Colman: FIFTY YEARS OF FINANCIAL TREASON

The Federal government is making us a poverty stricken nation.  The largest the national debt, the more we spend without real dollars in the bank, the more items cost.

On Oct. 14, 2021, The Wall Street Journal (print edition) reported that inflation rose by 5.4 percent from 12 months earlier.  The 5.4 percent figure comes from the U.S. Labor Department, which has been criticized for underestimating the true rise in prices.

This 5.4 percent rise means that what cost $100 in September 2020 now costs $105.40.

In plain talk, inflation can be called “financial treason.”

The term “financial treason” is comparable to traditional treason.  In traditional treason, an individual provides aid and comfort to a nation’s enemies.

In financial treason, the federal government is the traitor, taking aid and comfort away from the average citizen and debasing that citizen’s wealth. 

Inflation is taxation without legislation.  With taxation, there can sometimes be a benefit (such as a highway or Medicare).  Inflation brings no benefits.

Not mention is that the Democrats between their infrastructure bill and budget buster bill want to add $5 trillion to the national debt—and take $3 trillion in new taxes from families and the private sector.  Under Carter we had massive inflation—watch Biden break the Carter record, at our expense.

FIFTY YEARS OF FINANCIAL TREASON

By Richard Colman, Exclusive to the California Political News and Views,  10/21/21

Inflation (higher prices) is eating away at the typical American’s income and savings.

On Oct. 14, 2021, The Wall Street Journal (print edition) reported that inflation rose by 5.4 percent from 12 months earlier.  The 5.4 percent figure comes from the U.S. Labor Department, which has been criticized for underestimating the true rise in prices.

This 5.4 percent rise means that what cost $100 in September 2020 now costs $105.40.

In plain talk, inflation can be called “financial treason.”

The term “financial treason” is comparable to traditional treason.  In traditional treason, an individual provides aid and comfort to a nation’s enemies.

In financial treason, the federal government is the traitor, taking aid and comfort away from the average citizen and debasing that citizen’s wealth. 

Inflation is taxation without legislation.  With taxation, there can sometimes be a benefit (such as a highway or Medicare).  Inflation brings no benefits.

Inflation should be examined over a longer time interval than 12 months.  In 1967, an individual could buy gold for $35 an ounce.  As of Oct. 14, 2021, the gold price was $1,791.90 per ounce.

Inflation, in terms of gold, can be expressed another way.  If an individual, in 1967, paid $10,000 for gold, that same amount of gold would be worth $179,191.00 — a gain of 5,019.7 percent — on Oct. 14, 2021.

Because inflation makes holding dollars less and less valuable, Americans have to think about where to put their hard-earned money. 

Generally, that hard-earned money can go into stocks, real estate, or other assets.  However, there is no guarantee that stocks, real estate, or other assets, over time, will always go up.  In fact, the value of assets can go down — sometimes down sharply.

A key turning point regarding inflation came on Aug. 15, 1971, when President Richard Nixon closed the “gold window.”  The gold window refers to the amount of dollars an individual can obtain — from the U.S. Treasury — for giving the treasury an ounce of gold.

Before that 1971 date, an individual could count on getting about $35 for an ounce of gold.  After that 1971 date, gold began to rise in price.

Inflation can have many explanations.  The basic cause of inflation is having too much money chasing too few goods.  Some influential economists claim that the U.S. government’s printing of dollars produces excessive amounts of money.  (Today, the federal government uses a computerized approach, not printing, to create extra money.)

Actually. the Federal Reserve, America’s central bank, has the power to create money.  The Federal Reserve was created in 1913, the same year that the federal income tax became law.

During times of economic downturn, the Federal Reserve is supposed to create more money to keep the economy from collapsing.  Conversely, the Federal Reserve, when times are good, is supposed to curb the creation of money.

Since 1913, the Federal Reserve’s record has not been that good.  From 1929 to 1939, the nation experienced the Great Depression, when work was very hard to find.  From 1971 to the present time, with a few exceptions, the Federal Reserve has presided over a period a massive inflation.

The time may have come to get rid of the Federal Reserve.  Let Congress determine how much money is to be printed.  Congress, unlike members of the Federal Reserve, can be held directly accountable for the nation’s economic performance.  Members of the Federal Reserve are not elected.

If no action is taken, America might find itself in a position where the price of gold goes way beyond the $1,791.90 of Oct. 14, 2021.

America must have discipline with money.  Without economic discipline, the future of the nation is in peril. 

America cannot afford more years of financial treason.

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

Comments

  1. Rico Lagattuta says

    Inflation is much closer to 10.5% than 5.4%. If a product cost $1.00 September 1 and October 1 cost $1.054 , that is a 5.4 % inflation. But we don’t get the Social Security increase until January. In January of the previous year that same item cost $.95. That is a 10.9% increase January to January. But, I did get a 5.9% Social Security Increase. Now I will only be on the hole 4.72%.

  2. The current person and a past person who both occupied the oval office are rushing to Virginia, where the Democrat’s darling, Terry McAuliffe is having a hell of a time dispatching the Republican challenger, to help the hopelessly dead tied McAuliffe somehow win the election for Governor and make everything all rosy again. CNBC’s resident fixtures were discussing what could happen if Virginia fell to the Republicans. These knowledgeable folks seemed to think that if such a stronghold as Virginia fell to the Republicans it could be a Republican landslide come November’s election. I think if I was running for office and heard that Biden and Obama were coming to help me, I would close the border and shoot myself. Even the Democrats are fed up with the Democrats.

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