NoSSN - The Political and Economical Seesaw

The Political and Economical Seesaw
December 21, 2000

The Political and Economical Seesaw
December 21st, 2000
by Bryan Rusch

Who really knows if a long-term bear market looms on the horizon?
If G.W. gets his Christmas wish the economy will continue to roll
on for his first 100 days in office, the very same days in which
a President forwards his political agenda for the next 1360 days.

A strong an vibrant economy certainly makes fiscal decisions and
political proposals easier to push through our governmental
system. Mr. Bush has said repeatedly that he wants to do the
people's work while he is in office, and that is why he met with
the most powerful man in the country, if not the world, Alan
Greenspan.

Who does Alan Greenspan work for? Is it the people of the United
States? The adjective "Federal" before the word Reserve certainly
implies that Mr. Greenspan works for the government, but is that
really true? No, he works for a private corporation comprised of
Private Banks, namely the Federal Reserve System. Corporations
are in the business of making money for their stockholders.

The Congress asks their congressionally chartered bank spokesman
Alan Greenspan to testify routinely before the seat of government
to make sure that the Congress' plans for public spending does
not exceed the projected forecasts of money valuation in our
largely manipulated economy.

Bush's recent meeting with Fed Chairman Greenspan was nothing
more than a politically motivated kissy-face, I'll play nice if
you play nice gesture. George understands that the main axle on
the economic and political seesaw has to be well greased if the
socialist and symbiotic relationship between the country's people
and its representatives is to remain balanced, or at least appear
that way. Bill Clinton certainly understands this economic
principle of teeter tot protocol, which is quite possible another
reason why George ran over to the White House. George just wanted
some insights and pointers on interacting with the real "Fed",
the one that has held the purse strings of the economy for the
past 81 years.

Here is the rub that most Americans just do not understand. There
are two components that control the monetary system in our
country. The first component is taxation, and the other is
interest rates. Our representatives control the taxation, and the
banks control the interest rates. Bill Clinton as we all remember
increased taxation retroactively in his first 100 days in office,
which signaled to the Fed that they would be getting a green
light to lower interest rates and make more "money" available for
loans. What do you get but an economic boom when this equation is
implemented, and where does the money flow after that point? A
good percentage goes right back into the hands of Washington. I
hear surplus.

George wants to lower taxes. Just how much is uncertain at this
time, but the Fed likes republicans to come into office
periodically so their banks can start to put on the economic
squeeze to recapture property, tangible and intangible. It is now
turn for the Fed to enrich their coffers at the expense of the
people. Keeping the people balanced economically until the next
tax and spend government of "the people" can take power is the
trick. Sure people may pay fewer taxes the next four years, but
if there is less money to go around what is the difference? The
Feds wealth will be in a rebuilding stage, and their stockholders
value will increase, while the public hangs on to the lower end
of the big lever commonly called the economic cycle.

Bryan Rusch, bryan@taxfreedom101.com, is a financial educator,
and contributing writer for the weekly ezine "The Tax Freedom 101
Report"
http://www.egroups.com/group/the-tax-freedom-101-report

"America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves." -- Abraham
Lincoln

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