People are writing to ask if Trump is adopting our solution since he talked about eliminating the income tax, which I was proposing during the ’90s. There is no longer a need for income taxes at the federal level because money is no longer tangible. Taxes were necessary when money was gold and silver because the king needed to get some back to cover his spending. Today, money is no longer tangible; whatever the state collects, it spends more anyway.
Moreover, what also changed was the need to borrow. States again borrowed, and it was less inflationary by taking in coins from circulation. Today, we do not need to borrow, which then requires us to pay interest on money that is not tangible, and we have no intention of paying anything off. The entire financial system will collapse, for this is unsustainable, as interest expenditures this year will exceed military. Within five years, interest expenditures will more than double.
The default occurs when nobody is willing to buy the new debt to keep rolling the old. We are also exceeding the capacity of the banks to be primary dealers, which requires them to buy the debt in hopes of reselling. This is all coming to an end. This will be one topic at this year’s WEC next week.
