Thursday, May 10, 2012

Revenues, the New Name for Taxes

Anyone that has been listening to the mindless banter in Washington has undoubtedly heard the term revenues in the past year. Apparently it is a smaller pill to swallow than taxes.

The hypocritical nature of politics seems to have no floor. Does the American public really think that revenues seems to be easier to cope with than the word taxes? I think not. And, I also think that it sounds like a child trying to get away with a flagrant lie but calling it a "trick."

Revenues in my opinion should be the word of the year. We all know it means taxes, and that politicians are so scared to say the word taxes, they have come up with this ridiculous euphemism.

The entire scenario of revenues comes up when talking about balancing the budget. And lets be frank, unless we stop paying Social Security checks, and stop paying for Medicare, there is no way we are going to balance the budget without new taxes, oops (as Rick Perry would say), I mean revenues.

But in this day and age, we like to live beyond our means and spend other people's money. So increasing the national debt by a trillion or two a year doesn't seem like a big deal anymore.

The answer to all our fiscal problems is simple, but harsh. We need to go back to the gold standard. This may sound like a Ron Paul rant, but if American money was tied to gold it would prohibit us from manipulating currency and spending money like drunken sailors on a privateering ship.

Sure, in the short run we'd have enormous discontent. Washington would have to cut trillions out of their budget. But, those that have diligently saved their entire lives would have the money in their bank accounts worth something again.

My grandmother, bless her soul, has not been an investor in the stock market, or bond market, but she has acquired gold coins over the years for collection purposes.

She has about 10 ounces of solid 99% pure gold coins that are now worth about $16,500. She probably paid less thank $500 for them when she started accumulating them in the 50's, 60's, and 70's. Back when gold was not considered a wise investment. But the devaluation of American currency has seen the price of a solid commodity skyrocket. In turn, her money in the bank has earned a paltry 1% or less a year, while her gold has multiplied by 30 times.

I don't expect America to ever end the Fed, or return to the gold standard, but damn, what a mess this money manipulation has caused.

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