In the year 2010 there was an outcry based on the profligate spending of the Obama administration. Many of the American people recognized that it is impossible to spend money that one does not possess. Many Americans, who have their own family economies, recognized that their spending must be limited by their ability to earn. This limitation can be temporarily overcome by borrowing, but that borrowed money must be repaid, and often, at a cost, (called interest.)
The Tea Party revolution rose to confront this impending danger to our American economy. This revolution was not established by an academic force. It was not the result of an elite group of economists sounding the alarm, it was the result of a large number of Americans, alarmed that their nations economy was being imperiled by the irresponsible money creation, and spending by the FED, and our elected officials.
This movement grew, as more, and more citizens realized the danger, and joined efforts to reject the present financial path of those at the reigns of the American economy. The effectiveness of this movement uprooted many established politicians responsible for this economic disaster.
“Tea Party Republicans,” were elected all over our nation, promising to rectify this dangerous situation. Some of those in this group were either wolves in sheep’s clothing, or once elected, they were enticed to abandon their goals in favor of the receipt of material gain, and political power. Some of these imposters have since been removed from office, though some remain, and with the Democrats at the leadership of both the Presidency, and both houses of Congress, all of the stops have been pulled out.
There is an article entitled, “Almost a fifth of ALL US dollars were created this year,” dated 10/8/2020, https://www.cityam.com/almost-a-fifth-of-all-us-dollars-were-created-this-year/
I don’t know if all of the details of this article are correct, but in general the assertion in the title is very close to accurate. Let’s think about this for a moment, this is saying that 20% of all American currency that existed from the year 1787, till 10/8/2020 was created in the first ten months of 2020. If you don’t find this alarming, your logic is corrupted.
We are talking about a mathematical equation. There are no gray areas, math works with scientific precision. The principals of math can be obscured, but they cannot be altered.
We are bombarded with formulas of “inflation.” We are told that, “too much money, chasing to few goods,” is the problem with, and the definition of inflation. I say that this is a smoke screen. If this is the definition of inflation, it is not the TRUE PROBLEM, it is only one of the offshoots, and byproducts of the real problem.
The expansion of currency, in and of itself, is the real problem. It is the THEFT OF YOUR WEALTH, BY YOUR GOVERNMENT!
If indeed 20% of all American currency had been created in the first ten months of 2020, then each, and every American dollar in circulation, at the time of this article, had been devalued by at least 20%. That means that every dollar that you earned in the year 2020, bought 20% less on Oct 8th, than it did on Jan 1st. THIS IS CALLED MATH!
Keep in mind that 2020 is not the apex of this problem, our present administration has made this ridiculous financial situation many times worse. Where are the “Tea Party” activists? Have many of them become like the frogs in the water, with a flame under the pot.
Like the ten virgins of the parable in Matthew, chapter 25, there will be a moment when the bride groom arrives. There will be a moment when debts are repaid. Will we be waiting for the “wisdom” of intellectual economists to explain why what we thought would be, just cannot be? Will we be responsible, understanding math, and acting accordingly, or will we be expecting to “hit the jackpot?”
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(These additional thoughts were added after the original essay was posted.)
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Let me be clear, I am not a mathematician, and I am no genius. This may be a blessing, as I am not compelled by an intelligence motivated tendency to get into the numbers. The numbers are not significant. Paying attention to the numbers is like ignoring the forest, preferring to focus attention on the trees.
I am smart enough to understand the basics of math. Fractions are a fundamental part of math. I know beyond a doubt that EVERY TIME you increase the denominator of a fraction, you decrease the value of the numerator in that fraction, EVERY SINGLE TIME. This is a FACT. There is no ambiguity. There can be no mitigating circumstances that change this reality. Every time a denominator is increased, (for example, x/2 is changed to x/4,) the value of the numerator is diminished. It doesn’t matter what the numerator is, its value is diminished. If 1/2 becomes 1/4, (One half, becomes one fourth.) As everyone knows, one fourth is half the value of one half. This is true every time, no exceptions. Two fourths are half the value of two halves, and so on.
When the number of dollars in circulation is increased, like with our fraction, the value of each, and every dollar, those preexisting, as well as those that were added, is diminished mathematically. It’s not guess work, it is mathematically exact, with scientific precision. We do ourselves a disservice if we ignore this fact, and we allow for the theft of trillions of dollars, (at this point.)
In many cases, we are talking about wealth that has not even been created, and will never be compensated for.
God bless you, Dave