Inflation is a hidden federal tax

INFLATION
Inflation is: increasing the money supply.
Inflation is a hidden federal tax.








The money supply is increased in two ways; the first way:
• Federal Regulations allow the banks to take in deposits and loan out money.
• When a bank takes in a deposit of $1000 the bank promises that the customer can withdraw the money at any time.
• While maintaining the above promise; Banks are allowed to loan out 90% of amount in deposit, in this example, $900.
• The bank has created $900 out of nothing!

The second way money is created out of nothing:
• The federal government routinely spends more than it takes in; in fiscal year 2010 our government has spent an average of $4.5 billion per day more than it takes in.
• They attempt to borrow the shortfall; what they cannot borrow they create out of nothing.

The federal government’s last balanced budget was in 1957; (no balanced budgets in the Clinton years).

Since 1950 inflation has grown at an average rate of 4% per year. Remember, government creates inflation; it is a 4% per year tax in the form of loss of purchasing power of the dollar.

This "inflation" tax is a most difficult for our poorest families. I believe that the "inflation" tax is the prime cause of homelessness.

I believe that we MUST balance the budget and reduce taxes and regulations. Especially, we MUST remove regulations that prevent people from working.