Chapter V
TAXATION AND FOREIGN AID

The graduated income tax is now
in graduate school.
—AUTHOR

Ever since the dawn of history, mankind has regarded taxes and death as inevitable.  The fact that these two concepts have always been so closely associated, however, indicates the true nature of taxation.  Our forefathers knew that the power to tax was the power to destroy, and our own American Revolution was largely fought over confiscation of their property without the willing consent of the victim.  And confiscation of private property is really what taxes are all about.  Essentially, taxation is a method whereby those in control (government) plunder the victims (citizens) who have neither the organization nor political strength to resist.  The concept of taxation also presupposes that a given minority of powerful politicos have the right to live off the labors of the productive citizen.  This concept has become so ingrained in people’s minds that the thought of reducing or eliminating taxes will bring protests from even the victims themselves.

People have been told for centuries that the government exists for their protection and that the wise and superior men who comprise the ruling elite are to be given their homage, earnings and even their lives, if requested.  No one dares to question the right of these plunderers to enact legislation binding on the citizen-victim who has neither participated, nor in many cases even approved of such measures.  One of the basic requirements in all contractual agreements among civilized men has been that consent is required when individuals may be legally bound by the actions of another.  Even where one party to a contract was unable to write, provision was made for an appropriately-witnessed mark or seal to signify assent.  Yet government, at all levels, grinds out thousands of laws annually which attempt to bind every citizen in the land to thousands of situations over which he knows nothing, was never consulted, nor probably would have consented.  This amazing caricature of justice parades itself as government, which purports to act for all the people in any matter it deems appropriate.  We, the victims, have permitted this process to extend to such a degree that the helpless people in the United States are close to being reduced to a future of serfdom.

Some sixty million Americans now exist as feudal vassals serving their master, the government, by spending six months and eleven days out of every year to pay off the tax grab which descends upon them from every governmental level.^[1]  In addition to the standard withholding, social security and miscellaneous payroll taxes, we often forget that government charges heavy fees for the so-called services they render.  Under these categories come the section they call protection and privilege.  It is here that we find the multi-licensing racket and the indirect taxes which are hidden in the merchandise we buy and the food we eat.^[2]

Inflation and the cost of living are further eroding the value of our dollar.  In 1968 alone the cost of living rose 4.7 per cent.  In the years 1958 to 1968 federal spending increased by 103 billion dollars.  It is estimated that there are now around 48 million people either directly or indirectly on the federal payroll.

The plunderers (government) have always regarded themselves with an especially high degree of admiration, and like most ruling classes, possess a form of megalomania.  The citizen-victim has always been regarded as fair game for exploitation and as governments get larger, they become more arrogant, corrupt and tyrannical.  Even without the ruthless insider criminal-elite who have selected themselves to be our planet’s helmsmen, government is a woeful product of history.  By adding the pan-globalists’ plot to centralize all the world’s assets under their fanatical control, it becomes a situation so grotesque that it almost defies belief.  Secrecy has always been the chief weapon of the criminal plotters and the absurdly anti-intellectual, allegedly humanitarian propaganda their method.  Whenever a new plot was launched upon the American people the true purposes were never revealed.  Instead the exact opposite of their actual intent was usually ballyhooed.  This is how the idea of an income tax was thrust upon the American people.  The Insiders were planning to soon launch their central bank so an agency would be needed to collect the vast sums of money they planned to eventually confiscate from the taxpayers.  This money would then be used to pay interest and redemption costs of the bonds which were to be exchanged for their private-brand currency.  The pitch used to soften hearts, however, was that “poor government” needed additional revenues.

The Income Tax Amendment was adopted in February, 1913, as a part of a multi-purpose plot to centralize the wealth ca the nation into the hands of a small group of millionaires.  When this amendment was adopted it gave Congress the power to collect taxes on incomes “from whatever source derived, without apportionment among the several states.”  At this point we should ask whether the 16th Amendment repealed Article I, Section 2 which states :  “Representatives and direct taxes shall be apportioned among the several states.”  Also, Article 1, Section 9 which specifies that “No capitation, or other direct tax shall be laid, unless in proportion to the census or enumeration herein before directed.”  Furthermore, Article 1, Section 8 provides for punishment of counterfeiting the securities and current coin of the United States.  Thus direct taxes are forbidden within the body of the Constitution and then along comes the 16th Amendment which establishes direct taxes, without apportionment.  Additionally, the Federal Reserve Banking Act violates Article 1, Section 8, Clause 5 which provides that only Congress shall have the right to coin money and regulate the value thereof.

The conspirators who engineered the Income Tax Amendment were carrying out one of Karl Marx’s basic plans for the confiscation of the property of the middle classes (bourgeoisie), e.g. the graduated, progressive income tax.  Another of Marx’s monetary planks was the creation of a central bank, which the conspirators knew would be the sequel of the Income Tax Amendment.  With a privately-owned central bank which mould be empowered to issue money to the government in exchange for obligations (bonds), it would then be in a position to ultimately control the entire economy of the nation.  They also knew money would be needed for the anticipated World War I, and thus the climate was somewhat more receptive to the idea of an income tax.

When the Income Tax Amendment was first enacted, the tax started out at the minute rate of one per cent of family incomes which exceeded $4,000.  We must take into consideration that a 1913 income of $4,000 would approximate $9,800 in 1968.  Because the tax rate was small in the beginning, there was a naive acceptance of the purposes of the tax.  Its real purposes were not discovered until many decades later.

The tax structure was designed to create a situation wherein certain segments of the population would be taxed but other favored segments would remain untaxed.  This explains why we have huge foundations which have millions of tax-free dollars to spend on “educational” and other purposes.  Much of this money has been used to promote Socialist, One World collectivism and an anti-individualist mentality.  The tax structure was also devised in such a way that the productive middle and working classes would be shouldering the burdens of the costs of government while the millionaire elite would remain virtually tax free.  This tax bonanza for the wealthy has been achieved through the use of tax-free foundations, trusts, etc.

The following table will indicate what has happened to the income tax since its adoption in 1913.

The pro-income tax propaganda has become so much a part of our thinking that the average person cannot visualize a nation without a tax on income.  They forget that this nation functioned 137 years without one (except for a few brief encounters in war periods).  Any mention of lowering or abolishing the income tax will evoke worry on the part of the tax-drained and propagandized citizen that the government would then not have the necessary money to carry on its functions.  Government would have all money it needed to carry on its necessary and legitimate functions if it would limit its activities to those prescribed by the Constitution.  The national government was set up to preserve peace, protect property and perform a few limited functions.  The vast majority of the activities in Washington today were achieved through unconstitutional usurpation of power by the Socialist collectivists.  It is quite apparent that this evil octopus intends to become our master with the goal of total regimentation of our lives from conception to cremation.  Additionally, government should issue its own money and not borrow it into circulation.

A look at the typical American taxpayer will demonstrate that the middle and working classes are being outrageously exploited by the vicious Socialist king-oriented cartel.

THE TYPICAL AMERICAN

According to the Saturday Evening Post,^[3] the following was a profile of the average middle class man in 1966-67:  he was a 45-year-old voter, earning nearly $7,500, living in a suburban home valued at $13,000 ($6,800 mortgage, with annual interest of $400 plus amortization);  additional payments included $100 in interest on other loans, $700 income tax, $200-$300 state and local excises, $250 real estate levies, and $290 Social Security.

This took about one-third of his income, leaving $5,000 to feed and clothe his family of four or five, pay for medical care and all other items, including college education for his offspring.

Consider a typical middle class couple, an independent businessman, whose wife is an efficient private secretary, both in their late forties, with no dependents.  They earn about $8,500 each and should be building an estate for ultimate independence.

However, state and federal income taxes, real estate, sales, and excise levies total $5,797.  In addition, they pay $1,500 in hidden and indirect taxes on goods and services.  They work more than twenty-three weeks a year to meet these excises—forty-one per cent of their total earnings.  This leaves about $11,000 of which they can save less than $500.  If their contributions to Social Security and to an annuity program were excludable and if they had no federal income tax to pay, they could build an estate of $140,000 in twenty years on the basis of their present income.

More than 72 per cent of the personal income taxes come from people who earn less than $15,000 per year.  The rich can establish a foundation permitting them to enjoy tax privileges, or through a number of other devices, escape many or all taxes.^[4]

One of the most arrogant and feared arms of the national government is the Internal Revenue Service.  For decades they have intimidated and harassed individuals and businesses whenever figures or records did not meet with their approval.  They issue unconstitutional and dictatorial orders, invade privacy, and have become a tyrannical gestapo.

What happens to the average citizen who makes a slight error in his computations or takes a deduction which the Internal Revenue Service believes excessive ?  He may be fined, his property may be seized or he might even be thrown in jail.  All without benefit of due process of law as these tax decisions are made under administrative and not constitutional law.  Since the Administrative Procedure Act of 1946 was enacted, the Constitution has been bypassed and the dictates of petty bureaucrats have become the “law of the land.”  These regulations have violated every precept of constitutional law and harassed Americans should refuse to be further intimidated by them.  It is high time we learned how to protect ourselves from government by reading and understanding the Constitution and refuse to obey any orders which are issued in violation of our constitutional and civil rights as citizens.

The gestapo-like tactics of the Internal Revenue Service are well known to almost every taxpayer.  Standard procedure for this arm of government is to seize the property of a citizen whenever an excuse for such seizure can be found.  Often a small taxpayer cannot afford to hire legal counsel or is too frightened to stand up against big government.  Their tactics of fear, intimidation and violation of citizens’ privileges and immunities have made them one of the most hated groups in government.  Many taxpayers are even afraid to correct a mistake regarding overpayment lest vengeance be directed against them by these “public servants.”  How have we, the people, allowed such a bizarre situation to occur, much less to blossom into the nightmare which taxation, American style, has become ?  Dare we resist the strong-arm methods of the Internal Revenue Service ?  Here is what Senator Henry Bellmon of Oklahoma said in testimony before the Senate Finance Committee, October 2, 1969:

If the taxpayers of this country ever discover that the Internal Revenue Service operates on ninety per cent bluff, the entire system will collapse.

We might ask the following questions of both Congress and the Internal Revenue Service :

1.  When does income cease and become property ?
2.  Are Federal Reserve Notes income, if they are not money ?
3.  Can we say that Bills of Credit or obligations of the United States Government constitute money ?

It might be interesting for Mr. and Mrs. Average Citizen to review some statistics regarding income taxes which affect every citizen.  It takes the average citizen from January 1 to June 14 (1970) to pay for what governments on all levels seize from him.

While Mr. and Mrs. Average Taxpayer struggle under this confiscatory burden of taxes and high prices, we note that the tax-free foundations function blithely without these harassments, despite the recent fraudulent flurry of Congressional concern over the matter.  Little will be done to correct these abuses until a nationwide tax rebellion develops into a thundering avalanche of enraged protests against this outrageous betrayal of America.

A study of tax returns made by Dr. Martin Larson reveals some interesting statistics.  In 1963, 20 of the 371 people with an income of $1 million paid no taxes at all.  The tax laws were set up to create a tax-free millionaire class and he therefore has many weapons available to him that the rest of us don’t know about or can’t afford.  The millionaire may exclude from his tax return many items, including gifts, bequests, royalties covered by depletion allowances, and many other devices available to the monied elite.  One of the favorite methods of the tax dodge by the privileged set is the foundation.  This device offers many advantages.  The donor may retain control of his money through the foundation.  He may be able to borrow at low interest rates.  He is usually in a position to choose management in accordance with his political or social philosophy.  Also, property such as real estate, art, etc. may be contributed to the foundation in inflated values which also reduce the tax bite.

The U.S. News and World Report of March 3, 1969 said that there are more than 20,000 tax-free foundations with assets exceeding 20 billion dollars.  Why does a white or blue collar worker pay to the hilt, while the millionaire elite escape taxation ?  Where did the idea of a tax-free foundation originate ?  We must go back to 1913 when the One Worlders put this grotesque legislation on the law-books.  They had painstakingly executed this gigantic swindle on the American public.  So certain were the conspirators that their plans would be enacted into law that the Income Tax Amendment was passed in February, while the companion money-monopoly legislation became our Christmas present that year, being passed on December 23, 1913.  This legislation had been well planned and its results were known to those who sponsored the measure.  Its purpose was to reduce the American Republic to a monopoly of wealthy Socialists who would control all facets of the government and all assets of the nation.  These same Socialists have an arrogant contempt for the average person and feel that they alone are qualified to make decisions.  They also have the power which money gives them and are used to having their directives obeyed.  Subordinates don’t generally disagree with the Chairman of the Board, and Board Chairmen are all too frequently members of the Council of Foreign Relations power cabal.

Frequently wealthy families establish many foundations.  The Fords have seven, the Carnegies five and the Rockefellers twelve.  Another device used by the knowledgeable big time investor is the tax exempt security.  Illustrating this point, Dr. Martin A. Larson, economist, observed that “one of the nation’s richer women put a $56 million legacy into tax-free bonds and was in the enviable position of enjoying a yearly income of more than $1.5 million without having to report it on her income tax return.”  Another gimmick to make your blood sizzle is the oil depletion allowance.  The result of this legislative trickery permits such oil giants as Standard Oil Co. of New Jersey to pay an income tax of less than 2 per cent in 1964.  California Standard that year paid out 2.1 per cent and Texaco less than 1 per cent.

Here’s how the oil depletion allowance works :  A company leases the right to drill and agrees to pay a royalty to the owner of five to ten per cent for any oil or gas found.  If none is discovered, the expense becomes an ordinary developmental business expense.  But if oil is found, the owner receives only a royalty on the amount actually obtained.  In addition to ordinary business expense, the company is allowed to deduct an additional 27 per cent of the gross income up to fifty per cent of net.  This is true even if there were no capital investment to depreciate or deplete in the first place.

International oil interests aren’t the only ones to be found in Viet Nam and elsewhere.  To finance the global empire of the Insiders, it is necessary to continually bolster the faltering economies of Communist nations.  Multiple programs involving financial aid and support are devised under grand-sounding titles, which are usually as deceptive as their intent.  An example of this is the subsidy program financed by U.S. taxpayers officially called East-West trade.  Each year more and more valuable products are permitted to be exported to Communist countries and their satellites.  Such items as machinery, chemicals, industrial supplies and other vital war materials are being sent in increasing amounts.  For example, in October, 1966, Secretary of Commerce John T. Conner announced that the Department of Commerce had revised the Commodity Control List to permit over 400 non-strategic commodities to move under general license to the U.S.S.R. and other Eastern European Communist countries.  Another revised Export Control bill was passed in October, 1969, lifting the ban on more than 1,000 additional items necessary to their war effort.  The value of these exports in 1971 will be a 29% increase over the previous year.  A list of companies and individuals operating under these general licenses would make interesting reading.

The propaganda cry of the “liberal” left Socialists in Congress is that the promotion of East-West trade will bring peace.  This is so obviously false that anyone sponsoring such treason should be swiftly removed from public office.  This isn’t trade.  Most of these materials are being paid for by the long-suffering American people as few of the Socialist-Communist nations are either honorable or solvent enough to pay their debts.  These maneuvers are merely devices to permit the World-Government group to move their products into the Communist-controlled zones for two purposes :  1) payment is assured as the tab will be picked up by Uncle Sam in case of default :  2) to further weaken the United States financially, militarily and politically.

The mere presence of corporations in foreign countries is not in itself a danger.  The danger arises when a monopoly develops through the device of interlocking directorates and close co-operation with various banking interests.  When the monopolists are able to combine the corporate control with the money-issuing powers, and have succeeded in welding these two factors into integrated control, they become the deciding force in all major nations.  And this is exactly why the United Nations banking complex is so busy with their financial empire building.

Since 1960 the middle and working classes have been particularly squeezed by the increase in government expropriation at all levels.  The total tax burden for the average family has doubled in this period due largely to rising state and local taxes and the increase in social security and surtaxes.  According to The Exchange, published by the New York Stock Exchange, March, 1969 issue, “It is this middle class discontent that is really upsetting to officials and why, as one of his last acts, President Johnson’s Secretary of the Treasury, Joseph Barr, warned of a “middle class revolt” unless the structure of taxation is changed.”  What they’re not saying is that this type of talk is only for publication, but that the total confiscation of all our wealth is planned and will continue unabated, unless the American wakes up from his docile acceptance of government tyranny.  Americans must realize that governmental has become his total, dedicated enemy and that all of the chaos, rioting, wasteful spending, foreign aid, wars that are called peace-keeping ventures, form the fabric of the bizarre pattern which the Insiders have constructed to thrust the United States into a brutal dictatorship under their control.  Once enough people understand this they will begin to take the action necessary to unwind the skeins of power which are being tightened slowly around our throats and restore our nation to a Constitutional Republic.  They will also dismantle that bulging bureaucracy in Washington and eliminate about ninety per cent of the offices and personnel which now dictate to us in every facet of our lives.

Washington has done a monumental job of wrecking the value of our dollar, by wasting money beyond our wildest imagination.  Unchecked all-powerful government becomes the most urgent danger in our lives, as it always tends to increase its power, bureaus, spending and taxation.

Inflation has been a continuing problem in this country for decades, but its effects were less perceptible in previous years.  Nevertheless, between 1940 and 1969, $600 billion in savings were lost to the American people due to inflation.  If the present trend accelerates, we may face the same situation that occurred in Germany between 1914 and 1923.

The following statistics illustrate the nature of government to continually plunder more and more money from the citizen-victim.

Taking taxes and debt into consideration, it constitutes fifty per cent of the gross national product per taxpayer.  The national family income of 1967 was $7,100.  Totalling taxes and debt liquidation, this would constitute seventy per cent of his income.  Is this prosperity ?

The nature of government, its structure, method of selection of personnel, all make it a totally ineffective tool for solving any problems.  As absurdities and errors accumulate, the only solutions that government ever offers is continually more spending.  When the situation sometimes becomes too bizarre for even the gullible American to accept, a commission to investigate the situation is appointed.  The commission usually receives huge amounts of tax money for its investigations, and after months of wasteful nonsense, it comes up with the glittering new idea that the way to solve the problem is to simply increase the size of the failing program and spend more.  This is particularly illustrated by the freakish programs emanating from governments at all levels.  A glance at the following illustrative statistics shows the growth of the taxation confiscation route and the waste involved in government programs.

The national debt has grown $77 billion since 1960.  Here is a record of that growth :

Fiscal Year	Public Debt
1960	........$286.4 billion
1961	.........289.2 billion
1962	.........298.6 billion
1963	.........306.4 billion
1964	.........312.5 billion
1965	.........317.8 billion
1966	.........320.3 billion
1967	.........326.7 billion
1967	.........351.5 billion
1968	.........363.5 billion

According to figures revealed in the Congressional Record on June 3, 1968, inflation during the past seven years has :

• added over $100 billion to the cost-of-living of our people.
• reduced the value of pension fund reserves by $17 billion.
• eroded away $15 billion from the value of U.S. Government and other bonds.
• eaten $13 billion from life insurance reserves.
• cost Americans a total of $188 billion—nearly $1,000 per person.

HELP THE NEEDY

For each $1 donated to the needy

• through an individual donation, there is no cost to get the $1 to the needy,
• through a voluntary charity organization, the cost is 27c to get $1 to the needy,
• through state government distribution, the cost is $1 to get $1 to the needy,
• through federal distribution, the cost is $3 to get $1 to the needy.

Source :  National Association of Life Underwriters.

The income tax has been one of the most effective tools whereby the money pool was able to obtain control over the lives and property of citizens.  Additionally, it gave the conspirators the chance to plunge the United States into unmanageable debt and planned bankruptcy.  As of the beginning of 1970, the indebtedness of the United States is greater than that of all the combined nations of the world.  Despite the propaganda campaign inaugurated by Keneysian pseudo-economists that a debt is meaningless because we owe it to ourselves, it is very meaningful indeed.  This patently absurd argument finds spokesmen among professors, high school teachers and government apologists everywhere.  Obviously, if we “owe it to ourselves” it isn’t a debt.  But we don’t owe it to ourselves.  We owe the debt to the bondholders, whoever they may be.  The bonds are printed on government printing presses but carry varying maturity dates and rates of interest.  Some are short term for periods of a few months to a year.  Others are long term bonds which mature in five, ten or twenty years.  These bonds have a fixed maturity date and interest rate.  This debt is owed by the United States government and is payable by us, the taxpayers.  It is our debt, and 12 USC 411 says so.  It defines Federal Reserve Notes as obligations of the United States Government.  This debt arises from the payment in government bonds to the privately-owned Federal Reserve Bank in exchange for their issuance of our nation’s “money.”  At this point we should ask ourselves, why doesn’t the government issue the money instead of the bonds ?  This single issue is the crux of the entire problem.  If the government issued the money in accordance with the provisions of the Constitution, we would not have the unconstitutional Federal Reserve Bank nor would it be necessary to have income taxes, estate, inheritance and gift taxes.  Nor would a privileged Socialist cooperative sector in the business community exist.  Foundations would be abolished and as a result their evil influence would be permanently obliterated.

The United States Government also prints the Federal Reserve Notes using government-owned printing presses and government-paid personnel.  The only cost involved to the Federal Reserve Bank is the cost of the paper, which despite inflation, amounts to less than one cent per note.

Since the government refuses to issue its own money in accordance with the provisions of the Constitution, it must obtain the necessary revenue from the citizen taxpayers.  Now the citizen taxpayer assumes the unconstitutional and illegal burden thrust upon him by a profligate and immoral government to repay a privately-owned banking monopoly $10,000 for every $10,000 bond issued plus interest.  Remember, the issuance of these notes, whether a $1 or $10,000 note costs less than one cent.  Additionally, the Federal Reserve Bank is able to use these bonds as collateral for loaning out other money during the period of the lifetime of the bond.  It has thus received a $10,000 bond, interest during the lifetime of the bond, and at maturity the government repays the bondholder the face value thereof.

We are now able to see how the Insiders and money pool have plundered the resources of the world’s most progressive nation.  They first gained control of governments through their monopoly over the issuance of money.  They then established their tax-privileged sector on the nation’s commercial and industrial sector.  Further economic empire building is continually financed through the United Nations banking complex.  Still another backdoor method of looting even more money out of American taxpayers has been through the ruse of foreign aid.  The proponents of foreign aid have touted the absurd bromide that it was a means of fighting Communism, and that the receiving nations would become stable, prosperous and more democratic.  Actually, the exact opposite of what they said happened.  It was a means of establishing Communist-Socialist dictatorship everywhere and financing their absurdly ineffective economics.  Money is needed for the empire builders and the United States is the only nation on the face of the earth with the industrial knowhow or economic development capable of coming up with enough cash to keep the show on the road until the entire world-government dictatorship could be overtly established.

Irate taxpayers should demand the immediate discontinuance of all foreign aid and let these nationettes stand on their own two feet.  Our popularity quotient seems to be in inverse proportion to the money we dole out, and it has put a horrifying burden on our economy and balance of payments problem.  Certainly if a program has fallen short of its intended goals after almost a quarter of a century of operation, its proponents should be kicked out of government and the whole program scrapped.

In December, 1969, Congress passed the smallest foreign aid bill in history.  What Americans fail to realize is that much of the money previously appropriated by Congress has not yet been spent.  Congressman Otto E. Passman (D. La.) presented figures to each member of Congress on August 1, 1969 showing that the Federal Government has more than $18.7 billion in unexpended balances from foreign aid authorizations.  He added that as of that date, 121 nations had received aid since the inception of the program in 1946.  Among other costs, was a $60 billion tab in interest alone.  This gives the pan globalists the opportunity to continue their projects unabated and within a few short years Congressional appropriations will no longer be necessary as the International central bank will then be firmly established.  This will operate exactly as the domestic central banks, using a fractional reserve banking system and extending credits to the member states on the basis of a quota relationship.

Our lunatic government has substituted aid for trade.  The United States government is expropriating from its citizens money to pay for commodities and services which are being given free to dozens of foreign nations.  Then we turn around and borrow money from more than thirty foreign nations to improve our balance-of-payments problem.  An example of this will show how “friendly” these recipient nations are when they lend us money.  Thailand has received over one billion dollars of American aid in both commodities and services.  The United States borrowed money to pay for these items.  This enabled Thailand to build a balance of payments surplus of over $1 billion.  It took arduous and long diplomatic wrangling to get Thailand to agree to lend the United States a mere one hundred million dollars.  Their terms were four and a half years at six per cent interest.  This is an example of how our “friends” come to the aid of their benefactor.

If the outlandish waste of our tax dollars on foreign aid had produced any benefits for this nation there might be some faint reason for its proponents to seek its continuance.  From the beginning, it has been used to fleece this country of its productivity, to establish competitive industry with our tax dollars, to suppress or overthrow constitutional government and to enable repressive and dictatorial regimes to continue in power.

The following charts indicate where our money has been squandered during the existence of this outrageous program.

Total net foreign assistance to 121 nations and 7 territories of the world
Fiscal Years 1946 Through 1969 — Statistics Finalized July 1, 1969
The Five F Formula :
Frustrating — Fanatical — Frightening — Foolish — But Factual

The above are verified statistics covering (1) Gold Holdings, (2) Short-term Dollar Claims against United States, (3) United States Balance-of-Payments Position, 19 years, (4) Public Debt of the United States, (5) Public Debt of all other nations of the world, and (6) Amount by which our public debt exceeds combined public debt of all other nations of the world.  It is not necessary for me to comment further.  The statistics tell the full story.

Another effect of this awesome waste may be shown in terms of our balance of payment problems and our progressive loss of foreign markets.  In 1950 for example, only 32 countries were producing steel.  Through the use of our money and technical know-how, many additional nations established their own steel mills with the most modern equipment.  Our own mills cannot compete in many cases due to high labor costs and the inequitable tax write-offs which do not permit them to depreciate their old equipment fast enough to take up the lag.  The result is that the United States is now the world’s largest steel importer, using some twenty per cent of the foreign output.  Remember, the majority of this steel has been produced with our dollars directly or indirectly and now it comes to our shores to compete with our own production.

Among some of the equally disastrous, but less visible effects of foreign aid, is the impetus that the money manipulators have given to the development of foreign markets.  Through our financial and technological assistance, hundreds of plants, with the most modern equipment, have been built on all continents.  This has been especially true in Europe, where the Common Market has been actively promoted.  Goods produced in these nations are now appearing in the market places of the world.  Millions of dollars worth of imports are pouring into this country, and the economic impact on the American people is now being felt.  Our unemployment rate is close to the six per cent mark, and many American industries have been virtually priced out of the market—both foreign AND DOMESTIC.  It is impossible for a high tax, high cost country to compete with nations enjoying cheaper labor costs and a lower tax base.

This foreign aid racket, which has fleeced the American taxpayer out of billions of dollars for decades, still lives.  The national debt and outrageous taxes give mute testimony to the fiscal effects on our nation of these irrational policies so relentlessly pursued by Congressional betrayers.  Yet despite the economic disaster which now faces America, the spendthrift Congress has come up with a glittering answer.  MORE SPENDING.  It now plans to subsidize every industry and worker put out of business or a job by these insane policies.  Has America gone completely mad ?

Not only has the foreign aid program been a contributing factor in the imminent financial collapse of this nation, but the whole program has been riddled with waste and corruption since its inception.  Money has been spent on bribing corrupt foreign officials—many of whom have become millionaires.  The money we have poured out in these programs has left our nation with a balance-of-payments deficit of about 540 billion.  During this period, our gold supply has sunk from $30 billion to a little over $11 billion.  It is also noteworthy that those nations which have received the largest dollar amounts in foreign aid have been the ones to drain us of our gold.

No one will ever know how many untold billions of Americans’ earnings have been thrown to the winds through outlandish waste in the foreign aid program alone.  The Office of the Inspector General of Foreign Assistance (IGA) of the State Department is the agency which is supposed to be the watchdog on the handling of foreign aid programs which are handled through the Agency for International Development (AID).  The March 7, 1969 Congressional Record reviews 60 examples of AID’s spending policies in 37 of the 120 countries receiving United States aid.  This was the unclassified report.  The classified reports are not made public, therefore, the government is at liberty to conceal its entire contents.  A few examples revealed in the unclassified report are listed below :

These examples could be extended to cover pages, but these few illustrations indicate that the bureaucrats in Washington are determined to throw our money away at all costs.  Much of the material which is funneled into these greedy nations never reaches the intended sources.  Local corruptors cooperate with the American corruptors and make private deals whereby all benefit, except the long suffering American taxpayer.  There are also numerous examples of American officials receiving AID money to pay for living and other expenses although other appropriations have been made for these purposes.  All in all, an evaluation of the AID program, as well as all the other giveaways proves it to be worse than useless.  It is a disaster.  It is quickly impoverishing the United States and has all but destroyed our ability to create customers for our products through a competitive free market.  Most of these nationettes are run by dictatorial and corrupt officials who view our give-away programs with the contempt which they deserve.  Any nation which attempts to subsidize the entire world and then invite international abuse will receive exactly the kind of treatment which America has received on the international scene.  Since we have lost control over our elected “Representatives” in Washington, we must take any means necessary to stop the further dismantling of our nation.  We must refuse to aid and abet our own destruction by financing it.  A taxpayers rebellion involving millions of angry and outraged citizens is the first step toward a reversal of the planned destruction of our once great nation.

Foreign aid has produced only one major accomplishment.  It has enriched those who administer the program and the Insiders whose corporations benefit from the various deals which are arranged by their collaborators.  This weird and economically unsound approach for the distribution of the money, the fiscal absurdity and lack of results speak for themselves.  One of the most effective arguments against foreign aid may be found in the example of Indonesia.  It was only after foreign aid was cut off that economic progress began there.  This should be an object lesson to us in the future.  A nation should not need to depend on handouts from the taxpayers of a foreign government for its existence.  And it’s about time that the American citizen begins to reclaim his right to exist as free men and not to remain economic vassals for exploitation by governments and their sinister collaborators around the globe.  We must realize that all these phony arguments about fighting Communism, helping developing nations, etc. are simply propaganda devices to keep an outflow of dollars into areas where the money pool wants to exploit resources for their own profit.  Without our handouts these nationettes would begin to find ways of developing themselves or revert to their tribal status.

The Washington government will not change, but will continue its treacherous course until millions of Americans become an actual menace to its continued existence.  How we have remained complacent and apathetic so long is somewhat of a mystery, but probably the continually rising taxes and theft of the rest of our property through planned inflation might provide the trigger which will cause such an eruption that the traitors will at last reverse the course.  Final betrayal into a world dictatorship is already well along toward completion, and when the subsidized mobs in the streets can be triggered to slaughter millions of Americans at random, the conspirators will have achieved all but the mopping-up operations.  Remember that all the banker-sponsored revolutions have not only aimed at destroying constitutional government but have butchered large numbers of innocent victims.  If the overthrow of the government had been the true purpose of the Communist revolutions, this wholesale destruction of lives would never have been necessary.  A revolution is merely a revolt against the group in power.  When the out faction succeeds in ousting the in group, it should be over.  But this demonic cult not only wants total power but plans to wage a war of genocide primarily against the middle classes who might stand as a potential threat to their total power.  A world populated by serf laborers ruled by the billionaire mob is our future unless we halt the destructive finale which is about to be launched.

For decades the propaganda drive has been designed to make us feel guilty about defending ourselves against our enemies.  This is obvious nonsense.  One of the most basic of all human attributes is the survival instinct.  However, suicidal or sacrificial tendencies have been substituted and an extremely neurotic view of life substituted.  While we have been mercilessly exploited, we are made to feel guilty if we dare to entertain even token resentment against our oppressors.  They have made us feel guilty when we should have reacted in anger.  They have perverted our minds, religion, education, art, economy, constitutional rights and civilization.  Mankind’s most noble emotions, including love, have been twisted into tools for political and social subversion.  Now the effects of these years of cunning reversal of truth are beginning to be apparent in every aspect of our lives.  By these techniques they have almost succeeded in neutralizing all opposition to their weird, upside-down world.  By controlling our thinking, they have been controlling our actions and reactions for decades.  It is now time for us to revise our attitudes and rediscover the wonderful art of rational judgment and a moral basis for human conduct.  When we do, our course of action will become crystal clear.

Remember the wise words of the Bible give us a clue as to how we must deal with these usurpers.

Be ye not unequally yoked together with unbelievers :  for what fellowship hath righteousness with unrighteousness ? and what communion hath light with darkness ?  II Cor. 6:14  Shouldest thou help the ungodly, and love them that hate the Lord ?  therefore is wrath upon thee from before the Lord. II Chron. 19:2

1. Statistics from National Taxpayers Union, Suite 300, 415 Second Street N.E., Washington, D.C. 20002.

2. There are 151 different taxes on a loaf of bread, 150 on a woman’s hat, 600 on a house, even 100 on an egg.  Warner & Swasey advertisement.

3. Dec. 23, 1967 issue.

4. The Federal Government now spends $22,000 per second.  This figure becomes higher with each new spending scheme.