Have You Ever Wondered If Your MONEY
Is Still Worth Anything?

If inflation gets any worse the cops
caught stealing apples will be facing
Grand Larceny charges. ~ Lin Stone

.

FACT
In 1834 $20 of gold
 Weighed ONE Ounce!

Before I go any farther, let's face the ridiculous statement that our money is NOT worthless! "Why, if I had a million dollars I could still buy something, so what are you talking about?  Our money is not worthless, stupid!"

Good Thinking old chap. Now let's talk about THE real VALUE OF MONEY since you have already mentioned that money is only worth what it can actually buy.  Let's look at it this way, If you bought your home for $5,000, less than a century ago, oh, let's say back in 1934, how much would that same comparative size and same comparative quality of home cost today? Would you believe $85,370.80 ?? -- But WAIT! that's only true if you are using money from rich people.  A poor man's dollar is shrinking to being unimaginably worse. 

"Anyone's dollar is still a dollar!" I hear you grumbling forward to say.  I wish that was true, but, in fact, it's a long ways from true! If two men lose a hundred dollars each there is scarcely a ripple in his the rich man's finances because, #1, in all probability the rich man is not paying ANY tax on HIS money; while the poor man can't afford a CPA that good and HIS financial domain will lurch to a stop and his money will soon have nothing left over at the end of the month. You are young yet and wisdom looks easy to you because life is simple on the page and all your figures are merely bits on a scrap of software but life has a way of kicking you in the gut and reality will no longer listen to your fine calculations.

If the state of our economy had jumped overnight from 1917 to 2017 then heads would roll in the streets for years, but since the damage to our coin of the realm has been done incrementally, our heads just wag in pity at anybody (like me) that can't understand the evolutionary small change in the value of our small change.  "It's the inflation, Stupid! Nobody can not do nothing about it!" 

Duh, Okay, yeah, it IS the inflation!

Inflation is the reason our copper pennies can no longer be made of copper and our silver quarters can no longer be made of silver.

I can still vividly remember the tragedy of sodas going from a nickel to a dime and there was that extra deposit on the bottle. Then the ice cream cone went from a nickel to a dime and my wages stayed at $4 for one day of twelve hours of burning hot, hard work and, indeed, I had to LITERALLY pick up a club in order to fight for the right to go on working!

"$4 A DAY? ARE YOU JOKING? Nobody would work for four dolars a day!"
Hey, my father once worked for $3.00 per month and he quit that job only because he had to walk 14 miles THREE TIMES to collect the $3.00 owed to him.

INFLATION? Why, you don't know what inflation IS yet because Washington is awash with this silly idea that maintaining sound money is no longer feastible, no longer necessary -- and worse yet -- today, unsound money is heralded by our politicians as "a virtue we can capitalize on."

Why, when you think about that neat little catchy phrase, doesn't that mean we can get rich by going into debt?  Well, don't let your banker catch you trying this on your bank account at home. No, SIR! Funny money is only laughed at when politicians are preaching "sound economic principles" to the public!

Today, the poor people of this nation are being bilked out of their earnings by the Fedocracy's deliberate manufacture of more unsound money.  I don't mean the "unfortunate" people of this nation when I say the poor people are being bilked;  I mean the already  "impoverished" people of this nation.  We, and I do include myself as one of those already impoverished people that is being bilked of what little money I have managed to set aside for my old age. 

As I will explain below, different slices of society can be sliced up much differently by the same financial situation. The people that get sliced up worst by our phony economy rigging are the POOR PEOPLE that can't understand why they are so poor. Remember this,

Money does not just disappear out of nothing. When people spend money they do not have, they are spending your personal money that you once thought you had. When you sanction the government's social spending habits you are encouraging petty theft on a grand scale!

Just yesterday we parked at a thrift store for a loaf of bread. Ben Franklin once bought that loaf of bread for a penny. I once bought that loaf of bread for 15 pennies. Yesterday I bought that loaf of bread for $2.47  I glanced up at the big sale going on to sell plastic lawn chairs on my way out. They were exact duplicates of chairs I have been buying for 15 years now. 15 years ago, those same chairs were selling for four dollars each. Today, those chairs were selling for $16 each! And they were on sale?

Left inside the store were cookies that I bought at 2 pounds for a dollar 10 years ago. They are now selling 12 ounces for $1.75. Why? In order to fool the public into thinking their money is still worth something, new containers are being invented. They almost look the same size and in fact some of them truly are the same size on the outside – – but now purchasers are only getting 10 ounces instead of the pound of trade goods. Trade goods? Trade goods today are where poor folks trade their money for goods that aren't good anymore!

You've heard about 1929,  haven't you?
Let's talk about that for a moment!

*

MONEY!

Copyright © 2000-2017
by Lin Stone
All Rights Reserved


  A Foreword From The Author 

As you begin reading this treatise on the three legged dollar, please resist the temptation to think you  "know" where I am headed with it.  These deductions are my words and MY ideas, not some empty phrases plucked up from op-eds published in your local newspaper.  And Yes, I realize most people are not ready to take so huge a step as I propose here. My suggestions are written for generations yet to come that will have the courage and the cents to face these truths and declare them to be self-evident.  It will be a time when the future American housewife needs a mark on her forehead to buy her bread -- and a wheelbarrow to haul her money to market in so she can bring home a dozen eggs for her starving children.

What causes inflation?

People have been squabbling over the nature and cause of inflation since time began.

You've probably been taught that inflation is something that "just happens" to the economy.  I shall endeavor to first prove to you that inflation is something governments do to the economy.  That has been true for the last 52 centuries and it will be even more true tomorrow.  It is also true that every government entity seeks ever more monetary donations from its citizens. 

I call it: "The Ransoms of War!"

Facts About Money

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value." ~ Alan Greenspan

Before we start, we need to face some facts.
Fact #1: America is no longer rich; In fact, we are broke.  I realize we are less broke than 117 other countries, but the fact we must face is that US is no longer rich, US is broke.  Perhaps you remember just three years ago when our brilliant president shut down our government because meeting payroll demands was impossible, HE SAID -- and yet, just the week before that, our brilliant president had been muttering in her beard about the need to invade Syria!
Fact #2: America’s biggest claim to monetary fame today is that it now owes Communist China more money than any other nation on earth does.. Last year alone, we ended our financial fiasco owing Red China $232.5 billion more than we could pay back, or barter goods for.  Our auto industry is crumbling.  Our noble financial institutions have recently needed massive bailouts just to keep a wealthy nose or two above the waters of insolvency.  We can't protect our borders from invasion at home, we can't win a war with little old Afghanistan, now we're rushing off to fight Pakistan and Turkey and Syria -- and you know what?  North Korea is thumbing its nose at US now too. 

Fact #3:  Do you know what will happen when nobody wants hoard our money any more?  We will have to barter things of actual value.  The Arabs will no longer be offering their oil to us for our green toilet paper; OIL will be too valuable to trade -- although they might be willing to offer their goats to us at $24.00 per pound! 

All of the bargains in our five and dime stores will disappear overnight.  There will be only a slim dribble of Chinese plastic on our Dollar And More store shelves.  Our money won't even be worth printing.   Hobbled at home, bruised abroad, it is little wonder that inflation holds the reins of power over what was once coveted as the soundest money on earth.  Inflation is king and as long as this nation's friendly fools in the Fedocracy goes on pretending to believe that more inflation is the only answer, inflation will continue to be your king.

Fact # 4:

Because of inflation it now takes
more than $100,000 just to bribe a congressman.

FACT #5
Did you know that the Income Tax Was
Reintroduced In Order To Balance The Budget?

That's strange. But, Look at this FACT
NO U.S. Federal Budget has been balanced
since leaving the gold standard

NOT ONE!

The period from 1980 to 2000 were the last glory days of the United States. From 1980 to 2000, the United States was still rated as the third freest economy in the world, only Hong Kong and Singapore came before it in economic freedom. The United States fell from 8.65 in 2000 to 8.21 in 2005 and 7.74 in 2011. This thrust the U.S. rating all the way down to 19th place in 2011. In other words, the United States has experienced a substantial decline in economic freedom during just the past decade. Visit http://www.cato.org/economic-freedom-world for the full text of this report.

Why, even the United Kingdom is still in 12th place. Japan is 33rd. France is now in 40th place. Even with its lion's share of $1,211,900,000 of untaxed and untraced economic support from the United States, Mexico is in 94th place and China, of course, is in 123rd place. We won't mention South America – or the African nations south of the Sudan.

Economists Adam Smith, Milton Friedman, and Friedrich Hayek have stressed that freedom of exchange and market coordination are what fuels the economic progress of nations. Without exchange and entrepreneurial activity coordinated through markets, modern living standards would be impossible. what's wrong with that is: the economists on the public dole today are preaching that the economy is better because we have more money circulating. Therefore, they reason, if we print more money the economy will improve.

However, there is a huge difference between currency and money. 66 years ago the poor man's common back was willing to work for four dollars a day. Yesterday the common back of society has realized that $15 an hour is insufficient remuneration for efforts expended!

 

Vanishing Gold

According to public records, the Government of Ukraine owned 33 tonnes of gold that was being safe kept in Ukraine. Recently, acting PM Arseny Yatsenyuk ordered the transfer of all that gold to the United States. Snowballed investigations finally turned up the fact that those 33 tonnes of gold are in the vaults of the New York Fed bank.

If the government of Ukraine fails because of lack of support by the United States, one can easily predict those 33 tonnes of gold will be listed as unavailable.

Why would the Ukrainian government risk its gold in the United States? After all, repeated efforts by the German entity Bundesbank to repatriate its gold reserves have been met with a brick wall, and to date, Germany has only recovered a miniscule 5 tonnes directly from the NY Fed – out of a total 674 tonnes originally confiscated.

Prior to the NATO "takeover" of Libya in 2011, Ukraine had one of the highest per capita gold reserves in the world! That has also disappeared.

The good news (for American citizens) is that "our" Central Banks "don’t care about gold."

More than once my amusing friend and yours, Ben Bernanke claimed that he didn’t even understand the desire to own gold. Why, butter wouldn't melt in his mouth, much less GOLD when he said it! When Senator Ron Paul asked Bernanke (under oath and in front of Congress) why Central Banks own gold if it’s irrelevant, Bernanke rather flippantly suggested that it was being kept -- out of banking tradition.

Then came Alan Greenspan. He squirmed his way out of admitting there was enough gold to matter inside Fed banks, but he never did come right out and state that gold was not a factor in the American economy.

How could two economically witless bankers like this pass Congressional examinations and become titular heads of OUR Federal Reserve Banks?


*

Another Way To Steal

It is believed by many historians that Germany lost the first World War because of the entry of the United States into the conflict on the other side.  It is whimpered that Germany deserved our military discrimination, and I agree that IF we had to get involved, poor old King George-Land of "democracy" was the one we had to save, mostly because the English Pound WAS the world's currency back then. 

The US was shipping vast industrial resources to the poor allies that were less broke than Germany was at that point.  When those US ships were sunk -- accidentally at first, and then deliberately, furious protests of our innocent trading activities were hurled at the Kaiser.  In effect we were whistling to the tune of:  "We have the right to trade with your enemies!"  We didn't let the U.K. get around that kind of circular thinking 80 years previously!

Did we prefer to trade with King George because they had stiff upper lips and ideals similar to our own democratic values?  No, Americans were simply out to make a buck -- and the English pound was still worth one whole pound of silver.

Consequently, despite an army vastly superior to what the allies fielded, Germany foundered for a lack of financing. Without funds or credit it could not replenish its artillery shells or ammunition, nor could it pay the military or even provide it with adequate food for a proper diet.

Support for the war among the German population had dropped dangerously low as early as 1916. By mid-1918 the Kaiser retained support for his war only among the die-hard monarchists – and the conservatives.  After losing the war, financial matters promptly mattered even more.  With an inflation of 3,500% per month raging in the 1920s, the Weimar government of Germany became notorious for its uncontrollable hyper-inflation. 

How bad is 3,500% per month inflation?  Here's an example.. a 1923-issue of the 50 million mark banknote would have been worth about twelve million U.S. dollars just 9 years earlier -- but, because of this "uncontrollable" inflation it was only worth about $1 when it was printed.  And the note wasn't even a high grade of toilet paper just a few weeks later because that galloping inflation was "uncontrollable!"  Now I bring this matter up because this piece of history proves once and for all that inflation can be controlled!

Germany's galloping spiral of vicious inflation was brought to a screeching halt in a matter of days! How in the world did they do that?  More importantly, Why can't we do the same thing?

  • Well, actually stopping inflation was -- and is -- pretty simple. First, The government simply stopped printing new money. Second, the deutsche mark was again backed by gold and agricultural parity. 
  • That was all it took; the debacle was immediately over, and Germany found itself on solid financial footing once again.   It was still broke, because of the inflation that had been, but that incomprehensible spiral of inflation was STOPPED. 
  • Germany was still broke from losing the war, but its inflation was reined in and genuine wealth could be created and maintained by the German people once more.
  • Yes, we can also stop our own spiral of inflation with just a bit of courage and a heaping hunk of honesty.

Ostensibly, the U.S. entered the First World War conflict "to make the world safe for democracy!"  Was the German on the throne in England any more democratic than the German on the throne in Germany? Was Czarist Russia a bastion of democratic freedom when it murdered capitalists by the trainload?

America went to war to protect the financial interests of a few friendly families in the shipping industry.  It's a gold-studded fact; if American ship owners had been willing to trade guns for deutsche marks, Germany would have cheerfully sent U-boats plumb to Boston in order to escort US ships through every inch of hazardous waters!

Herbert Hoover became president of the United States just in time for the Great Depression to make its dramatic appearance.  Farmers hadn't been making a profit in more than a decade and poor people were starving, but that does not make a depression; it's only when rich people lose enough money to leap out of tall buildings that newspapers publish blazing headlines about inflation!  Hoover took office in 1928.  By the end of 1929 we had real banks failing.

Herbert Hoover was nobody's dummy.  You've been told otherwise? I repeat, Herbert Hoover was one smart cookie.  His biggest failing was he literally did not have one plastic political bone in his body!  His second biggest failing was that he trusted the American people to think for themselves. Let's look at the proof!

Hoover worked with the leader of the Belgian Comité National de Secours et d'Alimentation (CNSA), Émile Francqui, to feed the entire Belgium nation for the duration of the war.  In an early form of shuttle diplomacy, Herbert Hoover crossed the North Sea forty times to meet with German authorities and persuade them to allow food shipments to pass through their lines, becoming an international hero. At its peak, Hoover's American Relief Administration (ARA) fed 10.5 million people daily.  

This simple program was humorously dubbed "Hooverizing" by government publicists and American citizens. The agency employed a system of price controls and licensing requirements for suppliers to maximize production.

Despite his efforts to prevent it, some American companies reaped great profits in the process.  Ayn Rand would have blushed if she had known the extent of their indiscretions.

In his own, quiet way, Hoover was brilliant.   After that war, Hoover organized shipments of food for millions of starving people in Central Europe. Again, he laid plans that guided the American people in volunteering their time and talents to delivering food through a series of volunteer organizations. The American Friends Service Committee (Quakers), were instrumental in carrying out much of the logistical work in Europe.

Many of Hoover's efforts as Commerce Secretary centered on eliminating waste and increasing efficiency in business and industry. This included reducing labor losses from trade disputes and seasonal fluctuations, reducing industrial losses from accident and injury, and reducing the amount of crude oil spilled during extraction and shipping. One major achievement was to promote product standardizations. He energetically promoted international trade by opening offices overseas that gave advice and practical help to businessmen. Hoover was especially eager to promote Hollywood films overseas.

To promote private ownership of single-family dwellings, Herbert Hoover collaborated with groups such as the Better Houses in America movement, the Architects' Small House Service Bureau, and the Home Modernizing Bureau. He worked tirelessly with bankers and the savings and loan industry to promote a new long-term home mortgage, which dramatically stimulated the home construction industry.

The Great Mississippi Flood of 1927 broke the banks and levees of the lower Mississippi River in early 1927, resulting in flooding of millions of acres and leaving 1.5 million people displaced from their homes. Although such a disaster did not fall under the duties of the Commerce Department, the governors of six states along the Mississippi specifically asked for Herbert Hoover in the emergency. President Calvin Coolidge sent Hoover to mobilize state and local authorities, militia, army engineers, the Coast Guard, and the American Red Cross.

With a grant from the Rockefeller Foundation, Hoover set up health units to work in the flooded regions for a year. These workers stamped out malaria, pellagra, and typhoid fever from many areas. His work during the flood brought Herbert Hoover to the front page of newspapers almost everywhere, and he gained new accolades as a humanitarian. The great victory of his relief work, he stressed, was not that the government rushed in and provided all assistance; it was that much of the assistance available was provided by private citizens and organizations in response to his appeals.

 Do you get the picture? Hoover was brilliant!  He was brilliant and because of his dedication in serving them, the people of America cheered him on! Hoover felt honored to step up to the plate and be enthusiastically voted in as president of the United States in 1928.  The stock market collapsed late in 1929 and by 1932 millions of Americans were no longer enchanted with the Hoover name.  Those that had lost their homes and began living in shacks called their new communities "HOOVERVILLES!"  They were NOT laughing.

Franklin Delano Roosevelt loved a good fight. A good fight is one where the other side believes half the voters in America are capable of thinking. FDR gleefully challenged Hoover in the next election and pointed out that Herbert Hoover had (gasp) spent $500 million of real money and had NOT ended the depression Yet!  Roosevelt vigorously attacked Hoover for "reckless and extravagant" spending, of thinking "that we ought to center control of everything in Washington as rapidly as possible". 

Roosevelt's running mate accused Hoover of "leading the country down the path of socialism" as well as placing millions of Americans on the government dole.  Other than these atrocities of judgment, Hoover was accused of doing NOTHING to end the depression.  Things would be different when HE became president, Roosevelt vowed.  HE would DO SOMETHING!

A disappointed and disenchanted Herbert Hoover lost the election.  And by golly, Roosevelt DID do something.  In fact, he is famous for the maelstorm of action that bubbled up from the White House in his first 100 days in office. If you divide 100 by 30 you get 3 months with 10 days off for rejoicing!  Roosevelt razzle-dazzled his way into taking 19 different courses of action. 

He changed his mind so often nobody knew if Roosevelt was coming or going, much less knowing if he was right or wrong.  But the media  loved him.  The people adored him. New Dealer Rexford Tugwell later remarked that although no one would say so at the time, of course, "practically the whole New Deal was extrapolated from programs that Hoover had started". 


*

In an effort to end the Depression, Roosevelt claimed all the gold certificates and also demanded delivery of all the actual gold Americans had.  Then he sold that gold -- and bragged on how much money he had made.  But, where did that leave poor Americans until 1940? Those who could afford transportation went scrounging while the nation waited for FDR's prompt action economic policies to take effect.  FDR had challenged Hoover's pitifully swift policies because they had not broken the back of the depression in one year. In eight years HE still had not ended the depression. Hoover was hated because some people had begun selling apples for a living. FDR's recovery programs invited former businessmen to recover foodstuffs and certain other precious minerals from public depositories.

People tend to associate the 1940s with World War II and the country's post-war ascendency. But the 1940 Census recorded a time when the nation was still trying to recover from the Great Depression. It reported that 9.9 percent of people were seeking work and another 5.3 percent were on public emergency work. This photograph from the 1930s shows men scavenging a garbage dump for reusable items, with shanties visible in the background. Photo: Museum Of History And Industry / SL

The unemployment rate had not dropped.
The only thing Americans still had was faith in FDR.
Why, of course, He would try something new and,

Franklin would save them!
Yay, Yay, YAY!
Franklin's our boy!

Down in Texas recently a cattle rustler received 99 years for his rustling enterprise.  Really now, I asked, 99 years just for rustling a few cows?  It seemed grossly unfair when I first read that report because I was thinking of how hard it is these days to rustle a few cows from a modern ranch. But our gentleman rustler wasn't cutting steel fences and rushing Texas cattle off over the owlhoot trail to New Mexico. 

No,, Sir! Our gentleman rustler was rustling his cows with a few strokes of the pen, just like governments do!  He made ranchers do the rounding up, and the shipping out and he simply "promised to pay" when the cattle were delivered.  Most of those hungry ranchers never collected a dime in compensation for their efforts. 

Government thefts are better for individuals in the community in that it only steals half your money at a time, but it still recognizes you only as another kind of gullible rancher, unless you are able to buy thousand dollar plates of political lunch, of course.

The biggest difference between nations that rob their fellow citizens and the gentleman rustler that got 99 years is that nations can't be sent to prison. By the stroke of a pen the nations of our world can coin money they don't have, and the bigger the nation is, the bigger the crooks smiling behind the pen can be. 

We know that Alan Greenspan has said: "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value." 

Adam Smith, author of the still much studied book The Wealth of Nations -- published in 1776 -- says that historically "the avarice and injustice of princes and sovereign states, abusing the confidence of their subjects, have by degrees diminished the real quantity of metal, which had been originally contained in their coins."

He then mentions that the English coins (at that time) were only worth 1/3 what they had been, and that the French government had reduced theirs to 1/66 of its original value, all in order that the rulers could pay off their debts with money worth far less than it had been when they borrowed it. 

Avarice has woken up since then.  What a king could buy with £200 in 1784 would require £250,000 in today's money.  That is a statement of fact, not fancy.  A yearly grant of £24,000 in 1814 was made to the exiled French Royal family by the British Government, out of which one hundred and forty persons were supported for  one   whole    luxurious  year!

Okay, back to MODERN history; Richard Nixon took US off the gold standard when an ounce of our gold could be bought with 34 of our dollars.  He took US off the gold standard "because too many people were turning their dollars in for our gold."  Too many people WHERE, you should be asking yourself! Twice as many people outside the United States had been hoarding their money in U.S. currency. The reason so many people were asking for our gold was becoming painfully obvious because our U.S. currency was no longer worth as much as our gold was.  Anyone able to count dollar bills realized that something was gone just a bit awry. The overseas hoarding ring suspected political skullduggery was being dug in their back yard!

***

As long as people outside the U.S. had continued to hoard it, the bulk of our money did not have to be redeemed; therefore our sly little government could print more dollar bills here and no one noticed or believed that the figures weren't stacking up right.  But, the more unsound our money became, the less inclined people were to hang onto it; they wanted to redeem the value they had invested in it since our dollar became worth less every time the U.S. printed more money! 

Nixon convinced Americans that the wisest course would be to let the value of a dollar skid with reality.  What was this new reality he had invented?  The new monetary reality was that the value of our dollar would skid downhill to line the garbage dump and float breathlessly away from the smell it left behind. 

Kids could still buy a nickel candy bar for five cents in 1976 but today you'd better give $2 to your kids for that candy bar, and don't expect any change back.  Does that sound like sound money to you? It sounds like the best deal you will get this week.

Now, I'm no smarter than you are, but here's how I see the future shaping up if the American people aren't any smarter than I am.  By printing more money in order to make American inflation continue to accelerate because the value of our currency crashes, more and more people from outside the United States can be expected to begin cashing in their paper dollars.  When the oil-rich Arabs convert all their billions of American dollars into Chinese Yuan or Japanese Yen there will be a crippling blow to our economy. Don't you fret none about those wealthy Americans falling out of skyscrapers. They have been plucking up bargain real estate for the last two decades; they sure know the signs of the times this time.

Not counting the $232.5 billion that we owe Red China, $300,000,000,000 will be cashed in for the Euro and suddenly US will have 3-4 times as many dollars flooding the market and we didn't even have to print them!  Our floating money reserve value will slink down the drain virtually overnight.  A run on OUR banks will devastate the economy our very lives depend on. Don't worry about me any either. I have a little seven acre garden spot with a natural source of water and a tanker full of diesel for my three tractors.

..

The dollar bill below is a SILVER CERTIFICATE.  In 1976 a one dollar bill would buy an ounce of silver, but the world realizes right now that it would require $31.08 to buy one ounce of the precious gray stuff. 

In other words, it now requires 31 of our new funny money dollar bills to buy as much silver as one of our old dollar bills would have purchased with ease! 

If we had used 35 of these silver dollars and bought an ounce of gold, right this minute, we would have $1683.00 to jingle around.  This inflation would not have happened if our government of the people, by the people, for the people had not stuck it to the people and if we (US) had made the government abide by the Constitution.

Article 1, Section 10 of the United States Constitution pretty well sums up what our founding fathers believed that money should be made of: "No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility."  Emphasis is mine. 

Now, what about the copper and the tin? Back in the day when everything was balancing out, 100 real copper pennies were worth one silver dollar. And the tin? Coin dealers tell me the tin mill pieces never existed.  However, I sug up a roll of them when I was a child and I asked my father what they were. "Back when you were born we paid the taxes on our groceries with these mill pieces. 20 mills for every dollar we spent. Now they want a whole penny!" Like I said, inflation has been with us a long time.

Today, when states begin trying to bribe a foreign business to set up inside their boundaries, do you know what the first bribe put on the auction table is?  You're right,, NO taxes for the first 5 years!  And, why do so many crooked small business owners run the risk of hiring illegal aliens?  Because then they can write off the cash wages as a business loss and pay no taxes on what they really earned. 

Now, here's how I add this up;  If it takes $2 to buy what $1 did buy just six short months ago then you have lost half of your money without a fight -- you don't even know who to fight with!  As the friends of Congress have raked off their share of the loot in bailouts and special perks the poor man pays the price as his own cost of living swirls out of control.  Consequently. it now requires 31 of our new dollar bills of unsound money to buy as much as one of our old dollar bills would!  But, besides that.. Every dollar you and I earn is taxed MORE by the Federal government each year -- and each year, every dollar you and I spend is taxed by the State, County AND City governments.  That's what I call raking it in, going and coming.  My pocket is where it is coming from.  If your pocket feels funny then maybe the government is raking it in from your pocket too. 

It's kind of like what a certain president did to the Armed Forces by raising the pay scale to get soldiers to volunteer for another hitch then CHARGING a "maintenance fee" for every meal they eat and every stitch of clothes they wear. "After all," he explained. "They volunteered to serve their country!"

Well, that was yesterday. Today I find I am paying taxes every time I light a match, smoke a cigarette, down a drink, play a game of cards, go to a movie, to a show, or to a ball game. Every time I take a trip on a train, bus or plane, every time I send a telegram or talk on the telephone, every time I surf the web, every time I buy groceries.. I'm paying taxes.  Look at the figures; study the bottom line.. 45% tax on my income.. then another 14% of every dollar I spend on groceries goes for taxes.  45 + 14 = 69% -- or 7 out of every $10 goes for taxes. 

When I buy a car, taxes AND excise taxes.  When I buy a home, TAXES ON TOP OF TAXES. To look at it another way, that means that during the period from January through September I'm working for the public whipmaster. Most of the slaves got better wages than that.

If this continues four more years then the day is coming when the poor man will be spilling blood at every step as he goes on working from the 1st day of January through the 24th day of December just to keep from going to prison for tax evasion.

Oh, sure, there is no denying the scientific progress we have made lately: The mail runs almost as fast today as it did in 1900: And, we only have twice as many people going hungry now as US did in 1931. People with a genuine ostrich mentality will insist on pointing out there are televisions today, computers, and roads paved from one end of the country to the other (well they are all cracked up now but there was a time when they rendered smooth surfaces, back in 1964 I think it was), not to mention hundreds of other wonders, like the Internet.

My thought on the other side of the ledger is that with all those things going for us we should be seeing an immense GAIN in wealth: and, If the lawyers and politicians had left our money alone, then I believe all these improvements and increased productivity would have created so much wealth in the United States that the whole world could not hold it!

The way I see it, our best magazines would still be selling for a dime, not 20 cents. 

Long after I was a grown man, Reader's Digest was still selling for just 35 cents on the news stand! That was without advertising of course.

I maintain that ALL the progress we have ever made over the past two centuries can be traced to giving the common man more opportunity to gain wealth; it did not happen because he was being taxed to death.  But maybe you won't take my theory at face value, so Let's Ask..

Brother Eli, did you invent the sewing machine because you were taxed enough?  "Why bless my soul!  What kind of embroidered fiction gave you such a silly idea?"

Let's ask again.  Uncle Bill, did you invent any version of Windows because you were being taxed enough?  "Uh, let me think here.  No, I'm quite sure the answer is no.  Well now, maybe it was yes because I was being taxed so much that I was struggling hard just to keep my head above water.  I absolutely HAD to do something or I would have had to settle for 64K all the way."

Okay, let's ask one more time.  Mr. Industrialist, is your company so squeaky solvent now because the government has over-taxed you?  "Are you kidding?  I have had to hire eight new full time accountants this year and it takes twelve lawyers just to take a stab at complying with the 18 volumes of governmental taxation and stupid laws!"

Well there you have it from three different perspectives, and you still get the same answer.. Overtaxing US poor people is NOT improving the value of our money nor laying a foundation for lasting wealth! 

Opportunities to create wealth is the only thing that a man needs for progress to be made.  Millionaire entrepreneurs are not essential.  It is only when Washington begins to pay the millionaires back for their "political generosity" that the opportunities to create wealth are constrained.

Provide enough opportunity and God will provide twice enough opportunists.  Here's a nice little couplet:  If we just multiply the number of people who can make improvements we will subsequently multiply the number of improvements being made.

When the little guy on the street believes there is no use to go on with his honest hustling then progress comes to a halt and the crack dealers proliferate. The more hope a nation gives its citizens to get ahead, the more wealth that nation will create.

*

1929 is supposed to be the beginning of the worst economic depression in the history of the world. 

"Supposed to be?  Why there were people starving to death, freezing to death, working themselves to death for a silver dime."

 Yes.  All that really happened. But it did not happen because the United States went broke!

"A conspiracy then?"  Snicker, Snicker.

Actually it was probably just the reaction of natural law.  As John D. Rockefeller said, "These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again." 

Yeah, unless the government does something about it.About the only thing all economists did agree on was that Americans must quit borrowing money so they could be solvent! 

Of course, today economists blame a sour economy
on citizens not spending enough.

In 1928 the newly rich had been borrowing money to buy stocks they hoped would rise in price, delivering a profit big enough to pay off their loans and make them rich.  They quit, letting the last spin of the roulette wheel of luck spin out what fate their luck would have them live with.   They quit borrowing money to buy cars, quit borrowing money to move into town, quit borrowing money to buy homes and -- as a last straw -- poor people were losing the right to borrow money to buy groceries with. 

Times were indeed getting hard,
but only for some people. 

To explore the Great Depression let's invent some definitions of money and explain the origin of money. 

  1. Money is a means of exchanging one form of value for another.  Clams are said to have served the purpose at one time, horses another, and gold for an extremely long time.
  2. Hauling gold around was more convenient than hauling horses, a pile of silver was prettier than a pile of clams.  They say that you can't get blood out of a turnip, but there have been times when a pile of turnips would buy a pot of gold.
  3. Paper isn't gold. Scrip is more than paper.  Scrip can buy gold.  Stock certificates look prettier than scrip.  Banks will loan out scrip if certain popular stock certificates are put up as collateral.
  4. Even after Archimedes leaped out of his bath tub, gold is easier to counterfeit than scrip is, therefore scrip was more valuable than gold was.  Way back in the Middle Ages pawn brokers would issue scrip for gold.  The promise was that their scrip could be converted back to gold a thousand miles away, therefore people began to believe scrip was as good as gold; and they called it money. 
    The same delusion grows through the use of MPC.  Military Payment Certificates look like scrip.  Outside certain circles MPC aren't worth the paper they are printed on.  But then, neither is scrip; Both of them are just convenient little lies that keep a big smile growing on the face of the Federal Reserve. 
    As long as your grocer accepted your dollar bills for his turnips you believed you've got genuine wealth in your pocket.  As a young man I bought 39 cent bags of potato chips that had 10 ounces of crunchy edibles inside.  Today I shopped the price of potato chips in the lowest price store in town.  10 ounces of potato chips cost $3.90 and that fact should tell you that something important has lost face over a seven decade time frame.
  5. As your grocer loses faith in your dollar bills, his turnips are priced a little higher; if this trend continues over a similar time frame -- as it did in Germany -- eventually your grocer will expect a big stack of your dollar bills for a little bunch of his turnips.  You, being hungry, will think you've found a bargain.

I have mentioned some of the theories of Alan Greenspan and Adam Smith.  There is one other way of stealing to discuss here and that is SWITCHING our accounting systems so that we can't tell what the economy is really doing until 5 or 10 years later.  For instance, Kennedy switched, Reagan switched, Nixon switched.

There will ALWAYS be another economist with a pet theory to expound.  Back in 1913 the United States began to sidle up to a whole slew of Austrian economists.  They were preaching strange realities similar in nature to   "The theory of money must take into consideration all that is implied in the functioning of several kinds of money side by side."  ~ Ludwig von Mises, The Theory of Money and Credit [1912]

That isn't patently false; it is simply a stupid sleight of hand used as an excuse for not understanding what money is used for, an exchange of goods.  The truth of the matter is, the VALUE OF ANY KIND OF MONEY IS EASILY DETERMINED.  Even Karl Marx could do it. 

For example, when the Dutch decided to buy New York they first had to convince the Native Americans that the value of used bearskin rugs was falling and the value of beads would soon rise to exhilarating new heights of value.  "Hey, if you don't believe us, ask your wife!" 

The values involved in that little deal were further complicated by the poor Indians believing that they were only leasing the building site for one year -- and eviction would be easy if the tenant contract was not renewed -- but we won't go into that translation problem at this time. 

What we want to concentrate on is that the Dutch did not offer to use their silver guilders to make the transaction go through.  Neither did the Native Americans insist that the transaction use wampum to be sealed.  Nonetheless, until the year long lease was up, both sides were HAPPY!  In other words, we don't give a damn if Zulus use ivory for money as long as THEY don't have something WE want. 

However, when the old Zulu chief wants to buy a Cadillac, he is the one that needs to accommodate US in the matter of choosing a medium of exchange.  He can cuss about it all he wants to but the Golden rule is at work here; the one with the glittering gold ducats rules the transaction.

Now that we understand what money is and why scrip was invented we're almost ready to revisit the Great Depression. 

However, we must understand that The Great Depression did not start in 1929; it started in 1913 when the personal income tax was invented and the Federal Reserve was born. 

  1. The Federal Reserve took our gold as collateral for the scrip (dollar bills) it printed for US. 
  2. The scrip we borrowed from the Federal Reserve was expected to be paid back (tee hee hee) with interest.  Scrip was traded for other values more easily than gold was, therefore the American people were easily persuaded that it was better than gold and it was expected to work harder than gold, therefore creating the buzz of wealth in the land.  It was hoped that when people had more scrip swishing throughout the land they would spend more money.  But that only works with poor people.  After all, you will only be invited out to dinner with a rich man if he knows you can pay the bill and give a munificent tip with a flourish.
  3. Each year the US couldn't pay the Fed what the US owed it.  Therefore, US were persuaded to borrow money from the Fed to pay the Fed what US owed it.  This amount of indebtedness was conveniently called "The National Debt."  The income tax was supposed to provide US with a cushion of hard currency to operate the Government on until the National Debt was paid off.
  4. Unfortunately, rich people - being smart enough to get rich - began devising ways they could pretend to lose money instead of earning it.  Issuing various kinds and grades of stock certificates was the most convenient method of doing that.  It became common practice for rich people to let corporations buy their dinners, tip the waiter, and provide them a place to live in as well. 
  5. Rich people would invest in corporations, send business its way so that the perceived stock values rose to dizzying heights, then extract their investment from the perceived increase in value and leave the suckers holding the proverbial bags.
  6. Consequently, thousands of people were making millions of dollars and millions of people were making thousands of dollars and billions of people around the world were wondering what had happened to their money. This created a fantastic bubble that did the jitterbug in a bath tub full of gin all the way up to about the end of 1929 -- when the bubble got so thin it busted.  It was like peering into poor old Al Capone's bank vault; There was nothing left inside but dust.  Who would ever have believed it?  In 1929 America had run out of fools!
  7. Instantly a cry went up in every corner of the land that the Government had to "do something" to keep all these newly rich people from jumping out of tall buildings - "or else the country would fall apart."  Just like in our recent spell of bailout-madness, nothing was done for the poor people on the excuse that by the time it was their turn America was broke by then.  Actually America was still immensely wealthy in 1929 and far from broke, as I'll explain -- and prove -- in a moment.
  8. During the Great Depression, Euromericans were given the jobs they qualified for -- at wages much reduced but still almost enough to live on, if they gritted their teeth and admitted they were delighted to eat turnips.
  9. Your Negro and your Native Americans were left to starve.  But, so what?  They were used to it.  At least the Negro could sell his vote and eat high on the hog once every year or so; Native Americans had no vote to sell and therefore they had to feed cactus to their children all year long.

Before proving that America was still wealthy and far from broke I want to acquaint you with two "facts" always incorporated into any financial theory.

  1. MONEY can instantly be made out of nothing, but
  2. WEALTH is always made out of something.
    There is also a third corollary to this that you might be interested in noting..
  3. The only way to become rich is to have something that other people (burdened with wealth) would like to have.
     
  4. Right now all you have to remember is the first two corollaries.
 
So, how do we reach the conclusion that America was not broke?  Before we heap any blame on the Government let's shed a little historical light on the tearful situation. 

We'll start with the enterprising young man
named Henry Ford.

Ford's Model A of 1927–1931 was not offered for sale until December 2, 1927. By 4 February 1929, one million Model A cars had been sold, and by 24 July, two million. You will note these easily validated sales figures happened during the roaring twenties with prices starting at a mere $500 each. When production ended in March, 1932, 4,849,340 Model A cars had been made, and sold -- in all styles. Therefore simple calculations prove that 2,849,340 Model A cars were sold at a minimum of $500 each -- AFTER the FINANCIAL PANIC called "The Great Depression" had seized the entire world.

Remember my theory.. nobody has money to spend unless they earn it -- or someone gives it to them. The conclusion is that during the worst panic ever to settle down on this nation, almost three million poor Americans still had money to spend, LOTS OF MONEY to spend.  Remember too that the other automakers that were manufacturing cars for richer people, were also making and selling vehicles during this same period of intense uncertainty.  THEREFORE, some Americans had to be making money --  How do we know? because they were spending money.  You can't spend money unless you have it. 

So, who was broke?  Yes, you got it, the people leaping out of tall buildings, who could not bear the prospect of working for a living; THEY were poor!.  "Why, I was actually rubbing elbows with power players and millionaires!  I can't go back to work on the farm, not and maintain my pride!"

Now, let's add even more circumstantial proof.  I call it the movie proliferation.  In order to go to the movies you needed money, and yet

  1. Millions of people were going to the movies. 

  2. With magazines, it was the same thing.

  3. Millions of people were buying them,

  4. Therefore somebody had to be earning the money or it could not have been spent. 

    Does that sound logical to you? 

"Pennies," you say?  "Nickels and dimes," you say?  Okay, let's fast forward a few years so you can count some big chunks of money.

Under the Lend-Lease Act a total of $50.1 billion (equivalent to $611,424,489,796 today) worth of supplies were shipped: $31.4 billion to Britain, $11.3 billion to the Soviet Union, $3.2 billion to France and $1.6 billion to China.

"Uncle Joe Stalin" ersatz friend of the immortal FDR said, "America will make the rope with which to hang themselves." He also said something to the effect that America would lend him the money to buy the rope. He wasn't far off the mark:  Russia received 100 million tons of woolen and cotton goods, plus 15 million pairs of prime leather boots, 4 million rubber tires and tubes,  375,000 trucks, 11,000 freight cars, 15,000 airplanes, 7,000 tanks, and 2,000 locomotives.  Uncle Joe is said to also have requested a few million condoms and specified they must be 18 inches long.  FDR is said to have had the goods shipped in boxes stamped with the words, "SIZE, MEDIUM".   It was a nice chuckle among wealthy friends.

When you quit laughing, I want to point out that this donation designed entirely to protect and promulgate communism was a gift; US did not make a cent off these "transactions." There were no sales made because no money changed hands.  We didn't even ask for good will.

Nobody owed US a dime; there was no debt because US had enough wealth to  give it away!  There were also a few other transactions where heavy equipment -- as big as battleships and as small as air craft -- changed hands and no receipts were even issued.  Then there was an entirely different program, launched in 1940, where Destroyers were nominally traded for bases.  Under the Bases Agreement 50 USN destroyers were transferred to the Royal Navy and the Royal Canadian Navy in exchange for basing rights in the Caribbean.

So, follow my reasoning here.. we didn't sell any of this; we were rich enough to GIVE it away!  Since we were in the middle of The Great Depression and NOBODY had made any money in the past 12 years -- this is obvious since we were STILL moaning in the Great Depression -- then, obviously, US were far from broke when the Great Depression started and we still had it when it was time for US to get into the war.

 

What IS Wealth?

I discovered Ted Pierce was wealthy when he and I met Shorty Davis one day.  Shorty said, "Working hard, Ted?" and Ted said.  "Yeah, I'm not rich like you." 

Idle words I would have thought.  But suddenly the conversation turned real.  Shorty replied sadly, "I'm not rich, I'm not even wealthy.  You -- on the other hand -- may not be what you call rich yet, but you are already wealthy, while I never will be wealthy or rich again. 

"You own all your heavy equipment, all your vehicles, Ted.  All your houses too are in your name, and you could borrow money from any bank in the state without offering collateral. 

"I -- on the other hand -- owe $240 million -- which wouldn't be any big deal except that every banker in the state would drive a hundred miles out of his way to avoid me." 

***

Rich governments have been claiming they were broke for a long time.  For instance, Good Old King George claimed US had to help pay for the French-Indian War that had (incidentally) put Canada into his pocket.  Yet he could still dish money out of a bottomless pit to finance his side of our War for Independence. 

And Alex Hamilton said western whiskey makers had to pay for the Revolutionary War -- and to make them pay it, he raised an army bigger than the Colonies had in the field to get rid of the British.  George W. rode at the front.  In less than 4 years even the EASTERN whiskey makers had agreed to pay a tax on whiskey.  Every drop of whiskey you drink still has a tax on it; US is still trying to pay off that old War For Independence debt.  The next thing you know there will be taxes on our tobacco and it will even be against the law to spit on the sidewalk.

But that's not the sad part.  The sad part is that every cent of your money is wasted because the government will have to borrow nearly 50 cents for every dollar it spends this year, thus exploding the record federal deficit past $1.8 trillion under new White House estimates to $3.73 trillion. Budget office figures released Monday would add $89 billion to the 2009 red ink — increasing it to more than four times last year's all-time high as the government hands out billions more than expected for people who claim they have lost jobs -- and the government subsequently takes in less tax revenue from people and companies making less money.

According to the television, the unprecedented deficit figures flow from the deep recession, the Wall Street bailout and the cost of President Barack Obama's vacations and his economic stimulus bill — not to mention his hiring 3,000 new staff members for President "I'm going to save you billions of dollars" Obama -- as well as a seemingly embedded structural imbalance between what the government spends and what taxes take in. 

Hitler needed an entire army of brown shirts before he cowed the sissified German people into submission.  Over here in the land of the free and home of the brave all it took was the Internal Revenue Service.  Hitler's Storm Troopers didn't even come close to making goosebumps as big as the IRS does.  Armed with the THREAT of their nine million page manual, friendly little, beady-eyed Internal Revenue Agents can bust into your home and steal all the money tucked away under your mattress and make you testify against yourself just as if the Constitution had never -- ever -- been written. 

But, every pre-war German still alive will testify under oath that THEY resisted Hitler.  Over here in America even tough guys like Al Capone folded under the pressure of a few IRS agents.

New York's upper crust is now
spending 52% of its income for taxes
and not a public murmur escapes sagging lips.

If you haven't captured the moral of that story yet, here it is in plain English.. The ONLY PURPOSE of individual taxation is simply to intimidate the American citizen.  It's kind of like the purpose of Boot Camp in the military.  "We tear men apart so we can rebuild them into soldiers," is how the recruiting sergeant said it to my grandson the other day.

Think about it, the ONLY possible reason we have 9 million pages of tax opportunities is to create confusion in the tax payer's mind.  Here's the proof.. Individual taxation is not necessary after the Gov discovered it can simply print new money at will, or raise taxes on imports, alcohol, tobacco, firearms or gasoline. 

Today we expect the Government to leap in at the first sign of any emergency and begin dispensing payola from its bottomless bag of bull manure.  Before The Great Depression, the whole state of Texas could suffer through a long, wrenching drought and not receive so much as a pack of seeds to plant a family garden from in the following year.  A sad shake of the head, a twist of the lips, and that was the end of that.  Politicians as far back in time as David Crockett would have understood perfectly.  "THE OBLIGATION TO GIVE CHARITY BELONGS TO THE INDIVIDUAL!" 

Things just weren't done any other way.  You took care of yourself or your self was not taken care of.  If the dust bowl happened today you would see the highly paid to be sympathetic agents rushing into the field to save the farmers from drowning.  Back when it really happened Henry Fonda had to pay for the Joad family's own road map to get to California; and the Joads discovered the welfare department did not care if they lived or died when they got there. 

Socialists like John Steinbeck, and communists like Helen Keller and Jack London, had to work strenuously to change the American public's inclination to keep charity on the personal donation level.  Even the immensely popular FDR had to use subterfuge to aid and abet Governmental intervention on the personal level.  His radical ideas shocked millions of voters; he had to tread carefully lest his own party supplied the rope to hang him with. For instance he had jumped all over Herbert Hoover for putting people on the dole, so he couldn't do THAT! Therefore he started a New Deal called social security that started paying dividends immediately! "No! I am NOT on the dole. I have retired on my social security earnings!"

In 1848 Abraham Lincoln noted that a good man could easily earn $10 per month.  President Lincoln invented the federal income tax in 1861 in order to finance the Civil War.  Being a very wise man, his plan only taxed the rich and wealthy.  That made everyone feel safe and secure from having to contribute.  Remember, anyone that could claim $90 per year in earnings back then was one of the big buck earners.  Lincoln's bill called for a 3% tax on any resident with an annual income exceeding $600  -- Taxing rich people has been all the rage ever since. 

But, our government was too efficient.  Acting independently of party dogma, Chester A. Arthur, our 21st President, tried to lower tariff rates so the Government would not be constantly embarrassed by annual surpluses of revenue. This Federal budget surplus had been accumulating since the end of the Civil War.

The income tax law was voted out in 1872.  It was tried again in 1894, but declared unconstitutional in 1895  President Taft proposed a new constitutional amendment on June 16, 1909 in an address to Congress that resurrected both an "income tax" on individual taxes and an excise tax "upon the privilege of doing business as an artificial entity and of freedom from a general partnership liability enjoyed by those who own the stock"

On February 25, 1913, the Secretary of State, Philander Knox, proclaimed that the amendment had been ratified by the necessary three- -fourths of the states, and thus had become part of the Constitution. Subsequently, the Revenue Act of 1913, an income tax of just 1%, was passed by the Congress.  BUT, ONLY THE RICHEST PEOPLE HAD TO PAY IT.

US was promised in writing that only an innocuous 1% tax -- only on the rich -- was to be collected.  Furthermore, US was GUARANTEED IN WRITING that income taxes would never rise any higher than 7% even on the rich.  You know what?  A few of our treaties with the American Indians lasted longer than that promise did!  Once it was realized that Americans had no backbone, taxes began to rise by leaps and bounds.  Just eighteen years later that tax stood tinkering and tottering on 25% -- Americans were being taxed at least 25 times as much as necessary.

At least?  Well, yes.  US was now throwing tax shackles on the wealthy citizens of the United States, not just the rich. 

Here's how it unfolded.  The government tried a measly little 1% income tax only on the rich and yet Congress was uneasy about possible reactions to the new fangled method of deteriorating our money.  When no sign of an honest rebellion ensued, the tax was quickly doubled and a confiscation of 2% became standard fare, and even then, only on the rich.

I'd be a lot richer if 2% was all they took from me today, wouldn't you?  2% instead of whatever you are paying, what? 40 -- 54%?  I have 6 daughters and one of them is paying 62%!

Congress has scudded up to 67% off the time-honored pledge that it was only going to SOAK THE RICH.  At first, only 00.7% of the population was part of that RICH portion of the population.  Then in rapid succession the back rooms of Congress designated "rich" to mean 3% of the population, then 10, 17, 25, 30, and 70%, and now it's all the way up to 92% of US workers are singled out as being rich enough to afford the privilege of paying taxes.  Where will it end?

Little Brother, it will not EVER end.  You should have seen it coming when ditchdiggers found out they were now wealthy enough to pay taxes.

Just 2 years ago Congress was publicly threatening to raise the tax to 75% on a certain few individuals if they didn't behave!  Little Brother, you just give Congress 15 more years and ALL OF US WILL BE PAYING UP TO 75% of our income in taxes if we don't behave!  However, in order to keep some money in circulation you will see citizens being taxed only half as much  -- but they will have to pay that much twice a year.

Money History

After 1913 the canny rich began migrating their wealth out of their visible means of support.  Because of taxes there was a wave of tremendous opportunities for the "middle class" to scoop up bargains left behind in stock. Unfortunately, the reason people are only middle class or poor is that they don't know how to handle their money.  To wit, they spend it on unnecessary products and foolish pursuits. 

One know-it-all in college told a grandson of John D. Rockefeller.. "If my grandfather was that rich I'd be buying everything in sight."  The grandson responded, "No you wouldn't." Then he went right back to waiting on tables so he would be well-trained for wealthy living.  Rich people KNOW better than to spend their money foolishly!

Not only did poor people spend their money unwisely, but newly headed corporations began throwing money around and the biggest bubble of wealth in the history of mankind unfolded around the world.  There was a big boom, and the inevitable little gentle bust converted millionaires into apple peddlers overnight, if they lived that long.

During the Great Depression that "Indomitable Citizen of the United States" meekly put his face down deep into the mud and kissed the hand that bit him until private assessments of up to 60% are now meekly accepted with gratitude; "At least I'm not rich enough for it to be me!" 

Little Brother;
it soon will be you, and me.

The point is, 106 years ago US could pay for everything US had a legitimate need for with only 2% coming out of the pockets of ONLY our richest citizens. 

For 102 years now any of the grumbling about high taxes was done in dark shadows of withered tea bags and came from lips that trembled in terror that they might be singled out as being heirs of their great American Patriot forefathers who protested long and hard. 

Free Books That Are PRICELESS!

Along with losing the right to own our own property US lost the right to privacy.  Tax collectors can now bust into your home without a search warrant and confiscate all your papers, receipts and deeds in an effort to ascertain just how much THEY think you MIGHT owe in income tax. 

Don't believe for one second that such invasions only happen to men like Al Capone; ANY citizen of the United States can be so invaded and his property be confiscated, sold at auction and then that citizen made responsible for any subsequent indebtedness guessed at and decreed by the invading agent -- and many are -- if they don't latch onto a crooked lawyer mighty quick. 

"Oh come on now; they HAVE to make accurate assessments by law.

No, SORRY,

The Feds didn't play that way with Al Capone, and because US let them get away with it, now they don't have to play that way with US either. The IRS goes by estimation and inclination just as it did with Al Capone.  Look, if they had assessed Al on what he actually owed; he could have paid it and laughed at the system on his way out of court. 

Back in 1931 the highest collection rate (but remember, it was imposed only on the richest people in America) was a mere 25%.  However, sales tax was nonexistent in 47 states.  In other words, people that still had money could still afford to spend it. 

I'm not saying Al didn't deserve the nick, I'm saying it wasn't honest the way he was done in by the Feds. By the same token, when you go face the IRS standing on your rights you will get socked in the gut much harder than if you meekly kneel down to put your face deep into the mud and kiss the dirty hand that bites you.

I repeat:  The ONLY purpose of individual taxation is simply to intimidate the American citizen.  It works. Every Time, it works.  In just the last few years, the amount of individuals and businesses with unfiled and unpaid back taxes has swelled to over 20 million people that are still facing the chopping block. That, Little Brother, is roughly 1/3 of the adult tax-paying population.  Joseph and the Pharaoh of Egypt are the only immediate candidates for a more comprehensive tax collection agency.

Here's PROOF:  By eliminating individual income taxes and the IRS bureaucracy the American public would save US 2 trillion dollars annually, in addition to the $11 billion in annual IRS operating costs.  Where do these figures come from? From adding up the cost to citizens to prepare their taxes and to businesses for purchasing legal beagles and accounting personnel to help them cut down on taxes.  We also have to be careful with using these figures because if our taxes ever are actually lowered substantially there will be a burst of production in a vain attempt to keep pace with consumer spending.

In Other Words,
Taxes have destroyed
the Value  of our Money!

In 1848 a really good man had to work really hard for a whole month to earn $18.  In the city of Chicago during the year of 1901 CE. skilled garment workers toiled sixty hours per week.  The average weekly wage of the dressmakers was 90 cents, yes, that is 90 cents per week.  The average weekly wage of pants finishers was $1.31.  The average yearly earnings of the dressmakers is therefore computed at $37; of the pants finishers at: $42.41 You've got to flip these figures over backwards in your mind to understand what is going on.

37 of our American dollars had so much value locked up inside them that they would hire a SKILLED laborer for a whole year!

Yes, and most of them were dining out and had the latest technology serving their needs at home. In other words, 80 cents would put a strong man's back to work for 60 long, hard, dedicated hours.

By the way, Citizens of Chicago are now paying 25% in sales tax alone.

In 1901 pants finishers only needed $1.31 per week to feed their family.  In 1913 the income tax was made legal.

By 1919 -- Just 6 years later --
 it took $11 just to feed a family of 5 for one whole week.

Item and amount Cost,
October,
1919
Item and amount Cost,
October,
1919
Meat and Fish Fruit
2 lbs. flank $   .32  3 qts. apples $   .27 
2 lbs. chuck .40  3 oranges .12 
½ lb. bacon .21  4 bananas .15 
1 lb. dried cod .20  ½ lb. raisins .12 
1 can salmon .27  1 lb. prunes .24 
Dairy Products Bread, Cereals, etc.
1 doz. eggs .61  12 lbs. bread 1.28 
1 lb. butter .66  2 lbs. flour .16 
½ lb. oleomargarine or lard .18  1 lb. corn meal .07 
1 lb. cheese .41  1 lb. rice .16 
14 qts. milk 2.10  1 lb. macaroni .16 
Vegetables 3 lbs. sugar .33 
1½ pks. potatoes .77  3 lbs. rolled oats .21 
3 lbs. carrots .12  1 pt. molasses .12 
2 lbs. onions .13  Tea, Coffee, etc.
3 lbs. cabbage .14  ¼ lb. tea .15 
2 lbs. dried beans .23  ½ lb. coffee .23 
1 can tomatoes .15  ½ lb. cocoa .22 
Condiments .11 
    Total weekly cost $11.00 

 The government started small and worked hard.. In 1924, before modern factories and the miracle advances of super electronics were on the scene, merchants, suppliers and manufacturers could all make a profit on a pair of pants which sold retail for one dollar -- a thousand miles away from the factory. And there was NO sales tax for customers to fork over.  Today the same quality of pants sell for $30 -- $70 a pair.  If they come pre-ripped and torn the price is a little higher, naturally.

Let's do some more counting:  At 10 cents an hour it took 10 hours of work by the common back to buy a pair of pants in 1900, but let's remember that was with no taxes to fiddle with.
At $4.25 an hour you'd still be working a whole 7.06 hours for that pair of pants.
Yes.  Yes, I know -- you are impatiently frowning at my stupidity again already, but we're not through counting yet.
From that $4.25 per hour before you can spend it -- because of increased taxes --  you only get to use $2.39 for spending purposes.  Therefore, in actual spendable income, when you revalue today's scandalized buck so you can compare it with yesterday's slightly sounder dollar you are only earning $0.096 an hour. That means that in spite of all the modern technology we now have that has increased productivity 340%, today's common laborer is earning less than the common laborer of 1900 was at ten cents an hour!  That's right.  In real money US poor people are earning less than a dime an hour. 

Okay, Okay. I'll concede that today's pants do look better on women -- if you will concede that by adding in the 14% sales taxes collected on that $30 pair of pants to our figures here – that the year 2000 workers would be even worse off.

"But wait a minute," you say. "That isn't the same money. Some people were working for 10 cents an hour back then, today they won't work for less than $7.95 an hour."

Old Buddy, the problem here is that it IS the same money.  You look at it again!  You study it good. A dollar back then still had the number 1 in front of it, right? just like the one dollar bill you see today does, right.  There are NO changes there, RIGHT?  One dollar then was written the very same way it is today.  $1.00  You will find NO CHANGES THERE EITHER!

The only change is how much highway robbery the American public is willing to overlook now.  Let's look back to a really bad era in America.  In an effort to describe how badly things had gone for the Confederates it was published that a cord of wood was selling for $60 -- Well, hoop di deux.  Today just a rick of wood (not a cord) regularly sells for $60. 

"Why, that means that we are twice as bad off as the rebels were when the Confederacy finally caved in!" 

No, I'm sorry.  It's worse than that:  The Confederates had to work for their money. Today the hewer of fire wood has access to chain saws instead of hand saws, trucks instead of wagons, and modern highways -- instead of mud -- and even with all that going for him, it still costs us $60 to get half as much wood.  In other words.. we need to surrender to Washington before we are stripped of every chip of kindling we will ever own.

If things keep going like this --
What does our future look like?


We Will Have Money,
We Will Have Wads of Money!

*

I am sorry to report that we are not finished laundering the bad news about money yet. 

Here's another lie you hear every day!

The national debt doesn't matter
"because we owe all that money to ourselves."

he-he-he

*

The Outstanding Public Debt as of 17 Aug 2009 at 09:37:51 PM GMT was:
 

$ 1 1 , 6 8 1 , 3 6 5 , 3 5 7 , 9 1 3 . 8 8
 

The estimated population of the United States was 306,752,611
so each citizen's share of this debt was $38,080.74.

"But, it doesn't matter, because we owe all this money to ourselves!"

Yeah, He-He-He!

The Government is always coming up with separation schemes, schemes to separate US from our money. Usually that takes the form of pretending that we can increase wealth by adding scraps of worthless paper to the economy. 

Well, since the government insists we owe all that money to ourselves, instead of paying it off, let's send out "pretend invoices" for the money we owe to ourselves, and when we get it, let's pretend it doesn't have to be paid -- since it would just come back to us as profit.

Here it comes in the mail today, our invoice.. for $38,080.74 -- you can see it, plain as day, and all you have to do is write across the front of that invoice, "I forgive this debt to myself" and your share of the national debt will disappear.

I keep hearing this myth -- and Yes, I do maintain that wet-noodle excuse for not thinking is a myth.  If we owed all that money to ourselves it would be quite painless for US if we just tell our Congressional Representatives, "Please put forth an initiative letting us Forgive Ourselves Of This Debt.  Just write it off the books and let's quit getting all worked up over money we owe to ourselves."
HEE, HEE, HEE!
Wait, where are these screams coming from that we hear all of a sudden?  Is it you screaming?  No.  Your wallet feels good.  Is it me?  No,  My wallet is fatter than ever. 

Well, somebody's in pain, and if we can find out who is screaming because we forgave ourselves this debt then we will know who the National Debt is really owed to.  

Even though we have been told for all our lives it was just owed to ourselves, somebody else is screaming.. therefore we are not the ones that the National Debt is owed to.  Why -- I believe that scream is coming from across the ocean.  There must be somebody over there that thinks we owe all this money to them.

The National Debt has continued to increase at an average of:
$2.17 billion per day since September 30, 2004!

Next month, the United States will pay $208 billion in interest alone on the National Debt. That is just the interest.

  • Interest buys us nothing,

  • stops nothing,

  • does nothing.

  • It doesn't buy levees. 

  • It doesn't build highways. 

  • It doesn't stop bullets. 

  • Little Brother, it won't even make bread rise.

  • The only thing interest can do is roll the debt over
    so the other side will be exposed for a short time of blessed amnesia.

Why do you believe this lie that we owe so much money to ourselves?

In the latest home investment racket Hillary Clinton, then a first term New York Senator, said the Federal Housing Administration

  • should stand ready to buy,
  • restructure
  • and resell failed mortgages
    in order to "strengthen" the ailing economy. 

    "Just as it has in the past, this kind of temporary measure by the government could give our economy the boost it needs and families the help they need," Clinton smirked in a speech given in Philadelphia.

First Term Senator Clinton then gushes on to reassure us: "It would not require a single new government bureaucracy, and would be designed to be self-financing over time -- so it would cost taxpayers nothing in the long run," she explained.
With her eyes gleaming brightly in the limelight, the right Honorable Senator Clinton then said she would propose legislation to provide mortgage companies with protection against the threat of lawsuits from investors who have bought the loans.
Uh,
Wait a minute. 

What was that she just said? " legislation to provide mortgage companies with protection against the threat of lawsuits from investors who have bought the loans."

Why do you suppose she would want to add this cute little stipulation? 

Why the fair lady tells us herself:

"Many mortgage companies are reluctant to help families restructure their mortgages because they're afraid of being sued by the investment banks, the private equity firms and others who actually own the mortgage papers," she said.  (My emphasis)

Oh, so it's the investment banks, the private equity firms
and others
who will profit from this measure! she is proposing!

(Remember, You can always tell who is benefiting most from any law by listening to see who squawks the loudest when it becomes threatened)

Therefore, whose economy will be helped by measures like this?  the investment banks, the private equity firms and others.

  1. The Bankers love her idea because all their risk will have been subsidized by US; they won't have lost one yuan over this deal.
  2. The buyers won't lose any money so long as they hang on and cry piteously for a bailout.
  3. The high-level group of economic experts won't be overwhelmed with distress either because they have every intention to charge Big Bucks to produce relief to soiled economies.  Senator Clinton proposes this new transactional horizonal change be led by former Federal Reserve Chairmen Alan Greenspan and Paul Volcker -- and, oh yes, former Treasury Secretary Robert Rubin. 
    Do YOU associate any of t
    hese names with solid, economic relief?
  4. The Mainland Chinese are happy because -- to keep its economy from tottering -- the U.S.  will again be borrowing more money from China

That's kind of like my buddy John that made it through the winter months by buying groceries on credit from Cecil.  November rolled into April and John owed Cecil big time bucks, and moved on to buying groceries from another source, on credit.  Angry and frustrated, unpaid Cecil sent a friend to find out why John wasn't paying his bill.  The answer came back,  "Why, Cecil won't even wave at me any more, why should I pay him?"  From then on, when Cecil met John on the highway he would wave his hand back and forth -- all the way across the windshield.  Still no money was forthcoming, so Cecil sent his friend back to find out why.  "Cecil is waving at you just as hard as he can." 
"Yes," said John.  "He's doing real well and I just want to see how long he continues to wave at me -- without getting paid."

By the same token, China did not make US go into debt with it; our greed did.  US made Treasury bonds available to China because there weren't enough fools left in our own country to keep playing footsie with a currency already bankrupt to start with.

Is the U.S. the only country playing footsie with  its economy?  Oh no.  The United States is only moderately deep in deux-deux and has only a mere $12.3 trillion worth of external debt and a $14.6 trillion GDP for an 84% debt-to-GDP ratio.   Switzerland’s external debt of $1.3 trillion equals 433% of its $300 billion GDP.  The United Kingdom’s external debt of $10.5 trillion equals 456% of its $2.3 trillion GDP.  Ireland’s external debt, at $1.8 trillion, equals 900% of the country’s $200 billion GDP.  Do you have the nerve to drop down into Greece -- or South America and ask how well those governments are doing at being honest with their citizens?

Sometimes I get to thinking every politician on earth
is either stupid -- or thinks we are.

Back when money HAD
to be worth something
How much
could
real money buy?

An estimate by James R. Rawl indicates that there were 650 whaling vessels grossing 193,000 tons and manned by 16,000 officers and men active in the sperm oil industry just before the American Revolutionary War.

To equip those 650 whalers for just one voyage required an aggregate of

100,000 barrels of flour at six dollars a barrel,
32,500 barrels of corn at 70 cents a barrel.
6,500 bushels of beans at one dollar and twenty five cents,
1,300,000 pounds of tobacco at eleven cents a pound,
65,000 bushels of potatoes at thirty five cents a bushel,
650,000 pounds of rice at three cents a bushel,
325,000 pounds of cheese at eight cents a pound,
325,000 pounds of butter at seventeen cents a pound,
3,900 barrels of vinegar, averaging three dollars a barrel,
404,000 pounds of sugar worth around eight cents a pound,
404,000 pounds of coffee at ten cents a pound.

Therefore, from before the Revolution to 1919
inflation was so bad that it took half a dollar
to buy what ten cents could buy back when
Americans were protesting high taxes.

Almost 100 years have passed since that 1919 plateau; I'll bet that today ten cents won't even buy a whole cup full of 99.7% just plain hot water!

If you ran out of gas on a trip when I was a kid you could always leave your spare tire behind and raise enough gas money to get home on.  Today you can't even leave your car behind for enough gas money to get home on!

Maybe you remember when a quarter was worth a gallon of gas? We could take a dollar down to the gas station and buy four whole gallons of good gasoline!  Not only that, the station attendants washed the windshield, checked the oil, and inflated the tires properly without asking for more money.

At that time our dollar was still backed by copper, and by real silver, and even a little dab of gold when necessary. 

The green stuff that the Fed fobs off on you now won't even buy a fistful of Monopoly Money.

Why Do US Keep Printing More Money?

The answer is, "We NEED MORE MONEY circulating!" That has always been the government's excuse for printing more money.

The real reason is the exact opposite; It is much easier to print more money than it is to pull teeth out of tax payers.  Indeed, it would be much, much easier to print more money than it is to raise taxes -- but the myth must be continued that "We are only going to make rich people pay for this -- whether they like it or not." 

That sounds ominous for the wealthy, doesn't it?  But take heart, It's time for me to display the good news.  97% of the people in Congress have become wealthy, and I don't see a single one of them becoming more destitute.  Do you?

Here's another myth; Money makes the world go round, therefore we need to print enough money to go around the world.

Is that a true statement? 

No, huh, uh!

Printing more money just makes money worth less, and that cheats the poor people that have worked hard for their money -- and poor people are what makes our money valuable. Way back in 1935 when our friend Rooseyvelt confiscated all the gold still left in America, what we should have done was make our money more valuable BY DIVIDING IT.

Divide it?”

Yes. Money is a whole lot like real estate. If you have a thousand acres worth $1,000 an acre you can make it far more valuable by DIVIDING it up so more people can take advantage of that location.

How can you divide money up?”

Take the good old American dollar. It will have to be an old dollar because the Representatives of the people have been savaging our economy for their friends ever since Hamilton got his face plastered on a piece of paper. So yes, let's go back to gold for just a moment. Tricky Dick said he had to take US off the gold standard because there wasn't any gold left to back up our dollar.

I won't go into the stupidity we the people let bring us to that point. Let's just make it status pro quo. Virtually every ounce of gold we had has been shipped off to pay for our little affairs outside the country. Yes, yes, don't argue this point. If we had owed it to anyone in the United States then our gold would still be here. It might not be ours individually but it would still be here with men like Charles Schwaab grinning broadly while we paid the rent for the storage shed that protected their gold.

But I will say that the only reason our gold was frittered away is the same one that has our country bankrupt today: we (collectively) have been spending more than we have earned.

When Truman found out he could raise the debt ceiling by telling US we could pay it later he introduced the science of buying our votes on our credit. Subsequently, he had four times as much money to spend as ALL the Presidents before him combined!

Okay, let's get back to status pro quo again so we can take off in a different direction. The status is that 35 paper dollars were worth an ounce of gold before Tricky Dick tricked us off down the primrose lane. But let's go down another lane and divide our money up by guaranteeing that 10 paper dollars were worth an ounce of gold.

Huh? You're going in the wrong direction.”

Oh, if we had started behaving ourselves in a sensible financial manner before Roosevelt burned our crops in the field or confiscated our gold then we could have done this one little step at a time. $34 an ounce, $33 an ounce, $32 an ounce, you know, etc..

One step at a time, we could have made our money more valuable again, and because it became more valuable – like real estate does when it starts getting scarcer and when we need it more – we could have sub-divided it.

You younguns will have to imagine a time when a silver dollar was made out of silver but I can assure you that once upon a time our money was so valuable that a single dollar bill would buy a whole ounce of silver, and a quarter would buy – HEY, a quarter ounce! Amazing what systems those old fogeys dreamed up, isn't it? Let's drop on down a bit here and invent pennies that are worth their weight in – copper. YES!  Once upon a time, our three-legged money was backed up by three basic metals. 

A $1.00 bill would buy 1/34 of an ounce of gold. 
A $1.00 bill was worth 1 ounce of silver,
and a $1.00 bill would buy 100 grams of copper. 

I'm only 72 years old and I can personally remember vividly being able to buy two pieces of candy for a penny. 67 years have passed, you take a penny to the store today and tell me how much candy you can bring home for the party.

But, if we had come to our collective senses and sub-divided our money back then, today a penny would have bought a pound of candy.

HUH?”

At first, that kind of thinking boggles the mind, doesn't it? It's about the same feeling George Washington would have experienced if he had been told that one fourth of an acre could be worth a million dollars. Why, his ersatz wooden teeth would have fallen right out of his mouth, his incredulity would have been so great.

“Where? Where at is this property so valuable?”

New York, New York City to be even more precise. George, these little wooden buildings will be chopped down for firewood and up, up, up higher than the tallest tree you can imagine, will sprout these buildings of steel and concrete that can hold thousands of people at one time – thousands and thousands of people at one time, and every one of them can be taxed to pay the President's salary and buy him some of your favorite wine.

By this time George has gone out cold and is stretched full length on the concrete sidewalk. Let's step around old George and hop on down this new trail we have discovered.

Yeah, let's throw our shoulders back bravely and be REAL proactive here, since you haven't fainted yet. The reason money fuels the economy better than barter is because it changes hands easily. Once upon a time 34 paper dollars was worth an ounce of gold. We need more money to change hands so everyone can feel like their palm has been greased. So let's make 34 CENTS worth an ounce of gold. Hang on there. If you will just think of this step like real estate you won't be lying down there on the concrete beside George on the sidewalk.

Now remember, we have only gone back a few short years. "Yes, you said Good britches only cost about $5 a pair back then."  No, no. you've got it all wrong.

Back then, 5 paper dollars would have bought a good pair of britches, I think you call them jeans these days and you pay from $50 to $250 for almost the same quality I used to wear – my britches sold for $5 but your jeans go for $50; who was smarter? Me then or you now?

So, what we are going to do is sub-divide our money so that a pair of PANTS can be bought for 50 CENTS again. In other words, after sub-dividing our money, 50 pennies will now buy a pair of pants. Same quality, and they look just as good on girls as ever, wonderful, huh? Wonderful, gleaming, brand new financial policy – sub-dividing our money.

Let's grab that penny by the nape of the neck and shake it a few times until it is sub-divided into 10 units that we will invent the word MILLS for. We now have some new coins to work with. Ten 10 mill pieces would be equal to one of those new pennies. No wonder people are willing to work for 7 cents an hour. Study this real hard now so you can understand what is going on. You will realize that when people are willing to work for 7 cents an hour -- then 7 cents is worth an hour of labor. 

American farmers never would have let Roosevelt burn their crops if their money had just been sub-divided.  Onward >>>

Incidentally, I see one "numismatic expert" claiming there has never been a "mills" coin before.  He must be one of them there young whippersnappers.  When I was a kid, back in '45. I found a roll of them.  They were made of tin.  Yes sir.. back then our money was backed up four ways,

  1. by gold,
  2. silver,
  3. copper
  4. and tin.

In our sub-divided money we will also have a 50 mill piece and a 25 mill piece, a 10 mill piece and a 5 mill piece. That would make a penny as good as the dime was yesterday. George, are you still down there on the sidewalk? Stand up like a man and look at this new money we've got. That worthless piece of paper with your picture on it is now worth almost a whole dollar again!

Why call our new coins “mills?” The word mill goes hand in glove with a basic unit of taxes called MILLAGE. If the tax collector accepts them, who can argue with the name of this neo-terminology?

Okay, we have sub-divided our currency,  Now the farmer can pay off his mortgage for ten cents on the dollar.  Now, WHO is going to work for less than they were getting?”

Well, I'm glad you asked. Let's start with those public-spirited servants in Washington D.C.. I'm sure they'll be glad to work for less than they do now.  It makes sense to me that we start out by paying them what they are worth and see where we go from there.  Oh, and strip away all those perks too that they have gotten so used to -- great retirement -- wonderful health care -- the whole nine yards.

Them? Take a pay cut? Why Lin Stone, that's the dumbest thing you've said today! Them people want more bonus for all the mistakes they make than if they had run a big corporation into the ground!”

Why, that can't be right!  Back in 1847 they were glad to earn just $8 per day.  Why shouldn't they be happy with $80 a day?

But, I guess you're right.

We might have to take a club to them.

There wasn't enough taxes to fiddle with when wages were stopping at 10 cents an hour at the turn of the 20th century. Even as late as 1942 sales taxes were still only 1/10th of a cent per dollar in most areas.  Today the average wage earner is paying 31.2% in taxes on every dollar earned, according to the Wall Street Journal.  From 1800 until 1942 the value of money remained relatively stable -- or at least they did when compared to the financial explosions in our recent history.  From 1942 until 2000 your one dollar bill literally became worth ten 1942 cents.  How much is it worth today with ANOTHER 691,000 American jobs going overseas this year and 20 millions of illegal aliens stealing the jobs that were supposed to be left to keep US poor people from starving?

I want you to take a good look at what's been happening --

As recently as 1950, all the individual income taxes collected by the Feds only came to $17 billion.
With a population of 150 million, that means that every man, woman and child in the U.S. would have been paying an equal share of $113 per person, per annum. Just 38 years later the Feds collected about $400 billion in individual income taxes from a population of only 250 million. Get your calculator out because that means that our equal share came to 14.159292 times as much, or $1,600 each. Now I ask you this question: Why then aren't workers earning 14.159292 times as much as they did in 1950?

Remember too, during this same period, states sales taxes have gone up an average of 70X -- from 1/10 of a cent on the dollar to 7 cents on the dollar.  Yes, I know more than one state now has 14% going for them, but that is just letting US know what the future will taste like, let's continue.

An article in the Wall Street Journal (which I depend on for most of my news) indicates that New Jersey officials have been negotiating a temporary bank loan of as much as $2.25 billion to plug a cash shortfall 

Minnesota Is Headed For A Government Shutdown

In 2011, the average Cook County suburban household will owe a $33,000 tax bill. Your average Chicago household is on the hook for a minimum of $66,000.

Cook County in Illinois and the 553 local government bodies under its purview cannot be bailed out on these debts and obligations.  Illinois lawmakers rejected Gov. Pat Quinn's plan to pay off the debts through a bond sale.

Why? You might well ask.. Well, Illinois borrowed $3.7 billion to make its annual pension payments early this year.  Consequently, even the 67% state income tax and 46% corporate income tax increases approved last January will not cover the backlog, which means the debt will roll over to another fiscal year on July 1.  In other words, the state of Illinois is broke and worse than broke.. Illinois is so broke that not even Sears and Sawbuck can bail it out. As you've been learning, the Federal government nears default as well. 

We have been bought, and now we are being sold.

Do you remember when so many citizens (not me and maybe not you either) received a few hundred dollars from the Feds as a spending incentive, destined to shock the depression out of existence?  Well, now you want to remember the event where Obamanix are asking Congress for a $600,000,000,000 tax increase to pay for that spending incentive -- that didn't work.

Joseph didn't sucker the Egyptians as much as we have been suckered.

So here we go over the mountain top and nothing in view but a steep, downhill slide. Every level of government known to Americans is reeling in a death dance with impossible debt.  Ever since 1913 US has been told to donate more, and more and more.  But ask yourself this,

Has it helped us poor people any?
  Has the price of license plates gone up? 
        Are you now contributing more to that social security fund that's always "going broke" --  until they need to borrow more money from it.
          Have property taxes risen slightly?
                  Are you paying more than fifty cents a gallon for gas?  Isn't it time to admit there is a conspiracy going on, a conspiracy against the poor man?  As one great man said, "Put two or three men in positions of conflicting authority. This will force them to work at loggerheads, allowing you to be the ultimate arbiter." ~ Franklin D. Roosevelt  

He also said something even more profound..   "In politics, nothing happens by accident. If it happens, you can bet it was planned that way. ~ Franklin D. Roosevelt. 

All right, it is time to go on a vacation to Alaska. 

For reasons that have a lot to do with its sheer size, sparse population and harsh environment, Alaska has some of the highest health care costs in the nation; the most expensive insurance premiums, according to one key measure; and just one insurer in the whole state writing individual policies.
$700-a-month cost of coverage under Obamacare and decided he would rather take his chances and hope he doesn't get seriously hurt or ill.
Many people in Alaska are frustrated with the cost of required health coverage under President Barack Obama's signature law and anxious about what the future holds, with President Donald Trump so far unable to deliver on his promise to repeal and replace it with something better.

Income-based subsidies are available under the Affordable Care Act to help many Alaskans buy insurance. But not everyone qualifies, and so some choose to go without.

As of 2015, 13 percent of Alaska residents were uninsured and potentially subject to fines under Obamacare, according to the Kaiser Family Foundation, citing the most recent figures available. Five states in all were at 13 percent. Only Georgia (14 percent) and Texas (16 percent) were higher.

Hutton, who lives in the fishing village of Kasilof, has so far managed to avoid any serious health problems and said the amount he has paid out of his own pocket for medical care, plus an Obamacare tax penalty of $700 for not having insurance, are far less than the premiums he would have faced.

Many people in Alaska hold down rugged jobs or enjoy outdoor pastimes that can lead to serious injuries and chronic ailments, such as bad backs and knees. At the same time, Alaska has some of the nation's highest rates of tuberculosis, chlamydia and suicide. Alcohol and drug abuse is a major problem, too.

With many places in the state accessible only by air or water, some people who suddenly get very sick have to be flown to Anchorage or Seattle. A medical evacuation can cost $50,000 to $150,000. Even ordinary visits to the doctor can be problematic, in part because of shortages of primary-care physicians.

Alaska's biggest cities — Anchorage, Fairbanks and Juneau — rank at or near the top among the nation's metro areas in the cost of a doctor's visit, with Juneau the most expensive in the country at nearly $189, just above Boston, according to the Center for Regional Economic Competitiveness.

The attitude toward Obamacare appears to reflect something essential about Alaskans: They can be a stubborn, skeptical bunch with a libertarian streak. While Trump won the state with 51 percent to Hillary Clinton's 37 percent, the biggest voting bloc is independents, who outnumber registered Republicans nearly 2-to-1.

Alaskans often take great pride in their toughness and resourcefulness and have been known to bandage their own wounds or use a staple gun to close a leg gash.

"There's no use in going to pay a thousand dollars for someone to wrap up your ribs in a bandage," said Bryce Reimer, a 25-year-old audio and lighting technician from Wasilla who wrapped his own ribs after a car accident because he doesn't have health insurance.

The health plan that is often used as a benchmark for comparing coverage from state to state, for a 40-year-old nonsmoker, costs $927 a month before any subsidies in Alaska, or 2? times the national average, according to the Kaiser Family Foundation.

While nearly every Alaskan receives an annual check of typically more than $1,000 as their share of the state's oil wealth, that doesn't necessarily go very far in a place where the late-winter unemployment rate in some communities is around 20 percent and where the difficulties of delivering goods and services contribute to a cost of living so staggering that a gallon of milk can cost $10 in some rural outposts.

Also, many Alaskans work jobs where the amount they earn can fluctuate wildly, depending on such factors as the weather or the size of a salmon run. Because of that, some people cannot be sure whether they qualify for subsidies from one year to the next, or whether they will be able to afford coverage once they have signed up.

Juneau resident Bonnin Jarvill, who fishes for a living, said her family's Obamacare-subsidized policy of $360 a month is affordable, but the family deductible is a daunting $14,000.

That's worrisome because their income can vary depending on how many salmon and halibut they catch, they are still paying off bills from last year's fishing season, and they are trying to set up a plan to pay off her husband's recent hernia surgery. They live on their boat with their 4-year-old daughter.

Jarvill, 30, said she and her husband plan to see if they qualify for Medicaid. If not, they may have to ask their parents for help.

"We feel like at this point in our lives we should be able to take care of our family," she said. "It's frustrating to receive help."

Nearly a quarter of Alaska's 740,000 residents are covered by Medicaid, which Gov. Bill Walker, an independent, expanded as part of the Affordable Care Act to include more lower-income people. Only about 19,000 Alaskans get insurance on the individual market, resulting in a tiny pool across which insurers can spread costs. The number of insurance companies writing individual policies in Alaska dropped from five in 2015.

Last month's dead-on-arrival GOP health care proposal would have jacked up premiums on Alaskans even higher. Rep. Don Young and Sen. Lisa Murkowski, both Republicans, had raised serious objections, saying they wanted to see something that would reduce costs, increase access to care and protect Medicaid recipients from cutbacks.

In the meantime, many of those who gained coverage under the law or have affordable plans are fearful about losing their lifeline.

Public relations photographer Lisa Seifert, 55, of Anchorage, qualified for expanded Medicaid last fall after going without insurance for years because it became too expensive. Car accidents and years of lugging around camera equipment have taken a toll on her body.

"I just hope it doesn't go away," she said of her Medicaid coverage, her voice faltering. "Where would I be?"

———

The Minimum Wage Myth

The easiest way to pry more of our money from our pockets was to persuade US that we had more money for them to steal, therefore Presidents and Congress keep shouting about the necessity of raising the minimum wage -- as if that were going to help US poor people get over what the Government is doing to US.

Here's the real trap of raising the minimum wage to artificially compensate for inflation.  Any time our wages go up we naturally pay more taxes. But that's only the trigger, beau.  Within 3 weeks of our last minimum wage raise, bags of cookies and candy that had been selling regularly for $1.00 a pound went up to $1.25 and some brands went up to $1.49  OR, the weight inside the bag was reduced along the same lines.  Who is this process hurting?  Not your Congressman!  Rich people seldom grumble about the little things for more than a few seconds: it's the poor boy -- like you and me -- that suffers.  Before the minimum wage went up, 52% of my income went for groceries.  After it went up, 67% of my income went for groceries.  Joe Blow down the street from me was only spending 27% of his income for groceries, and now he's spending 31%.  Who's hurting most because the minimum wage went up US poor people, that's who!

Raising the minimum wage is the exact same thing the French Royalty did when they removed the tax on salt because open rebellion was so imminent, and then quietly added double taxes on sugar -- or something else – so they still had just as much money coming in.  Are we going to go home and wait for a Napoleon dictator to take over our country -- like the French did?  There are demagogues trying to do just that, right now.

When the minimum wage is raised we get a check with bigger numbers on it for all the hours of work we do. Within just a few months the only difference a poor man can see is bigger frustration because the price of everything else has risen to keep pace with his artificially inflated pay check.    Then we have to pay more taxes because we have slid over into a higher tax bracket.  This lets the government grow accustomed to spending more.  What we end up with is we have less than ever, and have to work harder to catch up again.

On top of that, every time wages go up now,
politicians insist that the millage at which all
of our taxes are collected must go up as well
because THEY just can't cope with less.  

If that is true, then why do they expect US to cope with less?  Oh yeah, I forgot, US poor people are the servants of those Washington Bureaucrats and their cronies.

Stop the Sham!

We don't need higher wages.  If the government REALLY wanted to help us cope financially there is only one thing that really works:

They can REALLY Lower our taxes -- instead of playing games with our money.

It now takes TWO wage earners per family where one working used to earn enough to keep body and soul together.  Even worse, instead of solid money, we are being paid off with money subject to constant theft by the inflation caused by these very politicians that promised us the moon if we would just elect them to office.

Not only are we being taxed --- that dollar earned today will only buy 92 cents worth of goodies tomorrow, and 80 cents by year's end. Before the decade is gone, it won't be worth a plugged nickel -- leaving us to scramble for our own old age security.

The Typology of Financial Scandals
Can you recognize a scam?

***

"Money is better than poverty,
if only for financial reasons." 
Woody Allen

This country, with its institutions, belongs to the people who inhabit it. Whenever they shall grow weary of the existing Government, they can exercise their constitutional right of amending it, or their revolutionary right to dismember or overthrow it.  -- Abraham Lincoln.

*

Governors and mayors
all across the land 
are slashing taxes for 
and making loans to 
foreign companies in order to induce them to bring their management system in for us to suffer under. Newspapers herald such events with huge banners screaming:

CHRISTMAS 
COMES EARLY
For Our Community

Well, for goodness sakes,
if these foreigners are so much smarter
than we are then it is high time for US to:

import some foreign politicians!

The ones we have
aren't doing US any good.

EVERY MAJOR WAR
has precipitated a departure from the gold standard
and the advancement of legalized counterfeiting.

Nothing generates enthusiasm like seeing genuine hope instead of tricky promises. With more money out there to grab, more people will be hustling to get an honest share of the increase. Even those whose ventures fail will be throwing money back into the system at the grass roots where it is needed. Those whose ventures succeed will be creating more wealth at the ground level by working more efficiently than ever before, which is the very foundation of our national wealth.

Henry Ford perfected the process of deliberately putting more money into the hands of common laborers. Suddenly, the best people anywhere wanted to work for Ford.

This galvanized his entire operation.
By paying more real money, Henry Ford got better help.
By getting better help he reduced prices.
By reducing prices he made more sales.
That meant that more people could be hired and there was more money to spend on improvements.
It also meant that other manufacturers had to pay their good workers more, because if they didn't then they would lose their best ones to that hare-brained mechanic: Henry Ford.

More importantly, it gave common people money to spend right where it did the economy the most good.  Unfortunately, when the government saw that workers were earning more, politicians began wanting more than their share.

There are three basic ways for the government to get more money from us:
take it away by raising taxes,
borrow it and let US pay the interest,
print more paper without backing it up. 

Our government did all three, then did it again, and again, and again.
Each time there was a plausible excuse for the "necessity".
Each time, US poor workers ended up with less left in our pockets.

This isn't anything new.  It has been going on since long before William the Conqueror was a little baby.

If our money had at least been founded on something of solid, substantial value, it would have taken much longer for our pockets to come up plumb empty while Congress is voting themselves yet another pay raise and inexplicably experiencing a dramatic increase in the fortunes of their family and friendly cronies at the same time. To stop this travesty of justice, our monetary system must be founded on a commodity whose value never changes; and we must cast our tax structure in concrete so that it never rises.

If there were just some way we could make sure the value of our money is always the same, then the price of everything else will always reflect the precise value of that product or service to our society at that time. Consequently, the true value of the gross national product our country is able to produce would only rise and fall in the absolute terms of genuine wealth, never in false hopes or glittering promises.
Gold won't work.
Nor will silver.
When gold was our standard, Fort Knox was flooded with 
the stuff and it wasn't even earning interest.  
(All the gold we do have left there now is in hock.)
Keeping our gold bricks in a dungeon
didn't keep the dragon on a leash.
Our gold was just sitting there useless when it could have been working to make us more wealth.
Where is the sense of that?

If there were just some way we could make sure the value of our money is always the same, then the price of everything else will always reflect the precise value of that product or service to our society at that time. Centuries ago, in the still widely studied book The Wealth of Nations, Adam Smith makes these shrewd observations: "The real price of everything, what everything really costs to the man who wants to acquire it, is the toil and trouble of acquiring it."
He added: "By (measuring) the quantities of labor we can, with the greatest accuracy estimate it both from century to century and year to year."

In other words.. If we had to work an hour to buy a pound of sugar in one century and now we have to work two hours to buy a pound of sugar in the next century then we have lost half our buying power and we are working twice as hard as we used to be – no matter how much bigger the figures are on our paychecks. 
As Adam Smith so ably points out, this precise kind of measurement cannot be done with any other substance on earth! The cost of everything we have can be measured by how many hours we had to labor in order to purchase it – not just the sticker price ($0.99) but the sticker price PLUS the taxes. ($1.13)
Do you remember the Lord talking about leaving three of his managers with talents?  Well, he was not talking peanuts there; one talent would buy the services of a poor man for 1,000 DAYS.
Now, with modern technology assisting us, the work can get easier, but within an earthly frame of reference, time never changes. An hour only has sixty minutes in it. A minute only has sixty seconds.

Therefore, if we anchor
the value of our dollars
to units of time spent in labor
then our economy is locked into reality.
To begin anchoring our money to time all we have to do is make the value of one dollar equal one hour of time at work.

One of our hours of time would equal one dollar. If every dollar you earn today is worth one hour of time when you retire then every dollar will still be worth one whole dollar even one hundred (or one thousand) years from now. In fact, if technology continues to improve, a dollar will actually increase in value. But, it will still be worth one hour of time.
Each one of us has 24 hours of time allotted to us each day. No one has any more than that. None of us receives any less. We are all equal in this respect. Through diligence, leverage, practice, training, education, efficiency, planning, or strength each of us has the opportunity to make the results of our time invested in work be of more value than the results of time at work invested by those around us do.
That is immaterial to the equation.
Time has not been stretched, or altered.
We still only have the same 24 hours others receive.
So, let one hour of time at work equal one dollar.
Let one dollar be worth one hour of time at work.
Obviously, if one dollar is to be worth one hour of time then
someone must be willing to provide one hour of work for that dollar.
There are those who (forgetting the all too recent past) will claim that one +dollar an hour is too little to work for. That idea comes from looking at one of the paper dollars in our midst today, which won't even buy half a loaf of good bread.
However, just as a pair of pants was only $1.00 when wages were 10 cents an hour, if one dollar is worth one whole hour of work, then it necessarily follows that one (time) dollar will be worth enough to purchase just as much pants that one hour of work will now produce.
After the conversion happens all of our numerical prices will rearrange themselves to fit the new value of our currency.  
Better yet, as the results of our labor improve, the purchasing power of our money will increase.

The question comes up to many a mind, why not make one hour of time worth $10 so that it looks like we're earning more now than we are. 
That might be great, psychologically.
Unfortunately it would also put a devastating strain on the value of the coins we have to manufacture.  At $10 an hour a penny made of copper would cost us far more than a penny to make.  But, if our wages are one dollar an hour then a penny made of copper would cost far less than a penny to make.

We must save our pennies,
to keep Benjamin Franklin happy.
This will accomplish two important goals.
#1, it will insure that the elderly and the poor
can always get work done for them inexpensively.
#2, it will guarantee that prices for wages, goods and services are always quickly stabilized in spite of swings caused by fluctuating supplies and demands.

General, common wages cannot go up excessively because people can have their money redeemed at one hour per dollar at any time. Our wages cannot fall below $1.00 per hour because the dollar is redeemed with labor. With our wages stabilized along with expenses, vendors will be compelled to maintain lower prices in order to remain competitive.
Consequently the bargains you see will be real bargains.
With this done, our money now has a solid redemption value which we can depend upon throughout our lives. A dollar earned in our youth cannot lose its value before our retirement. And if by our diligence, intelligence, wisdom, leverage, planning or training we have gathered more than those around us, then we shall reap more abundantly than they in our golden years. Inflation shall not rob us because inflation has been stopped dead in its tracks.
Naturally, each generic dollar is only worth one hour of general labor. It cannot therefore be redeemed for an hour of time from any specific person. Nor can it even be redeemed for the labor of a specific skill category. Since the dollar you own is generic, the laborer performing the redemption must be selected by chance.
This is in the redemptive sense only. The redemption of our currency is only desirable when its value is perceived as greater than available through normal spending habits. You can SPEND your money with anyone, or anywhere; it can only be REDEEMED from a labor pool selected by chance.
This precaution insures that there can never be an over abundance of currency put into circulation on us. And that in times of expansion the economy can be supplied with enough currency to fulfill the measure of its purpose. It therefore follows that to obtain that pool of labor a continuous supply of laborers must be generated.

This is a navigational menu tool.  Click anywhere to find a new and exciting exit to something we have that is wild and wonderful.

This is done by a citizen conscription.

Anyone wishing to obtain citizenship shall, besides the requirements already made for naturalized citizens, be required to provide One Hundred Hours of their time to the labor pool. Only by freely providing these hours can anyone become a citizen.

As each call for a redemption comes in, the next person on the list goes out, even if the grease trap needs cleaning or a yard raked. No more than 8 hours a day would be required of anyone at a time. When not on call, people in the pool could work anywhere else. However, their citizenship cannot become operative until all one hundred hours have been submitted.

Only those who value citizenship will put forth the effort to become citizens, thus ensuring a better class of voter. As their desire to become citizens is the power which provides the value of our currency, hard working new citizens will be welcomed. To make citizenship even more meaningful, only full citizens can own real estate, vote, hold public office, or possess firearms.

Once their price for citizenship has been paid, any citizen may return to the labor pool at the head of the line for as long as necessary to sustain themselves until able to earn a living elsewhere, only now they KEEP every dollar they earn, and the Treasury does not get a cent.
In other words, when the job market shrinks those people who are already citizens will have the privilege of securing what work is available at the lowest rung of the labor ladder, IF they need to. This is the safety net which insures there need be no homeless or financially helpless.
As long as there is money wanting to be redeemed then citizens will have the opportunity to work. When prosperity is growing, jobs will be plentiful and new citizens welcomed to keep enough money in circulation and inflation down -- Supply, and demand.

Once you obtain talents, skills, or resources which enable you to command better pay than $1.00 per hour then you are encouraged to do so.

And those people good enough to start and maintain their own business shall have that privilege jealously guarded. In the great spectrum of labor, each band shall be regulated according to the skill values set from within their own ranks. Like the guilds of old, each band of the spectrum shall establish their own standards of performance, anyone meeting those standards cannot be denied membership.

While anyone can change guilds as the monetary rewards fluctuate, no one can be a member of two or more guilds simultaneously without forfeiting the financial remuneration guaranteed by the guilds. To wit, each guild shall collect enough from its working members to pay all of those at the same rate who are not working.

By dropping the price of wages the guild will put more people to work. When there aren't enough people in the guild then wages will go up to entice others into it. The minimum pay allotted to each rank they establish will be set by supply and demand for that particular talent, on a regional basis.
No employer can pay less than that amount to anyone working in the capacity of that rank, except for a private contractor. And, any of those working for any government branch or office shall not be paid more than the minimum for that rank.

When too much work is available, guilds will raise wages across the board in order to induce more workers into that field. When the supply of workers exceeds the demand that rank will be compelled to reduce their acceptable wages across the board.
This might even eliminate the need for unions --
while guaranteeing good wages for all qualified workers at the same time.
Government, being responsible for our fiscal policy, shall be held accountable for the redemption of our currency when more calls are made for redemption than the labor pool of prospective citizens can redeem.
When calls for redemption cannot be met because our fragile economy is getting fragged by politicians, then ALL those people working for the government shall immediately go on line. Their names shall be put on the the top of the list of available labor to redeem our currency.

When grass needs cutting,
THEY cut it.
When floors need scrubbing,
THEY scrub them.
In 8 hour sequences, chosen by lot
from the highest executive
to the lowest plebe,
they shall work without pay
to redeem the calls on our currency
until our currency IS sound again.

In conclusion -- Giving ourselves a dollar founded on honest value will 
create all the genuine hope any nation on earth could ever wish for.

Remember this for a fact..
We don't need more money.
We need our money to buy more.


Only when our dollars are worth more
will we have more real money to spend.

Only when we put a ceiling on what Government can waste
will we be able to halt the spiral of inflation.

It is time to make the government stop playing games with our money.
It is time to make our money worth every minute we put into it.

the end

*

Please continue to tell your friends they can find this article at http://www.talewins.com/essays/money.htm  

Then ask your representatives to quit monkeying around with your money.  
Anyone who won't respond in less than two weeks needs to be replaced at the ballot box.

EPIGRAMS ABOUT MONEY

Great countries that go off the gold standard do not stay great for long. --  Ronald Reagan

What this country needs is a good five-cent cigar.  Thomas Riley Marshall

You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold.  William Jennings Bryan

Once upon a time, government budgets were balanced, our money was sound, the streets were safe, and taxes imposed by all levels of government took less than 10% of our income. -- Harry Browne

Some Resources to take your mind off your pains.