Tags: Federal Reserve | Tax | Interest | Income

Federal Reserve's 100 Percent Tax on Your Interest Income to Continue

Federal Reserve's 100 Percent Tax on Your Interest Income to Continue

By
Sunday, 30 August 2015 07:47 PM Current | Bio | Archive

The government can tax you in two ways.

First, they directly take your money after you have received it by the income tax system.

Second, the government can indirectly take your money before you receive it. The government does this by giving special interest groups special exemptions and exclusions from income recognition, inflation, and by diverting your interest income to the government so it never gets in your hands.

The process of rerouting of 100% of your interest income occurs when the Federal Reserve requires that you get paid zero interest on your investments.

So, if you don't get paid the interest earned, then who does?

Normally, an investor will receive interest on their capital. Like when you put your money in the bank for the bank to lend out or when you buy a bond. The free-market should set interest rates — that is the price you receive — for using your private capital.

But interest rates are not set by the free-market in the United States. We have capitalism but no free-market.

Instead, the Federal Reserve as the command and control center for the government dictates the interest rate. The same mechanism used by every socialist or communist government.

Since the free-market abhors zero interest rates on invested risk capital, why would the Federal Reserve mandate a zero interest rate for the past 6 1/2 years?

Two primary reasons: to keep the government's borrowing costs down, and to build up liquidity to bail out Wall Street.

Is there any question that by having zero interest to pay, the government can more easily borrow a lot more money to continue its policies of wealth redistribution and governmental expansion at virtually no cost?

Is there any doubt that Wall Street monstrously profits from paying nothing to borrow your money.

If the government had to pay a free-market rate of interest, then it would have to pay it out of money raised through direct taxation. Wall Street must pay it out of profits.

But with zero interest rates imposed, the government doesn't have to directly tax investors. It has a much easier method to get the money without the investors even realizing it.

Investors put up their savings and investments for no return. The government and Wall Street have use of the investor's capital, and neither of them need pay anything for it.

This way the Federal Reserve facilitates the government's ability to hide being even more trillions of dollars in debt, and Wall Street keeps raking in billions of dollars in profits.

If investors understood the fraud being perpetrated on them, the financial consequences and political repercussions would likely be beyond staggering.

The political ramifications would, it is reasonable to speculate, cause an investor revolt.

The overthrow of the business-as-usual propaganda nurtured by both parties controlling Washington, D.C., and Wall Street.

The government and Wall Street are doing everything they can to keep investors believing that zero interest — and inflation as well — is good for the economy.

But earning nothing on your capital while getting stuck with another tax called inflation is not good for the economy.

You already face a gauntlet of direct tax and other scams, shams, and schemes from government and Wall Street just to save some of money so you can invest it.

Clearly, the Federal Reserve intends to keep on inflicting on you as a saver and investor a zero interest rate.

The predictable results being an unrelenting financial crisis and continuing volatility coupled with ever more government regulatory controls.

The Federal Reserve and Wall Street know of the building anger by investors. They know that investors vote and may well vote in some people who could change this mutually profitable arrangement.

I anticipate that some token or symbolic gesture will be made with great fanfare and the sound of trumpets to mollify what investors viscerally know is an outrage being perpetrated on them.

But any meaningless step taken by the Fed will be a charade. The problem for investors is not that interest rates will rise, but that the Fed continues to keep the free-market out of the investment equation.

The American economy is fragile. It's more likely heading into a deep dark pit.

There is only one way the American economy can recover.

Recovery by the economy and stable prosperity will only happen when the Federal Reserve's 100% tax on private interest income is eliminated by the forces of the free-market.

© 2020 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Kleinfeld
The government can tax you in two ways.
Federal Reserve, Tax, Interest, Income
736
2015-47-30
Sunday, 30 August 2015 07:47 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved