Hello, I'm Herb Peters. I'm running for Congress...
	...and I would appreciate your vote in the June 26th special election for California's 37th Congressional District.

Are you concerned about the Skyrocketing Cost of Living and Our Government’s Reckless Spending?

GOVERNMENT ACCOUNTING and INFLATION

Government accounting of the debt was pretty good until 1935 when the Social Security System was started. The Social Security System took money from the worker who paid into the US treasury – the government received and immediately spent the money. There was never money in the SS trust fund – there was no money in the US Treasury saved for your future.

Some will respond that the government is investing your money in the economy for our future. This is a valid argument – except – if this idea was working the federal debt would reduce.

The debt is increasing – and the money is becoming worth less virtually every day!

The admitted debt does not include the money promised to be paid in the future. This is true for federal government pensions, for Social Security and for Medicare. This is why we must distinguish between the admitted debt and the real debt.

The government admits a debt of about $8.8 trillion (per person; 29,000). As already stated this does not include promised payments such as social security. Another factor is the deficit. The day of this writing the daily deficit was $1.28 billion. See the National Debt clock here.

Each day the government spends $1.28 billion, they borrow (or attempt to borrow) 80% of the $1.28 billion. The remaining 20% ($256,000,000) is created out of nothing. Anytime money is created out of nothing it causes inflation. It makes the money weaker. A descent equivalent is to add water to Kool-Aid. Add water – the Kool-Aid gets weaker.

Because the money is weaker it buys less; the price of that apartment goes up. The cost of a car goes up. The cost of a house goes up. THUS the SKYROCKETING Cost of Living.

Caution: One of the truths of supply and demand – the price goes up when the demand goes up. Not all cost increases are caused by the money supply.

I'm concerned and I'm asking for your help to make a difference!

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