1984 is here 2014

Martin Armstrong: The primary reason why I have been touting that we no longer need taxation at the federal level is because money is no longer tangible. The evolution of money migrating to simply electronic actually allows the restoration of freedom. Taxes were once needed when money was tangible because it could not be created. The diehard Goldbugs want a return to austerity making money gold to end inflation and force government responsibility of which cannot be created by changing the monetary system. That is like fining the wife because the husband forgot to take out the trash. We must deal DIRECTLY with the problems.
Converting money into some savings account will not work. The medium of exchange has no mythical perpetual value while everything else floats including wages and investments. Yet if everything else floats, how is it possible that only money remains fixed? If everything else can rise in value, it is measured in MONEY and thus the purchasing power of money MUST decline. You cannot have it both ways.

So let us look at the practical position in which we now find ourselves. Governments are dead broke. They blame us for expecting that they actually honor their promises calling us the “greedyist generation”. We are losing all freedom, rights, privileges, and immunities simply because they need money to pay the bond holders (austerity) to retain this value of money exactly what the Gold Standard advocates demand, which is now sucking the lifeblood out of society, reducing our standard of living, and imposing DEFLATIONARY effects.


With about 70% of all national debts composed of accumulative past interest expenditure, the debts are exploding driven by socialism, which is now collapsing. The very theory of socialism has failed to materialize because the bulk of the money created went to bondholders not consumers and so the claims they are taking from the rich to give to the poor have proven false – just follow the money. This has created an army of lobbyists (official bribery) and corrupted everything within government from pensions to hiring of political family members.

There is no hope. Changing what money is will not fix the system. This time, we really have to burn down the barn to get rid of all the rats. Debt has historically always been the great destroyer. So what can we do given the cards that have been dealt? This is a high-stakes black-jack game for life.
Since money is electronic and nearly 40% of government exists to extort money from the public to sustain itself, the solution can only be total reform. We must eliminate income tax, reduce the size of government dramatically as a result, collapse all regulation of any industry into a single agency, privatize virtually everything so it is far better to have private companies bidding for the job where their workers must perform and live like the rest of us without special exemptions, eliminate career politicians by creating one-term one-time one-year intervals where people from the private sector actually oversea government, no major spending or program without a real democratic vote – no representatives, do all of this and we will eliminate most lobbying and corruption since the bulk of that is for taxation.
Right now, liberty is vanishing all because they need money. If we eliminated income tax and people paid local taxes purely on consumption also eliminating property taxes, then it matters not who is here for everyone would pay for local government, which would force them to be competitive. We nee solid laws to limit the size of local government with criminal penalties for corruption.
Take the new immigration reform measure that the Senate began debating, that would create a national biometric database of virtually every adult in the USA. This becomes the final straw in eliminating all rights and privacy creating an ubiquitous national identification system that is buried deep within the more than 800 pages of the bipartisan legislation. There we find frightening language that mandates the creation of the “photo tool,” that is effectively a massive federal database containing names, ages, Social Security numbers and photographs of everyone in the country with a driver’s license or other state-issued photo ID. Who will administer this? The Department of Homeland Security of course. See why they need tanks?
While this legislation is being touted as the key piece for the Border Security, Economic Opportunity, and Immigration Modernization Act, it is really aimed not at really curbing employment of undocumented immigrants, but of keeping track of who everyone really is. Employers will be obliged to look up every new hire in the database and to verify that they match their photo, with criminal penalties of course for failing to do so.
It is simply inevitable that police already have a photo gun and shoot it at your face that will then identify you you are by photo recognition. This will end having to prove who you are for everything from hotel rooms, travels, right down to voting. The will expand it to renting a house, opening a bank account, wiring money, acquiring any credit, buying a gun, and eventually going to the movies, concert, or a sporting event. Bloomberg wants a fingerprint now to log into their system, they will switch to photo ID linked to the government database and then they can see what you are looking at before you trade. It would be easy to end anonymity on the internet.
This is changing the relationship between the citizen and state. We are already being hunted for cash. They will have records of absolutely everything about you and what you do. See, George Orwell was on the money after-all.

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