“High tax rates in the upper income brackets allow politicians to win votes with class-warfare rhetoric, painting their opponents as defenders of the rich. Meanwhile, the same politicians can win donations from the rich by creating tax loopholes that can keep the rich from actually paying those higher tax rates — or perhaps any taxes at all.”
This is why fiat currency is the road to ruin. Even when the Fed does what their publicly stated purpose is to stabilize the dollar and maintain full employment, but they have a whole list now of other functions. Like being clearinghouse for inter-bank loans and balance reconciliation, and other things.
Here’s the difference between fiat and independent currency. If the politicians had to deal with real genuine money, with independent value, they couldn’t get enough to do what they want to do, it would be a lot harder to do it. So it’s easier to “borrow” it from the Fed, which is glad to create an accounting entry in the Treasury for, say a trillion dollars, add the trillion dollars to its “receivables” and start the interest clock, and voila the taxpayer has been had.
Not only is he on hock for future income to repay it (or his children) but assuming the cycle just continues and rolls over into another loan, it’s still more money circulating.
Meantime they had to couple that with the income tax. That way the same politicians can pretend they’re robbing the rich when in fact they’re robbing the poor and middle class. They can also pretend they’re helping the poor with that deficit money (never money they’re putting money in one pocket and taking the value right out of the other one by just “printing” money), while in fact the poor are paying taxes at gas pumps, in their rent, and in the INCOME THEY DO NOT MAKE because the income tax is swallowing up the extra dough in the money supply and circulating it in federal budgets.
And then the tighter regulations on banks to act rationally is acting to shrink up the M3 money supply.
The Fed hasn’t published M3 figures for years, saying it’s too “complicated”, but more likely they know the sheer size would scare Americans into giving the most massive political beating to their politicians in history.
It’s too complicated to calculate the money supply but Washington claims they can manage the economy??
- Establishment economists do what they’re paid to do, denounce gold standard (trutherator.wordpress.com)
- Aaron Task writes disinformation spin for the Fed (trutherator.wordpress.com)
- Aaron Task writes disinformation spin for the Fed (truebook.wordpress.com)
- The Federal Reserve and Interest Rates | LearnBonds.com (learnbonds.com)
- Change Your Money, Change Your World (adask.wordpress.com)
- While Greece burns…the stock market just keeps going up, and up, and up?? (mercuryreliance.wordpress.com)
- And The Winner Is…Gold (zerohedge.com)
- Bull Markets, Buying Opportunities, and Gold (zerohedge.com)
- ‘Gold Bullion or Cash’ Shows Buffett, Roubini, Krugman Mistaken; Faber, Rogers, Bass, Einhorn, Gross Correct (zerohedge.com)
- Silver to Gold Ratio Chart of the Day (600 years) (mercuryreliance.wordpress.com)