A sign of things to come?
The UK, like the US, is attempting to spend an unprecedented amount of money to recover from the Great Recession. This morning, the UK finance minister informed British citizens that taxes will be raised on a host of items in order to fund the government’s titanic deficit spending. Read more
Here’s a short list:
The top income rate will be hiked to 50% next year
Alcohol taxes will increase 2%
Tobacco taxes will rise 2%
Fuel taxes will begin rising in September
As a result of the immense government spending, UK national debt, as a percentage of GDP, will be 59% this year, 68% next year, and 74% in 2011-12.
When a nation accrues ungodly amounts of debt and runs earth shattering budget deficits, it can adopt three measures to make up the difference. Correction, make that four. The first three are standard government procedure. First, it can raise taxes on everything that moves. Second, it can borrow from foreign nations. Third, it can print money out of thin air. The first measure punishes hardworking taxpayers and destroys prosperity. The second measure adds more debt and makes one a slave to foreign influence. The third measure devalues the currency and erodes consumer purchasing power.
Sound familiar? The Federal Government has already raised the cigarette tax and is proposing a number of new taxes in the next couple of years. At least ten states are planning on raising both income and sales taxes as well. China owns $1-$2 trillion of our national debt. And in the last eight years, the US Dollar has lost close to 30% of its value.
Now, what about that fourth measure?
There’s a great scene in the Dark Knight where a gathering of Gotham City crime lords discusses how best to restore their supremacy in a city beginning to clean up its act with Batman’s help. At first, they’re considering some sort of covert operation. The Joker enters the room and calls them out on their cowardice, then one of the criminals asks the Joker, “What do you propose?” The Joker responds, “It’s simple, we kill the Batman”, at which point the group begins laughing at such a simplistic answer. But, you get the feeling they all realize he’s right. They just don’t have the guts to do the obvious.
Our situation is much the same. We don’t need creative government solutions, fiscal gymnastics, or PhD formulas. The solution is actually quite simple. Stop spending so much money!
Read the articles here and here.
jefferson said:
If they don’t take my money, how will they pay for my health care? If they don’t take my money, how will they help my friends in need? If they don’t take my money, how will they save me from myself?
April 22nd, 2009 at 10:32 am
Todd Kading said:
If I spend all of my money and have no inflation, I have become broke and can purchase no more. If I have the power of printing money, and if I have absolute power to back that money with nothing but have no inflation, I am still broke. Even if I give away everything that everyone else has and sacrifice everyone else’s livelihood, but have no inflation, I gain nothing.
Inflation is always patient;
inflation is always kind to debtors;
she is always envious and arrogant with pride.
Inflation is the tool of the conceited,
and her power to devalue is always rude;
Inflation gives me the power to think just of myself
and to be annoyed when told not to inflate.
She always is resentful;
allows constant spending that is a sin,
but always glad to side with lies,
whene’er the lies should win.
She breaks down under everything,
wishes for the worst for those on a fixed income,
there is no limit to her ability to eradicate hope,
and she will never fail to destroy prosperity.
Inflation never fails. Now if there are low taxes, they will be increased. If there are balanced budgets, they will cease. If there is responsible fiscal policy, it will be done away with. For what we tax is incomplete and what we borrow is incomplete. But when what is complete comes, then what is incomplete will be done away with via a ridiculous amount of inflation.
Right now three things remain: taxation, debt, and inflation. But the greatest of these is inflation.
– Prayer of the Inflator
April 22nd, 2009 at 11:25 am
Uneva said:
Another national Tea Party on American soil is lo-o-ong overdue, demanding that the Government allow us, the general public, to return to the independence of free industry that God and our inspired forefathers intended us to have. The trouble is, too many of us have become too used to “Uncle” giving us everything…whether they have it to give, or not. We have forgotten…or are totally unfamiliar with…the habit of hard working and saving for education, medical needs, retirement, etc. We also seem to forget…what the Government gives the Government controls, and can take away. (Gee…that’s how COMMUNISM works!! The only difference is, Communism gives, controls and takes ALL…which is what the Liberal Democrats in our Government would love to do!! Some of them are even brazen enough to talk, in subdued whispers, of the “pros” of Socialism…which is only, in reality, “a hair’s breath away” from Communism.) Some of us should study up on Communism, in detail, and see what we will be headed for, should we continue in our current “Government Give All” trend.
April 22nd, 2009 at 1:59 pm
Clif said:
great one Todd, a collectible.
April 22nd, 2009 at 2:06 pm