As usual, political issues aren't what they seem. by Gene DeNardo
(libertarian)
Saturday, April 16, 2011
As most issues in the political world, the battle over the raging deficit is not what it seems. It really has little to do with the federal budget at all and everything to do with political agenda. The battle is not to save a financial system. That system is in fact, in perfect working order.
Our modern income tax was created in the same year as the creation of the Federal Reserve with one dominant purpose, to pay the interest on the debt the nation would soon owe the Federal Reserve and the rest of the banking cartel.
A secondary motive was to transfer the ability to raise funds from the many states to the one centralized ruling force; the federal government. Once this was accomplished, the states would then be at the mercy of the centralized government as they would have to beg to receive back funds that originated within the states. In this way, the states could be kept in line.
In 2010 the income tax collected was more than twice the amount of the debt interest for the year. From those numbers, we see that the system is working as planned. There is some fear that at some point the collection of income tax will not be enough to cover the debt, but that time is far into the future.
The advantages of this system are that the centralized government could grow endlessly while the banking cartel would have an infinite source of profit; the more debt, the more profit. Since the taxpayer was only responsible for the interest, it was hoped that tax rates could be kept at a level which would not concern the citizens, at least, not enough to create unrest.
Despite their rhetoric, Republicans today understand this system much better than the Demos. They realize that taxes can be cut while the budget expands, simply because the creation of money and creation of new loans to the government is far from its breaking point.
The rhetoric they use to predict financial insolvency, dire consequences, etc., is used only to push their agenda: to par down and even eliminate social programs. This is where they misunderstand the system.
Social programs are not in place for the good of the poor or to actually help the less fortunate. They are in place to replace the value that is coercively extracted from the population through the controlled economy; much of it extracted through the banking system, but also through the various other state backed cartels. Social programs keep those who most feel the brunt of the system from taking to the streets as they are doing as we speak in the mid east, a region devoid of any social welfare programs.
Many neo-cons mistakenly believe corporate welfare can continue after social welfare programs are terminated. While people may be slow to catch on, they are not stupid. If the system is ever adjusted to that extent, which is similar to the situation before Roosevelt initiated his programs, there will be rioting and large scale unrest, just as there was at that time in our history. It is not an accident that national unrest also preceded the programs of Lyndon Johnson.
Demos on the other hand, do not understand the system. They erroneously believe that taxes must be collected in order to pay for the actual programs rather than the just the debt interest. That is not to say that they don't believe in debt. They obviously do.
Another aspect of the false debate is why social programs are the budget areas being debated, while other areas such as defense, energy industry welfare and banking subsidies, even the interest charged by the federal reserve to the government are not being questioned by either party? Have you noticed the agreement between Ryan and Obama on the sacredness of the defense budget and the complete dismissal of any possible cuts in corporate welfare in either plan?
The reason behind this is the reason behind the existence of the omnipotent centralized federal government itself: the state exists to further the causes and advantage of its beneficiaries. Industrial welfare is engrained into the fabric of the centralized Leviathan. It has existed and has grown alongside the existence and the growth of the centralized state. They are virtually inseparable.
Social welfare is an afterthought. It is a necessary cost to keep the system in place and prevent the implosion that would occur if the disadvantaged, those that feel the full force of the system, were left to their own devices.
The budget battle is not an altruistic effort to save the economy for the good of all, it is simply a fine tuning of a system that has been in place for a very long time and is functioning quite nicely, at least for those whom it was intended to function. It can barely be called a debate at all.
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