Printing/Creating Money Is A Hidden Tax, Which Should Be Approved By Taxpayers

                        

                         

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Bankrupt American People

 

Mike Adams

 

As the United States of America stands on the verge of irrecoverable bankruptcy, U.S. Senators have decided to orchestrate a final "blowout" spending spree by dressing up the financial bailout plan with so much bloated pork that no lawmaker can resist its lure. The so-called "rescue plan" (renamed from "bailout plan" by Washington language police) has now ballooned into a 450-page overstuffed pork sandwich, featuring layer upon layer of outlandish expenditures tied to the bill like too must ballast on a sinking ship:

• Tax breaks for NASCAR race tracks
• Big handouts to Virgin Island rum makers
• Yet more tax breaks for Hollywood film producers
• Gifts to companies researching wool
• Huge tax breaks for companies like Microsoft and GE

... and many other handouts yet to be discovered in its 450 pages of pork.

What began as a financial bailout bill to save the future of America's economy has become a free-for-all financial blowout that will only accelerate its demise. What's astonishing here is that even on the verge of financial collapse, Washington lawmakers are incapable of coming to their senses. They offer the same solution to every problem: Spend more!

"This is how Washington works,'' said Keith Ashdown, chief investigator at Taxpayers for Common Sense. "A big pot of pork is their recipe for final passage."

A big pot of pork

U.S. lawmakers are addicted to spending in the worst way. Just like heroin addicts, they will get their fix at all costs, regardless of the harm caused to their family, friends or countrymen. They will spend away all the money in the world, mindlessly, recklessly, without a second thought, as long as it keeps them in office for just one more term. Just one more hit...

Last night, the U.S. Senate quietly passed a $600+ billion spending bill, which earmarked $448 billion in Pentagon funds (war money). This was all done under the cover of the much larger $700 billion financial bailout bill, which managed to keep people distracted from the $448 military spending bill.

Earlier this week, the Federal Reserve quietly, and without any vote, magically created another $620 billion in money and flooded it into the banking system. There was no debate. No vote. No public announcement at all. Just endless, silent money creation at every turn, seemingly conducted without any awareness or concern of the consequences.

And there was certainly no warning of how this would erode the savings accounts and retirement funds of taxpayers. In fact, nothing resembling the truth ever makes it out of Washington these days. This $700 billion pork-barreled bailout scheme is being sold to the American people as a taxpayer benefit! The government is doing us all a favor, didn't you know? And we should feel so fortunate that they're doing it with our money, too.

The Government vs. the People

It's often said that the first casualty of war is the truth. Right now, the U.S. Government is in a financial war, and amid all the propaganda, deception and manipulations of the mainstream media, there's simply no room for something as big as "the truth."

But what is the truth, really?

The truth is that you're watching the boldest, most outrageous swindle that's ever been conducted in the history of the world.

The truth is that you're a witness to the last, sad chapter of a military empire that's fast headed towards financial self-destruction.

The truth is that U.S. debt spending has now entered an escalating geometric progression from which no nation has ever returned in one piece.

Two weeks ago, it was a few hundred billion dollars in fake money and debt spending. This week, it's been nearly a trillion dollars already. Next week, it may be another trillion. With each passing week, the crooks in Washington will tack on another trillion dollars (or more) to the national debt, like heaving two-ton cars onto the back of a cripple who can barely walk to begin with.

It took the United States of America 230 years to accumulate roughly $5 trillion in debt. Washington has now doubled that in less than 30 days. We now stand at $9.8 trillion in national debt.

With the passage of this financial bailout bill, we will be facing -- at minimum -- $10.5 trillion in debt. And just to make sure we're properly drowned in it, Senators are throwing out tens of billions of dollars more to companies that made really bad financial decisions, like Ford Motors, which is one of the recipients in a $25 billion automaker bailout just announced yesterday.

And don't forget this juicy fact: These financial bailouts aren't limited to U.S. companies, either! If the bailout bill passed, Treasury Secretary Paulson will have full authority to dish out hundreds of billions of dollars to bail out FOREIGN banks, too!

$10 trillion in debt quickly becomes $12 trillion. Then $15 trillion, then $25 trillion. At some point, it all becomes too absurd to track, because there is no nation in the world that will keep pumping useless dollars down the U.S. government financial tar pit. And that means the U.S. will soon run out of willing lenders, just like the heroin addict who can't get any more "emergency" loans to go out and buy more drugs.

Even though I know most consumers simply cannot fathom what's about to happen to them (and their money), I cannot overemphasize this point: The United States government is now on a track to financial annihilation. You are witnessing its suicide march into debtors' demise. Sure, it may be able to string itself along for a while longer, perhaps by terrorizing other nations and extorting money from them to prop up the empire (read the history of the Roman Empire, folks), but in the end, there is no way out of $10 trillion in debt other than to either declare bankruptcy (at which point nobody will loan you money anymore) or hyperinflate the currency to bail yourself out (at which point the currency becomes worthless and the taxpayers are wiped out).

Take a guess which one your esteemed leaders in Washington are pushing for? It's the hyperinflation, of course. Because in the end, they'd much rather lose YOUR money than THEIR power.

I think even the Senators secretly realize this now. Behind closed doors, they know the game's up. This blowout spending spree is their last, desperate chance to bring home a few hundred million dollars to their home states before the federal government becomes completely insolvent. It's really a financial looting of Washington, and the vultures have moved in now in an attempt to scurry away with all the scraps of U.S. dollars they can carry.

Either way, the U.S. dollar is headed towards rapid devaluation. International investors are either laughing their heads off or shaking them in disbelief, wondering what kind of madness has gripped U.S. lawmakers today, and whether their own nations will be safe from the aftershocks of U.S. fiscal failures.

What to expect in the days ahead

September 29, 2008

 

The $700 billion financial bailout created in Washington is a classic example of Western Medicine's "treat the symptoms" mentality. Rather than address the root cause of the problem (the Fed's control over the money supply and the very structure of fractional-reserve banking), politicians seem satisfied to rig up a series of financial bandages that allow them to pretend the problem has been solved.

 

The financial sickness now infecting banks, lenders and insurance companies across the globe is an unchecked pandemic of infectious debt. But rather than addressing the cause of the infections, the financial industry seems satisfied to refinance the disease carriers so they can rise up, coughing and sputtering as they pass along the disease to anyone within breathing distance.

 

The key agenda of both the financial and health industries is to enrich wealthy corporations at the expense of the public. In Western Finance, this is being done by privatizing the financial gains while socializing the financial losses. In other words, all the profits go to the wealthy elite while all the losses are passed along to taxpayers (this is the fundamental point of the $700 billion bailout, of course).

 

If I break into your house and steal your wallet, I would be considered a criminal. But when Congress breaks into your finances and steals your life savings, they consider themselves to be heroes!

 

Meanwhile, top bankers are shelling out hundreds of millions of dollars in favors to Washington politicians in order to avoid any reduction in their multi-million dollar salaries, even while the financial institutions they led are about to be bailed out by taxpayer money. What all this has in common is that the top CEOs, politicians and regulatory decision makers are unindicted criminals who are guilty of various crimes against the People: Theft, conspiracy, racketeering and much more.

If these people were held up to the same laws applied to you and me, they'd all be arrested and spend their lives in prison (or worse).

 

Think about that. It's a powerful realization. The U.S. simply cannot continue the way it's running today.

 

With banks stealing money from the working taxpayers, and $10 trillion national debt knocking on our door, and the government taking ownership of more than 50% of the national economy, there is no future!

 

The end of these systems is now in sight. They are crumbling under their own arrogance and stupidity, revealing a society based on self-righteous deception and global scandal. Everything we thought was real turns out to be fabricated: The money, the medicine, the economy, the law... it's all being revealed for what it is: A Matrix of enslavement, designed to keep the People believing they live in a free society, even as their health and wealth are stolen from them by the sinister few who wield political power.

 

The awakening will be rude. Some will embrace reality and thrive in the Next Society. Others will deny reality and suffer.

 

But a collapse of the U.S. government would accelerate that shift by taking the FDA out of the equation. Without the FDA to enforce Big Pharma's monopolistic, racketeering practices, natural products would quickly take over the free market and Big Pharma would quickly shrink. Remember this: FDA employees are only one paycheck away from complete disloyalty. The entire U.S. government is held together by a long supply line of fragile paychecks. The whole system could unravel in less than 30 days if foreign nations stop buying U.S. debt.

 

September 27, 2008

 

Foreign central banks will reassess their purchasing of U.S. debt.

With the U.S. taking on another $1 trillion in debt, foreign central banks will realize the game's over, and the U.S. is never going to be able to pay back its IOUs. As a result, many foreign banks will either stop buying U.S. debt, or even start trying to sell off the U.S. debt they already carry.

The result of this is increased costs of borrowing for the U.S. There is a small chance that there could be a panicked sell-off of U.S. debt, but I put this chance at only 10% or so. However, this is an important article worth considering on this point: http://www.bloomberg.com/apps/news?pid=...

Regardless of what foreign banks do, it will suddenly become MORE expensive for the U.S. to borrow money. Imagine the country paying credit card interest rates just to borrow money that it's using to pay the INTEREST on the debt it already owes to other countries!

Following the false euphoria, investors will sober up as they learn about the actions of central banks, and the stock market will begin to teeter, then head downward. Yet more banks will fail (Wachovia now looks dangerously close...).

Yet more money will be created out of thin air to bail them out, and every time another bank is bialed out using new (created) money, foreign central banks get closer and closer to pulling the trigger on a fire sale of U.S. debt.

The Christmas shopping season will be sharply down

With consumers increasingly concerned about their finances (and many losing their jobs), the upcoming Christmas shopping season will be quite bad. Expect to see massive discounting across most retailers. Newspapers will report how terrible the Christmas season is, and even retailers like Wal-Mart will report seasonal sales dropping compared to 2007.

A wave of bankruptcies will sweep through retailers

Following the poor Christmas performance, a wave of bankruptcies will sweep through mass-market retailers.

This wave of retailer bankruptcies will spell yet more financial chaos for the banks already walking on thin ice. Expect to see yet more financial institution failures announced in January, 2009.

Why? Because as retailers fail, their landlords will be left holding devalued commercial real estate! It's like the housing bubble, but now in the commercial markets, all over again. And guess who holds the mortgages on all the commercial retail space? Banks, of course. The same banks that are already leveraged beyond all reason.

The Fed cranks up the printing presses

All this time, between now and January, 2009, the cost for the U.S. federal government to borrow money will steadily rise. As the cost to borrow money becomes too much to bear, the U.S. government (in conspiracy with the Fed) will fire up the printing presses (metaphorically speaking, of course) and start creating hundreds of billions of dollars of fictitious money.

If you or I did this, we'd be arrested for counterfeiting, but when the Fed does it, it's somehow legal. So instead of taking money from foreign central banks (which will increasingly refuse to loan money to the U.S.), the government will start taking the money from YOU.

This could start happening in early 2009, or depending on events, the crooks in Washington might be able to delay this for a few months (or even a couple of years), but this looks like the most likely outcome.

What it's all REALLY about...

In all, this grand financial bailout is not about bailing you out, it's about ripping you off. It's all about stealing the savings of hard-working people like you and me, and transferring that money to the government where it's redirected into the pockets of criminal bankers who fettered away all that cash over the last twenty years (and now want us to pay for it).

Thus will begin the runaway hyperinflation of the U.S. dollar, and the draining of your savings.

The key tipping point here will be when foreign banks stop buying U.S. debt or, just as dangerously, when foreign banks start SELLING OFF U.S. debt.

Either one will trigger a landslide rush to dump U.S. debt, flooding the market with useless paper that no one wants to buy.

Germany, China and many other countries are already calling for an end to the American Empire (see http://www.reuters.com/article/newsOne/... ).

Sadly, China actually has a way to accomplish that end. All they have to do, right now, is start a fire sale of U.S. debt, and the American empire crumbles within days.

This is what happens when you're a debtor nation. You give up control and power to those who own your debt. As the U.S. claimed to be "fighting for freedom" in Iraq and the Middle East, it was actually imprisoning its own citizens in a matrix of never-ending debt, handing over the keys of control to China, Japan and Middle Eastern nations who now decide the fate of this country.

There is no way out of this financial mess that does not involve depleting the savings of American citizens. Your government is not going to BAIL you out; it's going to SELL you out as it moves to protect itself and its corporate buddies.

 

September 19, 2008

 

In its complete abandonment of free market principles, the U.S. government has banned all short selling of nearly 800 financial companies and set up a $1 trillion off-the-books "rescue" fund in an attempt to sweep financial losses under the rug while sending the bill to taxpayers. If you or I used the same accounting practices in our own businesses, we'd be arrested for serious white collar crimes, but the U.S. government respects no law and is now fully engaged in Enron-like accounting schemes to create the appearance of financial safety while it drives our nation deeper into unacknowledged financial disaster.

One can only step back and laugh at the hilarity of it all. By decree, no one can short sell financial institutions now. It's as if the King declared all markets shall always go UP, and anyone caught lowering stock prices shall be arrested for crimes against the State. President Bush might as well declare gravity to be outlawed, or the laws of physics to be suspended.

You can't declare the stock market to suddenly be strong and expect it to actually be so. Sure, you can fake it for a while, but the underlying causes of these financial disasters (runaway spending) are NEVER mentioned, especially not by the President.

"Anyone found engaging in illegal financial transactions will be caught and persecuted," said President Bush (yes, he actually said "persecuted"). Everyone except the U.S. government, of course, which is so blatantly engaged in illegal financial transactions that it now qualifies as a money laundering criminal itself.

Chemotherapy for the economy

The U.S. government treats its financial problems in the same way doctors treat patients with health problems: Mask the symptoms and ignore the cause.

This $1 trillion rescue plan is like chemotherapy for the U.S. economy. Sure, it might visibly shrink some tumors, but the patient will soon find himself vomiting, losing hair and dropping body weight to dangerous levels. The real problem with the U.S. financial system is not that it has too many losses, it's that the entire money supply is run by crooks at the Fed who have stolen control of the money supply from the People. Meanwhile, the U.S. government is engaged in runaway debt spending: $9 trillion so far, and now, with this $1 trillion rescue plan, the U.S. government is about to hit an incredible number: $10 trillion in debt.

Does national debt really matter? To hear the politicians say it, debt has no consequence. You can tell yourself the same lie, too, as you take out cash advances from one credit card to meet the minimum payment on another card. As your debt compounds and multiplies, you can lie to yourself all you want about good times and strong economies, but in the end, the bill still comes due and your house is bankrupt.

Or maybe we can all do what the U.S. government is doing: Create an illegal money laundering fund where we can redirect all our debt to offshore accounts while we party on, spending like there's no consequence.

Let's all be clear about one thing: The U.S. government is now fully steeped in central planning of its financial system. In other words: The U.S. is now a Communist country when it comes to finance and stock markets (so much for all that patriotic flag-waving we've seen since 9/11, huh?), and it's going to dictate the movement of the stock market by the decisions of politicians rather than the free flow of capital and risk.

Capitalism is now dead in America. The U.S. government has just told ALL big financial investors, "Hey, you can pocket all the gains you want, and if you ever LOSE money, don't worry! We'll let the taxpayers foot the bill!"

I probably don't need to tell you this is a recipe for outright financial disaster. Sure, it makes the stock market look stronger in the short run. It can cover up the truth for a while, just like painkilling drugs make the symptoms go away by numbing the patient. But it completely ignores the cause of the problem. The U.S. Government has intervened in the markets beyond the point of all reason. It has completely abandoned free market principles and practically guaranteed a much larger, more painful financial correction in the future when reality comes calling.

What's coming next

On the good side, all this means that you have extra time to bail out of the U.S. dollar before reality hits the fan. While these "rescue" decisions haven't solved any problems at all, they have delayed the inevitable. You now have extra time to get your own finances in order before reality strikes and U.S. dollars go up in smoke.

How much time? It might be a few months or even a few years. No one can say exactly how long you have before the purchasing power of the U.S. dollar evaporates, but make no mistake: The dollar is history. The taxpayers are being royally ripped off. The U.S. government has completely abandoned all free market principles. The future of the U.S. is now no longer in doubt by anyone who can do the math.

Today, by shifting $1 trillion in debt to the taxpayers and suspending free market trading rules, the U.S. government has guaranteed its own financial demise.

 

September 16, 2008

 

The dire financial situation unfolding in our world today directly impacts you. The safety of your money affects your ability to afford organic foods, nutritional supplements and "alternative" health care services that you have to pay out of pocket. There are also huge implications for Big Pharma and the continued drug industry due to cascading bankruptcies that are about to start impacting city, state and national governments. That's why we're covering this financial topic so closely.

 

Just today, the Fed scraped together a desperate, last-minute agreement to provide a jaw-dropping $85 billion in funding to save AIG (the insurance firm). Why did they do this? Because if they hadn't stepped in to save AIG, the entire global financial system would have collapsed within days. That's no exaggeration. The Fed was the funder of last resort, and it has just barely averted a global financial disaster so large, nothing in the history of human civilization even compares. This is what happens when $445 trillion in leveraged financial instruments start to unravel...

 

But the rescue was done by creating money from nothing and injecting it into the system. That $85 billion, it turns out, dilutes the existing money supply, making your dollars increasingly worthless, and in the months ahead, everything you buy is going to get more expensive: Food, supplements, gasoline, rent, health care services and much more.

 

The Fed, in essence, is stealing billions of dollars from the American people and using it to bail out rich bankers and powerful CEOs of huge financial institutions. That $85 billion is on top of another $70 billion the Fed created just two days ago. It totals $155 billion, or over $500 for every man, woman and child in America. Think about it: The Fed just reached into your pocket and stole $500 worth of purchasing power from you, and if you have a family of four, they just stole $2,000 from you.

 

And yet that's only how much they stole in the last two days! Add in all the money creation cash injections in just the last few months, and you get a HUGE number... $200 billion in March, $30 billion to bail our Bear Stearns, $70 billion to prevent a stock market plunge... the numbers just keep mounting. The Federal Reserve is literally printing its way to YOUR bankruptcy. To prevent the failure of wealthy financial institutions, it has decided to decimate the life savings of the American people.

 

It's no surprise, of course: Every nation throughout history has done the same. When push comes to shove, governments always sacrifice their people to save their wealthy elite, and the U.S. is no different. This is a "Once-in-a-century type of event," says former Federal Reserve Chairman Alan Greenspan said on ABC television. "There's no question that this is in the process of outstripping anything I've seen, and it still is not resolved and it still has a way to go," he added.

 

These words, remember, are from the king of understatement. When the dot-com crash took place, he famously called it an era of "irrational exhuberance." Now he's calling this a once-in-a-century event. That means this is bigger than the '87 "black Monday" crash, and possibly bigger than the Great Depression in '29.

 

 

ACMA Comments:

 

The current financial crisis indicates that the current insurance system has following problems:

 

1. It lets everyone spend other's money, which has led to irresponsible spendings and wastes.

2. When everyone irresponsibly spends other's money, the wastes will cause the insurance costs and premiums skyrocketing.

3. Skyrocketing expenses, wastes, costs, premiums, etc. will create bubbles in insurance system.

4. The bubbles will burst one day, which will bankrupt everyone.

5. In the end, irresponsibly spending other's money will end up irresponsibly spending your own money (because all others are irresponsibly spending your money too when you are irresponsibly spending other's money.)

6. Therefore, current insurance system is an irresponsible financial system.  It will destroy the society if continue this way.  

7. Some government programs (e.g. Medicare) also has the same problems, which can bankrupt the country.

8. Conclusion: The current insurance system (including those government programs) should be reformed and changed.  The irresponsible spending and wasting in the insurance system and government programs should be stopped.    

 

When financial bubbles burst, the government bails out the bunkrupcy companies by using taxpayer's money.  Government does not have money.  Government money comes from tax or national debt.  So when government uses taxpayer's money to save above irresponsible and wasting financial systems and government programs, the results will be: 

 

1. Increase taxes.

2. Increase the national debt.  (Most people do not understand how dangerous the national debt is to the country and people.  Actually, the national debt is an invisible agent that can make the entire nation and everyone bankrupt.  A responsible government should not let the national debt increase.  Unfortunately, the national debt has been increased dramatically in the past eight years.)

3. Depreciate US dollar, and dollar will become more and more worthless.

4. Make people's net income down due to the dollar depreciation (the income you receive now is worth less than you received before.)

5. Because of dollar depreciation, everything (from foods, gas, etc. to any merchandises) become more and more expensive.

6. People's purchasing power will be decreased.  

7. As a result, the impact of increasing national debt and depreciating dollar is the same as increasing taxes.  The only difference is: increasing taxes is visible (so many people are against it), but increasing national debt and depreciating US dollar are invisible (so many people do not realize their dangers and are not against them.)  However, their results are similar to increasing taxes.   

8. Therefore, more and more people will live paycheck to paycheck.

9. Many people's income will not be able to cover their expenses.

10. In the end, the people's purchasing power will become so low that more and more people will bankrupt and become poor people.   

 

Related links

Facts

Printing Money Collapses US Economy

Printing/ Creating Money Should Be Approved By Taxpayers

No National Debt -- The Invisible, Hidden, Alternative Tax

U.S. National Debt Clock

Congressional Representative's Terms Should Be Limited

Establish Board of Government Owner

Bankrupt American People

Please pass above articles to your colleagues, friends, relatives, and any taxpayers you know.  Let all taxpayers be aware of above issues, and take actions now to protect taxpayers and America.   

 

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