Friday, March 23, 2007

Money is Not Wealth

Money is Not Wealth

Please permit me to pause in my prosecution of the information war against Raul Castro and the rest of his gang to discuss an extremely important economic reality. I wanted to strongly insist that money is not wealth. Money is but a means to convey wealth. Therefore, it is vital that we abolish income tax in the new Cuba. Why? No nation has every created a broad wealthy middle class using the income tax. Here is the reason. It is because the average person does not control the supply of anything especially the supply of money. The governments and bankers control the supply of money. This is why today the US ponders eliminating the penny. The US government has inflated or increased the supply of money in the economy so much that now the value of the metal in the penny is more valuable than what can be purchased by that penny. During the last ten years alone the US Treasury has tripled the supply of dollars in circulation. This has been the reason for the huge increase in Real Estate prices. And now that the bankers have locked homeowners into these inflated prices, the actual value of these homes is now crashing down to earth around them. So homeowners are left with a home valued at half what they owe for it – plus interest.

The left is constantly calling for a progressive income tax but this is due to their ignorance of almost everything economic. No matter how “fair” they design the tax scale today, the bankers can, have and will continue to inflate the money supply in the future to suit THEIR needs and not that of the average American. So some “progressive” gets elected and passes new tax laws that stop any family from paying any tax until they make at least $100,000 per year. Most Americans will immediately say yes, this is fair. Unfortunately the bankers, in collusion with lawyers will immediately add more money to the economy by lending it out of thin air to the privileged elite. But the quantity of stuff available to be purchased has remained the same so, under the law of supply and demand, it soon requires more of these extra dollars to buy the same amount of stuff that use to cost less. Remember how little bread and milk used to cost according to your grandmother? The higher inflated prices mean workers (not including Congress who indexes or increases THEIR salary to increase with the rate of inflation that they make possible) will demand more pay to meet these new price increases. Soon everybody is right back in the upper tax brackets again. In addition we don’t control the supply of anything else. Mostly it is the bankers and big capitalists who control the supply of things like gasoline and food. So these fat cats control the supply of stuff we need to buy to live a decent life and also the supply of money that we use to purchase these things. The game is rigged. So the politicians apply economic snake oil elixirs like price controls, minimum wages, communist revolutions and other schemes that massage the masses and make it appear that our leaders really “care.”

The solution is quite simple to stop this slave labor economic treadmill that leaves the hard working middleclass in the same place no matter how fast they run. Taking a man’s labor has always been wrong and IS a form of slavery. The politicians with their coconspirators the bankers, lawyers and cops that our income tax pays to enforce this tyranny, play the class warfare card that keep us fighting amongst ourselves while they ream us good! The answer is to eliminate all tax on income, sales, production, imports, exports and other taxes on the marketplace then replace those with a tax based on the location value of land. Naturally the big economic players and liberal elites like Barbara Streisand and other land barons are against this because guess who owns the best located land? Therefore, under my proposal, who will finally be paying their fair share and who will be removed from the tax rolls? Exactly! This plan will allow the poorest to create then save enough wealth to raise themselves out of poverty before ever being taxed. Plus the wealthiest will be paying their fair share and no longer be able to hoard urban land for speculative profit.

Now that the Real Estate market is plummeting once again into the bust end of the boom bust cycle we should take this opportunity to change this cruel system that is the root of most poverty, crime and other decadence in society. I will admit that no one will in the future be able to make huge profits in Real Estate under this stable price market. But with everyone working, saving and housed there will be almost no crime or other social problems brought about by this desperation. So all of our security and welfare costs will plummet and we will all live in a more peaceful , prosperous society. What’s that worth to you?

Tomás Estrada-Palma

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