01
Jun
11

Inflation is Taxation


The American government is supposed to be for the people, by the people and of the people, but that is the biggest fallacy, and is just elite (upper class) propaganda.  The fact is that government is for the rich people, by the rich people and of the rich people.  The founding fathers were composed of the elite of their time, were property owners, businessmen, and lawyers.  Now after all the tax payers pants were dropped when congress voted for a bailout, and saved the rich and their financial companies from going belly up, know that you will be paying for that for years to come.

The economic travesty has resulted in many Americans losing their jobs, their homes, their cars and the financial well-being.  While congress (whose members earn on average $175,000) gave themselves another pay raise (which brings their pay up by more than $4000 to $5000 per month), the senate also voted for a 2.9% pay for federal employees.  So the cost of government went up without your approval.  Are you okay with that?  The pay raise is automatically deigned to be put into place since a law was passed in 1989 – both the house and senate have to vote against their pay increases each year.

So add injury to insult, these elite bozos run the country and are deeply involved in the financial market place, taking donations from corporations and the rich to pay for their political campaigns.  Why else do you think that our government would bailout? General Motors and AGI that’s who?

Now how do you pay for loans?  You either cut back in other areas personally or earn more money so you can pay off a debt.  But we are talking about government.  And this nation is the largest debtor in the world.  How do they pay for anything?  Especially when it is a bailout?  Print more money!

What is insidious about that is that you and I, who are getting laid off, losing our homes, our cars, our credit ratings.  What about students who are struggling with the ever-increasing cost of tuition, fees and books?  Well, unfortunately, you will pay what is called inflation  (here is CA, the largest university system is talking about a 32% increase in tuition).  Same education higher price tag, because the dollar is not worth one hundred percent — it is equal to 68 percent.

The true value of a dollar is in what it can but with it.  When the gas prices jumped up in the past 5 years, so did the cost of goods and services.  The payment for simple things like food also jumped up proportionally.  That means what you paid $1.17 for in 2005 now costs like $1.60.  That is real inflation – something goes up in price because you money is worth less.  The Brisk Tea I have use to cost $1.39

Look at the cost of tuition at your campus – how much has it gone up?  Think about it.  The federal government spends 7.5 trillion and then everywhere you have the cost of goods and services, books and tuition jumping up.   The country raised its own debt by about 10 percent in one year.  For individuals, we end up bankrupt from doing such foolish things, but then again the federal government doesn’t have to be held accountable to the voters, right?

This is the “doublewammie” of economics.  You get a government that costs more and they pay for their raises with inflating the money supply, and lowering you real income by depressing your dollar’s worth.  But actually that makes sense if you have no accountability and a hot printing press in the back yard.  The rich pay for their presidents, vice presidents and their buddies in congress, and the government bails them out when the screw up economically.  Works pretty well this system of rich-controlled capitalism — no wonder the poor like Che.

Corporations Paid off include the following:

JP Morgan Chase at 29 billion; AIG at 122.8 billion; General Motors, Chrysler and GMAC $78.9 billion; Bank of America $45 billion.  Others receiving bailout money:  American Express, Capital One, Goldman Sachs, KeyCorp, Morgan Stanley, PNC, Bank of New York Mellon.  This represents the true cultural, financial and material elite of America.

If you took the first 700 billion bailout plan and gave that money to the people, each tax paying person would have about to pay up $2000.  The fact is that the government has to pay back the debt someway.  The debt ceiling is too high, and even the senators understand this.  But, the government has a way to not raise taxes; its called Inflation.

At http://www.inflationdata.com, the following was posted.

“Our Inflation data (see table at this link) is calculated to two decimal places while the government only calculates to one decimal place. Therefore,  while being based on the government’s index our data provides a “finer” view.  January and February 2005 is a perfect example, according to the government statistics both months had an inflation rate of 3%. In January however, our data shows it as 2.97% and February shows as 3.01%. Therefore instead of the inflation rate being “flat” it is actually rising slightly. In another example we see August 2003 and September with the Government saying the rates were 2.2% and 2.3% respectively. This would lead us to believe that inflation rose .1% during that period.  In actuality however,  it rose from 2.16% to 2.32% or a .16% increase, substantially more than .1%!”

That means the government is using inflation to tax the people, rather than raise taxes.  Haven’t you ever wondered how the Republicans can pass a tax rebate and release millions back to the tax payers?  They just print more money (devaluing the value of our money).  Then your dollar which was worth 100 is worth .97 next year, then it devalues another 3% the next and so forth.  Eventually the dollar is worth a penny.  That means a trillion eventual turns into the value of a billion in just the same way — that how you cut the debt as a government, but ensuring the money is worth less in real buying power.

Think about it.  If you could take a loan of $10,000 and then when you get to pay it back the $10,000 is worth $1,000, what a deal (steal).

Articles of Interest:

Fed Chairman Bernanke Admits Printing $1.3 Trillion Out Of Thin Air

Ron Paul:  Printing Money Only Prolongs the Pain

 

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