The rigged system, in place for the last 113 years since the creation of the Federal Reserve System, has been a long-standing issue where economic gains are distributed to the top tier, and losses and sacrifices are distributed to the bottom tiers. 

Here are eight massive redistribution schemes taken by government leaders that robbed taxpayers and redistributed the benefits to elites and dependent groups, creating an unjust and unfair system.   The systematic injustices are a stark reminder of the moral and ethical decay in our financial and political systems.   The above beneficiaries, government employees, and the dependent class of welfare dependents are the primary beneficiaries.

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Follow the trail of money and reinforcement of power elites to get more. The American public is merely pawns in the game for more profit and power for the elites, with little to no control over the misallocation of money and wealth. This lack of control underscores the urgent need for change and leaves us feeling disempowered.

·       The Federal Reserve was created in 1913.

Woodrow Wilson signed the Federal Reserve Act, allowing a private cartel of banks to become the central bank of the United States. The 12 Federal Reserve banks have the right to print money to provide a safe, flexible, stable monetary and financial system. The purpose was to address the threat of bank runs that characterized the Panic of 1907. This financial crisis led to widespread bank failures and a severe economic downturn, which fostered a sound banking system and promoted a healthy economy.

The U.S. government chose the 12 privately owned banks because of an earlier event when a group of the wealthiest entrepreneurs met on Jekyll Island, off the coast of Georgia, with the expressed purpose of creating a secret cartel and driving all non-member banks out of business.

Today, these Federal Reserve banks are given tremendous power and receive preferential treatment by creating/making money and profiting from the system at the expense of the public. The Federal Reserve constantly expands the money supply by issuing new fiat currency into the financial system. All injections become public debt, but the government intends to refrain from repaying it.

For every dollar created by the Federal Reserve, taxpayers owe a corresponding new dollar of debt, which creates a systematic erosion of the dollar’s purchasing power.

·       LBJ’s raiding of Social Security.

President Lyndon B Johnson issued an executive order in 1968 to raid the Social Security Trust Fund to balance the federal budget and close the gap in the federal deficit. Johnson raided the Social Security, pretending to balance the federal budget.   Johnson did not want to raise taxes but needed money to pay for several ambitious government programs, including the Vietnam War, the Great Society War on Poverty, a set of domestic programs aimed at eliminating poverty and racial injustice, which expanded welfare programs, and the NASA Space Race. Thus, a star was born in misappropriating the Social Security Trust Fund to hide the size of the overall federal budget deficit. No president or administration has ever reversed this so that the social security system could accumulate tangible assets to pay for future retirees.

Active workers currently pay Social Security to recipients. In fiscal year 2018, Social Security took in $912 billion and spent $991 billion, a $79 billion shortfall that had to be covered.

The Social Security Trust Fund ($2.9 trillion) and federal employee and military retirement funds ($2 trillion) are part of the national federal debt scheme. There are no tangible assets. There is a hollow shell filled with debt instruments that the taxpayers or the government will never pay back. All that was left was a digital file full of non-negotiable bonds from the Bureau of Public Debt. The federal government can only redeem these debt instruments, creating more debt to replace the debt.

Imagine a government that uses trust fund assets to purchase debt instruments. The Trust Funds’ books were routinely swapped for debt instruments expected to be owed and paid from future taxpayer receipts. The results were the ultimate form of financial prestidigitation. Yes, the debt you owe in the future becomes an asset to hold on your behalf to pay you when you pay back the original debt.

Your future social security payments are just a hollow shell of debt instruments, which can only be paid by current taxpayers or by issuing new debt. It is bookkeeping magic. This strategy has worked so far. However, the accrued government direct debt obligations and the interest due, coupled with the underfunded pension and medical obligations, will eat up the entire national budget, and then the Ponzi-based merry-go-round will stop.

·       Approving the rights for public employees to bargain and form labor unions collectively:

A letter by President Franklin D. Roosevelt, dated July 14, 1937, entitled “Letter on the Resolution of Federation of Federal Employees Against Strikes in Federal Service,” issued a stern warning against allowing public employees to unionize and collectively bargain. This letter was a response to the growing labor movement and the potential for strikes in the federal service, which Roosevelt saw as a threat to the stability of the government.

·       In 1962, John F. Kennedy issued an executive order allowing public employees to form labor unions and engage in collective bargaining for more pay and benefits. Employees gained the right to bargain on behalf of the people they represented, and those people would pay the additional benefits they bargained for.

Public employees gained monopoly power to demand whatever they wanted. If they chose to strike and refused to work, they could not be fired or replaced by other workers who might produce better results for less compensation. If they did not get what they wanted, they possessed the right to strike and shut down part or all public services, such as schools, transportation, libraries, fire stations, police services, and all the other essential services we rely on and pay taxes for. The National Labor Relations Board, as a member of the government cabal, was always there to protect its monopoly status.

·       In 1971, President Richard Nixon cancelled the gold standard:

President Nixon installed wage and price freezes in response to increasing inflation, surcharged imports, and announced that the U.S. currency is no longer backed by gold. He unilaterally canceled any rights of international convertibility of the United States dollar into gold.   President Nixon's actions created a fiat money system, a system where a physical commodity like gold does not back currency, but backed by the government’s full faith. There were limited barriers to creating or issuing more money into the system, thus creating more debt. Sustainability has always been a sublimated topic. The result has increased direct debt, indirect debt, and unfunded pension obligations of over $ 220 trillion, which will come due over the next 10 to 30 years. The only solution is to issue more debt to support the Ponzi system.

·       The progressive tax structure:

The progressive tax structure, a taxation system in which the percentage of taxes paid increases as income increases, is inherently unfair. This system penalizes financial success, creating a massive systematic redistribution scheme that is fundamentally unjust. Since the lower socioeconomic subset of voters is more likely to vote as a bloc, they always collectively vote for higher rates for higher earners, further exacerbating the system’s inequity.

·       Inflation: The systematic erosion of the purchasing power of the dollar.

The only way to reduce the impact of federal debt obligations is to erode the dollar’s purchasing power systematically. Since the Federal Reserve system was formed in 1913 by the U.S. Government, inflation has risen 3,500 percent. This process has decimated the middle class in the United States and will continue.

Now Comes the Hard Part - LewRockwell

In 1903, consumers could have dinner at Johnny’s Place in Salt Lake City, where 10 cents would buy dinner, including meat, vegetables, bread, and a cup of tea or coffee. The average worker earned between $200 and $400 annually, 55 cents to $1.10 per day. A professional high-level accountant may have earned $2,000 per year or $5.48 per day.

The official U.S. Consumer Price Index is an inflation calculation in use. If we calculate the average inflation rate from 1913 to 2016, we get 3.22%. In some decades, inflation was much more significant, and in a couple of decades, it was less. Prices doubled every 20 years. Note that ten decades represent five times the doubling. $10.00 doubled five times would mean 10 X 2=20 X 5=100. This calculation assumes a fixed and static value, not compounded or cumulative.

However, we have a cumulative effect and a compounding cumulative effect. Inflation works similarly to compound interest, which can multiply your savings and investment income over many years. The real cumulative inflation rate from 1913 to 2019 is 2400%. You would now have to spend $2400.00 on the same basket of goods and services that could be purchased for $1.00 in 1913.

·       The Dodd-Frank Act was approved in 2010 and included a big bank and derivatives bail-in scheme by directly taking bank deposits away from the public at large and using the money to shore up banks and derivatives losses.

The Obama administration created a protection racket for large banks. The bill stated that deposit accounts (checking and savings) are subordinated to derivative losses in the event of a market collapse.

A derivative is a contract between two or more parties that derives its price from fluctuations in the underlying assets. Common underlying assets in derivative bets relate to fluctuating stocks, bonds, commodities, currencies, interest rates, and market indexes. The regulated banking system has risks associated with 247 trillion counterparty bets in the derivatives market by these banks through Wall Street, including hedging interest rates and depositor accounts held in the U.S. banking system. These counterparty bets carry the most significant risk exposure for a total loss or the potential of a long-delayed or deferred recovery.

Here is the waterfall for paying out claims in the event of the liquidation or insolvency of large, too-big-to-fail banks.

(1) administrative costs.

(2) the government.

(3) wages, salaries, or commissions of employees.

(4) contributions to employee benefit plans.

(5) any other general or senior liability of the company.

(6) any junior obligation.

(7) Salaries of executives and directors of the company.

(8) obligations to shareholders, members, general partners, and other equity holders.

Checkers and savings deposits are considered unsecured liabilities. They are the last, #6,  to get bailed out, more than the $250,000 amount protected by the Federal Deposit Insurance scheme, which has very few liquid assets that are not debt. The last time I checked, the FDIC has 129 billion dollars of deposit insurance for 4,517 institutions.

https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation

·                  The systematic manipulation of the interest rates by the Federal Reserve.

The number one heist is the systematic forced reduction in interest rates. The government can finance the debt, significant corporations can borrow, and consumer debt appears lower. Stock buybacks are financed with super own interest rates. Borrower at 2%, and your stock goes up at 10-15%, you look like a genius. Corporations use highly leveraged financial repression to enhance yields.

But at what expense? Saving rates are at an all-time low, wages are static, and prices rise by 15% annually. The above group receives 90% of the benefits, and every day, taxpayers receive 10%.

The wealth transferred from the pockets of the taxpayers and savers into the pockets of the elites is more than 50 trillion dollars. There has never been a recorded redistribution like this. Middle-class taxpayers will become surfers. The elites will pay large bonuses and take a well-deserved month off vacation in the Hamptons.

The Federal Reserve solved the 2008 economic meltdown by creating $29 trillion in new money through fiat and using that money to bail out the banks. However, that strategy may no longer be effective or practical.

In 2007, approximately 600 trillion dollars of derivatives contracts were outstanding worldwide. Many central banks became insolvent, as did Lehman Brothers and American International Group (AIG), the leading international insurance corporation that insures against losses on derivative contracts.

Today, there are estimated to be $600 trillion in derivatives (counterparty bets) worldwide, which are highly leveraged and interest rate-sensitive securities bets. To put this in perspective, the world’s GDP is $88 trillion. Assuming a 10% profit margin, it would reflect $8.8 trillion in profit from which to extract taxes.

The five too-big-to-fail (“TBTF”) banks account for 42% of all outstanding loans in the United States. The six most significant banks have 67% of all outstanding bank assets.

The risk in the derivatives market is concentrated in the U.S. In 2011, four U.S. banks held 95.9% of U.S. derivatives. Depositors maintaining accounts with U.S. banks are subordinated to the risks presented by derivatives under the Dodd-Frank Act. Should derivative contracts default, no government insurance exists, i.e., “the full faith of the government does not back derivatives,” nor does the FDIC Insurance safety-net insure derivatives. In effect, the Dodd-Frank Act has shifted the ultimate risk for derivatives losses, resulting in significant profits for the banking industry. This will go down as the mother of all financial heists in the history of the world.

After a systemic financial meltdown, you may receive a congratulatory letter that states, “Dodd-Frank does not allow you to keep your money. But never fear, you will receive stock certificates in an otherwise bankrupt entity to replace the hard-earned cash you have now lost.” The oligarch bankers win by taking a massive risk, and if they lose, the financial losses are dumped on the backs of the American taxpayers. The phrase “money is safe in the bank” no longer applies.

I will never understand why the public readily watches mainstream news propaganda, believes the garbage, and willingly votes for the establishment agenda, which always screws them. I guess people get the kind of government they deserve, which is a correct assertion.