SOVEREIGNZ- CREATING UNITY FROM CHAOS

Comments from Carl Peterson's numerous SOVEREIGNZ postings on Facebook have revealed some shocking truths.

The community identifying with Maori ancestry is deeply divided within itself.

First, there are those who would go to war to recover lost lands. 

Second, there are those that insist on compensation for specific hapu. 

Third, there are some who insist on Maori self government in partnership with the Crown.

Fourth, there are those who insist on Maori sovereignty over the central government and all non-Maori in New Zealand.

Fifth, there are those that pursue personal sovereignty through a legal process.

Sixth, there are those that just want to get on with it under the present rule.

Seventh, few of the different Iwi trust any other Iwi.  Maori distrust clearly predates the arrival of colonists, as many different tribes were entirely wiped out before colonization.  That is an accepted fact.

The saving grace in all this is that at least each position can be roughly understood and used in negotiations between themselves.  Some are far more negotiable than others.

Confusing as this must be, the non-Maori community is just as widely divided; but more according to financial class and economic belief system rather than cultural values or historical grievances.

A large minority of ‘others’ share Maori grievances of unfairness in politics and financial matters.  Many of these are unemployed or under-employed families surviving on a bare benefit.

A majority of ‘others’ comprise the employed workers, largely blue collar workers trying very hard to buy a home and climb the social ladder.

One step above the workers is the self-employed small business person able manoeuvre around some of the personal tax liability, but even more heavily in debt than most workers.  To them, wealth and success seem to be tantalizingly close, but just out of reach due to taxes and interest on debt.

The top 10% seem to be totally out of touch with the challenges facing the other 90%; insulated by wealth, passive income crafted around low or no-taxed investments, and general class distinction as bankers, landlords and/or business owners.

And then, of course, there are all the special interest groups focused on only one issue, or one party; and in total or partial blindness to all others. 

The established parties have one central issue in common; they all believe income taxes actually fund government, and that all our problems would go away with the right income tax mix.  How many ‘parties’ are there?  About as many as a piece of string is long.

Then there is the cannabis lobby encompassing all uses of hemp, cannabis, and marijauna, thought to be a significant majority.

The anti CP TPP group is huge; probably a large majority of the entire population.

Stop 1080 has a large minority support.  Some want to ban fluoride in our water supply, ensure that vaccinations are voluntary, stop chemtrail pollution by government, reform CYFS, and/or 1001 minor issues; each with its own support group.

‘Divide and rule’ easily comes to mind.  With so many different visions, perceptions, and emotional default positions, is it any wonder that we have been so easily controlled and enslaved by our financial superiors??

In spite of our common needs, two specific groups stand out as practically irrenciliable; the hard core Maori supremists, and the hard core wealthy justifying their worthiness to success by genetics, race, temperament, or intelligence. 

The most honest of the rich freely admit random ‘luck’ as being at least a minor factor of their success.

And behind the Maori supremist claims lies their ‘luck’ to have gotten to New Zealand before the white colonists. 

As far as SOVEREIGNZ is involved, both factions can go somewhere else to fight.  Luckily, their combined lot is surely less than 10% of the whole.

We will never ‘get it together’ by focusing on single issues or single perspectives.  Our only hope is in finding widespread common ground, applying careful focus on our shared needs, and approaching obvious challenges with the same level of logic and consciousness.

In order to heal the past and preserve the future, we must first fine-tune the present.  We have some amazing new tools and understandings to work with, but the best tools mean nothing if we can’t see what’s broken.

At the moment, in spite of unprecedented technological abundance held and controlled by the few, human and natural values have fallen by the wayside as the very rich continue to consolidate their control over the masses.  Those masses include many minority groups, and, the great majority of ‘other’ citizens not presently residing in Auckland mansions.

If we set aside our checkered pasts and focus solely on the present, our shared common needs come to light.  We are all human beings with the same basic needs and desires, but perhaps coloured by past experiences and present circumstances.  And we all have the creative potential to be unique geniuses in navigating through our present circumstances; if only our financial chains were removed and our personal traumas were resolved.

Healing, whether it be of a financial or emotional nature, is a very personal thing.  It therefore requires of us a new and improved way of sharing opportunity out to every person so that no one individual, group, or minority is left out.

If successful, grievances will diminish and eventually retire altogether; and we will be joined together as one people and one tangata whenua; people of the land.

WHAT IS THE END GAME OF THE ELITE?

It has become clear to our banking masters that automation is replacing many menial jobs formerly filled by unskilled labour.  This is a trend that is likely to accelerate as computer technology expands.  Under the present tax regime this will lead to ever-increasing un-employment, and more and more profit accumulating at the top of the food chain.

Society is becoming more and more fragmented by class distinctions dividing capital from labour. Those now unemployed no longer qualify as a worthy class to be attended to.  The unskilled unemployed have become an expendable class bringing no benefit- and many social problems- to the rich ruling classes.  Many consider the unskilled unemployed to be worthless ‘eaters’ wasting resources without contributing any positive value.  Is it any wonder that de-population has become a popular topic among certain ruling circles?

Should world de-population gain traction among the ruling elite the unskilled unemployed will be the first to be targeted.

Next in line will be the eyes-opened activists spreading the alarm and educating the people on the coming dangers, and alternative ways of healing the present rift in society.  Clearly the bankers- those now profiting the most from the present system- will do everything to prevent their monopoly in the creation of interest-free debt from ending.

Those workers now contributing to corporate profit will be left to their devices for the moment.  Also temporarily favoured will be all those now heavily indebted to the banks through mortgage lending.

And all those who now benefit from profits on capital will be loath to change the system that feeds them their profit, regardless of the social problems it causes.

THE ALARM HAS NOW BEEN SOUNDED

A workable solution exists.  It is simple and attainable in New Zealand; perhaps more so here than in any other political jurisdiction.  This, here, now, may be our last chance as a caring and compassionate group of human beings, to restore universal human dignity by changing the simple dynamics of the present tax and banking system.

First we must eliminate all inflationary income taxes, fuel taxes, and road user fees and replace them with a 30% Exit Tax.  We must keep the present GST, assuring the continuation of sufficient direct government funding.

Our own government must claim back the authority to issue new interest-free money into circulation to enable a stable and predictable value of our currency.

The use of the fractional reserve banking model- and the ‘money multiplier effect that follows- should never have been allowed to fall into the hands of the rich.  It is, indeed, a workable financial model for automatically growing the money supply.  However, this should be a tool used exclusively by government through a nationalized banking industry. 

When our new government banks employ this same model for the good of the people rather than for the present wealthy elite, the huge interest debt accruing to the masses will be largely eliminated; and a lesser amount of interest will become available to government to help fund the universal basic income.

Government must implement a universal benefit to engage the productive and creative potential of every human being towards the ongoing endeavour of comfortable, enjoyable, and prosperous simple living.

Such policy will benefit every single person living in New Zealand.  The poor and unemployed will no longer live in poverty and poverty consciousness.  And even the business class will benefit immensely by the absence of income taxes.  Really, who could complain?  The bankers will complain through the loss of their present banking monopoly, but nothing else need be taken from them.

The Hidden Wedge between Capital and Labour

Many persons would argue that the present tax mix is fair, and the best we can do under all the circumstances.  This has been borne out in the recent election.  46% of voters supported the National govt. and its present- and proposed- tax policies. 

However, that does not make it so.  Tax reform figured as an important issue in the election, taking numerous different forms.  It is at least fair to say that it remains a contentious subject of conversation.

What few persons realize is that taxes are entirely unnecessary towards sustainably funding government; and that income taxes particularly are a scourge to society which actually makes sustainable government funding impossible.

We have described how income taxes create unbridled inflation by adding PAYE costs on to all goods and service, how income taxes create a shortage of money forcing interest rates to rise, how income taxes force the private sector to borrow at interest from the trading banks, how accruing interest creates inflation by adding debt to the system with no addition of goods and services, how interest-bearing debt becomes impossible to repay without further borrowing, how income taxes and inflation create huge speculative opportunities for the rich and oppressive costs and debt for the poor, and how income taxes have created the present New Zealand total debt of over $650 Billion.

Those are all general effects caused by income taxes which are impossible to rationally challenge.  But the income tax regime has a blatant agenda hidden within it that ensures that capital will prevail over labour 99% of the time.  By design, income taxes reward capital and enslave labour.

Why is this not widely known and appreciated?  Because it is so in your face and obvious that no one has even bothered to look at this aspect at all.  We hope you are sitting down while you read.

THE HIDDEN AGENDA BEHIND INCOME TAXES

If you operate your own business for profit as a separate legal identity you are entitled to claim and deduct all your business operating expenses before arriving at your taxable income/profit.  Small businesses are then generally able to retain 70% of total profit after paying the tax man.  This can allow a very comfortable life style; and even some measure of capital to invest in further growth and expansion of the business, or a deposit on the purchase of a family home.  And that seems to be a part of the Kiwi dream- to own your own home. 

This is one way by which an enterprising and energetic poor person can hope to one day become a wealthy capitalist- one living on passive income from invested capital.  However, this route is fraught with difficulty; not the least of which is the heavy burden of tax accounting and administration that defeats more than a few would-be entrepreneurs.

Over the last 46 years housing inflation has averaged around 8% per year.  Many Kiwis intent on bettering their financial situation look to the housing market by which to reap future capital gains as homes and rental properties continue to appreciate in value.  This allure attracts new small investors and corporate investors alike.

Many Kiwis, even those on labour wages have purchased their homes with bank mortgage debt with these long term capital gains in mind.  Many are extended to the maximum amount allowed, and can only service their borrowings by borrowing more against their increase in equity caused by rising values of their homes.

Unfortunately, that 8% average increase in house prices is not a straight line graph.  Some years housing inflation has approached the 30% mark, and some years, following the market crashes of 1987 and 2008 for example, housing prices take a tumble.  In those times, the heavily extended home owners take a hiding, often having their homes repossessed by the banks, and losing all their hard-won equity.

Larger businesses, through the use of clever accountants and tax lawyers, are generally able to do even better in the retention of profit; usually capturing 90% of the profit towards further investment opportunities.  As those businesses grow in size and profitability, management salaries are able to increase exponentially.  And even though those salaries may be taxed at a higher rate than the poor, the resulting disposable incomes after taxes are far above the income required for comfortable living.

Inflation caused by income taxes create countless speculative opportunities for the rich.  Those opportunities include investments in the stock market, precious metals, import and export opportunities, currency speculation, and price discounting in bulk purchases. 

They also include tax-free capital gains on property, farm and home purchases.  Many successful entrepreneurs leverage their incomes to purchase and manage several rental homes as well as their own home, banking on long term capital gains at the end of the day.  It has been reported that Members of Parliament own on average four rental homes each.

And because so many of the wealthy have entered the home, property, and rental markets to capture tax-free capital gains, they have bid up the prices of homes beyond which the average kiwi can possibly afford. 

Stock market investments also offer tax free capital gains with only dividends being taxed by the present regime.  Even passive investment in term bank deposits and government bonds enforce the economic hold the rich have over the poor.  As much as the high interest rates of those investments favour the rich, they also enslave the poor in debt or oppressive costs of living.

We are not surprised if you already knew all of that.  What no one seems to realize is the way the present income tax system further oppresses the poor by removing opportunity from them.

HOW INCOME TAXES DIRECTLY OPPRESS THE POOR

We would estimate that 70% of the population earns less than the average wage of around $50,000 per year.  The average wage is greatly skewed by those particularly wealthy persons earning millions per year.

Even at $50,000 income taxes take away $8,000 per year.  Real inflation at around 4.5% takes away another $2,000 of disposable income.  GST at 15% of the resulting disposable income of $40 K eats away another $6 K.

A business does not employ you solely for the public good.  You are there working your butt off so that your employer can profit from your labour.  Surely you can’t be surprised by that revelation.  That is why wages always seem low compared to contract labour hired outside of regular employment.  This doesn’t figure into your disposable income, but it surely puts a cap on your wage package.

And so, this non-average ‘average Kiwi’ (really far above the real average Kiwi worker) is left with a disposable income after all those taxes of around $34,000 per year, or about $654 per week.

An ‘average’ family of four will pay around $300 per week for rent or mortgage servicing, $200 per week for food, $100 per week for power, phone, and internet; leaving only $54 or thereabouts for vehicle maintenance, fuel, rego, fitness, and tyres.  Doesn’t seem to be anything left over for school fees, clothes, entertainment, travel, vacation, credit card servicing,....or anything, does it?  It certainly does not allow for any investment; leaving little or no opportunity for the average worker to ever rise above his or her class as a lowly labourer.  Where is the opportunity to become a ‘capitalist’?

Our point: The average natural person- the lowly wage earner- is left with no profit to invest after paying all ‘operating expenses’.  After all, what is the difference between a natural person’s operating expenses- even as a legal entity- and the operating expenses of a business- another legal entity? 

Do you get it yet?  The income tax regime caters for capital- businesses and ‘persons’ geared toward profit.   It destroys most labour aspirations towards business, leaving labourers struggling just for survival, and competing for scarce jobs at the minimum wage.

In other words our legal system, our tax system, and our banking system have been created to service and support entities that exist only in our imaginations; being the banksters and gangsters supporting debt interest and taxes.  This system continues to enroll the rich who use similar ficticious business entities to minimize taxes and social contributions; and avoid responsibility through limited liability corporate structures. 

The same present system has been designed to enslave the workers in oppressive costs of living, wage servitude, high rental costs, and/or un-repayable debt on bank borrowings.

How did the SOVEREIGNZ concept originate? 

SOVEREIGNZ core policy has been carefully crafted by Carl Peterson over forty years of observation, research, and investigation while living in four distinctly different social, economic, and political jurisdictions around the world.  Since beginning the SOVEREIGNZ concept hundreds of other Kiwis have contributed, commented, and shared in this ever-broadening conversation.  It has been in recognizing the various differences that our shared commonality has revealed itself.  This has allowed an entirely new perspective to come to light wherein we can not only provide for every disparate part of society, but to cater for all the differing human aspirations emerging, as well.

It does not matter if you wish to live quietly on the land, or make big waves in the sea of commerce.  SOVEREIGNZ policy is designed to cater for your individual aspirations, whatever they are.  The UBI will permit absolute freedom of choice in regards lifestyle; and the no-income-tax way of funding government will make access into the world of business easier than ever before for everyone.

We do not need to agree on everything.  We need to agree only on one thing- that each person is worthy and deserving of the right to live freely and comfortably within our abundant society- whatever distinctions their wealth, their jobs, their origins, their colour, or their cultural differences indicate.

SOVEREIGNZ does not care where you have come from or what you have done.  If you are more interested in the future than the past, we invite you to join with us so that your voice, too, can be heard.