If I started printing money in my basement and distributing it around town, men in black suits and sunglasses would show up at my front door and I probably wouldn’t be heard from again for a long time. That’s because counterfeiting dilutes the money in circulation making what you have worth less. It is stealing and that is why it is illegal. Why then does the Central Bank get to do it?
We hear almost every day in the news how the Federal Reserve through manipulating the money supply is keeping “inflation” in check. This is another classic example of the news media either being ignorant or downright disingenuous. Price increases are not inflation, they are a result of inflation of the money supply. This is a great article on inflation.
Inflation is a tax. It is probably the most insidious tax. When you think of taxation, you think of income tax, sales tax, property tax, gas tax, telephone tax, utility tax, payroll tax, health care tax, and on and on ad infinitum. I think you get my point. But do you ever consider that inflation is a tax? To explain it in the simplest terms, the government simply prints money to fund whatever program they deem necessary. War and entitlement programs come to mind. When they do that they are counterfeiting. “Wait”, you say, ” I thought that was illegal.” Well, if you do it it is, if the Federal Government does it it’s not. Sound like a double standard? Yup. So they print money, making yours worth less. That’s a tax.
If the government had to fund these massive war and entitlement programs by imposing a direct tax on the people, there would be a revolt! That’s why they use the more subtle inflation tax to derive the funding from. We’ve become conditioned to accept annual price increases as normal. As long as they remain in the low single digits for some reason the people think that is OK. If I put my money in a CD at the bank at 4 percent and the annual price increases are 5%, I have a net loss. Oh, and by the way, Uncle Sam has the gall to charge me capital gains tax on the 4% increase even though I had a net loss. And we consider that to be OK too, since capital gains tax is as low relative to what it used to be.
Are we a bunch of passive sissies or what? Where is the outrage? I for one will not stand idly by while the Federal Government continues to gouge me at every turn. I’m only one person, but I will at the very least attempt to enlighten you as to the deceptive strategies of our “government by the government, for the government”. We have the power to take it back, but do we have the will? That will be evident in November I guess. Will you vote for the lesser of two evils once again? Do you think John McCain or Barack Obama have any interest in reforming the Federal Reserve and restoring a sound dollar? Of course they don’t. Both of them are dependent on the inflation tax.
Whether you vote Republican or Democrat isn’t as important as whether you’re interested in reforming government. Both parties have a status quo to maintain and that is their primary interest. Do we have other pressing issues? Of course we do. But I’m here to tell you, the most basic step in reforming government is restraining government. The Federal Reserve is coal to the Federal Government’s runaway steam locomotive. We must take away the fuel that powers this out of control system before any true reforms are to be had.
Posted by freedomwarrior
Posted by freedomwarrior
Posted by freedomwarrior