Inflation
Runaway inflation is a well-known phenomenon. It leads to political and economic chaos of the kind we witnessed in New Orleans. Hopefully we’ll come to our senses and not allow that to happen. But we’re vulnerable, and we have only ourselves to blame. The flawed paper money system in existence since 1971 has allowed for the irresponsible spending of the past thirty years. Without a linkage to gold, Washington politicians and the Federal Reserve have no restraints placed on their power to devalue our money by merely printing more to pay the bills run up by the welfare/warfare state.
The process of inflating our currency to pay for government debt indeed
imposes a tax without legislative authority.
Ron Paul, “The Coming Category 5 Financial Hurricane,” U.S. House of Representatives,
Sept. 15, 2005.