Last week, I elucidated that the Fed printed the dollars, usually as instructed by Congress, President, or various un-elected bureaucracies, as is required by the Constitution. Do the various state, county, and local bureaucracies, contribute to inflation? The answer, is NO. They have to deal with ever decreasing value dollars, as that’s what they have to use to pay their bills, but state, county, and local governments, have to balance their budgets and deal with the revenues they receive from their citizenry. It’s difficult, but they usually managed to do it. They spend what they take in, and have no printing power of the dollars they use and receive. The federal government hasn’t balanced its budget in decades or more, so they print to pay. Locals and states can’t do that.
To give you a run-down of the difference between revenues the federal government receives, and its spending, go to the “Debt Clock,” which can be found on the internet. The federal spending on 3/23/23, is $6,119,162 trillion, and the revenue is $4,611,563 trillion, or a deficit of $1,413,035 trillion. In other words, by 3rd grade arithmetic, there is $1,507,599 trillion dollars added to the money supply, which creates that much inflation. The Federal Reserve’s head, Mr. Powell, is trying to stop inflation by raising interest rates between banks, but it spills over into ruining the real estate, auto sales, lumber sales, appliance sales, grocery prices, and every single thing we buy with our declining un-backed, paper dollars, which seem to be going ‘the way of all flesh.’ A Fed governor said, they figure banks are strong enough to take all the rate increases. HOW ABOUT US? The media, instantly picks up Powell’s ‘valiant’ efforts to stop inflation, by raising interest rates. No one EVER consults a dictionary about inflation, but echoes Mr. Powell’s absurd statements and actions. And currently, when the Fed bails out banks, this adds to inflation by pouring more dollars into circulation. Some may say, “Hey, those aren’t dollars, but entries into computers.” So what? The effect is the same…more and more dollars in circulation, and more inflation. Their ‘goal’ is 2% inflation. How about none?
INFLATION CAUSED BY INTEREST RATES, IS MICROSCOPIC, COMPARED TO FEDERAL SPENDING. Below, is a small example of Federal bureaucracies, from a column I wrote in May of 2006. These bureaucracies were not voted into existence by us voters, but were implemented by other bureaucracies, Congress or the President, and these bureaucracies, all have many dozens of sub-bureaucracies under them. Remember, the Federal Government, is the largest employer in America, and it is virtually impossible to ever fire a bureaucrat or remove a bureaucracy. Here are a few:
Office of the Director Program Offices.
Office of Research on Women’s Health Issues.
Office of AIDS Research.
Office of Behavioral and Social Sciences Research.
Office of Disease Prevention.
Office of the Director Staff Offices.
Office of Intramural Research.
Office of Extramural Research.
Office of Management/Chief Financial Officer.
Office of Chief Science Policy.
Office of Communications and Public Liaison.
Office of Program Coordination.
Executive Office.
Office of the Ombudsman/Ctr. For Cooperative Resolution NIH Ethics Office.
Immediate Office of the Director.
National Cancer Institute.
National Human Genome Research Institute.
National Heart, Lung and Blood Institute.
National Institute on Aging.
National Institute of Alcohol Abuse and Alcoholism.
National Institute of Allergy and Infectious Diseases.
National Institute of Arthritis and Musculoskeletal and Skin Diseases.
National Institute of Biomedical Imaging and Bioengineering.
National Institute of Child Health and Human Development.
National Institute on Drug Abuse.
National Institute of Dental and Craniofacial Research.
National Institute of Mental Health.
National Institute of Neurological Disorders and Stroke.
National Institute of Nursing Research.
National Library of Medicine.
Center for Biologics Evaluation and Research.
Clinical Center.
Center for Information Technology.
Fogarty International Center.
National on Minority Health and Health Disparities.
National Center for Complementary Medicine.
National Center for Research Resources.
As of May, 2006, there were 487 different agencies and bureaucracies, beginning with “A” for the Administration for Children and Families, and ending with World net Television. How many additions have there been in the 17 years since 2006? Is there any way to stop politicians from buying votes with endless spending, to stay in office? Nonethat I know. Eating at the public trough, has been going on since FDR here at least, and has been on-going for hundreds of years. History always repeats itself, ever since voting for public office was invented. Roman times?
Each of these bureaucracies, is within a larger bureaucracy, and undoubtedly has hundreds of employees. All occupy space, use endless copy machines, computers, telephones, desks, parking privileges, expensive offices, and each employee is part of stupid, reckless, arrogant, continuous, and un-stoppable federal government growth, and therefore inflation. When I was growing up in D.C., there were good and bad neighborhoods. Now, there are no bad ones, as all of them have become fine, there is such a housing shortage, because of endless federal hiring. This is exactly as all previous nations have collapsed, with different currencies, years, and governments. In history, no one has ever been able to stop the inevitable decline and extermination of that nation, and it is impossible to stop it here.
Recently, an Ohio train crash, caused by a frozen bearing on a car, created a mess, but there was no fire. Government and the NTSB decided that it was smart to drain the cars of extremely flammable liquids set it on fire, and you know the rest. Railroads have been having accidents since they were founded in 1830, and have always found the trouble, corrected it, and have operated with an incredible safety record. The NTSB has said it will “Take about two years to formulate the cause,” of the Ohio Norfolk Southern crash, which was instantly obvious. A few years ago in Chicago, a nut case drove his Jeep onto a railroad track, parked it, and stood by to watch what happened, which of course was a horrific crash, which killed several people and caused millions of dollars in damages. Did we need the NTSB and a hoard of bureaucrats rushing onto the scene? Of course not. Local law enforcement instantly did their job.
The Tenth Amendment of our Constitution says: “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.” It isn’t the states, local governments, industry, retailing, or any business causing inflation, Mr. Powell, it’s the wholesale violation of our Constitution by the Federal Government, cohabiting with your Federal Reserve. Any reader of my columns, know how to reach Fox News with this and the previous column?
-Don Stott- don@coloradogold.com