Sunday, September 23, 2007


Chip Joyce posted the following at HBL. I thought it was so interesting that I asked his permission to repost it here.

The US government is committing theft on an historic level and all of us who get paid in dollars are the victims.

* The Canadian Dollar is .9999:1, highest relative value in 31 yrs

* The Euro is 1.4:1, the highest relative value in history

* The British Pound is 2.014:1, right around the highest relative value in history

At this point HB noted that the Pound is at a high in recent history; long ago it was much higher.

* Gold is $730/oz, the highest price since 1980

* Crude oil is $82.51, the highest on record

If you have dollars, you are getting ripped off on a level you probably haven't yet realized. Inflation--and this is serious inflation--does not at first uniformly affect the economy. Much of it depends on where the government creates credit and pumps counterfeit money ( i.e. paper money) into the economy. In my judgment things are much worse than they appear to most people right now.

Roughly 30% of your income and wealth has been stolen from you since 2001, and the trend continues. While Bush advertises his tax cuts, his inflationist policy is taxing us to death, in a sneaky way.

Remember, inflation is a hidden tax. What's worse, politicians blame the price rise of such products as gasoline on greedy corporations. Statists dishonestly use the rising prices that the state causes to argue for more state intervention in the economy!

So now, on top of all the other damage Bush's "compassionate conservatism" has done to the economy, we can add rising inflation.

You can read more about inflation in this post, The Worst American President in History.

1 comment:

softwareNerd said...

No doubt the US government is guilty of inflation. However, the comparisons against the Canadian dollar and Euro seem to carry the implication that those governments inflated less than the US did. If there's such an implication, it needs to be demonstrated by something more than the exchange rates.

If inflation means an increase in money-supply, there does not seem to have been obvious relative profligacy in the U.S., as compared to Canada / ECB. Perhaps there has been, but it's not obvious from data like the money-supply growth. Therefore, more explanation is required.