QUESTION: I get up in the morning, make coffee and read your blog. Thank you for your service to humanity.
Ok, so the Democrats want to go back to the 1950’s with 70% tax rates. Does that also mean they’ll reinstate the same deductions that were available back then? For example, passive activity loss rules would go away, personal credit card interest, medical expenses, and job expenses would be deductible, companies could deduct meals and entertainment, vehicle expenses, corporate jets etc. Also, there was a tax credit of 10% of the cost of new and used equipment placed in service. It is unfair to look only at the tax rate without looking at how taxable income was calculated. And how about Social Security tax being applied to a few thousand of earned income.
M

ANSWER: No. They will never put back all the deductions. This is all about raising taxes for their claimed Socialistic Agenda but in fact, as the deficits rise and interest expenditures explode, they will be raising taxes sharply as they always do pretending to be taxing just the super-rich.  They NEVERlower taxes on the middle class. They just point to the rich to raise taxes without any benefit to anyone else. Normally, the play games with the definition of the rich.

The Trump Taxcut denied deducting what you pay in taxes to a state after 10k. They blame Trump for that yet this has been on their wish list for the past 30 years. If the Democrats get hold of the White House and the Senate, you can bet your life they will not change that deduction. They silently all cheered for that – both Democrats and Republicans. The Definition of the rich has always been classified as “household” income. The burden of student loans preventing the youth from leaving home and buying their own house is wiping out the economy. It has reached a 75-year high coming in at a stunning 40%! The impact of this is the call among Democrats behind the curtain to get the IRS to add all the incomes in a household including the children to push them higher into the category of the “rich” which starts at the $250,000 level – not $10 million. The plan will be to raise the taxes on the rich and the define who are the rich. They will NEVER tell you the truth to your face. This is all part of the decline and fall of Western society.

While the BitCoin people have hated me for not agreeing with them that a private currency could displace the currencies of all nations and BitCoin would be the new “reserve currency” killing the dollar, to me they are in serious need of help. They have ZERO comprehension of governmental power and ZERO understanding of what is going on behind the curtain. The IMF has come out and stated that each nation should issue their own cryptocurrency and these fools cheers claiming I am not with it and do not get this new age of technology. Sorry, but these people are really clueless if not perhaps undercover people with a mission to get people willing to surrender their final liberty – paper money.

While cryptobugs advocate gold is dead and BitCoin will conquer the financial world, they miss the point entirely. The IMF is by no means embracing cryptocurrencies for the same reason these people have claimed it will bypass central banks. The IMF is advocating the end of paper money to kill the underground or black economy solely to aid the hunt for taxes and to PREVENT bank runs. If there is no paper money, how can you run to the bank in a panic demanding to withdraw your money? They also argue eliminating paper money will end crime.

Now,  Michael Andrew, the man appointed by the Australian Federal government to lead the ‘Black Economy Taskforce’ at the end of 2016, is arguing for an interim-step.  He believes tracking the currency denomination is the best solution in stopping the underground/black economy and grabbed taxes if you found a $50 or $100 bill on the street and failed to give the government their 50%.

Governments are going broke. They will not listen and instead, they are obsessed with just a solution for the next quarter. They lack any vision of the future and will NEVER tax responsibility for their own mismanagement. Their single solution is to always raise taxes rather than reform. The more they press toward this cashless society the greater the economic implosion. What comes after the elimination of cash and the budgets are never balanced with institution starting to shift to private assets rather than government bonds that pay nothing and present huge risks will be the default on social programs without the corresponding reduction in taxes. This all leads to the inevitable collapse of Western Society just as we witnessed the collapse of Communism in 1989.

Our model is famous for forecasting the collapse of Communism and even the fall of the Berlin Wall (November 9, 1989; 1989.857). The likelihood of Western Socialism surviving as some benevolent government will come to an end by 2041.457. The 1989 Tiananmen Square protests that culminated on June 4th, 1989 (1989.424). This means we should begin to see a sharp rise in civil unrest cyclically speaking beginning October 28th, 2020 going into the US Presidential elections.

The future appears very dark unless we can convince the world governments that they face a hopeless path to secure its power. In this hunt for taxes, they are destroying all liberty. They cannot reasonably pretend to be governments of the people and by the people in a wonderful land of democracy and opportunity when they need to track everything we do and have. Paying a babysitter will be illegal with cash. Society will not run to cryptocurrencies with open arms. We will be forced to return to barter systems.

The total global debt hit a record $184 trillion, which is the equivalent to more than $86,000 per person. That is actually more than double the average per-capita income. People ask me will our solution work? Can we really just end government debt and convert it to cash restricted to investing in domestic companies? I will put it this way. There is absolutely NO OTHER CHOICE!!!!

We either default, which will result in civil war and revolution, or you inflate your way out like Venezuela so your Social Security check will not even buy a cup of coffee. A default will result in war. People will then riot demanding they have been cheated. Inflating the way out is completely different. You paid them what was promised. It’s not your fault it buys nothing.

To inflate the way out requires a completely different set of patterns. Right now, the theory is that WE THE PEOPLE are the problem. If we all paid what the government thinks we should then they will be fine. They increase taxes and increase enforcement and believe it is their divine right of kings to act in this manner. What we are witnessing so far is not the inflation path – but the hardline path that leads to only violence as we are witnessing in France