The Inflation Reduction Act Is Not What It Seems to Be - Bitcoin Magazine

The Inflation Reduction Act Is Not What It Seems to Be – Bitcoin Magazine

Every con artist is well aware that the best sorts of falsehoods contain some element of veracity, even if it’s just a grain. This makes it much simpler to maneuver around them. There is, however, a type of deception that belongs to a whole distinct category—one that is significantly more pathological.

This false statement is not simply completely false; rather, it is the precise opposite of the truth.

Contrary to the truth.

From a historical perspective, this is referred regarded as a “big lie.”

In point of fact, Adolf Hitler is the one who first used the term, and he did so inadvertently to describe his own strategy of telling lies so monumental that people would simply acquiesce, unable to grapple with the idea that someone “could have the impudence to distort the truth so infamously.” Adolf Hitler coined the term, and inadvertently described his own strategy of telling lies so monumental that people would simply

The difference is the same as that between a youngster and an adult when they lie:

“I’m sorry, mum, but I ate a cookie—or maybe even two at the most.” However, I have no idea what became of the other contents of the jar. and a delusional fabrication:

“Mom, I can tell you without a shadow of a doubt that it was YOU who devoured the cookies! Not only did I not eat any of them!”

When consistently confronted with anti-truths that are so blatantly clear, decent people are at a loss for what response to have. They appear to be going through the stages of shock. In many situations, a sufficient number of people will eventually merely shrug their shoulders in an expression of resigned acquiescence and move on.

That is all that is required for an untruth to gain traction and spread.

We know they know we know they know we know they know we know they know we know they know we know they know we know they know we know they know we know they know we know they know we know they know we know they are lying, but they still lie,” said Aleksandr Solzhenitsyn.

When it comes to politics, there are a significant number of such untruths, and they are utilized strategically to great purpose, particularly when it comes to fooling the general population into accepting legislation that is detrimental to their interests.

It shouldn’t come as a surprise, but regrettably it does.

In most cases, bills consist of thousands of pages, and almost no one takes the time to really read them; in many cases, this includes the bodies that are responsible for voting.

It’s a running joke that if you want to know what the real contents of a law are, all you have to do is look at the name of the bill and assume the opposite:

In point of fact, the Patriot Act was extremely detrimental to the principles held by the American people.

Students were abandoned by the No Child Left Behind program in favor of a tedious exercise in checking off boxes.

As it turns out, the Cheap Care Act is not affordable for most people.

And just today, the Inflation Reduction Act, which has a rather comical name, was officially signed into law.

Due to the fact that the United States is currently unofficially in a recession and that the midterm elections are not far off, politicians have been falling over themselves in an effort to rush through the next major economic stimulus.

In spite of the fact that they are making every effort to downplay the gravity of the crisis at hand, as seen by the fact that they are praising fabricated employment data and arguing over the criteria for a recession, things on the ground appear to be in a precarious state.

The unfortunate truth is that individuals’ savings rates have dropped to below 5%, which is the lowest level seen since 2008.

This indicates that the typical person is going into a recession without the financial safety net of a savings cushion.

And with that, stage left welcomes in the money printer

The $3.5 trillion Build Back Better bill, which had been put to rest the previous year as a result of rising inflation, was suddenly brought back to life just a month ago.

What a perfect fit!

This time, however, the name of the bill was swiftly altered to the “Inflation Reduction Act,” and the size of the stimulus package was reduced to $740 billion.

In spite of the name of the measure, the unpleasant fact is that it would pour billions of dollars into the economy at a time when inflation is still running at a high rate. Make an educated prediction as to what effect this will have on prices. But who would be so careless as to add gasoline to a blaze that was already out of control?

Central planners in a debt-based fiat economy would, to put it another way. Because the current economy is debt based, the money supply must be boosted. The creation of new debt gives rise to the formation of new money, which is then compounded through interest. Since the year 2020, there has been a greater than fifty percent increase in the availability of U.S. dollars. And the rate of money expansion is merely ratcheting up.

No matter what anyone says, the system has no choice but to take on even more debt in order to pay the cumulative interest that has accrued. If it does not happen, everything will unravel into a debt spiral that snowballs.

To be perfectly clear, this is not an issue with the United States; rather, it is a problem with fiat money. The same thing, except much worse, is occurring in every region of the world.

It is not a coincidence that the ratio of total world debt to GDP is close to 350% and is quickly climbing higher.

Bitcoin, on the other hand, proposes an alternative system; a system that makes no promises other than a fixed inflation timetable as block after block is mined like clockwork. This sharp contrast is brought about by the fact that bitcoin proposes an alternative system.
Bitcoin nested inside of diamond and coals

Image source

There is no capacity in the Bitcoin system for a 730-page bill that will flood the system with newly produced money and drive prices to unachievable heights.

The supply is capped at 21 million, which is an unbreakable rule that functions almost like a natural law. No matter how many lies are told, this fact cannot be changed.

However, because our current fiat system provides a prerequisite for the manufacturing of money, it is inevitable that currency will be issued in some form or another.

Those who are advocating for the Inflation Reduction Act are pleased to be of service in this regard.

A further aspect of this measure is that it will provide the Internal Revenue Service with an allocation of $80 billion in funding over the next ten years, with the primary emphasis being placed on tax enforcement. With an additional 87,000 new agents, this will more than double the current workforce of the Internal Revenue Service (IRS).

This is more staff than are employed by the Department of Defense, the State Department, the FBI, and the Border Patrol combined.

One strategy to combat inflation, albeit a macabre one, would be to drive the average American deeper into poverty by more taxation. But why at this time? For the better part of the last few decades, budgets for the government have not been financed by actual tax receipts.

Inflation, sometimes known as money printing, is instead being used to finance an increasingly significant percentage of the budget.

This is due to two different factors:

  1. When it comes to politics, collecting taxes indirectly (such as through inflation caused by money creation) is a lot less difficult than doing it directly. It’s similar to how the experience of paying for something using a credit card is different from spending cash for the same thing.
  2. As was previously mentioned, the current monetary system is founded on debt and includes an inherent prerequisite for the growth of the money supply.

This has been successful, up until this point.

It’s possible that things will start to fall apart as a result of the inevitable and exponential growth of the debt caused by compound interest. To put it simply, math. This is due to the fact that the destruction of currency is an inevitable consequence of the production of money.

There are rumblings of a return to some form of hard money standard, which would put an end to the fiat currency experiment that has been going on for the past 50 years.

The rate at which several worried central banks are stockpiling gold is picking up, and two countries have, of course, accepted bitcoin as their reserve currency; they won’t be the last to do so either.

It will be far more difficult to run deficits under a hard money standard than it is to simply create additional money, and governments will need to rely heavily on revenue from taxes.

Already, the Wall Street Journal and CBS News have been reporting on a change in conduct on the part of the IRS and how typical taxpayers may be subjected to an increased number of audits.

Taxpayers in lower tax brackets will not be excluded as a result of this. The finding that the Internal Revenue Service (IRS) now mandates reporting of payment transactions that exceed only $600 seems to put more emphasis on this particular topic. Because of this, not only does the Inflation Reduction Act print more money, but it also launches an onslaught of tax audits on the same people it claims to protect.

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