Wednesday, July 15, 2009

Federal Reserve Tax

The biggest tax we pay is the inflation tax. Before the Fed inflation went up and down for over 100 years - staying basically at zero while products improved. Since the Fed, well a much different story:
The only 'green' since the Fed was after WWI and the Great Depression. The Fed needs to go. This chart is also using the government flawed CPI - real inflation being even higher. If I save my money, which has already been taxed, get a really good 5% on it, what do I get at the end of the year? I get a 5% inflation in the real world - which puts me at even - then the government taxes my interest made; now I am behind. Even a very responsible middle class citizen is going to fall behind and the classes will continue to slowly divide.

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