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One Chart Showing Who's Really In Control
Submitted by Simon Black of Sovereign Man blog,
Check out this chart below. It’s a graph of total US tax revenue as a percentage of the money supply, since 1900.
For example, in 1928, at the peak of the Roaring 20s, US money supply (M2) was $46.4 billion. That same year, the US government took in $3.9 billion in tax revenue.
So in 1928, tax revenue was 8.4% of the money supply.
In contrast, at the height of World War II in 1944, US tax revenue had increased to $42.4 billion. But money supply had also grown substantially, to $106.8 billion.
So in 1944, tax revenue was 39.74% of money supply.
You can see from this chart that over the last 113 years, tax revenue as a percentage of the nation’s money supply has swung wildly, from as little as 3.65% to over 40%.
But something interesting happened in the 1970s.
1971 was a bifurcation point, and this model went from chaotic to stable. Since 1971, in fact, US tax revenue as a percentage of money supply has been almost a constant, steady 20%.
You can see this graphically below as we zoom in on the period from 1971 through 2013– the trend line is very flat.
What does this mean? Remember– 1971 was the year that Richard Nixon severed the dollar’s convertibility to gold once and for all.
And in doing so, he handed unchecked, unrestrained, total control of the money supply to the Federal Reserve.
That’s what makes this data so interesting.
Prior to 1971, there was ZERO correlation between US tax revenue and money supply. Yet almost immediately after they handed the last bit of monetary control to the Federal Reserve, suddenly a very tight correlation emerged.
Furthermore, since 1971, marginal tax rates and tax brackets have been all over the board.
In the 70s, for example, the highest marginal tax was a whopping 70%. In the 80s it dropped to 28%.
And yet, the entire time, total US tax revenue has remained very tightly correlated to the money supply.
The conclusion is simple: People think they’re living in some kind of democratic republic. But the politicians they elect have zero control.
It doesn’t matter who you elect, what the politicians do, or how high/low they set tax rates. They could tax the rich. They could destroy the middle class. It doesn’t matter.
The fiscal revenues in the Land of the Free rest exclusively in the hands of a tiny banking elite. Everything else is just an illusion to conceal the truth… and make people think that they’re in control.
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Yes, American oil production peaked the same time thereby assuring that tieing the dollar directly to a commodity was a loosing proposition...
Call me jaded but we need a decentralized government, based around SHA256 hashes and Princess Diary movies.
In other news, 1 ounce of silver now costs 0.072 bitcoins (as per www.ounce.me)
Re: Call me jaded but we need a decentralized government
But, it's not natural. The Europeans are willing centralizaing their government. The sociopaths always create great sounding bullshit about why centralization leads to more prosperity. The "Conservatives" and "Liberals" both love Big-Gov.
"1 ounce of silver now costs 0.072 bitcoins" - well then, let's hope that the programmers at the banks aren't mining bitcoins...
First?
You get rope.
Probably, a lot of rope.
Lamposts? We have lots of those.
That's a conquerable problem.
Start with Saudi Arabia, then on the Iraq, and finish off with Iran.
AFAIK United States is not a Democracy, it is a constitutional republic - pretty much like the Pre-empire Rome. (Not that it should matter)
In between republic and dictatorial empire and have been for awhile. Whether this is a chrysalis and inevitable is not for certain. Seems more of a tight rope with high probability of falling but it is not a forgone inevitability
Interesting description on just this difference here since both tend to be used in the wrong context.
http://www.1215.org/lawnotes/lawnotes/repvsdem.htm
A republic and a democracy are identical in every aspect except one. In a republic the sovereignty is in each individual person. In a democracy the sovereignty is in the group.
Republic. That form of government in which the powers of sovereignty are vested in the people and are exercised by the people, either directly, or through representatives chosen by the people, to whome those powers are specially delegated. [NOTE: The word "people" may be either plural or singular. In a republic the group only has advisory powers; the sovereign individual is free to reject the majority group-think. USA/exception: if 100% of a jury convicts, then the individual loses sovereignty and is subject to group-think as in a democracy.]
Democracy. That form of government in which the sovereign power resides in and is exercised by the whole body of free citizens directly or indirectly through a system of representation, as distinguished from a monarchy, aristocracy, or oligarchy. [NOTE: In a pure democracy, 51% beats 49%. In other words, the minority has no rights. The minority only has those privileges granted by the dictatorship of the majority.]
...
And what, pray tell, is the difference between "the people" and "the whole body of free citizens?"
Re-read it, the difference is at the heart of Libertarian thinking concerning individuals vs the collective and consent of governed.
It is, in Star Trek terms, the difference between the Federation and the Borg Collective.
A democracy is a mockery when those running for office believe and tell us that we are too stupid to direct our own lives.
Watch the 29-minute professionally-produced JBS video "Overview of America" on YouTube. It explains the political spectrum (100% or totalitarian gubbermint on the left vs. 0% government or anarchy on the right), political & economic systems and how they interact. It will fit the missing pieces into your puzzle. Hint: Hitler & Stalin were both on the extreme political left.
America is evolving from a free enterprise economic system under the rule of law in a republic, to an economic system with elements of free-enterprise, fascism, socialism & communism (depending on the state's control of the title, possession, use & disposition of capital) under a central banking-controlled political oligarchy (rule by the elite few).
We live in a country of two political systems. 99% live in a republic, where we are subject to the law and the constitution. For the 99% the state executive and the laws of the legislature are becoming more onerous and more intrusive. 1% live in an oligarchy, where they are outside the law. Through their power and influence, no matter what they do they have no fear of law. They have been allowed to financially defraud the 99%, privatize and debase the publics currency (something they had no right to privatize), and any number of other crimes.
Two points:
1) America doesn't have a left. Compare it with any other country in the world and American is right-wing from one side of the political spectrum to the other. Probably the result of the brainwashing drives of McCarthism and the Cold-War in the birthplace of Modern Marketting when applied to a population with low education.
2) You're confusing the left-right axis of political thinking with the freedom-control axis of political thinking. Those are in fact quite independent but the MSM has trained people to look at any political issues as only having 2 sides (which conveniently are mapped to Democracts vs Republicans).
Unsurprisingly since America has no left-wing parties, people tend to look at their freedom - control political axis (since that's the only domain where there is some choice) and confuse it with the real political spectrum that other countries enjoy.
By the way, Hitler was right-wing + control, Stalin was just a pure nutcase and an asshole but Lenin was left-wing + control. Ghandi, for example, was center + freedom.
Democratic Republic?!?!??? (brainwreck)http://www.youtube.com/watch?v=wNHcKnjrSNE
There's a simple explanation for all this....
http://www.youtube.com/watch?v=VSg5yZvnJf8
http://www.federalreserve.gov/aboutthefed/section7.htm
I am not sure this article is rigorous statistical analysis as much as it is just fun with graphs.
Remind me again, who is it that nominates the Chairman of the Federal Reserve Board? Who is it that confirms him? How about the Governors?
The current President and unfortunately large percentages of both Houses of Congress represent the Ruling Class and the Total State, and are enemies of the American people. And consistent with doubling the National Debt, Obamacare, Dodd-Frank, they also have appointed and confirmed a Fed Chairman and Board that are debasing the currency, all part of a plan to destroy the country.
As a thought experiment, imagine we had a President and Congress that actually loved America. They could over a fairly short period of time replace the Chairman and stop the debasement. But we don't, so they won't.
Here come the Party Pussy streamers flying again...
All easily derailed: Alan Greenspan
Yeah, picking out a small enough timeslice you can make anything what you want of it. I have no desire to make arguments in order to fly some party-loyalist flag- I'll only fly the flag of logic...
"As a thought experiment, imagine we had a President and Congress that actually loved America. They could over a fairly short period of time replace the Chairman and stop the debasement. But we don't, so they won't."
Are you fucking high?
We just click our heels together and think happy thoughts and all is well? And why the fuck would all these folks whose existence depends on a govt structure purposely destroy that structure? Answer: this is all a concequence of perpetual growth- we're running out of natural capital and there's not a damn thing anyone can do about that (so they're going to do all kinds of tricks with prisms and mirrors keeping us entertained and ignorant of what is really coming, which, again, is totally out of their control).
Further, and what about the fact that the rest of the fucking globe is in the same situation? I'm thinking that it's easier to wrap oneself up in some party pussy flag to hide from reality...
Funny how the line was moving steadily lower up until the Fed was created. Hmmm...
"Funny" how federal income tax came about in the same year too (1913).
"Funny how the line was moving steadily lower up until the Fed was created. Hmmm..."
That had to do with the Income tax, not the Fed. Prior to the Income tax, the gov't got most of its revenue from excise taxes on alchol.
I don't know where you live, but in the people's Republic of California the tax rate is already close to 50% of INCOME which is what really counts. Money supply? Who cares?
And it seems to me you are only looking at Federal taxes when you talk about "US tax rates". This is a typical libtard talking point. Ignore state income taxes, sales taxes, property taxes, fees, Obamacare penalties, gas tax etc. etc. etc. and then claim Americans "enjoy" a low tax rate. I'm not enjoying it much. And shouldn't the tax rate include the staggering federal deficit? Isn't the government already taking about close to 40% of GDP?
Money supply? The supply of money is infinite courtesy of the Fed.
"The supply of money is infinite courtesy of the Fed."
Um, well... there's a nitpick... there's a big difference between "supply" and "circulation." The Fed is supplying for balance sheet padding only: doesn't matter what they desire, this is the actual outcome; it keeps banks looking like they're functional, and we all know what things look like when banks fail (imagine the scale if we stopped all this nonsense). Many would say "fine, let them fail," but forget to note that so much is wired into the banking system that most everything would stop: and then imagine the masses screaming out for help- the govt would pretty much be forced to do some pretty ugly, non-Constitutional things via declaration of "national emergency" (not that they haven't been actively doing so up to this point, though you can raise it by several powers on an event such as this).
Re: Isn't the government already taking about close to 40% of GDP?
As long as people don't feel the pain it doesn't matter. I live in the People's Republic of California and the tax rate is NOT 50%. Last year I paid 7% to KaLi and 19% to the Feds. I'm roughly at 10-15% income level.
But, regarless, about 50% of the population is living off of Big-Gov. And, everybody loves the crony-socialist scams they are living off of or looting.
Taxes for a high income Californian:
Federal: Over 20%
State: Over 10%
Fica: 12.4% (Includes employers "contribution")
Medicare: 2.9% " " "
SDI: 1.0%
Sales taxes: about 10% on whats left.
Property taxes, gas taxes, vehicle registration fees, phone bill Obamaphone tax, etc. Vary greatly by individual. Lets say they take a conservative 10%
That put it VERY close to 50% even over for some people. The key words in my statement were "high income." Its easy to talk about income taxes alone and ignore all the others. Liberals do it all the time.
Re: Its easy to talk about income taxes alone and ignore all the others.
It's also easy to talk about a small subset of the population and then infer this applies to everybody. Why would I give a rat's-ass if "Liberals" want to tax rich hollywood "Liberals" at 50%? Hell, tax them at 100% for all I care. Most people don't care about the high end.
When you believe you can empower "your" government to tax or punish others rather than yourself, the worm will eventually turn as the "power" to do things is the important thing and once that power has been established it will be used. We are constantly told that "our" experiences are anecdotal and the only "facts" are those supplied to us by our loving government. "most people don't care about the high end" because most people aren't high end. We care about ourselves. We don't care about the poor so much unless we are poor or fear we soon will be. We had better be caring about EVERYONE because the divisive politics that is sweeping the world will be the end of all of us. We have been subcontracting our "caring" to politicians too long.
"It's also easy to talk about a small subset of the population and then infer this applies to everybody. Why would I give a rat's-ass if "Liberals" want to tax rich hollywood "Liberals" at 50%? Hell, tax them at 100% for all I care. Most people don't care about the high end."
Yet you expect the people in the high end to care for you?
That is the entire problem summed up neatly...MOST PEOPLE, INCLUDING YOU, DON'T CARE...PERIOD.
Enjoy your famine and starvation. Why should I care?
"Well...It is a Dirty Job but someone's got to do it. We Care A Lot" ~Faith No More
http://www.youtube.com/watch?v=i-LIGOVzC-U
I'm going to call bull shit on "constant 20%". It has varied between 18% and 30%. You using the full scale, o to 100 to obscure this fact not withstanding. That range represents a large range of monetary and tax policies. I would think revenue would be more correlated to volume times velocity than volume alone. Will we hit a velocity of 1.5 this year? Stay tuned!
Yeah, one can pick out a 20-year slice over various parts and come to the same "conclusion," "constant" percentage. I'd have thought that only stuff like this popped up on obvious slow days (this is Twitter-day, no way is it a slow day!).
So how come this 'small banking elite' required a tax payer bailout?
The fiat destroys the feedback between the citizens and the politicians.
The Red Teams was able to borrow and "fund" all the manly Big-Gov crony-capitalist scams.
The Blue Team was able to borrow and "fund" all the girly Big-Gov crony-socialist scams.
As long as the dumbasses on both sides got free loot and the fantasy Big-Gov funded they didn't care what the politicians did.
Are you talking about Power + Money? </sarc>
It all boils down to such. All the label stuff is only a way for us to stay devided so that we don't do something about it: and, frankly, I'm not thinking that I'd be any happier with the overwhelming "solutions" that folks are trumpeting [all seems to ride on the same defective roller-coaster that's set to lunge over a cliff; only difference being in style].
+10 for using brain
It's not the fact that the money is fiat. It is a lack of respect for the work it takes to get the money - or the lack of work it takes to get the money. A loss of faith and respect for the money would have the same consequences if it was backed by gold. Gold may hold faith longer, but the problem is still there. Backing money with goods necessary to live would be the only solution. And this seems not-so-feasible until we make mini- nuclear fusion plants to pass out to people.
Yup, I always get a kick out of "the Fed does what they're told to do by the Polititians" people.
Where as the Fed is innit for the Fed.
Lest there be any doubt...
http://www.youtube.com/watch?v=LGy-gTksnII
12 seconds in motherfukkers. Got it?
How about all the state taxes?
More importantly where and to who were the taxes going to back then compared to now?
How about the plunder of the Social Security Fund? Is that inluded in the 20%?
....and I'll just throw this in there for the phuck of it.
A free Donkey Punch to anyone who can guess who's gonna be on the hook for this?
http://www.youtube.com/watch?v=1QK4bblyfsc
Is this going to hurt?
http://www.federalreserve.gov/aboutthefed/section7.htm
Yup, we need to face it: The banksters are in complete control. We get to play in their sandbox with the plastic toys they deign to make us think we get to go home with. The sooner we understand this damnable truth, we can maybe conceive of actually doing something about it. But alas, by that time they will be so far ahead of our lame schemes.. Well they already are. FUCK!!!
I've seen a border collie keep a flock of sheep tied up in knots. The dog cost $7,000 to the owner who had a bum leg and was worth every penny. One dog could keep damn near 40 of them in a tight radius.
Its the same with Obama using tribal neck clicks. Between him and Bernanke's high pitched farts, the entire herd keeps looking back and forth for their cues.
I've got a "mutt" that can make the distinction between a crow and a raven, the later known to attack my fowl. $72. My neighbor has a full-fledged LGD and it won't protect their fowl from aerial predators (which from time to time frequent my property, only to be run off by my dog) My dog will even chase owls past dusk. Added bonus is that my dog protects the homestead as well: my wife so much as sneezes and the dog perks up. Yes, I'm a firm believer in value as well...
Obama is a fucking figure-head. The sooner people figure this out the sooner that maybe we can dispense with the idol worship that permeates every fucking thing and get on with distancing ourselves from TPTB and their virtual, free-ride system of control. Blaming him does nothing more than help push the volley back to the other clown-camp (which will widly proclaim "we will make a difference!").
The greatest trick the central planners ever pulled is getting people to believe that money is a concept so confusing and so hard to figure out that it's best to just not think about what money really is. So so many people pour their blood, sweat, and tears into gaining digital code in their bank account and with all that hard work...they still refuse to contemplate even for a moment exactly what they are working so hard for.
In reality, the concept of money is fairly simple. More supply = higher prices and the human temptation to control the supply of money is overwhelming, so those making the laws (governments / the wealth behind the politicians) eventually use their power to control the printing press and create money from nothing in order to gain personal benefit.
And realizing that setting interest rates lower than the market demands is essentially a ponzi scheme creating false prosperity through asset bubbles while simaltaneously destroying capital by creating malinvestments and encouraging borrowing and consuming in the present over saving and investing for the future should not be that hard to understand either.
Ponzies expand or implode. Now that the fiat monetary ponzi has engulfed the entire world, there is literally nowhere left for the ponzi expand to...so the last measures of the fiat life cycle have arrived, which are 0% interest rates and QE. The only way left to expand the ponzi is to increase QE, and with the half-life aspect to ponzies, it is only a matter of time before the rate of QE reaches infinite.
It's truly amazing that something so basic is understood by such a small percentage of people. The price that the masses pay for their ignorance will be the highest ever witnessed and the pain from the worldwide collapse of fiat will resonate for centuries as most people's life savings are wiped away. Maybe the fiat ponzi won't ever again engulf the entire world, but the cycle is certain to repeat, and it's only a question when, where, and how long the next fiat ponzi is allowed to go on for...as for those looking to leach off of the rest of humanity and produce nothing while benefitting from what others produce, the temptation to control the printing press is immense.
Re: It's truly amazing that something so basic is understood by such a small percentage of people.
Good post. But, it's not really amazing. You (and me, and a few other people) simply have economic OCD. Most people have sports OCD, or celebrity OCD, or shopping OCD. If you don't have economic OCD you don't think about money, you just use it.
The REAL magic of the central-planners is their ability to do remove the cause-n-effect of inflation away from themselves. Plus, most humans are pathological optimist, so as long as what-ever-is-done is done slow enough, they won't notice things are worse because - in fact - with pathological optimism at work things are actually always better.
Then send this information around....
https://hiddensecretsofmoney.com/blog/the-biggest-scam-in-the-history-of-mankind
https://hiddensecretsofmoney.com/
http://www.youtube.com/watch?v=VSg5yZvnJf8
http://www.federalreserve.gov/aboutthefed/section7.htm
Actually, 2nd to setting up the Federal Reserve was to get the world's reserve currency off the gold standard.
But you are correct, the trust the worldhas in fiat is mind blowing, makes currency manipulation child's play for TPTB and with no gold standard each fiat has a relative strength against the other with no real concrete standard.
As soon as non-material-based "interest" comes into the equation (vs. the concept per the Phonecians) it all goes out the window, for then we are truly projecting guesses at "growth," and, when growth ends, as it always does, there can and will never be sufficient supply of money for repayment of principal and interest.
So, more amazing is the fact that people cannot grasp the obvious that this is a finite planet and that that FACT necessitates that growth cannot be perpetual.
"Maybe the fiat ponzi won't ever again engulf the entire world, but the cycle is certain to repeat.."
Just watch, they will try and create the next currency (the SDR) to be a basket of fiat currencies. They will say, because each of our basket currencies hold some gold, we are sorta backed by gold.... That is why china is buying gold hand over fist.
q
From the CBO.GOV
1970 USA population.................203,323,175
1970 USA GDP...........................$1,013,000,000,000
2009 USA population.................305,745,538
2009 USA GDP...........................$14,326,000,000,000
The USA deficit went from 3 billion in 1970 to $1.4 trillion in 2009
Debt held by the public went from 283 billion in 1970 to $7.5 trillion in 2009
These numbers seem out of line with the population growth for this time frame.
Is this an aberration?
In 1970 203 million people produced 1 trillion in GDP.
In 2009 305 million people produced 14 trillion in GDP.
My question is this, how did the addition of 100 million people to the population in 2009 produce the additional 13 trillion in GDP?
When 200 Million people could only garner 1 trillion in 1970.
of note: constant dollars is only a marginal effect.
GDP was up to 72%(?) from "consumption."
All is going along as planned. It was one of the Forbes' who, back in the early 70s, advocated protecting (another word would be "nationalize") US oil and consuming other's oil first. If you want to win in the game of "last man standing" then notions of "capitalism," "socialism" are merely about games and distractions...
In the past 40 years the definition of GDP has been evolving. GDP today is not the same as GDP in 1970.
Hopefully, many investors are still clinging onto their shares of Twitter. During this new corporate monetization process, all Twatters will begin watching 1950’s adverts to turn this company into profitability. The saturation of advertisements will drive this experiment out of business.
Don’t forget the other classics..
Classic '60s & '70s TV Commercials
My local market is being blasted with "learn to flip houses" commercials.
This is Stepford, on a national scale (and even nearing global proportions).
illusions is all the public will ever get, power
realized the dynamics years ago and many times over.
.
neutralization through misinformation.
.
"“The CIA owns everyone of any significance in the major media.”
– William Colby, former CIA director
“We’ll know our disinformation program is complete when everything the American public believes is false.”
– William Casey, CIA Director (from first staff meeting, 1981)
“Deception is a state of mind and the mind of the State.”
– James Angleton, head of CIA counter intelligence from 1954-1974
“I never would have agreed to the formulation of the Central Intelligence Agency back in forty-seven, if I had known it would become the American Gestapo.”
– Harry S. Truman" ...
.
http://www.infiniteunknown.net/2012/02/29/cia-admits-using-msm-to-manipu...
.
LAX Hoax - No HD Surveillance Camera footage released and Ciancia
http://www.youtube.com/watch?v=WZhS4Du0Ipc
.
this is why we are all just doomed idiots, everyone.
I was out of control for a long time Got to AA finally. Now I know I'm not in control.
Oh oh losing it again. Need a good dose of hunch.
Better now.
After a cat is neutered it adapts to its new life and is ignorant of its loss... because it is a stupid cat, .... but those darn humans know the Fed has taken something away.
Seems like almost all graphs have seen over the years 1971 always sticks out like a big zit.
best article ever! i say: ever! yes, one can dispute lots, but still. thank you for wonderful reading. I say: lets monetize the world....
conclusion is dead right.
The power rest exclusively in the hands of a tiny bankers.
Everything else is just an illusion to conceal the truth.
Developpment very less right, it is not just a queestion of the % tax, M2 has increase dramatically since 71',
but I rate 5/5 for the conclusion