The Inflation Reduction Act

05 Aug

The Inflation Reduction Act

“Inflation Reduction”. Haha.

Since inflation is a deliberate policy of the monetary authorities when someone promises to do something about inflation we always look to see if they are talking about throwing the off-switch.

Are they talking about ending the artificial creation of money and credit by any of its thousands of names:  liquidity operations, Quantitative Easing, stimulating the economy, monetary injections, loosening credit conditions, fine-tuning the economy, repo operations, backstopping depository institutions, monetizing federal debt, and so on.

If they aren’t throwing the off-switch on all the foregoing, they aren’t stopping inflation.  

That’s why we had to laugh when we heard about The Inflation Reduction Act of 2022.  Ha ha ha!  Even the name is funny.  It evokes the names of other ridiculous federal legislation.  Sort of like calling a big tax bill The Universal Prosperity Act. 

How about these:

The Patient Protection and Affordable Care Act 

The Emergency Economic Stabilization Act

Or The USA Patriot Act.  Its real name is the Uniting (and) Strengthening America (by) Providing Appropriate Tools Required (to) Intercept (and) Obstruct Terrorism (PATRIOT) Act.

The Patriot Act doesn’t just torture American civil liberties and opens the doors to the total surveillance state.  It also tortures syntax in its clumsy search for an acronym.  

We’re not the only ones to see the irony.  Ron Paul, who spent years in Congress fighting this kind of nonsense, names it among The Most Inappropriately Named Bills.

Here’s Dr. Paul’s description of what the bill actually does:

The so-called Inflation Reduction Act increases government spending. For example, the bill authorizes spending hundreds of billions of dollars on energy and fighting climate change. Much of this is subsidies for renewable energy — in other words green corporate welfare. Government programs subsidizing certain industries take resources out of the hands of investors and entrepreneurs, who allocate resources in accordance with the wants and needs of consumers, and give the resources to the government, where resources are allocated according to the agendas of politicians and bureaucrats. When government takes resources out of the market, it also disrupts the price system through which entrepreneurs, investors, workers, and consumers discover the true value of goods and services. Thus, “green energy” programs will lead to increased cronyism and waste.

The bill also spends 80 billion dollars on the IRS. Supposedly this will help collect more revenue from “rich tax cheats.” While supporters of increasing the IRS’s ability to harass taxpayers claim their target is the rich, these new powers will actually be used against middle-class taxpayers and small businesses that cannot afford legions of tax accountants and attorneys and thus are likely to simply pay the agency whatever it demands.

Here’s our advice.  Until they quit the cutesy legislation and actually throw the switch and stop inflation, you should take steps to protect yourself with gold and silver.  

Because cutesy bills won’t prevent the US dollar from continuing to waste away.