Monday, September 19, 2011

Austerity In the Form of Tax Increases Comes to America

You owe money, don'tcha know? -
In a blunt rejoinder to congressional Republicans, President Barack Obama called for $1.5 trillion in new taxes Monday, part of a total 10-year deficit reduction package totaling more than $3 trillion. He vowed to veto any deficit reduction package that cuts benefits to Medicare recipients but does not raise taxes on the wealthy and big corporations.

"We can't just cut our way out of this hole," the president said.

The president's proposal would predominantly hit upper income taxpayers but would also reduce spending in mandatory benefit programs, including Medicare and Medicaid, by $580 billion. It also counts savings of $1 trillion over 10 years from the withdrawal of troops from Iraq and Afghanistan.
The Real Effect
Think this through for a moment. Who owes this debt? The United States of America, a Federal construct of the individual sovereign states. What or who is the Federal Government? It is an abstract concept that has no individual backing rather then the wealth citizens of the United States. So what is this "debt" secured against? (In other words, who owes the debt again?) Why the material possessions of it's citizens of course, namely you and I. You could have literally been born yesterday, get none of these benefits in the future and yet still owe hundreds of thousands to the Federal Government.

In this case, Obama is invoking class warfare to claim that this situation is unfair. The problem with this thinking is two-fold and quite problematic. 1) Life by it's very nature is unfair and hundreds of years of communistic balancing has done nothing but slaughter people to "fix" this situation. It is a failed ideology that just keeps trying. 2) The Republicans have a real problem on their hands with this. You have people that are being devastatingly being priced out of their basic subsistence via various Federal Reserve programs that steal their wealth and hand it over to certain hedge funds and banks to "prop" them up. This is theft most foul and the people know it. The people don't want to save the banks, they want to see the banksters hang and the Republicans are oblivious to this point. Getting behind the banks is like standing behind the rapist because he'll lose his job

So all of this creates this murky perception that 'anyone making over X dollars (Let's say $1 million), are the ones that did this to us!'  While it is true that there are some that are part of that subset that are guilty of these crimes, not all are and to impose such tax increases assumes that the debt is valid and that we have to pay it. This is literally a mathematical impossibility as the amount of outstanding derivatives contracts and "value" inherit in these positions is enough to wipe out the world economy several times over.

The banksters must be wiped out financially. Then and only then will the citizens see their wealth preserved and start to see a turn towards financial prosperity.

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