Sunday, July 4, 2010
Inflation Is A Secret Tax.
Ever wondered what is inflation?
Ever wondered how to stop inflation IMMEDIATELY?
Stop searching. Here is the answer explained within in 1minutes and 30 seconds by Milton Friedman.
Watch it first. Then read on:
Think it through: the more the government prints, the higher the inflation. Say the government prints 20% more money than the economy grows (say: 6%). Inflation: 14%.
The government can now spend 14% more, no budget, no transparency, nothing.
But your money has 14% less value. You just became 14% poorer.
That's why inflation is also called: "a secret tax".
You see, the money in your pocket and your bank account is not yours, It belongs to the government. They can do with it what they want and this includes making it worth less. Your opinion on this is of no value. But you can be assured that our money system has a winner. Which is certainly not you.
This is precisely the reason you should own gold. Gold belongs to you. It is YOURS!
Posted by Troy Ounce at 8:45:00 PM