By Kenneth Stepp
Most people have no clue what their taxes get spent on. There are so many twists and turns. It is all just smoke and mirrors and I personally am left thinking the privately ,secretly owned Federal Reserve Bank no longer needs to be in this powerful and illegal position. It is in a place where it can steal our labor and goods at will.
Here is how it works. Congress passes a law, the House appropriates the funds. The Federal Treasury Department prints the notes for the appropriation. Then the Federal Reserve purchases these notes/paper at the cost of printing, about 4 cents note. A $1bill, $100 bill, or $1000 bond, costs the same 4 cents. The Federal Reserve then loans this money back to the Federal Government at interest based on face value. This interest rate may fluctuate. The cash is then distributed to the regional Federal Reserve banks from which the appropriations are disseminated as per the Congressional mandate.
Now, as the interest climbs with each appropriation, this debt requires payment your taxes – and occasionally the taxes must be increased to keep up with the “can never be paid off by design, debt”. The Federal Reserve profits greatly on this value created out of thin air paid by IRS collected taxes, and OUR REAL ASSET collateral on loans that go into foreclosure/confiscation.
Periodically, the Federal Reserve will ask Congress for an increase in money supply. This indirectly taxes folks by pumping cash into the economy which decreases the buying power of the dollar. This makes it seem as though prices have risen – not the case, the money added causes the value of the dollar to drop. This is the inflation tax. A tax that causes big problems for people with savings or on fixed incomes. The frightening thing is, the FED-IRS has NEVER had it’s books opened to Congressional scrutiny.
In this unique Federal Reserve/Federal Government relationship the IRS works as the “Taxing Arm For The FED” – NOT the Federal Government which is prohibited from direct taxing at Article 1 section 9 clause 4 of the Constitution! Now you know.