Charles Hugh Smith – As the global economy slides into recession and the U.S. economy catches a cold, the blueprint for raising taxes will be dusted off in every state.
The blueprint for raising taxes in the modern era was first established in 1913 when the federal government instituted permanent income taxes. Prior to 1913, income taxes were viewed as wartime emergency measures to raise money for the immensely costly prosecution of war.
Here’s the blueprint for raising taxes
1. Declare the tax is an emergency measure.
2. Start the tax out at a low rate to minimize resistance.
3. Levy the tax only on the wealthy to play the “it’s only fair” card.
4. During some late-night session when the public isn’t looking, make the tax permanent by burying the provision deep inside some popular and/or complicated legislation. Continue reading
Gary Christenson of the Deviant Investor joins the podcast to discuss the impending economic collapse of the US economy and the demise of the Dollar.
Quoting a recent blog entry by Bill Holter, Christenson says, “What we have coming is a collapse of everything we have worked for and everything we’ve built and saved over our lifetimes and that of our ancestors.”
Gary’s empirical model for precious metals suggests a $10,000 price for gold by 2021 and that’s IF the Dollar doesn’t collapse by that time and IF we don’t hit hyperinflation first. In those two scenarios the price for gold could easily rise orders of magnitude higher than $10,000 per ounce when priced is Dollars.
GE Christenson is the owner and writer for the popular and contrarian investment site Deviant Investor and the author of the Kindle book, “Survival Investing with Gold & Silver.” He is a retired accountant and business manager with 30 years of experience studying markets, investing, and trading. He writes about investing, gold, silver, the economy, and central banking. His articles are published on Deviant Investor as well as other popular sites such as 321gold.com, peakprosperity.com, goldseek.com, dollarcollapse.com, brotherjohnf.com, and many others. Many years ago he did graduate work in physics (all but dissertation), so he strongly believes in analysis, objective facts, and rational decisions based on hard data.
aka Deviant Investor
SF Source SGT Report March 2015
SGT Report – There is a sea change in the monetary world occurring at this very moment. The world’s reserve currency, the Dollar, is now in its twilight years (or months) as China, Russia and even US allies make dramatic moves away from the world’s Petro-dollar based system – and toward Asia.
David Stockman, who once worked as Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan, and whose work at Contra Corner we often post at SGT Report, made an appearance on Neil Cavuto’s Fox Business Channel show recently where he took the hardcore economic facts to the American people, warning that time for the US Dollar and the debt-riddled US economy is running very, very short.
We suggest you share this information with anyone and everyone about whom you care.
On the Fed: “First of all we have a central bank, the Fed, that is out of control, has been for years. We have now printed more money than was even imaginable ten years ago. Four and a half TRILLION. We started at the time of the financial crisis with a balance sheet at the Fed of $900 Billion – it took 94 years to get there. And in a few months and years we quadrupled it.”
About the stock market, Stockman warns: “Today the stock market is at a crazy high. This is built on liquidity injections of massive magnitude from the Fed. It is not warranted by the sustainable capacity potential of this economy, or logical in light of all of the headwinds we see coming from everywhere.”
Cavuto asks: Where has it left us? Continue reading
Dmitry Orlov – Once upon a time—and a fairly long time it was—most of the thickly settled parts of the world had something called feudalism. It was a way of organizing society hierarchically. Typically, at the very top there was a sovereign (king, prince, emperor, pharaoh, along with some high priests). Below the sovereign were several ranks of noblemen, with hereditary titles. Below the noblemen were commoners, who likewise inherited their stations in life, be it by being bound to a piece of land upon which they toiled, or by being granted the right to engage in a certain type of production or trade, in case of craftsmen and merchants. Everybody was locked into position through permanent relationships of allegiance, tribute and customary duties: tribute and customary duties flowed up through the ranks, while favors, privileges and protection flowed down.
It was a remarkably resilient, self-perpetuating system, based largely on the use of land and other renewable resources, all ultimately powered by sunlight. Wealth was primarily derived from land and the various uses of land. Here is a simplified org chart showing the pecking order of a medieval society.
Feudalism was essentially a steady-state system. Population pressures were relieved primarily through emigration, war, pestilence and, failing all of the above, periodic famine. Wars of conquest sometimes opened up temporary new venues for economic growth, but since land and sunlight are finite, this amounted to a zero-sum game.
There has been an undeniable pole shift in the international financial system that has left the old Khazarian Satanist cabal out of the loop. This change was formalized, as predicted, on March 20th, to coincide with the solar eclipse, super-moon new moon and Spring Equinox that took place then. After the UK split with the US to join China’s proposed Asian Infrastructure Investment Bank, Germany, France, Italy, Switzerland, Japan, Australia and others followed. Then, according to Pentagon sources, the corporate US corporate government in Washington D.C. failed to make a gold delivery and effectively went bankrupt. As a result, the US Republic announced they would work with the AIIB. In effect this means that the BIS, the World Bank and the IMF have all undergone a fundamental change of management.
“If I had to choose only two words that unite China and the world at this moment, it would be ‘structural reforms,’” was how IMF head Christine Lagarde described the situation. Speaking in Beijing on March 22nd Lagarde said the IMF and China would work together to promote “good governance…anti-corruption” and “preserving the environment.” She concluded her remarks by saying “the IMF is proud to be a partner in China’s economic endeavors here at home [in China] and on the global stage.” In other words, she was admitting, in public, that this once Washington controlled institution was under new management.
Charles Hugh Smith ~ Due process and rule of law have been replaced with “legalized” looting by government in America.
Did you know that the government of Iran steals your cash if they find more than loose change in your car? They don’t arrest you for any crime, for the simple reason you didn’t commit any crime; but it isn’t about crime and punishment–it’s about“legalizing” theft by the state.
So the government toadies don’t charge you with a crime or arrest you–they just steal your money.
Pity the poor Iranian people–clearly, there is no rule of law to protect them from their predatory, rapacious, fake-democracy, quasi-totalitarian government.
Did you also know that if you deposit too much money in modest sums, the government of Iran steals all your deposits? They will claim–oh, the twisted logic of Orwellian, repressive governments–that you are obviously a drug dealer who is avoiding laws that require banks to report large deposits to the government. Continue reading
Anthony Gucciardi ~ The straining medical system in the United States wastes a whopping 750 billion dollars per year, according to a major report by the highly revered Institute of Medicine that was heavily ignored and washed over after it was released three years ago.
Now surely that’s a big number, and it’s really concerning just considering this fact — but I want to put this figure into perspective for you. After all, it’s hard to envision a billion dollars let alone 750 billion. The amount we’re talking about here is not only more than the entire budget for the US Department of Defense, or more than the 2008 banker bailout that everyone is so upset about.
It’s also enough to completely cover healthcare costs for 150 million US workers.
That’s how much the medical system is blowing each and every year. And it’s not on providing excellent care. In fact, according to the report, the ridiculous waste can be categorized a number of really disturbing ways: Continue reading
Financial writer and analyst Bix Weir predicts, “When we have our next crash, and it is coming, I believe it will be here this year, and that’s my final conclusion. I am looking around September, but I believe it has already started. When it does come, people will have a different mindset because they have learned so much. It won’t take too many people to stand in front of an ATM machine and not get their money to be really angry at these people who have rigged our markets and basically stolen our country over the last hundred years.”
Weir, who just released a book titled “Silver, Gold, Bitcoin . . . and God,” goes on to say, “People talk about the government taking us over, and they are going to have the police strong arm us. That’s only as long as the system is up and running. When the system fails, and it’s obvious that these people have screwed up the world, the police are not going to knock on doors taking houses. They, more or less, will not even be working because who is going to be paying them? They are going to go home and take care of their own house and their own friends. They are going to be just as mad at the government as we are. It is as very small amount of people who are going to get the blame, and that blame is going to come hard and fast. There will be justice for all the crimes that have been committed.”
Weir thinks the powers that be are preparing for a financial calamity. Weir contends, “Both the good guys and the bad guys want the crash to happen. The bad guys want the crash to happen because they know they are in trouble. They think if they crash the system, they will walk away with whatever they have.” And why do the good guys want the crash?
Patrick Barron ~ During the years of the Roman Republic, Cato the Elder ended every speech with the phrase “Delanda est Carthago” (Carthage must be destroyed). Rome had fought two wars with Carthage, yet the threat to the Republic remained. Cato saw Carthage as an existential threat and concluded that Rome would not be secure as long as Carthage existed. So fervently did he hold this view that he ended every speech, even about completely different subjects, with the famous phrase. I believe that we Austrians need to adopt a similar phrase to remind the American people that the US faces an existential threat from the machinations of the Federal Reserve Bank. “Delanda est in Susidium Foederatum Bank”…The Federal Reserve Bank must be destroyed. Like Carthage, the Federal Reserve Bank cannot be controlled or restrained. Either it or our republic will survive, but not both. For the sake of our nation, the Fed must be destroyed.
Founding the Fed Instead of Ending Fractional Reserve Banking
The Fed was founded under false economic premises–to prevent bank runs by providing temporary liquidity to banks which found themselves unable to redeem their certificates and demand deposits for cash and/or specie. The real cause of illiquid banks–fractional reserve banking–was never seriously addressed. It was assumed that banks had the legal right to invest their customers’ demand funds in loans and that runs were caused by over indulging in this practice. But as Murray N. Rothbard explain in What Has Government Done to Our Money?, loaning demand funds instantly places the bank in an insolvent position, for it cannot redeem all of its demand accounts for cash or specie. Through the process of lending demand funds, the banks have created fiduciary media out of thin air, reducing their reserve ratio below one hundred percent. If the banks do this on a very modest basis, the public may not be aware of the fraud. However, once the rumor starts that the bank is illiquid, there is a literal “run” to the bank to withdraw demand funds. In such a case, even a bank that only modestly lent its demand funds might find itself unable to honor all withdrawal claims and would be forced to close its doors. Continue reading