Professional Documents
Culture Documents
by David F.
While the average American does have "a vague idea" that
corporations (as well as the economic elite) use plenty of
techniques for avoiding taxation; how many know that the
proportion of Federal Income tax derived from Corporate
income tax declined steadily from 32% in 1952; to 23% in
1960; to 17% in 1970; to a low of 9% in 1985? Without vital
knowledge such as this, the public will remain in the dark as
to what is really causing the decline in most Americans'
standard of living. .
As Victor Hugo once put it, "No army can withstand the
strength of an idea whose time has come", and the time has
come.
Important additional note!
The author would like to remind the reader that although
most of the incidents referred to in the book occurred in the
late 80s and early 90s (because that's when the book was
originally written), it would be no problem at all to choose a
comparable set of incidents taken from today's current
events. In short, we are always being manipulated and
exploited with basically the same methodology, so providing
incidents (i.e., examples of a particular exploitation
method), at any point in time, to support the basic
arguments in the book would be relatively easy. It would
simply entail a repeat of the time and effort taken to collect
the currently provided set of supporting bibliographic
references.
Chapter 1
The Hoax Of Equal
Opportunity And Equitable
Prosperity
HOAX:
MISLEAD, VICTIMIZE
The Hidden Social Order
Not only were the taxpayers footing the bill, lower labor
rates gave them higher profits. On top of that, the elite were
often able to negotiate tax advantages with the foreign
countries, so all in all, it has been a case of "to hell with the
American work force".
But hey, it's not all doom and gloom. American blacks have
definitely made progress over their counterparts in South
Africa, whose lot seems to have remained on a par with that
of English feudal serfs. Mind you, they are still confined to
the servants' quarters, which are now called "homelands".
Everyone knew about the sweat shops but little was done
about them, because all the right palms had been greased.
Everyone was turning a blind eye until the 60 Minutes TV
show brought their plight to the nation's awareness. The
government was no longer able to turn a blind eye, so it
provided the next best concession for the sweat shop
owners, it offered conditional amnesty to the Mexicans who
were already living in the States, so that the affected
industries would not be put out of business by the sudden
loss of its sizable work force.
Ever since the serf gained the right to be called a free man,
the wealthiest 1 percent have been using the time to regain
ground initially lost. They seem more determined than ever
to maintain the old order. One way of doing this is to
purposely maintain a poorly educated work force.
Neocolonialism
Since the 50s, the planet has in effect, been enduring an era
of social regression caused by the widespread proliferation
of the new and more subtle forms of both Feudalism and
Colonialism.
Keep in mind that the same story is being played out in all
the other countries dominated by an economic elite. The
bottom 90 percent are being systematically milked, and the
cream is being skimmed off by the folks at the top. We need
to take steps to homogenize the economic classes.
In case there are any readers left who doubt that the rich
are getting richer while the poor are getting poorer,
information from the US Census Bureau should remove any
doubt whatsoever. The following statistics bear mute
witness to the feudal realities that have taken place during
the 80's.
There's $700 million a year that won't get used to repair the
roadways they buckle when delivering their goods. There's
also $700 million per year that won't help to clean up the
rivers and lakes corporate America has polluted, and
continues to pollute.
Lest we forget:
The proportion of Federal Income tax (derived from
Corporate income tax) has already declined from 32% in
1952; to 23% in 1960; to 17% in 1970; to a low of 9% in
1985.
To make things even worse, the bulk of the leveraged
buyouts which ushered in a horrendous wave of tax
avoidance, have occurred since 1985. In 1988 there were
3,500 public deals worth some $300 billion. {B63} The four
firms previously mentioned on 1-36, alone represent a
potential annual legal tax avoidance in excess of $2.2
billion.
Now that the elite have removed equity from the economy
and replaced it with debt leaving a large proportion of
corporations utterly vulnerable to bankruptcy in the event of
a serious recession; and after they have left American
industries uncompetitive from decades of removing profits
while allowing manufacturing machinery to become old and
obsolete; the economic elite are eagerly saying its time for
the employees to share in the ownership of the nation.
Obviously, if corporations are eager to get on the ESOP
bandwagon, and they most certainly are, logic if nothing
else should suggest that despite the lies being fed to
employees all around the country, employee stock-
ownership plans benefit employers more than they benefit
the employees. And they do. Here's how.
Most important is the fact that banks and S&Ls were, and
still are today, vehicles for acquiring money to gamble with.
Most depositors who deposit their money in a savings
account, or on fixed term deposit, tend to think of banks as
giant vaults in which their money can safely reside free from
the ravages of fire, theft, and accidental loss. Even the
massive amounts of money that flow into banks from
pension funds are put on deposit basically for safekeeping.
Decades ago, when interest rates, and property values were
relatively stable and comparatively fixed, the image of
banks as vaults was not that far off the mark. Most
institutions made their money from the spread in interest
rates between what they paid to their depositors, and what
they received from those who borrowed from the bank.
Times have changed.
Were the speculators now going to lose all the profits they
had made on the way up? Not a chance. They were all
capable of walking away from their institutions relatively
unscathed, and here's how.
Between the time the gamblers know they have lost, and
before a bank or thrift actually declares bankruptcy, the
insiders purposely maintain appearances and keep the
institution afloat as long as possible to buy time to carry
out some or all of the following remaining steps of this
much used scenario.
And don't forget, these figures are for banks only! The
figures for "problem" and "failed" Savings and Loan thrift
institutions are even much worse.
Mr. Bowsher also pointed out that Bush's S&L plan will cost
the taxpayer tens of billions in extra, unnecessary
interest, just to hide the S&L losses "off budget".
{B73} This practice of hiding deficits "off budget" is done
strictly for political public relations, and therefore is
blatantly meant to deceive and manipulate the public.
On the other hand, the economic elite are, through the IMF
and World Bank, able to maintain and exercise political and
economic influence, if not domination, over the 2nd and 3rd
world debtor nations by making the loans conditional to
their agreeing to all sorts of fiscal policies such as
"privatization of national resources" which consolidates
political and economic power into the hands of a wealthy
few who are eager to make future deals with the Western
elite to increase their wealth and power. By accepting these
conditions, the 3rd World economies are kept vulnerable to
exploitation by the Western superpowers. (i.e. ...political
and economic slavery, as opposed to physical slavery)
Monetary Devaluation
Here's how.
It did not take long for the cost of living in America to begin
escalating because Americans had an insatiable appetite for
imported goods, the prices of which had been raised (like
the price of gold) to compensate for the now publicly
acknowledged devalued dollar.
Perhaps the worst aspect of the 3rd World Debt crisis has
been what is referred to in the banking circles as "flight
capital", which refers to the net outflow of money from a
country. First of all, it is commonly acknowledged that
despite the obvious moral implications, money flows North.
In other words, more money flows from the poor 3rd World
nations mainly located in the Southern hemisphere, to the
rich 1st World nations primarily located in the Northern
hemisphere, than vice versa. The drain of capital from the
poorest nations to the richest nations is caused by two main
factors. The first reason is the net outflow of interest
payments to 1st World banks. The crux of the problem for
these countries lies in the fact that the amount owed in
interest payments quite regularly exceeds a country's total
revenue from exports. (i.e. the country's profits) By not
being able to use their profits to stimulate economic growth
in their own economies, most 3rd World countries are kept
on the brink of bankruptcy. Since 1982, this net outflow of
capital from the poor to the rich has amounted to over $160
billion dollars. But that is only half the tragedy!
A Quick Recap
With all the capital gains recently made from the current
wave of "debt for equity swaps", an immediate need has
arisen for the elite to be able to temporarily bypass
taxation on capital gains.
***
Chapter 2
The Hoax of Democracy
The first voting system serves the public, the second serves
the elite. Not surprisingly, the one that serves the elite is
much more powerful because the lobbyists can vote daily,
and they can seek specific and obscure minor changes to
the wording and meaning of previous legislature that can
greatly favor a special interest group, ...usually to the
detriment of the rest of society. A good example of this was
the lobbying carried out by the rich wine making Gallo
family regarding an inheritance tax exemption that has
since come to be known as the "Gallo Amendment". {B108}
The reader can get a rough idea of the ultimate cost to the
taxpayer in lost taxes, as a direct result of this family's
successful lobbying, by reading the article "Before the
loophole closes" on page 239 of the Oct 2 1989 issue of
Forbes. {B109}
One week later, they did. But this time the four original
Senators were joined by Donald Riegle, now Chairman of
the Senate Banking,
Honest Politicians
Not only that, the man who provided the insider connection
between all these entities was none other than Michael
Milken the junk bond king. He provided the means for the
entities to buy up each other's thrift junk bonds. Should
anyone be surprised?
Perhaps I should have warned the readers to wear knee
high rubber boots when approaching politics for a closer
view, because it's literally impossible to get a close look into
the pig trough without being surrounded by some pretty
foul smelling mire. {B126}
• DENY guilt
• DECLARE innocence
• DELAY the investigation and/or prosecution
proceedings
• DESTROY any incriminating evidence.
Those who are forced to disembark from the gravy train are
usually compensated by the elite for their past loyalty. The
media elite quite often help out by promoting their books, or
by tucking them under a wing as they did with Nixon in
subsequent years.
Unfortunately for the elite and the taxpayer alike, the S&L
bailout deals appeared a little too much like additional gifts
to the haves at the expense of the taxpayers, so that a
special boondoggle committee may have to be set up to
investigate the matter. The aspect that has made these
bailout deals so beneficial to the lucky buyers is the tax loss
credits that went along with the deals. In short, massive tax
avoidance vehicles.
Voters are aware that in order for a bill to be made into law,
it must first get passed by a majority in the House of
Representatives, as well as by a majority in the Senate,
before it is passed on to the President for his approval.
I think not!
Prior to the Second World War, the American elite had not
yet exposed the magnitude of their colonial appetite to the
world. When the United Nation Organization was formed
just after W.W.II, America still appeared to stand as a role
model for many 2nd and 3rd World nations who were eager
to throw off the yoke of colonial exploitation. After all,
America appeared not only to have thrown off the yoke
herself, but to have become a dominant military and
economic force in the process.
The World Bank, which had always been a tool of the elite's
interests, was given a huge contribution from the American
taxpayer. This money could then be doled out "as required"
to the foreign debtor countries who looked most likely to
default. The American taxpayer had effectively started
paying the Third World's interest payments to major
US banks! So far the government has guaranteed, with
taxpayer's money, $30 billion of the World Bank's 3rd World
Loans. Potential future debt for America's unborn. {B138}
They are not the elite, but they are rewarded so well either
overtly or covertly that it is rare, if ever, that a person in
that position goes against the will of the elite. To do so
would be tantamount to giving up one's career, and
jeopardizing the security of one's family.
Arab oil money quite literally poured into the States through
Houston based Aramco Services Co., which was the
American purchasing arm for the Arabs. In addition to
billions of dollars of oil industry equipment, Aramco
Services supplied billions of dollars of goods and services
that were needed to upgrade overnight the standard of
living in the oil rich Arab nations. Even though the products
ranged from foodstuffs to hospital equipment, the major
beneficiaries were again the largest corporations who were
the only ones capable of supplying goods and services on
such a grand scale.
The elite have repeated over and over that the technological
discoveries made through defense industry research end up
benefiting the average citizen. However, despite the fact
that 65% of our scientists are involved in war effort
technology, the main improvements in living conditions for
the bottom 90 percent consist of relatively old technology;
motor vehicles, electricity, telephones, TVs, stereos, and
dishwashers. Although pocket calculators and computers
have ended up in many homes, the public derive little value
from the enormous waste of physical, mental and natural
resources involved in the shameful production of
instruments for destruction, carnage and social devolution.
Then at each polling booth let the people initially vote for a
PARTY (and its platform), ...instead of for a candidate. After
a party is chosen by the most per capita votes in the
country, the respective number of members of each party
are determined by the relative ratio of total votes received.
By electing a party by the number of per capita votes, the
abuse of gerrymandering would be eliminated.
Once in power, the incoming party then has the right, not
the obligation to replace ministers holding portfolios.
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Chapter 3
Manipulation of the Media
The important thing to realize is not just that the elite own
virtually all the Western media, but that it is now owned by
a very small handful of media moguls. The shocking truth is
that the ownership of newspapers and TV stations has
already been consolidated to such a staggering degree that
unmanipulated news coverage has practically ceased to
exist.
Today's Elections
For those of you who are still reluctant to think that the so-
called "freest media in the world" cooperate with politicians
behind the scenes to accomplish just that, let me hand you a
bombshell. Think back for a moment to the fact that the
Trilateral Commission is virtually operating America. How
could this information have slipped the attention of the
freest media in the world? (society's watchdog) Very simply.
The reason is as shocking as it is revealing.
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Wire Services
A.J. LIEBLING
OSCAR WILDE
Viewer Guides
Enough of perspectives.
News Omissions
Chapter 4
The Hoax of Equality
Before The Law
Putting the Legal Society in
Perspective
Since Feudal days, those who dominated society remained
in power by surrounding themselves with individuals or
groups of allies who could provide them with a defense
against either physical or legal challenges. In the name of
law and order, police and armies have traditionally worked
in conjunction with the legal community to enforce the
existing laws of the land.
Although not the most obvious, but certainly one of the most
effective ploys handed down through the centuries is the
use of an unnecessary specialized legal language that
ensures that any one who is brought before the courts is
more or less compelled to not only employ, but put himself
or herself at the mercy of a member of the predominantly
pro-elite legal fraternity.
If the tax laws are unjust to the bottom 90%, then it must
be recognized that the justice system enforces
"injustice" in that case!! Don't forget, it is our justice
system that enforces Feudalism.
Lawyers in Congress
Most likely none have known hunger, most likely none have
ever worked for the minimum wage, and probably very few
can even count a single blue collar family among their
friends. In other words, at best they possess an academic
appreciation of the interests and needs of the citizens they
supposedly represent. Socially and economically, the two
social groups travel in totally different social circles.They
mix with a cross-section of their electorate briefly at
election time, but for the most part, their associations are
restricted to their own peer group with whom they compete
for success in a material world. And of course as politicians,
it is the wealthy special interest groups that have always
offered them the most career rewards.
Pre-trial Tactics
Tactics in Court
For those who can afford to hire the most experienced and
devious lawyers, finding legal technicalities to invalidate
evidence or cause mistrials is yet another method of using
the justice system to walk free. The list of tricks and
methods seems endless. In any case, whether the defendant
is found innocent or guilty often hinges on the experience
and craftiness of one's lawyer. The richer you are, the more
cunning a lawyer you can afford, the more chance you have
of winning - regardless of whether you are innocent or
guilty.
Note: Not surprisingly, the whitewash did not stop with the
Nixon administration. With absolutely no authority or
mandate to do so, President Gerald Ford, Nixon's successor,
pardoned Richard Nixon of all crimes he had committed in
office.
Now that we have looked at "justice" for the rich, let's have
a quick look at "justice" for the poor. Pardon me, but I
squirm a little whenever the word justice is used in
connection with the justice system.
Justice for the Bottom 90
The Watchdogs
Are there watchdogs to keep the judges and lawmakers
honest? Well, yes there are. But I'll let you judge them for
yourself.
Chapter 5
The Most Ruthless Hoax of
All
The police, the FBI, the CIA , and of course the armed
forces are all used by the elite as required. Most have been
subjected to strict military indoctrination and trained to
follow orders without question. Although it is rare when the
elite cannot achieve their domestic objectives using
peaceful methods such as legislation, police have in the past
been encouraged to be heavy handed and even brutal to
dissuade the meek and moderates from joining peaceful,
and worthy protest actions. Police have frequently used
brutal violence to suppress both anti-apartheid and anti-
Vietnam demonstrations, in fact, the murders of four Kent
State University students by the National Guard bear
witness to the level of force sometimes deemed necessary to
keep freedom of speech in it's proper place.
Shuttle Diplomacy
Chapter 6
The Elite's Current
Strategy
6) Employer-subsidized Loans
Media Consolidation
Chapter 7
Considerations Regarding
"The Ultimate Social
System"
PLATO
Gandhi's Contribution
Chapter 8
Taking Responsibility for
Change
Bibliographic References
for Chapter 1