Will there be income-dependent direct transfers in times of crisis in the future? The government coalition is already putting its most important crisis instrument of the future into position. Fiat money at the push of a button — that would be the end of any political seriousness and the meritocratic foundation of our society.
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Surely some will still remember the COVID aid programs: money transferred by the state, coordinated by the tax authorities, as well as numerous emergency aid and bridging programs administered through state authorities and development banks, in order to compensate for possible loss of income during the mandated lockdowns.
Some might call this hush money. Put somewhat more abstractly, one could also speak of an attempt at corruption by a neo-feudal ruling elite that, when things get tight, resorts to the sharpest sword of our time: the creation of money out of thin air.
Were the COVID aid programs perhaps merely amateurish political bungling on the way to perfect social-state engineering? Politicians such as Federal Economics Minister Katherina Reiche (CDU) have for some time been pushing for a digital, supposedly more targeted variant to organize the direct transfer of money to citizens. If Reiche and her fellow members of the central planning committee had their way, income-adjusted direct transfers would in future ensure social peace in times of crisis — quickly, precisely and without the detour through tiresome parliamentary debates and disputes over fuel rebates or blanket price caps.
A simple transfer in times of crisis, and silence reigns! In this way, the causes of crises would no longer have to be debated; the sedative of fiat credit would smother every fundamental debate. The question of the causes of the many crises — from the migration crisis and energy policy to Germany’s deindustrialization – might no longer be of any interest either. The state, as the cause of all these problems, would initially be taken out of the line of fire.
When it comes to the details of social-state engineering, the firewall parties work hand in hand — as efficiently as a well-oiled machine.
After decades of the illusion of prosperity, Germany has been transformed into a meticulously orchestrated welfare and feel-good paradise — including an open border to welfare migration, as the final punctuation mark to that very illusion. Almost one-third of German gross domestic product already flows into the labyrinth of a welfare state whose administrative machinery has developed a threatening life of its own, continuously identifying new groups of claimants and in this way effectively freezing the once dynamic post-war society.
The so-called Direct Payment Mechanism (DAM) ensures that this condition will initially remain unchanged. The technical foundation already exists. It is intended to link every citizen’s tax identification number to their bank account — the 2022 Annual Tax Act created the legal basis for this and made it possible to store IBANs at the Federal Central Tax Office.
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Step by step, the new social infrastructure is taking shape. In a few years, following the successful introduction of the digital euro, this would probably be the final chapter, turning us into the perfect transparent citizen — every individual with a digital number, the state with its infrastructure having full access to incoming and outgoing payments. The perfect dystopia.
The system still lacks the income-based differentiation needed to enable politicians to engage in endless debates about social justice. But here, too, the Bundestag is consistently working on further development: a legislative drafting aid in the 2026 Annual Tax Act is intended to provide precisely this legal framework and make the exchange of data between the Federal Central Tax Office and the state tax authorities possible.
What is missing are the bank details of around 70 million tax IDs, since so far an IBAN has been registered for only around 16 million. In Berlin, there is optimism: This gaping hole will close by itself as soon as a direct payment is announced for the first time — then, according to the calculation, millions of citizens will voluntarily submit their bank details.
Basically, it is the same as with the COVID patty: A vulgar incentive is enough, and the majority of citizens will bare all. Social-state engineering not only shifts power in favor of the state apparatus — this kind of management of the population is humiliating, degrading, and neo-feudal in character.
Before this fatal rupture in the relationship between the state and its sovereign actually occurs, there is formally only one final step: the Bundestag and Bundesrat must approve the Annual Tax Act and thus the expansion of the DAM in 2026 before the Federal Central Tax Office can access the income data held by the state tax authorities and pay out differentiated amounts. A technical formality that is unlikely to stop the obvious shift in power.
In the end, all that matters to the state and its representatives is that the credit mechanism works perfectly, that the population remains calm in times of crisis, and that the simmering criticism of the ideological foundation of the party state is dispersed with a generous gesture.
Here lies the real catastrophe of fiat credit money: Once in the hands of the money printer, the real scarcity of the world dissolves into the veil of political power and feasibility. The civilizational damage this creates can initially be described in economic terms as deindustrialization, declining productivity, and the gradual impoverishment of the middle class.
The psychological and cultural aspects of citizens’ submission to the state and its money printer repeatedly manifested themselves in the socialist societies of the last century as a disturbing apathy and decline.
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