If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.... I believe that banking institutions are more dangerous to our liberties than standing armies.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs
Thomas Jefferson
Old TJ got it all wrong.
(That's why he's on just the seldom seen $2 bill, instead of a big one.)
Our problem is that the fed issues the currency (claims about the Federal Reserve notwithstanding).
Inflation is an intended public policy.
Consider.....
- The economic value of the massive federal debt declines in lock step with the value of the dollar.
- As wages & income rise to offset inflation, taxpayers rise into higher brackets, & therefore pay a
higher percentage of income, even if they've not gained buying power.
- When people sell assets, they're taxed on phantom gain, ie, that which is entirely due to needing
more dollars to represent the same economic value as in earlier years.
At 7% inflation, $2 in 10 years would only be worth $1 today.
