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SkyChief
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Inflation Is Just Another Tax
Jul 23rd, 2018 at 5:56pm
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When the Federal Reserve bank increases the money supply, it drives down the value (or purchasing power) of the existing money.

This is inflation.

If the Federal Reserve were eliminated, there would be no more inflation, and the prices of goods and services won't continue to go up and up each quarter.

If it costs $2.89 for a dozen eggs today,  it shold cost $2.89 for a dozen eggs next year.  And in 2020.

Americans are already over-taxed.     Inflation is simply another unnecessary tax.

Ron Paul said "End The Fed".  I agree. We'd be so much better off without it.

There is some buzz that Trump might make changes with managing the Federal Reserve:

https://www.cnbc.com/2018/07/20/trump-poised-to-take-control-of-the-federal-rese...
  
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Jeff
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Re: Inflation Is Just Another Tax
Reply #1 - Jul 24th, 2018 at 6:41pm
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I guess everybody knew that Chief.
  
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SkyChief
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Re: Inflation Is Just Another Tax
Reply #2 - Jul 24th, 2018 at 9:18pm
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Jeff wrote on Jul 24th, 2018 at 6:41pm:
I guess everybody knew that Chief.


I'm betting they didn't.  They're afraid to discuss it because they know so little about it.

Which is wise, actually.   Wink

"Better to remain silent and be thought a fool than to speak and to remove all doubt." - Mark Twain
  
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The Opposition
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Re: Inflation Is Just Another Tax
Reply #3 - Jul 24th, 2018 at 10:54pm
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The question here is whether anyone is forcing you to use dollars.

If you remember, I made this case and it was shot down because inflation, on its own, is just a person choosing to create more of a good there is demand for. If that's gold, then that's gold. If that's dollars, then that's dollars.

In other words, there's no force involved, unless someone is forcing you to use the dollars.
  

This moral relativism of yours is exactly what lets government take this freedom, then that freedom, until we have lost them all.
-SnarkySack
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SkyChief
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Re: Inflation Is Just Another Tax
Reply #4 - Jul 25th, 2018 at 3:13am
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The Opposition wrote on Jul 24th, 2018 at 10:54pm:
The question here is whether anyone is forcing you to use dollars.

If you remember, I made this case and it was shot down because inflation, on its own, is just a person choosing to create more of a good there is demand for. If that's gold, then that's gold. If that's dollars, then that's dollars.

In other words, there's no force involved, unless someone is forcing you to use the dollars.

But here's the rub:

Dollars are infinite.  We can always print as much as we like....

Gold is not infinite.  All we have is what we have...

"A dollar is a receipt for a claim check on an IOU." - Mike Maloney

"We have gold because we can not trust our governments". - Herbert Hoover, 1933

In 1971, President Nixon/Congress desperately needed money to fund the Viet Nam War

Sadly, nobody had it.  The only solution was to print it.

And now you know the rest of the story.
  
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Jeff
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Re: Inflation Is Just Another Tax
Reply #5 - Jul 25th, 2018 at 8:42am
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The Opposition wrote on Jul 24th, 2018 at 10:54pm:
The question here is whether anyone is forcing you to use dollars.

If you remember, I made this case and it was shot down because inflation, on its own, is just a person choosing to create more of a good there is demand for. If that's gold, then that's gold. If that's dollars, then that's dollars.

In other words, there's no force involved, unless someone is forcing you to use the dollars.
Yes, legal tender laws require me to accept dollars as payment. I can loan you $100,000 in gold, and the law says you can pay me back in FRNs.
  
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The Opposition
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Re: Inflation Is Just Another Tax
Reply #6 - Jul 25th, 2018 at 11:36am
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SkyChief wrote on Jul 25th, 2018 at 3:13am:
Gold is not infinite.  All we have is what we have...


My scenario involved King Midas. The idea was that what he was doing was not aggression any more than anyone breeding more horses or building more houses.

My case was that a peasant who bought a horse was not worse off after thousands upon thousands of horses come into the economy because that peasant still has the horse - the use of the horse. A horse can still pull or carry as much as it could yesterday. There's also a natural limit to how many horses you'd produce even if it were almost free to do it; the same with any commodity whose primary use is not as currency.

But the peasant who saved the amount of gold necessary to buy a horse was hurt by Midas's shenanigans. Because gold's primary use is currency, the use the gold had was ruined. The peasant's property was, in effect, destroyed, or at least heavily damaged.

The consensus was tough luck. The peasant should not have invested in gold. No aggression.

Also, the Federal Reserve is an extragovernmental agency. They are not part of the government.

Jeff wrote on Jul 25th, 2018 at 8:42am:
Yes, legal tender laws require me to accept dollars as payment. I can loan you $100,000 in gold, and the law says you can pay me back in FRNs.


Then it's that law that's aggression. It would still be aggression regardless of whether there's inflation or not.
  

This moral relativism of yours is exactly what lets government take this freedom, then that freedom, until we have lost them all.
-SnarkySack
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SicklersDink
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Re: Inflation Is Just Another Tax
Reply #7 - Jul 25th, 2018 at 11:40am
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Jeff wrote on Jul 25th, 2018 at 8:42am:
Yes, legal tender laws require me to accept dollars as payment. I can loan you $100,000 in gold, and the law says you can pay me back in FRNs.


Then you can hide the FRN's under your mattress if you think they will be worth more tomorrow than they are today. Or you can trade them for gold if you think the gold will be worth more tomorrow.

Neither is guaranteed to be a sure thing though. Why do you bother to entertain the Chief's childish nonsense?
  
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SkyChief
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Re: Inflation Is Just Another Tax
Reply #8 - Jul 25th, 2018 at 12:09pm
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The Opposition wrote on Jul 25th, 2018 at 11:36am:
Also, the Federal Reserve is an extragovernmental agency. They are not part of the government.

Another good reason to disband them.
  
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SicklersDink
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Re: Inflation Is Just Another Tax
Reply #9 - Jul 25th, 2018 at 12:22pm
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SkyChief wrote on Jul 25th, 2018 at 12:09pm:
Another good reason to disband them.


Why do you have to ruin a decent discussion by introducing your pie in the sky, impossible ideas. It's not going to hasten the dumping of the fed you know. When you finally accept that you need socially responsible government, the needed adjustments will be made to the fed.

Again you put the cart before the horse. Just like eliminating income tax and then figuring out a good idea to do it?

Kriste Chief, your country is on a course to craxh down around your ears, and you still babble on about pseudo-libertarianism!

If Rand Paul had some balls, this would be a great opportunity to lead the charge of cutting Trump's head off and driving a stake through his heart to ensure he's really finished.
  
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