A Journal (Wall Street) column on November 13th, by Mary Anastasia O’Grady, deals with Argentina and the upcoming runoff of two presidential candidates. It’s that close between a candidate who wants to return to their Constitution, and another who is a socialist, similar to today’s Democrats. I’m just going to quote the first two paragraphs, because here in America, similar votes take place, believe it or not.
“When an unsustainable welfare state crumbles under its own weight, the population may not realize it’s being buried alive. Argentina is flirting with this fate as it heads to a runoff presidential election on November 19th. The vote comes amid inflation expected to end the year at an annual rate of 180%. The economy is in recession and 40% of the population lives below the poverty line. Nevertheless, the polls have the election neck and neck.”
Sound familiar? In our last election, it was Donald Trump against Joe Biden, and before that, it was Donald Trump against Hillary Clinton, and the chain goes back almost to our founding, with more or less differences between candidates, but the winner and his party, always caused inflation. Most of the elections were ‘neck and neck,’ but why? In all nations throughout history, it has been the same. In Roman times, the rulers clipped the silver coins to make them have less silver in them, and made them smaller. In America, the last silver coinage was produced in 1964, 59 years ago.
Argentina’s inflation is caused by the same ours, and the definition of inflation is, “An increase in the money supply,” as I have been noting for many decades, as have all dictionaries. I expect that Argentina’s 180% is the result of decades of deficits, and probably decades of socialist presidents.
The dollar has lost 90% of its value or purchasing power since 1964, when a gallon of gas was a quarter, the minimum wage was $1.15, a new Ford Mustang was $2320, and two cans of coke were 27 cents. One may say that wars have caused nations to fail, and defeat in a war has many times killed millions, but the cost of wars, or inflation caused by them, has destroyed currencies. WW II, reduced our dollar’s value by 50%, in just four years, and Korea, and Vietnam, did the same, only less. Welfare and millions of handouts, plus wars, have killed our dollar.
Neither you nor I, have increased the money supply, but like all other failed nations, the politicians did it without the consent of the citizens. Donald Trump increased the money supply, just as has Joe Biden, as did Abe Lincoln, Harry Truman, and Franklin Roosevelt. They all have, and it is obviously a hidden tax, levied on 100% of the population, not just the rich. You have to pay it. There is no way to avoid it.
Why are elections close? Lack of basic economic sense, and maybe even habit. No matter who wins, neither will not stop inflation, so what’s the difference? The people who know economics 101, will almost always be Republicans though, and that includes me and readers of this screed.
Since inflation is unavoidable, and historically un-stoppable, storing dollars under a mattress, storing them in a vault, a safe deposit box, or in a savings account, solves nothing. You have to pay the inflation taxes, and they require no forms to fill out, or deducting inflation from your income taxes either. We’re all stuck. Just store your ever decreasing value dollars in gold and silver. From us, of course!
Complaints at: don@coloradogold.com or 970-249-4646