Washington’s reckless spending comes with a cost to US taxpayers. While the fed may simply roll over their debt and issue new debt to pay off the old, the American public is on the hook for immediate liquidity every single year via taxation. The misconception that Biden would only target the wealthy needs to be dispelled as a recent study reveals that 63% of new audits targeted Americans earning under $200,000.
Now, Biden initially claimed he would send his troop of IRS agents to target Americans earning double that amount. The billionaire class was not targeted, as 80% of all audits were on filers earning under $1 million. Yes, there are far more taxpayers in the middle and lower brackets. However, the IRS merely claimed they would prioritize hunting higher earners; they never explicitly said they wouldn’t come after ALL Americans.
The entire hunt for taxation has been a war on the middle class, who is unable to file massive write-offs and cannot afford to continue paying Uncle Sam on every incoming and outgoing transaction, plus savings, income, and everything else from birth to death. Washington effectively lowered our purchasing power by fueling inflation through absurd fiscal and social policies, and now they are asking people to give them even more of whatever money that remains. Washington continues to spend taxpayer funds on initiatives that the people have never once voted on, and ahead of election season, Biden is going on yet another spending spree with your money to buy off voters.
The highest earners know how to avoid taxes. Trump famously told Hillary during a debate prior to the 2016 US Presidential Election that he obviously used the loopholes in the tax system, as do all financially savvy businessmen. “Her donors took massive tax write offs… and other things that Hillary as a Senator allowed,” Trump stated during the debate. “So do Warren Buffett, so does George Soros, and so do other people Hillary is supported by,” he added. Note that the Democrats in control have never repealed restrictions on these tax loopholes that only help their wealthy donors.
Every new war, aid package, climate change package, social program, and migrant who crosses the border is now the responsibility of the US taxpayer. They wrongly believe that our money belongs to the federal government, with the state also taking out their share. Then, they create new taxes, such as targeting capital gains, to ensure that every American is stretched thin. Did anyone vote for this nonsense? We do not live in a Democracy and anyone who says otherwise is either misinformed or lying.
It will become far easier for governments to extort the people when they introduce CBDC in January 2025. Uncle Sam will think you have hidden any cash on hand from him, cash that belongs to him, once they force us to digitize our dollars. Inflation will continue to rise above GDP and we will enter a period of stagflation. This is why I have warned countless times that private and tangible assets are a safer bet compared to cash as we move into 2028.
Posted originally on May 6, 2024 By Martin Armstrong
Eleven states may face capital gain taxes to comply with theBiden Administration’s 2025 budget, in which the government must hunt the people for taxes to pay for a fraction of their spending. The concept of capital gains was not within the original Constitution. The Founding Fathers established a completely new nation in an attempt to flee government tyranny, but yet again, Democracy has fallen into a Republic where the people have no say.
Capital gains were introduced in 1913, The 16th Amendment granted US Congress the power to levy income via taxation, which remained at around 7% until 1921. Congress quickly determined that they needed to extort citizens for more money and created two brackets. The 7% tax became a standard for income tax, but investors who held for over two years, an insignificant amount of time, were punished for saving and forced to pay 12.5% to Washington. Fast forward to 2025, and we are looking at the top marginal rate rising to up to 57.9%! The current capital extortion rate is around a quarter of one’s capital.
This idea of hunting down the rich is utter nonsense as it becomes an excuse to eliminate the middle class. The big money can take the risk, but the average investor cannot. This will deter small business investment and entrepreneurs who greatly contribute to innovation as they bring creativity and imagination to business.
Naturally, the 11 states are primarily blue. Californians really destroyed their state by voting for Gavin Newsom, and now they may face a top tax of 57.9% to cover the state’s excessive spending and growing deficit. New York and New Jersey, two states that should have stayed red, will face the second-highest capital gain taxation at a rate of 55.5%. These states already pay astronomical taxes on things such as property. Minnesota is looking at a tax of 55.45%, Oregon 54.5%, and Maine 51.75%, with the remaining states (Iowa, Kansas, Nebraska, Georgia, and Idaho) all facing capital gain extortion rates above 50%.
Why on Earth would anyone want to conduct business in these states? If Biden remains in power, it will be a wonder if major corporations continue to choose to do business in the United States at all. Businesses could go literally almost anywhere else and face lower rates of taxation. Additionally, the American consumer has been stretched so thin through dollar devaluation, inflation, and taxation that they are not spending the way they once did. Capitalism is under attack; success is a punishable offense.
America’s consumer economy will continue to decline while places like China see their middle class grow and the consumer economy rise. China is not creating worthless spending packages on climate change. Remember, they told us clear as day that the goal is to destroy America’s standing as the world’s leading superpower. Klaus Schwab has been aiming for 2030, but the computer has been honing in on 2032 before Schwab released plans for Agenda 2030. Unfortunately, this is all precisely on schedule as America enjoys its final time in the spotlight as the world’s financial capital.
Former CIA analyst Larry Johnson explains that there is a mountain of evidence confirming that the American Neocons were behind the destruction of Nord Stream sabotage of September 26th, 2022 (2022.736) that left Europeans’ wallets empty as energy prices soared. The destruction of the Nord Stream pipeline was carried out by the American Neocons, for this has been their objective since the 1950s, and even though communism collapsed, they have continued to hate all Russians no matter what.
The Neocons have constantly wanted to cut off Germany from buying Russian energy on their theory that this would undermine Russia and it would collapse so they could invade and slaughter Russians on a wholesale basis. They argued that imposing 100% sanctions on exporting energy would hit Moscow, where it hurts, and undermines its economy. That was the real objective of eventually destroying the Russian economy. Germany replied that they could not just cut off Russian energy cold turkey. They had the largest economy in Europe. But, the Neocons do not care about how many dead Ukrainians they have caused, nor do they care about Germans and their economy. They are the very evil that they insist Russians are.
The destruction of Nord Stream came 51.6 years on target with the frequency of the Economic Confidence Model. Indeed, ever since 1971, Russian gas has powered German homes and businesses. Without that energy, Germany would never have risen to the #1 economy in Europe, and Americans would not have enjoyed their BMWs, Porsches, and Mercedes. What these Neocons are too stupid to understand is that the selling of energy to Europe was undermining Communism. The Soviet Union opened the Institute for Management of the National Economy, which was the first school in a Communist nation for business administration and management science. These were fields long rejected as a feature of Western capitalism. The Institute was inaugurated within the Plekhanov Russian University of Economics. The Roman Empire grew because it was beneficial to be part of the Empire for that allowed free trade. When the people benefited economically, it restrained their leaders and promoted peace. Free trade with Europe was undermining Communism. It took just 18 years for that to take place.
The Neocons, from the outset, did everything in their power to deny Germany access to Russian energy, all for political objectives. It was 1955 when West German Chancellor Konrad Adenauer (1876-1967) visited Moscow and then established diplomatic relations for the first time between the new Federal Republic of Germany and the Soviet Union. Adenauer was Chancellor from 1949 to 1963. He opened the door for the trade agreement that followed in 1958, and by 1960, bilateral trade between the countries was booming.
The Trade Agreement was reported worldwide by the Associate Press on April 9th, 1958 (1958.271). Even so, from the very beginning, that trade link between Germany and Russia was controversial, to say the least. The United States, at the direction of the Neocons, was always against it and would criticize Germany behind every closed-door session. However, the US intimidation failed because it was necessary for the German people and their future.
Germany consumed just under 20% of all Russian gas exports in 2020. About 50% of all of its gas was coming from Russia. Germany was clearly Russia’s #1 customer. That was why the United States took the initiative to simply blow up the Nord Stream Pipeline without consulting with Germany.
In early 1963, the US and NATO imposed an embargo against shipping pipe to Russia to complete its energy pipelines. They were taking the position that this would strengthen the Russian economy, and it would be used to expand their military. This was typical paranoia. However, we must also look at this from their perspective to understand the evolution of events rather than form a one-sided bias.
The American Neocons are traitors to the United States. Since 1950, they have objected to buying any energy from Russia. Their entire theory has been to starve Russia no matter what its economic philosophy might be – just kill every Russian so they can sleep at night. When Kgruschev said, “We will buy you,” this is what inspired the Neocons to take the opposite position, swearing to spread DEMOCRACY (really authoritarianism) to the world, justifying regime change to assassinate and remove by any means anyone they disliked from Saddam Husein to Qadafi.
Since the Russian Revolution of 1917, we have had many Red Scares. During the whole era of McCarthyism, often known as the Second Great Red Scare, McCarthy headed the Senate Permanent Subcommittee on Investigations in 1953 and 1954. During that time, he used his power to engage in communist-hunting operations. McCarthy’s committee began an investigation into the United States Army. The more famous account was November 25, 1947, when the House of Representatives approved citations of contempt for the Hollywood Ten.
The House Committee on Un-American Activities became notorious, seeking to imprison people for a belief. The Hatch Act of 1939 banned membership in subversive organizations. Some viewed it as an anti-union or anti-labor legislation. Hundreds of people and others were prosecuted under this law between 1941 and 1957. McCarthyism was justified through the characterization of American communists as completely under Moscow’s control, that any American Communist was a puppet of the Soviet intelligence services.
To stay in the limelight and bask in the glory of defending America, McCarthy began to manufacture evidence with specificity that was headline-grabbing sweeping accusations to gain support to imprison anyone who thought of Communism. The popular view of the Communist Party had been that it was despicable and annoying, yet it was never a threat in America. Communism was popular in Russia because serfdom ended in 1861 with American slavery, but then they owned nothing and were not happy. That is why Marxism took hold in Russia during the late 19th century for they did not own land and most employment was still in agriculture.
By 1951, people were waking up to McCarthyism and that it was a big Red Scare that was based on a lot of manufactured evidence and lies. Welcome to the age of American Neocons – people who live in hatred of others and exaggerate the truth to remain in power and stay relevant.
President Harry Truman, who pursued the anti-Soviet Truman Doctrine, called McCarthy “the greatest asset the Kremlin has” by “torpedo[ing] the bipartisan foreign policy of the United States.” Eugene Victor Debs (1855–1926) was an American socialist, political activist, and trade unionist and a founding member of the Industrial Workers of the World (IWW). However, he was also a five-time candidate of the Socialist Party of America, running for President of the United States in 1904, 1908, 1912, and 1920 when he ran for president from prison in 1920.
Debs ran for President from prison in the 1920 election. Many people voted for him; he received the most significant number of popular votes ever received by a Socialist Party candidate in the United States. It is important to clarify that there was also the Communist Party, which was separate and distinct from the Socialist Party at the time. It is Ironic that FDR, running as a Democrat, was really advocating socialism, which Debs had advocated, except for war.
It was Woodrow Wilson who sent the Department of Justice to imprison Debs, and they used his speech against the Wilson administration for its support of World War I. Wilson was vicious and called Debs a “traitor to his country.” On June 16th, 1918, Debs made a speech in Canton, Ohio, where he urged resistance to the military draft imposed by Wilson. For that, he was arrested on June 30 and charged with ten counts of sedition.
The Neocons have hated Russians and Chinese because they were communists. However, when communism collapsed, and they were no longer trying to spread that philosophy to the rest of the world, the Neocons never stopped their hatred. When Ronald Reagan wanted to meet with Gorbachev, they objected and warned Reagan not to go because “you can never trust a Russian,” confirming that people judge others by themselves because you can NEVER trust an American Neocon. They will send you and your children to die for their personal vendettas.
It was John McCain, the grandfather of Neocons, who promoted this nonsense of Climate Change NOT for the planet but to push Europe into nuclear energy to cut off Russia’s income from energy. John McCain for the sole purpose of destroying the Russian economy since 50% was all fossil fuels. John McCain used Climate Change as his weapon to achieve the Neocon goals. John McCain was pushing for nuclear power in Europe also to undermine the Russian economy – not for climate concerns.
The British insurance companies have refused to pay any claims for Nord Stream. Switzerland-based Nord Stream AG filed a lawsuit against the insurers for refusing to compensate the company. Nord Stream estimated the cost incurred by the attack to be between €1.2 billion and €1.35 billion and is seeking to recoup over €400 million in damages. The insurers, Lloyd’s Insurance Company and Arch Insurance Company, responded that since the Nord Stream explosions were “more likely than not to have been inflicted by… a government,” they have no responsibility to pay for damages to the pipelines. They state in court “the fact that the explosion Damage could only have (or, at least, was more likely than not to have) been inflicted by or under the order of a government,” they have refused to pay any claims.
Nord Stream was destroyed by the American Neocons, and it was an act of war by UNELECTED bureaucrats without the AUTHORIZATION of Congress or the people. This was treason, for they have abused the power of the Executive Office, and this warrants an investigation, and they should stand trial. These people will create World War III and manipulate society into this self-destruction that our computer warns the United States will lose this time. As Ron Paul pointed out, they have been waging wars for 60 years and have not won a single one. Communism fell – get over it. They are pissed off that they did not get to shoot anybody because it fell all by itself.
Posted originally on May 1, 2024 By Martin Armstrong
I do not agree with Donald Trump’s view of the Federal Reserve. I speak on behalf of sound economic policies that benefit the people. I do not blindly support a political candidate for the sake of being on the right side. Now, I criticized Trump during his presidency for constantly pressuring the central bank to lower interest rates. There are rumorsswirling that Trump, if elected, would set the price of interest rates himself without the advice of the Federal Reserve. While this may be an extreme side of the rumor, Trump and every other president would like more power over the Federal Reserve — BAD IDEA!
What we must keep in mind is that the Federal Reserve’s original design, which lasted for about one year, was brilliant. The classic banking model involved borrowing from depositors on a demand basis and lending long-term, making a profit on the spread in interest rates, such as for business loans and mortgages. This was relationship banking, not today’s transactional banking model.
This was fractional banking insofar as about 8% of the money needed to remain free to service demand requirements. The crisis comes during an economic contraction when people run to the bank for a loss of confidence and demand to withdraw their funds. This results in the value of cash rising in purchasing power compared to assets, so asset values collapse.
The idea of “elastic money” was to increase the supply of cash during such a crisis to meet the demand for withdrawals and that would offset the need to sell assets by calling in long-term debts. By increasing the money supply on a temporary basis, the Fed could offset the contraction in theory smoothing out the business cycle.
This was a brilliant scheme. However, it has been Congress, and not the Fed, that corrupted that mechanism. The banks technically owned the Fed as this was supposed to save the taxpayer money. The banks should contribute to their own bailout fund. Furthermore, the Fed’s design was also about buying in corporate paper when banks would not lend money. This was a mechanism used to offset rising unemployment if corporations could not fund their operations. They supplemented this by the management of regional interest rates to balance the domestic economy. Each branch of the Fed could raise or lower their local interest rate autonomously to attract capital when there was a local shortage or deflect capital when there was too much.
Congress began to manipulate the Federal Reserve for their own self-interest when World War I broke out on April 6, 1917. The alteration to the design of the Fed was to direct it to buy government bonds, not corporate. In this first step, they never reverse this decree after the war. They removed the brilliant design to stimulate the economy directly by purchasing corporate paper during a recession. In the last 2007-2009 crisis, the government wrote a check to TARP and hoped that the banks would lend money, but they did not. Removing this first pillar of the independent Fed distorted the entire system. It then made little sense for bankers to own shares in an entity that was no longer privately controlled.
Banks became traders during the 1929 Boom-Bust Cycle. Goldman Sachs became deeply involved in the bull market, establishing numerous trusts and mergers. Goldman Sachs expanded the leverage going right into the eye of the storm that was about to hit starting on September 3, 1929. The crash wipes our 70% of Goldman’s entire market.
The Glass-Steagall Act, also known as the Banking Act of 1933 (48 Stat. 162), was passed by Congress in 1933 and prohibited commercial banks from engaging in the investment business. Around 5,000 banks failed during the Great Depression largely because banks sold trusts and foreign sovereign government bonds to the public in small denominations. Bill Clinton later repealed Glass-Steagall and handed the power back over to the bankers. Disaster strikes every time the government tries to manipulate the free market.
People believe the Fed has the power to create money out of thin air, yet never explain why the Fed was given that power. You cannot have a fixed money supply as the population increases, then you end up with DEFLATION, which is the rise in the value of money. You can double the money supply, but if the people hoard it, as they tend to do during private waves when the public loses all trust in government, you will never create inflation. There was a huge contraction in the velocity of money during the Great Depression for this very reason.
The Biden Administration, as has the Trump Administration, has come after the Fed. Politicians merely want the economy to appear strong under their reign and fail to see the long-term impact of policies. Politicians have no knowledge of economics or the insight to run the Fed. Not to mention that law does not permit Washington to bark orders at the Fed, although Washington does oversee the Fed and can force the central bank to change its policies to align with government spending or repel debt buyers.
Trump is a borrower, not a lender. His bankruptcies were the result of the business cycle and he leverages himself to the hilt so when the recession comes, he gets in trouble and when it is booming he claims to be a fantastic investor. But he is no trader. He could have hedged the business cycle but did not.
Chairman Jerome Powell and Trump clashed repeatedly. Not so coincidentally, Powell and numerous Fed bank presidents have their terms expiring in 2028 – a key year, as indicated by our models. The Biden Administration has already driven the economy off a cliff. The central bank is merely trying to heal an already injured economy with a limited medical kit.
The Fed is INDEPENDENT and will not be bullied by Biden or Trump. The Fed understands that it has become the world’s central bank and its actions in raising rates have had a far greater impact externally particularly in emerging markets because so many other nations issue their debt in US dollars.
Posted originally on May 1, 2024 By Martin Armstrong |
Dmitry Konstantinovich Kiselyov (born 1954) is the latest warning to the West to issue an ultimatum to the UK and the US. On Russian TV, Kiselyov warned that if a Western power deploys soldiers on the ground in Ukraine to ‘inflict a strategic defeat on Russia,’ it will result in Armageddon. Of course, what I find stunning is how the Western press characterizes him as “Vladimir Putin’s propagandist,” and the implication of those words is that they are not a real threat. The press takes NOTHING said from Russia seriously – it’s all a joke, just propaganda. As they said of Rome when it fell, the Romans were still laughing, watching the games to notice they had been invaded. Not a single journalist has any integrity, for they never consider when they are reading the American/European propaganda that what if they are sleepwalking society into nuclear war?
Kiselyov is not going to say this on national TV without the Kremlin actually delivering this warning. He said:
‘If Nato countries send their troops into Ukraine in order to inflict a strategic defeat on Russia, then the very moment about which Putin once said, “Why do we need the world, if there is no Russia in it?” would come.”
Russia has indeed threatened to ‘turn the US into radioactive ash’ and ‘sink Britain’ below the waves. While some Nato leaders have been more circumspect, this need for war to justify the defaulting on debt that is the real factor behind the West’s desire for war will have far greater consequences than these fake world leaders who are all hand puppets of the Neocons. Kiselyov added: “This is not propaganda.” Yet in the West, the Neocons are saying this is a bluff, and Putin will never use Nukes so the West can completely destroy Russia – their hated enemy for decades, without a shot fired?
I have an old Russian friend who we met back in Tokyo some 20 years ago. She has reiterated to me a question, and she is NOT political or involved in the government.
“Why does the world hate us so much?”
This is where my experience with governments and geopolitics clashes with the reality of humanity. I know the answer is that these fake leaders will NEVER admit that borrowing year after year to get votes is coming to an end and they can no longer sustain our present monetary system—which is why they are moving to CBDCs, and many are talking about now taxing even unrealized gains in stocks and real estate. They think they can cover up their disastrous fiscal mismanagement since World War II with war.
NATO is scared to death if there is no threat of war, then they will be irrelevant and defunded with the money going to Climate Change. They should heed the words of Mahatma Gandhi, but of course, they will NEVER listen: “An eye for an eye will only make the whole world blind.” If NATO keeps up this propaganda that Russia will invade and seek to conquer Europe, what they are doing is pushing Russia into a corner where they might as well commit the annihilation they have been accused of harboring.
When I went into the Kakadu in North Australia and lived off the land for two weeks, my guide, who was the real live version of Crocodile Dundee, warned me that a wounded snake is far more aggressive and even more vigorous/dangerous, so never approach such a snake or I would be dead in minutes. No amount of “training” can prevent terrified wild animals from behaving instinctively or defensively, and trainers and handlers cannot always protect themselves and the public. This has been documented many times with trainers being attacked.
To think for even one second that a nation will not defend itself when its existence is threatened is absolute stupidity. But we have no real investigative journalists and the mainstream media are just propaganda agents that they are accusing Kiselyov of being. Russia will launch whatever it has, as would China, and so would the United States if it is about to be conquered. A defeated person is ALWAYS far more dangerous, just as that snake I was warned about.
This war would be over in 24 hours—instruct Zelensky to HONOR the Minsk Agreement that the West negotiated to buy time to start this war. The West played Putin for a fool. He has offered peace many times. But the West wants the war to cover up the collapse of this, ending borrowing with no intention of ever paying off any debt. All pensions will collapse when they get to the point that they are unable to sell new debt to pay off the old.
The Pope offered to step in to negotiate peace and Zelensky told him to mind his own business.
I warned on February 22, 2022, that Volodymyr Zelensky would be the man they hired to create World War III. My sources made it clear that the election was rigged. The oligarch behind Zelensky was the same one who hired Hunter Biden. Our future will be destroyed by this man who takes orders from the American Neocon. There will be no DEFEAT of Russia. For anyone in charge of a country that was about to be destroyed, the natural response is to take everyone else with you – just push the bottom.
(1) Russia won – Ukraine has lost, and NO Amount of Money will win this war (2) The Administration is pouring money down a black hole where NOBODY knows where it is going (3) Congress is throwing money into a failed war, and they do not demand any accountability, as was the case with Iraq and Afghanistan. Why? (4) Those who will benefit are the Western firms that invested in Ukraine and have lost their shirt – Another bailout?
This is why our insane leaders are urging us to send in troops to Ukraine, which will start World War III. Russia is warning us NOT to do this, and our Western Press refuses to acknowledge anything our warmonger leaders are doing, no less the risks that they are subjecting everyone to over a civil war the West began with this intention from the outset. Some inside Russia advocate nuking Kyiv in a major display and then showing the world what will happen if we continue to go down this path. They suggest this is the ONLY way to stop World War III and that the people will wake up and overthrow the warmonger leaders pushing us to Armageddon.
Putin is NOT a warmonger despite all the bullshit put out by the Western Press. The West staged the Moscow attack and did not even try to hide that they were behind it. They are desperate to try to get Putin to attack anything in NATO so they can pretend he is the aggressor when it is our Neocons and NATO. What I fear is that Ukraine will try to kill Putin, KNOWING that such an act will replace him with a warmonger, and we will get into World War III. I can confirm that the critics behind Putin have been telling him this war is with the USA and NATO – not Ukraine. The hardliners have told him he should have taken out Ukraine as the US did to Iraq, and this war would have been over in 6 weeks, and Zelensky would not have been able to create his media tour.
If Ukraine kills Putin, it will be at the direction of NATO, and then they will get their World War III. That would be the result if Russia attacked Washington to kill Biden, no matter how unpopular he is. Such an act would galvanize the USA into a single action for war,
My concern is that Ukraine is stupid enough to attack Russia and try to kill Putin for his inauguration day – May 7th.
This is a library of News Events not reported by the Main Stream Media documenting & connecting the dots on How the Obama Marxist Liberal agenda is destroying America
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