He hasn`t taken a dime from me. My stocks are up and improving.
Serious TA - read a damn economics book.
When the gov't prints money to finance the deficit, they are stealing your money by devaluing the purchashing power of your exsiting dollars. Its called a hidden tax.
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The Hidden Tax
There are basically two kinds of taxes you need to be aware of as an American taxpayer - the kind of taxes the masses can see, and the kind of taxes the masses CAN’T see.
The “inflation tax” is of the second kind - an invisible tax.
Whenever a politician promises you more free stuff than the guy he’s running against, whenever the masses think they’re getting something for nothing, whenever our government engages in deficit spending, whenever we borrow the prosperity of tomorrow to spend today, it comes back to haunt us in the form of an infation tax, which insidiously, and invisibly, confiscates our wealth.
When you begin to account for the stealth tax of inflation, in 1966 the Dow Jones Industrial Average began a long, slow crash that would see it lose value over the next sixteen years. Chances are, you never heard of the crash of 1966, but you can be sure it happened.
And this crash resulted in the raging price inflation of the 1970s, eating away at investor profits. Economists refer to it as “The Invisible Crash” because investors in stocks never knew what hit them.
The Dow failed to substantially surpass 1,000 points from 1966 to 1982. If you had put $100,000 in the Dow in 1966, by 1982 your $100,000 was still $100,000 - but due to inflation it would only buy you $34,000 worth of goods and services as measured by the 1966 Consumer Price Index.
That represents a 66% loss in value! That is how the inflation tax can cause an invisible crash.
Many who invested in the Dow between 1966 and 1982 felt they were making a safe and prudent investment decision. They bought into the pundit hype that investments in stocks do well over long periods of time. All the while their currency was losing its value at an average rate of 6.52% per year (a 66% loss spread over sixteen years).
A smart investor would have recognized the ravaging effects inflation was having on their portfolio, and would have moved their money into investments that exploited the weakness of the U.S. currency, like precious metals.
Beyond any shadow of a doubt, the U.S. stock markets are crashing, and have been since as early as 1999 and as late as 2001, depending on how you measure it.
Even though the Dow is going up in price, its value is falling. If everything else is going up in price faster than the Dow, then it stands to reason that the Dow is crashing in relative terms. Just as there was an invisible crash from 1966 to 1982, there is an invisible crash happening right now - and the hidden tax of inflation is the cause.
An invisible crash is a product of a fiat currency system and/or rampant credit creation.
It requires a rapidly expanding currency supply to obscure the fact that an overvalued asset class is correcting and reverting to fair value, or less. It has happened numerous times throughout history when a country leaves an asset-backed currency for a fiat currency - and it started in the United States when President Lyndon Johnson started to fund the Vietnam War by cheating our financial system through deficit spending and President Nixon took us off the gold standard in 1971.
The primary cause of inflation is the rising of prices due to the expansion of the currency supply. With inflation, everything gets more valuable except currency.
So when inflation occurs, the value of your money decreases - which means you are able to buy less with it. The primary cause of inflation in the U.S. is the creation of currency by the U.S. government and banks.
When the U.S. wants to pay for something, it prints more money after its spent all the tax revenue it’s collected. That is how the government is able to fund these billion dollar projects.
When banks give loans, it creates money in its balance sheets thanks to the use of fractional reserve banking, which allows the bank to loan out 90% of all money that is deposited. (i.e., it can loan out $9 for every $10 it has in its vaults) This is where credit creation comes into play.
Under An Obama Economics Plan, Inflation Will Increase
Obama’s plans for the United States include a dramatic increase in spending. This includes increases in entitlement programs like Social Security, Medicare, Medicade, Welfare, and even nationalized healthcare. He also has many investment plans which require the government to shell out even more money to try and “stimulate the economy.”
To see how an Obama Administration would lead the country into a time of hyperinflation, you need to look no further than congressman Barney Frank, a Democrat from Massachusetts who is chairman of the House Financial Services Committee - which oversees the entire financial services industry, including the securities, insurance, banking, and housing industries.
You can be sure that under President Barack Obama, Congressman Frank would be free to do exactly what he just described in the video above.
Barack Obama also plans to spend money on new public works projects, and with the help of newly nationalized banks, make credit more available for lower-income people.
You can find a list of some of his spending plans here.
As spending increases, and more currency is created, the U.S. dollar’s value will be debased, and your money will be worth less.
This means someone making $40,000 per year may really only have $12,000 per year worth of value from their income.
That also means that the individuals and small businesses who make over $250,000 per year won’t really be making $250,000 per year - since their money will be worth less - yet they will still be taxed at a greater level.
As you can see, this “hidden tax” of inflation affects everyone in the United States - especially the low-income workers, who’s meager income is worth even less in the long run.
