA and political class. Greece is a prime example. The state of Illinois is another.
Obama is flapping his lips today. Going to tax the successful people. Blabbers that only 2% of small business makes over $250K. Yeah, and most of them don't hire anyone or they are Amway distributors. He will tax the legitimate and compensate the illegitimate under another smoke screen.
Mish had a post last night on actions in California in regard to cities and their pension liabilities. The taxpayers have had enough. Under this Obama plan, the successful are going to be taxed. Walmart will go on as usual. Wall Street will merely find a new government scam, inflating on government guaranteed money.
For more information on how the nonsense works, read Frank Chodorov's "Rise and Fall of Society"
The corporation president has become accustomed to a
standard of living calling for a certain income. He likes it
and so does his wife. It is true that he has earned three times
that amount and that the State has confiscated two thirds of
his earnings. He resents the confiscation, wishes he could
retain more and thus improve his standard, but finds it convenient
to go along with the State for good reason. Perhaps
his corporation is wholly or partly in the employ of the State;
in that case, his income is actually derived from the taxes he
is forced to pay. It is true that his employees in the aggregate
pay more than he does and, though he has not figured it out,
the probability is that he senses a profit in this allocation of
taxes. Perhaps, if they were not taxed, his employees would
buy the corporation's products as liberally as does the tax
collector, but selling to a multitude of buyers would entail
more sales and credit problems, and for the time being
(which is all he is interested in) he finds it easier to do
business with the One Big Buyer. He hires a lobbyist to do
In these circumstances, the long-termer, the prophet who
harps on first principles and the ultimate consequences of
violation, is a dealer in unreality and an unwanted disturber
of the adjustment. His vagaries may be remembered and his
prophecy recalled when at long last his forebodings have
come to pass. That is, when the restraints multiply to the
point where adjustment leaves little area for living, when a
miserable existence is all that one can get out of one's efforts.
It is then that the primordial instinct for freedom looms
larger than the instinct for life itself and there is nothing left
to do but to throw off the shackles of the State. But that, for
the present, is in the unrealistic realm of the long-term.
The instinct for freedom, the yearning for self-expression
without let or hindrance, is the stuff of which Utopia is made.
Were it not for that element in unscrutable man's makeup he
would never be involved in political matters and his history
would be like unto a history of the jungle. Man, the producer,
must have freedom, while man, the predator, puts limitations
on freedom, and this inner dichotomy is the plot of his life
story. His search for the "good society" is his search for a
denouement. Whether or not it is in the nature of things that
the struggle should go on indefinitely, he cannot help trying
his hand at fashioning a happy ending. And what follows
herewith is simply another attempt at the same thing.
Last modified: 2012-07-09 13:14:36 by mannfm11