Like many Boomers, I have a vested interest in current events, the economy, and the political intrigues on the world stage. It seems we are seeing–for the first time in history–a world so interconnected economically that the individual loses her relevance.
But like many my age, I have more stuff and more responsibility than I want. I long for a simpler life, but overhead keeps getting in the way, much of it related to taxes.
To help understand how economics works, I read The Creature from Jekyll Island: A Second Look at the Federal Reserve, by G. Edward Griffin. Creature is a true eye-opener. It gives the history of banking, explains “commodity” and “fiat” money. It also tells how J. P. Morgan and his cronies finagled behind the scenes to craft the Federal Reserve Act, which was passed in 1913. This officially put the federal government in the debt-creation business. The income tax, passed the same year, guaranteed perpetual cash flow to the government to pay interest to the central bank on federal debt. Griffin says inflation is a hidden tax. It is only good for those who are in debt, like governments. It reduces buying power for those who have money. You don’t get value for money with interest payments.
In other words, they created a financial system that starts at the bottom line and goes down from there. The dollar is backed by nothing except government promises to pay, but it commits the unborn to pay those debts. There is nothing representative or democratic about this. And, a country in debt cannot be free. This is suicidal fiscal policy, because the more we borrow from the future, the grimmer it looks.
Most government debt is to itself, and to Boomers like me, who were forced to pay payroll taxes during our earning years. That those coming behind us are expected to make good on government promises, made without their permission, defies common sense. No wonder they are dropping out.
What’s the solution? It seems the best solution for the individual is to get and stay out of debt, and to become more fiscally responsible than the federal government.