QE is an Illegal Tax

The federal government raises revenue three ways:

1) Direct taxation

2) Borrowing (selling Treasury Notes)- a deferred tax

3) Printing Federal Reserve Notes - a hidden tax.

If the Federal Reserve prints more notes than necessary, it devalues the currency. This is a tax on all who hold the currency. It is a regressive tax because it hurts the poor and the elderly on fixed incomes the most. By law all taxation legislation must begin in the House of Representatives. What the Fed is doing is illegal!

With a gold standard, it is difficult to devalue the currency. To print more "money" you must have more gold to back it. This is why Progressives created the central bank - and the income tax on the "rich" - and removed the gold standard.