“The government’s finances not only are out of control, but the actual deficit is not containable. Put into perspective, if the government were to raise taxes so as to seize 100% of all wages, salaries and corporate profits, it still would be showing an annual deficit.” –John Williams (Shadow Stats)
When it comes to confiscatory taxes, the people will only tolerate so much. But the government has a covert way of taxing the people that most are completely unaware of. The people do not protest because they do not know what to protest against.
The US government has a technology, called a printing press…that allows it to produce as many US dollars as it wishes at essentially no cost. –Ben Bernanke (Chairman of the Federal Reserve)
Most people believe that the word “inflation” means “rising prices,” (see Big Brother’s Newspeak) but nearly any dictionary will reveal that the true definition of inflation is “an abnormal increase in available currency and credit beyond the proportion of available goods, resulting in a sharp and continuing rise in price levels.” (The American Heritage Dictionary, Second College Edition.)
Rising prices are not inflation but a result of inflation. It is an increase in available currency (think “monopoly money”) and credit (artificially low interest rates) that cause inflation and ultimately higher prices for the goods and services we purchase.
Inflation hurts the middle class and poor far more than it hurts the rich. This is because they have to spend a much larger proportion of their incomes on the goods and services they need to survive, while the rich can put more of their incomes into assets and investments which are increasing in nominal value as a result of the inflation. Inflation also helps the elite (politicians and bankers) and the government, because they get their hands on the new money first, before it has an effect on the prices of the goods and services they buy. (And who wouldn’t benefit from being able to print and spend as much money as they wanted?!)
Inflation is therefore a hidden tax on the middle class and poor. It is a means of transferring wealth from the poor and middle class to the wealthy and the elite (including the government.) No wonder the government doesn’t want you to understand it! (Full explanation here.)
Inflation is a far more devastating tax than anything that has been enacted by our legislature. –Warren Buffett
By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. —John Maynard Keynes
If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered. —Thomas Jefferson
Most Americans believe that The Federal Reserve is a government entity, but in actuality it is a private bank cartel—the private bank that Thomas Jefferson warned us about!
Is inflation in your future? You bet it is!
For more on this important topic, including how you can protect yourself during America’s inevitable hyperinflation, see:
Obama has made it perfectly clear that he is willing to sacrifice the dollar in order to achieve his social agenda.
A Final Thought: If hyperinflation is in our future, why haven’t we seen it yet? There are four good reasons, any one of which could change at any time (and all four eventually will change.) “And that means investors who are relying on the Fed’s version that everything is okay and that the government is managing inflation may be in for a rude awakening.” (See: What Is Holding Back Inflation In The US Economy?)