This Blog Has Moved!

My blog has moved. Check out my new blog at

Your Ad Here

Wednesday, March 2, 2011

The Federal Reserve and Taxes

Some comments deserve their own separate post.

Anonymous has left a new comment on your post "Federal Reserve Dual Mandate":

Yes! You've nailed it!

How about other common misconceptions, such as:

1) Is Federal Reserve a private bank or a government organization?

2) Does the government really needs/wants your tax money?

True or not? Why?

I am excited to see if you have really cracked your brainwashing, and can actually give a correct answer.

State propaganda is built like an onion, in layers. These layers are opposing each-other, so that those on neighboring layers oppose each-other in their opinions. The majority of sheep just sees the top layer. The others who have different degree cracks in their constructed consciousness are attached to different internal layers and being a smaller part of a whole to begin with, they are further separated from each-other by the fact that their near laying layers are opposing each-other.
For instance the majority of dissenters will remain on level one, and oppose both the prime pareto population on level zero and the other 20% of all dissenters who are on level 2 and below. Layers do not necessarily need to be constructed to go very deep, because even at the level 2 (Counting from the surface: zero, 1st under, 2nd under), there would be only about 20% of 20% of the whole, which is only 4%, and that if everyone on zero was conscious. But since most people on level zero just breath, screw, and watch American Idol, we need to add another 1/5 reduction and end up at about 0.8%.

This is how you build power base and diminish any resistance.

Onion structure of propaganda is the Matrix.
Beware of the onion and consider the proximity of your approximation before you give the answer.

Love reading you.
1. The Federal Reserve Regional Banks are privately owned corporations. The shareholder list is not public. Allegedly, big banks in the region are required to buy.

The shareholders nominate Federal Reserve executives. The Federal Reserve Board of Governors accepts or rejects the nomination.

For example, St. Louis Federal Reserve Bank President Tom Hoenig was appointed by the shareholders of the St. Louis branch. The Board of Governors then approved his nomination.

The Federal Reserve Board of Governors are appointed by the President and confirmed by the Senate. They serve 14 year terms. The chairman gets a 4 year term. However, he may also have a term as a regular member of the Board of Governors.

With 14 year terms, there's practically no oversight.

In practice, Congress has virtually no power over the Federal Reserve. In practice, Federal judges have no power of the Federal Reserve.

There was a FOIA lawsuit involving the Federal Reserve and Bloomberg, regarding disclosure of secret loans. The judge ruled in favor of Bloomberg. The Federal Reserve told the Federal judge to shove it.

Members of Congress can ask the Federal Reserve for records. As subcommittee chairman, I believe Ron Paul has Congressional subpoena power now. The Federal Reserve can refuse any disclosure request by Congress.

The Federal Reserve can lend as much money they want, to whoever they want, at whatever interest rate they want, without any public disclosure.

Congress could, by a majority vote, change the Federal Reserve law. However, due to lobbyists and the Federal Reserve money firehose, this is politically impossible. The banksters will always lobby against reform. Besides, most politicians are brainwashed to believe "Monetary policy is complicated! Leave it to the Federal Reserve and banksters!"

2. Yes, taxes are needed to preserve the scam.

If there were no taxes, people would boycott the government's paper money and use other forms of money.

In the present, gold and silver are taxed unfairly/Unconstitutionally. That's the reason people don't use gold and silver as money. The taxes make it functionally illegal.

In theory, government could finance itself entirely via inflation. However, the income tax needed in a paper monetary system. The income tax is a deterrent to using other forms of money.

So, the answer to "Are taxes needed?" is "Yes, but only indirectly."

In the present, the government can hike the inflation tax while leaving income taxes constant. They're only constrained by the risk of hyperinflation and complete currency collapse.

Also, if there were no taxes, then inflation would be a lot higher. Taxes counterbalance the inflation of deficit spending.

Taxes prevent the slaves from boycotting the State paper money.

Here's a commonly-cited quote:
Under the old gold standard, taxes and borrowing did fund spending. Today taxes function only to regulate aggregate demand and to control prices. The federal deficit is merely the difference between the numbers changed upward when the government spends, and the numbers changed downward when it taxes. Taxes therefore function to regulate aggregate demand, not to raise revenue, per se. Tax cuts increase our spending power, tax hikes lower it. This is indisputable operational fact, not theory or philosophy.
Some insiders know what's really going on. The only point I would add is "Taxes prevent people from boycotting the government's money. Federal Reserve Notes are literally work permission points. People must pay taxes whenever they work. Taxes must be paid in the form of Federal Reserve Notes. Taxes create an artificial demand for State paper money, which is otherwise intrinsically worthless."

State insiders know how to manage a huge extortion racket as well as I know how to write software. The business of government is theft and extortion. Insiders know their business well.

Actually, pro-State brainwashing is more severe than you think. At one time, I really believed 2+2=5, because it made more sense than my other observations.

What happened is that I had false beliefs I held more tightly than all the Math I ever learned. I had to question all the Math I ever learned, before I started questioning my other false beliefs.

For me, one layer of cracking my brainwashing was "OMFG! I have false beliefs that I believe more strongly than all the Math I ever learned!"

I definitely think I'm ahead of nearly everyone else, on cracking their pro-State brainwashing. It isn't just false logical beliefs. There also are false emotional beliefs.

The people who watch American Idol and don't do anything else are mostly irrelevant. Once a good agorist trading system is working, they probably can be recruited as workers once they see there's something in it for them.

It also makes me wonder if, someone in some military research lab, is thinking "WTF is up with FSK? What happened?" For example, I suspect (but can't prove) that my subway encounter with Chuck Schumer was organized by someone. I was able to instantly tell that he was a criminally insane psychopath. If his bodyguards were paying attention, they got a good lesson. (I didn't do it on purpose. My "Eww! Evil!" reflex is pretty strong. Most people can't do that. That would be a useful skill for an honest policeman to have.)

I also suspect that some of my coworkers might be members of a secret task force asking "WTF? Why is the economy falling apart." I wonder if they hired me so they could get my viewpoint? One of them said to me "All the leaders are empty suits. They're all good at political maneuvering, but they aren't real leaders." This guarantees collapse, when all the leaders are political schemers lining their pockets, rather than being true leaders.

Not everyone who works for government is a clueless twit. There probably are some government insiders who know that there's a *SERIOUS* problem, but they're politically restrained and can't do anything about it.


Anonymous said...

Pretty cool post. I didn't know this about taxes. So, we could stop taxes with no consequences to economy other that higher inflation \ closer collapse? Mises said that inflation benefits economic participants unequally. Those first to receive newly printed money, benefit significantly more than those who receive that money last.

Thus, we could say that taxation (besides forcing people to use FR points) is intended to make those benefiting from inflation the least to also pay the price for countering the effects of the inflation - such as currency devaluation and general rise of the price level. OMG!

My wife argues, however, that this is not the case, since rich pay the most taxes, and therefore, the taxation is designed to to make those benefiting the most also to pay the most.

But, I think she is wrong. Because then there would be absolutely no point in doing so. It would be like giving with left hand and taking with the right hand.

I see AIG receiving freshly counterfeit money. Does AIG experiences a proportional increase in taxes? Don't think so...

I think there is a difference between those who receive money forst, and those considered to be rich. Ones that benefit are the ones ***connected***, not the ones with higher tax brackets, and there is a multitude of reasons why.

Basic principle however is this, you must be connected to the fascist state with as short of a leash as possible to do good, because this is what the system is designed to do.

Anonymous said...

successful unconnected people will be made to pay through taxes for keeping the unsuccessful but connected idiots afloat. Because of their healthy profits, they are getting themselves in higher tax brackets, and so they pay more tax, which goes to reduce the price rise due to trillions printed and given to leaches like banks and automanufacturers. The latter will show little or no profit, so, not only they don't need to earn anything as we give it to them, they also pay no price for the consequences.

This Blog Has Moved!

My blog has moved. Check out my new blog at