Inflation=Tax

[P.A. Myers]

When prices rise due to the dilution of the money supply ['quanitative easing'] , it is a Tax . It taxes everyone, young, old, rich, poor, sick, well, everybody. It is a regressive tax and a tax that smothers job growth. If the dollar stops being the money of global trade, Trillions ['T'] of dollars will come home. Your savings, worthless. Your investments, worthless.  Your pay, worthless.
 
Why would a president do this? Control.  Economic collapse leads to political collapse leads to emergency powers that will never go away. Political correctness becomes the law of the land.
 
Top down, bottom up, inside out.
 
                                                                                                            P.A.

[Gary G]

I would add that the government benefits from the money that the Federal Reserve devalues as they and their cronies get to spend the money while it still has some value. It is the people, who the money trickles to last, that are hurt as the money that they have buys less of everything. SO in reality it is a transfer of wealth from ordinary people to the privileged few, the government. This is the cause of another great problem, income inequality.

[Gary G]

Yes, its always a transfer of wealth.  The BRICS nations figured this out and are successfully outwitting the Global Banking Dictatorship located in NYC, London, Rome, Brussels, and Jerusalem....The GBD will try to employ SWIFT tactics against the BRICS nations who are allying with Christian Russia and also China.....this is what happens when the 'owners of the system' basically have larceny/usury in their hearts.   Last recourse will be to instigate a very large and damaging war; but of course warfare is among one of the mopst profitable endeavors of 'civilized' man...
.
..TM7

War is profitable only for a few men. It is destruction of capital wealth. The principal of Bastiat's Broken Window Fallacy applies.   [size=78%]http://www.youtube.com/watch?v=gG3AKoL0vEs[/size]

[mcwoodduck]

Everything I learned in Economics to do to stablize an economy and everthing I leared in world history as how to werck an economy.  This president is doing the later. 
This president is saying we need the things that wreck an economy and lead the nation to collapse or radical change.
The simple things that would grow the economy are forgien to this president.
An increase in taxes simply increases prices.
Increasing in prices adds to inflation
Increase in prices reduces demand by shifting the demand curve to the right.
reductions in demand reduces supply
reduced supply, reduces the work force that further reduces the demand for goods.....
This makes the rich with buying power wealthy as they can afford the goods and can buy the goods as they as a smaller market for the larger items.
Higher prices eliminate the middle class and increase the needy as pay does not keep up with inflation of needed goods like food and shelter.
Increaseing the money supply does nothing really except keep the interest rate low. There really is not enough physical currency in the market to match the electronic wealth of the nation.  And as Money comes home in favor of another currency it will just be taken out of circulation by a responsible fiscal policy.
But I guess that is the rub out President does not have a responsible fiscal policy.
And even if you are in favor of a transfer of wealth and ending the rich in the US it will not help anyone.  You will actuall have less with out the rich to pay for the research and development of many products.
Your cell phone is cheap now because people in the 80's spend $2,000 for a brick phone at 50 to 75 cents a minute to get the foundation down.
Flat screen TVs are 2K because riche people 8 years ago were paying 13K for a TV half the size.

 
 
 

[Buck-Ridge]

I agree govt' caused inflation is a tax. It is even worse than that it is theft of our wealth.

[Gary G]

I agree govt' caused inflation is a tax. It is even worse than that it is theft of our wealth.

All inflation is caused by the government, the Federal Reserve and by fractional reserve banking. It is an increase in money and credit. The result is a rise in the prices of things that people need. The impact is a lower standard of living for everyone except the Washington fat cats and their friends.