THE DECLINE OF AMERICA

 

 

              (This article was written 15 years ago, it is reprinted here to show its continuing validity). Our country is in debt at an incredible level. Uncle Sam has billions of dollars of contingent liabilities. The problem has grown and grown because the politicians are not willing to deal with it.  We have two choices to get out of trouble.  One choice is to create heavier taxes, the other is to repudiate the debt. If we repudiate the debt, that is the end of our credit system.  The creditworthiness of the Federal government is the foundation of the credit system in America.

 

              We are currently headed for a long and total depression.  This depression will be much worse than the one in the 1930s.  The American Government in the 30s was financially liquid.  We had hoards of gold.  Today we are buried in debt and we do not have gold backing.  This depression may happen before the year 2005 as the Feds find it increasingly more difficult.  How did we get in this mess, anyway?

 

              About 1500, when capitalism started, Western Europe was static.  There was no wealth to manipulate.  Public banking was unknown and private banks were in short supply.  There was not enough food to go around.  Then suddenly, Europe was buried in riches from the discovery of the New World.  Capitalism was made possible only by the discovery of rich lands, resources  and people for exploitation.

 

              The Europeans plundered these lands and they continued to do so until about 1960.  We were caught up in this flash flood of new wealth.  The white peoples of Europe created a good standard living by stealing the land and resources of the red people and exploiting the labor of the black people.  The United States through its covert operations in third world countries has attempted through political assassinations, and wars to keep the third world subjugated.  Over 20 million people have died in the covert wars of the CIA in countries like El Salvador, Panama, Viet Nam, Angola, Guatemala and others since the Second World War.

 

              However, the boom is over.  There is no more free land for millions of pioneers to homestead.  There are no more buffalo herds to slaughter. There are no more black people to bring from Africa on slave ships to work the cotton farms.  There is no more unclaimed wealth.  Yes, the boom is over, and we are living at the time that everything is coming to a head.  Capitalism is on the decline as it depended on the continual expansion of the economic system.  The prosperity enjoyed by the United States until 1960 was due entirely to the wealth gained by the plundering of the New World.   We are going to get poor, very poor.  Many people think that the government can do something, but it cannot.  The government has done everything it can to avoid facing the music. In the 60s we went off the gold standard completely in an effort to create wealth thorough the use of paper money. Everything is going to change soon.

 

              The next depression will be worse than any previous depression and it will deeply effect the middle class.  Many middle class people will become unemployed, and they will finally wake up and demand change. Sometime around 2005 or so, the unemployment will grow to an incredible level.   Our old solutions such as asking the government to create jobs will not work, because, this time around, the government is bankrupt.

 

              The situation will get so bad that our government will fall apart, people will not have faith in a government that has allowed such an incredible mess.  We may live through a period of anarchy.  The old Order will be in total chaos.  The scary thing is that a dictator may rule us and we may turn toward total fascism in an attempt to solve the problem. Let us hope that in the trying times to come, that democracy does not slip into the hands of a tyrant.

 

              Paper money is the government's solution to our problems.  The Chinese tried paper money over 1,000 years ago with disastrous results.  In the 20th century, the American Politicians rediscovered its use as the economic situation stated to decline.  Our politicians want to get re-elected, so they keep making money and in so doing they have created a period of false prosperity based on debt.  You see, the only real money that ever existed is gold and silver.  Governments cannot create real money.  Remember when the Continental Congress made Continental Notes.  Have you ever heard the expression: "Not worth a Continental!"?

 

              Our government, by using monetized debt to create wealth, has brought on the greatest Depression in history.  Hold on to your seats!

 

              Money is not wealth.  Wealth is the production of goods and services, money is the result of wealth. We have, however, defined money as wealth and since our money is made of paper, we are in for a very rude awakening in the near future.

 

              Our country does not create wealth through the creation of goods, it creates wealth by juggling money; the problem is that we are headed toward National Bankruptcy.  Corporate and individual bankruptcies are up.  The American standard of living is falling.  Currently over half of the income of each middle class family is consumed in mortgage and installment debts, the rest is eaten up in taxes.  America has been in a long decline that will soon result in a financial collapse and yet the people don't notice it.  They prefer to keep their heads in the sand, to do their jobs each day and let someone else run the world.  Our infrastructure is falling apart.  Soon a process of change will take place that will transform the entire world.  Our culture, our politics, our social structure and our forms of money must change, they will be forced to change.

 

              Our free resources since 1492 are almost exhausted, our industry is destroying the environment, the air and the water.  Our massive debts are larger than any public debts of any nation in recorded history. The interest is compounding at such a high rate that soon the entire amount of money collected by the federal government in taxes will not even pay the interest.

 

              The government cannot continue to raise taxes because the income loss from the middle class takes the money they need to pay their own $3 trillion in debts.  So Congress must continually expand the national debt base because national prosperity is based on debt expansion.  The government has no choice but to borrow. Even if the government reduces spending, its revenues must increase because of the interest rates it must pay on the debt.

 

              All domestic credit rests on the credit of the federal government.  The collateral for our current domestic money system is Treasury Bonds; therefore the collateral for our money is debt.  This spells major problems in the near future.  The more a borrower borrows, the less chance there is that the money will ever be repaid.  We now have growing federal deficits that can never be paid back. We are on the road to national bankruptcy.

 

              Once the world realizes that we are bankrupt, foreign holders of U.S. dollars will sell them. Eventually the debts will have to be settled by default. By the year 2000, there is no doubt that all the tax money collected by the Federal Government will be used just to pay the interest on the national debt.  The government can currently only continue to operate by borrowing money.

 

              As you can see, the situation has grown from bad to worse.  It will soon get to a point that will be the final explosion of our current economic system.  The final hour may come before the year 2000, but even if we make it that long, our system is doomed, for we cannot continue to live on monetized debt forever and that is exactly the situation we find ourselves in today.  if you are forewarned you can be forearmed to help you survive the situation. So think about it and get prepared for the future, if you are prepared, you can certainly do a better job than your neighbor of surviving the hard times.

 

CUSTOMERS OF THE IRS

 

 

            The IRS refers to individuals in this country as "customers."  For example, Lawrence Gibbs, in a past communication to the public stated:

 

                 I pledge my personal effort and that of the IRS to search for new and better ways to reduce the burden placed on you, our valued customers.  I also pledge that we at the IRS will continue to improve the quality of the service we are providing to you.

 

 

            It is rather strange that the IRS refers to individuals as "customers."  What does that mean?  Well, just take a look in the dictionary.  If you will look in your unabridged dictionary, you will see that a customer is a patron.

 

            A patron is defined as a person who supports with money, gifts, efforts or endorsement an artist, writer, museum, charity, institution, or the like: a patron of scholars; art patrons.

 

            Well, what do you think of that?  A patron supports an institution (The IRS).  Of course the implication in the words customer and patron is the concept that individuals who are characterized by these words partake voluntarily in their charitable efforts.  Of course, that is why the IRS says that individuals voluntarily file returns.  Filing must be voluntary when patrons are supporting an institution.

 

            See how honest the IRS is.  They are entirely consistent.  They consistently imply filing returns is voluntary and they characterize "taxpayers" as a class of individual that clearly volunteers his support of an institution.  Do you think the IRS is telling the truth or not?