The Cruelest Tax: Inflation
Kudos to Karl Ushanka for shining some light on the cruelest tax — inflation. If Obama’s economic policy of profligate government spending and massive expansion of the money supply seems familiar, you may be a student of Russian history:
Lenin triggered inflation to eliminate the Tsarist monetary system, which he planned to replace with centrally-managed rationing. He increased the money supply twenty-five fold. Lenin said:
“The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.”
According to the government, US inflation has been moderate. But outside of the “mainstream” media, who trusts anything emitted by the Debt Star? If we believe the price of commodities instead, we get a very different story:
Since November 3rd, 2008, the last business day before Obama was elected president, the US dollar has lost 58% of its purchasing power (gold), and 70% of its purchasing power (silver). The same date range shows a 41% purchasing power loss to gas, and 11% to milk.
Do you think it’s awful, what they are doing to your savings? Just wait until the Obama/Bernanke tag team finishes pushing us off the cliff into hyperinflation. Here’s what we have to look forward to:
At Lenin’s death in 1924, the inflation rate was approximately 5,000,000%. By comparison: 1923 Germany: 3.817B% inflation. Zimbabwe, just four years ago: 4.700B%. Despite the warnings, each of these hyperinflation events was triggered by overprinting the nation’s currency.
For perspective, today’s $3.15 gallon of gas would cost this much next month:
1924 Russia: $113,125
1923 Germany: $1,001,962,500
2009 Zimbabwe: $1,236,375,000
Inflating the money supply with “stimulus packages” backed by “quantitative easing” gives our rogue government the power to tax not only “the rich” but literally every human being who holds so much as a cent of US currency. This tax will continue to rise until our money becomes worthless.
Since Obama can essentially steal the entire economy through inflation, why the big fuss about raising taxes on “the rich”? Simple: it is a Marxist dog and pony show, intended to rally the support of the vicious, envy-poisoned lowlifes who constitute Obama’s base. As the Manchurian Moonbat has admitted, the point of raising taxes is not to produce revenue, but to inflict “fairness” on his enemies.
Cross-posted at Moonbattery.
There is some justice in the world. The economic slump is going to be putting a few more people out
Ronald Bailey reviews: Abundance: Why The Future Will Be Much Better Than You Think.(Link via: Instapundit.)