Watch what they do, not what they say. Government only cares about power and that power’s ability to control your money. Everything else is a lie.
Last Monday, the President asked Congress to pass a supplemental spending bill for $82 billion dollars. This is money above and beyond what was authorized in the 2005 budget and the President’s recent 2006 budget proposal.
When this bill passes Congress, and it will; the U.S. Treasury will borrow $82 billion by creating and selling U.S. bonds. Many of the buyers will be foreign central banks who have publicly cautioned the U.S. about their growing reluctance to subsidize U.S. debt. They say our credit is getting shakier by the day.
Whether we admit it or not, the President and Congress are raising taxes. The folks that buy these bonds expect to be repaid. The U.S. government has no income other than what is forcefully taken from its citizens. They could print more money, but that gets back to the shaky credit issue. Most people, foreign central bankers included, do not like loaning money to counterfeiters. They worry about being repaid with a depreciating currency. Dollars are like any other commodity. The more you have the cheaper they become. Everything you exchange them for becomes more expensive.
Supplemental war spending and social security are sometimes called “off the budget” items. They never get included in annual budgets, deficit calculation, deficit reduction, or anything else approaching honest accounting. Honest accounting is what got Enron, Global Crossing, WorldCom, and others in trouble with federal prosecutors. Corporate accounting irregularities were the reason given for Sarbanes-Oxley; which is affectionately known as the Accountants Full Employment Act (AFEA).
Try as I might, my wife refuses to accept my financial rationale. She does not understand how big screen TVs, boats, and motors can be purchased–off the stinking budget! I suppose government finance is just too complicated for sound minds.
Productive Americans and private property are being consumed by government. Government cannot directly raise income taxes without creating a maelstrom. The faster they print money–the less valuable it becomes. They attempt to soften the blow and slow down their inflation by borrowing from the future. We will pay these taxes one way or another. Deceit with sizzle is so easy to swallow.
Their arrogance and utter disregard for private property, prosperity, and our very lives are striking. I am even more amazed by the docile victims.