Monday, October 24, 2005

Paying the Price - taxation without representation

It’s that time of the year again: my local council is sending out leaflets: Priorities for Next Year’s Budget – Have your Say… It would be nice if they told me that everything is going well and then asked what additional services I might want them to deliver in return for my ever increasing council tax. But no, they promise to try their best to keep future tax rises reasonable and then ask which services I would be prepared to cut. We’re getting ever less in return for ever higher taxes.

The key reason for this is the steady flow of funds from the public to the private sector, both nationally and locally. I’m not talking about the use of private contractors here, I’m talking about debt financing. Our government has the right to issue money. It delegates that right to the banks and then borrows the money which it could have issued itself back from the banks at interest. The banks issue the money at no risk to themselves because it is backed by absolutely nothing (other than our taxes, of course). In return they get to milk the national cow forever.

Mayer Amschel Rothschild, the founder of the world’s leading banking dynasty was a great visionary in this respect when he declared: "Permit me to issue and control the money of a nation and I care not who makes its laws". Today all governments are in debt and that debt is serviced through our tax payments. Yet nobody seems to ask how come that individuals or even companies have more assets than all the governments and the people of the world put together? Otherwise, how could they have lent those vast sums which whole nations could not produce? We have been falling for a confidence trick since the days of William of Orange where bankers lend us what they haven’t got and then charge us handsomely for it. And they do so legally, because once the bankers corrupted the government with their money, they listened to them and not their people.


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