The Biggest Racket in the Universe

--“How did Uncle Sham come out on top of the power heap?” David Montgomery asks on his page.

It’s a good question.

“From what I can tell,” Montgomery opines, “it’s all about the money. Money is the lifeblood of any regime… The more money a regime extracts from people, the more powerful it becomes.”

Makes sense. The Land of the Free is, after all, the world’s top tax farmer. (And that is, mind you, out of 197 regimes in the world.) The IRS pulls in trillions of dollars each year. Trillions. Yet, it’s rare we see a dime of productive value to show for this absurd level of government spending.

Moreover, the U.S. government is one of only two regimes which imposes a global tax on its citizens. The other? Eritrea, a tin-pot dictatorship.

And only one of these countries, of course, has a stick big enough to enforce such a thing.

Surely, by now you’ve heard about the Foreign Account Tax Compliance Act (FATCA).

“Through FATCA,” Montgomery explains, “banks around the world are forced to be de facto IRS agents, literally filing reports with the government on all ‘U.S. persons.’ The process is so costly and complex that many international banks have shut down Americans’ accounts and stopped accepting new American customers. FATCA effectively amounts to backdoor capital controls.”

As one Swiss banker put it: “We survived World War I, World War II, the instability of the 1960s, inflation of the 1970s, the fall of the Berlin Wall, the credit crisis of 2008, QE, and now negative interest rates. But FATCA is killing us. We have to turn away all clients with any U.S. contacts, even if they’re not U.S. citizens. Because if they have contact with the U.S., they may owe tax in the U.S. or be subject to the SEC. We could be attacked by the IRS or the SEC without doing anything wrong. And yet, the IRS has an office here in Zurich. Imagine that. A foreign country has a tax collection office in our city. That’s crazy.”

--FATCA aside, the U.S. tax code on its own is a behemoth, weighing in at 74,000 pages. If you can believe it, a whopping $140 billion is spent each year in America on tax preparation alone.

“Worse than the massive financial hit,” Montgomery says, “the loss in quality of life and societal benefit is tragic. We’re talking 7.6 billion hours per year wasted on tax preparation and filing.

“Let’s put 7.6 billion hours in terms we can understand. Assuming a standard 40-hour work week for 50 weeks per year. It’s as if ALL of San Francisco, Seattle, Atlanta, Kansas City, Cincinnati, Miami, and Boston did nothing but tax preparation and filing year round.

--This is all, of course, to make sure you pay your “fair share.” Which is just another way to say “Pay Cosa Nostra or get locked in a cage.”

But, hey. Don’t take it personal. It’s just politics.

And, come hell or high water, the racket must continue. The bread and circus line must not let up. We’re in too deep. We’ve come too far. Utopia is within our claws.

So, we ask…

Want to take a ride in a car? Own a dog? Deposit cash at the bank? Buy some milk for your kids? Camp in your backyard? Feed the homeless? Collect rainwater?

Welp. Check with your local regulators first. And read the fine print. These could be, coming to a town near you, the actions of stone-cold criminals.

“This,” Montgomery explains, “is how authoritarianism masquerades as law. Every government dictate is spelled out in literally hundreds of thousands of pages of federal and state legalese.”

--It’s not about your, or anyone else’s, protection. It’s simply the nature of politics. And politics, as you know, is a racket. 

Which is why, today, we invite Montgomery to explain, in full detail, why politics is the biggest racket in the Universe. And how to escape the bloodshot eye of the storm in one piece.

Read on…

Politics is the Biggest Racket on Earth

By David Montgomery via

Let’s face it, friends. You can ignore politics, but politics won’t ignore you.

If somebody asks what you think of politicians, what’s your gut response…

Yum or Yuk?

For most people it’s a yuk that ranks even lower than cockroaches and colonoscopies.

Most people know the status quo is deeply wrong. Seventy-five percent of Americans believe the government is thoroughly corrupt. Half see the regime as an immediate threat to their freedom.

Even if you’re bored or disgusted by politics, a moment of focus is warranted. Why? Because Americans are at serious risk despite their material comfort relative to much of the rest of the world.

The biggest disasters often catch us off guard. We wonder, “How on earth could this have happened?” These days it’s no mystery how it happens. We live in a 24/7 hurricane of TV shows, video games, movies, apps, music,sports broadcasts, and social media.

The competition for our attention is so fierce and unrelenting, goldfish now have longer attention spans than we do. It’s mass A.D.D.

Dire Stakes

Americans are suffering from record levels of depression, suicide, obesity, and stress-related disease. The U.S. has become medication nation, and people are drinking themselves to death in record numbers. I travel a lot, and every time I return to America the feeling of anxiety in the air is palpable.

Simply put, things are not OK. Americans know these are dangerous times. But despite what politicians and the media keep insisting, the primary threat to our well-being isn’t ISIS, or falling televisions.

It’s true that serial killers are incredibly scary, regardless of whether they’re motivated by religious zealotry. And mass shootings, perpetrated overwhelmingly by non-Muslim males, are horrific.

But “private violence” isn’t how hundreds of millions of people get slaughtered. These shocking democide statistics reveal the most pressing lesson of politics:

The more powerful any political regime becomes, the more at risk we are.

A small, poor government has limited ability to inflict widespread harm. But a monumentally powerful government is capable of inflicting catastrophic harm at home and abroad.

Here we have the unnerving reality facing Americans today:

The U.S. regime is the most monumentally powerful government in history.

It possesses an unprecedented capacity to stalk, propagandize, extort, kidnap, bankrupt, cage, or destroy anyone and anything that doesn’t serve its interests.

Permission to Live

Relative material comfort and the never-ending entertainment hurricane distract us from the danger of the situation. Behind the bread and circuses, the truth whispers to anyone willing to listen:

The government calls the shots in almost every aspect of our lives.

If you doubt that, please review the CFR and state legal codes. Leave me a comment naming anything that’s not “regulated” (in other words, controlled) by the regime under threat of fines or imprisonment.

But isn’t this just “law and order”? No. It’s a matrix of control which, as we’ll see, has turned us into unwitting criminals. Over 40 percent of all men are arrested by age 23.

The rest of us just haven’t been caught yet. Really. Everyone is at risk. Law professor John Baker warns, “There is no one in the United States over the age of 18 who cannot be indicted for some federal crime. That is not an exaggeration.”

Every adult choice we make today is subject to government permission.

None of this happened overnight. It’s the generational result of politicians hatching literally thousands of new laws year after year, decade after decade.

The mainstream media calls politicians “lawmakers” for good reason. Making up laws is their primary expression of power. The effects often extend for decades after their political terms end.

Even centuries.

I know it’s tempting to block this stuff out, but there’s a vast and growing wasteland of ruined lives who have already been victimized. Some might claim I’m exaggerating, but facts speak louder than any warning:

The U.S. government cages millions of non-violent people and kills countless innocents abroad while stalking the rest of us.

None of us is exempt from the fallout.

The Democracy Delusion

Here’s the reality of democracy in America:

Less than 0.001 percent of the government is elected.

That’s right, less than one one-thousandth of one percent of the government is chosen by “the people.”

The U.S. regime is 22 million tax-funded employees who “govern” through thousands of federal, state, and local bureaucracies.

How many of these strangers do voters get the pretense of choosing?

Four stuffed shirts at the national level and a few local politicians…

It’s like voting for a handful of ice cubes to be tossed on an iceberg.

And yet the perpetual caging, killing, and stalking are done in the name of democracy, as if to suggest that voters chose these outcomes — “the will of the people.”

Now researchers at Princeton have proven what most of us already know: There’s ZERO relationship between what the government does and what voters want. Voter turnout is at record lows because people know the system is a scam.

Even celebrities are wising up. Welcome to the democracy delusion, Mr. Diddy.

Is the system corrupt? Depends on your perspective. To the regime it’s working as designed. It’s set up for anything but change. For those who believe voting for one one-thousandth of one percent of the government matters, know that the fix is in anyway. Despite record low approval ratings, incumbents have a 96 percent reelection rate — by design.

It all seems like madness, until you realize the system is set up to serve the regime, not you.

Meanwhile, those 22 million unelected strangers will be “governing” you before and after every election. And you’ll continue to pay their salaries under threat of imprisonment regardless of how or if you vote for the 0.001 percent.

Politics divides, then conquers.

The premise of choosing a handful of power-seeking strangers to lie to represent you and boss you around govern you hasn’t worked out well. It’s left millions of Americans angry, cheated, bitter, and fed up.

This isn’t about voting harder or protesting louder. It’s about pulling back the curtain.

Politics is the biggest racket on earth.

[Ed. note: Want solutions to escape the racket? Check out the full article titled Escape the World’s Biggest Racket — Politics and the Age of Decentralization. Click here to read on and see Montgomery’s ways out.


David Montgomery
Editor, Bananas!

Chris Campbell

Written By Chris Campbell

Chris Campbell is the Managing editor of Laissez Faire Today. Before joining Agora Financial, he was a researcher and contributor to