The government is making you poor, and making you more poor, still as time
passes by. That's because congress is negotiating
with the White House, on how to make YOU pay high taxes, forever. If not
through higher rates, than through an even more pernicious means...
INFLATION. The deficit makes you poorer. Read that last sentence again,
it's that important. And then ponder this FACT...
Both Democrats and Republicans want to add trillions of dollars to the
national debt. They only disagree about how many trillions, and when
we should schedule the next "debt limit" crisis.
Have you had enough? Or do you think we need Democrat tax rate hikes
or tax by inflation instead?
Do you believe we need...
* a smaller government
* a balanced budget
* and a strong economy
...ASAP?
These can ALL be achieved if Congress simply refuses to raise the debt
limit. They don't even need to schedule a vote! That's why I sent this letter
to Congress using DownsizeDC.org's "Cap the Debt" campaign.
You may borrow from or copy this sample letter...
I believe government is too big and too costly. Capping the debt limit
where it already is will force government to become smaller.
But there's another big reason why you must stop running budget
deficits. The more Congress spends, the weaker my saved dollars
become. This means I have to pay higher prices. It wipes out my
savings. Deficits make me poorer!
Economist Christopher Lingle explains why this will happen.
http://www.thefreemanonline.org/headline/the-threat-is-in-the-spending/
In the second round of Quantitative Easing (QE2) beginning in
November, 2010 . . .
* the Federal Reserve created money out of thin air
* and used it to buy a whopping 85% of all government debt sold by the
Treasury
In other words, your record-setting deficits aren't being financed
through purchases of bonds by you and me, or even by China. Those
dollars are being created out of thin air.
That means the value of those dollars falls, and then prices go up.
The Consumer Price Index may not yet reveal it, but Americans see
prices going up in the grocery aisles.
Your deficit spending is being done through monetary inflation on the
backs of the poor, the elderly on fixed incomes, and even the middle
class you so claim to love.
Moreover, inflation . . .
* Creates uncertainty about future price increases...
* Leading investors to purchase assets and commodities as a hedge
against inflation...
* Instead of investing in new enterprises and business expansion...
* Which means stagnant growth, high unemployment, and depressed wages.
In other words, there is a direct relationship between inflation on
the one hand, and slow economic growth and persistently high
unemployment, on the other. Both are the fault of a Congress that
refuses to make real, dramatic spending cuts. But the leadership of
BOTH parties continues to sell Alice in Wonderland economics. They
would have us believe that all this deficit spending is good for us.
Yet as Lingle points out, another increase in the debt limit will most
likely mean a "QE3" where the Fed will create even more money to
purchase even more federal debt.
Here's what's needed, NOW: A balanced budget. It will bring stability
to the dollar's value. Stability will lead to a greater sense of
certainty for investors and businesses, which will spur new investment
and create jobs.
Stop inflation now. Stop deficits now. Do NOT increase the debt limit!
And demonstrate political courage -- make the cuts.
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