Saturday, November 06, 2010

The Government just stole from the poor

I just read here that the day after the election, the Federal Reserve made a little-noticed announcement that it’s printing up another $1 trillion. To get an idea just how much money that is, click here.

Not enough people realize it, but every time the government prints money, it is stealing from us. It is stealing the purchasing value of the dollars we already have, and this tends to affects the poor the worst.
The government can choose who receives the new money (friends of government and military contractors) and by the time it trickles down to the rest of us, the new money has already lost much of its value. "To steal from the shoemaker the fruit of his labor," noted Herbert Schlossberg in Idols of Destruction, one can take his product or the money he has received for it. Or else one can so tamper with the monetary system that the money will not serve to purchase economic goods equivalent to the product the shoemaker provides. Outright stealing is widely recognized for what it is, but the economic crime that accomplishes the same thing through debasing the money is not. Yet the motive and the effect are the same."

Ron Paul made the same point in his excellent little book The Revolution:
"When the value of Americans' savings is deliberately eroded through inflation, that is a tax, albeit a hidden one. I call it the inflation tax, a tax that is all the more insidious for being so underhanded: most Americans have no idea what causes it or why their standard of living is going down. Meanwhile, government and its favored constituencies receive their ill-gotten loot. The racket is safe as long as no one figures out what is going on.".
Even the perverted pedophilia John Maynard Keynes (1883 –1946) agrees with me:
“Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some. – As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery. Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."


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