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Today is
March 19, 2018
08:54 AM

What causes inflation?
Fraud causes inflation.
Picture a balloon at a birthday party. The blow-hard bully, seeking to boost his booty with the beauties at the party, blows and blows and blows into a balloon until it bursts. His is a micro-demonstration of our national economy. The blow-hard members of Congress are given the Constitutional task of blowing enough money-wind into the national economy to stabilize prices. Instead, they keep blowing beyond the limit of price-parity and they spend new money into circulation that expands the economy.

Then they put out press releases telling the people that an expanding economy is good. Stability is bad. Expansion is good. Why is expansion good? Because expansion puts more newly created money into the hands of Congress. This increases the ability of blow-hard Congress Members to look big, to boost their booty with the beauties at home, as well as helping them impress the professional beauties who service them at their desks in the District of Columbia.

The blow hards know very well what they are doing, and they are intelligent enough to know that the balloon someday will burst. So, with a tiny pin, they have structured a fraudulent leak in the economic balloon. That leak is called the personal income tax. With this structured fraud, lacking Constitutional or other lawful justification, they prolong their fun, increase their ability to blow and blow and blow, all the while knowing that their acts of fraud place unfair and unjust stress upon honest people, causing those of us with integrity often to suffer prison sentences, ripping apart husbands and wives, destroying families and causing countless suicides.

There are two possible solutions to the inflation problem:
1.We have separation of church. We need separation of money-creation and Congress. It can be argued that this has already been done. In 1913 this justified in the minds of the public the creation of the Federal Reserve system. “Keep politics out of money creation,” was the cry back then. But Congress remains the power that authorizes the checks printed by the US Treasury.
2.Find members for Congress who are confident well-balanced service-minded people who are not blow-hard unarmed robbers, as are more than 90 percent of those presently seated in that chamber.

Price increases are not caused by the people who create products we buy. When the balloon of our economy is not at “just right” size, a size making it possible for prices set this year to retain value ten years from now, so those who create goods and services receive a fair return, prices are forced to rise. So long as money remains so easy to create that Congress members are not restrained, this stability is impossible. Only a stern structure based upon gold and silver reserves has the hope of restraining inflation. But history teaches us that even gold and silver stardards were distorted by fraud.

The cause of inflation is the fraud that continues to blow from the spirit of greed pretending to serve us in Congress. Anyone who participates in this fraud by cooperating with the IRS does so either because he is afraid of the bully, or because he wants to enjoy the fun of watching the economic balloon POP, while caring little for the damage done by Congress as we wait for the inevitable explosion.

-- Richard Palmquist
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