Non existent VOR

Budget driven by Congressional methods, inflation was
keeping score of the devalued money.

1960, Federal budget was about 88 Billion dollars, 1962
JFK's first budget was 101 Billion dollars and it caused an
outrage for a peace-time budget. JFK proposed 20 billion to
go to moon in ten years, then LBJ had the Great Society
which was just welfare and entitlement spending. Even so,
it was kept in check by the budget policy laws and the
Presidential powers of veto and impoundment.
Inflation is caused by monetary policy and the printing
press. Wages and prices follow the declining value of the
money trying to keep hourly equivalent value.

WWII was financed by bonds at fixed interest rates. Some
government accountant figured out that inflation reduced the
cost to the government of repaying those guaranteed loans
[bonds] which means that only the government profits from
inflation. Banks and companies or individuals are harmed by
the loss of value of their money and debt.

It is so easy to spend money and have nothing to show but
debt a year later. College kids buy pizza and beer with a
Visa card, government buys votes with "free" medical care
and food. Rather than building and then maintaining the
roads and bridges, the government buys more votes with some
"new" programs.

I would like to see spending follow the Constitutional
priorities, military and defense first, but that will not
happen, too may special interests seeking government money
for their private projects [stadiums come to mind] rather
than the essential services that only a government can
provide [defense of the nation].


--
James H. Macklin
ATP,CFI,A&P

--
The people think the Constitution protects their rights;
But government sees it as an obstacle to be overcome.
some support
http://www.usdoj.gov/olc/secondamendment2.htm
See http://www.fija.org/ more about your rights and duties.


"Ron Rosenfeld" wrote in message
...
| On Sun, 2 Apr 2006 08:03:30 -0500, "Jim Macklin"
| wrote:
|
| Look at the books that have graphs of the Federal debt
and
| note that the debt was level from the end of WWII to the
| Viet Nam war, with just spikes, but after Watergate the
| budget, debt and spending went nearly straight up.
|
| As did the Consumer Price Index. So was inflation driving
the budget and
| debt, or was it the other way around?
|
|
| Ron (EPM) (N5843Q, Mooney M20E) (CP, ASEL, ASES, IA)