A Quote by John Maynard Keynes
By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.
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Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth.
By this means (fractional reserve banking) government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft.
Government has no wealth, and when a politician promises to give you something for nothing, he must first confiscate that wealth from you -- either by direct taxes, or by the cruelly indirect tax of inflation.
You can only confiscate the wealth that exists at a given moment. You cannot confiscate future wealth - and that future wealth is less likely to be produced when people see that it is going to be confiscated.
Perhaps the most important reason to be skeptical of government inflation numbers is that the government, like a fox campaigning to guard a hen house, has many reasons to be disingenuous. As the world's largest debtor, the Federal Government is inflation's primary beneficiary.
Never forget that no government has wealth of its own to spend. The money has to come from taxation, monetary inflation, or debt expansion that must be paid later. And government's spending choices will always be uneconomic relative to how society would use that wealth. That is to say, the money will be wasted.
Liberals believe government should take people's earnings to give to poor people. Conservatives disagree. They think government should confiscate people's earnings and give them to farmers and insolvent banks. The compelling issue to both conservatives and liberals is not whether it is legitimate for government to confiscate one's property to give to another, the debate is over the disposition of the pillage.
This is not to say that the government should confiscate from the "haves" and bestow upon the "have-nots", beyond the requirements of a compassionate welfare program to provide for those who cannot provide for themselves. Far from it. But it is to say that our duty is to foster a strong, vibrant wealth-producing economy which operates in such a way that new additions to wealth accrue to those who presently have little or no ownership stake in their country.
The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy.
Police and firefighters are great, but they don't create wealth. They protect it. That's crucial. Teaching is a wonderful profession. Teachers help educate people to become good citizens so that citizens can then go create wealth. But they don't create the wealth themselves.
A government that can take all and can seize all, a government that doesn't trust its citizens, a government that says it's their way or the highway... that's the scary part.
Much of American wealth is an illusion which is being secretly gnawed away and much of it will be completely wiped out in the near future....So what is the rest of your future? A grisly list of unpleasant events -- exploding inflation, price controls, erosion of your savings (eventually to nothing), a collapse of private as well as government pension programs, and eventually an international monetary holocaust which will sweep all paper currencies down the drain and turn the world upside down.
We need to make clear the federal government does not have authority to indefinitely detain U.S. citizens without due process or, for that matter, to use lethal force on U.S. citizens on U.S. soil if they don't pose imminent threats.
When will the left learn that if you confiscate wealth it doesn't create more of it.
What you do is as important as anything government does. I ask you to seek a common good beyond your comfort; to defend needed reforms against easy attacks; to serve your nation, beginning with your neighbor. I ask you to be citizens: citizens, not spectators; citizens, not subjects; responsible citizens, building communities of service and a nation of character.
Inflation is probably the most important single factor in that vicious circle wherein one kind of government action makes more and more government control necessary. For this reason all those who wish to stop the drift toward increasing government control should concentrate their effort on monetary policy.
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