Once again, I had dinner with George. George is someone who has traveled a great deal, reads a great deal, and studies the present situation in America. He, like me, is flabbergasted by the ability of the central government to lie with a straight face- day after day.
He started with the example of gasoline prices. This is one cost that affects 95 percent of the population even if they only drive to church, or the store. From Spring up until the National Election, prices at the pump fell weekly. This, of course, was supposed to be an example of how Washington was helping the “working poor, and middle class.” Starting the day after the election, prices have shot up, and will continue to do so.
With a last minute deal, the “financial cliff” was “averted.” Of course, when you figure your income tax, and find out that the SSI- social security tax is up, and comes out of your pay check, you might not think that the deal was too good for people who work for a living.
Many people have invested in stocks and bonds through the years to pay for retirement- the amount of taxation on these incomes is almost tripled. Tax break? Get real. Talk turned to money. Once again, you cannot spend money you do not have. FDR’s example of a garden hose will fit- you cannot continue to get water out of it if you don’t put water in.
Let’s turn back the clock to the Revolutionary War. Congress printed paper money to finance the war. Soon people would not take it at face value, or by 1790 at any value. Congress was forced to use “specie,” or silver and gold. Martha Washington donated her family silver to be melted down into coins to pay the troops. Finally, with the issuance of “hard currency” the situation settled.
Then came the Civil War. Again, the government used paper currency. It was so hated that it was called “shin plasters.” They even issued paper dimes, quarters, and half dollars. After the war, these paper dollars and coins were withdrawn. It wasn’t until 1876 that they dared to print paper dollars. They put Martha Washington’s picture on them to remind people of her gift during the Revolution.
In the 1890s, a presidential campaign was based on whether to issue gold, or silver coinage.
Here we are, over a century later. Our paper money is inflating at a great rate, and all the government can do is borrow more. No-one will buy our notes any more. Even China will not. Who buys the paper to increase the debt? The Federal Reserve, which means that we owe ourselves. We have mortgaged our bank accounts, our property, -everything to keep issuing paper. It will end- hopefully without a bang.
By David Creekmore