Congress

-By Dan Scott

The wild spending policies of Barack Obama and his allies in Congress give one pause to consider if anyone with a half a brain could not foresee-ably know such deficit spending will not end well for the country. This pattern has played itself out many times in countries such as Zimbabwe. No matter how insular a demagogue is he has to face reality at some point and at least have considered the issue of hyperinflation because his critics warned him about it. Given that liberals like Barack Obama operate under the principle of Equality of Outcome, it has become very clear that such policies are designed to LOWER the living standard of the wealthy via taxes and regulations BUT NOT increase the living standard of the poor by maintaining their cost of living. Or have you not noticed that liberals constantly harp on the issue of income inequality and the widening gap between the richest person and the poorest? What easier way is there to wipe out income inequality but to inflate the dollars in the hands of the poor while making the dollars in the hands of the rich worth less?

Inflation while decreasing the buying power and accumulated wealth of the rich gives the illusion to the poor that their increased wages or subsidies have made them richer while not advancing at all. The initial economic growth with inflation as its base is insidiously deceptive at first since everyone defines “growth” or “increased” economic output in terms of currency usage. The GDP is defined and counted in Dollars. At first the economy seems to be moving again however, what’s really happening is investors are liquidating their cash equivalent positions in a move to harder assets like stocks, land or durable goods. Once inflation takes hold, an inflation psychology develops discouraging saving and investment. The flight from cash is in reality the draining of liquidity preventing the finance system from making loans for future expansion killing off a real recovery such as experienced under President Carter.
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The Inflationary Spiral”