Your Tax Money at Work

When it was decided that tax money would be used to bail out financial firms too big to fail, I asked the question: what is the probability the money will be used to continue the practices that caused the financial crisis considering that causing the crisis is profitable?

The probability turns out to be, of course, 100 percent.

Your tax money has been, and will be, used to finance credit default swaps in a deflationary trend. The taxpayer directly pays, by default of the system, the profit to be had from a failing economy through bonded insurance derivatives that the interlocked firms receiving TARP funds--the network of integrated financials too big to fail--buy and sell. The direct payment of the profit is in addition to the indirect benefit that the deflationary trend produces in the form of consolidating capital and markets.

AIG (your tax money), for example, will be paying hedge fund operations within the integrated system that bet the economy will falter and credit (bonds) will default. Considering that allowing wealth to accumulate into the upper class (consolidation of the capital) always results in recession, there is virtually no risk to the CDS buyers who can be, and are, also CDS sellers (remember, it is an "integrated" system). The profit is systematically ensured with no risk and paid by the taxpayer, which is not the hedge funds since they are exempt (a regressive tax code). The systematic model is state capitalism, not socialism though both can be argued as the same thing with being "too big to fail" the determining (controlling) variable.

So, we see that the effect (the profit) is systematically caused by a circular and recycled accumulation of the effect organizationally integrated and paid largely by The "little" People (regressive taxation) so that the reward is always disproportionate to the risk to conserve the status quo of disproportionate (elitist) power, or Hamiltonianism.

This system of finance, this business model based on being too big to fail in order to dictate the marketplace and control the bid, literally has the victim taxpayers (the non-elite that suffer a regressive tax burden) paying the wrongdoer to do the wrong and finance the means to do it all at the same time. It is a system of finance that can hardly be anymore unjust and inequitable. It is the model of finance that Thomas Jefferson so strongly opposed (the Hamiltonian model), with the inequity having become evermore visible, disfunctionally passe' and a model of absurdity.

For the small class of people accepting public funds to stabilize the economy, using it to cause a profitable instability with a circular system of effects while telling the taxpayer we should fear socialism all at the same time, fascism is not the acceptable alternative!

Progress the tax code so that your tax money is working FOR YOU, and not against you!

Now is the time to do it!