October 27, 2011
Super Committee Democrats have released details on their so-called deficit reduction plan… and it ain’t pretty.
In order to pay back the bankers for money created out of thin air by the Federal Reserve and then loaned to Congress so it can continue to wage mass murder campaigns and pay for old ones, the Democrats want – surprise, surprise – to significantly raise taxes.
“Democrats have proposed a framework for the Super Committee that multiple aides confirm is around $3 trillion in deficit reduction over the next decade through a cocktail of cuts to entitlements, including Medicare, and as much as $1.3 trillion in new tax revenues,” ABC reported yesterday.
In order to sell a massive tax increase, Democrats will oppose cuts to Medicaid and Medicare and demand taxes on the so-called rich (now defined as a person who makes $250,00 a year).
“The people of this country are looking for fairness. They are sitting in and sitting down to protest the unwillingness of government to legislate with their best interests in mind. These proposals rob from the poor, the sick and the elderly, the very least among us,” said Rep. John Lewis, D-Ga.
During the super committee dog and pony show, an OWS protester found her way to the floor and interrupted testimony. She called for taxing the rich and ending the wars (as if the two proposals are inseparable). See the video below.
Any call for taxing the rich (an idea fronted by billionaire Warren Buffett and adopted by grateful Democrats) will naturally result in further eroding the middle class. Most of the “rich” who will fall under the gun (literally) are millionaires who own businesses that provide most of the jobs in this country. Billionaires and the mega-rich like the Rockefellers and the Gates don’t pay taxes – they sock their wealth into foundations.
After the $250,000 and above “rich” (up to the untouchable multi-billionaires who never pay taxes, as Buffett admitted) are taxed out of existence, the federal leviathan beast will turn on the middle class to raise revenue to pay for manufactured deficits (and a truly unplayable national debt) it insists we owe the bankers.
Of course, when the corporate media reports about such things, they never talk about the process of deficit spending. Here’s how it works, as explained by Ron Paul:
Both the public and most members of Congress do not understand the mechanics of how the Fed and the Treasury Department work together to create new money and new debt. It’s a circular process, but one that affects all Americans perhaps even more than the actions of their elected Congress.
In order to borrow money the Treasury department creates new debt securities, which it sells at auction to banks. However, banks generally do not maintain excess liquidity for the purchase of additional assets, but rather loan out funds up to the limit of their reserve requirements.
In order to facilitate the purchase of new Treasury debt, the Federal Reserve creates money out of thin air to purchase old Treasury debt from the dealers in the market. Banks then find themselves holding excess reserves, which they wish to get rid of by purchasing new assets– in this case newly issued Treasury debt.
These new excess reserves have an expansionary effect on the banking system. Given a reserve requirement of 5% and thus a money multiplier of 20, $1 billion of asset purchases by the Fed can result in $20 billion of new credit creation, as the initial $1 billion is loaned out through the banking system. This entire system is purely inflationary and causes prices to rise and the purchasing power of the dollar to fall.
If we continue playing the deficit game designed to enrich the bankers who own the Federal Reserve we will ultimately end up homeless on the continent that our fathers conquered, as Thomas Jefferson warned.
The so-called super committee is a grossly unconstitutional creation designed to run roughshod over the will of the American people.
“Where in the world did that come from?” Ron Paul demanded after the idea was floated. “And where is that going to lead to? That is monstrous. I keep looking and I can’t find any place in the Constitution where we have the authority to create such a creature as the super Congress.”