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Thoughts on whatever timely topic comes to mind.

April 15, 2010

Rambling About the Forces of Inflation

 

There comes a time when a politically astute senior citizen wants to throw up his hands and just say “screw it!, it’s time to let them do what they are going to do.”  Because, sometimes the profoundly ignorant actually win and there’s really not much one can do about it.

Of course, it really all started way back before even I was a kid. Back then, FDR threatened court-packing to get his strict central government controls passed into law and we’ve been more or less a socialist nation every since. Everyone knew the scheme was totally unconstitutional, but they did it anyway. That’s how we got all those federal regulatory agencies.

Think it’s not socialism? Is “freedom” some blanched faced bureaucrat sitting at a desk in Washington telling farmers what and what not they may grow and how much?  Is it freedom when the central government dictates how our cars must be designed, how much water you may have in your toilet at once and even the consistency of toilet paper?  If that’s freedom to you, then I guess it’s okay that they are now gearing up to regulate all American citizens on where and how they must get their medical care.

Did you know that they just raised taxes again?  Yup, they did.  A lot, too!  Most of it is hidden, but you’ll see soon.  Even those of you who pay no income taxes will see the results of that because the prices of everything will start going up soon.

Oh . . . and while I’m thinking of prices . . .  Remember all those billions of dollars in “stimulus” money floating around?  Where do you think they got all that free money to give away?  Officials of the central government act like it’s their money to give away and I guess it is, somewhat.  After all, we gave part of it to them as taxes.

Other than the tax bucks we sent them, where do you think they came up with the rest of it?  Truth be told, most of that stimulus money is just fiat money.  That is, they didn’t have it in the bank and they sure didn’t walk out back where the money trees grow and pick some.  Nope.  They created those many billions of dollars out of thin air.  Because . . . well . . . the central government runs the central bank, so government can do that.

Now, here’s a closer to home question: What do you think all those billions of dollars in fiat stimulus money is going to do for our economy?  If you have a trillion dollars already floating around in the economy and add another trillion bucks to the economy, many folks are apt to have a lot more money, right?  And so they do.  Is that “stimulating” the economy?  Think so?  How?

Okay then, who pays for that extra trillion bucks suddenly in the economy?  We do, actually.  All of us do.  That’s because all that extra money causes the worth of the dollars already in circulation to decrease.  So, we will all pay for that stimulus money the government created to give away through inflation.  Think not?  Go look at gold and silver prices after the stimulus program started.  The price of gold and silver are a great indicator of how much the dollar is worth day to day -- so much so, in fact, that many smart investors tend to park their money in gold and silver anytime the dollar is fluctuating too much for them.

The inherently ignorant are allowed to vote in this country and vote they did.  They voted for “change” and they got some.  It’ll take a couple years before the consequences are so severe they realize their mistake.  It will jump up and bite them in the ass at some point, though.  They will first realize it at the food store, and then everywhere else, just like the rest of us.

Hey, but there I go assuming stuff again, huh.  Because, most probably the inherently ignorant walking among us may never even realize they are responsible for electing the socialists now running the central government.  No, they’ll properly blame capitalism and the Republicans.  That’s how they’ve been trained, after all. Propaganda works and the Socialist-Democrats are great at it.

On the other hand, there’s a TEA Party function coming up soon and I think I’ll attend to lend my voice to those in the bright sector of our society.

 

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About Me

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Retired medical research scientist and clinical engineer and sometimes political campaign volunteer. Presently writing political commentary -- and starting to dabble in fiction. Interests include politics, alternative medicine, photography, and communications.