Inflation

Inflation! The most insidious tax of all taxation. Like a stealth lioness on the prowl it sneaks up on you, and when it strikes it is too late. Its much like the old chinese water torture treatment, one drip at a time until you are inundated, and its too late. Or, like the frog in the pot of water on the stove heating ever so slowly gradually coming to a boil and before the frog realizes it he is cooked, and its too late.

Ever since the 1930's our government in its infinite wisdom and complicit with its partner in crime, the Federal Reserve Banking System, has continued over the years to print more and more dollars increasing the amount of money in circulation, thus with each printing they devalue the dollar a little bit each time. At some point its going to be too late. I think the water is getting very hot.

In 1937, which I remember very well, a loaf of bread cost 10 cents, milk 42 cents a gallon, steak 49 cents a pound, and gasoline 12 cents a gallon. In 1937 the average annual salary was $1,368 and unemployment was 25%. In 1938 the Fair Labor Standards Act set the minimum wage at 25 cents an hour. That is $3.77 in 2009 dollars. Today a loaf of bread is $1.65, a gallon of milk is $2.45, steak is $2.98 a pound, and gasoline is $2.70 a gallon. Though we are in a recession the prices of goods keep gradually going up. Why? Because of the $$$$$$$trillions of national debt and the government printing presses humming.

Government with its profligate spending habits has only two ways to pay for its bad spending habit, taxation and inflation, i.e. print more dollars. They just create money out of thin air with ink and paper. Thus, they can pay their debts with dollars with less value. And, who is it that suffers the most, we the little people, the earners and tax payers. Government can never let the value of the dollar float downward, i.e. deflation, because then they would have to reduce their spending to pay their debts with dollars with less value.

Don't you wish you could legally print money?