Protocol #20 – Financial Program

  1. Today we’ll talk about the financial program.  I’ve put this off to the end of my report as being the most difficult, but also the most important and decisive point of our plans.

    Before starting on it, I will remind you that I have already spoken about it earlier by way of a hint when I said that the sum total of our actions is settled by financial issues, particularly, the question of large amounts of money.

  2. When we come into our kingdom our autocratic government will avoid over-taxing the people.  It will do this for reasons of self-preservation because it sensibly remembers that it plays the part of father and protector.

    But running a State organization is very expensive so it is still necessary to obtain the funds required for it.  It will therefore enter into elaborate and open discussions on how to find the right balance on questions of taxation.

  3. Our rule of power, in which the king will enjoy the legal fiction that everything in his State belongs to him (and this may easily be translated into fact), will be enabled to resort to the lawful confiscation of all amounts of wealth of every kind for the use of, and circulation within, the State.

    From this we conclude that the best kind of taxation will be a progressive tax on property.  In this manner the tax will be paid without overly stressing or ruining anybody because it will be a percentage of the value of their property.

    The rich must be aware that it is their duty to place part of their superfluous wealth at the disposal of the State since the State guarantees them security of possession of the remainder of their property and the right of honest gains.  I say ‘honest’ because our determination over who-owns-what will do away with the need for robbery in the standard legal sense.

  4. This social reform must come from the government because the time is ripe for it – it is necessary as a pledge of peace from the government to the people.

    We Shall Destroy Capital

  5. Taxing poor people works to the detriment of the State, firstly because it pushes them toward revolt, and secondly because it wastes energy in pursuing tiny amounts instead of large ones.

    Quite apart from this, a tax on capitalists can be used to diminish the growth of wealth in private hands.  Lately we have been concentrating wealth into private hands as a way of taking it away from the Goyim government.  This reduces their strength because that strength comes from their State finances.

  6. A tax which increases as a percentage ratio on capital will give a much larger revenue than the present individual or property tax.  The present tax structure is useful to us now for the sole reason that it stirs up trouble and discontent among the different classes of the Goyim.

  7. The amount of power that our king has will depend on the equilibrium and the guarantee of peace.  For the sake of these things it is necessary that the capitalists should give up a portion of their incomes so that the machinery of the State works securely.  The State’s requirements must be paid by those who will not feel the burden and who have enough money that they can afford to have it taken from them.

  8. Such a measure will end the hatred of the poor man for the rich.  The poor will now see the rich as a necessary financial support for the State and the organizer of peace and well-being, since the poor man will see that it is the rich man who is providing the necessary means to attain these ends.

  9. In order that taxpayers from the educated classes don’t get too distressed over the new payments they will be provided with full details of where the money is going; with the exception of the money that is required for the needs of our king and the institutions which support the administration of those needs.

  10. The king will not have any properties of his own because the sum of all properties in the State represents his inherited kingdom-estate.  If the king were said to have ownership of a specific property, this would contradict his ownership of all other properties, and thus destroy his right to the ownership of those properties.

  11. Relatives of the king – with the exception of his heirs who will be maintained by the resources of the state – must work for their livelihood and to obtain the rights to property.  The privilege of royal blood must not be used to drain the treasury.

  12. Receipt of money from purchases or inheritance will be subject to the payment of a progressive stamp tax.  Any transfer of money or other property (which will be strictly registered by names) that is done without evidence of payment of this tax will render the former owner liable to pay interest on the tax, from the moment of transfer of these sums, up to the date of discovery of his evasion of declaration of the transfer.

    Transfer documents must be presented within a week at the local treasury office with notifications of the given name, surname and permanent place of residence of the former and the new owner of the property.

    This transfer document must include a definite sale-price amount, which exceeds the ordinary necessary expenses of buying and selling, and this will be subject to payment of a stamp duty based on a fixed percentage of the property value.

  13. Think about how taxes like these will cover the revenue of the Goyim States, many times over.

    We Cause Depressions

  14. The State Treasury will be required to keep a certain amount of money in reserve, and anything that is collected in excess of that amount must be returned into circulation.  This will be done by spending that excess on public works projects.

  15. This type of spending will bind the working class firmly to the interests of the State and to those who reign.  Some money will also be set aside as rewards for inventiveness and productivity.

    On no account should any more than the required reserve be kept in State Treasuries.  Money exists to be circulated, and any kind of stagnation of money works against the best interests of the State machinery.  Money is the lubricant of this machinery and a stagnation of the lubricant may stop the regular working of the mechanism.

  16. Using currency to purchase interest-bearing paper (bonds), instead of spending it, has produced this kind of stagnation exactly.  The consequences of this circumstance are already quite noticeable.

  17. A chart of accounts will also be established by us, and in it the ruler will find the full accounting of State income and expenditure at any moment.  That is with the exception of the current monthly account, which will not have been done yet, and that of the preceding month, which may not yet have been delivered.

  18. The one and only person who will have no interest in robbing the State is its owner – the ruler.  This is why his personal control will remove the possibility of extravagant spending by others.

  19. The ceremonial duties of the ruler, such as being present at formal receptions for the sake of etiquette, absorb so much of his valuable time and will be abolished so that the ruler may have time for control and consideration.  His power will not then be split up into fractional parts among the time-consuming political celebrities who surround the throne for its pomp and splendor, and who are only interested in themselves and not in the common interests of the State.

  20. Economic crises have been produced by us for the Goyim by no other means than the withdrawal of money from circulation.  Huge sums of capital have stagnated by withdrawing money from States, which were constantly obliged to apply to those same stagnant capitals toward the payment of loans.

    These loans burdened the finances of the State with the payment of interest and made them the bonded slaves of these capitals...  The concentration of money invested in industry in the hands of capitalists, who have taken that money out of the hands of small investors, has drained away all the juices of the peoples and also the States alongside them...

  21. The current supply and issuance of money in general does not correspond with the requirements per head, and therefore cannot satisfy all the needs of the workers.

    The available supply of money ought to correspond with the growth of population and therefore children also must absolutely be counted as consumers of currency from the day of their birth.  The subject of money supply is a material question for the whole world.

  22. You are aware that the Gold Standard has been the ruin of the states which adopted it, because it has not been able to satisfy the demands for money, especially as we have removed gold from circulation as far as possible.

    Gentile States Bankrupt

  23. For us, the currency-standard which must be introduced is the cost of working-man power, whether it is represented in paper or in wood.  We shall issue money in accordance with the normal requirements of each subject, adding to the quantity with every birth and subtracting with every death.

  24. The accounts will be managed by each department (such as the French administrative division), and each circle of staff within the departments.

  25. In order that there may be no delays in the paying out of money for State needs, the amount and terms of such payments will be fixed by decree of the ruler.  This will do away with the protection by a ministry of one institution to the detriment of others.

  26. The budgets of income and expenditure will be developed side by side so that they may not be obscured by the distances between each another.

  27. The reforms proposed by us in the financial institutions and principles of the Goyim will be disguised in such a way that they won’t alarm anybody.  We shall point out that these reforms are necessary as a result of the disorderly darkness which the Goyim have plunged the finances into as a result of their accounting irregularities.

    The first irregularity, as we shall point out, consists of their drawing up of a single annual budget which grows year after year owing to the following cause:  this budget is consumed within half the year; they then demand a budget to put things right, and they use this up in three months, after which they ask for a supplementary budget.  All this ends with a liquidation budget.

    But, as the budget of the following year is drawn up in accordance with the sum total of the previous year’s budgets, the annual departure from the normal reaches as much as 50 per cent in a year, and so the annual budget is trebled in ten years.

    Thanks to such methods allowed by the carelessness of the Goy States, their treasuries are empty.  The period of borrowing which follows has swallowed up what remains, and brought all the Goy States to bankruptcy.

  28. You understand perfectly well that economic arrangements of this kind, which we have suggested to the Goyim, cannot be carried on by us.

  29. Every kind of loan demonstrates a weakness in the State and a lack of understanding of the rights of the State.  Loans hang like a sword of Damocles over the heads of rulers who, instead of taking the desired amount from their subjects by way of a temporary tax, come begging with outstretched palms to our bankers.

    Foreign loans are leeches and there is no possibility of removing them from the body of the State until they fall off of themselves or the State flings them off.  But the Goy States do not tear them off; they go on in persisting in putting more on to themselves so that they must inevitably perish, drained by voluntary blood-letting.

    Tyranny of Usury

  30. What substance makes up a loan, especially a foreign loan?  A loan is defined as: an issue of government bills of exchange containing a percentage obligation based on the sum of the loan capital.  For example, if the loan bears a charge of 5 per cent, then in twenty years the State vainly pays away a sum equal to the loan borrowed – just as interest; in forty years it is paying double that amount; in sixty – treble: and all the while the capital (principle) portion of the debt remains unpaid.

  31. From this calculation it is obvious that, with any form of taxation per head, the State is baling out the last pennies of the poor taxpayers in order to settle accounts with wealthy foreigners.  The State has borrowed money from these foreigners instead of collecting those pennies for its own needs from the taxpayers without the additional interest.

  32. So long as loans were internal the Goyim only shuffled their money from the pockets of the poor to those of the rich.  But when we changed the system in order to transfer loans into the external sphere, all the wealth of States flowed into our cash-boxes and the Goyim became our subjects.

  33. If counties have accumulated enormous debts that are impossible to repay, it is not just because Goy kings have been careless in the way that they handle corruption of their ministers, or that they lack an understanding in financial matters, but it is also due to our actions which have required much trouble and great expense on our part.

  34. Stagnation of money will not be allowed by us and therefore there will be no State interest-bearing bonds, except a one-percent series.  So there will be no payment of interest to leeches that suck all the strength out of the State.

    The right to issue interest-bearing bonds will be given exclusively to industrial companies who have no difficulty in paying interest out of their profits.  Whereas the State does not make profits on borrowed money like these companies, for the State borrows to spend and not to use in operations.

  35. Industrial bonds will also be bought by the government.  This will transform those industries into lenders of money at profit.

    This measure will stop the stagnation of money, parasitic profits and idleness.  These things were useful for us when we were among the independent Goyim, but are not desirable under our own rule.

  36. It should now be quite obvious that the brainpower of the Goyim is undeveloped, based on the fact that they have been borrowing from us and paying interest without ever thinking that the same amount of money plus the interest must be taken from their own State pockets in order to settle up with us.  What could have been simpler than to take the money they wanted from their own people?

  37. But it is a proof of the genius of our chosen mind that we have cleverly planned to present the matter of loans to them in such a manner that they have even seen them as an advantage for themselves.

  38. Our accounts, which we shall present when the time comes, and which are based on the experience gained by centuries of experiments made by us on the Goy States, will be distinguished by clearness and definiteness and will show to everyone at a glance the advantage of our innovations.  They will put an end to those abuses to which we owe our mastery over the Goyim, but which cannot be allowed in our kingdom.

  39. We shall set up our system of accounting in such a way that neither the ruler nor the most insignificant public servant will be in a position to divert even the smallest sum from its destination without detection, or to direct it in another manner that is contrary to our fixed and definite plan of action.

  40. And without a definite plan it is impossible to rule.  Marching along an undetermined road and with undetermined resources brings a nation to ruin by the way of heroes and demigods.

  41. The Goy rulers, whom we once upon a time advised should avoid their ceremonial duties of being a representative at State receptions, observances of etiquette and entertainments, were only smokescreens covering for our rule.

    The favorite courtiers who replaced the rulers in the sphere of ceremonial affairs were placed there by our agents, and every time gave satisfaction to short-sighted minds by promises that future economics and improvements were foreseen...  Economics from what?  From new taxes?  These are questions that might have been, but were not, asked by those who read our accounts and projects.

  42. You know what shape they are in due to this carelessness and to what degree of financial disorder they have arrived – putting aside the astonishingly successful industries of their peoples.

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