Monday, July 9, 2007

Our Nation's Tax on the Poor

My husband calls it "The Great Enabler", and prays everyday for it's destruction. Let's face it folks, our country is broke, and we literally cannot afford to wage war all over the planet, when our borders at home remain unprotected. The American people are taxed, of course, but it is not near enough money to finance the money-hungry monster which is war. So we borrow trillions of dollars from China. However, since we have debts which require huge sums just to pay the interest (does anyone see the snowball?), it is still not enough.

Hence, the Great Enabler. It is the Federal Reserve, and it allows our government to continue on, unhindered (for now) by the consequences of unsound monetary policies. Here's how it works: The government issues bonds. The Federal Reserve buys them with the money they have printed. Congress pays interest on the bond back to the Federal Reserve for money they didn't have in the first place. The banks also lend printed money to the American people who pay huge sums of interest back to the banking industry. This is why almost anyone today can borrow money, even when they have very lousy credit. Banks are willing to take chances because the money was "free".

Now, here is where the poor-tax begins to make sense. When the money is first circulated, it's value is inflated by the market's current money supply, giving a huge advantage to the government and the banking industry. But by the time that money trickles down to the average American, the market reflects an increased money supply. This makes our dollars worth less (not worthless, mind you, at least not yet), and therefore reduces our purchasing power.

This may not seem like much to those who have some margin in their budget, but to those who don't have much to begin with, it really hurts! The poor people of America are the hardest hit by the unsound monetary policies in Washington right now. It's not big business, though that certainly plays a role. I think it's time for the American people to wake up, and take an interest in putting people into government who will make changes that will truly help our people.

Right now, there are very few politicians who have this understanding. Ron Paul teaches about it continually, and I am extremely impressed with his ability to hold his own in any situation. Last night I looked over at Nathan after watching his interview with Stephanopolis, and it just clicked with me.

Ron Paul has a clear conscience. He will go on any show and speak forth these truths (and a host of others) because he has nothing to hide. He has walked his political career with integrity, he understands the economy, he understands history and wants to restore this great Republic.

Lord, help him.


1 comment:

  1. Thanks for sharing your thoughts! Wonderfully stated!

    ReplyDelete