%10.2
(David P.)
Newsgroups: sci.econ - 6 Nov 2009
Inflating the money seriously would generally tax those on
fixed incomes and those with savings accounts and the
like tied to currency values, that is, poor people. I suppose
this would loosen up a certain amount of value, but I can't
see that it would fix the large structural problems caused
by deindustrialization and years and years of inflated
credit. One might also want to recall the results of the
inflation in Germany in the 1920s -- there is no particular
reason to believe that, if the savings and pensions of the
working and middle classes are wiped out, they will take
the blow passively.
There is also the problem of the huge debts owed to
foreigners which must be refinanced from time to time.
If a policy of strong inflation goes into effect, the interest
rates won't be pretty.
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(David P.)
Newsgroups: sci.econ - 7 Nov 2009
Anarcissie wrote
> Inflating the money seriously would generally tax
> those on fixed incomes and those with savings
> accounts and the like tied to currency values,
Yes.
> that is, poor people.
Nope. The only real poor people in modern first world countrys
are those entirely dependant on welfare from govt and those
who are 'homeless' who dont receive any welfare, and they
wont get any effect like that, essentially because govt welfare
would go up and the 'homeless' arent affected by inflation.
> I suppose this would loosen up a certain amount of value,
That wouldnt help even if it did.
> but I can't see that it would fix the large structural
> problems caused by deindustrialization
There are no 'large structural problems caused by
deindustrialization',
we saw the total number employed at an all time historic high and
an unemployment rate of 4.x%, the envy of much of the world with
a massive legal and illegal immigration rate just before the clowns
completely imploded the entire world financial system, again.
> and years and years of inflated credit.
Thats what delivered the longest boom in recorded history.
> One might also want to recall the results
> of the inflation in Germany in the 1920s
That wont happen in the US if the US was stupid enough to do
what he proposes.
It happened there because they chose to pay the reparations
that the allies were stupid enough to apply with worthless money.
> -- there is no particular reason to believe that, if the
> savings and pensions of the working and middle classes
> are wiped out, they will take the blow passively.
They did the last time that happened in the US.
Essentially because they have no choice on that when it happens.
> There is also the problem of the huge debts owed to
> foreigners which must be refinanced from time to time.
Fools like him usually proposed they just be defaulted on.
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