Creature From Jekyll Island by G. Edward

A 5% devaluation applies, not only to the money earned thisyear, but to all that is left over from previous years. At the end ofthe first year, the original dollar is worth 95 cents. At the end of thesecond year, it is reduced again by 5% leaving its worth at 90 cents,and so on. After 20 years, the government will have confiscated64% of every dollar we saved at the beginning of our carreers. Afterworking 45 years, the hidden tax on those dollars will be 90%. Thegovernment will take virtually all of them over our lifetime. Earnedinterest will partially offset this effect but it will not alter theunderlying reality of government confiscation.

EFFECT OF "MODEST" 5% INFLATION

For the past forty years, all the published charts illustrating thedecline of the dollar from such-and-such a date to the "present"

show the following type of curve.

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THE CREATURE FROM JEKYLL ISLAND

These, of course, are averages. A few people in the middle class of the bureaucracy will have managed to place some of their dollars into tangible assets or income-producing securities—what few that remain—where they are somewhat protected from the effects of inflation. For the vast majority, however, inflation hedges constitute but a tiny fraction of all they have earned over a lifetime.

And so we find that, in The New World Order, inflation has been institutionalized at a "modest" level of five per cent. Once in every five or six generations—as prices climb higher and higher—a new monetary unit can be issued to replace the old in order to eliminate some of the zeros. But no one will live long enough to experience more than one devaluation. Each generation is unconcerned about the loss of the previous one. Young people come into the process without realizing it is circular instead of linear. They cannot comprehend the total because they were not alive at the beginning and will not be alive at the end. In fact, there need not even be an end. The process can be continued forever.

By this mechanism—and with the output of work battalions—

government can operate entirely without taxes. The lifetime output of every human being is at its disposal. Workers are allowed a color TV, state-subsidized alcohol and recreational drugs, and violent sports to amuse them, but they have no other options. They cannot escape their class. Society is divided into the rulers and the ruled, with an administrative bureaucracy in between. Privilege is now largely a right of birth. The worker class and even most of the administrators serve masters whom they do not know by name.

But serve they do. Their new lords are the monetary and political scientists who created and who now control The New World

Order. All of mankind is in a condition of high-tech feudalism.

HIGH-TECH FEUDALISM

Inflation is not the only aspect of economic chaos that is now under control. Booms and busts in the business cycle are also a thing of the past. Like direct taxes, there are no business cycles any more. Now that the government has firm control over every economic check point, business cycles simply are not allowed.

There is no speculation in the market, because no one has funds with which to speculate. There are no expansions of inventories or capital goods in order to maximize future profits, because inventories now are determined by formula. Besides, profits are also A PESSIMISTIC SCENARIO

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determined by formula and, although they are just large enough to keep pace with inflation, they are guaranteed.

Chaos in the economy is now impossible because it is not

tolerated. Neither is a depression. Yes, there are hundreds of millions of human beings living under conditions of extreme hardship, and thousands die of starvation every day, but depressions are outlawed. No politician, no author, no one in the media would dare to suggest that the system was a failure. Each month the government releases new statistics showing in some obscure way or another that the economy is steadily improving. Although people are starving everywhere, hunger does not exist anymore.