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Diane Richardson

September 14, 2016 9:55 AM, updated September 18 at 12:30 PM

It's Time for Payback using a Wealth Tax

The Federal Reserve has for decades created wealth for the rich globally by manipulating interest rates and the money supply at our expense. This has reduced our standard of living and made us far poorer than we should be. It's time for payback by adopting a wealth tax.

The Federal Reserve is a private banking system that our government adopted to manage our money within a set of guidelines, both written and unwritten. Its primary purpose is to insure that our economy always works satisfactorily. (At the moment it is in failure mode due primarily to Mr. Obama's excessive regulation, and the Fed's inability to think outside of a self-serving global mindset.)

The Federal Revere was chartered in 1917 and signed into law by President Woodrow Wilson. However, in the 1960s, it developed a menacing and manipulatory goal to fine-tune our financial lives by adopting money supply and interest rate policies developed by European financial regulators to insure that our cost of living would become high enough that it would force the need for the two-worker family. This, its members reasoned, was needed because they thought that we had too much money left over for leisure activities. I presumed this to mean they wanted a larger share of our incomes committed to the borrowing of money, which of course makes the bankers richer.

Since then the Federal Reserve has managed interest rates and the money supply in such a way as to make its member banks and global banking partners very rich and powerful while our cost of living has soared to the point where, through inflation, it is no longer possible for newlyweds to buy a home, because instead of needing to save for the downpayment to buy an average starter home for say $30K, they now need to save for a downpayment on a $180K home, while income levels have not increase proportionately. And the monthly principal, interest, taxes and upkeep on a $180K home is substantial higher than for a $30K home, meaning it takes far more of our available income to buy and maintain a more costly home leaving us far less for everything else.

Ongoing price inflation** also caused by the Federal Reserve 'giving away' our money to help protect the rich and powerful banking institutions from bad investments by buying their bad debts and by fortifying large global institutions against economic instabilities (too big to fail) has also causes the price of everything else to rise year-after-year, to the point where once something cost 10 cents it now costs a $1 or $2.

**Price Inflation is the direct result of the Federal Reserve creating too large a money supply, which makes money worth less — money has less value, so the price of everything rises - it then takes more of it to buy everything.

Professor Harvey argues that the Fed does not cause inflation, actual marketplace demand does. He argues that the major causes of Inflation are:
Market Power — little or no competition (OPEC)
Demand Pull — a rise in demand relative to supply
Bidding Up Asset Market Prices — bidding up the price of commodities
Sudden Supply Loss — a disaster severely impact the supply of a major product (Source)

Professor Harvey's argument is that the Fed does not cause inflation, it only responds to the need for more money, due to inflated market prices, by creating it then lending it or creating it to buy asset from others, good or bad.

All this may be true, but for the purposes of this paper, the Fed is the cause of inflation because it facilitates these activities, many of which are unwise and unnecessary (just like loansharking and Ponzi schemes) — even though 'free-market' based — because alternate choices could have been made (see examples), and most importantly, it (the Fed) has sanctioned these activities beforehand by 'promising' to prevent the major lending institutions from failing (as does the US Government) — too big to fail — in order to profit from these transactions.

Example of choice to prevent inflation:
Market Power — little or no competition (OPEC). Reduce OPEC consumption while bring other fuel sources to the marketplace.
Demand Pull — a rise in demand relative to supply. Seek alternative methods and sources.
Bidding Up Asset Market Prices — bidding up the price of commodities. Demand is a function of desire. Seek alternate desires.
Sudden Supply Loss — a disaster severely impact the supply of a major product. The world will not end, seek alternates.

The point is, the Fed is facilitating inflation in these ways for the purpose of increasing our debt load, and by buying bad debt (QE 1, QE 2, QE 3, MBSs) to the tune of $4.5 trillion. Much of the so-called 'assets' it purchased using our money are unlikely to ever have lasting value. (Reference)

In the meantime, those in professions that earn enough to leave them with some excess funds, have been able to invest in real estate, the stock market and other things of value, and by doing so have become richer. This means that as we became poorer because of Fed policies the rich became much richer, and the very rich became super rich.

And what do the super rich do with there money and influence? They use this power to try to rule the world via globalism. They create strategies like the NWO, and rather than try to bring all countries up to our constitutional standards, which guarantees our freedoms, they try to bring us down and to control us -- learn from the video in the feature section of the links named 'Trump vs Globalism,' and other articles on this web site.

But, if we don't fix the problems of US debt and inflation, we could end up with financial martial law. After which the government could confiscate an estimated $25 trillion in retirement funds, with a promise to 'manage them for us,' then pay down the debt while redistributing the funds to the non-savers and Social Security recipients, and reducing our planned retirement incomes based on a government formula. And it could force us all to buy government bonds, except of course all the welfare voters.

So, how do we fix these problems?

1) We must restore the US economy by eliminating every one of Obama's 24,000 plus rules and regulations that is preventing growth and jobs. This is a Trump priority. Clinton will continue Obama's economic policies, but seek more debt spending from Congress for infrastructure projects. Which will only create temporary jobs if the money isn't wasted elsewhere -- like $800 billion was wasted in 2008--2009.

2) We must restore the balance of trades, currently at minus $800 billion per year, a Trump priority. This a against the wishes of big business, globalists, and Mrs. Clinton and Mr. Obama.

3) We should remove the Federal Reserve from managing our money supply, because it has done more harm than good serving its global partners. Let the US Treasury manage our money. Let the Fed distribute it.

4) We should 'set' the Prime Rate at 3% so that lending banks will always have the incentive to lend money. This will end the related flux that short term traders depend on to steal money from us. I'm suggesting that we adopt the Canadian Banking System model.

5) We should pay down the US debt sufficiently enough to return to 1960-70s pricing on all good and services, by returning to US Treasury backed currency at a reduced exchange rate and voiding Federal Reserve currency, which is very important to getting back within a sane value of money -- call it a revaluation of the US dollar.

6) Given we now live in a world that the rich demand globalization so they can take advantage of every opportunity to become even richer, I think it is time for a global wealth tax. (I have written about this previous in a paper on taxes.)

Proposal: Set a minimum annual Flat Tax rate of 3% on all wealth (net worth), including inherited, donated, etc., over $5 million (including all wealth owned by foreigners held in US banks, brokerages, etc. and value of their real estate holdings) with no exceptions. This level of taxation accepts the fact that all wealth appreciates over time due to its invested ‘location,’ be it real estate, bonds, stocks, or other.

This means that someone with a net worth of $10 million would pay an annual wealth tax of $100K, and someone with a newt worth of $10 billion would pay an annual wealth tax of $300 million. Wow! That's a lot of money. Yes it is. And it all rightfully belongs to us because the Fed 'stole it' from us through inflation and activities like QE, and redistributed it to the rich through inflation. Which should be a crime, but is not.

With 2% going to the country where the wealth resides and 1% committed to a global fund to provide food and shelter for the poor. However, given the level of likely corruption in giving this money to the UN or any government for distribution, the money should be used only to purchase and ship food and shelter from approved vendors.

And to insure foundations, estates, or other entities are not used to protect wealth from taxation, or used as another form of tax-free income, it would be illegal for any contributor or beneficiary of such a formation or their heirs to benefit in any way, including kickbacks from friends, and or board membership.

Currently these folks only pay taxes on earnings or dividends, or none at all.

These new taxes would be paid quarterly using a simple one page form.


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It's Time for Payback using a Wealth Tax

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