Originally Posted by
stjames1_53
The original intent of income tax was to support the war effort of this country in declared wars. It was to pay off the war debt.
but it was leveraged on business owners and those who had a "profit" not the wage earner.
Congress changed all of that once the SCOTUS called them down on it. That created a vacuum and was promptly filled with the 16th A.
Realize of course that it was used to pay a user fee from the Fed Res because we use their currency.
Then along comes FDR who capitalized upon it and turned America into a welfare state, passing the bill along to the new found taxpayers. With that, along came out of control Keynesian spending: Spend today what you don't have, pass it forward along with deficits, and keep the taxpayer enslaved to the Fed Res with the US Treasury acting like a bagman for the bank.
The fed res contracts about a 15 cents per bill printed by the treasury. They (fed res) then "loan" the face value back to us. If we borrowed twenty dollars, we pay them twenty plus interest. But their only investment was 15 cents for the twenty dollar bill, plus the interest.
Let's say I'm a bank. I put your assets in my safe and charge you a minimum fee. Let's give this a value of one hundred dollars, and it is all the money there is. I sweet talk you into investing in some short term loans to increase their money.
Remember, all I have is on hundred dollars. Several people come to me wanting a loan, so I offer them a loan with a simple interest and I eventually loan out the 100 dollars, but I promised the owner of the money that he would make money on his "investment."
The total loan value was for $125 with the interest. Where do the borrowers get the interest to repay the loan? There's only a hundred bucks in circulation, but the bank is expecting that interest.
What to do......well, we can inflate the value of the money to "create" more value on the backside. Now I claim the $100 is worth $200 (inflation) and loan more money to get cash circulating so I can recoup my original money plus interest.
Interest is created out of thin air. There really isn't any more money, it's just been inflated to appear to be more than there really is. It's still only a hundred bucks, but now there's interest to be collected. In the mean time, property has been offered up as collateral, which of course is the main intent. Something of value for nothing given. Fiat money is just that. It has no value except for what the lenders say it has.
I can hardly wait for the replies, but let me leave you with one last thought: Why would you pay $250,000 for a $75,000 dollar home? It may be that it's worth even less than $75,000 due to inflation, but because the "market" calls for it, you pay the principle and the interest.
The fed res can set the interest rates to absolute zero, but you wont see that when you borrow money. You still pay the interest which ends up in the banks controlled by the Fed Res.
Doubt me? The current interest rates from the fed res are at historic lows: Zero.
Now go try to borrow money without having incurred the interest. Wont happened, can't happen. We are still being charged by the fed res for using their currency, and not ours. (check the top of the 20 in your wallet and see who's name is on it)