The fiscal policy of both major parties is inflationary.
Inflation is defined as more money chasing the same amount of goods.
When you print more money the price of goods and services go up.
Now what is really happening is that the House of Representatives passes budgets which
are larger than last years appropriations. When they pass larger budgets and don’t have the revenue to cover those budgets they have to find a way to raise the revenue.
Congress has a committee called the Ways and Means Committee.
Ways and means to raise the money and of course screw the American citizens.
There are three ways that the Ways and Means Committee can fix the budget deficit.
One, raise taxes. That is an extremely unpopular strategy in an election year.
Two, issue more bonds. I can understand borrowing as an emergency measure but not borrowing consistently to fund an operation.
Three, monetize the debt. That is a fancy word for counterfeiting. They are going to print more money to make up the deficit.
Now Congress gave up its power to coin money back in 1913 when the Federal Reserve Act was passed. So what they will do is to give the Secretary of the Treasury permission to print more money. The Secretary of the Treasury owns the presses, plates, ink, and paper and pays the employees. He can’t give the order to start the presses.
Why, because of the Federal Reserve. So he walks across the street and meets with a Federal Reserve banker who authorizes the Secretary of the Treasury to print more money.
The Federal Reserve issues credit and the Treasury department prints more money.
The Federal Reserve then gets collateral in the form of Treasury Bonds, Bills and Notes.
The Federal Reserve didn’t put up a penny BUT RECEIVES INTEREST FROM THE COLLATERAL PUT UP BY THE TREASURY DEPARTMENT.
I call that a pretty neat scam.
My solution to that is to cut government spending (and by cutting spending you are cutting the governments power) in the reverse fashion it was expanded.
Leave taxation where it is.
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If you have any comments please feel free to get back to me,
My motto is:
Increasing liberty through decreasing government.