Rule 1: Establish a money cartel so that all of those at the top of the economic pyramid always take a piece of the action.
Ever heard of a central bank? Did you know the United States has one? Did you know that it is not a government agency or even owned by the government? Did you know that it forces every man, woman and child to borrow money to live, even if they don’t have a loan or credit card? If you didn’t know these things, you are not alone. The central bank systems functions in relative obscurity. Every so often, you may hear of a meeting to raise or lower interest rates. This is a meeting of cartel controlled central bank employees who, without any democratic accountability, determine how much “money” goes into circulation. That is, much like OPEC sets the price of oil, these bankers set the price of money and therefore how many people can afford to “borrow” it to pay for the necessities of life. Because you borrow it, there is interest due. Hence, you are in debt if you use dollars to pay your debts or trade even if you don’t owe any money.
Waaaaa? Yes, that’s right. To illustrate, suppose that you have $100,000 in cash. You don’t owe anybody a thing. The central bank of the USA, the Federal Reserve, meets and decides to lower interest rates. As a result, the money supply in the USA increases by 3%. You just lost $3,000 because your dollars became 3% less valuable because there is fungible replacement for your cash–the new money created by the banks: Clownbucks. You just paid a negative interest rate on your Clownbucks. Sorry, you lose. The guys at the top just made 3% for showing up to work. The house always wins.
America got its central bank in 1913 thanks to a cabal of bankers and the mentally challenged President Woodrow Wilson. Wilson suffered from cerebral vascular disease. He no doubt had mental impairments as a result. This might explain why he handed over the economic system to bankers. He and his handlers hid this from the public. He also got us entangled in WWI. He was, without a doubt, the worst President ever.
Rule 2: Establish a tax system that makes not using debt laden dollars difficult if not damn near impossible.
Oh yeah, while I’m talking Woodrow Wilson, how about the income tax? The income came to us by Constitutional Amendment. Precisely, the 16th Amendment. The next time some crackpot tries to tell you the income tax is illegal, just point them to the 16th Amendment. The Constitution, you know, is kind of important even if you don’t like what it says. The income tax also came on Woodrow Wilson’s watch. The political machinery at the twilight of the robber baron age wanted both from some reason. Hmmmm…could it be clowns seizing control?
Anyways, this is important for two reasons. First, unlike the peasantry of feudal England, one cannot pay federal income tax with chickens or wheat. You must have dollars. Thus, you will have to participate in the money system. Second, if you try to limit your participation in the money system, you will be subject to endless accounting and paperwork courtesy of the tax system. For example, if I trade some chickens with my neighbor for a shotgun, then I must substantiate that I either came out even on the trade, lost money on the trade, or gained on the trade. If, for instance, the fair market value of my chickens is $100 and the fair market value of the shotgun is $200, then I profited $100. I am therefore obliged to realize $100 on the transaction and pay capital gains taxes on that $100. Imagine trying to live by the book while not using money. You’d file hundreds of pages of schedule D’s. Each form is subject to the government scrutiny of whether or not your chickens’ fair market value was correct. Eeeek!
For some reason, the banking clowns get a free pass on capital gains related to taking value from you by increasing the money supply. The $3,000 gain in the Rule 1 example was just ordinary banker income, if that. No extra paperwork required for the bankers. Note that you, the individual, do not get a loss on your taxes for the $3,000 of value that evaporated due the bankers’ actions in Rule 1. See how it works?
Think you’re clever, and you’ll skirt Rule 1 and Rule 2? The federal prisons are full of clever boys who became men at the hands of Bubba the prison rapist. For example, suppose you start accepting only US minted silver coins for payment in your business at face value. The government declares that, for purposes of legal tender currency value, the silver eagle is $1. The commodity silver is $16 per ounce. The coin is worth $16. You render $160 in services and accept 10 silver eagles in payment. You report that you made $10 on the transaction. You are so smart! Wrong! The government considers this a “frivolous position” in income tax terms. Don’t believe it? Read about it: http://www.reviewjournal.com/news/employers-gold-silver-payroll-standard-may-bring-hard-time
Mr. Kahre attempted to pay his employees with legal tender gold and silver coins. He was raided by commandos and his life is now a living hell of levies, garnishments, and court proceedings.
Rule 3: Make plenty of exceptions to said tax code to preserve wealth for those who have wealth.
Purely capital investors and passive income recipients do not pay the same tax rate as income earners. I.e. The landlord pays 15% tax with an allowance for depreciation of the improvements upon his land. The self-employed plumber pays payroll tax of 14% plus an income tax of around 25%. Do the rich pay taxes? You bet! They just pay at a rate that guarantees that they will not slip in status. The rich landlord pays 15% in taxes while the self-employed plumbers pays 40%. One might argue that the landlord makes a lower rate of return on his capital than the plumber does on his labor. Ah, but the problem is wealth concentration. The rules were set not to allow one to become a rich landlord, but to stay a rich landlord. Thus, our plumber who may only work as long as he can stay awake, focused, fed, and rested will never catch up with the rich landlord who inhertied his property and built upon it. The landlord is not limited in his earnings by his time and his time is not taxed.
Rich dead guys get to pass on their wealth nearly tax free. There is a estate tax exemption of five million plus. In addition, the tax code allows the wealthy to plan to avoid another five million plus by using vehicles such as the credit shelter trust. A really clever estate plan can avoid even more using family limited partnerships and gifting.
The super wealthy avoid estate taxes by using foundations which function to allow them to keep a feudal estate of political servants. Just look at the Rockefellers, Pughs, Fords et. al.
Of course, it makes sense to some degree to have a lower rate on capital-based earnings. You can’t work forever, you know. But rather than change the rules to efficiently allow lower taxes on retirement income, the clown menace just uses the passive income of the elderly in Rule 5: “If we raise taxes on rent income, folks who depend on that income for retirement will be eating cat food! YOU DON’T WANT GRANDMA EATING CAT FOOD, DO YOU??!!? See Rule 5, infra. Farmers are also great Rule 5 fodder–“YOU’LL DESTROY THE FAMILY FARM WITH A DEATH TAX!!! MONSTER!” Ah, the false dichotomy–no higher taxes or grandma eats cat food; no higher taxes or you kill family farmers. See also rule 4 RE people being poorly educated and incapable of recognizing a false dichotomy when they see it.
Rule 4: Cultivate an uneducated, dependent underclass by handing out tax money to the underclasses.
As George Carlin put it, the poor are there to scare the shit out of the middle class. There would be far fewer poor people if they didn’t get free housing, healthcare, and basic nutrition. Why? No incentive to live comfortably and breed. What if, instead of handouts, we spent the money on a real education system? Well, that doesn’t fit the clown agenda. That might allow a greater percentage of the population to learn to think independently. Independent thought might open the eyes of the masses to the clown menace. Instead, the clowns rile up the underclass with race-baiting, queer-baiting, and gender-baiting. Pass off degrees in gender studies, afro-american studies, etc. as “certified knowledge.” Employ the degree holders as clowns in the clown foundation charities created under Rule 3 or clown-endowed universities which are de facto Rule 3 charities. A clown’s gotta have the constant threat of an underclass uprising to keep the doctors, lawyers, engineers, accountants, tradesman, and managers working and begging for scraps from the clown elite so that the productive but non-elite folks can afford to live in a neighborhood and school district free the underclass rabble.
Rule 5: Justify Rule 3 by citing oppressive government, fairness, liberty, apple pie, and as a carrot to the middle class–“one day you too may join the ranks of the wealthy!”
I’m reminded of the insurance commercial that was popular a few years ago where an old man with a fishing pole yanks a dollar on a hook away from a young lady who jumps for it. “Ya almost had it!” Every middle class conservative guy drones on about the “death tax” and all that shit in the mistaken belief that he too may one day join the wealthy. I got news for ya. Even if you were born in the top quintile, you have only a 30% chance of moving up. The top quintile is the top 20% for those of you who are unfamiliar with the term. That top 20% is not at all normally distributed (i.e. clustered mostly around an average) in terms of wealth. The top 1% own 35% of the wealth. The next 4% own 27%. The next 5% own 11%. The next 10% own 12%. If you make it to middle class, you are among the 1 in 5 Americans who own the next 20% of wealth. Otherwise, you are in the 60% of Americans who own 5% of the wealth. Entry into the top quintile is rather meaningless for 2/3 of the entrants into the top quintile because there is but a 30% chance of moving up. Basically, if you are in the bottom 90%, you have little chance mobility. Sources: http://www.economist.com/news/united-states/21595437-america-no-less-socially-mobile-it-was-generation-ago-mobility-measured and http://en.wikipedia.org/wiki/Wealth_inequality_in_the_United_States
Rule 6: Adjust the ratio of underclass to middle class using immigration.
Gotta keep the middle class scared shitless of being poor and of the poor themselves. Black folks failed in this regard as viable underclass as a whole. For the record, I don’t hate black folks. I admire that they are survivors and achievers in many areas of endeavour. They made many fortunes entertainment, athletics, preaching, and sales. Some have done well in WASPY occupations like law, medicine, teaching, etc. They adapt. In some places, however, they are an effective Rule 4 underclass, particularly urban areas where Rule 4 worked like a charm with poor education, handouts, etc. See Ferguson, MO; Baltimore, MD, etc. Small rural town and college town blacks learned to play the game. Fewer children + more education + being social with whites = more wealth, safety and prosperity. Black folks are about 13% of the population down from about 20%. This won’t do for the clown elite, so they allowed unbridled illegal migration for latinos and easy legal migration for Somalis and others who will never amount to much in America. The underclass is being reloaded with latinos, off the boat Africans, and middle easterners. We’ll see how that works. I don’t think the latinos will play clown ball. They left their oppressive clown regimes for a reason. They too will want economic mobility. The American Experiment to permanently entrench oligarchic clowns continues….
Rule 7: Profit!
A most efficient system for stacking the odds in your favor. All perfectly legal and cloaked in the fustian of stability, fairness, and diversity.