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Inflation/High Gas Prices:
- Yes to Strong U.S. Dollar
- Yes to Reduced Spending
- Yes to Balanced Budget
- Yes to Increased Interest Rates
- No to Increased Money Supply
- No to Ballooning Government Debt
- No to Pork Projects
- No to Wall Street Bailouts
Each day, the value of the dollars you have is decreasing as the U.S. dollar continues to devalue.
Gas prices in our country are at an all-time high. Our partisan leaders in Congress are blaming the lack of drilling and refining in the U.S., speculators, environmentalists, OPEC, the oil companies, and supply and demand forces for our high prices. These factors do have an effect on the price of gasoline, however, it is the supply and demand for U.S. dollars that is the real driver of our pain at the pump.
Due to our government's reckless spending habits and the irresponsible actions of our Federal Reserve, the supply of U.S. dollars has increased dramatically (16% this year alone). Inflating the money supply, by simply printing more, is the easiest way for our government to finance its out-of-control spending. Basic economics tells us that the more money there is, the less valuable it becomes. The less valuable it is, the more you have to spend to purchase goods and services, such as gas.
As we continue to print more money, the demand for our dollars is decreasing around the world as more and more countries reduce their dollar-based investments because of the dollar's rapidly declining value. At 16% monetary inflation, the supply of dollars doubles every four and one-half years.
By lowering interest rates to unsustainable levels, the Federal Reserve created excess liquidity which resulted in a housing bubble and a finance/credit bubble. Adding insult to injury, the Federal Reserve then decided to rescue the Wall Street bankers by monetizing hundreds of billions of dollars worth of their bad debt putting further pressure on the value of our dollar, in effect socializing losses at the expense of the U.S. taxpayer.
Our politicians are addicted to overspending and they don't want us to know how much their actions are hurting our economy. They tell us that inflation is actually low IF you exclude food, energy, housing, healthcare, and anything else that you might buy, but can you exclude these items from your everyday life?
Our government's continued excess spending (on Iraq, various entitlement programs, and a multitude of pork projects) is fiscally irresponsible and is the main cause for inflation and our declining standard of living. Our country is spending more than it can tax or borrow, and is relying on the Treasury to make up the difference by printing more money. It is time we take back our country from the irresponsible politicians and bankers who are running us financially into the ground. Neither the Democrats, nor the Republicans, are addressing this issue, so effective solutions are not being discussed. Congress will continue to spend until we make our views clear at the ballot box.
To lower inflation, we must raise the value of our dollar. A strong dollar means a strong economy. A strong dollar also means lower gas prices. We can accomplish this by cutting our federal spending and instructing our Federal Reserve to raise interest rates. The Federal Reserve must also stop recklessly increasing our money supply which, in turn, makes each of our dollars worth less and everything we buy cost more. The Federal Reserve is a private bank, run by unelected officials, who should be required to act in the best interests of the people.
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