Mercy! Mercy! That Dang Nabed PERCY!

Infaltion, the Invisible Taxation

Inflation

Weight today: plus .2

Spelling Index: 1

Around the start of the month I will take a weight measure and that will be the “baseline” for the month. A plus is bad… a minus is good. The spelling index is how many misspelled words I had.

On Fox, Neil Cavuto asked one of the “Titans” of Wall Street today if he though gold was a “Bubble.”

The sage replied, “ For it to be a bubble, investors have to believe it’s a commodity…that is a good or service…. I don’t see gold as a commodity… I see it as a currency.”

Is anybody out there listening? Does any of this sound familiar?

Yesterday I asked my financial advisor if he considered gold a commodity. He said that he did…. That anytime there was a sharp rise in a commodity it was being driven by speculators and what goes up must certainly come down. He believes that gold is a bubble that will pop.

I told him politely that he was incorrect. I explained that one day the world woke up and the dollar no longer defined gold… gold, defined the dollar. Soooooo, you might be thinking? Who cares what people think? The answer is that perceptions in a global market are hugely important.

What is happening is that a growing number of investors no longer trust the United States to slow down the printing presses. As they perceive it, this perception grows and nothing is done to correct it, more and more money will be converted to gold which is essentially the new international currency. In the future all currencies will be pegged to gold. It is spiking now because investors are realizing the dollar isn’t worth what it’s cracked up to be. The world no longer trusts the United States Government. This is because we have gone overboard on printing currency and if there is a bubble out there it’s the value of the dollar. It’s currently over valued and the consequences of our fiscal policy, our President’s world view, the apathy of the Congress and the ambivalence of the Federal Reserve have set us on a course for which the reckoning is coming due.

Soon, eliminating a couple of onerous statistics will no longer conceal how inflated the dollar has actually become. Juggling or just ignoring a growing number of worrisome criteria will not work forever.

The full effects of the unbridled printing of money have yet to be felt but they cannot be delayed indefinitely… Inflation devalues. First a persons savings, next their purchasing power and finally everything they own. My home was devalued by nine percent this year. The government essentially taxed me nine percent to have the money to spend on other “important” things. This is after they floated three trillion in bonds to cover the gap between taxes and revenues.

Regardless of the promises you hear from political leaders your taxes have gone up about ten percent through under reported inflation. Forget that $250,000 nonsense you’ve been hearing. The president promised a redistribution and all Americans are the recipients. Inflation is the most equitable and insidious form of taxation there is.