Category Archives: National Debt

why Inflation is high - devaluation of the dollar

Why Inflation Is at a Three-Decade High

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According to The Epoch Times, “President Joe Biden says he’s directed the National Economic Council to focus on reducing energy costs for U.S. consumers following a Department of Labor report suggesting that inflation hit a three-decade high in October.
 
Today’s report shows an increase over last month. Inflation hurts Americans pocketbooks [sic], and reversing this trend is a top priority for me,” Biden said in a statement on Nov. 10. “The largest share of the increase in prices in this report is due to rising energy costs.”
 
The president said he directed his top economic aides to attempt to “further reduce these costs,” regarding energy prices. He also asked the Federal Trade Commission to deal with “market manipulation or price gouging in this sector.” (The Epoch Times)

What’s Causing the Record Inflation?

Why is inflation at a three-decade high? You can go around trying to patch the symptoms but the root cause is GOVERNMENT POLICIES of dumping money into the economy. The more dollars they dump in the economy, the less the dollar is worth and the more dollars it takes to pay for anything.
 
It’s showing up in energy, food, commodities, and it’s just going to keep increasing because they are NOT addressing the ROOT cause. In fact, they are fueling the root cause by dumping trillions of dollars onto the fire. It’s not “price gouging” … that’s a strawman enemy… it’s the fact that the dollar just is NOT worth what it used to be.
 
I really really wish everyone was required to take a basic economics class that was explained well. Maybe then people would understand that THERE IS NO FREE LUNCH… NO FREE MONEY… NO FREE ANYTHING. There is always a price attached. Inflation is the most common one.

Featured Image Copyright: SERSOL / BigStockPhoto.com

US National Debt Graph over lifetime of the nation.

Episode 18 – Why Is the U.S. National Debt So High?

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Why is the U.S. National Debt so high and what can be done about it? This episode of Front Porch Sense explains why our national debt is out of control and what needs to happen to stop the runaway train. The solution will require repealing the 16th and 17th amendments, reverting to the Founder’s definition of the general welfare clause, and the individuals of our nation learning to take personal responsibility for themselves.

Points to Remember

  • The Founders didn’t want the Federal government to have direct control over the people. There was no power to directly tax individuals because the Founders knew that the power to tax is the power to control and even destroy.
  • Originally Federal revenues came primarily from excise taxes and tariffs. If a law passed that exceeded revenues, the Federal government split the overage up to be paid by the state legislatures based on their state populations. This curbed the growth of the government
  • Since the US Senators were appointed by state legislatures, this helped cap Federal spending and kept the Federal debt from growing crazy like it has now.
  • If a senator voted for appropriations that were excessive and the state had to help pay the bill, the senator wouldn’t get reappointed.
  • Even though a budget originated in the House of Representatives, passing the Senate was a difficult process. It was difficult for the Federal government to pass things that benefited only one state or a region because all the states would have to help pay for it.
  • The 16th Amendment gave the Federal government power to directly tax individuals on an ongoing basis and without restrictions. This mean the Federal government could exercise control on individuals, throw them in jail for not paying taxes, give special favors to some and create problems for others.
  • Now 1/3 or more of state budgets come from the Federal government. This can be used to bribe states into implementing federal policies. For example, “either teach this curriculum to children, or we’ll pull your Federal funding.”
  • The states used to have control over the Federal budget and now they don’t.
  • One of the principle ways the states can rein in excessive and unconstitutional government is by telling the Federal government that they are overstepping their bounds by invoking the 10th Amendment:

    “The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.”

    Now states are too scared to invoke the 10th amendment for fear of angering the Federal government because they are dependent upon Federal funds which can be pulled.
  • The change in the interpretation of the “General Welfare” clause under FDR took us from creating laws that benefit everyone equally to mean providing welfare to people through social programs.

Source Documents

An excellent book that explains how the our nation has changed throughout history is, “The Shadows of the Deep State” by Arthur R. Thompson and available from Western Islands Press.

Original national debt figures are from the U.S. National Treasury and came from an article called “US National Debt By Year.”

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