OECD Ensuring We Will Crash and Burn

While the media tries to keep you in the dark about what really matters, the global elite are tightening the noose on Liberty. BTW, if anyone cares about the facts in the Zimmerman case, this may help.

On Friday, the rich governments of the world collaborated on how they can extract tax dollars from corporations and individuals, in their ongoing attempts to salvage their bankrupt countries and maintain their power and perks. How far will the OECD (Organisation for Economic Co-operation and Development) go to prevent reforming their member countries bloated bureaucracies? Allow me to quote the Director of the OECD’s Centre for Tax Policy, Pascal Saint-Amans, who said:

“We clearly have reached the point where the governments don’t care any more about taboos, and they just say we cannot be bound by pure contractual arrangements.”

Bankrupt Governments do not care about the rule of law and bothersome things like contracts when it comes to sucking tax payers dry for their benefit. Those that have been kept sufficiently in the dark by the mainstream media, may not see the crackdown on tax havens and “tax cheats” as a problem. In fact, you may think this is a good thing (since we’ve been brainwashed into thinking that it’s a certainty to be taxed to death). Please allow me to tell you why this is a bad thing, which will result in a “crash and burn” outcome, instead of a managed solution that preserves freedoms.

The problem with our economy is the lack of true capital formation (from savings, not debt). Lasting growth is financed with capital. However, we have substituted credit for capital over the last 30 years, and as you can see from the green line in Denninger’s graph below, it has produced a real GDP that is negative, and dependent on ever-larger infusions of debt to keep the Ponzi scheme from imploding. Politicians, refusing to level with the folks, have produced a debt that can never be repaid, and now requires at least a 30% contraction in GDP to relieve the imbalances. BTW, this same debt-based growth plagues Europe, Japan, and China.

Taxes reduce savings and therefore capital formation. Government, which refuses to contract, is paid for by confiscating savings from producers. Please explain to me how confiscating more money from the productive class to grow the unproductive class (govt) is sustainable? It’s not, which is why it always implodes. Who knows, maybe shows like House of Cards will open people’s eyes to the inherent corruption of govt, things like the NSA surveillance and gun rights makes more sense.

The actions by the G20 to close loopholes to keep people and corporations from avoiding taxes will further collapse global liquidity, and therefore economies. Our economic issues are not because government doesn’t have enough money. Our problems stem from governments becoming too big, sucking the lifeblood (capital) out of the productive/innovative class; and from not enforcing the rule of law equally, which also comes from the abuse of power obtained from an obese government (political class). Does anyone remember the rallying cry for the American Revolution – “NO TAXATION WITHOUT REPRESENTATION”.

All forms of government are inhabited by people who want to protect their power and perks. The difference between them and us is they think they have the means (i.e. IRS, NSA, Dept of Homeland Security) to do what ever they want to keep their jobs and power. Our Founding Fathers understood the flaws of man and tried to protect us from the abuses of power. Until we get a fearless leader, our Virtual President Whittle reminds us why we were given a 2nd Amendment, and the real facts on “gun violence”. Ignore the warnings, and we will most certainly not bypass the path to Fascism/Communism.

We are at a critical juncture. If ALL of the incumbents are not thrown out of office in 2014, there is no doubt we will begin to crash and burn by 2016. De facto term-limits (and equal enforcement of the rule of law) must be the slogan(s) for every protest and rally going into the elections. The alternative insures that in addition to death and taxes, media distraction will remain a certainty – http://www.youtube.com/watch?v=Lf5_bZChwA4.

 

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