Comments on: Monetary Policy Ambiguities http://taxesandbudget-blog.ncpa.org/monetary-policy-ambiguities/ Insights on Taxes, Economic Policy, Federal Budget | NCPA Fri, 12 Mar 2010 17:57:23 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Jack B. McPherson http://taxesandbudget-blog.ncpa.org/monetary-policy-ambiguities/comment-page-1/#comment-10202 Jack B. McPherson Fri, 05 Jun 2009 11:18:28 +0000 http://taxesandbudget-blog.ncpa.org/?p=955#comment-10202 We are on the pathway toward an apocalyptic financial disaster where the entire economy is on the brink of collapse. This will occur when taxation imposes intolerable loads and stresses on the private sector; when the bonded indebtedness of the federal government assumes proportions which exceed its ability to repay its obligations in a balanced and symmetrical manner; and when the prolific printing of money devalues its purchasing power and sets off inflationary spirals which will devastate the private market. The Gross Domestic Product is comprised of the sum total of the wealth produced by the intellectual and physical work of the private citizens as they labor and toil and go about their business within the scope of the free market. In the final analysis, wealth is not based on how much gold is on deposit at Ft. Knox but, rather, it is derived from the Gross Domestic Product which is the bedrock of the economy. It is the sustenance of our families and communities. It is the lifeblood of America. The federal government couldn’t exist without it. We are bearing witness to a free market overwhelmed with oppressive taxation, inordinate government intrusion, and the heavy burden of having to support a socialistic welfare state. If left unchecked, this will reach a degree where private business interests will lose the incentive to produce wealth which is the bedrock of the economy. At that point, the politicians and bureaucrats will become panic stricken for the reason that they will then be deprived of their ability to confiscate our private property for their personal use in funding their political aspirations, thereby leaving them with nothing other than their printing presses. Their power will dissipate like fog in the sunshine. Which brings us to the question, at what point will all of this federal spending, deficit borrowing, and printing of money overwhelm the GDP to the point where it becomes dysfunctional and government takeover of the economy takes place reminiscent of the central planning and collectivism of Stalinist Russia, and Maoist China? Everyone must draw their own conclusions when presented with this question. We are on the pathway toward an apocalyptic financial disaster where the entire economy is on the brink of collapse. This will occur when taxation imposes intolerable loads and stresses on the private sector; when the bonded indebtedness of the federal government assumes proportions which exceed its ability to repay its obligations in a balanced and symmetrical manner; and when the prolific printing of money devalues its purchasing power and sets off inflationary spirals which will devastate the private market.

The Gross Domestic Product is comprised of the sum total of the wealth produced by the intellectual and physical work of the private citizens as they labor and toil and go about their business within the scope of the free market. In the final analysis, wealth is not based on how much gold is on deposit at Ft. Knox but, rather, it is derived from the Gross Domestic Product which is the bedrock of the economy. It is the sustenance of our families and communities. It is the lifeblood of America. The federal government couldn’t exist without it.

We are bearing witness to a free market overwhelmed with oppressive taxation, inordinate government intrusion, and the heavy burden of having to support a socialistic welfare state. If left unchecked, this will reach a degree where private business interests will lose the incentive to produce wealth which is the bedrock of the economy. At that point, the politicians and bureaucrats will become panic stricken for the reason that they will then be deprived of their ability to confiscate our private property for their personal use in funding their political aspirations, thereby leaving them with nothing other than their printing presses. Their power will dissipate like fog in the sunshine.

Which brings us to the question, at what point will all of this federal spending, deficit borrowing, and printing of money overwhelm the GDP to the point where it becomes dysfunctional and government takeover of the economy takes place reminiscent of the central planning and collectivism of Stalinist Russia, and Maoist China? Everyone must draw their own conclusions when presented with this question.

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