This article was originally published by Charles Hugh Smith at Of Two Minds Blog. 

Here’s looking at you, Federal Reserve–thanks for perfecting ‘legalized looting’ and neofeudalism in America.

The problem with pushing a pendulum to its maximum extreme on one end is that it will swing back to the other extreme minus a tiny bit of friction.

America has pushed wealth/income inequality, unfairness, and legalized looting to the maximum extreme. Now it will experience the swing back to the other extreme. This will manifest in a number of ways, one of which is a self-organizing populist war on wealth and the wealthy.

To say the system is rigged to benefit the already-wealthy and powerful is a gross understatement. Take the tax code as an example–thousands of pages of arcane tax breaks and giveaways passed by a thoroughly corrupted Congress and thousands of more pages of arcane regulations and legal precedents.

How many pages apply to the bottom 95% of American taxpayers? Very few. There are the standard deductions for mortgage interest, healthcare costs, etc., but virtually no other tax breaks. Very few pages apply to even the 99%–go talk to a CPA and you’ll find there are no more tax breaks for a sole proprietor making $500,000 in earned income than there are for a sole proprietor making $50,000.

99.9% of the tax code benefits the top 0.1% and the corporations, LLCs, and philanthro-capitalist foundations and trusts they own/control. Stripped of artifice and spin, America’s tax code is nothing but legalized looting. This is only one small slice of the entire pie of legalized looting, of course, but it’s one we can all understand.

A sole proprietor pays 15.3% in Social Security and Medicare taxes. Why don’t America’s billionaires pay 15.3% in Social Security and Medicare taxes? Aren’t Social Security and Medicare/Medicaid the bedrock social safety net programs of the American people? Then why does a struggling sole proprietor pay 15.3% tax to support these essential programs and billionaires pay essentially zero?

There’s a term for this disparity/injustice/unfairness: legalized looting. The super-wealthy pay essentially zero percent of their income and wealth to the programs that provide basic economic security for the disabled/elderly citizenry, while Jose the sole proprietor pays 15.3% of every dollar he earns.

So explain to us again why Mr. Buffett can’t afford to pay 15.3% of every dollar of his income to help fund basic economic security for the disabled/elderly. In a system of even the most basic fairness, every dollar of income would be taxed at the same rate. In a system of even the most basic fairness, those with incomes of $100 million would pay the same 15.3% Social Security and Medicare tax as the sole proprietor earning $100,000.

Needless to say, if this most basic fairness was applied to America’s wealthy and powerful, these programs would not be facing insolvency.

If Joe the sole proprietor hits the big time, he pays 32% federal tax over $165,000, 35% over $210,000, and 37% over $524,000. If we add 15.3% to 37%, we get 52.3%. How many of America’s super-wealthy / billionaires pay 52% in Social Security-Medicare and income taxes? Zero.

Could America’s super-wealthy / billionaires afford to pay 52%? Of course, they could–they own the majority of all financial assets and skim the majority of all income. But they won’t, because the system is rigged to benefit the few at the expense of the many via legalized looting.

It isn’t just the inequality of ownership of capital and power that enrages the oppressed; it’s the blatant unfairness of our neo-feudal/neocolonial system. As I explained in Neofeudalism and the Neocolonial-Financialization Model (May 24, 2012) and Welcome to Neocolonialism, Exploited Peasants! (October 21, 2016), the Financial Nobility have “come home” and applied the same rapacious exploitation they perfected in colonialism to the domestic populace.

Here’s looking at you, Federal Reserve–thanks for perfecting legalized looting and neofeudalism in America.

The gulf between the lavishly praised American ideals and the putrid, corrupt reality of America’s neo-feudal system is wider than the Grand Canyon. As the pendulum accelerates to an extreme equal but opposite to the current extremes of unfairness, exploitation, and legalized looting, those who have suffered the consequences of this systemic inequality will find expression in whatever ways are available.

Since it’s difficult to get to the protected compounds of the super-wealthy, the signifiers of the merely wealthy will offer readily available targets. The new Tesla won’t just get keyed; it will be “reworked,” to the great satisfaction of the “workers.”

Please note that I am not promoting a war on wealth and the wealthy, I am merely pointing out that it is as inevitable as the gravity pulling the pendulum.

The war on wealth and the wealthy will manifest politically, socially, and economically. It won’t be a tightly controlled, top-down movement. It will be spontaneous, self-organizing, and unquenchable.

If you don’t understand why a war on wealth and the wealthy is inevitable, please study this chart: the way of the Tao is reversal.

This article was originally published by Jon Miltimore at The Foundation for Economic Education. 

*EDITOR’S NOTE: Does anyone really need any more evidence that lockdowns do not work?

COVID-19 vaccine may have arrived, but government lockdowns are far from over.

On Monday, Prime Minister Boris Johnson reinstated a strict lockdown in the United Kingdom, citing a surge in infections and hospitalizations fueled by what officials say is a more transmissible variant of the coronavirus.

“It is clear that we need to do more to bring this new variant under control,” Johnson said. “That means the government is once again instructing you to stay at home.”

Lockdowns remain a reality in many parts of the US as well, although many states—Alaska, Florida, Missouri, South Dakota, and Alabama, among them—have abandoned nearly all restrictions.

MultiState, a state and local government relations company, has a tool that allows readers to track lockdown stringency in US states. The company’s methodology relies on reporting on nearly a dozen factors—Are residents under stay-at-home orders? Are bars and restaurants allowed to operate beyond delivery? What constitutes an “essential” business?—to determine each state’s ranking.

The state’s with the lowest “open score” are the following: California (50), New Mexico (49), Washington (48), Illinois (47), Hawaii (46), Oregon (45), Delaware (44), Vermont (43), New York (42), Michigan (41), and Colorado (40).

Will Lockdowns Never End?

Many believed lockdowns might be nearing an end with the announcement of effective vaccines. Unfortunately, that seems far from certain.

Lawmakers continue to rely on lockdowns and various other restrictions in an effort to tame the spread of the virus, but these restrictions come at heavy costs to individuals and economies: job losses, business closures, depression, drug overdoses, and a massive surge in poverty, among them.

This evidence in itself would bring into serious question the ethics of infringing on basic freedoms and fundamental human rights in an effort to slow transmission of a virus. However, lockdowns become even more questionable when one considers evidence that suggests these draconian restrictions seem to have little impact in slowing the spread of the virus.

The aforementioned United Kingdom, for example, is “reimposing” a lockdown, we’re told. But data show the UK’s lockdown stringency has remained remarkably consistent. The toll of the virus, however, has not.

Despite the remarkable consistency of the UK’s lockdown stringency, the virus has spread at its own pace.

This is just one of countless examples that show there is virtually no correlation in lockdowns/lockdown stringency and lower COVID-19 cases/mortality. pic.twitter.com/NERupiTplR

— Jon Miltimore (@miltimore79) January 5, 2021

Data in the US tell a similar story.

California, despite having the strictest lockdown in the country, has the most active cases—by far. Sure, California is the most populous state in the US, but the 1.4 million active cases is more than double the next closest state, Florida, which has roughly 609,000 active cases. On a per-capita basis, Californian’s active cases are about 30 percent higher than Florida, which has virtually no restrictions in place. (To put it another way, California currently represents nearly 17 percent of all active cases in the US.)

California currently has the highest lockdown stringency in the US.

California also has the most active Covid cases in the US (by far).

On a per capita basis, Californian’s active cases are about 30 percent higher than that of Florida, which has virtually no restrictions. pic.twitter.com/0H3C2zDA9y

— Jon Miltimore (@miltimore79) January 5, 2021

Similar patterns can be found in other strict lockdown states such as New Mexico, Washington, and Illinois—all of which are witnessing sharp upticks in cases and deaths despite having some of the strictest lockdown policies in the US.

Counterexamples, however, can also be found. Oregon, Vermont, Delaware, and others have seen more modest case increases and deaths with the arrival of winter.

The Takeaway: The Fatal Conceit

The takeaway here isn’t that the politicians in Delaware and Vermont had better pandemic plans than lawmakers in California and New Mexico or are achieving better compliance. Indeed, Los Angeles Mayor Eric Garcetti recently pointed out the virus is surging in LA County despite “great compliance” with public health recommendations.

Los Angeles Mayor Eric Garcetti admits that despite “great compliance” with the rules (mask-mandate, lockdowns) and his county doing “everything right,” the virus is still virusing.

LA County has had 800,000+ cases & 10,000+ deaths.

What if “everything right” is just … WRONG? pic.twitter.com/zXmQ4sPFym

— Scott Morefield (@SKMorefield) January 3, 2021

The takeaway is that central planners can’t manage the coronavirus. Not effectively anyway. They lack the knowledge and the mechanisms of control necessary to control something as complex as a virus. And to be fair, managing a submicroscopic infectious agent that replicates by transmitting itself through living cells is a rather tall task. (Much more complicated than, say, delivering the mail.)

The inability of central planners to effectively manage the virus needs to be acknowledged. One of the duties of the economist is to offer a dose of reality to those who dream they can create anything if they only have enough power.

“The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design,” Nobel Prize-winning economist F.A. Hayek famously explained in The Fatal Conceit.

Lockdowns may not be effective, but that doesn’t mean they are going away. Politicians are incentivized to embrace them, even if they don’t work.

Perhaps the best way to end the lockdowns is for Americans to remember that all people are born with “certain unalienable Rights,” and that government exists only to secure these rights.

Once people remember this basic truth, they can find the courage and fortitude to peacefully resist this historic government overreach that has proven so harmful to so many.

Fortunately, many are already actively doing so. From Beverly Hills to Louisville to New York City and beyond, Americans are rediscovering the great tradition of civil disobedience.

“I was not born to be forced,” the great American poet Henry David Thoreau, author of Civil Disobedience, once asserted. “I will breathe after my own fashion.”

It’s a principle we never should have forgotten.

World leaders (the ruling class) is urging the public to “remain calm” and “respect democracy” after people stormed the Capitol yesterday.  We are the slaves, and not allowed to demand we live freely as is our birthright.

One such ruler is Canadian President Justin Trudeau.  The rulers can not possibly have people realizing no one has the right to rule them, whether the majority votes or not.

“Democracy is two wolves and a lamb voting on what they are going to have for lunch. Liberty is a well-armed lamb contesting the vote.” -Benjamin Franklin

Canadians are deeply disturbed and saddened by the attack on democracy in the United States, our closest ally and neighbour. Violence will never succeed in overruling the will of the people. Democracy in the US must be upheld – and it will be.

— Justin Trudeau (@JustinTrudeau) January 6, 2021

Wake up, people.  This is how the ruling class sees us! We are their docile slaves and don’t you dare complain about it or do something about it.

Elitist UN Secretary-General Antonio Guterres is “saddened by today’s events in Washington,” a spokesman for the international body said yesterday after protestors stormed the Capitol, according to RT. He added: “In such circumstances, it is important that political leaders impress on their followers the need to refrain from violence, as well as to respect democratic processes and the rule of law.” Even though that rule of law is their enslavement. This is getting ridiculous.

.@antonioguterres is saddened by today’s events in Washington. In such circumstances, it is important that political leaders impress on their followers the need to refrain from violence, as well as to respect democratic processes and the rule of law. https://t.co/SOm1edhbhF

— UN Spokesperson (@UN_Spokesperson) January 7, 2021

These are all the same, honestly.  Respect the system of oppression set up for you, obey the ruling class, and just submit to your own enslavement and oppression to people who think they own you.  Is this finally the wake-up call people need? This is how they view us!

Another ruler Indian PM Narendra Modi said he was “distressed to see news about rioting and violence in Washington, DC.” The Australian ruler is also upset that people are finally realizing no one should be enslaving, ruling, or otherwise owning them.

Distressed to see news about rioting and violence in Washington DC. Orderly and peaceful transfer of power must continue. The democratic process cannot be allowed to be subverted through unlawful protests.

— Narendra Modi (@narendramodi) January 7, 2021

Very distressing scenes at the US Congress. We condemn these acts of violence and look forward to a peaceful transfer of Government to the newly elected administration in the great American democratic tradition.

— Scott Morrison (@ScottMorrisonMP) January 6, 2021

Government literally means “guvernare” to control “mentis” the mind. You can almost feel these rulers are getting anxious as people wake up to their birthright: freedom.

The ‘Great Reset’ is about Expanding Government Power and Suppressing Liberty

Figure out who owns you and do it quickly.  Time is up. Be safe, and stay alert.  Listen to what these tyrants are saying so you can understand how they view us and always continue to prepare for the worst while hoping for the best.

2020 Was a Snack, 2021 Is the Main Course

The mayor of Washington D.C., Muriel Bowser has extended the emergency order put in place ahead of yesterday’s chaos until after inauguration day.  Bowser had previously called in the national guard ahead of yesterday’s protest at the Capitol.

Mayor of DC Requested National Guard Presence at Wednesday’s MAGA Rally

Police also recovered pipe bombs both at the RNC and the DNC offices and found a long gun and Molotov cocktails inside a vehicle on Capitol grounds. In total, 52 people were detained in the unrest, many of them were for simple curfew violations, reported RT.

I have issued Mayor’s Order 2021-003, extending the public emergency declared earlier today for a total of 15 days, until and unless provided for by further Mayoral Order.

— Mayor Muriel Bowser (@MayorBowser) January 7, 2021

The confrontation at the Capitol erupted after backers of President Trump gathered to protest the certification of Electoral College votes for the 2020 election, interrupting the process after only two states were tallied as the building was placed under lockdown. Trump and his allies maintain the presidential race was plagued by voter fraud and irregularities, and have called on Republican lawmakers, as well as Vice President Mike Pence, to challenge the count. However, the VP argued earlier on Wednesday that he lacks the authority to do so. -RT

As of now, Joe Biden will be inaugurated as president later this month. Biden’s presidential election victory has been certified by Congress despite objections by Trump loyalists and the chaos at the Capitol. The certification process was disrupted when a mob broke into the Capitol.

The National Guard was deployed and tear gas was used to disperse those inside the Capitol building. A woman was fatally shot on Capitol grounds and three more people died from “medical emergencies,” according to DC police. At least fourteen police officers were injured in the chaos.

In a video narrated by Nancy Morgan Hart of Headlines with a Voice titled “It’s Now or Never!” comes an explanation of what we are to expect if we continue down the path of obedient slavery to the ruling class.

This has little to do with who is ruling over the slaves or who is “handing over power” to a new master.  This is about the sad fact that the America we used to know, will cease to exist.  There are two paths going forward. As the underclass, we have a decision to make: are our lives ours, or do they belong to the government?

“By acquiescing to the demands of these totalitarians, we are sentencing future generations to a digital gulag with the threat of a real gulag for dissenters,” Hart says. “Our world is descending into darkness.” It has been for some time, but that descent is picking up the pace.

If you still believe in the left vs. right paradigm, this video could really upset you.



According to elitists such as Klaus Schwab, we are headed straight for a world where “you’ll own nothing, and you’ll be happy.” Of course, the rulers will own everything while we simply exist to serve. This is the dystopia and we are staring down the barrel of, like it or not.

“They are ready for the final destruction of our foundational values,” Hart says. People would rather pretend to have a choice by voting for their next master than admit that the system they are supporting is one of slavery. In fact, government is slavery. “They want billions of obedient automatons with the same face, the same thoughts, adhering to their mandates and their proclamations. And once these Marxists cease complete power, they will NEVER relinquish it.”

“The enemy and their tactics have been laid bare for anybody who chooses to acknowledge reality and realize that a battle for the soul of our civilization is underway,” Hart continues.

We have two choices: freedom or slavery. The ruling class will not allow gray areas. “The future will be determined by individual acts of bravery and courage,” not the acts of submission to the state. “Stand up to those intent on enslaving us,” Hart added.

Remain vigilant and stay prepared.  Anything could happen this year and it looks like it’ll be one for the record books.