8/28/2009
Inflation 101
The “classic” definition of inflation (IMHO): “too much money chasing to few goods” is frankly nonsense! Inflation is ALWAYS a result of a government repudiating its debt, as the currency is devalued the loans are paid back with much “cheaper” money… everyone is hurt by this situation, including the offending government. They (the government) may think they are pulling a "fast one" on their citizens, but as confidence fades and economic chaos reigns, the nation becomes much less stable and much more subject to tyranny (by design?). As proof , I quote the father of deficit spending, John Maynard Keynes:
“The best way to destroy the capitalist system is to debauch the currency. By a continuing process of large deficits leading to inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.”
Last count $9,000,000,000,000 (that's trillion!) and counting!
“The best way to destroy the capitalist system is to debauch the currency. By a continuing process of large deficits leading to inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.”
Last count $9,000,000,000,000 (that's trillion!) and counting!
