INFLATION TAX & EXPANTIONARY MONETARY POLICY:

California, United States 

"An economy based on borrowing and consumption instead of saving and production." - Peter Schiff

An inflation tax is the economic disadvantage suffered by holders of cash and cash equivalents in one denomination of currency due to the effects of Expansionary monetary policy, which acts as a hidden tax that subtracts value from those assets.

When governments print money to purchase goods and serves, they get the full buying power of those dollars at the expense of reducing the value of dollars held by the general public. Once the additional dollars are used in the market to purchase goods, there is an increase in the supply of currency available without a corresponding change in the level of available goods and services to purchase. In other words, if there are more dollars chasing around the same level of goods, it’ll effectively take more of those dollars to purchase the same level of goods prior to the expansion of currency. The most important thing to note here is that the money supply doesn’t increase till the government actually spends those dollars on goods and services. This implies that the government is provided the full buying power of the newly printed currency when the dollars are spent.

The government will consolidate wealth through devaluation of money until people own and can buy nothing. Once the government owns all physical commodities and property they will charge money for physical existence, which, the only way for people to pay - is by working as slave labour to produce weapons and to fight as conscripts, to wage war on peoples who refuse to work, or attempt to break away from such policies.

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. - Alan Greenspan

Through clever and constant application of propaganda, people can be made to see paradise as hell, and also the other way round, to consider the most wretched sort of life as paradise. - Chancellor Adolf Hitler

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