DOOM OF THE DOLLAR
If you’re not a millionaire, don’t worry, you will be soon. If wages and assets keep up with the coming rate of inflation, everybody will eventually be in the highest tax bracket. All those envious characters who want to soak the rich will be getting soaked themselves.
As for the 40% to 60% who pay no taxes, they will be screaming to index the 85 different federal welfare programs to the inflation rate. Meanwhile, the government money printers will be chopping down whole forests to get the paper that’s not worth what it’s printed on.
With Federal tax revenues still plunging, and government spending going into orbit, dollar debasement threatens to obliterate the newfound savings of worried Americans. There’s only one way out for the wastrels in Washington whose runaway social sympathy outweighs economic and financial good sense. Create money out of thin air in whatever quantity necessary to pay for their bankrupt social schemes. Make no mistake, they have ruined our money and we are facing ruin because of it.
Here’s an excerpt from an article by Stewart Dougherty that describes the frightful predicament we are in. “Compared to current fiscal, monetary, economic and financial reality in the United States markets, Bernard Madoff’s losses were modest, even quaint. “
“The United States’ fiscal year 2009 federal loss (euphemized for the masses by the term ”deficit,” which sounds technical, econometric, and not nearly as bad as what it really is, a loss) will exceed $2,000,000,000,000.00, more than 30 times Madoff’s $65,000,000,000.00 loss. Keep in mind that it took Madoff a professional lifetime to lose that money; the United States will lose $2,000,000,000,000.00 in just one year, and according to official budget projections will continue losing hundreds of billions more, annually, for decades to come.”
“The cost of the government’s financial-crisis-related bailouts and guarantees currently exceeds $13,500,000,000,000.00, which is 200 times larger than the Madoff scandal. And the nations’ unfunded contingent liabilities, for programs such as Social Security, Medicare, Medicaid, government pensions and the like stand at $75,000,000,000,000.00, 1,150 times larger than Madoff’s fraud. They should let Madoff out of jail and put him in charge of the Treasury. Maybe American could get some relief.”
Big government and statism can’t survive without inflation. Inflating money and credit is socialism’s method of financing itself. Inflationists and socialists are blood brothers. Prudence and sound money doesn’t work for those who want to expand government. They debase the currency to pay for their extravagant and costly social schemes.
That’s why spending and money creation are out of control. But as the economist Ludwig von Mises pointed out, “Inflation cannot go on endlessly. If one does not stop in time the pernicious policy of increasing the amount of money and fiduciary media the nation’s currency system collapses entirely. The monetary unit’s purchasing power sinks to a point which for practical purposes is no better than zero.” When you think about the gargantuan size of our deficits and the current spending requirement’s you can be certain this is no idle warning.