Taxes are going up no matter what happens in Congress over the next few years. Lawmakers saw to that the moment they dumped a bunch of government money into the economy in the form of “economic stimulus.”
To be sure, the federal government does bare responsibility for putting Americans out of work. Pandemic shutdowns were their idea, so it makes sense that they should foot the bill. Unfortunately, that isn’t exactly what happened. Most Americans that received a stimulus check from the the government didn’t lose a day of work during the pandemic.
So…what’s going to happen next? Well, economic reality is due to set in very soon.
When a government prints money, it is buying the dependence of its people. Printing money is the only way any government can ever produce economic value. With the exception of the fiat currency (read counterfeit bills) produced by a nation’s power elite, governments produce nothing of value. They cannot produce value because the only function of a government is to “govern.”
So it would stand to reason that in public schools, in colleges, and in the endless hours of supposed educational content on PBS, we are never taught about the true cause of inflation. But why should this be? Is it because it is obvious that when a thing is more abundant people will not be willing to pay as much for it? Or is it because inflation is, in reality, a hidden tax?
The Fed, which is not a government agency and is owned by banking interests from outside the United States, tells us that inflation is not a problem. They tell us that inflation is a natural by-product of economic activity — not the result of their money printing.
However, Peter Schiff, who recently appeared on Tucker Carlson, explains that prices are going up while at the same time, the value of everything is going down. But how is this possible? Peter reminds Tucker’s audience, “You must remember inflation is nothing more than a form of tax. When the government spends money, they have to get money, and the public has to pay for it. Normally, a government would raise taxes, and taxpayers send their money to the government, and then the government spends it. But a $1.9 trillion stimulus bill was just passed and nobody’s taxes have been raised.”
Mr. Schiff is describing an underhanded form of taxation. It works, almost by magic, sucking value out of the money you have saved in your bank. This is true black magic. It doesn’t matter where you hide your money. It could be at the bank. It could be in your mattress. No matter how physically secure your money is when the government prints money the money already in circulation becomes less valuable. The logical question would be, how does this make inflation a hidden tax?
To understand the answer to that question you must understand the nature of power. Those with true power don’t get it through money and wealth. They get it through influence and control. By reducing the value of the wealth you have worked for, the government makes you more dependent on them. When you are dependent, you will obey — no matter what is demanded.
When confronted with this kind of reasoning, many people ask, “Who would act like that?” To which we ask you, have you ever dealt with a Homeowners Association? Have you ever tried to reason with a city council or the heads of a school district? People like this crave power over others, and they are attracted to government service. They will tax you by any means possible, and they are not even the worst in the bunch.
