The Debt/Tax Slave System, and its Alternative
Henry H. Lindner, MD
You know that something is terribly wrong, but you can t put your finger on what or why. Life shouldn’t have to be so difficult, so insecure, so insane. The United States, which at least pretended to respect human rights and freedoms, had deteriorated into a criminal empire and a police state. Our professions, corporations, and government seem to have abandoned ethics altogether. Pharmaceutical corporations have taken over medical practice. Lawyers pit every person against their neighbor. Whatever brings profit is OK as long as one is careful not to get caught violating any existing law. There is little cause for optimism. People do not enjoy their work. The brilliant popular music of the 60s, 70s, and 80s is dead. The mainstream media, in the hands of a few corporations, provides only meaningless entertainment, controlled information and a very narrow range of opinion. It is a media controlled by and serving the interests of a super-rich banker-corporate ruling class. One can find real news and analysis only at independent sites on the world-wide web. It is becoming obvious that the US government has been captured by banks, corporations, and special interests like the pro-Israel and military-industrial complex lobbies. The U.S. government serves these entities, not the people. Technology advances and wars continue while wisdom, love, and joy disappear.
The people who run this world and control the media and the governments the bankers and corporate heads need to have us believe that we have a choice and that we control our destiny, but this is not true. They decide what information we are fed and what choices we are allowed to make. Our elections provide us only with a choice between one of two political parties that they control, parties who represent merely the range of opinion within their own ranks from those who lean to the right and those who lean to the left. This is in fact a single party dictatorship, a single party with two faces.
The right/left divide is a tool of control that pits the slaves against each other, fighting over details of how their slavery is administered, and by whom, rather than recognizing that they are slaves. Both parties favor increasing government control over different aspects of our lives, so as they alternate in and out of power, we continually lose more of our freedoms in all areas of life, falling under more and more rules and regulations. Our democracy is a sham. Capitalism never was freedom, it was and is a system of privileges and controls by the rich and clever, for the rich and clever. The system of controls, rules, regulations, corporations, and professions that we live under is about as far from personal freedom and responsibility as possible.
We are the most unfree free people that have ever existed. Our children are taken from us at a tender age and conditioned for 12 years to obedience and unthinking acceptance of the status quo. They are institutionalized; prevented from developing their innate ability to learn and to think. Parents, themselves victims of the system, condition their own children with threats and violence to accept the same slavery the only life that they have known. How are adults still enslaved? Just follow the money. We must take on enormous debts to get a home, a car, or a college education and their costs are inflated by the availability of loans. Where does the money we borrow come from? It is created from nothing by commercial banks—the new slavemasters. When we take out a loan from them, we become their debt slaves. We sell ourselves to them for money that they create out of thin air. We work to pay back their created loan, with interest. What did they risk? Only the 8% reserve requirement for that loan and they get that back if we pay back even a small fraction of the loan. The rest of the money that we work for, for the rest of our lives, was money that they created by a simple accounting entry.
This banking-debt slavery system is just the newest, most ingenious form of slavery. It appears to the slave to be a privilege; to be able to get money to buy a house or get an education. Yet by accepting the loan, the person has entered into debt slavery to the creator of the money. The debt slave labors his/her entire life to repay the loan plus interest. Only 8% of the loan is risked capital, and all the interest paid is pure profit for the bank. The principle that was created with the loan simply disappears when the loan is paid off with interest. This is why banks are so willing to lend to anyone, with any credit history. They have little to lose. By allowing banks to make vast amounts of money via this scam, Capitalism has made the bankers the masters of us all. Over the centuries they have taken over government-after-government by convincing ignorant politicians to support their system of private central banking. They have manipulated governments into allows them to create the money from nothing, a privilege that should belong only to the government itself. In fact much of the history of the United States is the story of the conflict between bankers and the people. Read the history of central banks in the US. Andrew Jackson was the last president who tried to stand up to the bankers. In 1913, Woodrow Wilson gave them control of our country, an act that he regretted to the end of his life. (He was blackmailed into doing so; the bankers knew about his illegitimate son.)
Not only are we debt slaves, but we are tax slaves also. A medieval serf paid 50% of all earnings to the lord of the manor. Between tax and mortgage slavery, we are worse off than the serf. This is why families must struggle so hard to survive. They have no security. Both the mother and father must work to maintain the household. If either parent becomes unable to work, they are ruined. Inflated medical costs due to the medical monopoly and government-regulated insurance industry threaten each one of us with financial ruin should we become ill. Tax slavery for all citizens was instituted in the US with the income tax in 1913, the same year that international bankers took over the financing of the US government and created a stable fractional reserve banking system by establishing the Federal Reserve banking system.
Why did the Federal Reserve and Income Tax come into existence at the same time? The bankers needed a tax on the citizens so that the government would repay its debts to the bankers. None of this was or is necessary. One of the few legitimate functions of government is to retain the sole right to create money from nothing. If governments had retained the right to create money, taxes would not have been necessary as governments would create the money needed for their services and spend that money into existence. Governments could do a far better job of avoiding under- or over-creation of money than central banks do now. Imagine it, if governments retained the right of seignorage, they would not have to tax the citizens, but could instead simply create the money needed to fund its expenses. Instead, governments borrow from banks and tax us to pay for the loans. With their license to create money, bankers manipulate the business cycle and buy up corporations, media companies, and politicians. Fractional-reserve banking is the largest, most damaging criminal scam in existence yet is fully sanctioned by law.
So what is the solution? More governmental controls? Socialism? Well, socialism provides some security for the slaves, but it is an authoritarian response to an authoritarian abuse. It is another way for those with power to control those without power. Socialism (favors for the poor) is the wrong response to Capitalism (favors for the rich). We should instead eliminate all favors all interventions that allow some persons or groups to control or profit from others. We want and need a fully consensual society: a sane, healthy society based upon individual freedom AND personal responsibility. We want to live in a sane world community where each of us decides what is right for him/herself; where our dealings with other persons are determined by natural ethics, not artificial and unnecessary rules. We want to interact by mutual consent, for mutual benefit, as far as ethical considerations allow.
We must eliminate corporations, professions, patents and copyrights all privileges that go beyond individual property and responsibility. We want a world in which the cost of things is just what it needs to be, no more no less. We want a world in which the natural considerations of personal cost, risk, and benefit determine all decisions. We want a world of voluntary cooperation and voluntary charity. We want a world without boundaries and controls. We want a world in which children grow up loving knowledge and learning and are allowed to develop their unique interests and talents. We want a world where people can trust other people because they live in a society that, by its natural functioning, rewards honesty and punishes dishonesty. We want a world in which the government does only what it should do: assure a clean environment, food and water, provide roads and other public goods, and prevent violence at its roots and intervenes when violence occurs. We want a government that does not restrict or dictate personal choices beyond those requirements.
To get to there from here requires something much greater than a revolution. Violent upheaval will just replace one set of masters with another and fail to solve the underlying problems (such is the history of all revolutions). We need to become collectively enlightened. We need, as a world population, to understand the nature of the injustices in both the Capitalist and Socialist control systems. We now have a mechanism for achieving such a world-wide enlightenment the world-wide web. Only collective enlightenment will allow us to work together to create the new ideas, the new constitution for a world-wide cooperative society one which will eliminate the need for nation-states. With a blueprint in hand we can determine how best to transition from current system to a free and fair system in a non-violent way. This will require the cooperation of a large percentage of the ruling class; who, if they are smart, will realize that their progeny will be better off living in a sane world, than being super-rich in an insane world.