Between appropriations by the U.S. Congress in 2020, and newly created money by the Federal Reserve to vacuum up Treasury and mortgage bonds, $6 trillion new U.S. dollars were made out of thin air last year. That was for emergency fiscal stimulus related to Covid alone, not the usual discretionary and non-discretionary spending distributed across the largesse of pork-laden bureaucratic swamp bloat.
President Donald Trump did sign off on $2 trillion of that in spending bills. Still, he negotiated hard with hot-headed Democratic leaders who controlled the Senate under Chuck Schumer (D-NY) and House under Nancy Pelosi (D-CA).
And now that the cat is away, the mouse is out to play. Nancy Pelosi has refused to take up another trillion in bipartisan emergency stimulus infrastructure spending unless Senate Democrats also look at her and House colleagues’ enormous $3.5 trillion spending package to flood U.S. welfare programs with newly created money made out of thin air.
Now I’m no scientist, but you can’t create money out of thin air. What Joe Biden’s Democratic Party is doing under the guise of fighting covid and whipping deflation (big laugh at that) is devaluing the currency to skim off trillions of dollars worth of value from every dollar already in your pocket, your family’s saving’s account, your church’s offering plate, to redistribute to politicians, bureaucrats, lobbyists, corporations, and other welfare queens.
When your dollar buys less when you go to spend it, you see that some of what you had worked for and saved is now gone. It went to Washington’s budget and got handed out to someone else, who in all likelihood already has far more money than you and has the resources to stay perpetually plugged into the federal trough to keep getting their hands on your savings.
This method of confiscation is one of the oldest tricks in the bag, and the parasitic class has loved it ever since the Federal Reserve was formed in 1913 because it’s subtle. For most of that period, the public remained aloof about how finance and banking worked. But it’s not been so fine lately. Inflation is now at a 13-year high at 5.4%. Commodity prices are soaring, with the spot price of natural gas at its highest in seven years.
Joe Biden assures it’s only temporary, then he and Pelosi and Fed Chair Jerome Powell stomp the gas to keep devaluing the dollar even faster, at trillions of dollars a lick. The president has the nerve to lie, or the total economic illiteracy to say that appropriating more money at this rate “will be a force for achieving lower prices for Americans looking ahead.” The science says inflation has steadily increased month after month, every single month of Joe Biden’s term.
Mr. Biden either misunderstands or doesn’t care about what basic economics tells us will happen when the government continues to print so much money. These days, by the way, it doesn’t even print most of it. A nerd employee at the Fed taps the computer and changes the entry in their electronic account to give themselves more money. The dollar has been a digital currency for longer than Bitcoin has existed. One ready-made to skim off your dollar-denominated savings for unscrupulous politicians like Joe Biden.