Wednesday, January 28, 2009

Spending Our Way to Oblivion

Today I heard Glenn Beck using a phrase I found very apt: "spending our way to oblivion". Remember the Wiemar Republic of Germany where to buy a loaf of bread you needed a wheelbarrow full of bills? This picture was taken in 1923 and shows a man using German banknotes as wallpaper - they were that worthless.

That is called inflation and it occurs when the government pumps paper money into the economy without anything to back that paper up. Wikipedia has a decent definition of hyperinflation which is where we're headed if the government doesn't stop printing money!

The main cause of hyperinflation is a massive and rapid increase in the amount of money, which is not supported by growth in the output of goods and services. This results in an imbalance between the supply and demand for the money (including currency and bank deposits), accompanied by a complete loss of confidence in the money, similar to a bank run. Enactment of legal tender laws and price controls to prevent discounting the value of paper money relative to gold, silver, hard currency, or commodities, fails to force acceptance of a paper money which lacks intrinsic value. If the entity responsible for printing a currency promotes excessive money printing, with other factors contributing a reinforcing effect, hyperinflation usually continues. Often the body responsible for printing the currency cannot physically print paper currency faster than the rate at which it is devaluing, thus neutralizing their attempts to stimulate the economy. Wikipedia

It is not the job of government to stimulate us or the economy. Their job is to protect the American homeland and Americans against aggression. The only aggression I see right now is this "stimulus" boondoggle which is an attack on the freedoms of American citizens.

In order to preserve our country we need FREEDOM more specifically economic freedom - not government putting us in manacles with their endless regulations and spending money we don't have.

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