Oh, Say, Can You Still See?
Part 6: Taxes are Unnecessary

By Dr. Russell McDougal

Dear Reader,

You are being stolen blind. Few would put up with this theft if they had any idea what is going on. The present day global financial system is extraordinarily complex. Still, the bottom line is that it is predatory. When five to 10 percent of the U.S. population understands that fact, the beast's days will be numbered.

Spread the word.

Few of us take the time to add up all the taxes to which we are subjected. That is most unfortunate. The American Revolution was fought, in part, because of exorbitant tax rates in the range of six percent. Great Britain, the mightiest empire on earth at that time, was soundly defeated because of their overreach.

You'll also remember that another significant Revolutionary War issue was in regards to "taxation without representation." I suggest to you that the current Congress, with few exceptions, represents itself and the money power behind it. You are an afterthought, at best. You are being taxed without honest representation.

There is good reason why you don't see exposés like this current series on the Fed from the mainstream media. Bluntly put, for numerous reasons, they are too compromised to venture near the truth. Fortunately, there are many wonderful sources of information outside of mainstream media for those with the desire and determination to seek it out.

But back to taxes. Let's list a few of them that we are subject to:

• Income tax- federal and state
• Sales tax- state and local
• Social Security tax (spent instead of held in trust)
• Workman's Comp tax
• Medicare
• Medicaid
• Unemployment tax
• Estate tax
• Property tax
• Liquor and tobacco tax
• Gasoline tax
• Luxury tax
• Airline tax
• Automobile tax
• Corporate tax
• Business license tax
• Amusement tax
• Tolls
• Phone tax
• Tattoo tax (Arkansas)
• Litigation tax (Tennessee)

On top of all this, I've shown you in these Federal Reserve articles that you're also under the spell of a massive hidden tax. The Fed robs you blind when they create money out of nothing and add it to the current supply of fiat. The money supply in the U.S. is currently expanding at a 14-percent annual rate. The government statisticians blatantly lie and tell you "inflation" is closer to three percent. You and your current dollar holdings pay this hidden tax also. Apparently, the previous list isn't grievous enough.

Let's review the mechanism of money creation by the government and Fed usurpers. Again, it's a debt-based process. Without debt there is no modern money. Astoundingly, if all debts were paid off, no money supply would remain.

The process starts when the U.S. Treasury prints up fancy notes and bonds. These have no backing other than the sweat and labor of citizens. The Treasury then tries to find buyers for these pieces of paper. Buyers may be individuals, corporations, countries, or other entities. If the auctions go well, the Treasury can raise the required funding for government adventures.

If the auction doesn't go so well, it's still not that big of a problem. The Bucks R Us franchise (Fed) can come to the rescue with shocking ease. The Fed will buy the bonds or notes the Treasury can't sell to others. They monetize the bonds or notes. Fancy word that means they create the funding out of nothing and credit it to the Treasury/government.

This is how "deficits" are handled and this is how crony insiders get bailed out of their frequent messes. We are now looking at some of the largest bailouts in American history. It is imperative that you understand what they signify. I will write more about this phenomenon as this series wraps up.

Once the Fed comes into play, this privileged Bucks R Us franchise receives interest from you for the created debt. You can buy some really cool toys when you receive interest on trillions of dollars. You would also have plenty of time to play with them because you don't need a real job.

Let's look at a parallel example. Suppose you owned the world's finest collection of 1870 gold dollars in the highest graded condition. You have 10 of them and each are valued around $5,000. Clearly there's a nice value present. What if some counterfeiter came in and created another five coins every year or two? Any chance your 10 coins would hold their current value, all other things being equal? Of course not. Your coins would be worth less and less with each additional coin added to the population.

In general, the supply of money is similar to this example. Printing 10 to 15 percent more money and throwing it into the existing supply cheapens each dollar already present. Current owners of dollars are robbed just like the holder of the 10 gold dollars.

This has been the state of affairs since the Fed barged upon the scene in 1913. It is an instrument of inflation by charter. Prices of goods and services subsequently rise. The money in common use - the dollar - is diluted with regularity, and those with valuable goods or services demand more of them as compensation.

So why are taxes unnecessary as the title of this article portrays? The government/Treasury/Fed have all the mechanisms in place to raise whatever money they want. I have just given one example of their wiles. Instead of just printing an additional five, 10, or 15 percent each year, they could raise their entire budget just by printing 100 percent of the budgetary needs. You wouldn't have to pay the gazillion taxes that come our way on an hourly and daily basis. You'd pay them nevertheless.

Either way, they are stealing the fruit of your labors. Of course, if the budget were raised this way, U.S. citizens would completely understand the fraudulent money mechanism and those that prosper from it. Much better to steal ‘em myopic with one trick and blind with another.

You have four options for escaping this trap:

1. You can get your own money franchise. Good luck.
2. You can buy gold.
3. You can buy silver.
4. You can buy other tangible items.

Invest Resourcefully,

Rusty

Market Watch

How Do Other Financial Newsletters Perform?

By Charles Delvalle

A question from a reader:

Is there a web site where you can check out investment advisory firms or newsletters to really see what the track record is before purchasing? I have been burnt so many times on hyped up investments from some of these companies that simply do not perform.
– Phillip F

Dear Phillip,

There's only one newsletter I know of that lets you track how other newsletters are doing. It's called The Hulbert Digest. If anyone knows of any other sites out there, let me know by sending me an e-mail at feedback@investorsdailyedge.com.

But one thing to remember is that Hulbert can't possibly cover every newsletter out there. For instance, I can list off at least 50 reputable newsletters that aren't listed in the digest.

So don't think that just because your newsletter isn't included that it's a bad thing.

One thing to note - if you subscribe to a newsletter that doesn't freely publish their closed-out positions, then ask yourself: What are they hiding?

Often times, financial newsletters don't publish closed positions in an effort to mask the portfolio's true return for the year. It also masks losing trades.

All of our newsletters publish closed-out positions for the current year. This allows readers to see how the full portfolio has done for the year.

If you enjoy IDE's daily investing advice, you'll definitely be interested in checking out our sister publication, Early to Rise. Each morning, you'll get powerful wealth-building advice covering real estate, entrepreneurship, personal finance, marketing, and much more.
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