It Usually Begins With Theft

Want to be right most of the time, with little effort, and with hardly even thinking about it? Just attribute each and every problem you perceive with government to: theft. I can’t, offhand, think of a situation where you wouldn’t be fundamentally correct.

Billy Beck demonstrates how everyone is wrong about one problem, "inflation," and if you use my simple principle, above, you’ll be right. You’ll be right, and Alan Greenspan, for instance, will be wrong (Greenspan, of course, does know what "inflation" is, but he long ago sold out his honesty and integrity for the political spotlight).

You really should work through this yourself (here’s some help), but essentially, the rise in prices is an effect of "inflation," not a cause. "Inflation" is the government stealing your labor, as well as a portion of the return on any investments you hold, such as securities, collectibles, real estate — even a portion of depreciating assets you hold. It is, in essence, an additional tax (theft) on virtually everything that has any monetary exchange value. The government does it by printing money that’s not backed by something tangible.

This does not mean that the cause of "inflation" is the lack of some backing for the currency, such as the gold standard. It just means that it’s far easier for the government to "inflate" the currency without it.

Even on the gold and other commodity standards, governments have always found ways to steal via "inflation." Even in ancient times, with gold and silver coins, the state, in minting coins, would gradually increase the amount of alloy in the coins, stealing the gold and silver they were able to keep out. Of course, prices rise in order to adjust to the reduced amount of gold or silver in each unit of coin.

Do you get it, now? If you do, then you know that "inflation" is merely an euphemism for theft (just like "taxes"). Next time you hear talk of taxes and inflation, think: theft and more theft.

1 Comments

  1. Kyle Bennett on October 26, 2005 at 09:09

    I basically agree with you, but theft through inflation applies only to assets held in US dollars (or any other national currency), or those directly tied to such assests (such as other currencies that are on a dollar standard, casino chips, etc.).

    It would be a non-issue except for the laws that make transacting in non-government currencies extraordinarily difficult if not outright banned (try paying your employees in gold). When the US banned private ownership of gold (1933-71, IIRC), this was a far greater theft then the actual inflation, in that it forced people to use a currency from which government could steal quietly and at will, even though the dollar was then still theoretically gold-backed.

    The mere fact of non-objectively valued government money is not a major issue if other alternatives are readily available (such as was the case in the early days of the US, where every state and many private entities had their own currency). It is a commodity just like any other, and everyone has to judge it's value for themselves. The fact that its basis is determined by fiat of a corrupt and theiving government should be given appropriate consideration.

    The various world markets exert a strong influence on this fiat, which is why the likes of Alan Greenspan are needed to preserve the illusions. General prices, exchange rates, and interest rates signal the market's assessment of the value of the currency and its expectation of future value. No fiat, short of forcibly suppressing market mechanisms, can make any currency immune to those pressures.

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