Taxes: Eliminating a Barbarous Relic from the Past

Currency-4R

 

1851-Augustus-Humbert-50-Gold

The FT ran a commentary entitled, “The case for retiring another ‘barbarous relic'” on paper money. Money has historically never been a store of value for money is on the opposite side of tangible assets. Even when gold was used as money during the 19th century, its discovery in California was highly inflationary. Rooms for rent in San Francisco ran up to five times the price of rooms in New York City. Gold declined so much in purchasing power on the West Coast that they began issuing $50 gold coins, compared to $20 gold coins on the East Coast. It is simply wrong to pretend that money should be a store of value for to accomplish that requires COMMUNISM where there will never be a fluctuation in the value of anything. It makes for great sophistry, but it hurts a lot of people.

Money-Assets

Paper money will ALWAYS rise and fall in value for money is on the opposite side of EVERYTHING else in life from assets (including gold when there is no gold standard) to wages. Eliminating paper money will indeed hand government more power — the power to tax and to prevent anyone from buying or selling without their permission. This is a substantially different result from just changing what we use for money. Moving to electronic money may be more efficient, but alongside governmental power, it leads to economic totalitarianism. This is by no means a future we should embrace with open arms UNLESS we eliminate taxation, which is a barbarous relic from the past back when money was a commodity. Since government could not create an increase in the supply of the commodity, it required taxes to get some back to re-spend. We moved to paper money, but its value solely resides in the confidence people bestow upon the government. There is no longer a need for taxation, as the government need only create more to pay its bills. Restrain that issuance and eliminate career politicians, now we are talking about a future to embrace free of Marxism or Keynesian economics.

The Next Four Years After 2015.75

Rome Collapse 86 Years

 

QUESTION: What will happen after 2015.75? Can you share anything?

Thanks from those who cannot attend your conference

PD

ANSWER: All systems tend to collapse in ten 8.6-year waves, and the last 4.3 years are typically the worst. That is what we should see between 2015.75 and 2020.05. By comparison, the Roman Emperor Valerian I was the first emperor captured by the enemy. He was used as a footstool while wearing the purple robe of an emperor. When he died, he was stuffed like a trophy. That was in 260 AD. The next four years saw a complete collapse of everything, including religion. Romans prayed but nothing happened; this is when Christianity took off.

We are now approaching that same last 4.3-year leg in socialism from 1934. This is the peak in confidence in government and it will evaporate rapidly as it did in 260 AD. This is not the end of the world, but it will be a chance to push back to restore our liberty. It will get bad at first because government will fight hard going into 2017. By mid-2018, we should begin to see the trend with more clarity for once and all.

Most Schools Do Not Teach Computer Science

OLPH-School-1

Back in the 90s, we would outfit schools with computers because, in my judgment, computer science is probably the most essential qualification next to reading. You can even get a pocket calculator to do your math, and you can have phones read your text messages, but the one skill set that children cannot do without is computer science. I tried to do my part in helping local Catholic schools, mainly because public schools were hopelessly bogged down in bureaucratic red tape.

Nothing has changed. Teachers want a fortune to teach with pensions nobody else will ever see, but they DO NOT have the skill set to teach computer science themselves, with a very small percentage being an exception. This is the NUMBER ONE problem facing education. Technology has passed the teachers by and they do not even notice. Most schools simply do not teach computer science and it is handicapping our children in a very dramatic manner. Friends looked at me strangely for handing three-year-olds iPads for Christmas. Within three months, they were doing better than their parents were. Food for thought.

The #1 Terrorist Group = Domestic Citizens

Citizens-Threat

 

Government talks about Islamic terrorists, but their number one fear is YOU. The internment camps are for you, not Islamic extremists. Government CANNOT honor its promises so it will not even try. They are confiscating money everywhere, doubling fines, and punishing people for insane things.

A neighbor received a ticket and a $200 fine for using a cell phone while driving. The use? Looking at the Google Maps. She even went to court with her phone records to prove she was not on the phone. The judge declared that she should have looked at that BEFORE she left. I suppose if you write down the directions and look at the piece of paper that is OK, you just can’t look at it on your phone. That applies to even looking at the time on your phone.

The government claims it wants to eliminate guns to protect society. The problem will be that the criminals do not buy their guns at a store. They want to disarm the public because you are their number one fear as outlined in this discussion paper.

The Dow

DJFOR-W 8-22-2015

The failure of the Dow to close above 17007 confirms that we are not yet ready to take off to the upside. We needed a closing ABOVE 17007 to firm up the market to state definitively that the August low will hold and new highs are ahead. We needed a minimum closing ABOVE 16632 to firm up short-term support. The closing BELOW 16632 does not provide a Monthly Sell Signal; it is a warning that the Dow remains vulnerable going into September. Only a monthly closing BELOW 15550 would have been a MAJOR SELL SIGNAL that key support has held. Consequently, the close of August was not strong enough to avoid a retest of the lows. Therefore, the Dow did not finish in a position that would imply NEW LOWS ahead just yet and there was no confirmation of a bullish development.

The forecast array showed the week of the 24th as a Panic. However, the long-term turning point targets are for the week of the September 21. That will more likely than not now become an important turning point as it grows in intensity. This is not over until Obama sings.

We are at least going to see a retest of the lows and produce a lower weekly closing, unless we start to close significantly higher on a weekly basis above at least the 17875 level. Otherwise, a weekly closing below 16008 should signal a revisit of the lows during September. Only a breach of last year’s low will warn of the slingshot move setup. What would be very bearish would be a rally to retest the highs without new highs during the week of September 21, which would then warn of a crash.

jumper

Those calling for the end of the world and a 1929 type depression are only looking at the charts. They are clueless as to how everything else is setting up. Nothing is in line for such an event. Keep in mind that event created big government and socialism. This time government is in crash mode, not the private sector. Politicians will do the jumping this time. If the stock market crashed, capital would then run into bonds. Just how low do you think interest rates would go — negative 20%? Come on. This is a 5000-year low in interest rates so we will have to flip out to the upside. There is no choice in this regard.