Posted Oct 13, 2013 by Martin Armstrong
The shaky global economy already is besieged by other threats, including the sudden drop in exports from China for September. We are headed into this debt vortex from which rational minds simply cannot prevail. We are plagued by old politicians too entrenched in the system to see that the road they are on leads to total destruction no different from communism. If the government claims it owns everything and pays you $25,000 a year to live or they tax and fine everything leaving you with only $25,000 at the end of the day, what is the difference? That is like saying we are a free society but you have to request permission to protest or even travel. Our so-called democracies are merely corrupt republics and we have ZERO say in anything material.
Ultimately, to answer the many questions I get about how to reform the political system, let me say this. Switzerland is an example of probably the best political system ever devised – that of the Republic of Genoa in northern Italy. The leaders hold that position for one year only. The top rich families of Genoa were the ruling class. However, each family had its turn for one year only. Genoa was run not in a some mythical contest between the rich and the poor, but as a corporation in competition with Venice and Florence. When the competitive focus is external rather than internal class competition, then the whole benefits from the competition against other states. The short duration of a Doge (leader) ensured that he would pass no law that was Draconian for he would soon suffer that same fate. Likewise, laws were fair because next year he would be subjected to retaliation.
The Swiss system submits individual issues to a public vote only if it is constitutional. That should be expanded to tax power etc. Today, everything should be submitted to a public vote. You log on to your computer and vote. Those who do not have one, go to the local library. If this is the case, the number of laws will diminish. After all, man has written billions of laws trying to improve upon the Ten Commandments by manipulating society while they are at it.
If we shorten the term of office, eliminate second terms, then the people in office will really be the people and not career politicians losing touch with reality. TAXES are no longer necessary at the federal level. Print what we need to cover the cost of government. Those who think that will be inflationary are unfamiliar with the facts. Virtually 70% of the national debts is accumulative interest payments that do nothing by subsidize banking and eliminates capital that would otherwise be lent to the private sector expanding the economy and truly lifting the VELOCITY of money..
If the $17 trillion in debt was invested in the private sector, can you imagine the amount of jobs that would be created? Eliminate the payroll tax and the cost of labor will drop sharply bringing jobs back home. Taxes are necessary for state and local government that cannot print money. There also, we must privatize government as much as possible because ONLY a private company will meet its obligations. Pensions are unfunded in the public sector because they assumed they would always be able to raise taxes. They are morons for they never looking at the math behind such a model. The City of Detroit collapsed because 50% of current taxes went to pensions driving taxes higher to sustain the operating costs of the government.
These are just a few of the issues we will have to deal with in the years ahead. The system can be reformed. We must eliminate the old guard who refuse to see the light because they are the very problem. This is part of the political reform process that will begin after 2016.