think of inflation as your friend

[audrey_girl]

truly, madly outrageous:

http://www.forbes.com/finance/invest...apbox_inl.html

[Starving Steve]

Re: think of inflation as your friend

Who speaks for the workers who worked their entire life away now only to see their savings and pensions de-valued away?

If Bernankee goes the de-valuation route, he will end-up with senior citizens in the streets. And he will see the unions organizing workers throughout America.

[ASH]

Re: think of inflation as your friend

truly, madly outrageous:

http://www.forbes.com/finance/invest...apbox_inl.html

Inflation is more my friend than a deflationary spiral, I think. I wouldn't necessarily say that about hyperinflation.

Actually, come to think about it, my rifle is my friend.

This is my rifle.
There are many like it, but this one is mine.
My rifle is my best friend.
It is my life.
I must master it as I master my life.
My rifle, without me, is useless.
Without my rifle, I am useless.

... etc. ...

[santafe2]

Re: think of inflation as your friend

truly, madly outrageous:

http://www.forbes.com/finance/invest...apbox_inl.html

Without getting into the rather draconian political / social issues implicit in this article,the author is ignoring the fact that we're no longer on the gold standard.

[brendan]

Re: think of inflation as your friend

Who speaks for the workers who worked their entire life away now only to see their savings and pensions de-valued away?

If Bernankee goes the de-valuation route, he will end-up with senior citizens in the streets. And he will see the unions organizing workers throughout America.

Conversely, young people with student loans and/or mortgages desperately need inflation. Young people voted for Obama, old people for McCain. Who will Obama support?

[Jim Nickerson]

Re: think of inflation as your friend

Conversely, young people with student loans and/or mortgages desperately need inflation. Young people voted for Obama, old people for McCain. Who will Obama support?

Probably those who gave him the largest chunks of money, and I expect that is not the young people.

[santafe2]

Re: think of inflation as your friend

Young people voted for Obama, old people for McCain. Who will Obama support?

More specifically, white males over 65 voted for McCain. That's a thin demographic.

[Jim Nickerson]

Re: think of inflation as your friend

More specifically, white males over 65 voted for McCain. That's a thin demographic.

Not all, I'm white last I looked, and over 65 and I voted for no one for any office, because when all is said and done the process is useless, except that it gives those who are naive enough to believe in the system that someone spouting lies to gain votes offers them and the country hope.

The system doesn't work, I suggest getting used to that fact.

[Nervous Drake]

Re: think of inflation as your friend

.

[The Outback Oracle]

Re: think of inflation as your friend

Inflation is, always and everywhere, quite simply theft!!! What is so damned difficult that even the most enlightened ituliper cannot get this through their head? Inflation is amoral!
What you think that inflation is some magic...that quite suddenly we have inflation and every damned thing is suddenly OK. Inflation is some dam,ned peace of magic that creates real wealth from nothing in an instant?

[grapejelly]

Re: think of inflation as your friend

inflation is stealing.

deflation is your friend because it increases your standard of living. Naturally life is mildly deflationary because efficiency and technology continue to make things better and cheaper. Over time, the compounding effect of deflation makes our lives much, much better.

[due_indigence]

Re: think of inflation as your friend

Inflation is theft until you fall into a deflationary spiral...and then you miss it. Inflation is the enemy until it becomes the SOLUTION.

From a recent Pritchard-Evans piece discussing the Swiss National Bank's 0.5% interest rate:

"David Bloom, currency chief at HSBC, said the shift in policy was breathtaking. "The Swiss National Bank are the hard men of central banking; they are even harder than European Central Bank. What they are saying is that inflation is no longer a problem, it's the solution. They want stimulus any way they can get it."

http://www.telegraph.co.uk/finance/n...deflation.html

[The Outback Oracle]

Re: think of inflation as your friend

Geez Due...you really think inflation suddenly creates wealth for everyone...yeah...with inflation every sob with debt benefits...but he benefits from stealing from those who don't have debts and who provide the money that is the material for re-generation.
INFLATION is theft. Simple.

Why do you think inflation can suddenly create real wealth?

[Southernguy]

Re: think of inflation as your friend

In the actual circumstances inflation just transfers wealth from creditors to debtors.
One way or the other, inflation is on the way. I donīt think there is any possible alternative, moreover, I donīt think it can be avoided.
The great point is; what about salaries? Because salaries (and pensions) are the other loser in the inflation equation.
Salaries should be at least partially protected from the incoming inflation.
That should minimize a fall in consumtion that could follow.
Anyway, probably inflation is the only way out the debt mess. It authomatically diminshes all non indexed debts (which are the big majority) and so creates an inmediate improvement on all outstanding credit quality.
But of course, there winners and losers...

[The Outback Oracle]

Re: think of inflation as your friend

The other losers are our children. Inflation is NOT a magic bullet. It creates NO wealth to pay off any damned debt. it just books the losses to someone else...including our children. They will have interest rates that will be just plainly soul and society destroying. We are postponing the pain so we don't have to bear it but our children will in some magnified form. Why the hell does everyone think inflation is some magic that is going to solve all our damned problems?
I don't get it.