Inflation : The Hidden Tax

Inflation is usually described as a general rise in price of goods and services over a period of time. In actuality inflation is an increase in the overall money supply, increasing prices are a RESULT of inflation not a cause.

Some of the articles which I present are fairly old, but that doesn't decrease their relevance.

The Hidden Tax

Straight Talk

The Problem

All good reading.

When any currency is inflated prices begin to rise.

OK but surely wages and salaries rise as well so the net effect is zero? WRONG.

What occurs is a redistribution of wealth from the poor and middle classes to the politically well connected.

Those who receive the newly created money first receive it before prices have yet risen. They enjoy a windfall. As they spend the new money and the next recipients spend it prices begin to rise before the money has trickled down to most people.

The average Joe has been paying higher prices while earning his old income which has not adjusted yet.

The enrichment of Government Contractors + big banks etc etc comes at the direct expense of everyone else.

Of course this is never mentioned by politicians.

Ron Paul's book The Revolution : A Manifesto talks extensively about this.

Last two items I wish to leave you with.

Shadow Stats




Something has got to change.

Quite correct. Notice also that the excuse for charging interest on money (besides profit) is that a bank must be paid back more at a future date to make up for the loss of the money's value during that time due to inflation.

The ironic thing is that there would be no inflation if banks weren't lending money at interest (including the whole fractional-reserve scam).

Credit should be an interest-free public utility, not a monopoly service run only by private banking.

reply to post by 30_seconds


Thanks for your response, I didn't think that reason for charging interest.

Interesting idea about zero interest public credit, is that giving the government too much power?

Bump.

If you like this leave a comment, after all it does effect everyone.

Originally posted by Chilled Zen
reply to post by 30_seconds

 

Interesting idea about zero interest public credit, is that giving the government too much power?

If giving the government the right to issue interest-free credit is giving it too much power, then I ask... isn't that a lot of power to give to private individuals otherwise?

The Fed is a privately owned corporation.

The govt is is big trouble because the flight from the dollar has been underway and there are signs of techtonic flght from China and Japan, America's two biggest lenders. Meanwhile the govt keeps writing "blank checks" to financial firms that deserve to have long ago failed. But these checks come with strings we'll see pulled a bit later, in Act I secene II perhaps: Increased govt control of vital industry.

Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power.
-Benito Mussolini


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reply to post by silent thunder

Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power. -Benito Mussolini

BINGO!!!

Good post and thanks for the quote. Take it from Mussolini....he knew what he was doing...

Unfortunately...the people in this country HAVE NO IDEA what they are doing.