[FROM A COMMENT I MADE ON ANOTHER BLOG]
Taxes are theft. Despite what the IRS says abut “voluntary”.
In the old days, prior to 1933 FDR gold seizure, the Gooferment had to tax folks to get their gold. After that, the FED just “printed” more dollars. No need to overtly tax anything. Just print more. The FED takes paper dollars out of circulation and puts more in. They used to just put more in than they took out.
This allows the bureaucrats to spend “dollars” that have less value. Without the pain of raising taxes.
Look at the purchasing power of a dollar in 1970 and again in 2000. Depending upon who you believe, even the FED own stats, show the “dollar” has lost 98% of its purchasing power in those decades.
It, of course, hurts the poor – working class – fixed income people worse since they have little option but to spend what they take in.
We’re on our way to a Hyperinflation. The recent — at first hidden and now overtly — purchase of Government Bonds by the FED is an overt “monetizing” of the debt. The Chinese with a guesstimate 6-10 T$ (trillion) dollars are hopping mad. That’s why you see them buying anything in sight. They are unwilling participants in this wild ride. If they start to dump dollars, then everyone will do the same. And, their dollars will swirl the bowl with everyone else.
Some say that the reason our Iraqi buddy Sadam was tumbled was that he wanted to be paid for his oil with gold. He was backing the golden dinar. Not out of religious fervor; that was a good cover. But because he saw his oil being paid for in cheaper and cheaper dollars.
What can the little guy do? Save nickels. Right now they are worth 7¢. Like the pre 1964 silver coins that are worth 20 times their face value, the little guy can save some of his wealth from inflation.
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Reinke Faces Life 