Statists and other government types hate any form of money they can’t debase. From MN Gordon at economicprism.com:
Did you get a 5.4 percent raise this year?
If you answered no, then your income is being systematically diminished by the federal government’s coordinated policies of dollar debasement.
You see, according to the Bureau of Labor Statistics, consumer prices increased 5.4 percent over the last 12 months. So if your income didn’t increase by a commensurate 5.4 percent, then you are earning less than you were just one year ago.
The fact is price inflation acts as a hidden tax. It’s the government’s underhanded way to increase spending without overtly increasing taxes. Yet the tax still takes place, as the dollars in your biweekly paycheck become worth less and less.
The primary culprit of rising prices is the over issuance of federal reserve notes by the Treasury via deficit spending. This debt based money enters the economy through government transfer payments and other spending programs. There, it competes with the existing stock of money to buy goods and services. Prices rise, accordingly.
Through the first 10 months of Washington’s fiscal year, which ends on September 30, the federal government has run a budget deficit of 2.54 trillion. Of this, $800 billion – or about a third – of this debt was purchased by the Federal Reserve with credit created from this air. If you recall, since July 2020, the Fed has been buying $80 billion of Treasuries per month.
The failure of these dollar debasement policies to support a balanced and healthy economy is grossly evident. Asset prices have been inflating for over a decade. At the same time, wages have generally stagnated. This has resulted in a massive wealth gap.
Still, for the control freak central planners, operating within the monetary constraints of a stable money supply and the fiscal constraints of a balanced budget are out of the question…