After Richard Nixon’s suspension of the US dollar’s gold backing on 15 August 1971, another president of the USA – Donald Trump – issued a decree in August (8 August 2020) announcing a new financial order: he completely abolished the wage tax liability for wages up to $ 100,000 for six months. A decision of far-reaching consequences!
Up to now, the world financial and monetary system has functioned in such a way that states, banks and corporations could go into unlimited debt, because the central banks provided millions, then billions and now trillions of dollars in funds “out of nowhere”, i. e. without any backing. According to the understanding of the high finance syndicate and a statement by George Soros “these funds never be repaid, are perpetual loans”. The interest as well as the costs of the state apparatus and the costs of redistribution (about half of the revenues) do not have to be paid by the financial speculators or billionaires (nor by the 30 % or so underclass, who are either completely tax-free or at least receive more transfer payments than they themselves have to pay taxes). Rather, 80 % of our taxes and social security contributions have to be paid by the 94 % medium-sized companies and the employed middle class (the “better earners”). They are the exploited of our old capitalist system. These hard-working “creators of value” as entrepreneurs and employed persons in charge have so far always had to bear the interest and amortisation of the national debt as well as the transfer payments to two thirds of the remaining “living in our country”. The situation has now changed in that the unrestrained increase in money supply no longer reckons with back-payment and therefore also no longer reckons with redemption, and that the interest rates have fallen to zero and cannot be increased, because even a 1 % increase of interest rates would drive countries such as Italy, France or Spain into national bankruptcy.
The endgame of capitalism is thus only directed at money multiplication, debt multiplication, financial speculation and the buying up of material assets, as long as people still accept the worthless money at all. Basically, it is consistent when Trump does not want to tax the lower and middle incomes anymore. He does not need these taxes either, because he can retrieve any amount of money from the corrupt FED (central bank) for state financing and has already retrieved 2 trillion in order to pursue the corona economic policy. These 2 trillion dollars were transferred to Blackrock, so that Blackrock could “nurture” the stock markets with them.
Nixon’s abolition of the gold backing already had worldwide consequences, namely the “liberation” of the money supply from its backing and therefore a fifty-fold increase of the money supply in the last 50 years, and also a forty-fold increase of the gold price.
Similarly, the end of the wage tax for the lower-and middle income classes will end the system of enrichment of the state and private financial system through exploitation of the factor labour. This will be the beginning of a new financial world order, in which capital can no longer live off work and states can no longer tax performance the higher it is. Since 51 million Americans are unemployed, ostensibly because of corona, but in reality, because of the world economic crash that has begun, and do not know how to pay their rent and maintenance, Trump has also introduced a basic income, namely that every American should receive $ 400.00 per week in state benefits. He did not say how he intends to finance all this, but he has at least compensated the lower class and a part of the middle class for the fact that the financial industry can enrich itself through money multiplication, loans and speculation without limits, even without benefits.
The outcry against this decree of Trump comes predominantly from the US high finance.
Unlike the socialists, who enforce benefits for themselves and their supporters by having to compensate for this redistribution by pillaging others – the high achievers – Trump, like high finance, takes money out of nothing that is not taken from anyone. His redistribution is therefore all-round and final.
The new financial order, however, has an internal and an external risk.
Internally, redistribution works as long as the state can dispose of money. It can dispose of money as long as it can call up money from the central bank in its control, theoretically without end. The financial system would then function like the food supply for the population. As long as there is still food available, the population can be supplied internally, with money as well.
The danger of inflation has been fought, as before, with the coercive means of zero interest rates and “dammed inflation”, as already demonstrated by National Socialism and imitated by the socialist states. But how long will it last? Externally, on the other hand, the value of the US dollar will soon fall significantly as a result of Trump’s programn. This will benefit US foreign trade in the short term, but in the medium term it could mean the collapse of the dollar empire and the power of the financial oligarchs, who up to now have been able to use their billions to buy international influence and control countries and companies. If the dollar is no longer worth anything, their influence and power will be gone. One commentator saw Trump’s new course as a “final blow against the international oligarchs’ cabal” because they are the ones who want to chase Trump out of office.
But once Trump has made “life without a payroll tax” acceptable, the other states will no longer be able to avoid the exploitation of their high achievers and the middle class on a national level. The alleged corona round of the EU has shown where the money for state corruption (500 billion euros) and social measures (100 billion euros short-time work benefits for all) will come from: from nowhere, from bonds and from the ECB – without back-payment.
Trump’s decree of 8 August 2020 is “helicopter money for all”, not only for big business as it has been up to now. •
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