Hidden Tax Crisis
Go back to Global Inflation Crisis - Sub-zones
1) Hidden? Hidden tax? How so? 2) Inflation. Global Inflation Crisis. Inflation has been termed the 'hidden tax'. Why? 1 – Hidden Tax of Inflation? - 3) Governments tax their people. Governments often desire more money than their taxes and tariffs are providing. How to satisfy this desire for more money? Governments can create currency. 4) As we previously read during Global Inflation Crisis and US Hyperinflation Crisis, what is a potential and typical effect of currency creation? Inflation. 5) If inflation does indeed result from government currency creation, it is because as governments satisfy the desire for more money by creating currency, the money supply grows out of balance causing currency's purchasing power to lower. Government is able to profit from this inflation crisis by purchasing goods and services with the created currency, while the people are losing their purchasing power - reflected by rising prices.
Prices - the United States - 1975-2011 -
6) Suppose government inflates $10k worth of currency into $8k worth of purchasing power. Those who are not directly affiliated with government and the business transactions that involve the government's created currency, lose $2k. In this way, government is able to transfer $2k from the people to itself, analogous to a tax, although this tax is indirect, subtle, often downplayed or disregarded by the mass media or government officials, and not often connected to the government as a type of wealth transfer – this tax is, in a sense, 'hidden'. 2 – Government Wealth Transfer? - 7) Ludwig Heinrich Edler von Mises (pron. Mee-sess) has been a prominent figure in the Austrian School of economics and in advancing free-market economics. One of the main precepts of the Austrian School is to allow the free-market to flow in lieu of highly centralized control and intervention from political and monetary authorities - often referred to as, 'regulation'. Ludwig von Mises is the inspiration for the Ludwig von Mises Institute (US). He is the author of over 20 titles including, The Theory on Money and Credit, On the Manipulation of Money and Credit, and A Critique of Interventionism; and has such names in his circle of influence as Frederic Bastiat, Max Weber, Baron de l'Aune Turgot, Carl Menger, Murry Rothbard, Milton Friedman, Baron P.T. Bauer, Friedrich Hayek, Israel Kirzner, Oskar Lange, Ron Paul, Llewellyn Rockwell, Hans Sennholz, and Joseph Salerno. Mises's influence may have even seeped into the drawing pens of cartoonists – the Disney character Ludwig von Drake, an insatiable aspirant for greater knowledge - could have been partially based on Ludwig von Mises. Mises, a historian, philosopher, and pacifist, and whose institute's motto is drawn from Virgil's Aneid - “Tu Ne Cede Malis”, Do Not Concede to Evil – once said that the root of all evil is not the creation of weapons, but the spirit of conquest, and has more than a few words on the hidden tax of inflation, such as: “Inflation and credit expansion, the preferred methods of present day government openhandedness, do not add anything to the amount of resources available. They make some people more prosperous, but only to the extent that they make others poorer... The advocates of public control cannot do without inflation. They need it in order to finance their policy of reckless spending and of lavishly subsidizing and bribing the voters... One can say without exaggeration that inflation is an indispensable intellectual means of militarism... Inflation is the fiscal complement of statism and arbitrary government. It is a cog in the complex of policies and institutions which gradually lead toward totalitarianism... 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... The assistance of inflation is invoked whenever a government is unwilling to increase taxation or unable to raise a loan; that is the truth of the matter... Inflation can be pursued only so long as the public still does not believe it will continue... Only the belief...maintains the value... But the certain fact about inflation is that, sooner or later, it must come to an end...”
“The best way to destroy the capitalist system is 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.” 8) Whether a portion of the money is hacked by tax or the money itself is shrunk by inflation, the results are comparable – a wealth transfer, administered by government, proceeding to government, and landing ultimately in the banks of the bankers. A hidden tax. Milton Friedman, a free-market luminary, comments, “Inflation is the one form of taxation that can be imposed without legislation.” 3 – Hidden Tax Crisis? - 9) Inflation? Hyperinflation? Hyperinflation crisis? 10) Inflation can be quite sneaky. Slow. Gradual. Soft-spoken. Sly. Poisonous. 11) In the United States, over the past generation, prices have erupted. American seniors can tell of the time when candies, movies, and cars cost one-fiftieth of what these same items cost in the first decade of the 2000s. I can remember stepping into an American theatre a decade ago and exchange a ticket for less than half the amount of money required to take these same step today – the movie ticket price has doubled. 12) Robert Reich, J.D., author of Supercapitalism and Aftershock: The Next Economy and America's Future, a Rhodes Scholar, and former US Secretary of Labor, remarks about inflation and its effect on the US producer and earner: “Median wages of production workers, who comprise 80 percent of the workforce, haven't risen in 30 years, adjusted for inflation.” 13) It seems that hyperbole, exaggeration, and expansion can all be ways to make something appear obvious and thereby more easily identifiable and perceivable. It would follow that inflation, therefore, could become significantly more obvious if it were to exaggerate into hyperinflation. 14) Would it also follow that the people, the mass multitudes of people, would more easily perceive inflation and the fact that government may have been silently siphoning significant sums from the people's financial foundation in order to feed their ever-increasing government desire? 15) How would you respond – react – upon such an epiphany, if indeed it were, for you, a monetary realization of momentous caliber? 4 - Moving Forward - 16) There are people all around the globe who, like The Zimbabwean, which has plastered walls and billboards with hyperinflated Zimi notes, are currently upset with the hidden tax of inflation. 17) Could you imagine what Americans could be seeing in the event of US hyperinflation and its subsequent chain reactions? The United States has, along with most of the world, quite a history with hyperinflation, yet a relatively young experience with hyperinflation of the magnitude and global effect of the hidden tax crisis. How shocking would hidden tax crisis be for America, considering its relative inexperience with such a situation? Hidden tax crisis could be the massive underwater portion of the iceberg, the size of what is taxed directly is already influential. Could the surprise blow into chaos, war, coup, collapse? What would be the scene and experience of global inflation crisis as part of the GFC? What of global hidden tax crisis and the fires revolution that it can kindle? 18) Perhaps most importantly, what are ways to educate, prepare, and profit during of hidden tax crisis? Regarding using industry to curb global inflation crisis, Politician Chester Bliss Bowles has stated, “Production is the only answer to inflation.” 19) With that statement in mind, considering it is in the application alone that returns are realized, a most profitable way to use industry is increasing the stream of passive income as an alternative to earned income - which is the most heavily taxed income - is it not? If you are not quite interested in using passive income as a response to hidden tax crisis, then perhaps you should read this - United States Financial Crisis. On behalf of The Global FC Zone, Crisis to Profit. Roth Sources - 1) http://www.mises.org 2) http://www.wikipedia.org 3) http://www.brainyquote.com 4) Barrons, Roth E. Born to Die: Rising from the Explosion of the Global Financial Time Bomb. I Click here to go Back to the Beginning The GFC Zone Home | Free! GFC Goods
 Most Popular Pages Crisis to Profit | Summary Inside Job | Global Inflation Crisis | GFC Game GFC Chart | Dollar Crisis | US Financial Crisis © Copyright TheGlobalFCzone.com Privacy Policy|Terms of Use |
